Question

To get full credit for completing this discussion forum you must: • post a novel and appropriate response to the question(s) posed (max score of 10 points) • Deadline for initial posts is Friday, Sept 18, at 11 PM. • respond in a meaningful way to at least two of your classmates' posts (up to 5 points per response, max of 10 points total] • Deadline for responses is Monday, Sept 21, at 11 PM. No credit is awarded for late posts. Be sure your posts are written in complete, grammatically correct sentences. Be sure to answer all parts of the question You recently began tracking your income and expenses. Examine your spending and distinguish between wants and needs. 1) How do you define a financial need? How do you define a want? 2) What are your fixed expenses (expenses that do not fluctuate that you must pay regularly each week, month, quarter, or year? 3) Which of your budget categories must you provide for first before satisfying others? To what extent is each of your expenses discretionary -- under your control in terms of spending more or less for that item or resource? Give a specific example of a non-discretionary and a discretionary expense 4) Which of your expenses could you reduce if you had to or wanted to for any reason? You do not need to disclose the specific dollar value of any of your expenses if you choose not to. Instead, you can discuss your expenses as percentages of your total expenses for the week (or month, if you already follow a written budget and can extrapolate the data For example: if I spent a total of $100 last week and 525 of that was spent feeding my Dunkin' or Starbucks addiction, then I would represent that as 25% of my total spending went towards iced coffees. To what extent was that 25% of my expenses discretionary? Could reduce that expense in any way (assuming that I wanted to save more money? 7:53 PM 9/17/2020 Be

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I need help with this assignment please thank you

Answer 1

Wants Vs Needs : Want is some thing that is desired... wants are often distinguished from needs. A Need is something that is necessary for survival (such as food and shelter) where as want is simply some thing that a person would like to have  

1) Financial Need : Is the difference between the cost of Attendance and the expected family contribution , cost of Attendance means total amount of education expenses  

Want : please refer the above want definition the common distinguish between need or want is " Essential"

2) Fixed Expenses : A fixed expense is an expense whose total amount does not changes with the change in activity either increase or decrease Eg: Rent of a house will not change either if you stay or not stay in the house, Insurance dues etc.,

3) Basic essentials are important first in the budget such as Food, cloth and shelter once these needs are fullfilled the remaining amount can be allocated to our wants based on importance, if any want which i want to fullfill i will reduce the expenses on others which are not basic essentials Eg : If i want to buy some extra books for my study i will try to reduce my entertainment or outside dinner expense and i will use those money to buy for books because the entertainment and out side dinner are in my control. I can spend those more by going to a five star hotel or reduce it by going to a 3 star hotel also.

4) continuing the above i can reduce the luxury item/ non basic essentials spending if i want to fullfill my desire or want.