Which of the following are two questions that smart spenders typically ask before making a purchase?

• A. Is this item the most expensive option, and will it impress others?
• B. Can I return this item easily, and does it come in my favorite color?
• C. Will this purchase increase my credit card balance, and is it on sale?
• D. Do I really need this item, and can I afford it without going into debt?

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the context of the problem, which is about financial decision-making and responsible spending habits.
2. Step 2: Recognize that smart spenders prioritize financial responsibility and avoid impulsive purchases that could lead to debt.
3. Step 3: Evaluate the options provided in the question. Eliminate choices that focus on superficial factors like impressing others, favorite colors, or sales, as these do not align with responsible spending principles.
4. Step 4: Identify the correct approach to smart spending, which involves asking questions that assess necessity and affordability. Specifically, 'Do I really need this item?' and 'Can I afford it without going into debt?' are key considerations.
5. Step 5: Conclude that the correct answer emphasizes thoughtful financial decision-making, ensuring purchases align with personal needs and financial stability.