| A | B |
|---|
| financial planning | a process of setting goals, developing a plan to achieve them and putting the plan into action |
| Needs | things we must have to survive |
| Wants | things that make life interesting and fun |
| shortterm goals | Within three months |
| Intermediate Goals | Three months to a year |
| Longterm Goals | More than a year |
| SMART Goals | must be specific, measureable, attainable, realistic and time-limited |
| Decision Making Process | identify the goal, establish a criteria, weigh your options, make a decision & evaluate results |
| Financial Decision Making Process | – set goals, analyze the info, create a plan, implement the plan and monitor & modify the plan |
| Values | the beliefs and practices in your life that are very important to you. |
| Goal | something you aim for. |
| Cash Flow | measures the money you receive and the money you spend |
| Budget | a plan for managing your money during a given period of time. |
| Income | any money you receive |
