ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ethan is considering updating his cell phone plan to include unlimited data. In which situation could unlimited data be a NEED for Ethan?
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He loves watching movies, and he’s already paid for all the streaming services, so now he needs the data
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Unlimited data will allow him to play video games with his friends even when he’s not at home, and he LOVES video games
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He has so many social media accounts, and he needs to be able to check them throughout the day, even while in school
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He has an hour-long bus ride each direction to and from school, and he needs that time to complete homework and submit it all online
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Explanation:
Detailed explanation-1: -Understanding the difference between needs vs. wants will help you manage your budget and prioritize your spending. Needs are essential to live comfortably, but wants are often expenses that you can do without.
Detailed explanation-2: -One of the most common percentage-based budgets is the 50/30/20 rule. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. Learn more about the 50/30/20 budget rule and if it’s right for you.
Detailed explanation-3: -financial goals, current expenses, and income.
Detailed explanation-4: -The two main categories in your budget are Direct Costs and Facilities & Administrative (F&A or indirect) Costs.
There is 1 question to complete.