Personal Financial Planning Review

Select all the following which are categories of the family life cycle.

• Couple, retired

• Older, single

• Single, retired

• Younger, retired

Short-term goals cover a time period of one to two years.

• True

• False

Which of the following provides a framework to examine important issues for various family units?

• Personalization

• Indoctrination

• Categorization

• Individualization

Budgeting finances requires calculating __________.

• Income and Expenses

• Investments and Savings

• Utility and Opportunity Cost

• Inflation and Taxes

Which of the following tools can help individuals reorganize their finances to reduce debt or increase savings?

• Professional portfolios

• Family life cycle

• Credit cards

• Budgets

__________ explains how a person changes financial position, earnings, consumption and savings throughout the life cycle.

• Family Life Cycle

• Financial Evolution

• Portfolio growth

• Family life cycle

If expenses exceed income, which of the following should an individual do to cut down on their spending?

• Not eat out as much

• Obtain another job

• Receive a consumer loan

• Invest in stacked certificates of deposit

Budgets assist in reorganizing finances to reduce __________ or increase __________.

• Debt; savings
• Problems; happiness

• Funds; expenses

• Consistency; originality

What is the first step to opening a banking account?

• Choose a financial institution

• Research banking products

• Pick the desired type of checking account

• Visit the bank’s website

If income exceeds expenses, which of the following is recommended?

• Increase income sources

• Go on vacation

• Decrease income sources

• Research investment and savings options