Final answer:
TRUE. Analyzing trade-offs and opportunity cost is essential for making financial decisions.
Step-by-step explanation:
Analyzing trade-offs and opportunity cost is an essential aspect of making financial decisions. When making choices, there are always trade-offs, which involve giving up one benefit to gain another. For example, if you choose to spend money on a new video game, the trade-off could be giving up the opportunity to save that money for something else. Understanding the concept of opportunity cost can help individuals make informed financial decisions by considering the potential benefits and drawbacks of different choices.