Question

earning and spending unit test
why is it important to track your income and your expenses? (1 point)
○ 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

Explanation:

• Analyze Option 1: Financial literacy aims to help individuals manage finances. Tracking income/expenses helps know if lifestyle is affordable, a key first goal.
• Analyze Option 2: "Only goal" is incorrect as financial literacy has other goals (saving, investing, debt management).
• Analyze Option 3: There's no law mandating tracking personal income/expenses.
• Analyze Option 4: Savings depend on income - expenses, not just income. So this is wrong.

Answer:

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