Question

what is meant by the term financial planning?
a. long - term goals are reached over an extended period of time, so your current income does not affect them.
b. it is creating a road map of everything you do with your money.
c. it is hoping you will have enough money to pay all your bills on time.
d. if your income exceeds your expenses, you will be able to save money for the future.
please select the best answer from the choices provided
a
b
c
d

Explanation:

To determine the correct answer, we analyze each option:

• Option a: Long - term goals are affected by current income as current income contributes to savings and investments for long - term goals. So, this option is incorrect.
• Option b: Financial planning involves creating a detailed plan (a road map) of how one earns, spends, saves, invests, etc. (everything done with money). This matches the definition of financial planning.
• Option c: Financial planning is not just hoping to pay bills on time. It is a proactive and structured approach to money management. So, this option is incorrect.
• Option d: This statement describes the result of having a surplus of income over expenses, not the definition of financial planning.

Answer:

B. It is creating a road map of everything you do with your money.