Chapter 16 Money Management and Financial Planning

Financial planning generally reduces an individual’s financial uncertainties.

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A cash flow statement examines changes in the value of your personal assets.

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A cash flow statement can help you develop and determine budget categories

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All people have basically the same financial planning goals regardless of which stage of life they are in.

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The process of good money management should start with knowing your current financial status.

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An amount of money an insurance company pays to a person who has previously deposited money with the company is called a pension.

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A balance sheet reports assets, liabilities, and net worth on a given date.

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A W-2 is a summary of a worker’s earnings for the previous year and includes the amount deducted for taxes.

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Tax laws and tax forms seldom change.

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A tax credit is the amount on which taxes are calculated.

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• False