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How can a budget help people to manage their needs and wants?
Answer:
Answer by Student
-
A budget can help people to
manage
their needs and wants by
planning
how much money they have and how much money they spend.
-
A budget can help people to
prioritize
their needs over their wants and to
save or invest
some money for their future goals.
- A budget can help people to track their income and expenses and to adjust their spending habits if they have a negative balance .
Detailed Explanation by Teachoo
-
A budget is a plan that lists how much money a person has and all the needs and wants that cost money. A budget helps a person to
manage
their money
wisely
and to
achieve
their financial goals.
-
A budget can help people to
prioritize
their needs over their wants by allocating more money for the things that are
essential
for survival or well-being, such as food, water, clothing, shelter, health, and safety. A budget can also help people to
save or invest
some money for their future goals, such as education, retirement, or emergency fund.
- A budget can help people to track their income and expenses and to adjust their spending habits if they have a negative balance . A negative balance means that a person has more expenses than income, which means they have to borrow or cut some costs. A budget can help people to identify where they can reduce their expenses or increase their income, and to avoid debt or financial problems.
