Money Management Quiz

Why is money management considered a crucial skill?

• It allows for unlimited spending.

• It helps in becoming wealthy quickly.

• It eliminates the need for budgeting.

• It ensures financial stability and security.

What is the primary purpose of budgeting?

• To avoid using financial apps.

• To eliminate all forms of debt.

• To ensure enough money for needs and important things.

• To track only expenses.

What is a recommended amount for an emergency fund?

• 1 month of living expenses

• No specific amount is recommended

• 12 months of living expenses

• 3 to 6 months of living expenses

How can one benefit from investing?

• By starting early and leveraging compound interest

• By investing only in high-risk stocks

• By avoiding all forms of savings

• By spending all returns immediately

What is a key strategy for maintaining good credit?

• Maxing out credit cards regularly

• Ignoring credit scores

• Paying bills on time and monitoring credit reports

• Avoiding all forms of debt