Budgeting Unit Review

What is the definition of financial goals?

• Specific monetary objectives set to be achieved within a defined time frame.

• General plans for spending money without a time limit.

• Random ideas about saving money.

• Unplanned expenses that occur suddenly.

Which of the following is NOT listed as an importance of financial goals?

• Provide you with direction and purpose.

• Allow for measurement of progress.

• Increase your monthly expenses.

• Reduce financial stress by providing a sense of control.

How do financial goals help with decision-making?

• By prioritizing spending and saving.

• By encouraging random purchases.

• By ignoring your budget.

• By increasing financial stress.

A student wants to feel more motivated about saving money. According to the material, how can setting financial goals help?

• By clarifying what they are working towards.

• By making saving money more confusing.

• By reducing their sense of control.

• By encouraging them to spend more.

Why is it important to measure progress towards financial goals?

• It allows you to see how close you are to achieving your objectives.

• It makes you spend more money.

• It increases financial stress.

• It reduces your motivation.

Which of the following best describes the "Specific" aspect of the S.M.A.R.T Goals Framework?

• Goals should be clear and specific.

• Goals should be easy to achieve.

• Goals should be measured by time.

• Goals should be related to money.

What does the "Measurable" component of a S.M.A.R.T goal require?

• Setting a deadline for the goal.

• Including criteria to measure progress.

• Making the goal easy to achieve.

• Ensuring the goal is important.

Which example best illustrates an "Achievable" goal according to the S.M.A.R.T framework?

• Saving $1,000 by the end of the year.

• Reducing dining-out expenses to allocate money for savings.

• Wanting to buy a new laptop.

• Saving 85% per month.

Why is it important for a goal to be "Relevant" in the S.M.A.R.T Goals Framework?

• So it can be measured easily.

• So it is realistic and attainable.

• So it is important and has a significant impact.

• So it can be completed quickly.

A student wants to save $1,000 for a new laptop by the end of the year. Which part of the S.M.A.R.T framework does "by the end of the year" represent?

• Specific

• Measurable

• Achievable

• Time-bound