Consumer and financial decisions 1 of 9 ECBY

Consumer and financial decisions 1 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec

Making consumer and financial decisions • Consumers are the end users of goods and services. • Consumers make decisions about the best ways to satisfy their needs and wants, using their limited resources. • Because their resources are limited, it is important to make informed consumer and financial decisions. • Making an informed decision means making the decision after learning and considering all of the relevant data and information. • In making an informed decision, the effects of consumer and financial choices needs to be considered. 2 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec

Consumer decisions are decisions about which goods and services consumers will purchase to satisfy their needs and wants. Financial decisions involve decisions about when, where and how much to spend to acquire these goods and services, and the payment methods that may be used. These decision are very closely connected and are often made simultaneously. 3 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec

Effects of decisions • The consumer and financial decisions we make have an effect on: – ourselves – the broader community – the environment. • The effects of consumer and financial decisions can be positive or negative. 4 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec

Case study 5 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec

Staycation or vacation Your family has been planning a trip away, but has not yet chosen a destination. A nearby town has some fabulous resorts and is running a campaign with great specials to encourage locals to have a ‘staycation’. Consider the effects of the decision to have a ‘staycation’ (a holiday close to home) or a ‘vacation’ (a holiday further away from home) on the individual, the broader community, and the environment. 6 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec

Effects on the individual Positive effects • Save money by taking advantage of accommodation specials • Save money on travel costs • Experience attractions and features in your local area Negative effects • Forgo the enjoyment of experiencing a new destination • A sense of not feeling as though you’ve had a holiday • Some may take time out of their holiday to ‘check in’ at work or • Reduce time lost in travelling to attend appointments a distant destination • Reduce travel-related stress 7 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec

Effects on the broader community Positive effects • Support the employment of locals • Money spent locally is injected back into the local community • Provides economic benefits for local suppliers 8 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec • • Negative effects Reduction in business for travel agents Impact on tourism industry in other destinations Impact on travel industry The effect of people returning from travel with new ideas to benefit the community is lost

Effects on the environment Positive effects • Less pollution is created due to shorter distances travelled • Less fuel is used due to shorter distances travelled • May raise awareness of local environmental issues 9 of 9 ECB_Y 05 -06 Band_U 2_SS_Con. And. Fin. Dec Negative effects • Impact of tourism on the local natural environment