Role of money
- Created by: Sophielauren1999
- Created on: 10-05-17 16:14
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- Role of Money
- Personal Attitudes
- Individuals attitude may vary towards risk and safety and saving and borrowing
- People may want to avoid risks or be wanting to take more risks due to the potential rewards.
- EXAMPLE: Depends if you were brought up to save money for a rainy day
- Might just buy things you can afford
- Life Stages
- As you grow up from childhood, financial needs change
- Different stages of life will have different implications which will affect not just your needs but attitude
- Culture
- Different cultures will have different attitudes to money
- EXAMPLE: Older generation of Chinese people will have a culture of saving
- As the country becomes wealthier, young people will have the urge to spend or buy on credit
- Life Events
- Events in life will impact attitude to money,
- Some events may be in your own control
- Example: going to university getting married or starting a family
- Some may be outside your control
- Example: Illness, financial gains or losses
- External Influences
- Factors outside our control
- Example: The state of the economy will have an impact on wages, availability of jobs etc.
- Decisions by the government will affect the amount of tax people pay or the amount people receive in benefits
- These all directly affect the ability to spend or save.
- Interest rates
- If interest rates are low people will be more willing to borrow money or spend credit
- When interest rates are high there is more incentive to save
- Personal Attitudes
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