Chapter 9

Question 1

Planning process

Answer 1

Begins with a decision based identification of a situation that requires action

Formulation, implementation, and evaluation of a plan

Question 2

the planning process

Answer 2

Multitasking
Schedules
Sequencing
Independent activities: unrelated
Interdependent activities: sequence specific
Intuition
Brainstorming

Question 3

Goal Shifting

Answer 3

the ability to change goals

Question 4

Rule activation

Answer 4

Applying rules from one activity to the next activity

Question 5

Goals must be

Answer 5

Reasonable, measurable, specific, and understood

Question 6

Goal terms

Answer 6

Short term - 3 mo or less
Intermediate - 3 mo to 1 year
Long term - 1 year or more

Question 7

specific goals

Answer 7

Societal goals
Family goals
Personal goals

Question 8

Planning

Answer 8

Directional - moving along in a path
Proactive - creating a reality before it happens
Reactive - responding to a situation already occurred
Strategic - strategy (most affective)
SWOT analysis - Strength Weakness Opporitunities Threats

Question 9

Contingency plan

Answer 9

Alternative plan/ back up plan

Question 10

Budgeting

Answer 10

Salaried (yearly) Hourly (by the hour)
Net (before tax) Gross (after taxes)
Variable expenses (insurance) Fixed (groceries)
Surplus (too much) deficit (too little)

Question 11

Creating a good financial plan

Answer 11

Flexibility
Liquidity
Protection
Tax efficiency

Question 12

Financial planning

Answer 12

Having an emergency fund
Paying down debt
Paying for college
Down payment for at home
Home payments
Financing pregnancy and birth
Setting money aside for retirement

Question 13

Extra

Answer 13

Social security is due to expire in the year 2035 due to life expectancy; people are living longer