Unit 2 Study Guide: Economic and Personal Finance (EPF)

Front

What is a financial plan?

Back

A financial plan outlines how to manage income, expenses, savings, and investments to meet financial goals.

Front

How does educational attainment affect earning potential?

Back

Higher education levels generally lead to higher earning potential.

Front

How does career choice impact income?

Back

Career choice determines the type of job and salary, influencing income level.

Front

Name life choices that influence financial goals.

Back

Starting a family, buying a home, and lifestyle preferences.

Front

How can continuing education affect income?

Back

It can lead to promotions and higher salaries.

Front

Why is budgeting important in financial planning?

Back

Budgeting helps allocate income towards expenses and savings to meet financial goals.

Front

How do unexpected life events affect financial plans?

Back

They can reduce income or increase expenses, disrupting financial plans.

Front

What is the difference between short-term and long-term financial goals?

Back

Short-term goals address immediate needs; long-term goals focus on future security.

Front

How do lifestyle choices affect finances?

Back

They influence spending and saving habits.

Front

What is the financial impact of changing careers?

Back

Income may fluctuate, affecting financial stability.