Question

Why is it wise to save part of one’s income? Saving allows one to exercise an important right of all consumers: the right to be informed. Saving teaches one how to avoid the dangers brought on through buying goods and services on credit. Saving helps one save for major purchases and provides a safety net in the event of a financial emergency. Saving prevents one from making impulse purchases or buying items without warranties.

Answer 1

It is wise to save part of one's income because saving helps one save for major purchases and provides a safety net in the event of a financial emergency.

Option: C

Explanation:

Everyone should keep balance in his income and expenditure. If one fails to keep balance in between these he will be in great trouble in financial emergency. No one can predict correctly the future economic condition of a country. A country can face economic recession at any time. So one need to be very careful before spending all the earnings to maintain lavish life style.

Save one fixed part of your income in bank you will get interest of it, the amount will roll over and will come to you in double. So that time you can utilize the extra money for purchasing some of your choice able product and can save the principal amount simultaneously.