chapter 7

Question 1

those who have just started working or in the early part of their respective careers

Answer 1

accumulation phase

Question 2

those in this phase already have the necessary assets required of a typical household and have settled most of their outstanding liabilities

Answer 2

consolidation phase

Question 3

retired individuals belong to this stage

Answer 3

spending phase

Question 4

not everyone is expected to reach this phase and most of the time this stage is concurrent with the consolidation stage

Answer 4

gifting phase

Question 5

10 basic principles of personal finance

Answer 5

-the best protection in knowledge
-nothing happens without a plan
-the time value of money
-taxes affect personal finance decisions
-stuff happens or the importance of liquidity
-waste not, want not _ smart spending matters
-protect yourself against major catastrophes
-risk and return go hand in hand
-mind games and your money
-just do it