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- How can using personal financial planning tools help you improve your financial position? Please explain and give examples.1. Why is it important to know your financial position?2. What benefits would you get from knowing your financial position?3. How your inner assets would help you in achieving your future goals?Explain the idea of mental accounting. Group of answer choices Mental accounting refers to the way we emotionally account for ups and downs of our lives. Mental accounting refers to the interest rate we use when we calculate the present value of future mental assets. Mental accounting is the way people keep track of their mental assets and liabilities. Mental accounting is the notion of putting dollars in different mental categories where they take different values.
- What financial tools can help you make better financial decisions?Explain the term, "financial literacy", and its importance in your life and future.True or False. 1. Personal financial planning is the process of managing other people's money to achieve economic satisfaction. 2. Personal financial goals are monetary in nature. 3. In financial planning, risk involves monetary and non-monetary uncertainties. 4.
- How do you set smart financial goals you can actually achieve?Review the material in Chapter 1 on Personal Financial Planning. Define the financial planning process List the elements of a good financial plan. Identify and discuss the three most important personal factors and the three most important economic factors that affect your financial planning decisions.True or False 1. Another advantage of having a personal financial plan is effective debt management. 2. Personal financial planning also refers to household financial budgeting. 3. Interest rates measures the cost of money; the cost of credit when one borrows; the return on one's money when an individual invests.
- Examine the economic environments influence on personal financial planning.1. What is a financial plan? A. A document containing a person's current money situation and long-term monetary goals. B. A plan that reflects the individual's personal and family situations, risk tolerance, and future expectations. C. The plan starts with a calculation of the person's current net worth and cash flow and ends with a strategy. D. All of the aboveWhich of the following statements constitutes a definition of a financial plan? Group of answer choices Results that an individual wants to attain 2. A roadmap for achieving financial goals 3. Redefining your financial goals 4. Setting a goal date