Understanding When creating a budget why is it important to prioritize savings for unexpected expenses? A A To cover variable expenses B B To maintain fixed expenses C ) To ensure long-term financia stability D D To eliminate the need for a budget

## Step 1<br />The question is asking why it is important to prioritize savings for unexpected expenses when creating a budget. The options provided are:<br />A) To cover variable expenses<br />B) To maintain fixed expenses<br />C) To ensure long-term financial stability<br />D) To eliminate the need for a budget<br /><br />## Step 2<br />Option A suggests that savings are prioritized to cover variable expenses. While savings can indeed be used to cover variable expenses, this is not the primary reason for prioritizing savings.<br /><br />## Step 3<br />Option B suggests that savings are prioritized to maintain fixed expenses. This is not the primary reason for prioritizing savings either. Fixed expenses are typically predictable and can be budgeted for.<br /><br />## Step 4<br />Option C suggests that savings are prioritized to ensure long-term financial stability. This. Savings for unexpected expenses can help to prevent financial stress and instability in the unexpected events such as job loss, medical emergencies, or major repairs.<br /><br />## Step 5<br />Option D suggests that savings are prioritized to eliminate the need for a budget. This is not correct. A budget is a tool that helps to manage income and expenses, and savings are a part of that management.