monday: list 3 things you need to spend money on each month and 3 things you want to spend money on each…

monday: list 3 things you need to spend money on each month and 3 things you want to spend money on each month. why is it important to know the difference? tuesday: you charge $100 on a credit card with 20% interest and only make minimum payments. what might happen over time? why is it dangerous to only pay the minimum?

monday: list 3 things you need to spend money on each month and 3 things you want to spend money on each month. why is it important to know the difference? tuesday: you charge $100 on a credit card with 20% interest and only make minimum payments. what might happen over time? why is it dangerous to only pay the minimum?

Answer

Brief Explanations:

For Monday's question, differentiating between needs and wants helps in budgeting and financial stability. Needs are essential for survival and basic living (e.g., rent, food, utilities), while wants are non - essential desires (e.g., entertainment, luxury items). Understanding this difference allows for better allocation of funds. For Tuesday's question, if only minimum payments are made on a credit card balance with high interest (20% in this case), the remaining balance will accrue interest. Over time, the debt will grow as the interest compounds, leading to a much larger amount owed. It's dangerous because it can lead to long - term debt, financial stress, and potential credit score damage.

Answer:

Monday: Needs could be rent, groceries, and utility bills. Wants could be dining out, new clothes, and a streaming service subscription. Knowing the difference helps with budgeting and financial health. Tuesday: Over time, the debt will increase due to compounding interest. It's dangerous because it can lead to long - term debt, financial stress, and credit score issues.