Final answer:
Having two credit cards, one for purchases and one for emergencies, is a recommended approach to managing credit. This helps establish spending limits and separates regular spending from emergency expenses. Managing credit responsibly involves paying bills on time and not relying solely on credit cards in case of emergencies.
Step-by-step explanation:
Having two credit cards, one for purchases and one for emergencies, is a recommended approach to managing credit. This allows you to separate your regular spending from emergency expenses and helps you establish a spending limit. By limiting the number of credit cards you have, you can minimize the risk of overspending and accumulating excessive debt.
Managing credit responsibly involves paying all your bills on time and not utilizing too much of the available credit. It is important to keep in mind that having more credit cards does not increase the amount of money you have access to or change the quantity of money in the economy.
Having a solid emergency fund is also crucial in financial planning as it provides a safety net in case of unexpected expenses. While credit cards can be helpful, they should not replace the importance of having savings to rely on in emergency situations.