Ch. 2 - Ch. 3

What is the first step in setting a financial goal?

• Spend as much as you can

• Identify a specific and measurable goal

• Start investing in stocks

• Save without any target in mind

Financial goals should always be long-term goals.

• False

• True

Which of the following is an example of a short-term financial goal?

• Saving for retirement

• Buying a new phone within six months

• Paying off a 30-year mortgage

• Saving for your college education

Setting financial goals helps provide a clear roadmap for how to manage your money.

• True

• False

Why is it important to break large financial goals into smaller, actionable steps?

How often should you review and adjust your financial goals?

• Every year

• Once a decade

• Never, once goals are set

• Regularly, as circumstances change

What is the main purpose of a budget?

• To spend all your money

• To track your income and expenses

• To save for fun activities

• To borrow more money

A successful budget includes both fixed and variable expenses.

• True

• False

Which of the following is considered a fixed expense in a budget?

• Rent or mortgage

• Groceries

• Entertainment

• Clothing

Why is it important to have both fixed and variable expenses in a budget?