Kenneth, a college student, is addicted to playing video games, and buys new games every other week. He calls his dad asking him to increase his weekly allowance. His dad refuses and tells him to manage his expenses with the agreed upon amount he currently receives. Which of the following would best help Kenneth manage his finances?
A) Applying for a credit card
B) Buying his games on credit
C) Creating a budget
D) Applying for loans from banks

Question

Quizplus · Accepted Answer

Creating a budget will help Kenneth track his expenses and prioritize his spending. It will help him identify areas where he can cut back on spending, such as on video games, and allocate his funds towards more important expenses. Applying for a credit card or buying games on credit will only lead to debt, while applying for loans from banks may also lead to unnecessary debt and should only be considered in emergencies.

Kenneth, a College Student, Is Addicted to Playing Video Games