EBU 1063 Smart Money Management Lecture 4: Spending and Saving Habits Quiz

What is the recommended percentage of take-home pay to be allocated to savings in the 50-20-30 budgeting rule?

According to the Securities Commission Malaysia survey, what did it reveal about Malaysian youths' financial literacy?

What is the main purpose of the 50-20-30 budgeting rule?

Which term is used to describe windfalls such as a raise, bonus, or tax refund?

What is the primary purpose of developing habits for spending less than you earn?

What is the significance of prioritizing 'I want' and 'I need' expenditures in a spending plan (budget)?

What percentage of Malaysian youths' income is being set aside for savings and investment?

Why do the lower-income segment feel financially stressed?

What are Malaysian youths more aware of, compared to capital market products?

What is the popular capital market product among Malaysian youths?

What percentage of pretax income should be saved for retirement according to the 50/15/5 spending rule?

What percentage of take-home pay should be allocated to essential expenses according to the 50/15/5 spending rule?

Which of the following is considered an essential expense according to the 50/15/5 spending rule?

What should be kept below 50% according to the 50/15/5 spending rule?

50-20-30 Budgeting Rule

Recommended allocation for savings is 20% of take-home pay.
Main purpose is to provide a simple framework for managing finances and ensuring a balance between needs, wants, and savings.

Financial Literacy of Malaysian Youths

Securities Commission Malaysia survey indicates Malaysian youths have low financial literacy.
Youths are more aware of financial products but lack understanding, particularly regarding capital market products.

Windfalls

Sudden financial gains like raises, bonuses, or tax refunds are referred to as windfalls.

Spending Habits

Developing habits to spend less than earned is aimed at promoting long-term financial health and stability.
Prioritizing 'I want' versus 'I need' aids in making informed financial decisions and prevents unnecessary spending.

Savings and Investment Trends

Malaysian youths are currently setting aside a minimal portion of income for savings and investment.
Approximately 50% of Malaysian youths express feelings of financial stress, primarily in the lower-income segment.

Capital Market Products

Despite being aware of various financial products, there is a notable lack of knowledge regarding specific capital market options.
Unit trusts are identified as the most popular capital market product among Malaysian youths.

50/15/5 Spending Rule

Suggested savings for retirement is 15% of pretax income.
Allocation for essential expenses should be a maximum of 50% of income.
Essential expenses encompass obligatory payments such as housing, utilities, and groceries.
Non-essential expenses and discretionary spending must be kept below 50% of total income to maintain financial discipline.

Test your knowledge of spending and saving habits with this quiz based on EBU 1063 Smart Money Management Lecture 4. Explore questions about developing habits for spending less than you earn, saving for the future, following a spending plan, and more.