Question

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question 3 of 3
how is money divided using the 50-30-20 method?
○ needs, wants, savings
○ needs, stocks, bonds
○ savings, expenses, emergencies
○ wants, needs, retirement

Explanation:

The 50-30-20 budgeting method allocates after-tax income into three core categories: 50% to essential needs (housing, food, utilities), 30% to non-essential wants (travel, entertainment), and 20% to savings/debt repayment. The other options incorrectly frame the categories with specific investment or narrow expense terms that do not match the method's structure.

Answer:

A. Needs, wants, savings