PFP 105 Exam 1 || with Precise Solutions.
Personal Finance correct answers the process of planning your spending, financing, and investing
to optimize your financial situation
Personal Financial Plan correct answers A plan that specifies your financial goals and describes
the spending, financing, and investing plans that are intended to achieve those goals
Components of a Financial Plan correct answers Budgeting and tax planning
Managing your liquidity
Financing your large purchases
Protecting your assets and income (insurance)
Investing your money
Planning your retirement and estate
Two different types of spending behavior correct answers - Focus on immediate satisfaction and
peer pressure
- Focus on the future
Developing the Financial Plan correct answers Step 1) Establish your financial goals
Step 2) Consider your current financial position
Step 3) Identify and Evaluate Alternative Plans That Could Achieve your Goals
Step 4) Select and implement the best plan for achieving your goals
Step 5) evaluate your financial Plan
Step 6) Reuse your financial Plan
Step 1: Establish your financial goals correct answers - Types of Financial Goals (car, home,
college, wealth charity)
- Set realistic goals (stronger likelihood of reaching goals)
- Timing of Goals (short term, intermediate, long term)
- SMART goals
Step 2: Consider your current financial position correct answers - How your future financial
position is tied to your education
- How your future financial position is tied to your career choice
Step 3: Identify and Evaluate Alternative Plans That Could Achieve Your Goals correct answers
- Plans could be conservative or aggressive
Step 5: Evaluate your financial plan correct answers - Keep plan in an accessible place and
monitor your progress
Step 6: Reuse your finance plan correct answers - Change plan as financial condition and
financial goals change
Certified Financial Planner correct answers CFP
Personal Finance correct answers the process of planning your spending, financing, and investing
to optimize your financial situation
Personal Financial Plan correct answers A plan that specifies your financial goals and describes
the spending, financing, and investing plans that are intended to achieve those goals
Components of a Financial Plan correct answers Budgeting and tax planning
Managing your liquidity
Financing your large purchases
Protecting your assets and income (insurance)
Investing your money
Planning your retirement and estate
Two different types of spending behavior correct answers - Focus on immediate satisfaction and
peer pressure
- Focus on the future
Developing the Financial Plan correct answers Step 1) Establish your financial goals
Step 2) Consider your current financial position
Step 3) Identify and Evaluate Alternative Plans That Could Achieve your Goals
Step 4) Select and implement the best plan for achieving your goals
Step 5) evaluate your financial Plan
Step 6) Reuse your financial Plan
Step 1: Establish your financial goals correct answers - Types of Financial Goals (car, home,
college, wealth charity)
- Set realistic goals (stronger likelihood of reaching goals)
- Timing of Goals (short term, intermediate, long term)
- SMART goals
Step 2: Consider your current financial position correct answers - How your future financial
position is tied to your education
- How your future financial position is tied to your career choice
Step 3: Identify and Evaluate Alternative Plans That Could Achieve Your Goals correct answers
- Plans could be conservative or aggressive
Step 5: Evaluate your financial plan correct answers - Keep plan in an accessible place and
monitor your progress
Step 6: Reuse your finance plan correct answers - Change plan as financial condition and
financial goals change
Certified Financial Planner correct answers CFP
