Question

Which results are more likely for someone without personal finance skills? Select three options.

a. larger long-term credit or loan costs
b. less preparation for emergencies
c. fewer utility expenses
d. simple long-term investment strategies
e. increased long-term challenges

Answer 1

A lack of personal finance skills can lead to larger credit or loan costs, less emergency preparation, and increased financial challenges over time. The correct options are (a),(b) and (e).

Step-by-step explanation:

The results that are more likely for someone without personal finance skills include larger long-term credit or loan costs, less preparation for emergencies, and increased long-term challenges.

Without a strong foundation in personal finance, individuals may end up paying more in interest and fees over time due to a lack of understanding of how credit works.

They may also lack the foresight and resources to set aside funds for unexpected expenses, leading to financial strain in emergency situations.

Furthermore, without the ability to manage and plan finances effectively, long-term financial challenges such as saving for retirement or investing wisely become more difficult.

The importance of financial literacy is reflected in the ability to make informed decisions and avoid pitfalls like high-interest loans and insufficient savings.