Financial Planning
What is the main goal of financial planning?
To manage money so you can meet goals now and later.
A budget is a plan for managing what two things?
Income and expenses
Saving money means what?
Setting aside money for future use.
What country is on most Canadian coins besides Canada?
The U.K. (Queen or King image).
Name one benefit of having a financial plan.
Helps avoid debt / reach goals / reduce stress.
What’s the 50 in the 50/30/20 rule used for?
Needs like rent, groceries, utilities
Name one short-term financial goal.
Buying a phone, trip, concert, etc.
What do we call money that has value because the government says so, not because it’s backed by gold?
Fiat money.
If someone tracks income and spending each month, what part of a financial plan are they doing?
Budgeting
If your monthly income is $2,000, how much goes to “needs” using 50/30/20?
$1000
Name one long-term financial goal.
Buying a house, car, retirement.
What does ATM stand for?
Automated Teller Machine.
Why is an emergency fund important?
It prepares you for unexpected expenses like car repairs or medical bills.
What’s the difference between a fixed and variable expense?
Fixed = same each month ; Variable = changes (ex groceries)
If you save $50 a month for a year, how much will you have?
$600 (before interest).
If the price of goods goes up but income stays the same, what economic issue is happening?
Inflation.
Financial planning helps your money ___ for you.
Work
If you spend more than you earn, what usually happens?
You go into debt or must use savings
What is one strategy to avoid overspending?
Track spending / use cash / stick to a list / compare prices.
What does it mean to “own stock” in a company?
It means you own a small piece (share) of that company — if the company does well, your share can increase in value, and you might earn dividends.