Personal Financial Worksheet

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Personal Financial Worksheet

1. The process of creating a detailed plan to meet your financial needs and prepare for the future is called: (a). Developing goals
(b). Personal financial planning
(c). Collecting financial information
(d). Personal finance
Answer: (b). Personal financial planning. "Personal financial planning is the process of developing and implementing an integrated, comprehensive plan designed to meet financial goals, to improve financial well being, and to prepare for financial emergencies." (Personal Finance: Chapter 1:Personal Financial Planning in Action Developing a Personal Financial Plan) 2. Which of the following is not one of the five major steps of the financial planning process? (a). Analyze your current finances

(b). Establish and implement your plan
(c). Collect and organize your financial information
(d.) Reevaluate and revise your plan as needed
Answer: (c). Collect and organize your financial information. The five major steps of the financial planning process are: 1.) Analyze your current finances. 2.) Develop goals. 3.) Identify and evaluate strategies to achieve your goals. 4.) Establish and implement your plan. 5.) Reevaluate and revise your plan as needed. 3. Which phase in life is commonly associated with focus on marriage, family, purchasing a home, and career development? (a). Teenage years

(b). Between your 50's and 60's
(c.) Late 20's through your 40's
(d). During retirement
Answer: (c). Late 20's through your 40's. This is the early part of the life cycle when it comes to personal financial planning. During the teenage years, one is usually debating whether to go to college or not. When one hit's their 20's through 40's, they establish their career, buy a home, and work on starting a family. One will have been building wealth and start looking toward retirement between 50's and 60's. One usually hits retirement at age 65. After...
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