Financial Planning Review Game

Which of the following is the BEST example of a financial plan?

• Amy puts her extra change in a jar to buy something special later.
• Liz gets a part-time job at a fast food restaurant.
• Rick moves money from under his mattress at home to a savings account.
• Leo decides to save money in the bank to buy a $25,000 car and eventually a $200,000 home.  He also creates a detailed budget to help.

How does insurance help people to manage their financial risks?

• Insurance prevents bad things from happening to you.
• Insurance on something pays out money to help you replace or fix something that you lost or had damaged
• Insurance companies give full refunds to anyone that experiences a loss on something that is insured.  
• Insurance companies call and alert their customers before the person is about to do something foolish with their money.  

Which of the following explains a way to establish and manage your credit?

• Always paying bills on time.
• Having a low amount of liabilities
• Never switching jobs
• Going to college

How is liquidity different from net worth?

• Liquidity refers to your total assets whereas net worth refers to your liabilities
• Liquidity refers to how much credit and cash you have on hand to cover expenses that might come up whereas net worth is your total assets minus your liabilities.
• Liquidity refers to how much water you could afford in the area where you live.
• Liquidity refers to how many credit cards you have.

Which of the following would carreer choice most impact on for a person?

• Their income
• Their equity 
• Their credit score
• Their liabilities 

Money coming in from wages or other sources is considered...

• Interest
• Budget Money
• Income
• Liabilities 

You get a $1,000 bill from your doctor.  This is a good example of a...

• Liability
• Assett 
• Budgeting 
• Increasing your equity 

Which of the following would increase the equity you have in your car?

• Stop paying the car loan payments
• Getting better tires on the car with the money you save by not making a car loan payment that month.
• Selling your car
• Making all the loan payments on time or early.

Which of the following best describes budgeting?

• Estimating future expenses and income to help you plan how you will spend your money.
• Only buying one scoop of ice cream instead of a whole sundae while out with friends.
• Looking for a job that pays more
• Selling your extra car

Which of the following is NOT an asset?

• A car that you own
• Money you have in the bank
• Your student loan for college
• Clothing you own