4
QuizMultiple Choice

Budgeting — Quiz

Question 4 • Economics

In order to stay on track for long term financial goals, money for emergency spending should be taken first from your

Answer
A
fixed expense money.
B
discretionary money.
C
net income.
D
savings account.

Explanation

Emergency spending should come from money that is flexible rather than money set aside for essential bills or long-term savings. Discretionary money is available for nonessential spending, so using it first helps protect savings and fixed-expense funds. The correct choice is discretionary money.

AI-written and checked against the verified answer.

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