ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Healthcare
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Clothing
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Transportation
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Housing
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Detailed explanation-1: -The largest expense for most Americans is housing. At $1, 050 per month, the cost of having a roof over our heads accounts for 21% of a household’s monthly budget. Percentage of income is based on after-tax income.
Detailed explanation-2: -The first place that you should start when thinking about your budget is your income. This is simply how much money you have coming in each month (not to be confused with savings, which is how much money you currently have and should not be dipping into if you can help it).
Detailed explanation-3: -Needs are items you cannot live without. These may include rent, groceries, and health insurance. Wants are items that are not necessary but may make life more pleasant. These may include dinners out, concert tickets, and clothes.
Detailed explanation-4: -The purpose of a family budget is to help you stay in control of your expenses and avoid overspending where possible. It also supports saving goals, so you can put away money for any plans you have down the line.