Financial Planning

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Craig decides it's time to expand his newspaper by adding on new staff members."

• Determining Your Financial Situation

• Developing Your Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use a Plan of Action

STATE which of the 6 steps to financial goal planning is represented in this scenario: "Susan begins compiling a detailed summary of her finances."

• Determining Your Financial Situation

• Developing Your Goals

• Identifying Your Options

• Evaluate Alternatives

• Create and Use a Plan of Action

money earned from sources other than a traditional job, requiring little time or effort.

• Passive income

• Investment returns

• Freelance work

• Active income

What is the purpose of a budget?

• to help people improve their education and skills

• to help people determine how to train for their jobs

• to help people live healthier lives and exercise more

• to help people plan their spending and saving decisions

The process of projecting, organizing, monitoring, and controlling future income and expenses is known as ..........

• Government

• Geography

• Judicial Branch

• Personal Finance

Why is creating a budget so important? (Select all that apply)

• It can help you reach your savings goals for what you want or need.

• It can help you make better financial decisions.

• It can help you see your spending habits so you can adjust them to what you want or need.

• It can help you keep track of your neighbor's financial habits.

• It can help you get a better job.

It refers to the process of formulation of goals, policies, procedures, programs and budget that refer to organization’s financial activities.

• Financial Accountability

• Financial Transparency

• Financial Planning

• Financial Controls

Which of the following is a key component of financial planning?

• A) Setting financial goals

• B) Ignoring expenses

• C) Spending without a plan

• D) Avoiding savings

What is the first step in creating a financial plan?

• A) Evaluating investment options

• B) Determining your current financial situation

• C) Setting up a savings account

• D) Consulting a financial advisor

Which of the following best describes a budget?

• A) A plan for spending and saving money

• B) A list of debts

• C) A record of past expenses

• D) A financial wish list