A1 - factors that influence and affect the role of money

• personal attitudes - some people may be risk averse , so will try to avoid risk . However some people are willing to take more risks and enjoy risk-taking .

  spending and saving could all depend on your familys attitude to money.
• Life stages - childhood , adolescence , young adult, middle age, old age.

  • your financial needs change as you grow up from childhood to adulthood .
  • each stage of your life has different implications that will affect your attitude to money .
• culture - religion and ethical believes

  • will affect attitude towards money
  • the older generation have a culture of saving
  • However , as the country becomes wealthier young people are willing to spend and buy more .
• Live events - these are events throughout your life that will impact on your attitude towards money .

  E.g university , travelling , getting married , illness
• External influences - these are factors outside your control , including the state of the economy that will have an impact .

  • E.g the state of the economy will impact on wages , availability of jobs and the prices of goods and services .
  • Decisions by the government affect the amount of tax you pay or the amount you receive on benefits.
• Interest rates - if low you may be willing to borrow money or spend on credit .

  • when interest rates are High there is more of an incentive to save .
• Factors that influences and affect the role of money - PLCLEI