because "gastar" doesn't mean "waste" in terms of money, but it can mean "waste" in other contexts, such as "gastar palabras",. which literally means "to spend words", but can be figuratively translated as "to waste one's breath".
If you want to say "He wastes money", you could say "Él malgasta dinero".
Contextually you are right, but literally you are wrong. The first time I answered this sentence, I put, "On that I spend my money," and the sentence was accepted. I was literal because I was being cautious. I specifically did not add the verb "is" because my intuition said I would be marked wrong.
You could say it that way. But unless you really want to emphasise the "I" in the sentence, then you need to drop the "Yo".
This overuse of "Yo", is a common mistake amongst non-native speakers. It makes you sound arrogant, like the world revolves around you. It is referred to as "Yoismo".
I was wondering why eso was used instead of ese or esa here...based on a small paragraph at the bottom of the link below it almost seems like this would be referencing spending money on an unknown object, an unnamed concept or on a situation that was just stated? Seems odd to me since if you're saying you spend your money on something you would know what it is I would think. I guess if someone said "I spend way too much money going to football games" you could reply with this sentence? Someone help me please :D
I see your point but we don't have a specified object so we need to use the non-gender pronoun. The reference does also say " The neuter pronouns are never used to substitute for a specific noun. They are used to refer to an unknown object or to an idea or concept that isn't specifically named. (If you would have occasion to use a neuter plural, use the plural masculine form.) The use of eso is extremely common to refer to a situation that has just been stated." The choice of topic for this lesson may not have been ideal.
I generally try to think of sentences like this as something I would be saying so it just seems strange to me that it almost implies you don't know the "that" that you're spending your money on. I get it that without context we cant know if its ese or esa but they would both work depending on context right? I'm guessing this is more in reference to a situation that was just stated (like "we should go to the fair" and "i'd spend money on that" would probably be eso in reference to the "going to the fair" as opposed to "I like this cat (gato)", "id spend money on that (ese?)" )and that when speaking about something to someone it might be more common to use ese or esa in reference to whatever the "something" was that I'm saying I spend my money on. Does any of that seem right?