Role of money

Question 1

Personal attitudes

Answer 1

Individuals will vary in their attitude to risk and reward as well as saving and borrowing.
You may risk averse or enjoy taking risks as you are incentivised by potential rewards.
May be more or less likely than overs to save money rather then spend it, you will also be influenced by your attitude to borrowing.

Question 2

Life Stages

Answer 2

As you grow from childhood to adulthood your financial needs change.
Each stage of your life has different implications that will affect not just your needs but attitude to money

Question 3

Culture

Answer 3

Different cultures, affected by tradition religion and ethical beliefs will have different attitudes to money. The older generation of Chinese people have a culture of saving

Question 4

Life events

Answer 4

Event throughout your life will impact your attitude to money, events may be within your control e.g. uni, travelling abroad, getting married, having a family or may be outside your control e.g. illness, financial gains or losses.

Question 5

External influences

Answer 5

Factors outside your control, including state of the economy will have an impact. Decisions by government will affect the amount of tax you pay or amount you receive in benefits.
These will affect your ability to save and spend

Question 6

Interest rates

Answer 6

When interest rates re low you may be more willing to borrow or spend on credit.
When interest rates are high there is more of an incentive to save.