Question

1. what is the first foundation?

○ pay cash for college.
○ build wealth and give.
○ save a $500 emergency fund.
○ open a checking account.

1. using credit has not always been a socially accepted practice, but it has become ...

○ normal in american culture
○ a practice used by the wealthy
○ less acceptable
○ necessary for life in america

1. what does living paycheck to paycheck mean?

○ living paycheck to paycheck occurs when a person’s income is devoted to expenses, which means that little to no money is put in savings.
○ when a person chooses to not deposit their paycheck, they are living paycheck to paycheck.
○ living paycheck to paycheck is an expression used to describe a situation when someone eagerly awaits their next paycheck to plan for the month’s expenses.

Explanation:

Question 23

In the context of financial foundations (often from personal finance education), the first foundation is to save a $500 emergency fund. Paying cash for college is a later foundation, building wealth and giving is a later step, and opening a checking account is more of a basic banking step not the first foundation.

In American culture, the use of credit has become a normal practice over time. It's not just for the wealthy, it's more accepted (not less), and while common, it's not "necessary for life" as people can live without credit. So it's normal in American culture.

"Living paycheck to paycheck" means that a person's income is used up by expenses, leaving little to no money for savings. The option about not depositing a paycheck is incorrect, and the option about eagerly awaiting a paycheck to plan expenses misinterprets the term. The correct definition is about income going to expenses with little savings.

Answer:

C. Save a $500 emergency fund.

Question 24