Question

1. you are developing a savings plan and using short-, medium-, and long-term goals to motivate you. which represents possible goals from short-term to long-term? save for...

a new cell phone, dinner with friends this weekend, a new bike
retirement, college tuition, a vacation
retirement, a house down payment, college tuition
a new cell phone, college tuition, a house down payment
question 12 2 pts
experts recommend that you accumulate enough to cover 3 to 6 ______ of expenses in your emergency fund.
days
months
weeks
years

Explanation:

First Question (Savings Goals)

To determine the correct order of short - to long - term savings goals, we analyze the time horizon and cost of each goal:

• A new cell phone is a relatively short - term goal (can be saved for in a few months to a year).
• College tuition is a medium - to long - term goal (usually requires several years of saving, especially for higher education).
• A house down payment is a long - term goal (typically takes years to save a significant amount).
• Option 1: Dinner with friends this weekend is shorter - term than a new cell phone, so the order is wrong.
• Option 2: Retirement is the longest - term, college tuition is medium - long, and a vacation is short - term; the order is reversed.
• Option 3: Retirement is the longest, house down payment is long, college tuition is medium - long; the order is reversed.
• Option 4: A new cell phone (short - term), college tuition (medium - long), a house down payment (long - term) follows the short - to long - term order.

Financial experts recommend that an emergency fund should cover 3 to 6 months of expenses. This is because expenses like rent, utilities, and groceries occur monthly, and having 3 - 6 months' worth provides a buffer for unexpected events (job loss, medical emergencies) without relying on debt. Days, weeks are too short, and years are too long for an emergency fund.

Answer:

D. A new cell phone, college tuition, a house down payment

Second Question (Emergency Fund)