PF Chapter 2 - Financial Plan

A personal financial plan includes which element(s)?

• Financial Goals

• Insurance Plan

• Cash flow Plan

• All of these

• none of these

An emergency fund consists of how much money?

• 1 year of expenses

• 1 month of expenses

• 12 to 25 months of expenses

• 3 to 6 months of expenses

This professional helps you plan and manage your financial future.

• financial aid officer

• financial planner

• bank teller

• support specialist

A business financial plan typically outlines a variety of financial statements for this period of time.

• 1 to 2 years

• 1 to 3 months

• 3 to 5 years

• none of the above

What is a personal financial plan?

• an estimate of income and expenses

• what we choose to do with our money now and in the future

• a way to transfer the risk of loss

• the amount of money put aside for future use

What is fiduciary responsibility?

• assets minus liabilities

• an asset that is easily converted to cash

• planning on what to do with assets upon someone's death

• put the needs of clients first and act ethically

What is a financial planner?

• a book you write down all income and expenses in

• professional the helps plan and manage finances

• using money to increase your wealth

• the money put aside for future use

What is a budget?

• detailed estimate of income and expenses

• snapshot of the money coming in and going out

• money set aside for unexpected events

• money from earnings

What is personal responsibility?

• a way to transfer the risk of loss

• when you stop working

• holding yourself accountable for your decisions

• a plan of how you will save, spend, and invest your money

What role does ethics play in financial planning?

• planners have a fiduciary responsibility to put their client's needs first

• it helps you list assets and liabilities

• it holds yourself accountable for decisions you make

• morals have nothing to do with financial planning