Allison anticipates an additional car expense two months from now of $400 for new tires that she has not previously budgeted for. What action should Allison take?
A) Nothing; wait another month to consider the expense since she doesn't need the tires for another two months.
B) Plan to use her credit card to purchase the tires. Then she won't have to use her excess cash.
C) Revise her car expenses over the next two months to allow for the additional cost of the new tires.
D) Ask her parents for the money for the new tires.

Question

Quizplus · Accepted Answer

C is the correct choice because it involves proactive financial planning. By revising her car expenses to accommodate the upcoming cost, Allison can manage her budget effectively without resorting to debt or external assistance.

Allison Anticipates an Additional Car Expense Two Months from Now