21. What is a primary benefit of having an emergency savings fund? a) Covering non-essential luxury expenses b) Providing financial security during unexpected events c) Increasing discretionary spending d) Reducing long-term investment returns 22. How does investing contribute to financial planning? a) It provides a source of passive income and helps achieve long-term financial goals b) It increases short-term discretionary spending c) It reduces financial security d) It focuses solely on non-essential expenses 23. What is the impact of personal values on financial planning? a) Personal values shape financial priorities and influence spending, saving, and investment decisions b) Personal values have no impact on financial goals c) Personal values increase financial instability d) Personal values reduce financial security 24. Why is it important to differentiate between needs and wants in budgeting? a) To prionitize non-essential spending b) To ensure essential expenses are met before addressing discretionary spending c) To increase financial stress d) To reduce savings for future goals 25. Which of the following is an example of a long-term savings goal? a) Saving for a weekend trip b) Contributing to a 529 college savings plan c) Saving for a new laptop d) Building an emergency fund