9.4 Impulse Purchases
What tips can help a person avoid impulse buying ? (Any one)
(Any tips we mentioned)
What is the purpose of a personal budget
- a plan that lets you monitor how you spend, save, invest, and manage your money.
- A way to track and monitor your income and expenses and make adjustments and management
What is comparison shopping? Why is it important ?
- the practice of comparing the price of products or services from different vendors before buying.
- allows consumers to buy more affordable and useful goods
What are some of the main items that a personal budget should get right on the expenses side ?
- Income
- Expense
- Surplus/shortfall（total）
It is sometimes said that all advertising and special sales campaigns are designed to make people purchase things they really do not need. Is this true ? Give one example.
Yes
- E.g. seeing a product in an advertisement pressures us to buy stuff although that item may not be useful to us at all.
In a personal context, what are some of the key things to get right of the income side when budgeting
All income from salary, part-time jobs, etc.
Examples: wages, living expenses (all money that is provided on a continuous and periodic basis)
What three things should a person consider before making a purchase ? How are they useful ?
(Any answers that make sense)
1. Do they need it
2. Can they afford it
3. Is it a rational purchase
- Helps to minimise the impulse purchasing / reduce our "extra" spendings
Is a personal budget "cast in stone" (fixed for a duration of the period) ? Can a personal budget be updated and should it be changed as time goes on?
Yes,
- the pre-selection should be adjusted according to the actual situation, such as income: salary increase; expenditure: rent or utility bill adjustment. These all require updating your pre-selection
Explain why a personal budget table gives the best perspective on the economic effect on impulse purchases ?
- Tracks Income and Expenses
- Shows the shortfall / net total
What is the relationship between impulse purchasing and personal budget ?
- Personal budget can avoid impulse purchasing.