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1.
What financial planning tool helps you plan your spending?
Budget. A budget is a powerful tool that is usually part of any financial plan.
2.
Risk management is typically covered in a professional financial plan because _______.
Risk can destroy your wealth. That is why insurance is included in most financial planning.
3.
Which step of financial planning typically calls for creating financial statements?
Analyzing and evaluating your financial status. This is the stage where you draw up a picture of your financial status based upon data gathered previously.
4.
Once you have made a financial plan, _______.
You must review it and change it if necessary. Plans are not set in stone, and neither are they self-correcting; you must revise them over time.
5.
Which of the following is not one of the generally practiced steps in financial planning?
Spending your money. That is a step you do on your own, hopefully once your plan is safely in place.