Personal Finance Chapters 1

Financial Experts recommend saving at least __________ of your earnings for retirement and an emergency fund.

10%

According to Sonja Lyubomirsky, your genes contribute to about ____________ % of your happiness.

50%

One method to help in paying yourself first is to setup ______ transfers or withdrawals from a paycheck to a savings account.

Automatic

A college _____ center offers tools to help students learn about their passions and talents.

Career

Which of the following goals should be incorporated into your financial plan?

Career, Protection, Spending, Giving

Which of the following activities would be best suited for the Empty Nest Life Stage?

Consider moving to a smaller home, take less risk while investing as retirement nears, and try to pay cash for everything.

Which of the following activities would be best suited for those in the Dependent Life Stage?

Create a savings, spendings, and giving plan. Develop money management skills. Saving money for college.

Which of the following investing methods can be utilized with an automatic investment plan?

Dollar-cost averaging

Financial ____________ is the ability to understand how money is earned, invested, spend, and to understand the risks and rewards of investments.

Literacy

A vision statement is related to your ________ goals

Long-term

When people first begin planning for retirement, saving for a child's college education, and planning the purchase of a vacation home, these are usually

Long-term goals

What is the typical time frame for an intermediate goal?

One to five years

Choose one of the following statements about SMART financial goals

Specifying your goals will help you know your goals, create a plan to achieve them, & measure so you can see if you achieve them.

Which of the following are examples of why one would chose a lifestyle of voluntary simplicity:

To increase time with family, live more environmentally friendly, Reduce Stress, To increase spiritually.

What should be included in your personal mission statement?

Your gifts, strengths, stakeholders, and passions

Wealthy families are creating ________ statements to reduce feud and pass on moral values of the family.

Mission

One of the best resources for learning about different careers is the?

Occupational Outlook Handbook

Financial Independence is when ___________ income exceeds expenditures.

Passive

Your money ________ represents the style and habits of money management you are most comfortable with.

Personality

A person that understands what they value will

Reduce inner conflict, and help in creating a financial plan.

Which of the following activities would be best suited for people in the Independence Life Stage?

Research college grant and scholarships, track spending, buy/sell at consignment shops

Which of the following activities would be best suited for young couples in the Early Family Life Stage?

Start children's college savings, initiate a retirement savings plan, open checking accounts

Which of the following activities would be best suited for those in the Retirement Life Stage?

Start withdrawing retirement savings, track spending, and start receiving social security.

What is an investor lacking in the SMART approach if their only goal is making more money for the rest of their life?

The investor is lacking a set time frame to meet.

When developing goal setting guidelines you should have a set _______ frame for the goals to be achieved.

Time

True or False: You should have a personal finance plan if you want to reach your financial goals.

True

Personal _____ are the ideas and principles that a person develops early in life and are influenced by family, religion, social groups, and culture

Values