Family Life Cycle & Budgeting - Check for Understanding

After creating his budget, John realized his expenses exceeded his income. To resolve this issue, John can __________.

• Work fewer hours

• Invest more in the stock market

• Eat out less frequently

• Go on a shopping spree

How many categories are there in the family life cycle?

• Four

• Eight

• Two

• Six

A budget helps prevent debt by detailing which of the following?

• Listing expenses

• Showing current trends

• Creating new income

• Identifying shortages before they happen

Which of the following does the family life cycle help marketers define?

• Budget expenses

• Family size

• Target markets

• Someone’s age

Because the family life cycle changes, goals require __________.

• Constant updating.

• Lots of thought

• Priorities

• Long-term target dates