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Read the paragraph.

A little bit of planning can reap financial rewards. Consider Franco, who chooses to stash his allowance in a piggy bank until a need arises. Weeks later, Franco has money to spend on a meaningful item, unlike a hasty individual who splurges on candy. And study Lorena, the employee who refuses to spend a cent of her raise, opting to put the extra money in a high-interest account. Lorena resists the urge to spend extravagantly, and she is prepared when she is ready to buy a car or home. And of course, there is always the savvy investor who sees the potential in a new company and purchases inexpensive stock. When the company grows, so does the investor’s money.

Which activities support the central idea about financial planning? Check all that apply.

saving money in a piggy bank
making impulsive candy purchases
investing extra money to earn interest
spending lavishly as a personal reward
purchasing stock in a growing company

Respuesta :

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These activities support the central idea of financial planning:

  1. saving money in a piggy bank ( If a kid keeps money, then she/ she will be able to spend it on items she / he needs. The need may come in the future not at the moment the kid has her/ his pocket money).
  2. investing extra money to earn interest ( If a person has extra money from her/ his salary, this money can be saved and increased. The amount of money gets increased if this is put in a fixed-rate account at the bank. The higher the rate, the more money the investor gets).
  3. purchasing stock in a growing company ( Money can be used to buy some stocks from a company. If the company is not very big, the stocks will be unexpensive. The company uses that money and grows. The bigger the company gets, the higher the value of the stock gets).

These options are not right:

-making impulsive candy purchases ( Financial planning goes against impulses and against buying useless things).

-spending lavishly as a personal reward ( Same explanation as above).