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Basics Beginner: Personal Finance Basics

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1.
You can find out where you are spending money needlessly by _______.
Choose wisely. There is only one correct answer.
Tracking your spending for a while. The value of tracking your spending is that you become aware of every expense you make.
2.
The stated goal "I want to create an emergency fund" is sufficiently specific to start working toward.
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False. It is not specific enough; there is no way to tell how much time or money should be put into it.
3.
To keep on track with your financial goals, you can measure them periodically.
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True. With a measurement system, you can adjust the way you are funding them.
4.
If you set a financial goal and it fails, what could be a reason why it failed?
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Any of the above. A goal could fail for any of these reasons.
5.
Diversification of your investments _______.
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Can reduce risk in the market. There is no cure for market risk; diversification can reduce risk, however, though it is not guaranteed to.