How To Take Charge On Financial Well Being

Question 1

4 themes of this course

Answer 1

You are responsible for yourself
Your present self impacts your future self.
You are better off in a community than by yourself.
Investing helps you cope with risks and uncertainty.

Question 2

Well Being

Answer 2

Well-being is the state of being comfortable, healthy, or happy.

Question 3

5 well being domains

Answer 3

Physical, intellectual, Social, Emotional, Financial

Question 4

FInancial Well-being

Answer 4

a state wherein a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow them to enjoy life.

Question 5

Earning

Answer 5

to gain or get in return for one’s labor or service: to earn one’s living

Question 6

Spending

Answer 6

To use (money) to pay for something

Question 7

Saving

Answer 7

Accumulation of excess funds by intentionally spending less than you earn.

Question 8

Borrowing

Answer 8

Receiving something with the promise to return it or its equivalent.

Question 9

Needs

Answer 9

Good or services that are required for survival

Question 10

Wants

Answer 10

The desire for goods and services that can increase our quality of
life but are not absolutely necessary for our survival.

Question 11

Opportunity Cost

Answer 11

The value of the next best alternative that must be forgone as a result of a decision. For example, every time you make a choice, there is a certain value you place on that choice. You might not know it or think about it, but every choice has a value to you. When you choose one thing over another, you’re saying to yourself, I value this more than another choice I had. The opportunity cost of a choice is what you gave up to get it.

Question 12

Trade off

Answer 12

Giving up one thing for another. For example, using money for new tires to buy the perfect prom dress. Your trade off was you had an awesome dress but terrible tires on your car to get you to the prom!

Question 13

Value

Answer 13

A fundamental belief or practice about what is desirable, worthwhile, and important to an individual.

Question 14

Goal

Answer 14

the end result of something a person intends to acquire, achieve, do, reach, or accomplish sometime in the near or distant future.

Question 15

Financial Planning

Answer 15

Managing money continuously through life in order to reach financial goals.

Question 16

Financial Goals

Answer 16

Specific objectives, or goals, that are accomplished through financial planning.

Question 17

Short term goal

Answer 17

Attained in less than one year

Question 18

Long term goal

Answer 18

Attained in more than one year

Question 19

Whats the S in S.M.A.R.T Goals?

Answer 19

Specific (State exactly what is to be done with the money involved)

Question 20

Whats the M in S.M.A.R.T goals

Answer 20

Measurable (Write the exact dollar amount)

Question 21

A in SMART goals

Answer 21

Attainable (Create a step by step plan outlining exactly how the goal can be reached)

Question 22

R in SMART GOALS

Answer 22

Realistic (Think through the trade-offs and opportunity costs to analyze the consequences)

Question 23

T in SMART GOALS

Answer 23

Time Bound (Specifically state when the goal will be reached)