The Financial Plan (Chapter 2)

The first step in creating a budget is______________.

If you don't have enough money to cover your immediate needs, then you need more _______.

People without enough ___ often use ____ to cover immediate shortfalls, but this can be costly.

Wages earned and allowance are 2 types of ___________.

The purpose of a budget is to plan so that you can meet your_____________.

For most U.S. consumers, the biggest expense is _____________.

Anything we own that has value is called.

The process of forecasting future expenses is called_____________.

This involves specifying financial goals & describing them in detail.

If you still owe $2,000 on a vehicle this is considered a _______________

When should you start to save for retirement?

Which is NOT a step in creating a budget?

What is a personal financial plan like?

A good way to think about _______ is paying rent on borrowed money.

You can increase net worth by increasing your _______ & decreasing your ________.

Which of the following refers to the amount of an asset that a person owns?

This is anything we owe, or our debts.

Which of the following is a key component of risk management?

Net worth is determined by subtracting your liabilities from your __________.

In general the higher the risk of an investment the higher the potential ___________.

When you use ______, you are borrowing money.

Without insurance on a major purchase, the owner assumes all the __________.