FHCE Exam 3 2025 Questions and
Answers
More than ______________ teens are unable to make simple, everyday choices
about spending - --Answer --1 in 6
Only ____________ teens can solve complex financial tasks. - --Answer --1
in 10
______________ percent of US students do not even reach the baseline level of
financial proficiency - --Answer --17.8
Financial Literacy and Education Commission - --Answer --established
under the Fair and Accurate Credit Transactions Act of 2003
What was the Financial Literacy and Education Committee tasked to do? - --
Answer --develop a national financial education website and a national
strategy on financial education
What do FLEC plans help you do? - --Answer ---achieve your financial goals
-achieve financial independence
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,-invest intelligently
-minimize your payments to Uncle Sam (the government)
-cover your assets (insurance)
3 stages of financial planning - --Answer --1. the early years
2. the golden years (approaching retirement)
3. the retirement years
Stage 1 of financial planning - --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 - --Answer ---Realize immediate term goals
-Reevaluate the plan to match current goals
-Plan for retirement
-Ages 55 to 64
Stage 3 of financial planning - --Answer ---Reduce investment risk
-Concentrate on preservation rather than growth of assets
-Plan your will (transfer of estate
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,-Ages 65+
Personal Financial Planning Process - --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 - --Answer ---Evaluate your current
spending, income, and wealth
-Assess your whole financial picture
Step 2 of Personal Financial Planning - --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 - --Answer ---Develop a plan of action
Step 4 of Personal Financial Planning - --Answer ---Implement your plan
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, -Your plan is your road map
-Remain positive and stay on track after detours
Step 5 of Personal Financial Planning - --Answer ---Revise your plan
-Review your progress
-Be prepared to start over if your plan no longer meets your needs
Short term goals - --Answer --accomplished in a 1 year period
Intermediate term goals - --Answer --take 1 to 10 years to accomplish
Long-term goals - --Answer --take more than 10 years to achieve
Ways to achieve financial goals - --Answer ---Cut expenses
-Increase income
-Start saving
-Start investing
-Career choice?
Flexibility - --Answer --the ability for your plan to change as your situations
or goals change
Liquidity - --Answer --your ability to convert non cash assets into cash with
relative ease and speed
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
Answers
More than ______________ teens are unable to make simple, everyday choices
about spending - --Answer --1 in 6
Only ____________ teens can solve complex financial tasks. - --Answer --1
in 10
______________ percent of US students do not even reach the baseline level of
financial proficiency - --Answer --17.8
Financial Literacy and Education Commission - --Answer --established
under the Fair and Accurate Credit Transactions Act of 2003
What was the Financial Literacy and Education Committee tasked to do? - --
Answer --develop a national financial education website and a national
strategy on financial education
What do FLEC plans help you do? - --Answer ---achieve your financial goals
-achieve financial independence
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,-invest intelligently
-minimize your payments to Uncle Sam (the government)
-cover your assets (insurance)
3 stages of financial planning - --Answer --1. the early years
2. the golden years (approaching retirement)
3. the retirement years
Stage 1 of financial planning - --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 - --Answer ---Realize immediate term goals
-Reevaluate the plan to match current goals
-Plan for retirement
-Ages 55 to 64
Stage 3 of financial planning - --Answer ---Reduce investment risk
-Concentrate on preservation rather than growth of assets
-Plan your will (transfer of estate
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
,-Ages 65+
Personal Financial Planning Process - --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 - --Answer ---Evaluate your current
spending, income, and wealth
-Assess your whole financial picture
Step 2 of Personal Financial Planning - --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 - --Answer ---Develop a plan of action
Step 4 of Personal Financial Planning - --Answer ---Implement your plan
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
, -Your plan is your road map
-Remain positive and stay on track after detours
Step 5 of Personal Financial Planning - --Answer ---Revise your plan
-Review your progress
-Be prepared to start over if your plan no longer meets your needs
Short term goals - --Answer --accomplished in a 1 year period
Intermediate term goals - --Answer --take 1 to 10 years to accomplish
Long-term goals - --Answer --take more than 10 years to achieve
Ways to achieve financial goals - --Answer ---Cut expenses
-Increase income
-Start saving
-Start investing
-Career choice?
Flexibility - --Answer --the ability for your plan to change as your situations
or goals change
Liquidity - --Answer --your ability to convert non cash assets into cash with
relative ease and speed
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 4
