A Lifetime Financial Plan

Putting the whole course together.

12 problems · about 22 minutes · TEKS M.M.8.C

What this lesson teaches

The student sequences financial priorities and builds a long-term plan.

Order matters: essentials, employer match, emergency fund, high interest debt, then investing.
Net worth is what you own minus what you owe, and the trend matters most.
Spending less than you earn beats every optimisation in this course.

Straightforward practice. Get the method working first.

5 problems

Assets $60000 and debts $45000. Net worth in dollars?
Answer 15000
Why $15000.
Why clear high interest debt before investing?
Answer It is a guaranteed return equal to the interest rate.
Why No investment reliably beats a 24% guaranteed return.
Assets $40000, debts $15000. Net worth in dollars?
Answer 25000
Why Subtract.
Assets $8000, debts $30000. Net worth in dollars?
Answer -22000
Why Subtract.
Clearing a 24% card is equivalent to what guaranteed return, in percent?
Answer 24
Why The interest you stop paying.

The same ideas with more to keep track of.

3 problems

Which comes first? 1 claiming the employer match, 2 investing extra.
Answer 1
Why One doubles instantly.
Saving $500 a month for 24 months. Total in dollars?
Answer 12000
Why 500 × 24.
How often should a plan be reviewed, in times per year?
Answer 1
Why Annually is enough.

Mixed problems. Work out what kind of question it is before you start.

4 problems

Put the financial priorities in order.
Answer 1. Cover essential living costs. 2. Claim the full employer match. 3. Clear high interest debt. 4. Invest for the long term.
Why Rent comes before everything.
Assets $12000, debts $12000. Net worth in dollars?
Answer 0
Why They cancel.
The Net Worth: Assets $25000 and debts $18000. Net worth in dollars?
Answer 7000 dollars
Why $7000.
The Negative: Assets $5000 and debts $22000. Net worth in dollars?
Answer -17000 dollars
Why −$17000.