Welcome to your Financial Planning Terminology Questionnaire

This is a very simple questionnaire; rather than to work out a score, the purpose is to make sure you understand some of the fundamentals of financial planning.  This includes the terminology, some of the basic concepts and some relevant issues people face.  If you are financially experienced then this questionnaire probably isn't for you.

Personal factors that affect financial planning include all of the following EXCEPT:

Insurance is one option for limiting potential loss should an unexpected event happen

The income you currently make and have the potential to make may affect your financial plan

Unemployment indicates the economy is not being efficient

Financial experts recommend establishing an emergency _______ in case of an unexpected financial change)

Financial experts recommend having enough money in your emergency fund to cover ____________ of expenses

Net worth is measured as either _________ or ___________

A financial / investment _________ is a personal blueprint or road map

Wealth tends to decrease with educational level and is lower for homeowners and married couples

Net worth is equal to _________ minus __________

A financial plan works best if it is reviewed (at minimum) _________ and adjusted to reflect changing conditions and goals

A _________ statement is a comparison of what each of us owns and owes at a specific time

_________ -term goals are those that may not be reached for 5-10 or more years

_________ are short, medium or long-term goals that must be met

A(n) _________ is what each of us owes

The first key phase in the financial planning process is to identify _________

A(n) _________ is what each of us owns

Which of the following best describes a budget?

What is the purpose of a balance sheet?

What is an example of liabilities?

Which of the following is known as the total amount of money you expect to earn before taxes and deductions?

Which of the following is known as expenses that are not absolutely necessary?

How long is cheque valid for in the UK?

Why do you need to keep a record of donations to charity?

What are the two things consumers spend most of their money on?

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