1. The text discusses the opportunity cost of time. According to the text, what two activities will households spend their time on?
2. Give two (2) reasons (according to the text) for why there was growth in personal financial planning after the 1970s in the United States.
3. In the theory of consumer choice, what goal do people have?
4. Explain why (or how) a discipline like psychology or sociology can be important to financial planning.
5. What is the first step in the financial planning process? What is the last step in the financial planning process?
6. In some ways, the household can be compared to a business enterprise. Identify two ways a household can be similar to a business and two ways a household will differ from a business enterprise.
7. Identify each of the following as either (Good) good financial goal or (Bad) bad financial goal. If it is a bad financial goal, indicate why it is not a good financial goal.
a.To retire in 10 years with $1,000,000 in funds.
b.To save for my child's college education.
c.To accumulate $5,000 for a trip to Europe.
d.To lose 30 pounds.