FHCE Exam 3 UPDATED Exam Questions
and CORECT Answers
More than ______________ teens are unable to make simple, everyday choices about spending -
CORRECT ANSWER 1 in 6
Only ____________ teens can solve complex financial tasks. - CORRECT ANSWER 1 in 10
______________ percent of US students do not even reach the baseline level of financial
proficiency - CORRECT ANSWER 17.8
Financial Literacy and Education Commission - CORRECT ANSWER established under the
Fair and Accurate Credit Transactions Act of 2003
What was the Financial Literacy and Education Committee tasked to do? - CORRECT
ANSWER develop a national financial education website and a national strategy on financial
education
What do FLEC plans help you do? - CORRECT ANSWER -achieve your financial goals
-achieve financial independence
-invest intelligently
-minimize your payments to Uncle Sam (the government)
-cover your assets (insurance)
3 stages of financial planning - CORRECT ANSWER 1. the early years
2. the golden years (approaching retirement)
3. the retirement years
Stage 1 of financial planning - CORRECT ANSWER -Develop your savings plan
,-Set your initial goals of all lengths
-Establish your long-range investment strategy
-Through age 54
Stage 2 of financial planning - CORRECT ANSWER -Realize immediate term goals
-Reevaluate the plan to match current goals
-Plan for retirement
-Ages 55 to 64
Stage 3 of financial planning - CORRECT ANSWER -Reduce investment risk
-Concentrate on preservation rather than growth of assets
-Plan your will (transfer of estate
-Ages 65+
Personal Financial Planning Process - CORRECT ANSWER Step 1: Evaluate financial health
Step 2: Define your financial goals
Step 3: Develop a plan of action
Step 4: Implement your plan
Step 5: Review your progress, reevaluate, and revise your plan
Step 1 of Personal Financial Planning - CORRECT ANSWER -Evaluate your current
spending, income, and wealth
-Assess your whole financial picture
Step 2 of Personal Financial Planning - CORRECT ANSWER -Define financial goals
-Attach a cost to each goal
-Set a date for when the money is needed to accomplish the goal
-Goals are the CORNERSTONE of a financial plan
, -Goals entice you to keep the plan in effect and answer the WHY question
Step 3 of Personal Financial Planning - CORRECT ANSWER -Develop a plan of action
Step 4 of Personal Financial Planning - CORRECT ANSWER -Implement your plan
-Your plan is your road map
-Remain positive and stay on track after detours
Step 5 of Personal Financial Planning - CORRECT ANSWER -Revise your plan
-Review your progress
-Be prepared to start over if your plan no longer meets your needs
Short term goals - CORRECT ANSWER accomplished in a 1 year period
Intermediate term goals - CORRECT ANSWER take 1 to 10 years to accomplish
Long-term goals - CORRECT ANSWER take more than 10 years to achieve
Ways to achieve financial goals - CORRECT ANSWER -Cut expenses
-Increase income
-Start saving
-Start investing
-Career choice?
Flexibility - CORRECT ANSWER the ability for your plan to change as your situations or
goals change
and CORECT Answers
More than ______________ teens are unable to make simple, everyday choices about spending -
CORRECT ANSWER 1 in 6
Only ____________ teens can solve complex financial tasks. - CORRECT ANSWER 1 in 10
______________ percent of US students do not even reach the baseline level of financial
proficiency - CORRECT ANSWER 17.8
Financial Literacy and Education Commission - CORRECT ANSWER established under the
Fair and Accurate Credit Transactions Act of 2003
What was the Financial Literacy and Education Committee tasked to do? - CORRECT
ANSWER develop a national financial education website and a national strategy on financial
education
What do FLEC plans help you do? - CORRECT ANSWER -achieve your financial goals
-achieve financial independence
-invest intelligently
-minimize your payments to Uncle Sam (the government)
-cover your assets (insurance)
3 stages of financial planning - CORRECT ANSWER 1. the early years
2. the golden years (approaching retirement)
3. the retirement years
Stage 1 of financial planning - CORRECT ANSWER -Develop your savings plan
,-Set your initial goals of all lengths
-Establish your long-range investment strategy
-Through age 54
Stage 2 of financial planning - CORRECT ANSWER -Realize immediate term goals
-Reevaluate the plan to match current goals
-Plan for retirement
-Ages 55 to 64
Stage 3 of financial planning - CORRECT ANSWER -Reduce investment risk
-Concentrate on preservation rather than growth of assets
-Plan your will (transfer of estate
-Ages 65+
Personal Financial Planning Process - CORRECT ANSWER Step 1: Evaluate financial health
Step 2: Define your financial goals
Step 3: Develop a plan of action
Step 4: Implement your plan
Step 5: Review your progress, reevaluate, and revise your plan
Step 1 of Personal Financial Planning - CORRECT ANSWER -Evaluate your current
spending, income, and wealth
-Assess your whole financial picture
Step 2 of Personal Financial Planning - CORRECT ANSWER -Define financial goals
-Attach a cost to each goal
-Set a date for when the money is needed to accomplish the goal
-Goals are the CORNERSTONE of a financial plan
, -Goals entice you to keep the plan in effect and answer the WHY question
Step 3 of Personal Financial Planning - CORRECT ANSWER -Develop a plan of action
Step 4 of Personal Financial Planning - CORRECT ANSWER -Implement your plan
-Your plan is your road map
-Remain positive and stay on track after detours
Step 5 of Personal Financial Planning - CORRECT ANSWER -Revise your plan
-Review your progress
-Be prepared to start over if your plan no longer meets your needs
Short term goals - CORRECT ANSWER accomplished in a 1 year period
Intermediate term goals - CORRECT ANSWER take 1 to 10 years to accomplish
Long-term goals - CORRECT ANSWER take more than 10 years to achieve
Ways to achieve financial goals - CORRECT ANSWER -Cut expenses
-Increase income
-Start saving
-Start investing
-Career choice?
Flexibility - CORRECT ANSWER the ability for your plan to change as your situations or
goals change
