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 ______.

jobs Signup and view all the answers

A financial plan shows how to achieve financial ______.

goals Signup and view all the answers

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

service Signup and view all the answers

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

saving Signup and view all the answers

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

flexible Signup and view all the answers

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

long term Signup and view all the answers

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

year Signup and view all the answers

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

long Signup and view all the answers

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

budget Signup and view all the answers

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

financially Signup and view all the answers

A budget shows your total ______.

expenses 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.

debt Signup and view all the answers

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

insurance Signup and view all the answers

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

earn 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.

securities Signup and view all the answers

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

skills Signup and view all the answers

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

exposed Signup and view all the answers

Insurance enables people to share the cost of specific ______.

risks Signup and view all the answers

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

job 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 ______.

force 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.

growth Signup and view all the answers

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

people Signup and view all the answers

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

school 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 _____

labor force Signup and view all the answers

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

labor force Signup and view all the answers

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

construction Signup and view all the answers

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

labor Signup and view all the answers

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

agricultural Signup and view all the answers

An occupation refers to what one does to earn a _____

living Signup and view all the answers

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

farm Signup and view all the answers

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

blouses Signup and view all the answers

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

auto Signup and view all the answers

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

health-care Signup and view all the answers

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

declined Signup and view all the answers

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

future Signup and view all the answers

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

fire fighters Signup and view all the answers

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

foreign 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.