Financial Planning

When creating financial goals, you should assess your Financial Resources, Expenses, Debt and Projections.

—Financial Resources come to us in two different ways, what are they? (Choose two)

• Expenses

• Income

• Taxes

• Assets

—Expenses can be categorized into two categories. What are they? (choose two)

• Capital

• Money

• Expected

• Unexpected

—When you incur debt, you will need to pay the lender back the amount of money you borrowed plus what?

• A thank you card

• Principal

• Debtor

• Interest

—When creating long term financial goals, you should look into the future and make some projections. Which of the answers below do not apply when making projections?

• Inflation

• College

• Having a family

• Your strengths and weaknesses

• Retirement

Which planning tool is used to allocate resources over a specific period?

• Budgets
• Schedules

• Standards

• Policies

Which of the following is an example of a variable expense?

• Mortgage payment

• Rent payment

• Utility bills

• Life insurance premiums

What is a primary characteristic of a short-term financial goal?

• It typically requires more than five years to achieve.

• It is usually measurable and achievable within one year.

• t often involves large investments in real estate.

• It is exclusively related to retirement planning.

If a student is planning to live away from home, which of the following is likely to be their largest monthly expected expense?

• Transportation

• Groceries

• Rent

• Entertainment

Which of the following is the primary purpose of maintaining a financial reserve?

• To pay for discretionary spending

• To ensure financial stability during emergencies

• To fund retirement savings

• To invest

If your monthly expenses are $2000, how much should your emergency fund ideally be if you follow the recommendation of having 3-6 months’ worth?

• $4000

• $2000

• $6000

• $3000