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Questions and Answers
Which of the following is NOT a key element of a financial plan?
Which of the following is NOT a key element of a financial plan?
- Establishing short-term and long-term financial goals
- Budgeting and allocating resources effectively
- Investing in high-risk, speculative assets (correct)
- Tracking income and expenditures
The 70-20-10 rule for budgeting suggests allocating:
The 70-20-10 rule for budgeting suggests allocating:
- 70% for fixed expenses, 20% for savings, 10% for variable expenses
- 70% for variable expenses, 20% for fixed expenses, 10% for investments
- 70% for fixed expenses, 20% for variable expenses, 10% for savings (correct)
- 70% for savings, 20% for fixed expenses, 10% for variable expenses
What is a key advantage of using digital tools for budgeting and tracking finances?
What is a key advantage of using digital tools for budgeting and tracking finances?
- Digital tools are more susceptible to data breaches and cyber threats
- Digital tools offer automatic updates and real-time data analysis (correct)
- Digital tools are less accurate than paper-based methods
- Digital tools require less effort and time to maintain
Which of the following is an example of a fixed budget category?
Which of the following is an example of a fixed budget category?
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Why is paying yourself first an important principle in effective budgeting?
Why is paying yourself first an important principle in effective budgeting?
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