Week 1 Quiz Flashcards
T/F:
Standard of living is defined as the necessities, comforts, and luxuries desired by an individual or a family.
True
T/F:
The most effective way to achieve financial objectives is through personal financial planning.
True
T/F:
The need for financial planning declines as your income increases.
False
T/F:
When you get your first job, you should make a good financial plan that you can follow without making changes until you retire.
False
T/F:
Saving $400 for a large, flat-screen TV within the next four months is an example of a short-term goal.
True
T/F:
Short-term planning should include creating and maintaining an emergency fund with at least six months’ worth of income.
True
T/F:
The longer you wait to begin retirement planning, the less you are likely to have in your retirement fund.
True
T/F:
Your purchase, saving, investment, and retirement plans and decisions are not influenced by the present state of the economy.
False
T/F:
Living costs are constant throughout the country.
False
T/F:
Geographic factors affect your earning power.
True
T/F:
Marital status affects the income level of individuals.
True
T/F:
Setting long- and short-term career goals helps in career planning.
True
T/F:
Career plans should not be changed after long- and short-term career goals are set.
False
Personal financial planning is important because it:
results in an improved standard of living
What is the term for the net total value of all the items that an individual owns?
wealth
The purchase of a car is an example of:
consuming
The last step in the financial planning process is to:
redefine goals and revise plans and strategies as personal circumstances change
Which of the following financial goals is most useful for developing a financial plan?
Make a $12,000 down payment on an automobile in four years.
Financial plans include setting goal dates, which are dates in the:
future when the goals are expected to be achieved.
Which of the following statements about setting long-term goals is true?
the goals should be realistic
Which of the following is one of the most emotional issues in any relationship, including that with a partner, parents, or children?
money
Which of the following practices helps an individual survive in a financial crisis?
Establishing an emergency fund with six months’ worth of income
Between the ages of 65 and 80, income tends to:
decrease
Which of the following represents the three stages of the financial planning life cycle?
Wealth accumulation, wealth preservation, and wealth transfer
