Question

When Pei received a one-time inheritance from her grandmother, she considered including it in her budget as income. What is the

problem with taking that approach?
(1 point)
Including it would make her average income estimate less accurate.
The inheritance can be considered an investment for tax purposes.
The inheritance is not a fixed expense.
Adding the inheritance would make it less liquid.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Including the inheritance in her budget as income would make her average income estimate less accurate, as it is a one-time lump sum payment and not a regular source of income. This could skew her budgeting and financial planning decisions. It is important to distinguish between regular income sources and one-time windfalls to create a more realistic and accurate budget.