PERSONAL FINANCE
32 Questions
7 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

FINANCIAL ISSUES THAT CAN AFFECT AN INDIVIDUAL.

PERSONAL FINANCE

PROCESS OF PLANNING EVERY ASPECT OF YOUR PERSONAL FINANCES,

PERSONAL FINANCE PLANNING

LEGAL PROCESS IN WHICH A COURT TAKES OVER SOME OF THE FINANCES OF A PERSON WHO IS UNABLE TO PAY HIS OR HER BILLS.

BANKRUPTCY

SOMETHING OWNED THAT CAN BE RAPIDLY CONVERTED TO CASH WITHOUT A RISK OF SIGNIFICANT LOSS.

<p>LIQUID ASSETS</p> Signup and view all the answers

COST OF PURSUING ONE OPTION INSTEAD OF ANOTHER EXPRESSED AS THE VALUE OF THE ACTIVITY YOU GAVE UP.

<p>OPPORTUNITY COST</p> Signup and view all the answers

INVOVLVE SPECIFYING FINANCIAL GOALS AND DESCRIBING IN DETAIL THE SPENDING FINANCING, AND INVESTING PLANS NEEDED TO REACH THOSE GOALS.

<p>PERSONAL FINANCIAL PLAN</p> Signup and view all the answers

PROCESS OF FORECASTING FUTURE EXPENSES AND INCOME

<p>BUDGETTING</p> Signup and view all the answers

ANYTHING OWNED, SUCH AS CARS, MOTORCYCLES, AND HOMES.

<p>ASSETS</p> Signup and view all the answers

DIFFERENCE BETWEEN ASSETS AND LIABILITIES.

<p>NET WORTH</p> Signup and view all the answers

WHAT WE OWE, OR OUR DEBT

<p>LIABILITIES</p> Signup and view all the answers

AMOUNT OF A SPECIFIC ASSET THAT WE OWN AFTER SUBTRACTING ANY LIABILITIES.

<p>EQUITY</p> Signup and view all the answers

MONEY COMING IN THROUGH WAGES EARNED, ALLOWANCE, OR OTHER SOURCES.

<p>INCOME</p> Signup and view all the answers

MONEY OWED TO GOVERNMENT ON EARNED INCOME.

<p>INCOME TAXES</p> Signup and view all the answers

THE MORE MONEY YOU MAKE, THE MORE INCOME TAXES YOU HAVE.

<p>IMPACT TO BUDGE AND IN GENERAL</p> Signup and view all the answers

HOW MUCH READILY AVAILBALE CASH YOU HAVE ON HAND FOR MEETING IMMEDIATE WANTS AND NEEDS.

<p>LIQUIDITY PLAN</p> Signup and view all the answers

INVOLVES MAKING DECISIONS ABOUT HOW MUCH CASH OR LIQUID ASSETS TO KEEP IN RESERVE AND HOW MUCH TO INVEST IN LIQUID ASSETS, SUCH AS REAL ESTATE (BUILDINGS/LAND)

<p>MONEY MANAGEMENT</p> Signup and view all the answers

INVOLVES MAKING DESICIONS ABOUT GETTING CREDIT AND USING CREDIT.

<p>CREDIT MANAGEMENT</p> Signup and view all the answers

"RENT" ON MONEY YOU BORROW

<p>INTEREST</p> Signup and view all the answers

INCLUDE THE SPECIFIC INFORMATION ABOUT THE INTEREST RATE, THE LENDER WILL CHARGE AND PERIOD OF PAYING BACK LOAN.

<p>PAYMENT TERMS</p> Signup and view all the answers

POSSIBILITY OF FINANCIAL LOSS

<p>RISK</p> Signup and view all the answers

MONEY RECEIVED FROM VARIOUS SOURCES

<p>CASH INFLOW</p> Signup and view all the answers

MONEY PAID OUT OR SPENT

<p>CASH OUTFLOW</p> Signup and view all the answers

THOSE YOU PLAN TO ACCOMPLISH WITHIN THE NEXT YEAR.

<p>SHORT-TERM GOALS</p> Signup and view all the answers

THOSE YOU AIM TO MEET WITHIN THE NEXT 1 TO 5 YEARS.

<p>INTERMEDIATE-TERM GOALS</p> Signup and view all the answers

WILL TAKE MORE THAN FIVE YEARS TO ACCOMPLISH.

<p>LONG-TERM GOALS</p> Signup and view all the answers

ANYTHING ON WHICH WE SPEND MONEY

<p>EXPENSE</p> Signup and view all the answers

EXPENSE THAT REMAIN THE SAME FROM PERIOD TO PERIOD

<p>FIXED EXPENSE</p> Signup and view all the answers

EXPENSES THAT MAY CHANGE FROM ONE PERIOD TO THE NEXT

<p>VARIABLE EXPENSE</p> Signup and view all the answers

COMPONENTS OF FINANCIAL PLAN

<ol> <li>BUDGETING AND TAXES</li> <li>LIQUIDITY MANAGEMENT</li> <li>PERSONAL FINANCING</li> <li>PROTECTING YOUR ASSETS AND INCOME</li> <li>PERSONAL INVESTING</li> <li>RETIREMENT AND ESTATE PLANNING</li> <li>COMMUNICATION AND RECORD KEEPING</li> </ol> Signup and view all the answers

FOUR STEPS FOR CREATING BUDGET

<ol> <li>DETERMINING YOUR NET WORTH</li> <li>ESTABLISHING YOUR INCOME</li> <li>IDENTIFYING YOUR EXPENSES</li> <li>CONSIDERING THE IMPACTS OF TAXES</li> </ol> Signup and view all the answers

CAN CATEGORIZE FINANCIAL GOALS IN TERMS:

<ol> <li>SHORT-TERM GOALS</li> <li>INTERMEDIATE-TERM GOALS</li> <li>LONG-TERM GOALS</li> </ol> Signup and view all the answers

STEPS OF FINANCIAL DECISION MAKING

<ol> <li>ESTABLISH YOUR FINANCIAL GOALS</li> <li>EVALUATE YOUR CURRENT FINANCIAL POSITION</li> <li>IDENTIFY AND EVALUATE OPTIONS FOR ACCOMPLISHING YOUR GOALS</li> <li>PICK THE BEST PLAN</li> <li>PERIODICALLY EVALUATE YOUR PLAN</li> <li>REVISE YOUR FINANCIAL PLAN AS NECESSARY</li> </ol> Signup and view all the answers

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser