Introduction to Financial Planning and Goal Setting

Which statement best defines financial literacy according to the lesson?

• Knowing how to earn, save, spend, and invest wisely to reach goals

• Making as much money as possible regardless of risk

• Tracking only your savings account balance

• Avoiding all forms of credit at any time

Why does financial literacy matter?

• It guarantees you will become wealthy

• It helps you avoid debt, save for goals, plan for emergencies, and feel confident

• It allows you to spend without a budget

• It replaces the need for a job

What is a financial plan described as in the material?

• A list of things you want to buy this month

• Your game plan showing where you are, what you need, and how to reach your goals

• A credit score report

• A tax return form

Which statement reflects the idea: "A goal without a plan is just a wish"?

• Goals can be achieved by thinking positively

• Planning turns goals into actionable steps

• Wishing is more important than budgeting

• Plans are unnecessary for small goals

Evelyn wants to grow her emergency fund. Which of the following is also listed as one of her other goals?

• Buy luxury jewelry

• Pay off credit card

• Quit her job

• Start a business immediately

According to the lesson, one common reason people have money problems is:

• Too much planning

• Excessive investing

• Weak money management

• High credit score

What is the first step recommended before you can save?

• Invest in stocks

• Track your spending by listing everything you spend money on in a day

• Apply for a new credit card

• Ask a friend for advice

Which time frame correctly matches the type of goal?

• Short-term: over 5 years

• Intermediate: under 2 years

• Long-term: over 5 years

• Short-term: 2–5 years

Which is an example of a short-term goal from the material?

• Buy a home

• Build a $500 emergency fund

• Save $4,000 to invest

• Move into your own place

Which is listed as an intermediate goal?

• Pay for college next week

• Build wealth

• Buy a car

• Retire next year