Why is bargain shopping considered an important part of a healthy financial plan?

• A. It eliminates the need for budgeting altogether.
• B. It helps individuals save money by finding lower prices for the same goods or services.
• C. It guarantees that all purchases are of the highest quality.
• D. It encourages people to spend more on luxury items.

Answer: (B)

Verified step by step guidance

1. Understand the concept of bargain shopping: Bargain shopping involves finding lower prices for the same goods or services, which helps individuals save money and allocate their resources more effectively.
2. Analyze the options provided in the question: Evaluate each statement to determine which aligns with the principles of financial planning and budgeting.
3. Eliminate incorrect options: For example, 'It eliminates the need for budgeting altogether' is incorrect because budgeting is a fundamental part of financial planning, regardless of bargain shopping.
4. Identify the correct answer: The statement 'It helps individuals save money by finding lower prices for the same goods or services' aligns with the goal of financial planning, which is to maximize savings and manage expenses wisely.
5. Conclude why bargain shopping is important: Bargain shopping supports a healthy financial plan by reducing costs, allowing individuals to save money and potentially invest in other financial goals.