A
What refers to personal belongings that have value?
Assets
__________ is a personal asset.
A. Credit card balance
B. Mortgage
C. Cash
D. Rent
C. Cash
What is an itemized summaries of the expected income and expenses for a defined period, typically one month?
Budget
True or False
Budgets rely on balance.
True
Which money personality refers to individuals who do not consider money as a necessity and do not have much of an opinion on money?
Flyer
Individuals that like to save money rather than spend it.
Saver
Common budgeting strategies include ensuring expenses are not more than __________,
Income
Individuals that enjoy spending money on themselves and others.
Spender
Callum is the type of person who likes to plan for the future and be prepared for any type of financial situation, Callum is most likely a __________.
Security Seeker
__________ is the first step an individual should take when creating a financial plan.
A. Setting financial goals
B. Determining the financial situation
C. Identifying courses of action
D. Evaluating alternatives
B. Determining the financial situation.
Which would be considered a short-term goal?
A. Saving for college
B. Saving for retirement
C. Starting a new career
D. Saving for a family vacation
D. Saving for a family vacation.
Categories in which can be put based on their spending and savings habits
Money Personalities
Saoirse has total assets of $120,000 and total liabilities of $80,000. What is her net worth?
$40, 000
Expenditures which are essential for an individual to live and function
Spending Needs
Individuals who enjoy investing money in high-risk ventures.
Riskk Taker
Which piece of SMART goal setting requires individuals to set a concrete number to assess whether the goal is completed?
Measurable
Which would be considered a long-term financial goal?
A. Paying a specific amount on a credit card
B. Saving for a retirement fund
C. Buying a new car
D. Reviewing the plan
B. saving for a retirement fund.
__________ is the sum of the individual’s current assets minus the individual’s total liabilities.
Net worth
Individual’s expenses and outstanding debts
Liabilities
Process of creating a plan to spend and save money
Budgeting
Expenses which help an individual to live more comfortably
Spending Wants
Joey has $750,000 is assets and $250,000 in liabilities. What is Joey's net worth?
$500,000
What is the first step in creating a budget?
1. Gather Financial Statements.
2. record all sources of income.
3. Create a list of monthly expenses.
4. Break expenses into fixed and variable.
5. Total monthly income and expenses.
6. Adjust Expenses.
7. Review.
Personal financial planning is the process of creating a ________ _____ to spend and save money
Financial Plan
A financial plan allows people to determine whether they will have enough money for their __________,
Needs and Wants