FIN 281 Chapter 1 (Quiz)

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

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

Salespeople, Co-workers, Family, Friends

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 tot hem as possible, especially after he is gone. He is in the _______ stage of his financial life cycle.

Wealth Distribution

Yana has just completed her budget. Her take-home pay is $2,800 per month. Her monthly total household expenses are $1,560, her total debt payment is $930, and she spends $500 on food and entertainment and $225 on clothes. Her budget indicates a monthly:

budget deficit

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

To make sure your money is spent on your 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 on them and then ends up running out of money before his next paycheck. His biggest issue seems to be

impulse buying

Charissa is working full-time with a decent salary. She would like to save $12,000 to own her 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

Bertha owns a $3,400 car, $490 in clothes, and $1975 in electronic items and has $1,975 in her bank account. She has $7,200 in student loans and still owes $2,150 on her car. From this information we can conclude

she has a negative net worth