Financial Tools Quiz Question 1
When you set financial goals and develop a plan to reach your goals, you've taken a step toward financial security. Financial security is knowing you have enough money to achieve goals, such as buying a car, and still have money to pay for unexpected expenses, such as when your car breaks down and needs to be fixed. You can achieve this security by following four simple steps:
- Assess Needs.
Decide what you really need (lunch money, bus fare to and from school/work and school supplies) and what you want (CDs, magazines, movies and snack food).
- Set Goals.
Your long and short-term goals become very specific financial results you want to work toward. Be sure to really understand your own values and what is important to you as you develop your goals.
- Develop A Plan.
A financial plan will help you achieve your goals. This plan should be created based on your income and present life situation, and should include a list of specific goals that you want to achieve.
- Take Action.
Once you have those actions in mind, decide the order of importance for those actions and then take the first step toward achieving them (for instance, asking your parents to help you set up a savings account).