What is the primary purpose of financial planning?

To ensure comfortable living and bill payment during retirement To predict future market trends To eliminate all financial risks To guarantee a high income

What is the initial step in establishing a sound financial plan?

Investing in stocks Creating a budget Seeking financial advice Applying for loans

Why is creating an emergency fund important in financial planning?

To cover unexpected expenses like medical emergencies or car repairs To invest in high-risk, high-reward opportunities To ensure a consistent shopping budget To pay off existing debts quickly

What does investing in financial products like stocks and bonds aim to achieve?

To generate returns and grow wealth over time To avoid paying taxes To guarantee short-term profits To eliminate the need for a budget

Why is it beneficial to start retirement planning early?

To maximize the benefits of compound interest To retire early and travel the world To avoid government penalties To guarantee a high pension