A process of mapping decisions for spending, borrowing, and saving and investing in order to achieve financial goals.
What is the best definition of personal financial planning?
100
There are a number of valuable sources of information on the Internet that can be used for financial planning.
What is true about financial advice on the Internet?
100
Using credit to make purchases when the buyer knows that he/she can quickly pay the amount owed.
What does "good credit management" mean?
100
Intermediate-term goals are those that can be accomplished in one to five years.
What is a true statement about goals?
100
A picture of a person's financial well-being at a point in time.
What is a personal balance sheet?
200
Fewer than half of Americans have a retirement account.
What is a true statement about Americans saving for retirement?
200
a blueprint for building a house.
What is a financial plan created like?
200
She starts saving and investing now in order to have the down payment needed to buy the house.
What should a 21-year-old college student include in her financial plan if she is starting her first full-time job and wants to buy a home by age 30?
200
Interest paid on a loan.
What does not match correctly with cash inflow?
200
Car
What is a household asset?
300
The average person with an associate's degree can expect to earn 20% more than a high school graduate earns each year.
What is true about the relationship between education and a person's earning power?
300
Increasing assets and decreasing liabilities.
How does a person increase his/her net worth?
300
Money received from different sources, such as salary and interest earned on bank accounts.
What is the best description of cash inflow?
300
Be evaluated periodically and revised as needed.
What should happen to a financial plan?
300
To have an asset that will increase in value over time.
What is the purpose of investing money?
400
Buying a new computer for college in the fall: depositing 25% or more of weekly take-home pay in a bank savings account.
What is the person's correctly matched goal with a sound financial plan to meet that goal?
400
Bankruptcy.
What does a financial plan not include?
400
Payments by a person to a retirement account.
What does a person's cash flow include?
400
A good way for a person to determine how much money the person receives from various sources over the course of a month.
What is creating a cash flow?
400
The lender will review the person's balance sheet in order to find out if he has enough assets to cover both current liabilities as well as the debt created by the new loan.
What happens when a person applies for a loan?
500
necessary expenses when a person loses a job or is unable to work because of illness or injury.
What should money in an emergency fund be used to pay for?
500
Making weekly deposits in a bank savings account.
How does a person increase liquidity?
500
Set specific goals, put goals in writing, have a plan of action, and rethink goals if necessary.
What is the correct order for making financial decisions?
500
A budget should include both fixed and variable expenses.