Section 1: Introduction to Personal Finance

1: What is the purpose of setting financial goals?

To impress others with your wealth

To have a clear roadmap for your financial future

To compare yourself with others

To brag about your achievements

2: What does SMART stand for in the context of setting financial goals?

Super, Measurable, Achievable, Relevant, Time-bound

Specific, Measurable, Attainable, Relevant, Time-bound

Strategic, Measurable, Achievable, Realistic, Timeless

Specific, Meaningful, Achievable, Realistic, Timely

3: Which of the following is a SMART financial goal?

“I want to be a billionaire by next month.”

“I want to save $500 every month for a vacation in a year.”

“I want to win the lottery someday.”

“I want to spend all my income on shopping.”

4: Why is it important to make your financial goals specific?

So you can show off to your friends

So you can make them sound impressive

So you can easily track your progress and measure success

So you can keep your goals a secret

5: Which of these activities is a part of managing personal finances?

Spending money without tracking it

Investing all your money in a single stock

Creating a budget and tracking expenses

Borrowing money without a plan to repay

6: What is the benefit of setting achievable financial goals?

They are easily forgotten

They provide a sense of direction and motivation

They are impossible to reach

They can only be set by financial experts

7: Which of the following is NOT a component of managing personal finances?

Budgeting

Spending recklessly

Saving

Investing

8: What should you consider when setting a realistic financial goal?

Making the goal as grand as possible

Ignoring your current financial situation

Ensuring the goal is achievable based on your resources

Setting a goal with no specific time frame

9: Which of the following is an example of a short-term financial goal?

Buying a house in 10 years

Paying off student loans within 2 years

Becoming a millionaire in a month

Saving for retirement