Certified Financial Planner (CFP) Practice Exam 2025 – All-in-One Study Guide for Exam Success!

To determine the correct percentage range that Kim and Mark have been saving from their combined income over the years, it is essential to consider general savings habits and benchmarks in personal finance. Saving 3% to 5% of their income is often considered a low saving rate. This range is typically seen in situations where individuals are just managing to meet their expenses without being able to allocate a significant portion towards savings.

Many financial advisors recommend saving at least 10% of one’s income for long-term financial health. Therefore, if Kim and Mark are in the 3% to 5% range, they are likely facing challenges that could include higher living expenses or insufficient income to meet their savings goals. The lower saving rate suggests they might be focusing more on immediate financial needs rather than long-term savings objectives.

Other options that cite higher percentages reflect more robust savings strategies that many individuals should aim for to build wealth and ensure financial security. Thus, the choice indicating a 3% to 5% saving rate correctly illustrates a scenario where Kim and Mark’s savings efforts are on the lower end of typical expectations for savings.