Money you don't plan on spending within a month should be transferred from your checking to your savings account.

• A. True
• B. False
• C. It depends
• D. Not advisable

Answer: (A)

Moving money you won’t need for spending in the near term from checking to savings is smart cash management. When you know you won’t use it within a month, putting it into savings earns interest and keeps it out of the daily spending flow, which reduces the chance you’ll dip into it for impulse purchases. Savings acts as a buffer for longer-term goals or emergencies, while still keeping funds accessible if you need them, though not as instantly as checking. A practical habit is to treat checking as your month-to-month spending fund and automatically transfer any excess into savings so your money grows rather than sits idle. Of course, if you anticipate a big upcoming expense or prefer to keep a larger buffer in checking, you’d adjust, but the default approach of moving unused monthly funds to savings aligns with prudent budgeting and growing your finances.