Factors

that affect financial decisions

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Family factors

Family structure

Income level

Lifestyle

Size

Age

Stage of life cycle

Health status

Emergencies

Cultural factors

Cultural and ethnic groups impact Values Beliefs Lifestyle Family structures Clothing choices

What are the advantages and disadvantages of cultural diversity within a family, a school, a workplace, a community?

Social factors

Education level Family structure Immigration Ethnicity Rural, urban, suburban community Peer pressure Community relationships and

involvement

Societal and demographic factors

Demography is the statistical characteristics of a population Age Sex Race Birth, marriage, death rates

Economic factors

Employment rate Kind and number of jobs available

Inflation A period of rapid increase in the

price of goods and services

Recession An extended period of slow

economic growth

Government Regulations Fiscal policies affect personal &

business spending

Technology

The use of mechanical or electronic devices to manipulate Information (Ie. Computers, Ipads,

Fax machines, fiber optics, GPS systems)

Objects (i.e Robots, automated assembly lines, hybrid cars)

On going change impacts Training needs Replacing obsolete technology Types of jobs available

The media

Media Communications that reach large

audiences with the aid of publication devices that include Internet Television Voice, text, & data transmissions Publications

Impacts the ways people and businesses communicate and operate locally, nationally, and globally.

The marketplace

Supply Goods and services available to the

consumer

Demand Consumer desire to purchase as

compared to availability

Market response How quickly the market adjusts to

supply versus demand

Legal and moral factors

Laws that impact spending Taxation Investment and Retirement Accounts Insurance requirements

Beliefs in what is right and wrong What is appropriate behavior of

employers, employees, and individuals at home, work, and within the community.

Charitable giving and Service

Personal factors

Needs Items to survive – food, clothing, &

shelter

Wants Not essential but desirable – cell

phone, Music CDs,

Values A person’s belief about what is

important and desirableNow you need to watch Needs vs. Wants Video….just click on the link!