Needs, wants and aspirations Flashcards
What are needs
Essential must have items that everyone must have to survive
What are wants
Optional nice to have items that are desirable but not essential
What are aspirations
Hopes for the future
How long are medium to long term savings used for
3 or more years
What are investments for
Long term wants or aspirations, higher risk for a higher return
What is the purpose of a pension
To finance retirement
What is long term borrowing
Borrowing for a big purchase and paying back over a long period of time
What is insurance for
Covering long term risks
What are the internal factors affecting needs, wants and aspirations
Values, beliefs, attitudes, perceptions and preferences
What are the external factors affecting needs, wants and aspirations
Marketing, peer pressure, trends and role models
What is ethical investing
Saving to use money for an ethical purpose
What does sharia law forbid
Interest on debts
