Financial Decisions and Goals, Sec 1 Econ

What is personal financial planning?

• the things one wants to accomplish

• arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals

What are goals?

• arranging to spend, save, and invest money to live comfortably, have financial security, and achieve goals.

• the things one wants to accomplish

Which answer is a benefit of planning?

• Poor personal relationships

• inability to manage financial resources

• Debt avoidance and reduced dependence on others

Which choice is a good way to estimate your expenses?

• keep a careful record of everything you buy for one month

• record everything you buy for one week

• memorize everything you buy for one month

Check the four areas that help you develop your financial goals.

• Think about your financial goals.

• Do your personal values affect your financial decisions?

• Change the current situation.

• What are your needs?

• What are your wants?

Check two needs that you require to survive.

• food

• Expensive car

• Northface Coat

• shelter

Name two things that are considered a "want".

Step 3: Identify Alternative Courses of Action:

If you want to pay off your debts, what "Course of Action" are you taking?

• Continue the same course of action.

• Expand the current situation.

• Change the current situation.

• Take a new course of action.

Step 3 Identify Alternative Courses of Action:

If you want to increase the amount of money you are saving every month, what "Course of Action" are you taking?

• Continue the same course of action.

• Expand the current situation.

• Change the current situation.

Which one of these is NOT a source of financial information?

• the internet

• banks

• school

• media sources like newspapers, magazines, etc...