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