Financial Planning Basics

What is the purpose of financial planning?

• To confuse individuals and organizations

• To prevent financial growth

• To help individuals and organizations achieve their financial goals.

• To waste time and resources

List three key components of a financial plan.

• Budget, Loans, Retirement

• Income, Expenses, Investments

• Assets, Liabilities, Credit Cards

• Savings, sugar, Taxes

Explain the difference between dreams and goals.

• Goals are achievable within a realistic plan, while dreams are more often not always accomplished.

• Goals are a word we hear often at soccer games

• Dreams are what i just had last night

• Goals and dreams are the same

Why is it important to create a budget as part of financial planning?

• To track income, expenses, and savings for better financial management.

• To ignore financial responsibilities

• To spend money without limits

• To make financial decisions impulsively

How can tracking expenses help in financial planning?

• By increasing debt and overspending

• By complicating financial records and causing confusion

• By providing insights into spending habits and enabling better budgeting decisions.

• By limiting flexibility and hindering financial growth