3
AssignmentMultiple Choice

Spending

Question 3 • Personal Finance - EL3403

Which is not a good financial decision?

Answer
A
building a savings account and taking out fewer and smaller loans in the future
B
making monthly payments on a loan on time
C
paying off a loan as soon as possible
D
frequently spending more money than is earned

Explanation

A good financial decision helps keep spending within your income and avoids unnecessary debt. Frequently spending more money than you earn can lead to growing debt and financial stress, so it is not a good decision. Building savings and making loan payments on time are responsible choices, and paying off a loan quickly can reduce interest costs.

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