NCERT Solutions for What is Financial Planning provide step-by-step answers to textbook questions, helping learners understand the importance of budgeting, saving, and systematic spending.
What is Financial Planning Class 9 NCERT Solutions
I. Choose the correct answer.
Q. People use some kind of a _ to achieve their goal.
a) Plan
b) Commodity
c) Coin
Q. The common factor which you need for any of your personal spending is __.
a) Parents
b) Friends
c) Money
Q. Financial planning is __.
a) a static process
b) an ongoing process
c) a finished process
Q. Financial planning distinguishes between needs and __.
a) Money
b) Wants
c) People
Q. Which of the following is essential or basic to life?
a) Needs
b) Wants
c) Gold
II. Fill in the blanks.
Q. __ is the process of defining goals, developing a plan to achieve them, and putting the plan into action.
Q. _ and _ are the limited resources for doing anything we want.
Show Answer ⟶Q. Wants to increase the __ of life.
Show Answer ⟶Q. A goal is a __, something we want or need.
Show Answer ⟶Q. The process of evaluating information about oneself is known as __.
Show Answer ⟶III. Match the following.
- Goal – Increases the quality of life
- Needs – Basics of life
- Wants – Matching resources with goals
- Values – Direction to plan of action
- Creating a plan – Telling the truth
Correct Order:
- Goal – Increases the quality of life
- Needs – Basics of life
- Wants – Matching resources with goals
- Values – Direction to plan of action
- Creating a plan – Telling the truth
IV. True or False
Q. Financial planning is the plan for handling all aspects of your money, including spending, saving, and investing.
Show Answer ⟶Q. Goals are based on one’s own values.
Show Answer ⟶Q. Setting goals is to be measurable.
Show Answer ⟶Q. After creating a financial plan, it should not be changed for any reason.
Show Answer ⟶Q. Short-term goals have a time frame of up to one year.
Show Answer ⟶V. Re-order the following activities according to their order of existence in financial planning.
- Analyse information.
- Monitor and modify the plan.
- Create a plan.
- Setting goals
- Implementing the plan
Correct Order:
- Analyse information.
- Setting goals
- Create a plan.
- Implementing the plan
- Monitor and modify the plan.
VI. Answer the following briefly.
Q. What is financial planning?
Answer: Financial planning is the process of defining goals, developing a plan to achieve them, and putting the plan into action. It is the blueprint for handling all aspects of your money, including spending, saving and investing.
Q. Differentiate between needs and wants.
Answer: Needs are essentials, the basics of life like food, clothing, a place to live, etc. Wants simply to increase the quality of living.
Q. Why do goals have to be realistic?
Answer: The goal set by you must be realistic. It means the goal set by you should have the possibility of doing it. If it is not possible to do a particular thing, all your effort will be in vain.
Q. Who benefits from financial planning?
Answer: Financial planning is useful to everyone. There are many instances of highly paid employees who came to financial grief merely because they did not plan for their post-career years. Similarly, even people earning small amounts of income should undertake this process, as it will help them in prioritising their goals so that their limited income can be used more efficiently. “Little drops of water make the mighty ocean.”
VII. Answer in detail.
Q. Describe the “SMART” way of defining goals.
Answer: The SMART method helps you set goals that are clear, achievable and meaningful. Each letter in SMART stands for a key quality your goal should have.
- S (Specific): Your goal should be clear and well defined.
- M (Measurable): You should be able to track your progress.
- A (Achievable): Your goal should be realistic and possible with the resources you have.
- R (Relevant): Your goal should be important and meaningful to you.
- T (Time-bound): Your goal should have a clear deadline.
Q. Describe with an illustration how to create a financial plan.
Answer: The helpful illustrations to guide students through the process of creating a financial plan for anyone building financial literacy are:
- Set Financial Goals: Decide what you want to achieve financially.
- Track Your Income: Know how much money you earn or receive.
- List of Expenses: Write down all your spending.
- Create a Budget: Plan how to spend and save your money.
- Save and Invest: Put money aside regularly; explore safe investment options.
- Review and Adjust: Check progress and make changes if needed.
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