Factors affecting money decisions

  • Think of the last item of clothing that you bought. What factors affected your decision?
  1. EMOTIONS. Was it how you felt looking at the item – that is, your emotional response?
  2. FRIENDS AND PEERS. Was it your friends – and what you thought they would think about your choice – that is, some kind of “peer pressureaffecting your decision?
  3. CUSTOMS, TRADITIONS, AND HABITS. Was it because it was the style of clothes that you have always tended to wear in the past – that is, your customs, tradition, habit, or just falling in line with past choices?
  4. FAMILY MEMBERS. Did your parents, siblings, or other family members have any influence on your choice – that is what they would think and how they would react?
  5. LATEST STYLES AND FADS. Was it because of any latest style or fad – that is, trying to stay current and with current trends?
  6. ADVERTISING (AD). Was it because of any commercial, ad, promotion, or celebrity endorsement that you saw that had an impact on you – that is, some form of advertising?
  7. INCENTIVES. Was it because of ‘a sale’ that was on or a discount that you had – that is, some kind of incentive provided by the store to make you buy that product?
  8. YOUR VALUES AND CONFIDENCE.  Was it because of what you thought – and what you wanted – and your own sense of values, style, and knowing what you want?

When you make decisions about money, take a moment to think about factors that could be affecting your decision. Are you in control of your decisions – or are others affecting what you do? Try and be in control of your own decisions.

  • Answer the questions orally?

Which of the above factors do you think have the most influence on your money decisions?

Do you feel different when you pay for something with your own money than when others buy things for you?

Can you think of something that you bought that you never used – or didn’t use much at all? If so, think about why you bought it. What can you learn from that decision?