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20 Cards in this Set
- Front
- Back
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What are needs? |
Essential must-have items that everyone must have to survive |
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Examples of needs? |
- Water - Food - Shelter - Basic Clothing - Gas and Electric |
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What are wants? |
Optional, nice to have, items that are desirable but not essential (they are items and experiences that people wish they could have) |
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Examples of wants |
- Jewellery - Going to Cinema - Restaurants |
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Is a limit to what somebody can want? |
No, a few clothes would cover their basic needs but they probably would want to have a good choice of fashionable clothes |
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Distinguish between needs and wants |
- Essential items such as water, basic food and clothing are needs for everyone - More expensive food and fashion clothing are not necessary and so they are wants |
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When do people make a decision to buy a want? |
When they buy more food or clothes than they actually require, or choose more expensive products when cheaper items are available - everyone needs to eat but some people choose to buy luxury items such as truffles and prime steak. |
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What would a person do if their budget changed? |
they will make different decisions on what to buy under the 'heading' of food |
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So needs and wants are related to what? |
The price of products and people's ability to buy them |
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What are aspirations? |
Hopes for the future, they are items or experiences that people wish to have in the medium-term or long-term future |
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Example of aspirations |
- going on holiday - sharing a flat with friends - getting a good job |
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Example of a realistic aspiration |
buying a nice car |
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Example of an unrealistic aspiration |
buying a luxury yacht |
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What is a key consideration when planning long-term finance? |
aspirations |
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Do needs change much over the life cycle? |
No |
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What changes over the life cycle? |
A person's values (the things they might consider important) change as they grow older and have different experiences |
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As peoples values change, what else might change? |
Their needs wants and aspirations might change, which changes affect of how people manage their money |
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As people move from childhood into adulthood and then grow older, how do their needs change? |
According to: - Their Lifestyle - The prevailing culture of the society in which they live - the size of their family - their ability to afford products |
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Do peoples aspirations become more realistic as they learn more about life? |
Yes |
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What are medium-term and longer |
'/ |
