Question

emma lives on a tight budget. she saves money and also makes choices when spending it. which statements describe emmas financial skills? select three options.

• emma is more prepared to meet her basic needs.
• emma is better prepared to avoid financial setbacks.
• emma is better able to avoid accumulating assets.
• emma is more prepared to face emergencies.
• emma is better able to avoid decision - making with her finances.

Explanation:

1. For "Emma is more prepared to meet her basic needs": Saving money and being careful with spending means she can allocate funds for basic needs like food, shelter, etc.
2. For "Emma is better prepared to avoid financial setbacks": Having savings and being prudent with spending helps build a financial buffer against unexpected expenses or income loss, reducing the chance of setbacks.
3. For "Emma is more prepared to face emergencies": Savings can be used to cover emergency costs (like medical bills, car repairs), so she is better equipped to handle such situations.

• "Emma is better able to avoid accumulating assets" is incorrect because saving and wise spending can help accumulate assets over time.
• "Emma is better able to avoid decision - making with her finances" is incorrect as managing a budget and spending wisely requires financial decision - making.

Answer:

A. Emma is more prepared to meet her basic needs.
B. Emma is better prepared to avoid financial setbacks.
D. Emma is more prepared to face emergencies.