18
QuizMultiple Choice

Case Study: Personal Financial Planning

Question 18 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

What is the most acceptable and easy way to revise a budget to allow for the purchase of a new couch?

Answer
A
Cancel renters' insurance.
B
Skip a car payment for a few months.
C
Advertise for a roommate to reduce rent.
D
Cook dinners at home instead of going out to eat.

Explanation

Changing a regular discretionary expense is a practical way to make room in the budget without taking on major risks. Cooking dinner at home instead of eating out can reduce spending and allow the savings to go toward the couch. Canceling renters’ insurance removes important protection, skipping a car payment can lead to fees and credit problems, and finding a roommate may be difficult and disruptive.

AI-written and checked against the verified answer.

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