Communication
What is one way to show respect to others
Use their name
an estimate of income and expenditure for a set period of time.
Budget
Bonds
Loans to companies or governments
What are goals
What an individual is trying to accomplish; it is the objective or aim of an action.
include everything you own with value
ex: checking or savings accounts, stocks, bonds, mutual fund investments, automobiles, homes, and household items
Assets
transfer of information from one person to another without the use of words or spoken language
Nonverbal communication
Refers to an individual who likes to save money rather than spend money
Saver
A collection of stocks and/or bonds that are traded on securities exchanges. Unlike mutual funds, they can be traded throughout the day like an individual stock.
Exchange-Traded Fund
How long is a short term goal
12 months or less
lists your assets and liabilities on a specific date, and is used to determine a person's net worth.
net worth=total assets-total liabilities
balance sheet
Your tone can be ______________ but should not be _______________.
assertive; aggressive
50/30/20 Budget
50% to needs, 30% to wants, and 20% to savings and debt repayment
A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn
Traditional 401(k) Plan
The first step to setting goals is _____ your dreams by writing three or four down.
identifying
personal financial plan
specifies your personal goals and details the activities to achieve those goals. It includes analyzing your income, expenses, liabilities, and savings.
Validating someone's feeling
Doesn't mean you agree with them, it means you understand them
Take-home pay
is the amount of income left after taxes and othe deductions are subtracted from your gross pay.
True or False:
Compounding is dividing your investments among a variety of different asset classes and is a way of reducing risk.
False
An example of a _____ goal is becoming a nurse.
Long Term
Two principal themes in financial planning
1. maximize your income and accumulate wealth
2. control your expenses
What are the six types of communication
oral, interpersonal, nonverbal, written, visual, and listening
What are the steps to creating a financial plan
-determining the financial situation
– setting financial goals
– identifying courses of action
– evaluating alternatives
– finalizing the plan
– implementing
the plan
Which of following investment vehicles have relatively high risk?
a) CD's
b) Money market
c) Savings
d) Stock
Stock
5cs for setting goals
6 steps of financial planning
1. create a list of financial goals
2. analyze your current financial situation
3. create a budget
4. select appropriate savings vehicles
5. measure the performance of your plan
6. adjust the plan as necessary