ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Food
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Housing
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Transportation
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Entertainment
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Detailed explanation-1: -The first step is knowing which monthly bills to include in your budget, so you don’t spend more than you make. Whether you own your own home or pay rent, the cost of housing is likely your biggest monthly expense. In addition to a mortgage or rent payment, costs may include insurance, maintenance and property taxes.
Detailed explanation-2: -Surplus budget: In this budget, the income is more than the expenditure. The family is able to save more in this budget.
Detailed explanation-3: -The average household earned $87, 432 in 2021 before taxes and spent $66, 928, according to the BLS survey. Significant expenditures were housing, transportation and food. Slightly more than three-quarters of people’s income in 2021 was devoted to living expenses.
Detailed explanation-4: -One of the most consistent spending categories is housing-it’s by the far the biggest expense for all age groups, accounting for more than 30% of total annual spending for every generation. Another spending category that’s surprisingly consistent across every generation is entertainment.