Which of the following is considered the most useful information for making personal finance decisions?

• A. A record of historical stock market averages from 50 years ago
• B. A detailed monthly budget showing income and expenses
• C. A collection of old receipts from previous years
• D. A list of all local bank branch locations

Answer: (B)

Verified step by step guidance

1. Understand the context of the question: The goal is to identify the most useful information for making personal finance decisions. Personal finance decisions typically involve managing income, expenses, savings, and investments effectively.
2. Evaluate each option provided: Consider how each piece of information contributes to making informed financial decisions. For example, historical stock market averages from 50 years ago may not be directly relevant to current financial planning.
3. Focus on the importance of a detailed monthly budget: A budget showing income and expenses is crucial for tracking financial inflows and outflows, identifying areas to save, and planning for future financial goals.
4. Compare the relevance of the other options: Old receipts and a list of local bank branch locations may have limited utility in making strategic financial decisions compared to a detailed budget.
5. Conclude that the detailed monthly budget is the most useful tool for personal finance decisions, as it provides actionable insights into current financial health and helps in planning effectively.