Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. 12 Chapter 1 Review and Assessment Summary LO 1-1 Define financial literacy. Financial literacy is having the ability to understand basic topics related to finance, such as making, spending, and saving money. LO 1-2 Summarize financial goals. A financial goal is a measurable objective related to acquiring or spending money. Financial goals can be short- term or long-term. A financial short-term goal is something you want to achieve in six months or less. A financial long-term goal is something you want to achieve in the future. LO 1-3 Discuss needs and wants. A need is something a person must have to survive. A want is something a person desires but is not necessary for survival. In many cases, wants are related to values. LO 1-4 Explain what it means to build wealth. Wealth is a plentiful supply of money or valuable goods. Someone who is wealthy has enough money to be financially secure. Review Your Knowledge Choose the correct answer for each of the following. _______ 1. What is fi nancial literacy? A. A set of goals for acquiring, saving, and spending money. B. The ability to understand basic topics related to finance, such as making, spending, and saving money. C. A plentiful supply of money or valuable goods. D. Having enough money for your basic needs and modest wants without work being a necessity. _______ 2. Having a _____ helps you be in control of your fi nancial situation and achieve your goals. A. priority B. net worth C. financial independence D. financial plan _______ 3. Planning to save enough money to go on a nice vacation is an example of a(n) _____. A. need B. investment C. financial goal D. wealth.