PRINCIPLES OF FINANCIAL PLANNING

Which of these outcomes become more likely for someone with strong personal finance skills? Check all that apply.

• A person can avoid opportunity cost.

• A person can be more prepared to meet basic needs.

• A person can avoid financial decision-making

• A person can spend money thoughtfully to accumulate assets.

• A person can spend wisely to avoid financial problems.

Paying rent is a......

• return

• need

• want

• risk

buying a new video game is a.....

• return

• need

• want

• risk

If you buy a new video game, you cannot pay your cell phone bill. This is an example of.......

• setting a short-term goal

• setting a long-term goal

• realizing opportunity cost

If Mason wants to consider his short-term and long-term goals, which questions should he ask? Check all that apply.

• Will other kids think my new bike is cool?

• Do I want the bike this month, or should I wait and buy it during the summer?

• Will buying the bike keep me from reaching another goal, like buying a car?

• Do I really need the bike, or can I get by with my old one for a while longer?

• How many of my friends have new bikes?

Match definition to correct term:

Money earned

• income

• opportunity cost

• risk

• personal finance

• budget

Match definition to correct term:

the cost of using one resource over the other

• income

• opportunity cost

• risk

• personal finance

• budget

Match definition to correct term:

the chance or possibility of loss

• income

• opportunity cost

• risk

• personal finance

• budget

Match definition to correct term:

an individual's assets and mangement of them

• income

• opportunity cost

• risk

• personal finance

• budget

Match definition to correct term:

a plan that balances available resources and expenses

• income

• opportunity cost

• risk

• personal finance

• budget