WEEK 1-2

Question 1

a term that addresses matters regarding the management, creation, and study of money and investments. ​It involves the use of credit and debt, securities, and investment to finance current projects using future income flows.

Answer 1

FINANCE

Question 2

Three Categories of Finance​

Answer 2

1. Public Finance​
2. Corporate Finance​
3. Personal Finance​
   - Behavioral Finance

Question 3

a term that covers managing your money as well as saving and investing. ​ It encompasses budgeting, banking, insurance, mortgages, investments, and retirement, tax, and estate planning. ​
The term often refers to the entire industry that provides financial services to individuals and households and advises them about financial and investment opportunities.​

Answer 3

Personal Finance

Question 4

4 Importance of Personal Finance

Answer 4

securing your financial future.​
track your spending.​
make smarter choices about your money.​
understand the value and importance of money.​

Question 5

5 Main Areas of Personal Finance

Answer 5

Earning Income​
Spending​
Saving​
Investing​
Protection

Question 6

It refers to a source of cash inflow that an individual receives and the uses to support themselves and their family.​

Answer 6

Earning Income​

Question 7

It refers to all types of expenses an individual incurs related to buying goods and services or anything that is consumable.​

Answer 7

Spending

Question 8

It refers to excess cash that is retained for future investing or spending.​

Answer 8

Saving

Question 9

It relates to the purchase of assets that are expected to generate a rate of return, with the hope that overtime the individual will receive back more money than they originally invested.​

Answer 9

Investing

Question 10

It refers to a wide range of products that can be used to guard against an unforeseen and adverse event.​

Answer 10

Protection

Question 11

Personal finance enables individuals to build a safety net against unexpected events like medical emergencies, job loss, or other unforeseen circumstances. Having sufficient savings and insurance coverage provides financial security and peace of mind. ​

Answer 11

Financial Security​

Question 12

Understanding personal finance empowers individuals to create and follow a budget, which helps control spending, avoid debt, and maximize savings. ​

Answer 12

Budgeting and Money Management​

Question 13

Knowledge of personal finance enables individuals to manage and reduce debt effectively, preventing the burden of high-interest loans and credit card debt. ​

Answer 13

Debt Management​

Question 14

Effective personal finance helps individuals set and achieve financial goals, whether it’s buying a home, funding education, starting a business, or planning for retirement. ​

Answer 14

Goal Achievement​

Question 15

Being financially literate allows individuals to make informed investment decisions, potentially growing their wealth over time and building a strong financial foundation. ​

Answer 15

Investment and Wealth Building​

Question 16

Personal finance knowledge is essential for planning and saving for retirement, ensuring a comfortable and financially secure post-work life. ​

Answer 16

Retirement Planning ​

Question 17

Understanding credit and borrowing practices helps individuals maintain a good credit score, access favorable loan terms, and use credit responsibly. ​

Answer 17

Credit and Borrowing​

Question 18

With personal finance knowledge, individuals are less likely to fall into financial traps, such as overspending, impulse buying, or falling victim to scams. ​

Answer 18

Avoiding Financial Mistakes​

Question 19

Having a grasp of personal finance allows individuals to be financially independent, making their financial decisions without relying solely on others. ​

Answer 19

Financial Independence​

Question 20

Being financially literate enhances one’s understanding of economic trends, inflation, and how these factors can affect personal finances. ​

Answer 20

Economic Awareness​

Question 21

Through personal finance education, individuals can pass down financial knowledge and strategies to future generations, creating a legacy of wealth-building and financial responsibility. ​

Answer 21

Building Generational Wealth​

Question 22

11 Lessons to Learn in Personal Finance​

Answer 22

Financial Security​
Budgeting and Money Management​
Debt Management​
Goal Achievement​
Investment and Wealth Building​
Retirement Planning ​
Credit and Borrowing​
Avoiding Financial Mistakes​
Financial Independence​
Economic Awareness​
Building Generational Wealth​

Question 23

These are targets that can help you find effective ways to spend and save money, both at work and in your personal life. ​It can be short-, medium-, or long-term goals.​

Answer 23

Financial Goals

Question 24

Examples of Financial Goals​

Answer 24

Signing Up for a Retirement Plan​
Funding a Vacation​
Launching a Business​

Question 25

is a strategy to accumulate wealth throughout your career.​
It can provide you with substantial savings to fund your lifestyle. ​
Before you start saving, it’s important to set a retirement goal. ​

Answer 25

A retirement plan

Question 26

is an appropriate example of a financial goal that you can set.​
Research the travel and accommodation costs and consider the amount of money you may need for food, souvenirs and sightseeing activities. It can also be helpful to assess your financial status before leaving so you have resources for other priorities in your life.​

Answer 26

Financing a vacation

Question 27

Plan and Design your business accordingly.​ Becoming a business owner can be expensive, as you’re responsible for building and maintaining its operations.​ You can also consider how much you can compensate the people who work for the business and the rates of the services you can provide to clients.​

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Answer 27

Launching a Business​