Get summary, textual answers, solutions, notes, extras, MCQs, PDF of NBSE Class 9 Financial Literacy unit 3 What is Financial Planning? However, the educational materials should only be used for reference, and students are encouraged to make necessary changes.
Summary
The chapter explains financial planning in a simple manner. It highlights how money is essential in achieving personal goals, such as buying a cricket bat or going for a movie. Like petrol for a car, money drives activities. The chapter stresses the importance of planning. If you fail to plan, you plan to fail. It explains that financial planning involves setting goals, analysing information, creating a plan, implementing it, and finally, monitoring and modifying the plan as necessary.
The comparison of financial planning to playing a game helps make the concept clearer. Just like you plan to win a cricket or football game by considering your resources and abilities, financial planning requires you to look at your finances and goals. It’s an ongoing process that can change with circumstances.
The chapter also talks about the difference between needs and wants. Needs are the basics like food and shelter, while wants are additional things like going on a vacation. Wants may be fun, but needs take priority, especially for people with limited money.
SMART goals are introduced as a way to make financial goals clearer. SMART stands for Specific, Measurable, Attainable, Realistic, and Time-bound. For example, saving ₹2,500 per month for two years to buy a motorbike is a SMART goal.
The final steps are implementing the plan and staying focused on the goal. The chapter reminds the reader that the plan may need changes over time due to life’s unexpected events, but careful planning helps in achieving financial security.
Textual MCQs
1. People use some kind of a __________ to achieve their goal.
(a) plan
(b) commodity
(c) coin
Answer: (a) plan
2. The common factor which you need for any of your personal spending is __________.
(a) parents
(b) friends
(c) money
Answer: (c) money
3. Financial planning is __________.
(a) a static process
(b) an ongoing process
(c) a finished process
Answer: (b) an ongoing process
4. Financial planning distinguishes between needs and __________.
(a) money
(b) wants
(c) people
Answer: (b) wants
5. Which of the following is an essential or basics of life?
(a) needs
(b) wants
(c) gold
Answer: (a) needs
Extra/additional MCQs
1. What is essential for a family to manage household expenses?
A. Time
B. Money
C. Education
D. Planning
Answer: B. Money
15. Which is an example of a realistic goal?
A. Buying a motorbike tomorrow
B. Saving ₹2,500 per month for two years
C. Winning a lottery
D. Earning ₹1 million next week
Answer: B. Saving ₹2,500 per month for two years
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