Personal Finance · Level 5 of 5 · Capstone

Capstone: a full financial plan

Put goals, insurance, debt, saving, and investing in the right order.

Study notes

A common order: build a starter emergency fund, get any employer match, pay off high-interest debt, finish the emergency fund, then increase retirement and other goals.
Insurance protects the plan: health, auto, renters or homeowners, disability, and life insurance if others depend on your income.
Write goals with an amount and a date, such as $12,000 for a car in 24 months, which means $500 a month.
Inflation reduces purchasing power over time, so long-term goals need growth, not just cash.
Review your plan at least once a year and after big life changes like a new job, a move, marriage, or a child.

Quiz: 6 questions

Choose one answer for each question, then check your answers. Score 5 of 6 to pass. Then enter your name and email to download a PDF certificate and have a copy emailed to you. Answers are graded in your browser.

1. You need $12,000 in 24 months. How much should you save each month, ignoring interest?

$500 $1,200 $240 $600

2. Which debt is usually the priority to pay off fast?

High-interest credit card debt A 3% mortgage A 0% promotional plan paid on time None

3. Disability insurance protects:

Your income if you cannot work due to illness or injury Your car Your phone Your credit score

4. Why do long-term goals usually need investments, not only cash?

Inflation erodes cash purchasing power Cash is illegal Stocks never fall Banks close after 10 years

5. When should you review a financial plan?

At least yearly and after major life changes Never Only at retirement Every hour

6. A common first step before investing heavily is to:

Build a starter emergency fund Buy a boat Max out a credit card Cancel insurance

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