©THEBRIGHTSTARS 2024
Personal Financial Planning Exam Questions
With Correct Answers
Main Goals of personal finance planning - answer✔- the process of managing your money to
achieve personal economic satisfaction
- Increase effectiveness in obtaining, using, and protecting financial resources
- Increase control of one's financial affairs
- Improve personal relationships
- Gain a sense of freedom from financial worries
What is a financial plan? - answer✔An action plan that identifies ways to achieve financial
goals
Time value of money - answer✔- Every financial decision involves giving up something to
obtain something else
Personal opportunity costs - answer✔Time
Health
Leisure
Steps in the planning process - answer✔o Determine current financial situation
o Develop your financial goals
o Identify alternative courses of action
o Evaluate alternatives
Consider: - answer✔• Life situation
• Personal values
• Economic factors
Asess: - answer✔- Risk
- Time value of money
, ©THEBRIGHTSTARS 2024
- Opportunity cost
Create and implement your ________ - answer✔financial action plan
_______ and revise the financial plan - answer✔Review
Short, intermediate, and long-term planning strategies - answer✔
Sources for financial planning - answer✔o Books
o Magazines
o Etc
Steps in career planning - answer✔o Asses and research personal goals, abilities and career
fields
o Research the employment market and identify specific employment opportunities
o Develop a resume and cover letter; apply for available positions
o Interview for available positions; asses your interview performance
o Evaluate financial and other factors of positions you are offered
o Plan and implement a program for career development
Tax deferred employee benefits - answer✔o Taxed at some future time
o IRA (tax deductible now, taxable later)
Calculate net worth - answer✔Assets - liabilities = Net worth
Define insolvent - answer✔o Can't pay bills
o Net worth negative
Gross salary: what's taken? - answer✔o Net salary = gross take-home pay
o Social Security
o Medicare
o Income Tax
Why do we have taxes? - answer✔For the government to use for government funded programs
What types of taxes are there? - answer✔o Property
o Income
o Estate
Personal Financial Planning Exam Questions
With Correct Answers
Main Goals of personal finance planning - answer✔- the process of managing your money to
achieve personal economic satisfaction
- Increase effectiveness in obtaining, using, and protecting financial resources
- Increase control of one's financial affairs
- Improve personal relationships
- Gain a sense of freedom from financial worries
What is a financial plan? - answer✔An action plan that identifies ways to achieve financial
goals
Time value of money - answer✔- Every financial decision involves giving up something to
obtain something else
Personal opportunity costs - answer✔Time
Health
Leisure
Steps in the planning process - answer✔o Determine current financial situation
o Develop your financial goals
o Identify alternative courses of action
o Evaluate alternatives
Consider: - answer✔• Life situation
• Personal values
• Economic factors
Asess: - answer✔- Risk
- Time value of money
, ©THEBRIGHTSTARS 2024
- Opportunity cost
Create and implement your ________ - answer✔financial action plan
_______ and revise the financial plan - answer✔Review
Short, intermediate, and long-term planning strategies - answer✔
Sources for financial planning - answer✔o Books
o Magazines
o Etc
Steps in career planning - answer✔o Asses and research personal goals, abilities and career
fields
o Research the employment market and identify specific employment opportunities
o Develop a resume and cover letter; apply for available positions
o Interview for available positions; asses your interview performance
o Evaluate financial and other factors of positions you are offered
o Plan and implement a program for career development
Tax deferred employee benefits - answer✔o Taxed at some future time
o IRA (tax deductible now, taxable later)
Calculate net worth - answer✔Assets - liabilities = Net worth
Define insolvent - answer✔o Can't pay bills
o Net worth negative
Gross salary: what's taken? - answer✔o Net salary = gross take-home pay
o Social Security
o Medicare
o Income Tax
Why do we have taxes? - answer✔For the government to use for government funded programs
What types of taxes are there? - answer✔o Property
o Income
o Estate
