WorksheetsFinancial Planning and Decision-Making Worksheet
Total questions: 27
Worksheet time: 16mins
Which of the following is considered a need?
a new car
business clothes
a place to sleep
a steak dinner
Which of the following is NOT a stage in the financial planning process?
Know the problem or question before searching for an answer
Make the best choice after thinking about all of the consequences
Determine all the choices you have
Wait for financial stability
Evaluate the results
Which of the following factors can influence decisions?
age
values
family
peers
all of the above
Which of the following items is a want and not a need?
food
clothes
a place to sleep
a new car
What is the purpose of goal setting in the financial planning process?
to provide direction for planning and action
to clarify goal ranges
to differentiate between needs and wants
to facilitate decision making
What is the first step in the financial planning process?
Identify the problem
Decide
Evaluate
Identify alternatives
What does the M in SMART goal setting stand for?
measurable
meaningful
money-driven
masterful
Which of the following is the MOST IMPORTANT statement in the financial planning process?
Alternatives do not need to be examined.
All decisions only have a short-term effect.
After a decision is made, results can be ignored.
Every decision made today affects decisions made in the future.
Many factors can influence your financial plan. Which one of the following concepts reflects this fact?
Wait and see what happens
Financial planning is a process, not a product
All financial decisions are short-term
You must monitor the plan
A goal that is set for 18 months from today would be considered a...
future goal
long-term goal
distant goal
adjacent goal
Which of the following is a step in the financial planning process?
minimizing taxes in the plan
list alternatives
developing a comprehensive financial plan
constructing a financial planning pyramid
A value can be described as:
something basic for your survival
something you desire to make your life more comfortable
a willingness to give up something now in exchange for a future benefit
a belief or idea you consider important or desirable
Which of these is the correct sequence for the four-step decision-making process.
Know the problem, brainstorm pros and cons of possible choices, decide the best option, reflect to improve future choices
The best option for you, brainstorm pros and cons of all the possible choices, know the problem, reflect future choices
Develop a timeline, set goals, analyze information, implement plan
Brainstorm pros and cons for all possible choices, the best option for you, know the problem, reflect to improve future choices
Every decision has an opportunity cost. How would you define it?
An amount of money given up when making a financial decision.
The option chosen when making a decision
The value of the option chosen when making a decision.
The value of the next-best alternative when making a decision.
Which of the following is a major factor in helping you achieve your financial goals?
Your job choice
The amount of overtime you work
Your ability to balance work and personal life
Where you live
Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set?
When his financial goals have been established
When his money management plan has established high well-being
When he is 70 years old
Never - it is an ongoing process
Kaylee will save her allowance of 25permonthtopurchasea 150 pair of athletic shoes. This is an example of what type of goal?
Short-term goal
Long-term goal
Intermediate goal
This is not an example of a goal
Mark and Susan, a recently married couple with full-time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?
Short-term
Intermediate
Long-term
Unrealistic
Amber’s academic adviser has asked her to set three academic goals for the semester. These goals are MOST LIKELY to be accomplished if:
Amber discusses her goals with her parents
Amber writes her goals down
Amber thinks about her goals weekly
Amber lets her friends set her goals
Which of the following is NOT an example of a routine decision?
What to wear in the morning
Where to sit on the school bus
What car to purchase
What toothpaste to purchase
What does the R in the SMART goal stand for?
Realistic
Resourceful
Responsible
Rational
(a) Never borrow money to invest.
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?
She is not satisfied with the monthly budget outcome.
Her needs keep changing, so she changes her monthly budget.
She is reviewing her goals and aligning the budget to work toward them.
She keeps changing her mind about her goals.
What is the last step in planning your budget?
determining your take-home income
ensuring your goals have flexible characteristics
understanding your wants
review and revisions
Lucy wants to attach a goal cost to each of her life goals. Why might she do this?
She wants to maintain a log of income and expenses.
She wants to identify how expensive her goals are so she can replace high-cost ones with more reasonable options.
She wants to identify the amount of money, time, and effort required to realize her goals.
She wants to identify the opportunity cost she is facing.
Investments are important to building:
For emergencies
For your future net worth
A trade-off to higher returns is lower liquidity and higher risk
Tax-advantaged investments
Money invested is usually used to pay to:
Achieve long-term goals
For emergencies
To purchase expensive items
To pay off loans
