Question

Oona has a great job that pays her $110,000 per year. She'd love to stop renting an apartment and buy a house. She calculates that she'll need $40,000 for a downpayment, and she already has $20,000 in her savings account. What is a SMART financial goal that Oona might set for herself?
Question 1 options:

Save another $20,000.

Borrow $20,000 so she can put a downpayment on a house that's on the market right away.


Save $500 each month to help her save enough for a downpayment in less than two years.


Save money to buy a home.

Question 2 (1 point)
Jacqui is 18 years old and wants to be a doctor one day. When she enrolls in college, she gets a part-time job working 20 hours a week. What is a SMART financial goal that Jacqui might set for herself?
Question 2 options:

Save $50 each month to help her pay for medical school in four years.


Save $10,000 a month.


Save money to pay for medical school.


Save $100 to pay for a vacation after she graduates from medical school.

Answer 1

Question 1 — Best SMART choice:
- Save $500 each month to help her save enough for a downpayment in less than two years.
- Why: it’s specific (amount), measurable (monthly), relevant (for the downpayment), and time-bound. (Note: to actually reach $20,000 in under 2 years she’d need about $834/month — so she should adjust the monthly amount or the time frame.)

Question 2 — Best SMART choice:
- Save $50 each month to help her pay for medical school in four years.
- Why: it’s specific, measurable, achievable, relevant, and time-bound (four years). (Note: $50/month will only accumulate about $2,400 in four years, so she may need to increase the amount or find additional funding.)