Why is keeping records of income and expenses good?

Correct answer: To plan budget and savings

The direct answer is A: keeping records of income and expenses helps a person plan a budget and savings. First, income means money received, while expenses mean money spent. When both are written down, the person can compare money coming in with money going out. This makes it easier to identify unnecessary spending, decide how much can be saved, and prepare a realistic budget. Option A is correct because records support planning and responsible financial decisions. Option B is wrong: writing accounts does not hide money; it makes financial information clearer. Option C is wrong because the purpose is not to increase spending without thought, but to control and plan it. Option D is wrong because record keeping increases financial responsibility rather than removing it. This is an important part of financial literacy. A useful cue is: first record, then compare, then plan. Therefore the supplied answer A is correct.