Question

Now you will write an informative paragraph that will help Frankie to understand his financial options and formulate best practices for spending and saving.

Answer 1

Strategies that Frankie should consider:

1.) What he needs vs what he wants (does Frankie need new shoes?)

2.) Opportunity cost (savings Frankie would have to give up if he buys new shoes)

3.) Short-term and long-term goals (Does Frankie needs shoes now, or can he wait?)

Frankie should think about a number of options before purchasing a new pair of shoes. He should first consider whether he actually needs or wants these shoes. He should then think about opportunity cost. How else could he have used that money if he had not purchased the shoes? Could he have utilized his resources more effectively? He must also think about the issue of setting goals. He needs to decide if this is a task for the present or the future.

Also I dont understand how this is math