CH1 Fin281 HW Q's

Veronica just received her financial aid disbursement amount of ​$2000 She subtracted out her​ one-time expenses such as books. What should she do​ next?

Divide the remaining amount by the number of months she will need the money

Ira has completed his monthly budget and notes that the difference between his monthly income and his monthly expenses is a shortage of​ (negative) $100. This means that Ira did​ what?

Spent​ $100 more for the month than what he made in income, must find another source of funds to make up for the shortage

Viola just completed her net worth worksheet. Her total net worth is a positive number. What does this mean for​ Viola?

The total worth of her assets exceeds the total amount of her debts

Joseph grew up in a wealthy​ home, went to a​ well-known university and has a large income. Assuming he is like most people in his​ situation, he is more likely to​ __________ than is a financially disadvantaged single parent working two​ minimum-wage jobs to support a family

avoid playing the lottery and focus on at least one goal

Louie keeps running out of money before his rent is due. He is not doing very well at controlling his spending. A good tool he should be using is​ a:

budget

Basic financial planning

clears away the complexity

Ahmet is working on his budget process. He has already created an estimated​ one-month budget and tracked an actual month of spending. His next step should be​ to:

compare the two budgets

John is a famous athlete that made over ​$30 million during his professional athletic career.​ However, within three years after retiring from​ sports, he went bankrupt. Like many famous people who go​ broke, John most likely does not know how​ to:

control his spending

The reason it is suggested that you​ ________________ is so you handle the money the way you want to and make sure it is being spent on your highest priorities.

establish financial goals

to make sure you spend your money on highest priorities, you should

establish financial goals

Bershir manages his budget well and even makes a list before he goes shopping.​ However, it seems that every time he goes shopping he sees items not on his list that he really wants and spends way too much money on them and then ends up running out of money before his next paycheck. His biggest issue seems to be

impulse buying

Chia is working with a financial planner who is concerned about the potential that interest rates could start rising​ soon, just before Chia is ready to buy a house. Her financial planner is focused on which common lifestyle​ force?

macroeconomic conditions

Charissa is working​ full-time with a decent salary. She would like to save 12k to own her own condominium in four years. Her goal is considered

mid-term

Lisa has developed her goals and is managing her budget. The next step she should take in the financial planning process​ is:

monitor and review

​Parvé has set a goal to accumulate​ $10,000 by investing a small amount of his paycheck each month and earning a reasonable amount of interest. He wants to use this money to buy a house. This is not a S.M.A.R.T. goal​ because:

no time frame

​Franco's financial plan seemed to be going smoothly when suddenly he received a bill for​ $700 for personal property tax on his expensive car. This ruined his budget for the current month as well as the next several months. This could have been prevented if he​ had:

not forgotten non-monthly expenses

When looking at our acronym​ S.P.E.N.D., the letter​ 'N' refers to​ whom?

sales people, coworkers, friends and family

Deedra has been trying to be responsible with her money. She even paid off her student loans​ early! Unfortunately, her car broke down last week and the repairs cost her​ $1,000. Fortunately, she did not have to go into​ debt, but rather had the cash available in a separate account. Most likely this is because she had been

saving for emergencies

Personal financial success is not about how much you make but about how much​ you:

spend

Quincy is 62 years old and plans to retire later this year. He is concerned about his grown children and his grandchildren and wants to make sure he can provide as much support to them as​ possible, especially after he is gone. He is in the _____ stage of his financial life cycle

wealth distribution

Shania is in her early 20s and just started her first real​ full-time job with benefits. She is engaged to be married and would like to buy a home within the next three years. Shania is in the _______stage of her financial life cycle

wealth protection