LO 1-1: Evaluate your spending and saving habits and define what financial success means to you.
Define financial plan.
goal-based activity related to future income, spending, investment, protection, and giving
What determines your money personality?
the style and habits of money management you are most comfortable with
Describe voluntary simplicity.
a simplified lifestyle, reducing unvalued consumption to focus on other priorities
When is enough enough?
point at which increased spending has a diminishing rate of fulfillment
What are the similarities and differences of the 90-10 rule and 80-10-10 rule?
The 90-10 rule and 80-10-10 rule are similar in the fact that they both save some money but the 80-10-10 rule gives to the community and shows a value towards community.
LO 1-2: Develop a plan for achieving fiscally responsible, goal-based spending and saving.
What is passive income?
Money received from investments and savings
What are some strategies to help you reach financial independence sooner?
Reduce expenses and live more frugally and increase the amount of money going into savings and investments.
Define financial literacy.
ability to understand how money is earned, invested, and spent, and the risks and rewards of financial decisions
What are the benefits of dollar cost averaging?
You don’t have to worry about timing the market and buying low.
What is the purpose of a personal financial plan?
It provides a strategy to improve your financial situation. This also helps you to be in control of your finances and be proactive in making financial decisions.
Describe the various financial life stages.
The Dependent Life Stage is where you first learn about money management, typically through an allowance.
The Independent Life Stage is characterized by the beginning of financial responsibility.
The beginning of the Early Family Life Stage occurs when you start working full-time and truly live independently, outside of school and without assistance from parents.
At this point in life, your children have moved out of the house and you have reduced expenses.
This final stage occurs when you have retired from your career and reached financial independence.
LO 1-3: Align your financial plan with your personal goals.
What are the primary principles of a personal mission statement?
Reflect what you want to be known for and where you want to be, clarify priorities and keep yourself motivated, and reflect your strengths and passions.
What characterizes a SMART goal?
Breaking down a long term goal into steps that can be achieved.
LO 1-4: Explore the different career choices that fit your personal mission statement and established goals.
How does your career choice relate to your happiness?
The career choices that you make can directly influence happiness because if you enjoy your career then you are happy.
Where can you find information on career options?
You can find information on careers everywhere, but an example would be the US Bureau of Labor Statistics. Another example would internships and job shadowing.
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