Paying For Needs, Wants And Aspirations Flashcards
1
Q
what are the three reasons why people spend money?
A
- to pay for essential items they NEED
- to pay for optional items they WANT
- to save for items they ASPIRE to buy in the future
2
Q
define Needs
A
items people must have to survive
3
Q
examples of needs(3)
A
fooddrink
place to live
4
Q
define wants
A
optional items that are desirable but not necessary
5
Q
examples of wants(2)
A
going to the cinema
buying clothes
6
Q
define aspirations
A
items or experiences that people wish to have in the future
7
Q
examples of aspirations
A
buying a car
8
Q
what do people do when planning finances
A
pay for needs first and if they ave spare income, they’ll consider paying for wants and saving for aspirations
