4.1

Question 1

Benchmarks

Answer 1

Standard against which progress is measured

Question 2

Budget

Answer 2

A spending and saving plan based on expected income and expenses

Question 3

Cash inflow

Answer 3

Income from your job, investments, and other sources

Question 4

Cash outflows

Answer 4

Expenses or other items for which you must spend money

Question 5

Charitable giving

Answer 5

The act of donating money or time to a cause in which you believe

Question 6

Electronic records

Answer 6

Soft-copy format of your financial information stored in your computer

Question 7

Encryption

Answer 7

Process of converting data to a coded form

Question 8

Financial goals

Answer 8

Plans for how you will pay for your personal goals

Question 9

Financial plan

Answer 9

A plan listing personal and financial goals along with steps and a timeline for reaching them

Question 10

Financial planner

Answer 10

A professional consultant who provides financial advice for a fee or commission

Question 11

Financial resources

Answer 11

Money or other items of value that are used to acquire goods and services

Question 12

Fixed expenses

Answer 12

Costs that do not change each month

Question 13

Identity theft

Answer 13

The use of your personal information by someone else to commit fraud or other crimes

Question 14

Liabilities

Answer 14

Debts that you owe

Question 15

Needs

Answer 15

Things needed for survival, such as food, clothing, shelter, and medical care

Question 16

Net worth

Answer 16

The difference between your assets and your liabilities

Question 17

Opportunity cost

Answer 17

The value of your next best option—what you are giving up

Question 18

Personal goals

Answer 18

Things that you want to achieve in your life

Question 19

Phishing

Answer 19

A scam in which an email is sent from someone posing as your bank or other legitimate business asking for personal information

Question 20

Timeline

Answer 20

A visual display of how long it will take to achieve each phase of a plan

Question 21

Tradeoff

Answer 21

Giving up one opinion in exchange for another

Question 22

Variable expenses

Answer 22

Costs that can go up and down each month

Question 23

Variances

Answer 23

The difference between planned amounts and actual amounts

Question 24

Assets

Answer 24

Money and items of value that you own