Topic 1 Flashcards
1
Q
What is the purpose of personal financial planning?
A
meet needs and desires
meet financial goals
ensure financial well-being
2
Q
What is the key to personal financial planning?
A
flexibility
3
Q
Why must PFP be flexible?
A
needs and goals change
personal circumstances
the planning environment changes
4
Q
What kinds of financial plans are there?
A
special needs plan
comprehensive plan
5
Q
What is the typical planning life cycle
A
childhood JC, Poly, uni Family formation career development pre-retirement retirement
6
Q
Who are the major players in the economy
A
government
business
consumers
7
Q
What is the planning process?
A
assess current financial status define financial goals translate goals into plans implement plans monitor progress and revise goals and plans as circumstances change
8
Q
What are the components of SMART goals
A
specific measurable achievable ranked time frame
9
Q
What are the major categories of comprehensive financial plans
A
asset acquisition/investment plan liability cash flow management/savings plan risk management/insurance tax plan retirement and estate plan
10
Q
What are the types of financial planning tools?
A
financial statements
financial ratios
cash budget
financial mathematics
