Goal Setting
Writing down what you want to achieve in a specific time frame.
What is goal setting?
The process of managing money to achieve personal goals.
What is financial planning?
A plan for how to spend and save your money.
What is a budget?
A bank account used for everyday transactions.
What is a checking account?
Buying stocks, bonds, or mutual funds to grow wealth.
What is investing?
This type of goal focuses on long-term achievements.
What is a long-term goal?
This is a document that outlines income, expenses, and goals.
What is a financial plan?
When expenses are greater than income, this is created.
What is a deficit?
You use this to withdraw cash or make payments directly from your checking account.
What is a debit card?
This is the chance you might lose money when investing.
What is risk?
These goals can typically be completed in less than a year.
What are short-term goals?
Setting aside money for unexpected events is called this.
What is an emergency fund?
Housing, utilities, and transportation are examples of these expenses.
What are fixed expenses?
This document lists all account transactions within a specific period.
What is a bank statement?
This represents partial ownership in a company.
What is a stock?
Goals should follow this acronym to ensure they are measurable.
What is SMART (Specific, Measurable, Achievable, Relevant, Time-bound)?
Financial planners recommend saving at least this percentage of your income.
What is 20%?
Entertainment and eating out are examples of these expenses.
What are variable expenses?
This action reconciles your checking account records with your bank statement.
What is balancing your checkbook?
A collection of investments to reduce risk.
What is a portfolio?
A vision board helps you achieve goals through this type of visualization.
What is a mental imagery?
This concept involves identifying what is most important to spend your money on.
What are financial priorities?
Keeping track of expenses helps ensure you don’t exceed this.
What is a spending limit?
These are fees banks charge for maintaining a checking account.
What are maintenance fees?
Investing in this type of account allows tax-free growth for retirement.
What is a Roth IRA?