FIN 101 EXAM 1 questions with correct answers

Personal Financial Planning the process of organizing and planning your income, expenses, and savings to accomplish significant long-term goals holistic approach to financial planning looks at every aspect of your life and considers what will work based on your lifestyle preliminary step of financial planning process financial assessment financial assessment what you own vs what you owe short term goal goal expected to be reached within a year saving, not inveseting cost of living generic phrase used to describe the general increase in the cost of goods and services mid-term goal will be accomplished within 1-3 years long term goal investing, such as retirement and college funds goal of investing long term, specific, and measurable realistic goals consumer price index (CPI) rate of inflation average rate of inflation in the US 3% TVM (Time Value of Money) addresses the concept that "a dollar today is better than a dollar tomorrow" due to inflation Compound