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Anit [1.1K]
3 years ago
10

In personal finance, what is considered a need?

English
2 answers:
Troyanec [42]3 years ago
8 0
Managing your money (spending,saving and investing)
Vitek1552 [10]3 years ago
3 0

Answer:The HFN(Hierarchy of Financial Needs) identifies financial parallels to physiological needs (income), safety (insurance), love and belonging (credit), esteem (savings), and self-actualization (investments)

Explanation:

  1. INCOME: The most basic financial need is income to cover basic living expenses, such as food, housing, and utilities.
  2. INSURANCE: To protect earnings, people must insure against unforeseen events that create setbacks.
  3. CREDIT: To acquire assets such as a car, home, or education otherwise unattainable through income alone, people need credit.
  4. SAVINGS: When individuals save, they put away resources for specific goals. The ability to save demonstrates discipline and engenders confidence, a sense of achievement.
  5. INVESTMENTS:This is the stage where people can invest in ventures that carry risk as well as the potential for return. It represents a turning point because people have investments to generate income, rather than relying solely on earned wages.

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