1. You need to review your progress and reevaluate and revise your plan (Step 5) because

2. Financial planning is an ongoing process- As your financial situation and position in life change, the plan changes.

3. In 2008, the Bear Stearns Company collapsed could not be saved and was sold to JP Morgan Chase for $10 per share, a price far below its pre-crisis 52-week high of $133.20 per share- Prior to the collapse, many of the company's employees had all of their retirement money invested only in Bear Stearns common stock- This was a very risky financial strategy for just such a reason: What if the company dissolves? What financial principle from Chapter 1 did they need to understand better?

4. According to the Keown book, you might begin to think about estate planning during this stage of the financial life cycle.

5. Which basic step to personal financial planning should be considered when establishing your personal financial goals?

6. Which of the following is outlined in the text as reason(s) why many people do not have an adequate financial plan?

7. Being financially secure involves balancing what you earn with

8. It is important to take a close look at the 2008 economic downturn as a means to highlight how vulnerable American's finances are.

9. Financial planning might not help you earn more, but it can help you use the money you do earn to achieve your

10. Without recognizing ________ it is impossible to understand compound interest, which allows investments to grow over time.

11. Personal financial planning can help you to

12. The first steps in career planning are conducting a self-assessment and developing an understanding of what sort of lifestyle you wish to lead.

13. In the typical consumer's financial life cycle, one difference between stage 2 and stage 3 is that in stage 3 you will earn more than you spend, whereas in stage 2 you will spend more than you earn.

14. Once a sound financial plan is in place, there should be no need to ever change it.

15. In order for your financial plan to be realistic and attainable it needs to be based upon your

16. While each person's financial plan is different, some common factors guide all sound financial plans- Which of the following is one of the common factors?

17. Suppose that you are a 60-year-old business owner- What stage of the financial life cycle are you currently in?

18. Which of the following falls under the category of mind games, financial personality, and your money?

19. Probably the most important determinant of your future earnings will be

20. Which of the following typically occur(s) during stage 1 of the financial life cycle?

21. The concept of diversification is illustrated by the old saying

22. Annual public school tuition and fees are three times more expensive than private school tuition and fees.

23. Diversification allows you to reduce risk.

24. What elements are found in an effective financial plan?

25. Which of the following is one of the five basic steps in personal financial planning?