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Financial Planning

Total questions: 11

Worksheet time: 33mins

Name
Class
Date
1.

Which budgeting method involves the use of placing money in separate packets to meet particular expenses?

The ___________ method involves placing money in separate packets to meet particular expenses.

a)

envious

b)

environment

c)

envelope

d)

enviable

2.

Ideally, what should more than one member of the family contribute to for a better financial position?


A family can have more than one person contributing to the household __________ for a better financial position.

a)

items

b)

name

c)

expenses

d)

income

3.

Chelsea purchased her monthly grocery requirements instead of soccer game tickets for the championship match she wanted to see. What has Chelsea chosen to satisfy over her wants?

a)

needs

b)

appetites

c)

hungers

d)

impulses

4.

Which of the following are needs?


Choose all that apply.

a)

Lamborghini car

b)

staple foods

c)

vacation

d)

lavish wedding

e)

tuition and fees

5.

Which of the following are wants?


Choose all that apply.

a)

Lamborghini car

b)

staple foods

c)

vacation

d)

lavish wedding

e)

tuition and fees

6.

Which part or parts of this paragraph indicate that Robert is preparing a budget to plan his finances?


Robert is a 25-year-old man who is very social by nature. He works for a financial services company. Every month, he puts $500 in an envelope to use as spending money. He ensures that he spends only when he has enough money. He usually avoids outings with friends, but every once in a while, he will spend lavishly up to a certain amount. He plans to retire by the age of 40. He has no plans for marriage anytime soon, and he loves his current job and lifestyle.


Select all that apply.

a)

Robert is a 25-year-old man who is very social by nature. He works for a financial services company.

b)

Every month, he puts $500 in an envelope to use as spending money.

c)

He ensures that he spends only when he has enough money.

d)

He usually avoids outings with friends, but every once in a while, he will spend lavishly up to a certain amount.

e)

He plans to retire by the age of 40. He has no plans for marriage anytime soon, and he loves his current job and lifestyle.

7.

Christie makes changes to her budget at the end of every month. What is her reason for doing this in terms of smart financial planning?

a)

She is not satisfied with the monthly budget outcome.

b)

Her needs keep changing, so she changes her monthly budget.

c)

She is reviewing her goals and aligning the budget to work toward them.

d)

She keeps changing her mind about her goals.

8.

John and Jean are married and decide to open three separate accounts for their money. What is the most likely reason for their decision?

a)

The bank does not allow more than one person to open an account.

b)

They want someone else to handle their finances.

c)

They have too much money and can’t keep it in a single account.

d)

John and Jean are part of a dual-income family.

9.

Which factor supports maintaining a dual income?

a)

opening a joint bank account

b)

opportunity cost

c)

rising education costs

d)

nuclear family planning

10.

Lucy wants to attach a goal cost to each of her life goals. Why might she do this?

a)

She wants to maintain a log of income and expenses.

b)

She wants to identify how expensive her goals are so she can replace high-cost ones with more reasonable options.

c)

She wants to identify the amount of money, time, and effort required to realize her goals.

d)

She wants to identify the opportunity cost she is facing.

11.

What is the last step in planning your budget?

a)

determining your take-home income

b)

ensuring your goals have flexible characteristics

c)

understanding your wants

d)

review and revisions