10 terms

# Financial Goals

#### Terms in this set (...)

Fran brings home \$225 per week working 15 hours of which she is able to save \$40. Fran wants to have \$1,400 saved at the end of 20 weeks. She may work up to 18 hours per week if she wants. She can save all of the money earned working the extra hours. Which of the following statements is true?
b) Fran must work at least 17 hours per week to meet her goal.
What is true about the way you should approach financial goals across different stages of your life?
d) As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time.
It is important to re-evaluate financial goals periodically. In which of the following situations would it be necessary to change an existing financial goal?
a) You fell sharply behind your expected schedule with regard to saving.
Drake wants to save \$750 so that he can take a class on computer analysis for cars. The class is being held on various dates over the next several months. Drake is planning to take the class 6 weeks from now, so he plans to save \$125 each week.
Unfortunately, Drake had to take out a little money from his savings in the 3rd week. After 4 weeks, Drake has \$470. He knows that he must adjust his plan in order to meet his goal. Drake came up with the following options:
Option A: Stay with saving the original amount each week but take the class a week later than originally planned.
Option B: Increase the amount of money he saves each week by \$15 from his original plan.
Which of the following is a true statement?
c) Both options A and B will allow him to meet his goal.
Sheila has a plan to save \$45 a month for 18 months so that she has \$810 to remodel her bathroom. After 13 months Sheila has saved \$510. If the most Sheila can possibly save is \$70 per month, which of the following statements is true?
c) Sheila must save \$60 per month to achieve her goal.
Two plans for reaching a goal are given below.
Plan A: Save \$450 over the next 8 weeks by working 9 hours per week at \$7.20 per hour.
Plan B: Save \$450 over the next 6 weeks by working 15 hours per week at \$6.50 per hour.
Which of the following is a true statement?
c) Both plans will work for achieving the goal.
Yvonne has a goal of buying a brand new home within a year. She's afraid that she will be unable to save the money that she needs for a down payment. Which of the following should not be part of Yvonne's plan for achieving her goal of buying a home?
b) Borrow the money for the down payment and pay it back later
Chuy wants to buy a new television. The television costs \$1,350. Chuy decides to save the same amount of money each week, for 27 weeks. After 8 weeks Chuy saved \$440. Which of the following conclusions can you make about Chuy's plan?
c) Chuy will save more than he needs and will meet his goal in less than 27 weeks.
Vicki works 19 hours per week. Her take home pay is \$17.30 per hour. If Vicki is able to save all of her earnings, how long will it take her to save at least \$4,000?
b) 13 weeks
To be able to go on the band trip, four band members each get a part-time job. Each person has 5 weeks in which to save his or her money. Analyze the four individual plans below and decide which of the four people will reach his or her goal of saving \$285?
Member A: Works 8 hours per week at \$6.15 per hour
Member B: Works 10 hours per week at \$5.85 per hour
Member C: Works 7 hours per week at \$7.25 per hour
Member D: Works 9 hours per week at \$6.35 per hour
d) B and D
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