Why is it important to track your income and your expenses?(1 point)
Responses
because knowing whether you can afford your lifestyle or not is the first goal of financial literacy
because knowing whether you can afford your lifestyle or not is the first goal of financial literacy
because knowing whether you can afford your lifestyle or not is the only goal of financial literacy
because knowing whether you can afford your lifestyle or not is the only goal of financial literacy
because you need to by law
because you need to by law
because your income will tell you how much money you can save
because your income will tell you how much money you can save
As you grow older, which of these might make you change your personal finance decisions more?
(1 point)
Responses
your family priorities
your family priorities
your education
your education
your social lifestyle
your social lifestyle
your entertainment
because your income will tell you how much money you can save
The correct answer is:
- because knowing whether you can afford your lifestyle or not is the first goal of financial literacy
It is important to track your income and expenses because it helps you understand whether you can afford your current lifestyle or not. Financial literacy involves managing your money effectively, and tracking your income and expenses is the first crucial step towards this.
By keeping track of your income, you can determine how much money you have available to cover your expenses, save for the future, or invest. It allows you to make informed decisions about your spending habits and prioritize your financial goals.
Additionally, tracking your expenses helps you identify areas where you may be overspending or wasting money. It allows you to scrutinize your spending patterns and find ways to reduce unnecessary expenses, which can lead to increased savings.
In summary, tracking your income and expenses is important because it provides crucial information about your financial situation, helps you make sound financial decisions, and enables you to plan for a secure future.