Question

2.
Why is it important to differentiate between your wants and needs before you spend money? .

A.
You don’t have an unlimited amount of money, so you need to prioritize your spending.

B.
You'll want to balance your spending, alternating between your needs and wants each month.

C.
Spending on your wants allows you to display your financial success, whereas spending on your needs makes you appear unsuccessful.

D.
Since you are working hard for your money, you want to focus on spending on your wants.

Answer 1

A.

You need to prioritize spending because money is limited — cover needs (housing, food, bills, savings) first, then allocate what's left to wants.