Why is it important to track your income and your expenses?

Question

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 you need to by law
Because your income will tell you how much money you can save

Answer 1

The most accurate choice from the options provided is:

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

Tracking your income and expenses is crucial for understanding your financial situation, which is foundational to making informed financial decisions and achieving long-term goals. It helps ensure that you can maintain a sustainable lifestyle without falling into debt, ultimately leading to better financial health.