round your answers to the nearest two decimal places\nlearning target 4.1 budgets\n1. identify at least 3 of…

round your answers to the nearest two decimal places\nlearning target 4.1 budgets\n1. identify at least 3 of the 4 horsemen of personal finance.\n2. why do they call the lottery a “stupid tax”?\n3. list 1 method of budgeting that you plan to use.\n4. list a second method of budgeting that you plan to use
Answer
Brief Explanations:
- The four horsemen of personal finance are often considered to be debt, taxes, inflation, and market volatility. Debt can burden finances, taxes reduce income, inflation erodes purchasing - power, and market volatility affects investments.
- The lottery is called a "stupid tax" because the odds of winning are extremely low, and people often spend money on lottery tickets without a rational return - on - investment calculation. It's seen as an unwise use of money.
- One method of budgeting is the 50/30/20 rule. 50% of income goes to needs (housing, utilities, etc.), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment.
- Another method is zero - based budgeting, where every dollar of income is allocated to a specific expense or savings goal, starting from a zero balance.
Answer:
- Debt, taxes, inflation
- Because the odds of winning are very low and people spend money on it without rational calculation.
- 50/30/20 rule
- Zero - based budgeting