International Baccalaureate (IB) Practice Exam

Which of the following is not recommended when you are cash-flowing your college education?

1. Live on a zero-based budget.

2. Make sure you have an emergency fund.

3. Attend an out-of-state school.

4. Work and save money over the summer months.

The correct answer is: Attend an out-of-state school.

Attending an out-of-state school is often not recommended when cash-flowing your college education due to the typically higher tuition rates and additional expenses associated with living away from home. Out-of-state schools often charge higher tuition for non-resident students compared to in-state institutions, which can lead to significant financial strain if one is working to manage expenses through cash flow. Additionally, living farther from home can incur extra costs for housing, travel, and everyday expenses. In contrast, options like maintaining a zero-based budget, having an emergency fund, and working during the summer tend to support better financial stability. These strategies help in managing limited resources effectively, ensuring that all income is allocated toward essential expenses, fostering financial resilience, and preparing for unexpected costs.