Question

There are so many variables that contribute to budgets including the economy. How does the economy affect your budget?

How do you think COVID-19 will affect peoples budgets?

Answer 1

Just the way the economic bugdets are affected by us , the citizens, our budgets are also affected by the economic variables.

If there is inflation in the economy, we will.have to reduce our expenses. Else it will go over budget. If the ecot is prospering , the GDP is incresing , we can also expect our income to grow. Our budget will also change accordingly. We rely on the goods and services provided by the economy , so the cost, prices , demand , supply etc of the goods and services affect our budget. With development of the economy , the needs of people also change.

Covid -19 will affect the budgets in the following ways

- Expected income will go down beacuse of recession, job deficiency, salary cut.

- Expenses related to internet charges will increase as will start working from home.

-The need for equipments like headphones , earphones, speaker, laptop, mobile etc will increase.

- Travelling expenditure will reduce.

- Miscellaneous expense such as hangouts, fast food , movies etc will reduce.

- Expenses on medicines and health products will increase.