Chapter Based Questions: Setting Goals ? | Introduction to Financial Markets for Class 9 PDF Download

Q.1. Choose the correct answer.

(i) Goals can be defined as things we want to _________ in life
(a) Achieve
(b) Play
(c) Follow

Correct Answer is option (a)

(ii) Goals help us to be and work out a plan to achieve them
(a) Focussed
(b) lazy
(c) Active

Correct Answer is option (a)

(iii) Goals are to be supported by proper
(a) Guidance
(b) Plan
(c) Timing 

Correct Answer is option (b)

(iv) goals are always achieved
(a) Handsome
(b) Beautiful
(c) Smart

Correct Answer is option (c)

(v) Goals come from your
(a) Thoughts
(b) Values
(c) Idea

Correct Answer is option (b)

Q.2. Fill in the blanks.

(i) If a goal has to be achieved, it has to become part of our _____.
(ii) Goal should be_______ and not general

(iii) A goal statement should consist of _______key elements
(iv) When we figure out that our goals are becoming difficult, we must look at ________our goal statement
(v) Goals should be set as a __________ Statement

(i) Life
(ii) Specific
(iii) Five
(iv) revising/revisiting
(v) Goal

Q.3. Match the following.

(i) Specific - It should be within our means
(ii) Measurable - To be completed within time frame
(iii) Achievable - Should not be general
(iv) Realistic - We can tell when we have completed
(v) Time bound - Based on resources available to us

(i) Specific - Should not be general
(ii) Measurable - We can tell when we have achieved
(iii) Achievable - It should be within our means
(iv) Realistic - Based on resources available to us
(v) Time bound - To be completed within a time frame

Q.4. True or False.

(i) Short term Goals are dependent of Long term goals.
(ii) A statement “I will save Rs.2000/-“ is an good example of SMART goal.
(iii) Goals come from your values.
(iv) Goals have to be time bound.
(v) A goal statement consist of 3 key elements.

(i) False
(ii) False
(iii) True
(iv) True
(v) False

Q.5. Answer the following briefly

Ans: Goals are achieved by following a structured approach that includes setting SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) goals. The process involves:

• Specific: Clearly defining the goal. For example, saving a certain amount of money for a specific purpose.
• Measurable: Establishing criteria to track progress and know when the goal is achieved. For instance, saving a specific amount each month.
• Achievable: Setting a goal that is realistic and attainable given the available resources and constraints.
• Realistic: Ensuring the goal is practical and within the realm of possibility considering the resources and constraints.
• Time-bound: Setting a deadline for the goal to create a sense of urgency and focus efforts.

By breaking down long-term goals into smaller, manageable short-term goals, and continuously monitoring progress, individuals can stay motivated and make steady progress toward achieving their overall objectives.

2. Give a brief note on the "Realistic" aspect of a Goal.
The "Realistic" aspect of a goal ensures that the goal is practical and attainable within the available resources, time, and constraints. It involves:

• Assessing the feasibility of the goal considering the current situation and resources.
• Ensuring that the goal is not overly ambitious or impossible to achieve.
• Taking into account any potential challenges or obstacles that may arise and planning accordingly.
• For example, setting a goal to save Rs. 50,000 by saving Rs. 1,000 per month is realistic if the person can consistently save this amount without impacting their essential expenses.

A realistic goal aligns with one’s capabilities and circumstances, making it more likely to be achieved.

3. What are the conditions for goal setting?
The conditions for effective goal setting include:

• Specific: The goal should be clear and specific, avoiding any ambiguity. It should answer the questions of what, why, and how.

• Measurable: There should be clear criteria for measuring progress and determining when the goal has been achieved. This involves setting milestones or benchmarks.

• Achievable: The goal should be attainable and not overly ambitious. It should be within the individual’s ability to accomplish it, considering the available resources and constraints.

• Realistic: The goal should be practical and within the realm of possibility. It should be relevant and aligned with broader objectives or values.

• Time-bound: The goal should have a clear deadline or timeframe, creating a sense of urgency and helping to focus efforts.

4. What are the characteristics of SMART goals?

Ans: SMART goals are defined by five key characteristics that make them clear, actionable, and achievable. The acronym SMART stands for Specific, Measurable, Achievable, Realistic, and Time-bound. Here is a detailed explanation of each characteristic:

• Specific: The goal should be clear and specific, leaving no room for ambiguity. It should answer the questions of what, why, and how.
• Measurable: The goal should have clear criteria for measuring progress and determining when it has been achieved. This involves setting milestones or benchmarks.
• Achievable: The goal should be attainable and not overly ambitious. It should be within the individual's ability to accomplish, considering the available resources and constraints.
• Realistic: The goal should be practical and within the realm of possibility. It should be relevant to your life and aligned with your broader objectives or values.
• Time-bound: The goal should have a clear deadline or timeframe, which creates a sense of urgency and helps to focus efforts.

Q.6. Answer in detail

Ans: A goal statement should consist of five key elements to ensure that the goal is clear, actionable, and achievable. These elements can be remembered with the acronym SMART, which stands for Specific, Measurable, Achievable, Realistic, and Time-bound. Here’s a detailed explanation of each element:

1. Specific:
   • The goal should be clear and specific. It should answer the questions of what is to be accomplished, why it is important, and how it will be achieved.
   • Example: "I want to save Rs. 50,000 to buy a new vehicle."
2. Measurable:
   • The goal should have criteria for measuring progress and determining when it has been achieved. This includes setting milestones or benchmarks.
   • Example: "I will save Rs. 1,000 each month," which allows tracking of the progress towards the Rs. 50,000 goal.
3. Achievable:
   • The goal should be realistic and attainable, taking into account the resources and constraints. It should stretch abilities but remain possible.
   • Example: "I will save Rs. 1,000 per month," assuming this is a feasible amount based on your income and expenses.
4. Realistic:
   • The goal should be practical and within the realm of possibility. It should align with other relevant goals and the reality of your current situation.
   • Example: "I will save Rs. 1,000 per month from my pocket money," considering this amount is reasonable and can be consistently saved without impacting essential expenses.
5. Time-bound:
   • The goal should have a clear deadline or timeframe, which creates a sense of urgency and helps to focus efforts.
   • Example: "I will save Rs. 50,000 by the end of 2015," providing a specific timeframe for achieving the goal.

Example of a Financial Goal Setting:

A well-defined financial goal should incorporate all the elements of a SMART goal. Here’s a detailed example:

Financial Goal:

"I will save Rs. 50,000 to buy a new vehicle by the end of 2015 by saving Rs. 1,000 per month from my pocket money."

• Specific: The goal is to save Rs. 50,000 to purchase a new vehicle.
• Measurable: The progress is measured by saving Rs. 1,000 each month.
• Achievable: Assuming it is possible to save Rs. 1,000 per month given the person’s income and expenses.
• Realistic: The goal is practical and within the person’s capability considering their financial situation.
• Time-bound: The target date for achieving the goal is the end of 2015.

Steps for Achieving This Financial Goal:

1. Assess Income and Expenses:
   • Evaluate monthly income and expenses to ensure that Rs. 1,000 can be saved each month without impacting essential needs.
2. Create a Savings Plan:
   • Set up a dedicated savings account for the vehicle fund.
   • Automate monthly transfers of Rs. 1,000 from the primary account to the savings account.
3. Track Progress:
   • Monitor the savings account regularly to ensure that the monthly savings are on track.
   • Adjust the plan if there are any changes in income or unexpected expenses.
4. Cut Unnecessary Expenses:
   • Identify areas where spending can be reduced to ensure the monthly savings goal is met.
   • Prioritize needs over wants to increase savings if possible.
5. Stay Committed:
   • Remain focused on the goal by reminding yourself of the reason behind saving (buying the vehicle).
   • Celebrate small milestones to stay motivated.
6. Review and Adjust:
   • Periodically review the progress towards the goal.
   • Make adjustments if needed to stay on track to meet the target amount by the end of 2015.

By following these steps and ensuring the goal is SMART, the likelihood of successfully achieving the financial goal of saving Rs. 50,000 for a new vehicle by the end of 2015 is significantly increased.