Impulse Buying
What term describes the act of making unplanned or spontaneous purchases, often driven by emotions rather than rational decision-making?
Impulse buying
What emotional reason might drive individuals to make impulse purchases to impress others or boost their social status?
The need for social approval or recognition
What are two benefits of smart spending?
Saving money, reducing debt, or achieving financial goals.
What is the difference between a debit card and a credit card?
A debit card allows you to spend money directly from your checking account, while a credit card allows you to borrow money up to a certain limit.
True or False:Buying a candy bar at the checkout counter because it looks delicious is an example of impulse buying.
True
Rather than succumbing to impulse purchases, what method involves setting financial goals, prioritizing spending based on needs versus wants, and regularly reviewing expenses to stay on track?
Creating a budget or financial plan.
Give an example of a smart spending habit teenagers can adopt to manage their money better.
Saving a portion of their allowance or income, comparing prices before making a purchase, or avoiding impulse buys.
What is the importance of creating a budget, and how can it help you manage your money effectively?
Creating a budget allows you to track your income and expenses, prioritize your spending, and save money for future goals. It helps you avoid overspending, plan for emergencies, and achieve financial stability.
True or False: Purchasing a high-end electronic gadget without researching its features or comparing prices is considered a planned purchase.
False.
When people buy products that reflect their aspirations or desired identity, what emotional motivation are they responding to?
The need for self-expression or validation
True or False: Smart spending means always choosing the cheapest option when making a purchase.
False. (Smart spending involves considering value for money, not just the lowest price.)
This term refers to the amount of money you owe to creditors, such as credit card companies or lenders.
Debt
How can high school students avoid falling into the trap of impulse buying? Give at least 3 examples.
Creating a shopping list before going to the store, setting a budget, and taking time to think about purchases before making them.
What emotional state may lead individuals to engage in "retail therapy," making impulse purchases to alleviate feelings of sadness, loneliness, or boredom?
The need for emotional support or distraction
You're saving up for a new smartphone. How can you practice smart spending to reach your savings goal faster while still managing your day-to-day expenses?
Creating a budget to track income and expenses, reducing discretionary spending on non-essential items, or finding ways to increase income through part-time work or selling unused items.
What is interest?
Interest is the cost of borrowing money or the return on invested funds, expressed as a percentage of the principal amount.
Why is it important for high school students to develop good money management skills and resist impulse buying habits?
Developing good money management skills early can lead to financial stability and independence in the future, while avoiding impulse buying helps prevent debt and overspending.
When people make impulse purchases based on a sudden emotional impulse rather than a rational decision, what emotional motivation are they responding to?
The need for immediate satisfaction or relief
True or False: Smart spending requires striking a balance between enjoying life now and saving for the future, rather than focusing solely on one or the other.
True.
What is the difference between a checking account and a savings account?
A checking account is used for everyday transactions like paying bills and making purchases, while a savings account is designed for storing money and earning interest over time.