Question 11
When planning multiple milestones (car, house, college), prioritizing limited savings matters. A common framework: secure short-term emergency savings first, then prioritize high-interest debt payoff, then save for near-term goals (down payment), and finally longer-term investing. Timing and risk tolerance can shift order. Small practical steps — automating transfers and keeping goals visible — help make progress. This question checks knowledge of sensible sequencing when money is limited and choices must be prioritized.
What’s a common first priority before saving for large milestones?
Did You Also Know...
By Wise Wallet
Roth IRAs are funded with after-tax dollars so qualified withdrawals are tax-free, while traditional IRAs offer tax-deferred contributions.