Question

Describe expenditure and saving.

Hint:

Prioritize saving a fixed percentage of income to build a financial cushion.

Answer 1

Step 1: Expenditure includes all outflows of money for daily needs (e.g., food, rent), business costs, or investments, reducing available funds. Step 2: Saving is the income left after expenditure, deposited in banks or invested to build financial security or meet future goals. Step 3: Effective financial management balances expenditure and saving to ensure sustainability and growth.