Family Life Cycle & Budgeting
After creating his budget, John realized his expenses exceed his income. To resolve this issue he can do which of the following?
Eat out less frequently
CDs are similar to savings accounts because of which of the following?
They accrue interest
True or false - Short-term goals cover a time period of one to two years.
false
What is the order of the family life cycle?
Younger single, younger single - no children, couple - dependent children, single - dependent children, older couple - independent children, older single, couple - retired, single - retired
Because the family life cycle changes, goals require which of the following?
Constant updating
Savings accounts are like money market accounts because of which of the following?
They have a limited number of withdrawals
Budgeting finances requires calculating __________ and __________.
Income; expenses
A budget helps prevent debt by detailing which of the following?
Identifying shortages before they happen
Unlike Roth IRAs, traditional IRAs have which of the following characteristics?
Requires taxes be paid on interest
______ explains how a person changes financial position, earnings, consumption and savings throughout the life cycle.
Family life cycle
The family life cycle helps marketers define which of the following?
Target market
CDs are a common way to save money and are offered by most financial institutions. In this instance, CD stands for which of the following?
Certificate of deposit
Budgets assist in reorganizing finances to reduce ________ or increase ________.
Debt; savings
How many categories are there of the family life cycle?
Eight
Mutual funds can be described as which of the following statements?
Are professionally managed
If income exceeds expenses, which of the following is recommended?
Research investment and savings options