ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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never be able to save any money
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never be at risk of going into debt
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always have what they want and need
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None of the above
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Detailed explanation-1: -The perils of saving too much for retirement include causing unnecessary financial stress, such as struggling to pay your mortgage or for one of life’s unexpected and costly emergencies. His research concluded that the actual range of replacement rates is between 54% and 87%.
Detailed explanation-2: -Financial illiteracy is one of the biggest reasons people have difficulty saving or investing money. Many people don’t understand how to save or budget their money, which causes them to spend more than they earn. Ignorance can also lead them to make bad financial decisions that can further hurt their ability to save.
Detailed explanation-3: -Saving is an important habit to get into for a number of reasons-it helps you cover future expenses, manage financial stress, plan for vacations and more. Understanding the different ways that saving money can help you thrive might motivate you to save more.
Detailed explanation-4: -The importance of saving money is simple: It allows you to enjoy greater security in your life. If you have cash set aside for emergencies, you have a fallback should something unexpected happen. And, if you have savings set aside for discretionary expenses, you may be able to take risks or try new things.