Question

What are two core concepts to consider when beginning to manage money?

A)

Budgeting: Creating a plan for how to spend and save money.
Investing: Putting money into financial instruments to generate returns.
B)

Spending impulsively: Purchasing items without considering the budget.
Ignoring financial goals: Not setting specific objectives for saving or investing.
C)

Accumulating debt: Borrowing beyond one's means.
Avoiding financial literacy: Ignoring the importance of understanding financial concepts.
D)

Ignoring income sources: Not considering where money is coming from.
Relying solely on luck: Hoping for windfalls instead of planning and saving.

Answer 1

A) Budgeting and investing are two core concepts to consider when beginning to manage money. Budgeting involves creating a plan for how to spend and save money while investing involves putting money into financial instruments to generate returns.

Step-by-step explanation:

Two core concepts to consider when beginning to manage money are budgeting and investing.

Budgeting involves creating a plan for how to spend and save money. It helps track income and expenses and allows individuals to prioritize their financial goals.

Investing involves putting money into financial instruments such as stocks, bonds, or real estate with the goal of generating returns over time. It is important to start investing early in life to allow the investments to grow.