The amount of money we set aside for future consumption will be determined by
A)our level of current wealth.
B)how much we currently earn and spend.
C)our education level.
D)the current needs of our family.
E)the cost of life's necessities.

Question

Quizplus · Accepted Answer

The amount we set aside for future consumption will be determined by how much we earn and spend currently. If we earn more than we spend, we will have a surplus to save for the future. Conversely, if we spend more than we earn, we will have a deficit and may incur debt instead of saving for the future. Therefore, it is crucial to manage our income and expenses with the future in mind to ensure we have enough saved up for future consumption.

The Amount of Money We Set Aside for Future Consumption