MAM 1020

MAM 1020

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  • Well first of all son, you need to identify your want and needs
  • Dad, How can I be smart with money when I grow up?
  • Your needs would be such things as our house, food and water. There are many more but those are just some examples. You understand bud?
  • YEAH! My wants would be an xbox, chocolate and a new hat, take notes for xmas!! 
  • Hmmm... Maybe lately some stuff I have bought lately are not all needs, my new mustang was a want, the new TV was a want... HEY at least I purchased groceries for my family yesterday, that was definitely a need
  • Son, you need to learn about Maslow's hierarchy and how to use it. On the pyramid there are needs that you can meet at the top there is: Self actualization, purchases you buy to allow you fulfill yourself, then there is esteem needs that are needs you need to feel accomplishment, below that there is Belongingness and love needs which are needs for you to fulfill those who you love, then there is safety needs which are needs you require to keep yourself safe, below that there Physiological needs which are items needed to keep your body safe
  • You bet! Now can you tell me whether how to know why I am buying something?
  • For example to use the pyramid for the top would be buying a program to learn a new language to make yourself better, below that would be buying such things would be buying a new car so others see you as higher socially, then you could buy a dog to get something you can love, then buy a new security system for safety, then buy a protein bar to make your hunger lower, You gettin' it mister?
  • Oh! OK I understand what you mean dad.
  • Yessir! There are two types of Motives: Rational and Emotional buying Motive. A Rational buying motive would be buying something because it is a necessity to you and you can't live without it. An emotional buying motive would be buying something to make you feel good and allow you to feel and emotion.
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