Personal Finance: Needs, Wants, and Goal Setting

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Questions and Answers

What type of goal focuses on the actions required to achieve an outcome?

  • Outcome goal
  • Process outcome goal
  • Performance goal
  • Process goal (correct)

What is the primary difference between a need and a want?

  • A need is essential, while a want is something you would like to have. (correct)
  • A need is a long-term desire, while a want is a short-term goal.
  • A need is based on personal standards, while a want is based on external references.
  • A need is something you can live without, while a want is essential.

What is the primary factor that can lead to an erroneous decision?

  • Personality traits
  • Lack of information (correct)
  • Lack of education
  • Poor time management

What is the definition of decision making?

<p>The process of choosing a valid option according to the problem presented (D)</p> Signup and view all the answers

What type of goal focuses on external references to measure success?

<p>Outcome goal (D)</p> Signup and view all the answers

What personality trait is commonly associated with good decision-makers?

<p>Consciousness (A)</p> Signup and view all the answers

What is the first step to determining your money values?

<p>Reflect on the money beliefs you grew up with (B)</p> Signup and view all the answers

What is the purpose of making a list of ways money impacts your life?

<p>To set financial goals (D)</p> Signup and view all the answers

Why is it important to revisit your money values over time?

<p>Because your values may shift as your life changes (D)</p> Signup and view all the answers

What is the relationship between personal values and money values?

<p>Money values are rooted in personal values (B)</p> Signup and view all the answers

What is the purpose of figuring out your priorities in finance?

<p>To focus on what matters most in your financial life (B)</p> Signup and view all the answers

What is the key distinction in understanding needs versus wants?

<p>Between essential expenses and discretionary spending (A)</p> Signup and view all the answers

What is a characteristic of good wellbeing?

<p>Presence of positive emotions and moods (B)</p> Signup and view all the answers

What is an indication of what people value?

<p>The things they spend their time and money on (A)</p> Signup and view all the answers

Where do people typically get their values from?

<p>Home, school, society, friends, TV, music, church, books, and culture (B)</p> Signup and view all the answers

How do values influence financial goals?

<p>They help in achieving financial goals (B)</p> Signup and view all the answers

What is a common form of investing?

<p>All of the above (D)</p> Signup and view all the answers

What can lead to unmanageable debts?

<p>Lack of financial knowledge (D)</p> Signup and view all the answers

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