In the typical consumer's financial life cycle,one difference between stage 2 and stage 3 is that in stage 3 you will earn more than you spend,whereas in stage 2 you will spend more than you earn.

Question

Quizplus · Accepted Answer

In the typical consumer's financial life cycle, stage 2 is the "credit" stage where the individual spends more than they earn and accumulates debt. Stage 3 is the "stability" stage where the individual's income increases and they are able to save more than they spend, leading to a positive net worth. Therefore, the statement is false as the earning and spending patterns are opposite in stages 2 and 3.

In the Typical Consumer's Financial Life Cycle,one Difference Between Stage