Financial planning

Question 1

What do the events we plan for depend upon

Answer 1

Family situation
Financial situation
Lifestyle and how it may change
Personality
Attitude to risk

Question 2

What are the six features of effective financial planning

Answer 2

Realistic, clear, timely, flexible, documented and implemented

Question 3

What are the 4 ways financial plans are monitored and controlled

Answer 3

Monthly receipts
Amount in
Out as mandatory, essential and discretionary
Surplus or defecit

Question 4

What are the 7 stages of a financial plan

Answer 4

Decide on aspirations
Establish realistic timescales
Audit resources available
Establish priorities
Document the plan
Implement the plan
Review the progress

Question 5

What are the three types of financial products

Answer 5

Savings, borrowing and insurance

Question 6

What are the consequences of poor financial planning

Answer 6

Bankruptcy, more debt, can’t achieve aspirations, bad credit, can’t save, unable to borrow