Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
To pay yourself first means to _______.
Set aside money right away out of your paycheck. The idea is that your savings come first.
2.
You can find out where you are spending money needlessly by _______.
Tracking your spending for a while. The value of tracking your spending is that you become aware of every expense you make.
3.
An advantage of keeping money in a tax-deferred retirement plan is that you might pay lower taxes on the money when you eventually take it out. This is because _______.
You may be in a lower tax bracket in retirement. Most retirees take in less income in retirement, which typically puts them into a lower tax bracket. This is not a given for everyone, though.
4.
A good budget can sometimes allow a months expenses to exceed that months income.
True. A good budget is always balanced, even if some months expenses exceed income, as long as there are adequate inflows from past or future savings.
5.
In the language of retirement plans, the term "pre-tax" means that _______.
Money contributed to the plan is not to be taxed in the current year (until withdrawn). "Pre-tax" means that it is meant to not be taxed currently.