1.3 Minor and major consumer and financial decisions

Question 1

How do we classify a purchase as a minor or major decision?

Answer 1

• The purpose of the product / service - a need or a want?
• The opportunity cost - what opportunities are we losing if we make the purchase?
• The short-term or long term effects on you - if you are financing the item, you may be
  paying off this loan over a long period of time.

Question 2

Would buying a house be a major or minor decision? why?

Answer 2

major. because a house on average can cost half a million to a million dollars.
spending a lot of money on anything is a major decision as you need to think about if it’s really worth the money you are about to spend on it.

Question 3

Would a weeklong holiday in New Zealand be a major or minor decision? why?

Answer 3

Major. because holidays are expensive, and you need to think about how you would save for.