Key Terms
What is a personal financial plan?
A strategy for how you will spend, save, and invest your money today and into the future.
Adding up the value of all your assets and subtracting your liabilities.
Net Worth
How many steps are there in Implementing a Financial Plan?
5
A _______ is a professional who can help you plan and manage your financial future.
Financial Planner
You should consistently review your financial plan
True
What is personal responsibility?
To hold yourself accountable for the decisions you make.
Your personal ______ is the amount of money received from earnings from a job or business.
Income
What is the last step in Implementing a Financial Plan?
Review and revise periodically
A business financial plan typically works by outlining a variety of financial statements for a time period of __ to ___ years.
3 to 5 years
It is not that important to know your spending behavior
False
Define what a budget is.
A detailed estimate of income and expenses over a specific period of time.
An ________ is the amount of money you need to pay for or buy something.
Expense
What is the first step in implementing a financial plan?
Design a plan to manage spending and reach specific financial goals.
A ________ holds a similar purpose to a personal financial plan in that its primary objective is to devise a strategy for how a company will spend, save, and invest its funds for maximum profitability.
Business Financial Plan
You get to take away 300 points from a team of your choice
Pick wisely
What is a financial planner?
a professional that can help you plan and manage your financial future.
Planning for what to do with one’s assets in the event of death.
Estate Planning
What is the 2nd step of Implementing a Financial Plan?
Determine where you are right now.
plays a critical role in financial planning because moral obligations drive decision-making.
Ethics
A budget includes personal cash flow—or a snapshot of the money coming in and money going out
True
What is Fiduciary Responsibility?
the responsibility of a financial planner to put the needs of their clients first and act in a trustworthy way to protect and mange their clients money.
This serves as a roadmap for the other elements in your plan.
Defining Financial Goals
What is the 4th step in Implementing a Financial Plan?
Put the plan into action.
What kind of fund is called when you set money aside in case something unexpected happens in your life.
Emergency Fund
When selecting a financial planner to work with, remember the importance of ethics and make your decision based on qualifications, credentials, recommendations, and an assurance of fiduciary responsibility.
True