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Becoming financially literate means gaining an understanding avout how money is made, saved, and spent. it involves gaining the ability to use your own financial resources to make the best decisions for your situation, whether that means earning money, or saving, investing, and spending your money wisely. In this activity list down five (5) reasons why a person needs to borrow money and five (5) reasons not to borrow money.

Sagot :

Answer:

five (5) reasons why a person needs to borrow money and

1. If the cash on hand is not enough for the bills to pay

2. If there are sudden emergency that involves money.

3. Investing on a small business

4. For student loan

5. For housing loan

five (5) reasons not to borrow money.

1. Loan interest increase over time if not paid immediately

2. Paying will be difficult if your salary or source is just enough for you consumption.

3. It can become a habit.

4. If ruin relationship if borrowed money from friends or relatives.

5. It will not give you a peace of mind because of the due date.

Explanation:

Knowing your capacity to earn money is important same with saving. That is why, borrowing money is not encourage if you can't pay on the time you and lender agreed on.

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