Lesson 3.4
What is inflation?
What is purchasing power? How is it affected by inflation?
What is gross domestic product? Why is it a good idea to compare it over several years?
What is a budget? Why might you update it monthly?
Why is the first step (Estimate Income) in preparing a budget so important?
What are fixed expenses? How are they different from variable expenses?
Why is it important that a budget is balanced?
If your budget does not balance, what can you do to bring it into balance?
Why is a good record-keeping system important?
What is the purpose of a financial plan?
Explain one type of information or document that should be gath- ered as the first step in creating a financial plan.
What is the difference between short-term, intermediate, and long- term goals?
Your standard of living will increase if:
Inflation decreases the general level of prices for goods and services.
When GDP grows, there are generally more jobs available.
A budget shows how much money you earned last year.
Which of the following is a budget NOT needed for?
Which of the following is NOT an expense?
Manual records are usually kept on computers.
An advantage of electronic records is:
Math errors are eliminated due to formulas in spreadsheets.
Which of the following is a potential financial goal?
Personal goals are how you will pay for your financial goals.
Which of the following is NOT a financial document used to assess your finances?
Abdullah wants to begin planning his future finances. Should Abdullah create a personal budget? Explain why a budget would or would not be helpful for him.
Abdullah has decided to keep good records of his spending. Recommend whether Abdullah should use manual or electronic records.
Will saving SAR 100,000 in five years be enough for a down pay- ment? Explain the impact of inflation on Abdullah’s target?
