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PRINCIPLES OF FINANCIAL PLANNING

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which of these outcomes become more likely for someone with strong personal finance skills? Check all that apply.

a)

A person can avoid opportunity cost.

b)

A person can be more prepared to meet basic needs.

c)

A person can avoid financial decision-making

d)

A person can spend money thoughtfully to accumulate assets.

e)

A person can spend wisely to avoid financial problems.

2.

Paying rent is a......

a)

return

b)

need

c)

want

d)

risk

3.

buying a new video game is a.....

a)

return

b)

need

c)

want

d)

risk

4.

If you buy a new video game, you cannot pay your cell phone bill. This is an example of.......

a)

setting a short-term goal

b)

setting a long-term goal

c)

realizing opportunity cost

5.

If Mason wants to consider his short-term and long-term goals, which questions should he ask? Check all that apply.

a)

Will other kids think my new bike is cool?

b)

Do I want the bike this month, or should I wait and buy it during the summer?

c)

Will buying the bike keep me from reaching another goal, like buying a car?

d)

Do I really need the bike, or can I get by with my old one for a while longer?

e)

How many of my friends have new bikes?

6.

Match definition to correct term:


Money earned

a)

income

b)

opportunity cost

c)

risk

d)

personal finance

e)

budget

7.

Match definition to correct term:


the cost of using one resource over the other

a)

income

b)

opportunity cost

c)

risk

d)

personal finance

e)

budget

8.

Match definition to correct term:


the chance or possibility of loss

a)

income

b)

opportunity cost

c)

risk

d)

personal finance

e)

budget

9.

Match definition to correct term:


an individual's assets and mangement of them

a)

income

b)

opportunity cost

c)

risk

d)

personal finance

e)

budget

10.

Match definition to correct term:


a plan that balances available resources and expenses

a)

income

b)

opportunity cost

c)

risk

d)

personal finance

e)

budget