Personal Financial Planning Worksheet Essay

Based on your readings and discussions in class this week, answer the following multiple choice questions. 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 The answer would be (B) Personal financial planning. 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. The answer would be ( C) Collect and organize your financial information. 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 50s and 60s c)Late 20s through your 40s c. During retirement The answer would be (c) 4. Which of the following is a benefit of having a college degree that can affect your financial planning? a. The potential to make a higher salary b. Jobs with retirement plans and benefits c. The ability to receive promotions and wage increases d. All of the above The answer would be (D) All of the above 5. Which of the following elements of a comprehensive financial plan involves analyzing future needs, such as saving for retirement or college funding for dependents? a. Building wealth b. Securing basic needs c. Establishing a firm foundation d. Protecting wealth and dependents The answer would be (a) Building wealth Directions Respond to the following short-answer questions in 50-to 100-words: 6. People have different styles when it comes to handling their money. List the two things that affect your personal beliefs and opinions about financial planning. How well do you feel you manage your money? Can you spot areas for improvement in your money management style, and if so, where/how? I feel lthat I don’t manage my money as well as I should . I find myself waisting money on things I don’t need.I defiently need to improve on making a list when going to the grocery store.I always write a list but never stick to it .I end up spending more money than I budget for. 7. Which element of the comprehensive financial plan focuses on your housing  needs, setting aside money for emergencies, and establishing a career path? Consider your own finances. Do currectly own a vehicle and/or home? If yes, how well do you manage monthly home and auto expenses? How well do you save for unforeseen expenses? I manage my home and auto expenses pretty well . I place these things high priority. With having kids things are pretty tight . I have a small rainey day savings. I try to save for things like this as much as possible , because my car and home is two things I need. 8. The economy is unpredictable and can affect your personal financial planning. List one factor in economic conditions that may affect your financial future. How could you reduce the impact of that factor on your finances? One factor in economic conditions that may affect my financial future would be Job employment and security. In a tough economy its hard to maintain a job and job security. To reduce the impact of job employment I will save and do whats needed to maintain my job. That is honestly the best plan for me in this economy. 9. Which step in the five-step financial planning process requires you to organize your financial information, create personal financial statements, and evaluate your current financial position? Have you ever completed this step? If so, is it still applicable to your current financial situation? If not, do you plan to do this soon? Why or why not? 10. Step Five in the five-step financial planning process discusses the importance of regularly reevaluating and revising your plan because personal circumstances often change. List two life changes that may require you to update your financial plan. Have you recently experienced a change that requires you to reevaluate your financial plan? If so, what was it and how have you accommodated it? (Please share only what you are comfortable sharing)