The Consumer Flashcards
What is a consumer
A consumer is a person who buys goods and pays for services
What are goods
Items consumers buy for example food or clothes
Give 1 example of impulse purchase
buying candy on the checkout line when you weren’t intending to do so.
Give 1 example of planned purchase
Planned purchase buying the thing you came for.
What are services
Jobs consumers pay others to for example a dentist or a hairdresser
Whats the difference between paying someone Directly and paying some indirectly
We would pay barbers directly and we would pay taxes indirectly
Whats a direct service
When consumers pay right away
Whats an indirect service
When consumers pay for things like taxes
What are 4 types of payments
Debit card, credit card, cash, paypal
Advantage and disadvantage of cash
Advantage: there is no interest
Disadvantage: you could loose it
Advantage and disadvantage of debit card
Advantage: Allows you to spend your own money So you don’t spend too much
Disadvantage: You might run out of money
Advantage and disadvantage of credit card
Advantage: can borrow money from the bank
Disadvantage: Paying back the bank with interest
What is the difference between goods and services
Services are people you pay to do things for you like a dentist. goods are something you buy yourself like clothes
3 goods you use regularly
Milk, bread , chocolate
3 services you use regularly
Dentist, doctor,barber
What is budgeting
Budgeting is a plan for managing our money to help prevent debt
Why is budgeting important?
To manage our spending
To prevent debt
To plan our use of money ( wise spending)
To help us save for larger purchases, example, holiday
To help us save for unforeseen expenses/emergencies
What are Three advantages of renting
Usually cheaper than buying per month Not tied to one place can move on more easily
Landlord has To maintain the house
Disadvantages of renting
You pay money every month but never own a house
You don’t build up a equity (Profit from owning a house )
Sometimes you have to Wait a long time for the landlord to fix stuff.
What is expenditure
The money that is being spent
