Principles of Financial Planning Answers

In American society, which of these is an example of a want?

Which of these is the best example of an asset?

There are four steps in solving one’s personal financial challenges:1. considering opportunity costs2. assessing risks and returns 3. setting short- and long-term goals4. assessing needs and wantsWhich of these is the correct order of these steps?

Amanda wants to buy a new car. What questions of financial responsibility should she ask herself before she makes the purchase? Select three options.

Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options.careful consideration of short-term goalsrecording the number of assets you currently owncreating a budget to consider future income and spendinglearning more about different kinds of accounts to manage moneylearning about opportunity cost

Personal finance skills have the most significant impact on an individual’s

What are the main purposes of a budget? Select three options.to record past income and spendingto take out a student loan from the bankto plan future income and spendingto apply for a mortgageto balance available resources and expenses

Planning to finance higher education helps people prepare for their financial future because it teaches them about

What is included in an individual’s personal assets? Select three options.

In personal finance, one makes decisions based on needs vs. wants. What is considered a need?

To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Select three options.What can go wrong?What are my friends buying?How will it affect my social status?What is the likely return?Is the risk worth the return?

Emma lives on a tight budget. She saves money and also makes intelligent choices when spending it. Which statements describe Emma’s financial skills? Select three options.

This chart shows Dan’s budget:

_____ are items such as utilities, rent, and food—items that one can’t do without.

Which results are more likely for someone without personal finance skills? Select three options.

What do financial planning skills ultimately enable an individual to do?