Financial Literacy - Chapter 3

Fixed expenses remain the same from time period to time period.

Savings accounts, scholarships, and jobs are all potential sources of

Which of the following is the best example of a long-term goal? 

Interest Nicole is charged on her credit card balance.

Financial goals that will take from one to five years to accomplish should be categorized as

Which of the following is most important to creating a successful financial plan?

Financial goals that you plan to accomplish within the next year should be categorized as

For individuals, cash inflows are referred to as income and cash outflows are referred to as liabilities.

Which of the following is the best example of a variable expense?

Monthly gym membership fee.

An individual's cash outflow.

Allowance Nicole receives from her parents.

Money spent on gas in one month.

A(n) ________ expense is an expense that changes from one time period to the next.

Evaluating your options can be a complex task because one financial decision can have a major impact on the whole plan.

After you begin implementing a financial plan, you should regularly monitor your progress toward your financial goals

A good strategy for reducing impulse purchases is to wait 30 days and then decide if you still want the item.

The tips Nicole makes waiting tables at a restaurant.

Money spent on a car loan payment in one month.

A psychological factor affecting spending that is typically used to create happiness is

A projection about what will happen in the future.

Money spent on clothing in one month.

Money spent on entertainment in one month.

Cash inflow refers to money received from income but not other sources.

After keeping track of his income and expenses for two months, Ellis made predictions about his monthly cash inflows

Which of the following is NOT a strategy for smart spending?

You know when fixed expenses will occur, but you may not know when variable expenses will occur.

Psychological factors can affect your spending habits.

An individual's cash inflow.

Before you can effectively make plans for your financial future, you need to

You should set high goals when setting intermediate and long-term financial goals, even if those goals are unrealistic.

Before setting a plan in motion, it is wise to identify and evaluate multiple plans for achieving those goals.

Risk is defined as the likelihood of

Before identifying and evaluating options, you should evaluate your current financial goals

The amount that Nicole spends on gas for her car each week.

Cash outflow refers to money that an individual spends.

A realistic forecast for cash outflows will include both fixed and variable expenses.

A(n) ________ is anything that an individual spends money on.

The likelihood of loss.

Which of the following statements about accomplishing financial goals is true?

The price of a ticket for a concert Nicole goes to.

Interest Nicole earns from her savings account.

The SMART method of setting goals does not recommend identifying a timeframe for completing specific goals.

Long-term goals are those that will take five or more years to accomplish.

Monthly rent.