Quantitative vs Qualitative Data (2)

Numerical information that can be measured and quantified

• Quantitative Data

• Qualitative Data

Provides a clear picture of an individual's or a household's financial situation

• Quantitative Data

• Qualitative Data

Non-numerical information that captures personal values, preferences, and lifestyle choices

• Quantitative Data

• Qualitative Data

To understand the client's financial behaviour, goals, and attitudes, which are essential for tailoring the financial plan to their unique needs

• Quantitative Data

• Qualitative Data

ONE (1) example of Quantitative Data

ONE (1) example of Qualitative Data

How is income data used in financial planning?

• To determine the number of dependents

• To create a budget and saving strategies

• To assess risk tolerance

Why are expenses tracked in financial planning?

• To determine income

• To create a realistic budget and identify savings opportunities

• To assess investment risk

What is the primary use of knowing a client's assets?

• To understand financial goals

• To evaluate financial health and plan investments

• To determine lifestyle preferences

How do liabilities impact financial planning?

• They help in calculating net worth and creating debt repayment strategies

• They determine risk tolerance

• They indicate income levels