What is the significance of the financial life cycle?
A)To help you to compare your situation with other people's situation
B)To better understand how your financial needs will most likely change over time
C)To allow you to be more proactive in dealing with expected changes in the future and take steps today to prepare for them
D)To help you realize that your original plan is sufficient and doesn't need to change
E)Both B and C are significant aspects of the financial life cycle.

Question

Quizplus · Accepted Answer

The financial life cycle is significant because it helps one anticipate the changing financial needs over time, and be proactive in preparing for them. By understanding the financial life cycle, one can make informed decisions and adjustments to their financial plan. Both options B and C provide an explanation of why the financial life cycle is significant. Option A is incorrect because the financial life cycle is not intended for comparison purposes. Option D is incorrect because financial plans should be reviewed and adjusted regularly to accommodate life changes.

What Is the Significance of the Financial Life Cycle