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Factors influence the role of Money
Life Stages: (childhood, adolescence…
Factors influence the role of Money
- Life Stages: (childhood, adolescence, young adult, middle age and old age) their features, financial need and implications at each stage
Old age
Financial need: Fewer financial need for assets, but higher for service. e.g. Health care services
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Features: Reliant on pension, no longer have dependents
Interest Rates
- Low interest rate encourages borrowing and therefore spending
- The reward for saving is low therefore makes it less attracting
Young adults
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Implication: Borrow money to pay for a car, may take student loan at university
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Middle age
Financial need: Saving for child's future, look to improve lifestyle
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Features: Settle down, having a family, may earn good wage
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External influence/trend
- Outside of the control of the individual, i.e. you cannot determine them
- When the economy is in decline the spending power of individual tend to fall, maybe as a result of job lesses
- People are less willing or able to spend (saving rather spending
- Banks may be less willing to lend
Culture, including religions and ethnical belief
- Culture can influence our attitude toward money
- Different societies will have different opinion on right or wrong
- Some will be more open about money, earning and wealths whilst some might be secretive or reserved