Cards (40)

    • What is financial planning primarily concerned with?
      Managing money for goals
    • Monitoring and adjusting your financial plan is optional
      False
    • One of the initial steps in financial planning is assessing your current financial situation
    • Match the element of financial planning with its description:
      Assessment ↔️ Evaluating your current financial situation
      Goal Setting ↔️ Determining your financial objectives
      Plan Development ↔️ Creating a strategy to reach your goals
    • Regularly reviewing your financial plan is necessary for adjustments
      True
    • Calculating monthly income and expenses helps determine surplus or deficit
      True
    • Steps in financial planning
      1️⃣ Assess your financial situation
      2️⃣ Set financial goals
      3️⃣ Develop a financial plan
      4️⃣ Implement the plan
      5️⃣ Monitor and adjust the plan
    • Savings in a personal budget refer to the amount set aside for future goals or emergencies.

      True
    • Methods for saving money
      1️⃣ Create a budget
      2️⃣ Cut unnecessary expenses
      3️⃣ Set specific savings goals
      4️⃣ Automate savings
    • What does growth investing focus on?
      High capital appreciation
    • Investment strategies refer to the different approaches individuals can take when investing their money
    • Index investing tracks the performance of a broad market index, such as the S&P 500
    • What is an example of a short-term financial goal?
      Saving for a down payment
    • Steps involved in financial planning
      1️⃣ Assess current financial situation
      2️⃣ Set financial goals
      3️⃣ Develop a plan
      4️⃣ Implement the plan
      5️⃣ Monitor and adjust
    • Monitoring and adjusting your financial plan is necessary for long-term success.
      True
    • Expenses in a personal budget include spending on needs and wants.

      True
    • Steps involved in financial planning
      1️⃣ Assess current financial situation
      2️⃣ Set financial goals
      3️⃣ Develop a plan
      4️⃣ Implement the plan
      5️⃣ Monitor and adjust
    • Financial planning involves managing money to achieve goals like retirement or paying off debt
    • What is included in the income component of a personal budget?
      Money earned from wages
    • Identifying short-term, medium-term, and long-term objectives is part of setting financial goals
    • What is a personal budget?
      A financial plan
    • Calculating monthly income and expenses helps determine whether there is a surplus or a deficit
    • Budgeting involves tracking income and expenses to allocate funds
    • Match the investment strategy with its description:
      Diversification ↔️ Spreading investments across asset classes
      Value Investing ↔️ Identifying undervalued assets
      Income Investing ↔️ Prioritizing dividend-paying stocks
      Growth Investing ↔️ Focusing on emerging industries
    • Diversification involves spreading investments across different asset classes to reduce risk.

      True
    • Why should you invest in a variety of asset types and sectors?
      Reduce the impact of poor performance
    • Short-term financial goals are typically achieved within 1-2 years
    • The first step in financial planning is assessing your current financial situation
    • Match the components of a personal budget with their descriptions:
      Income ↔️ Money earned from wages
      Expenses ↔️ Money spent on needs and wants
      Savings ↔️ Amount set aside for goals
      Surplus ↔️ Income exceeds expenses
    • What is the difference between income and expenses in a budget called?
      Surplus or deficit
    • The savings component of a budget is the amount set aside for future goals or emergencies
    • What is the definition of financial planning?
      Managing money for goals
    • What are included in monthly expenses?
      Rent, utilities, groceries
    • Diversification in investing involves spreading investments across different asset classes to reduce risk.

      True
    • Why is diversification important in investment planning?
      Mitigates risk
    • What does growth investing focus on?
      High capital appreciation
    • Financial goals can include saving for retirement or paying off debt.

      True
    • Long-term financial goals are achieved in 5+ years.

      True
    • What is the purpose of setting financial goals in financial planning?
      Identify short-term objectives
    • Income in a personal budget includes money earned from wages, salaries, and investments