BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is the purpose of goal setting in the financial planning process?
A
To provide direction for planning and action
B
To clarify goal ranges
C
To differentiate between needs and wants
D
To facilitate decision making
Explanation: 

Detailed explanation-1: -Reaching goals and achieving personal ambitions are major objectives of the financial planning process. In order to make plans for the future, you need to know where you are today and where you want to be in the future.

Detailed explanation-2: -What is the purpose of goal setting in the financial planning process? To provide direction for planning and action. What is a significant aspect of decision making in financial planning? Every decision made today affects decisions made in the future.

Detailed explanation-3: -A financial goal is a target to aim for when managing your money. It can involve saving, spending, earning, or even investing. Creating a list of financial goals is vital to creating a budget. When you have a clear picture of what you’re aiming for, working towards your target is easy.

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