HW - Chapter 1 Section 1 CBC Personal Finance

Based on your current financial situation, develop and provide two S.M.A.R.T. financial goals that meet all goal setting guidelines. List the two goals below.

(Must include the following: Specific, Measurable, Attainable, Realistic, and Time-Bound)

John currently deposits $600 per month in a checking account as part of his plan to achieve his financial goal of accumulating $40,000 in five years. Develop three specific hypothetical alternative options that John may instead pursue as part of the third step of his financial planning process. List the three courses of action below:

Expand the current course of action Alter the current course of action Implement a new course of action

Sammy Walton is in the planning process of evaluating his possible courses of action as part of the fourth step of his financial planning process. What four possible sources might he utilize in researching any necessary financial information? List each source and provide an example of each below:

Financial Professionals Internet Web Sites The Media Financial Institutions

Jeffrey Gordon wants to purchase a new SUV. However, he decides to wait until next year in the hopes that the price of Ford Explorers will decrease. What type of financial risk may he face based on his decision to wait?

Inflation

Jorge Soros is in the process of developing his financial goals. However, he does not understand the difference between needs and wants. Provide two examples of needs and two examples of wants that may help Jorge understand the two concepts:

Needs: Things that people have to have to survive. Wants: Things that people desire.

Don Trump has the option of depositing $1,000,000 in a savings account or investing the same amount in the purchase of a new office building. However, he thinks that he may need the money for other purposes in six months. Which of the two options offers a lower liquidity risk? Explain your answer below:

Putting the money into a saving account has a lower liquidity risk.

Will Gates is beginning the process of creating his personal financial plan. He has calculated his total current savings and his monthly expenses. What two other pieces of financial information must he determine prior to developing any financial goals?

Total Current Debt and Monthly Income

Saving to buy a new speed boat would most likely be a(n) ___________ financial goal.

intermediate

Saving for retirement would most likely be a(n)______________ financial goal.

long-term