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What marks a cost out as a large expense worth planning for in advance?
AIt costs less than one week of take home pay
BIt costs more than one or two paychecks leave over
CIt is any expense paid by card rather than cash
DIt is any expense that repeats every single month
Answer & Solution
Correct answer: B. It costs more than one or two paychecks leave over
1. A large expense is defined against what a paycheck leaves spare, not against a fixed price tag.
2. If the item costs more than one or two paychecks leave over, it counts as a large expense.
3. That is why such items need saving toward rather than paying from a single pay period.
4. The method of payment does not decide the size of an expense.
5. Repeating every month describes a regular bill, which is planned as an ordinary line item.
_Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section Large Expenses_
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