FFM Exam Study Guide with Complete
Solutions 2025
adult life cycle - ANSWER The stages in the family situation and financial needs of an
adult.
bankruptcy - ANSWER A set of federal laws allowing you to either restructure your debts
or remove certain debts.
economics - ANSWER The study of how wealth is created and distributed.
financial plan - ANSWER A formalized report that summarizes your current financial
situation, analyzes your financial needs, and recommends future financial activities.
future value - ANSWER The amount to which current savings will increase based on a
certain interest rate and a certain time period; also referred to as compounding.
inflation - ANSWER A rise in the general level of prices.
opportunity cost - ANSWER What a person gives up by making a choice.
personal financial planning - ANSWER The process of managing your money to achieve
personal economic satisfaction.
present value - ANSWER The current value for a future amount based on a certain
interest rate and a certain time period; also referred to as discounting.
, time value of money - ANSWER Increase in an amount of money as a result of interest
earned.
values - ANSWER Ideas and principles that a person considers correct, desirable, and
important.
SMART Goals - ANSWER Specific
Measurable
Action-oriented
Realistic
Time-based
A Plan for Personal Finacial Planning - ANSWER Determine your current finacial position
Develop your finacial goals
Identify alternative courses of Action
Evaluate your alternatives
Create and Implement your finacial Action Plan
Review and Revise your plan
Rule of 72 - ANSWER Can be used to detemine how fast prices will double;
divide 72 by the current inflation / interest rate.
Short term goals - ANSWER gaols that are to be achieved within the next year or so
Intermediate Goals- - ANSWER tiem frame of 2-5 years
Solutions 2025
adult life cycle - ANSWER The stages in the family situation and financial needs of an
adult.
bankruptcy - ANSWER A set of federal laws allowing you to either restructure your debts
or remove certain debts.
economics - ANSWER The study of how wealth is created and distributed.
financial plan - ANSWER A formalized report that summarizes your current financial
situation, analyzes your financial needs, and recommends future financial activities.
future value - ANSWER The amount to which current savings will increase based on a
certain interest rate and a certain time period; also referred to as compounding.
inflation - ANSWER A rise in the general level of prices.
opportunity cost - ANSWER What a person gives up by making a choice.
personal financial planning - ANSWER The process of managing your money to achieve
personal economic satisfaction.
present value - ANSWER The current value for a future amount based on a certain
interest rate and a certain time period; also referred to as discounting.
, time value of money - ANSWER Increase in an amount of money as a result of interest
earned.
values - ANSWER Ideas and principles that a person considers correct, desirable, and
important.
SMART Goals - ANSWER Specific
Measurable
Action-oriented
Realistic
Time-based
A Plan for Personal Finacial Planning - ANSWER Determine your current finacial position
Develop your finacial goals
Identify alternative courses of Action
Evaluate your alternatives
Create and Implement your finacial Action Plan
Review and Revise your plan
Rule of 72 - ANSWER Can be used to detemine how fast prices will double;
divide 72 by the current inflation / interest rate.
Short term goals - ANSWER gaols that are to be achieved within the next year or so
Intermediate Goals- - ANSWER tiem frame of 2-5 years
