10
QuizMultiple Choice

Budget — Test

Question 10 • Financial Math

Which action would be a budgeting error?

Answer
A
allocating funds for debt repayment
B
tracking entertainment spending
C
forgetting to budget for an annual insurance payment
D
setting aside money for savings each month

Explanation

A sound budget accounts for expenses that come due only once or a few times a year, such as an annual insurance payment. Forgetting to plan for that bill can leave you short when it is due, making it a budgeting error. Allocating money for debt repayment, tracking entertainment spending, and saving monthly are all useful budgeting practices.

AI-written and checked against the verified answer.

Previous
Next