Which of the following behaviors can help increase personal savings?

• A. Ignoring regular account statements
• B. Increasing discretionary spending
• C. Creating and following a monthly budget
• D. Making only minimum payments on credit cards

Answer: (C)

Verified step by step guidance

1. Understand the concept of personal savings: Personal savings refer to the portion of income that is not spent on immediate expenses and is set aside for future use. Increasing personal savings involves managing income and expenses effectively.
2. Evaluate the behaviors listed in the problem: Ignoring regular account statements, increasing discretionary spending, creating and following a monthly budget, and making only minimum payments on credit cards.
3. Analyze each behavior: Ignoring regular account statements can lead to a lack of awareness about financial status, increasing discretionary spending reduces the amount available for savings, and making only minimum payments on credit cards can result in higher interest costs over time, reducing savings potential.
4. Focus on the positive behavior: Creating and following a monthly budget is a proactive approach to managing finances. It helps track income and expenses, identify areas to cut costs, and allocate funds for savings effectively.
5. Conclude that creating and following a monthly budget is the behavior that directly supports increasing personal savings, as it promotes financial discipline and planning.