Planning Beginner: Create a Financial Action Plan--Keep It Simple

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Choose wisely. There is only one correct answer to each question.

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A financial goal that you set might fail because it was _______.

Interrupted

Unrealistic

Not specific enough

Any of the above

Any of the above. These are all things that sabotage one's efforts. That's why clear goal-setting is needed.

"Monitoring" your financial plan means _______.

Setting reminders and checking in on it

Carrying out the steps in it

Writing down your financial goals

Setting reminders and checking in on it. This step exists to make sure you are on track.

There are professional financial planning sources that can help you write a financial action plan. Which of the following do they include?

Professional financial planners

Employee assistance programs

Your bank or credit union

All of the above

All of the above. You can find financial planners in many different capacities.

What is a financial action plan?

A plan that directs how you will manage your money in order to achieve your goals

A way to earn money and spend money

A plan for setting your life goals

A retirement plan

A plan that directs how you will manage your money in order to achieve your goals. Financial plans work best when they are in written form.

Which of the following goals is stated the most effectively for a financial plan?

I want to save enough money to buy a car.

I want to save $5000 to buy a car 24 months from now.

I want to save $5000 to buy a car.

I want to save enough money to buy a car 24 months from now.

I want to save $5000 to buy a car 24 months from now. This goal is stated most effectively, and can be measured. It might be even more effective if the make and model of the car were specified.