Section 1.2 Managing Your Personal Finances 21
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Ongoing evaluation can help you develop better ways of using resources to
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Checkpoint 1.2
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Build Your Vocabulary
As you progress through this course, develop a personal glossary of
personal finance terms and add it to your portfolio. This will help you build
your vocabulary and prepare you for a career. Write a definition for each of
the following terms and add it to your personal finance glossary.
cost-benefit analysis
marginal benefit
marginal cost
trade-off
opportunity cost
systematic decision-making
Process of Evaluation
Evaluating Plans Evaluating Actions Evaluating Results
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goals?
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stand in the way?
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are needed?
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resources
available?
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realistic, given
the obstacles
and resources?
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worth the effort
and resources
required to attain
them?
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toward the goals?
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to their best advantage?
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getting top priority
attention?
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improvement in the
original plans? What
adjustments can be
made?
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developments created
the need to change the
original plans? What
changes are needed?
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achieved?
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goals worth the effort
and resources used?
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satisfactory?
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contributed to
reaching or failing to
reach the goals?
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weaknesses in the
plans and actions?
What were the
strengths?
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be improved?
Goodheart-Willcox Publisher
Figure 1-3 Evaluation is an important part of effective management.