Unit 4 Budgeting

In financial planning, you crash and burn when you run out of money and can't pay your bills.

• True

• False

What a person considers to be important or beneficial is a _____.

• value

• goal

The things you want to accomplish are _____.

• goals

• values

What you give up when you make one choice instead of another is called ______.

• opportunity cost

• disadvantage

Personal Financial Planning is based around your financial goals and values.

• True

• False

The first step in personal financial planning is to

• Determine your current financial situation

• Develop your SMART goals

Smart goals are specific, measurable, attainable, relevant, and time-bound.

• True

• False

A plan for your income and expenses by category is called _____.

• a budget

• money management

Getting the most from your money requires good ______.

• money management

• goals

Requires a lot planning, time, and money (can take years to reach)

• long term goals

• short term goals