Which of the following is a feature of a good budget?
(1 point)
O money reserved for saving
• income that is less than its expenses
• high use of credit
• economic incentives
money reserved for saving
A feature of a good budget is money reserved for saving.
A feature of a good budget is money reserved for saving. To determine which option is correct, we can analyze the given choices.
Option 1: Money reserved for saving - This feature aligns with the principle of saving money and setting it aside for future needs and financial goals. It is considered a good budgeting practice to prioritize saving.
Option 2: Income that is less than its expenses - This scenario actually suggests a budget deficit, where expenses exceed income. It is generally not considered a feature of a good budget, as it can lead to financial difficulties and a lack of financial stability.
Option 3: High use of credit - Depending on the context, high usage of credit may indicate reliance on borrowing and potentially living beyond one's means. In general, relying heavily on credit is not considered a positive aspect of a good budget.
Option 4: Economic incentives - While economic incentives can play a role in budgeting decisions and financial planning, they are not typically considered a direct feature of a good budget.
Based on the analysis, the correct answer is option 1: Money reserved for saving, as it aligns with the principles of responsible financial management and building a secure financial future.