5
QuizMultiple Choice

Financial Literacy — Test

Question 5 • Economics

When planning a budget, the biggest consideration should be the

Answer
A
the monthly transportation cost.
B
the total housing or rent payments.
C
the total income available to spend.
D
the monthly savings amount.

Explanation

A budget should start with the total income available to spend, because that sets the limit for all expenses and savings. Once you know your income, you can decide how much to allocate to housing, transportation, and savings. Housing may be a major expense, but it cannot be planned sensibly without knowing the available income first.

AI-written and checked against the verified answer.

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