What is a negative outcome of prioritizing unnecessary purchases due to income level?

Study for the CAFS Core 1: Resource Management Test. Use flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently for your exam!

Prioritizing unnecessary purchases due to a person's income level can lead to financial instability. When individuals focus on buying items that are not essential, they may deplete their financial resources and fail to allocate sufficient funds for critical needs such as savings, bills, and emergencies. This mismanagement can result in accumulating debt or being unable to cover basic living expenses. Financial instability often manifests as stress and uncertainty regarding one's financial future, as the individual may struggle to maintain a budget or meet financial obligations effectively.

In contrast, improved social status, increased savings, and greater access to resources are generally positive outcomes related to financial health and responsible purchasing behaviors, making them unsuitable as answers to the question about negative outcomes.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy