Making Financial Decisions Flashcards
(7 cards)
Spending vs Saving
Saving helps prepare for unexpected expenses, while spending fulfills immediate needs or wants.
Example: Saving for an emergency fund vs buying a new gaming console.
What to Buy
Consumers decide based on price, quality, and need.
Example: Choosing between branded and generic medicines.
Where to Buy
Shopping location impacts price and convenience.
Example: Buying from a local store vs ordering internationally online.
Payment Methods
Credit Purchases, Ranking Options, Cash vs Card
Credit Purchases
Borrowing money for purchases (loans, credit cards).
Example: Using a credit card for a holiday and paying later.
Ranking Options
Comparing quality, price, and necessity.
Example: Comparing phone brands before making a purchase.
Cash vs Card
Cash keeps spending visible; cards offer convenience.
