ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Knowledge
|
|
|
Behavior
|
|
|
Consumer
|
|
|
The Five Foundations
|
Detailed explanation-1: -The basic truth is that we can do five things with our money: (1) save it; (2) spend it; (3) give it away; (4) pay taxes; and (5) pay down debt.
Detailed explanation-2: -Owe it (taxes, debt) Grow it (investments, savings) Live with it (monthly expenses) Give with it (causes and charities)
Detailed explanation-3: -Wealth can cloud moral judgment Another study suggested that merely thinking about money could lead to unethical behavior. Researchers from Harvard and the University of Utah found that study participants were more likely to lie or behave immorally after being exposed to money-related words.
Detailed explanation-4: -Set S.M.A.R.T. financial goals. Schedule regular check-ins with your money. Track your spending. Use the 48-hour rule. Round up to save up.