This is the process of planning your spending, financing and investing to optimize your financial situation.
What is Personal Finance?
100
This is the process of forecasting future expenses and savings.
What is budget planning?
100
This is determining how much you can afford to borrow.
What is managing loans?
100
Takes approximately 6 steps to do this.
What is develop a financial plan?
100
Julia brings home $1600 per month after taxes, this is how much she has to spend per month.
What is $1600?
200
This is a plan that specifies your financial goals and describes the spending, financing, and investing plans that are intended to achieve those goals.
What is a Personal Financial Plan?
200
This is access to funds to cover any short-term cash deficiencies.
What is liquidity?
200
Managing a loan includes deciding on this, when the loan becomes due.
What is maturity?
200
The first step is establishing these, based on what you want to do and the likelihood of achievement.
What are financial goals?
200
Julia's rent is $350 per month, her utilities are $100 per month, and her car payment is $250 per month, this is how much she has to pay for rent, utilities, and her car.
What is $700.
300
This is what you give up as a result of a decision.
What are Opportunity Cost?
300
This is making decisions regarding how much money to retain in a liquid form and how to allocate the funds among short-term investment instruments.
What is Money Management?
300
Managing a loan includes selecting a loan that charges this.
What is a competitive interest rate?
300
You should consider this, which is tied to your education, career choice, and the economy.
What is your current financial position?
300
If Julia's groceries cost $50 per week and she estimates her other expenses to be $150 per month, this is how much she spends per month on groceries and other expenses.
What is $350?
400
Understanding personal finance may interest you, but a single course is insufficient to start a career as this.
What is a Financial Adviser?
400
These are decisions regarding how much credit to obtain to support your spending and which sources of credit to use.
What is credit management?
400
These loans are loans for which the borrower is required to guarantee Repayment, by pledging with property, for instance,a car, a house etc.
What are secured loans?
400
When developing a financial plan, you should identify and evaluate this, that could achieve goals.
What are alternative plans?
400
Mia has $100 in assets, a finance loan of $500, an outstanding credit card balance of $200, monthly expenses of $300, and a monthly cash inflow of $1000. This is Mia's net worth.
What is $100?
500
More than 1 million people filed for this in 2011.
What is personal bankruptcy?
500
This is used to protect your assets and income.
What is insurance?
500
This is the property that secures a loan.
What is collateral?
500
If you find that you are unable or unwilling to follow your financial plan, you should do this.
What is Revise your Financial Plan?
500
Julia is considering trading in her car for a new one. Her new car payment will be $25 less per month. Her insurance will increase $30 per month. This is her opportunity cost.