This comes up incredibly frequently, and having it be second nature will benefit you.
A lot of the time, this gives you a starting place for how your inputs and outputs should look, what your method signatures should be. For example, if your data can can fit in a uint8_t, why waste bytes on a uint32_t?
This isn't the be all and end all, especially since modern architectures use larger word sizes/RAM is plentiful/bandwidth is cheap, but it can be a helpful way to frame the conversation when you're architecting software (especially network protocols).