PF 1.0 Test Review

Carter wants to participate in an activity that will improve his well-being. Which activity would contribute the most to his well-being?

• An activity his friends like to participate in

• An activity that does not cost much money

• An activity that his teacher suggested to him

• An activity that makes him lose track of time

Which of the following factors is not influenced by values?

• Everything is influenced by values.

• An individual’s daily decisions

• An individual’s long-term decisions

• An individual’s financial decisions

Megan’s mother suggested that she was experiencing the consequences of her trade-off regarding a decision she made to purchase a dress for prom. Which situation does Megan most likely find herself in for her mother to have made this comment?

• Megan had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she had saved for the prom dress plus most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job.

• Megan had shopped at several stores when she found the prom dress of her dreams. She checked online and found a coupon that enabled her to save 30% when she returned to the store to purchase the dress.

• Megan had shopped in several stores and found six prom dresses she liked a lot. She brought 2 friends shopping with her to tell her which one looked best on her. After much deliberation, she chose the dress that was the least expensive of the 3 she liked best.

• Megan had shopped in the store her mother recommended for her prom dress. She found two dresses she liked a lot. Megan purchased the one that was the most comfortable even though it cost $28 more than the other one.

One element of a financial goal is missing in this example. “I will save $150 each month to go on a vacation in one year.” Which one is it?

• Time Bound

• Specific

• Attainable

• Measurable

Which of the following is likely to have the least influence on an individual’s values?

• Media

• Family

• Religious affiliations

• Grade average

Whitney is shopping with her mom and they are deciding on clothing to purchase. Which scenario best represents the purchase of a need?

• Whitney is being inducted into the National Honor Society at her high school. Students have been directed to ‘dress nicely’. Whitney has a dress she wore to a wedding last year that still fits but her mom thinks she needs a new one to celebrate this occasion.

• Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress ‘professionally’ for one of the tours. She plans to wear her new jeans and a T-shirt that has the logo of the leadership conference on it. Her mother thinks she needs to purchase something more appropriate.

• Whitney has several pairs of jeans in her closet but found some that really fit her well at an excellent price when she and her mom were shopping. Her mom agrees that with these jeans at this price, they need to purchase a pair.

• Whitney will be traveling to Europe with a youth ambassador program this summer. She has been instructed to pack a rain jacket. The rain jacket she already owns does not have a hood since she always uses an umbrella in rainy situations. Her mom believes she needs to purchase a hooded rain jacket because it would be more convenient.

Jacob is wondering how he can improve his intellectual well-being. Which would contribute the most to his intellectual well-being?

• Going to the gym three times per week

• Challenging himself by taking on a new project at work

• Joining a local service organization

• Taking a vacation from work

Which statement about our interactions with money is not considered to be true?

• Your present self impacts your future self.

• You are better off in a community than by yourself.

• Investment increases risk and reduces your ability to cope with risk and uncertainty.

Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set?

• When his financial goals have been established

• When his money management plan has established high well-being

• When he is 70 years old

• Never – it is an ongoing process

Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal?

• Short‐term goal

• Long‐term goal

• Mid‐term goal

• This is not an example of a goal.