Financial Planning Basics
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Questions and Answers

A budget is a plan to help an individual understand how and where to use ______.

money

Financial goals involve both trade-offs and ______ costs.

opportunity

Families at all income levels spend about the same proportion of their income on ______ and luxuries.

necessities

The labor force is made up of all those people who currently have ______.

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

A financial plan shows how to achieve financial ______.

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

The percentage of workers in the labor force who are in ______ industries is increasing.

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

Understanding the importance of ______ and investing is vital for effective financial planning.

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

A budget should be ______ to adapt to changing financial circumstances.

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

Setting personal goals involves identifying what you would like to do in the ______ and short term.

<p>long term</p> Signup and view all the answers

Short-term goals are those that you would like to achieve in a ______ or less.

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

Goals that will take you more than a year to achieve are ______ term goals.

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

A ______ is a financial plan that summarizes income and expenditures over a period of time.

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

Creating a budget gives you an idea of where you stand ______.

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

A budget shows your total ______.

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

After creating a budget, you will know how much you can save or how much you will be going into ______ each month.

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

Investing wisely and buying necessary ______ are important components of managing financial goals.

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

To prepare a budget, one should write down every purchase and everything they ______ in a month.

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

Investing in financial vehicles such as savings bonds, mutual funds, and other ______ can make your money work for you.

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

Employers expect both a good education and some extra preparation in the form of job knowledge and ______.

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

Risk management involves identifying what risks you and your family are ______ to.

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

Insurance enables people to share the cost of specific ______.

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

You enter the job market when you take action to find a ______.

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

In 1960, the total population in the U.S. was 180 million people, with 75 million in the labor ______.

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

By 2022, the U.S. population increased to 318 million people, and the labor force had grown to 155 million, reflecting a ______ in the labor market.

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

The economy expanded, resulting in more available jobs for more _____

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

Many individuals between the ages of 16 and 24 are choosing to stay in _____

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

The labor force includes individuals 16 years old and older, but not all 16-year-olds immediately enter the _____

<p>labor force</p> Signup and view all the answers

In 1960, fewer than 40 percent of women 16 years and older were a part of the _____

<p>labor force</p> Signup and view all the answers

Women make up only about 10% of the workforce in certain occupations like the _____ industry.

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

An immigrant is someone who goes from one country to another, contributing to the _____ force.

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

Migrant workers typically engage in _____ jobs that are seasonal in nature.

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

An occupation refers to what one does to earn a _____

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

There are generally four types of occupations: white-collar workers, blue-collar workers, service occupations, and ______ occupations.

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

The term 'white-collar' originated when men wore white shirts and women wore white ______.

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

Blue-collar workers are employed in industries such as textile mills, steel plants, and ______.

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

With the aging population, there is a greater need for ______ workers, including doctors and nurses.

<p>health-care</p> Signup and view all the answers

The percentage of workers in blue-collar manufacturing jobs has ______ in recent decades.

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

Technological innovations are expected to cause more shifts in job opportunities in the ______.

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

Service occupations include government workers, hospital employees, and ______.

<p>fire fighters</p> Signup and view all the answers

There is a greater demand for white-collar workers to market, sell, and finance ______ products.

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

Study Notes

Financial Goals

  • Financial plans help you achieve financial goals.
  • Budgeting is a tool for maximizing income.
  • A budget should be flexible and take into account trade-offs and opportunity costs.

Short-Term and Long-Term Goals

  • Short-term goals are achieved within a year.
  • Long-term goals take longer than a year to achieve.
  • Goals change as people age.

Budgets

  • A budget is a financial plan that tracks income and expenses.
  • It helps you see where your money goes and how much you can save.
  • Tracking your income and expenses in a budget can help identify issues and areas for improvement.

Other Aspects of Financial Planning

  • Investing is important for making your money work for you.
  • Investing options include savings bonds, mutual funds, stocks, and securities.
  • Career choices require knowledge of job opportunities and skills valued by employers.
  • Effective risk management involves identifying and minimizing risks.
  • Buying insurance is essential for protecting against financial risks.

The Changing Labor Force

  • The labor force includes those actively working or seeking work.
  • The size of the labor force has increased due to population growth and economic expansion.
  • The age of workers is changing, with more people staying in school and more retirees.
  • Women's participation in the workforce has increased significantly.
  • The labor force features immigrants and migrant workers.
  • Laws regulate immigration and employment for non-citizens.

Types of Occupations

  • White-collar workers are professionals, technicians, managers, and salespeople.
  • Blue-collar workers work in manufacturing, construction, and transportation.
  • Service occupations include government, hospitality, and healthcare.
  • Farm occupations involve agriculture, farming, and farm management.

Changes in Occupations

  • White-collar and service occupations are growing.
  • Blue-collar manufacturing jobs are declining.
  • Farm occupations have decreased significantly.
  • Changes in occupations are influenced by global manufacturing, an aging population, and technological advancements.
  • The demand for healthcare workers has increased due to an aging population.
  • Technological advancements will continue to impact job opportunities.

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Description

This quiz covers the fundamentals of financial planning, including the importance of setting financial goals, creating and managing a budget, and understanding short-term versus long-term objectives. Explore various aspects of investing and risk management to develop a comprehensive financial strategy.

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