What is one characteristic of financial resilience?

Financial resilience refers to the capacity of individuals or organizations to anticipate, prepare for, respond to, and recover from financial difficulties. This involves having strategies and resources in place to weather economic challenges, such as job loss, unexpected expenses, or market downturns. The ability to absorb economic difficulties indicates a level of preparedness and flexibility; resilient individuals often have savings, diversified income sources, and a solid understanding of their financial situation, allowing them to navigate challenges without significant disruption to their lives.

The other options do not reflect true financial resilience. A high income without financial planning suggests that a person might face difficulties due to poor money management despite having significant earnings. Disregarding financial risks can lead to irresponsible financial behavior and potential crises. Finally, complete avoidance of any debt may not be practical or beneficial; responsible debt management can actually contribute to financial health when used appropriately, such as for building credit or investing in opportunities.