International Baccalaureate (IB) Practice Exam

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Prepare for the International Baccalaureate Exam with comprehensive quizzes including multiple choice questions and detailed explanations to boost your confidence. Hone your skills with our expertly crafted materials!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which financial practice is often linked to long-term personal wealth?

Maintaining a budget
Spending extravagantly
Ignoring debts
Seeking instant gratification

The correct answer is: Maintaining a budget

Maintaining a budget is a crucial financial practice associated with building long-term personal wealth. A budget helps individuals track their income and expenses, enabling them to make informed decisions about saving and investing. By prioritizing needs over wants, budgeting allows individuals to allocate resources effectively, ensuring that they live within their means and set aside funds for future goals, such as retirement or major purchases. This disciplined approach to managing finances fosters a sustainable growth of wealth over time. In contrast, spending extravagantly can lead to financial strain and accumulation of debt, which detracts from wealth building. Ignoring debts can result in higher interest payments and financial instability, preventing individuals from accumulating wealth. Seeking instant gratification often leads to impulsive spending, diverting funds away from savings and investments that contribute to long-term financial security. Therefore, maintaining a budget stands out as the foundational practice that supports the journey toward achieving lasting personal wealth.