Personal Finance 3.04

As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training.  Which question is the LEAST IMPORTANT one to consider at this point?

• What kind of training and education do I need and how much will it cost?
• Is there a career pathway available if I continue my education and training?
• Can I get the education I need near where I currently live?
• Will a job be available and will I earn enough in my career to pay for the education and training it requires?

Mallory has set a career goal of becoming a veterinarian but does not have the money to complete this goal without taking out very large student loans.  She decides to attend a 2-year program to become a veterinary technician, and then work for 3 years in that field while saving money for her remaining 2-years of college and veterinary school.  Mallory's plan is known as a/an:

• Career Pathway
• Opportunity Cost
• Debt-to-income ratio
• SMART goal

The ________________ of continuing your education is the money you would have earned if you had worked instead.

• Debt-to-income ratio
• Opportunity cost
• Benefit
• Total estimated cost

It is recommended that your educational loan payments require no more than 10-15% of your estimated starting income.  To calculate this amount, students need to calculate the ____________ of their education and training.

• Opportunity cost
• Career pathway
• Benefit
• Debt-to-income ratio

What is the debt-to-income equation?

• Assets-Liabilities=debt-to-income ratio
• Net worth - net loss = debt- to- income ratio
• Monthly loan payment divided by Monthly wages=debt-to-income ratio
• Gross income divided by gross pay = debt-to-income ratio

A standard tool that calculates whether a borrower will have  difficulty meeting his or her loan repayment obligation is called:

• debt-to-income ratio
• Credit
• Borrower
• Backward planning

The demand for a particular job when you are qualified and ready to  enter the field is:

• Job ready
• Job outlook
• Job seeking
• Job planning

_____________ is a strategy in which you  visualize your goal as achieved and work  backwards to where you are now to determine the steps you  would have to have taken to achieve your goal. 

• Career Outlook
• Backward planning
• Deb-to-income ratio
• SMART Goal