Goal Setting
Long-term goals usually focus on achievements over this time frame.
What is several years or more?
Financial planning reduces this risk of running out of money in the future.
What is financial stress?
Tracking your expenses allows you to know where this is going.
What is your money?
This account type is ideal for everyday spending and paying bills.
What is a checking account?
Putting money into investments helps you grow wealth over this time period.
What is the long term?
Goals are more likely to be achieved when you do this with them.
What is write them down?
The term for managing money to achieve your financial goals.
What is money management?
Overspending can be avoided by following this plan.
What is a budget?
The amount of money available in your checking account is called this.
What is your account balance?
Investing in this type of fund lets you pool your money with other investors.
What is a mutual fund?
A short-term goal typically takes this long to achieve.
What is less than a year?
Financial plans help manage income, expenses, and this.
What is savings?
A budget compares your income to these two key financial factors.
What are savings and expenses?
A service that protects your account from overdraft fees.
What is overdraft protection?
The profit earned on an investment is known as this.
What is return on investment (ROI)?
The "R" in SMART goals ensures that your goals are this.
What is realistic?
This safety net should cover 3-6 months of living expenses.
What is an emergency fund?
Money set aside for non-essential purchases, such as entertainment.
What are discretionary expenses?
You can track your account activity using this monthly document from the bank.
What is a bank statement?
This type of investment gives you partial ownership in a company.
What are stocks?
This acronym describes goals that are clear, achievable, and trackable.
What is SMART?
The first and most important step in financial planning.
What is setting financial goals?
Expenses that stay the same each month, like rent or a car payment.
What are fixed expenses?
Writing a check without enough money in your account results in this.
What is an overdraft?
The practice of spreading investments to reduce risk is called this.
What is diversification?