Texas FFA Nursery Landscape Practice Exam

A financial plan for the future is called

1. Budget

2. Net worth statement

3. Cash analysis

4. Deed

The correct answer is: Budget

A budget is a detailed financial plan that outlines expected revenue and expenses over a certain period, helping individuals or organizations manage their finances effectively. It serves as a guide for spending and saving, allowing for better financial decision-making and resource allocation. By creating a budget, one can prioritize expenditures, track financial goals, and ensure that spending does not exceed income. This proactive approach is particularly important for planning future financial needs and goals. The other options do not define a financial plan for the future. A net worth statement provides a snapshot of an individual's financial position by listing assets and liabilities, but it does not set forward-looking financial goals. Cash analysis focuses on the actual cash flow within a business, and while it's important for financial health, it’s not necessarily a plan for future finances. A deed is a legal document that conveys ownership of property and is unrelated to personal financial planning.