Question

quiz
question 3 of 6
how is money divided using the 50-30-20 method?
select a response.
○ needs, wants, savings
○ needs, stocks, bonds
○ savings, expenses, emergencies
○ wants, needs, retirement

Explanation:

The 50 - 30 - 20 method for budgeting divides after - tax income as follows: 50% for needs (essential expenses like rent, utilities), 30% for wants (non - essential like entertainment), and 20% for savings (including debt repayment and emergency funds). The option "Needs, wants, savings" aligns with this breakdown. Other options like "Needs, stocks, bonds" (stocks and bonds are investment types, not the main categories of the 50 - 30 - 20 method), "Savings, expenses, emergencies" (incorrect categorization), and "Wants, needs, retirement" (retirement is part of savings, not a separate main category) do not match the 50 - 30 - 20 method.

Answer:

A. Needs, wants, savings