Final answer:
The correct definition of financial discipline is taking care of needs before wants and deciding on one's priorities, which involves budgeting and investing to ensure financial security and achieve long-term goals.
Step-by-step explanation:
Financial discipline involves making informed decisions about managing money effectively, which includes a range of practices such as budgeting, investing, and using credit wisely. In the context of the options provided, the correct definition of financial discipline is taking care of needs before wants and deciding on your priorities. This approach ensures that essential expenses are covered and financial goals are set and met, whether that's short-term budgeting or long-term investing.
In economics, participants in financial markets are engaged in what's known as intertemporal decision making, which means that they must decide whether they prefer to consume goods immediately or save and invest for consumption in the future. This is where financial discipline is critical, as it requires an individual to focus on financial security by making conscious choices between immediate gratification and future stability.