GFL Strand 2, Standard 1, DOK 1

Which of the following is a primary benefit of personal financial planning?

• It guarantees financial success regardless of income.

• It eliminates the need for budgeting.

• It helps reduce stress and anxiety about money.

• It ensures that all investments are profitable.

Which of the following is NOT a key principle of financial management?

• Differentiating between needs and wants

• Paying yourself first by saving a portion of income

• Spending all earnings before saving or investing

• Understanding how taxes impact take-home pay

What does "pay yourself first" mean in financial planning?

• Spending money on personal enjoyment before paying bills

• Allocating a portion of income to savings before other expenses

• Paying off credit cards before other debts

• Ensuring all purchases are made with cash only

How does financial stress impact decision-making?

• It often leads to impulsive and short-term financial choices.

• It improves the ability to plan long-term investments.

• It increases the likelihood of saving money.

• It ensures that all purchases are rational and well-researched.

What is a common emotional influence on financial decision-making?

• Logical analysis of investment returns

• Fear leading to overly cautious financial choices

• Relying only on professional financial advice

• Ignoring emotions entirely when making financial choices

Which of the following best describes a financial habit that promotes stability?

• Relying on credit cards for daily purchases

• Making unplanned purchases frequently

• Sticking to a monthly budget and tracking expenses

• Spending money as soon as it is earned

How do cultural values influence financial decision-making?

• They have no impact on financial habits.

• They shape attitudes toward saving, spending, and wealth-building.

• They prevent people from making rational financial choices.

• They force individuals to follow strict financial rules.

Why is impulse control important in financial management?

• It helps avoid unnecessary and unplanned spending.

• It ensures that all purchases provide immediate happiness.

• It allows for more frequent shopping trips.

• It guarantees higher credit card limits.

Which of the following is a financial principle that helps build wealth over time?

• Spending first and saving whatever is left

• Investing based on emotions and short-term trends

• Avoiding debt, saving regularly, and making informed investments

• Waiting until retirement to begin saving

What is a possible disadvantage of charitable giving?

• It reduces a person’s taxable income.

• It can sometimes distract from personal financial goals.

• It provides assistance to those in need.

• It builds goodwill with customers and the community.