Why is it important to track your income and your expenses?(1 point)

Question

Responses

because knowing whether you can afford your lifestyle or not is the first goal of financial literacy
because knowing whether you can afford your lifestyle or not is the first goal of financial literacy

because knowing whether you can afford your lifestyle or not is the only goal of financial literacy
because knowing whether you can afford your lifestyle or not is the only goal of financial literacy

because you need to by law
because you need to by law

because your income will tell you how much money you can save
because your income will tell you how much money you can save

Answer 1

The most appropriate response is:

because knowing whether you can afford your lifestyle or not is the first goal of financial literacy.

Tracking your income and expenses is essential for understanding your financial situation, making informed decisions, and achieving financial stability.