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1.
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.
2.
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.
3.
To pay yourself first means to _______.
Set aside money right away out of your paycheck. The idea is that your savings come first.
4.
The key to successful financial planning is managing ones _______.
Cash flow. The key to a successful financial plan is managing ones cash flow.
5.
If you find it difficult to make a habit of diverting small amounts of money into savings, it may help most if you establish _______ first.
A goal. Having a goal gives you some direction for saving.