Setting Financial Goal Do Now

Explain the difference between "needs" and "wants" in financial planning.

• "Needs" are non-essentials like music CDs, while "wants" are essentials like food, shelter, and clothing.

• There is no difference between "needs" and "wants."

• "Needs" are essentials like food, shelter, and clothing, while "wants" are non-essentials such as movies and eating out.

• "Needs" are things you want, while "wants" are things your parents think you should save up for.

What does the acronym "SMART" stand for in setting financial goals?

• Specific, Measurable, Attainable, Relevant, Time-bound

• Simple, Maintainable, Attainable, Responsible, and Timely

• Smart, Manageable, Attractive, Relevant, and Time-bound

• Single, Money, Approach, Restraint, Thorough

A blueprint for handling all aspects of your money, such as spending, saving, investing, and establishing credit, is called _____________.

• a budget

• personal financial planning

• an allowance

• a credit card

What is the definition of the word "goal"?

• To postpone satisfaction until a later time

• To desire greatly; wish for

• Specific, measurable, attainable, relevant, and time-bound goals

• An aim or purpose; an end to which effort is directed

What is the definition of the word "values"?

• To postpone satisfaction until a later time

• To desire greatly; wish for

• Specific, measurable, attainable, relevant, and time-bound goals

• A principle, standard, or quality considered worthwhile or desirable

What is the definition of the word "wants"?

• To postpone satisfaction until a later time

• To desire greatly; wish for

• Specific, measurable, attainable, relevant, and time-bound goals

• A principle, standard, or quality considered worthwhile or desirable

What is the definition of the word "needs"?

• A condition requiring supply or relief; to be in need or want

• To desire greatly; wish for

• Specific, measurable, attainable, relevant, and time-bound goals

• An aim or purpose; an end to which effort is directed

What is the primary purpose of setting financial goals?

• To increase spending on luxury items

• To provide direction and motivation for financial decisions

• To ensure immediate gratification

• To avoid any form of budgeting

Which of the following is considered a "want" rather than a "need"?

• Groceries

• Rent

• Dining out at a restaurant

• Utility bills

What is the first step in creating a personal financial plan?

• Investing in stocks

• Setting clear financial goals

• Buying a new car

• Ignoring current expenses