Explain the idea of mental accounting. Group of answer choices   Mental accounting refers to the way we emotionally account for ups and downs of our lives.   Mental accounting refers to the interest rate we use when we calculate the present value of future mental assets.   Mental accounting is the way people keep track of their mental assets and liabilities.   Mental accounting is the notion of putting dollars in different mental categories where they take different values.

Choose the correct answer. 6. Determining one's current financial situations involves a. Determination of income, expenses, assets and liabilities b. Determination of possible creditors c. Determination of prospective investors d. Determination of past debtors 7. Which of the following is not among the risks that need to be evaluated in financial planning? a. inflation risk b. liquidity risk c. relationship risk d. health risk

How can understanding the difference between open credit and closed-end credit influence one's financial decision-making, and what factors should be considered when choosing between them?

Review the material in Chapter 1 on Personal Financial Planning. Define the financial planning process List the elements of a good financial plan. Identify and discuss the three most important personal factors and the three most important economic factors that affect your financial planning decisions.