Financial Planning Formative Assessment

1. 1. It is the process of setting and achieving financial goals through proper money management.

• A. Income
  

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  B. Budgeting
  

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  C. Financial Planning
  

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  D. Debt

2. 2. The process of creating a plan on how to use your money — including how much to spend, save, and set aside.

• A. Budgeting
  

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  B. Borrowing
  

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  C. Investing
  

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  D. Earning

3. 3. A lack of knowledge in managing personal finances, which often leads to poor decisions such as overspending or unnecessary debt.

• A. Income deficiency
  

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  B. Financial Planning
  

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  C. Lack of Financial Literacy
  

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  D. Mismanagement

4. 4. This refers to a situation where a family cannot consistently afford basic needs such as food, shelter, or healthcare.

• A. Financial Literacy
  

• B. Family Financial Instability

• C. Economic Growth
  

• D. Emergency Fund

5. 5. These are specific and clear targets for how you want to use your money in the future.

• A. Budget

• B. Expenses
  

• C. Financial Goals
  

• D. Income

6. What is the main purpose of financial planning?

• A. To spend money on things you want
  

• B. To track other people’s expenses
  

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  C. To create a strategy to achieve financial goals
  

• D. To avoid paying taxes

7. 7. Which of the following is an example of a financial goal?

• 7. A. Watching a movie
     

• 7. 
     B. Buying snacks every day
     

• 7. 
     C. Saving ₱5,000 for a new phone
     

• 7. D. Borrowing money from a friend

8. 8. What does budgeting help you do?

• A. Spend more money on wants
  

• B. Avoid tracking your income
  

• C. Plan how to use your money wisely

• D. Increase your monthly salary

9. 9. A student works a part-time job to support their family but is too tired to study. What financial challenge does this represent?

• A. Lack of budgeting skills
  

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  B. Part-time employment stress
  

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  C. High expenses from shopping
  

• D. Poor investment decisions

10. 10. Why is it important to have financial literacy skills?

• A. To become a celebrity
  

• B. To impress your classmates
  

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  C. To make better money decisions and avoid debt
  

• D. To get more likes on social media