Question

Which is not a good financial decision? 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

Answer 1

The correct answer is Choice D.

Frequently spending more money than you earn is not a good financial decision. While choices A - C are good habits to have, choice D is not. By spending more money than you earn, you will not be able to save any money, and will probably be spending a lot of money on interest for credit cards and loans.