To achieve properly formatted output in C++, using `setw()` and `endl()` is essential. The discussion highlights the importance of placing `endl()` strategically to ensure output appears on separate lines rather than all on one line. It is recommended to create an example of the desired output format to clarify where new lines are needed. Additionally, `setw()` only affects the width of the next output field, so understanding its application is crucial for consistent formatting. Proper use of these functions enhances the readability of console output in C++.