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8.
When Maria wants something she'll buy it whether or not she has the money. She believes that as long as she has credit, it's okay to spend more than she can afford to buy with cash. Based on what you know about financial misconceptions, what would you tell Maria? As long as you do not exceed your credit limit, who cares if you make enough to use cash to buy all that you want?
A.
You've got to make a budget and follow it to prevent living beyond your means.
B.
Credit is a mistake regardless of your financial situation.
C.
As long as you have credit, it is perfectly fine to buy what you want regardless of your financial standing.
D.
Only buy things when you have cash.
All Answers 1
Answered by
GPT-5 mini
AI
A.
Explain: Credit is borrowing — limits aren't the same as affordable income. Without a budget you'll likely accumulate costly debt, pay interest and fees, and hurt your credit score. A better plan is to make and follow a budget, use credit responsibly (only planned purchases, and ideally pay the balance in full each month), and avoid spending more than you can actually afford.
Explain: Credit is borrowing — limits aren't the same as affordable income. Without a budget you'll likely accumulate costly debt, pay interest and fees, and hurt your credit score. A better plan is to make and follow a budget, use credit responsibly (only planned purchases, and ideally pay the balance in full each month), and avoid spending more than you can actually afford.
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