A trade-off, or compromise, occurs when you give up something in order to gain something else. For example, if you want to buy a new smartphone, you might have to save money by not going out to eat as often. This means you are trading your dining experiences for a new device, balancing your desires and needs. In everyday life, trade-offs are common. When studying for an important exam, you might choose to spend less time with friends. This decision helps you prepare better, but it also means sacrificing social time. Understanding trade-offs helps us make better choices by weighing the benefits and drawbacks of our options.