The underlying goal of a household when making personal financial planning decisions is to:
A)Minimize expenditures
B)Minimize risk
C)Maximize cash inflows
D)Maximize leisure time
E)Maximize standard of living

Question

Quizplus · Accepted Answer

The ultimate goal of personal financial planning is to maximize the standard of living of the household. This includes ensuring that there is enough money for basic necessities, savings for future goals, and discretionary spending on things that bring joy and happiness to the household. While minimizing expenditures and risk and maximizing cash inflows are important considerations in financial planning, they are not the ultimate goal. Maximizing leisure time may be a personal goal, but it is not directly related to financial planning.

The Underlying Goal of a Household When Making Personal Financial