A budgeting method that allows an individual to spend 50 percent on needs, 30 percent on wants, and 20 percent on savings.
1. Cash
2. Community college
3. 50-30-20 method
4. Credit Score
A budgeting method that allows an individual to spend 50 percent on needs, 30 percent on wants, and 20 percent on savings
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The correct answer is 3. 50-30-20 method.
The 50-30-20 method is a budgeting strategy that divides your after-tax income into three categories: 50% for needs (essential expenses like housing and food), 30% for wants (non-essential items or experiences), and 20% for savings and debt repayment. This method helps individuals manage their finances effectively by providing a clear structure for how to allocate their money.