Question

Carol is planning her personal finances. She has divided her plan into various short-term and long-term goals. Which action should be the least important in terms of priority for Carol?
generating an emergency fund for her family
generating children’s education fund
planning an exotic vacation
paying off credit card debt

Answer 1

The least important in terms of priority for Carol’s personal finances is planning an exotic vacation. Having an exotic vacation is just for pleasure and must be done if there is extra money from the budget. While, the children’s education fund and emergency fund is very important because these are considered to be a basic need for her family. Moreover, paying off credit card debt should also be given allocation for credit scoring is essential in terms of financial stability.