↩ Previous Next module ↪ Module overview Setting and achieving financial goals overview Financial goals and their purpose Protecting your financial well-beingSetting your financial goals Using a budget to achieve goals Check your learning ❖ Program overview Program modules Introduction Budgeting Setting and achieving financial goals ❖Spending habits Responsible use of credit Program overview Select the correct answer for each of the questions below. 1. What you strive to achieve is informed by what is important to you. a. True b. False 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.Your financial goals are guided by your priorities or what is important to you. 2. Only those with a high level of financial risk need an emergency fund. a. True b. False 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. Congratulations! You chose the right answer.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. 3. Which component of a SMART reflects your priorities and what is important to you? a. Specific b. Measurable c. Achievable d. Relevant e. Time-Bound 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. Congratulations! You chose the right answer.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. 4. Which of the following goals would be most appropriate to break down into shorter-term financial goals? a. Contribute $1,000 over the next month to your children’s education fund. b. Save $5,000 over the next five years for your retirement. c. Put $200 into your emergency fund for any unanticipated/unexpected expenses. d. Learn more about strategies for saving over the next 6 months. 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. Congratulations! You chose the right answer.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. 5. You should always break down longer term goals into smaller shorter term goals. a. True b. False The correct answer is "a. True" 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. Congratulations! You chose the right answer.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. 6. Which of the following is part of setting up your emergency savings? a. Cover your fixed expenses and then allocate the rest of your income to your emergency savings. b. Transfer a small amount of your income to your emergency fund. c. Keep your savings in your chequing account. d. Contribute to your emergency savings on an annual basis. e. All of the above. 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. Congratulations! You chose the right answer.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. 7. Which of the following is true? a. Saving means taking a shorter term view on your life. b. All of your surplus income should be put aside for your future financial goals. c. During your insolvency, you should focus on ‘paying yourself first’. d. Saving is only possible if you have an annual salary. e. It's important to ensure your financial goals are achievable and fit into your budget. 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. Congratulations! You chose the right answer.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.