Which of the following is a good financial habit for students to adopt?

Tracking spending diligently is a fundamental financial habit that allows students to understand their financial situation better. By monitoring where their money goes, students can identify patterns in their spending, recognize unnecessary expenses, and allocate their funds more efficiently. This habit can lead to more informed financial decisions, helping students to save for future goals, avoid accumulating debt, and develop a budget that aligns with their needs and priorities.

Other options do not promote good financial practices. Living entirely on credit can lead to high debt levels and increase financial stress. Avoiding all types of investments limits the opportunity for wealth growth over time. Using cash for every transaction might not be practical in today's digital economy and may also restrict the potential benefits associated with using credit wisely, such as building a credit history. Thus, conscientious tracking of spending is a proactive and positive approach to financial management for students.