which of these individuals is correctly making a money management decision based on her stage in life?\na 25…

which of these individuals is correctly making a money management decision based on her stage in life?\na 25 - year old with a job rents an apartment and decides to save money by not buying homeowners insurance.\na 50 - year old who plans to work for 25 more years decides to save money by not buying long - term care insurance.\na 40 - year old married person decides not to start saving for retirement.\na 30 - year old person who gets a promotion decides to increase the amount of money contributed to her retirement account.

which of these individuals is correctly making a money management decision based on her stage in life?\na 25 - year old with a job rents an apartment and decides to save money by not buying homeowners insurance.\na 50 - year old who plans to work for 25 more years decides to save money by not buying long - term care insurance.\na 40 - year old married person decides not to start saving for retirement.\na 30 - year old person who gets a promotion decides to increase the amount of money contributed to her retirement account.

Answer

Brief Explanations:

  1. A 25 - year - old renting an apartment and not buying homeowners insurance is normal as they don't own a home. But not buying insurance just to save money isn't a great long - term financial decision.
  2. A 50 - year - old planning to work for 25 more years may face health issues in the future. Skipping long - term care insurance to save money can be risky.
  3. A 30 - year - old not starting to save for retirement is a poor financial decision as compound interest benefits are lost.
  4. A 30 - year - old who gets a promotion and increases retirement contributions is making a good money management decision considering long - term financial security and the power of compounding.

Answer:

A 30 - year old person who gets a promotion decides to increase the amount of money contributed to her retirement account.