What is a financial plan?

What are "priorities" ?

• The process of setting goals for spending, earning, and saving

• One thing is regarded as more important than another

• Money set aside for emergencies

• Transferring risk after paying a premium

What is the purpose of an "Emergency/Opportunity Fund"?

• To pay yourself first before any other expenses

• To transfer risk after paying a premium

• Money set aside to be used in an emergency such as job loss or illness

• Money given to a charitable organization

What does "Pay Yourself First" mean?

• Save a portion of your paycheck for personal use only

• Save a portion of your paycheck before any other expenses

• Transfer risk to an insurance company

• Donate money to charity

What is the role of insurance?

• To prioritize expenses

• To provide funds for emergencies

• To transfer risk after paying a premium

• To donate money to charity

What is "Charitable giving"?

• Saving money for personal priorities

• Transferring risk to another party

• Money given to a charitable organization to benefit society, not an individual

• Setting aside money for emergencies

What is a budget?

• A financial plan used to forecast & track income & expenses

• A detailed report of past financial transactions

• A legal document for tax purposes

• A personal diary of daily spending

What are fixed expenses?

• Regular, predictable costs that remain constant each month.
• One-time expenses that occur sporadically
• Variable expenses that change every month
• Expenses that are paid in installments

What are variable expenses?

• only related to personal expenses, not business expenses.

• fixed costs that do not change.

• costs that can change .

• expenses that remain constant.

What are periodic expenses?

• costs that occur regularly but not necessarily every month.

• costs that occur daily.

• costs that occur randomly.

• costs that occur only once in a lifetime.

What is a Credit Rating?

• A document required for employment.

• A number that rates a consumer's creditworthiness.

• A federal tax identification number.

• A score indicating one's ability to play credit card games.