Personal Finance 1

The process of managing your money to achieve personal economic satisfaction:

• Financial wealth

• Financial planning

• Financial security

• Financial gaining

A financial plan is a:

• Wish list for holiday shopping

• List of financial desires

• Formalized report that summarizes current financial situation

• Semi-annual report of monthly purchases

Time frame for achieving goals is:

• One year, three years and five years succession

• Six months, one year and permanently goals for life

• Short, medium, and long plans for success

• Short-term goals, intermediate goals and long-term goals

For the Goal-Setting Guidelines What is the "SMART" Approach?

• Smart, maintainable, action-related, resilient, tempered

• Small, meaningful, artistic, realistic, time-based

• Specific, measurable, action-oriented, realistic, time-based

• Suprising, measurable, available, ready, talented

Time value of money: To compute the Time Value, one must understand the:

• Principal amount X interest X desired amount=

• Time X dollar amount X interest rate=

• Principal amount X annual interest rate X time period=

• Amount X time period=

Future Value of Money

• Amount that will be available at a later date

• All of the above

• Amount to which current savings will increase.

• The increased value of money from interest earned.

Future value equals:

• Original amount minus interest earned

• Future amount plus weekly deposits

• Future amount plus interest earned

• Original amount plus interest earned

What you give up when making decisions, is called?

• Time value of money

• Opportunity cost

• Money cost

• Time management

The current value of a future amount based on a certain interest rate and time period

• Present value of money

• Time value of money

• Current Value of money

• Future value of money

Amount accrued that will be available at a later date (later)

• Current value of money

• Future value of money

• Present value of money

• Time value of money