Question

With the "Rule of Thirds" you divide your money into which of the following categories? A. Needs, wants, and savings B. Bills, food, and entertainment C. Small purchases, medium purchases, and large purchases D. Short-term savings, long-term savings, and small-item spending.

Answer 1

Answer:

I would say D

Explanation:

The rule of thirds is a very simple concept. It simply means that whenever your children get money (whether that’s an allowance, a gift, “pocket money,” or something they’ve earned), they split it into three portions.

The first portion is money they get to spend on anything they want, right now.

The second portion is money they can save for a few months towards a big purchase. Perhaps they want a bicycle or a game console.

The third portion is money they can save for a long time. Perhaps it’s money they might eventually use towards buying a house, getting married, or funding college.