Answer to Question #99135 in Financial Math for Atiyya

Question

Write a brief statement reflecting on how a family's lifestyle impacts the amount of money that it needs to make in order to maintain that lifestyle. Include a statement on how a family's attitude on saving, spending, and going into debt, affects its monthly expense budget

Answer 1

Personal finance is about meeting personal financial goals, whether it’s having enough for short-term financial needs, planning for retirement, or saving for your child's college education. It all depends on your income, expenses, living requirements, and individual goals and desires—and coming up with a plan to fulfill those needs within your financial constraints. 

The more expensive is the lifestyle of the family, the more money it needs to make in order to maintain that lifestyle. Very often a particular family can earn enough to fulfil all its needs, but if money is spent inefficiently, then the family may have not enough money to cover all its costs and even get into debt.But if the family can control its spending, try not to go into debt, and try to save some part of its income, then its monthly expense budget may even decrease and become efficient.