FINANCIAL PLANNING - UNIT 2 TEST || WITH ERRORLESS
ANSWERS.
Life Span correct answers The time between birth and death
Nature of Financial Planning correct answers The development of a strategy to meet a person's
financial needs over the course of his or her lifetime; begins with creating a budget
Budget correct answers A plan for the use of money over time; based on goals, expenses, and
expected income; help us avoid financial problems
Spreadsheet correct answers A software program that formats data in columns and rows and can
perform calculations; help us calculate and analyze financial info
Budgets - Step 1 correct answers Establish Financial Goals
- short-term goals: less than a year long(summer trip)
- medium-term goals: between 1-3 years(laptop)
- long-term goals: 3yrs or more(college expenses)
Budgets - Step 2 correct answers Estimate and Total Your Income
;determine budget period depending on when you get most of your income
Income correct answers any form of money received
Budgets - Step 3 correct answers Estimate and Total Your Expenses
Expenses correct answers Cost of goods and services purchased; can be fixed or variable
, Fixed Expense correct answers A set about that must be paid each budget period
-rent
-mortgage
-insurance
-loan
Variable Expense correct answers A cost that changes both in the amount and time it must be
paid
-food
-clothing
-entertainment
Discretionary Expense correct answers An amount spent for an item that a person could do
without
-food(necessary=variable expense tho)
-dining out(not necessary=discretionary)
Budgeting for savings (fixed expense): PYF correct answers Pay Yourself First (PYF); personal
financial strategy that can help you save money
Budgeting for savings (fixed expense): Wealth correct answers An abundance of money and
other assets
Budgeting for savings (fixed expense): Emergency Fund correct answers An amount of money
that can be easily accessed in case of a job layoff, illness, or unexpected expense
Charity (an expense) correct answers an organization that aids those in need
Benefit of charitable giving correct answers Tax deduction if meets IRS standards
ANSWERS.
Life Span correct answers The time between birth and death
Nature of Financial Planning correct answers The development of a strategy to meet a person's
financial needs over the course of his or her lifetime; begins with creating a budget
Budget correct answers A plan for the use of money over time; based on goals, expenses, and
expected income; help us avoid financial problems
Spreadsheet correct answers A software program that formats data in columns and rows and can
perform calculations; help us calculate and analyze financial info
Budgets - Step 1 correct answers Establish Financial Goals
- short-term goals: less than a year long(summer trip)
- medium-term goals: between 1-3 years(laptop)
- long-term goals: 3yrs or more(college expenses)
Budgets - Step 2 correct answers Estimate and Total Your Income
;determine budget period depending on when you get most of your income
Income correct answers any form of money received
Budgets - Step 3 correct answers Estimate and Total Your Expenses
Expenses correct answers Cost of goods and services purchased; can be fixed or variable
, Fixed Expense correct answers A set about that must be paid each budget period
-rent
-mortgage
-insurance
-loan
Variable Expense correct answers A cost that changes both in the amount and time it must be
paid
-food
-clothing
-entertainment
Discretionary Expense correct answers An amount spent for an item that a person could do
without
-food(necessary=variable expense tho)
-dining out(not necessary=discretionary)
Budgeting for savings (fixed expense): PYF correct answers Pay Yourself First (PYF); personal
financial strategy that can help you save money
Budgeting for savings (fixed expense): Wealth correct answers An abundance of money and
other assets
Budgeting for savings (fixed expense): Emergency Fund correct answers An amount of money
that can be easily accessed in case of a job layoff, illness, or unexpected expense
Charity (an expense) correct answers an organization that aids those in need
Benefit of charitable giving correct answers Tax deduction if meets IRS standards
