Topic 2: Your money, your decision

» What do you value?
» Children value time with you
» Other money saving and environmentally friendly tips
» Money and who we are

Families and friends have got their own beliefs and values that impact on their financial decisions and choices as consumers. You will be exposed to these influences and you will be bombarded with advertising, sales and offers on a daily basis. Ultimately however, you will decide what is best for you. Before you part with your money or borrow money to buy something, it is you that is responsible for that decision.

It can help to:

• Know what you value and try to stick to it
• Identify some key goals that you want to aim for
• Plan to meet goals if they are important to you
• Take your time to listen to the advice
• Shop around when you know what it is you need or want
• Say that you need more time to think about it or to make your decision
• Respect that your family or friends may have different values to you
• Not buy something because someone else is pressurising you
• Seek independent legal advice if you are investing in something major or taking out a loan

It makes sense to know the difference between what you want and what you need then you can still choose to buy what you want but you are conscious that this item is not fundamental to your everyday survival.

What is a need? (something we must have to survive, food, water, shelter, clothing)
What is a want? (what we would like to make life more comfortable, modern houses, movies, mobile phones - now there's a good one to discuss!). How have things changed over time - are needs the same as they have always been?

• What needs do you pay for? (e.g. electricity, food, clothing)
• What needs and wants do not need to be paid for? (e.g. love, friendship)
• How do you make decisions about what you need and want?
• What are some examples of wants that you have and needs that you have?

Your decisions could be based on the quality of your life. Some people do not have much money but the choices they make mean that they have enough to live an enjoyable and healthy lifestyle. Some people choose to earn less money and spend more time with their family, or move out of the city to be in more quiet or healthy environment. Some people choose to work hard for a short time then travel. The pressures to own things like a car, mobile phone, an appartment or to think that these are basic needs in a modern society, mean we have to reassess our values and talk to our families about them.

Your consumer decisions could be based on your values around things like time, the environment, community or fair trade. When you shop you may decide to only spend your money on things that impact on the longer term sustainability of the planet. Habitats, native plants and animals are becoming endangered or extinct. It is the actions of all people that make a positive or negative impact on these environments.

You may want your children to know you value the environment or they may want you to know that they do. You could discuss this together. You may wish to give time to a charitable cause each month, to do an activity together to support a charity, your local community or the environment. It's fun to spend quality time together.

• Plan activities in advance, so you can take advantage of low cost or no cost events, check the local council or paper
• Do things with relatives and friends like BBQs or picnics
• Use the local library for books, toys and CDs
• Plant a garden or grow something in a plant pot
• Ask your child if they would like to invite a friend to play
• Cook together
• Take lunches instead of buying food when you are out
• Play board games and cards - you can even make your own

• Turn lights and other electrical appliances off when not in use
• Hang clothes out to dry instead of using the dryer
• Walk or catch a bus
• Ride a bike
• Share a car ride

There are some services or products aligned with your values that may cost more money, like free range eggs; items made using natural materials; free range and humanely managed meat; natural juices; local produce; materials that can be recycled; items that are not pre-packaged in plastic. Going green doesn't have to cost more however, you have to look at the items and pricing and decide what is best for you at the time. What are some of the costs we may need to think about , cost to health, cost to environment, longer term costs?

Decide on your values, your quality of life and the health of you and your family, then budgeting and planning is based on these. This will have an impact on the decisions you make and the actions you carryout. You may be able to discuss with your children when decisions are made around buying certain items, saving for things or helping out with special causes. It's ok to say no to your children when they ask for things.

Money and who we are

Some people say we can tell a lot about people from their approach to money:

• Some people are savers, others are spenders
• Some people hang onto money, others let it slip through their fingers

Which one are you?
Topic 11 will give lots of ideas for talking about money at home.