ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To have money to buy things
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To have money put aside for emergencies
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For a future purchase
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All choices
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Detailed explanation-1: -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-2: -Saving provides a financial “backstop” for life’s uncertainties and increases feelings of security and peace of mind. Once an adequate emergency fund is established, savings can also provide the “seed money” for higher-yielding investments such as stocks, bonds, and mutual funds.
Detailed explanation-3: -You should save money for three basic reasons: emergency fund, purchases and wealth building. When it comes to saving money, the amount you save is determined by how much you have left at the end of the month once all of your spending is done.
Detailed explanation-4: -First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom.
Detailed explanation-5: -Financial independence. Living debt-free. Unforeseen expenses. Buying a home. Buying a car or other big-ticket purchase. Medical emergencies. Planning your retirement. Building a college fund for your children. More items