Lesson 1 : FINANCE Flashcards
The process of determining a person’s financial needs or goals for the future and how to achieve them.
Personal Finance
is a financial management which an individual or a family work to budget, save, and spend monetary resources over time, taking into account different financial risks.
Personal Finance
The best way to achieve financial objectives is through —
Personal Financial Planning
It is a planning which helps us define our financial goals and develop appropriate strategies to reach them.
•Is an approach whereby an individual maximizes the existing financial resources through proper management of one’s finances.
Personal Financial Planning
— and regularly changing them is the key to building a sound financial future.
Flexible Plans
Results that an individual wants to attain, such as buying a home, building a college fund, or achieving financial independence.
Financial Goals
___ are the results that an individual wants to attain.
Financial Goals
It is the medium of exchange used to measure value in financial transactions.
Money
Target dates in the future when certain financial objectives are expected to be completed.
Goal Dates
financial goals covering about 6 years out to the next 30 or 40 years.
Long-term Goals
Are set each year and cover a 12-month
Short-term Goals
Are set for 2-5 years.
Intermediate Goals
A critical determinant of your lifetime earnings is your —
Career
a job for which you are trained and in which it is possible to advance during your working life, so that you get greater responsibility and earn more money:
Career
Through careful career planning, you can improve your work situation to gain greater personal and professional satisfaction.
True
