Question

28.
Kenneth earns an allowance every week. He saves all of it, earning a small amount of interest in a bank. He doesn't have anything in mind for using the money. But he knows that one day he will have a plan for himself, and the money will be useful. Lately, he's been wanting to join his friends at concerts once a month, but he doesn't have any money. What is Kenneth not considering about financial planning? (Choose all that apply.)

A.
That he should plan for something specific to keep motivated to save

B.
That he should use the money in a way that his parents tell him to

C.
That he should save all of his money and not budget for desired activities

D.
That he can budget a certain amount of money for desired activitites to increase motivation for saving

Answer 1

A and D.

Explanation: Kenneth isn't setting a specific goal to stay motivated (A) and isn't considering budgeting part of his allowance for desired activities like concerts (D). B is irrelevant and C is the opposite of good advice — he is already doing that but it’s not a recommended planning approach.