Consider these two households: Family A covers its expenses, which may include vacations, restaurant meals and entertainment. However, they rent their home, they are not paying for education and there are no savings. Family B covers its expenses, which includes money used for entertainment and a mortgage payment for the home they will eventually own. A portion of their income goes into savings, a Registered Education Plan and investments. Which is the more financially stable and why?

Answer rating: 100% (QA)

To determine which family is more financially stable we need to consider several factors that reflect their financial situation savings habits and deb... View the full answer