Principles of Financial Planning Answers

Amanda wants to buy a new car. What questions of financial responsibility should she ask herself before she makes the purchase? Select three options.

There are four steps in solving one’s personal financial challenges:1. considering opportunity costs2. assessing risks and returns 3. setting short- and long-term goals4. assessing needs and wantsWhich of these is the correct order of these steps?

Which results are more likely for someone without personal finance skills? Select three options.larger long-term credit or loan costsless preparation for emergenciesfewer utility expensessimple long-term investment strategiesincreased long-term challenges

Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options.

Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options.

How do long-term financial goals differ from short-term financial goals?

_____ are items such as utilities, rent, and food—items that one can’t do without.

Emma lives on a tight budget. She saves money and also makes intelligent choices when spending it. Which statements describe Emma’s financial skills? Select three options.