Beruflich Dokumente
Kultur Dokumente
F1
FinancialDecisions
AdvancedLevel
Haveyoueverthoughtaboutwhatcontributestothefinancialdecisions
youmake?Maybe,forexample,youhadtomakeachoicebetween
purchasingapairofdesignersunglassesandbuyingonesthatwereknock
osbutlookedexactlylikethedesignerpair.Thepriceoftheknockos
wasprobablyafrac onofthepriceofthedesignerglasses.Youprobably
consideredseveraldierentfactorsindecidingwhichpairtobuy.Didyou
considerhowmuchmoneyyouhadavailable?Howabouttheop onsyou
wouldhavewiththemoneysavedifyouboughtthecheaper,non
designerpair?Didyouconsiderhowyoulookedinonepaircomparedto
theother?Yourpersonalvaluesandperceivedneedsandwantsall
influenceyourfinalpurchase.
Values
Avalueisafundamentalbelieforprac ceaboutwhatisdesirable,worthwhile,andimportanttoanindividual.Values
arethestandards,morals,ethicsandbeliefsbywhichyouliveyourlifeandformthebasisforalldecisionmaking.For
example,mostpeoplevaluethingslikefamily,friends,goodhealth,havingasuccessfuland/orsa sfyingcareer,
financialsecurity,honestyandhelpingothers.
Whatdoyouvalue?Askyourself,Whatmakesmefeel
happy,comfortable,sa sfiedorgoodaboutmyself?Your
resul nglistwillhelpyoudeterminewhatisdesirable,
worthwhileandimportantinyourlife.Yourlistwilltherefore
exemplifywhatyouvalue.And,yourlistofvalueswillbe
uniquetoyou.Lifesexperiencesandinfluenceshelp
determineyourpersonalvalues.Understandingthe
uniquenessofonesvalueswillhelpyouunderstandwhy
someoneelsespersonaldecisionsmaybedierentthan
yourown.
Apersonsindividualvaluesmaybeinfluencedby:
Family
Friendsandpeers
Teachers
Culture(o eninfluencedbywhereyoulive)
Religiousalia ons
Media,suchastelevisionandsocialnetworking
Whataretwoofyourvalues?
1. family
2.
love
Valuesplayalargeroleinalldecisionsyoumake,includingyourfinancialdecisions.Valueshelpyoutodetermine
yourpersonalgoals.Achievingthesegoalsmayinvolvetheuseofmoney.So,thefirststepindecidinghowto
manageyourmoneyistodeterminewhatyouwantyourlifetolooklike,bothinthepresentandoverthelongterm.
TakeChargeTodayAugust2013FinancialDecisionsPage1
FundedbyagrantfromTakeChargeAmerica,Inc.totheNortonSchoolofFamilyandConsumerSciencesTakeChargeAmericaIns tuteatTheUniversityofArizona
2.1.3.F1
NeedsandWants
Needsreferstogoodsorservicesthatarerequiredfor
survival.Theyincludebothphysiologicalandbiological
requirementsformaintaininglife.Afewexamplesof
needsmightincludehavingenoughfoodandwaterto
maintainyourhealth,clothingandsheltertoremain
comfortableintheclimateinwhichyoulive,andbasic
healthcare.Ontheotherhand,wants,reflectourvast
desireforgoodsandservicesthatcanincreaseourquality
oflifebutarenotabsolutelynecessaryforoursurvival.
Mee nganeedinthemostbasicofwaysmaybe
Whatarethreeitemsyouhaveusedtoday?
1. money
2. food
3. phone
Circletheitemsthatareaneed.
TradeosandOpportunityCosts
Therearemanywaystosa sfyourneedsandwants.But,noneofushas
sucientincomeor metobuyanddoallofthethingsthatwemight
enjoyinaday,amonthoralife me.Asaresult,spendingdecisions
inevitablyinvolvetradeos.Wemakechoices.Witheachchoicethere
isatradeobecauseinchoosingonething,wegiveupanother.The
opportunitycostofadecisionisthevalueofthenextbestalterna ve
thatmustbeforgoneasaresultofthedecision.
Opportunitycostisoneofthemostpowerfulconceptsinlearningto
manageyourmoney.Opportunitycostisuniquetoindividualsandbased
onapersonsownvaluesandgoals.Whenyourecognizethatspending
moreondesignerclothesleaveslessofyourmoneyavailableforrenton
anapartment,orgasforyourcar,youarereadytomakeinformed
choicesbaseduponwhatismostimportanttoyou.
TakeChargeTodayAugust2013FinancialDecisionsPage2
FundedbyagrantfromTakeChargeAmerica,Inc.totheNortonSchoolofFamilyandConsumerSciencesTakeChargeAmericaIns tuteatTheUniversityofArizona