WorksheetsChapter 3 - What's Your Next Move?
Total questions: 20
Worksheet time: 20mins
Using the 5-step decision-making process will help you implement your financial plan.
TRUE
FALSE
Education planning is preparing for a life after work, not just financially, but where to live and what to do with your time.
TRUE
FALSE
When implementing a financial plan, you do not need to set goals or write down your plan.
TRUE
FALSE
Financial plans can be used as a benchmark or standard to measure the progress a person is making and can be updated as goals and time frames change.
TRUE
FALSE
Understanding the opportunity cost of decisions will help you make the best choices to achieve your goals.
TRUE
FALSE
A solid financial plan helps to:
Make sure you are saving enough
Prevent careless and wasteful spending
Evaluate how wisely you are using your money
All of these items
What is NOT one of the five steps to decision-making?
Gather information
Implement the decision
Postpone making a decision until later
State the problem
Managing how money is used and saved is called:
Investment planning
Cash flow management
Risk management
Estate planning
Taking action to minimize your tax liability is called:
Retirement planning
Estate planning
Education planning
Tax planning
What plan avoids or minimizes the impact of loss of the things you own?
Risk management
Financial planning
Project scheduling
Quality assurance
A financial planner is a professional who helps individuals manage their finances. What is the primary role of a financial planner?
To manage a company's financial accounts
To assist individuals in achieving their financial goals
To provide legal advice
To conduct market research
Cash flow management is the process of _______.
process of managing how your money is used and saved
managing the production and delivery of products
overseeing employee performance and productivity
developing marketing strategies to increase sales
Estate planning is the process of _______.
managing and allocating assets during one's lifetime
planning for the distribution of one's estate after death
creating a financial plan for retirement
organizing a living trust
The decision-making process involves:
Choosing between two or more options or courses of action
Ignoring the problem and hoping it resolves itself
Making a decision based on gut feeling without any information
Relying solely on others to make decisions for you
What are the five steps to decision-making?
Identifying the problem, gathering information, evaluating alternatives, making the decision, implementing the decision
Identifying the problem, brainstorming solutions, choosing the best solution, implementing the solution, reviewing the decision
Identifying the problem, gathering information, making the decision, implementing the decision, reviewing the decision
Identifying the problem, gathering information, evaluating alternatives, making the decision, reviewing the decision
Developing good decision-making skills is important because:
it helps in making informed choices.
it is not necessary for success.
it only benefits personal life.
it is a waste of time.
Some of the benefits of having a financial plan include:
Improved financial security and clarity
Increased financial risks
Decreased savings
Higher taxes
A financial plan should include which of the following activities?
Budgeting, saving, investing, and insurance planning
Cooking, cleaning, shopping, and exercising
Traveling, reading, writing, and painting
Gardening, hiking, swimming, and dancing
You have been offered two summer job opportunities: one is a receptionist job at a dentist's office, and the other is as a server at a beachside restaurant. The receptionist job pays $5.00 an hour plus tips and is 40 hours per week. Which job would you choose based on the 5-step decision-making process?
Receptionist job at a dentist's office
Server job at a beachside restaurant
What are the five steps of the decision-making process?
1. Identify the problem
2. Gather information
3. Evaluate alternatives
4. Make a decision
5. Review the decision
1. Identify the problem
2. Ask a friend for advice
3. Follow the first option you find
4. Ignore potential risks
5. Stick to your choice no matter what
1. Choose randomly
2. Avoid gathering information
3. Make a decision quickly
4. Never review your choice
5. Blame external factors if it fails
1. Think about different options
2. Make a decision immediately
3. Avoid overthinking
4. Follow someone else’s advice
5. Forget about the outcome
