The correct answer is "a. True"
Your financial goals are guided by your priorities or what is important to you.
Congratulations! You chose the right answer.
The correct answer is "b. False"
Everyone has some level of financial risk and therefore everyone needs an emergency financial plan to deal with this risk. Setting financial goals can help you to protect your financial well-being against certain financial risk factors. It is impossible to eliminate all of your financial risk; however, there are strategies that can be used to avoid and minimize risk, and even help protect yourself from it.
The correct answer is "d. Relevant "
When setting a goal, consider why you want to reach the goal and make sure it aligns with what is important to you. This means ensuring that the goal is relevant to you. Please visit the setting your financial goals section to read about setting SMART financial goals.
The correct answer is "b. Save $5,000 over the next five years for your retirement."
The goal to save $5,000 over the next five years for your retirement is a very large long-term goal which should be broken down into many shorter-term goals of saving $1,000 every year for the next five years, or save $83.33 each month for the next five years.
A great way to reach longer-term goals is to break them down into shorter-term goals. Breaking up your longer-term goals into multiple shorter-term goals makes it easier for you to measure your progress.
The correct answer is "b. Transfer a small amount of your income to your emergency fund."
An emergency savings fund is a part of your income that you set aside in case of a financial problem. When setting up an emergency fund, keep the money in a separate savings account and ask your bank to automatically transfer a small amount of your monthly income to your emergency fund (savings account) each month. Please visit the emergency savings section to read about setting up an emergency savings.
The correct answer is "e. It is important to ensure your financial goals fit into your budget."
It is always important to make sure that you financial goals fit within your budget. It is important to ensure that you are covering your immediate needs (such as fixed expenses) before allocating money to your future financial goals within your budget. Please visit the using a budget to achieve goals page to read about fitting your financial goals into your budget.
You have now completed the setting and achieving financial goals module!
If you have questions, write them down and bring them to your in-person counselling session, along with a list of your personal financial goals.
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