Financial choices revolve around three primary decisions: spending, saving, and

Question

Deleon

Business

22 December, 13:03

Financial choices revolve around three primary decisions: spending, saving, and

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Answers (1)

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Lola Tapia · Answer 1

Answer: borrowing.

When you have money you have to decide whether you want to spend/invest it or save for future spending. If you save it is because you can earn interests and increase the value of your money.

Yet, you have a third option to consider. You can borrow money. Whether it is better to borrow money to spend today is a financial issue, and the convenience will depend on the cost of that money (the interests that you have to pay to the bank) and the benefits of using it.