AnswersOC27 Economics-2102310-Sem-MeadowsPrinciples of Financial Planning

Principles of Financial Planning Answers

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want✔ need

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4

What should Frankie consider before buying the car? Check all that apply.

A
what he will be giving up if he spends $800 on the car
B
the cost to maintain (oil, tires, gas, brakes) and insure the car
C
how many of his friends have cars
D
his short- and long-term financial goals
E
if an alternate mode of transportation, such as a bicycle or the bus, is sufficient for his needs
5

Now you will write an informative paragraph that will help Frankie to understand his financial options and formulate best practices for spending and saving. Before you do, you will create an outline with bullet points. This outline will help organize your ideas and help you to identify at least three economic strategies that Frankie should use when making his decision to purchase a new pair of shoes.

Answer:

Strategies to consider: 1.) Needs and wants -does he need new shoes? 2.) Opportunity cost - savings he loses if he buys new shoes - how long did he work to pay for those shoes? 3.) Short-term and long-term goals - need shoes now? - can plan to buy shoes in the future?

6

Which strategies are included in your outline? Check all that apply.

A
needs and wants
B
risk and return
C
budget
D
opportunity cost
9

What should Frankie consider before buying the car? Check all that apply.

A
what he will be giving up if he spends $800 on the car
B
the cost to maintain (oil, tires, gas, brakes) and insure the car
C
how many of his friends have cars
D
his short- and long-term financial goals
E
if an alternate mode of transportation, such as a bicycle or the bus, is sufficient for his needs
10

What did you mention in your response? Check all that apply.

A
determining needs and wants
B
evaluating opportunity cost
C
determining risk and return
D
setting and achieving goals

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