Faith and Lesedi both receive R25 000 from their mother. Faith uses the money to go on holiday. Lesedi puts the money into a fixed-deposit savings account to save towards buying a house. Who has made the smarter long-term financial choice?

Question

CHOOSE 1
Faith
Lesedi
Neither Faith nor Lesedi has made a smart long-term financial choice
Both Faith and Lesedi have made smart long-term financial choices

Answer 1

Lesedi

Lesedi has made the smarter long-term financial choice by putting the money into a fixed-deposit savings account to save towards a house. Investing the money can help it grow over time and contribute to a significant long-term goal, whereas spending it on a holiday provides short-term enjoyment but no financial return.