Unit 3-Lesson 5: Spending
For better understanding, the writer provides a definition and an example of Spending.
Spending means using money to purchase goods and services.
We spend money for various reasons, such as buying food, clothes, and everyday essentials, paying for different services, entertaining people, traveling to places, helping others in need, or investing in business. Spending is an integral part of our daily lives.
A. Look at the pictures. What is common here?
Answer:
We spend money for different reasons: buying foods, clothes, everyday essentials, paying for services, entertaining people, traveling, helping others, or investing in business. Spending is a part of our life.
B. Read the text and answer the questions that follow.
We spend money for different reasons. We buy foods, clothes, or everyday essentials, pay for different services, entertain people, travel to places, help others in need, or invest in business, and thus spend money every day. In fact, spending is a part of our life.
Spending may make us happy or unhappy depending on how and why we spend. When we spend money on things that we need and within our limit, it is good. However, when it becomes compulsive behavior, it makes life stressful. Unnecessary spending or spending beyond one’s means has some bad effects. It may lead to financial ruin or debt and create unhappiness within families. People who overspend are never satisfied with what they have. They always rush for brands, fashion items, designer clothes, etc. Over time, it becomes an addiction which may eventually create psychological problems.
Nowadays, consumer items are displayed in stores or advertisements in ways that create a feeling of immediate need for them. We are constantly tempted to buy, use, or consume things even when we do not have a genuine need. We all need to be careful here. Salespersons often encourage customers to buy things by flattering them, saying things like, “This is a perfect match for you,” or “You look so stunning in that dress.” Never forget, they say the same thing to most of their customers. It is better not to be persuaded by such words. They use these words to please the customers because the more a customer buys, the higher the profit is.
Overspending is not only related to shopping but also applies to other activities such as eating out. Many people buy too many items to eat in a restaurant. They can eat only some of them and the rest are wasted. It’s not a responsible attitude. We cannot simply waste food because we have money to buy it.
Young people in a shopping mall often look at an item on display and think, “Oh, I must buy this. I really need this.” They may not have the money needed in their wallet, so they use credit cards. But using them is like taking a loan. If they are not careful, the loans increase, which might lead them to a debt trap.
Sometimes children insist on buying things that their parents cannot pay for without stretching their budget. This may happen because the children’s friends also have them. It’s not fair, as it becomes a burden for the parents.
Finally, don’t get trapped by the glossy advertisements on television or the Internet. You should rather ask yourself, “Do I need this?” The best way to control the habit of spending is not to think, “What do I need?” but “Can I do without it?”
Questions
- How does overspending make life difficult?
- What difference do you notice between ‘I need this’ and ‘Can I do without this’?
- Why does the author discourage buying with credit cards? Do you agree with the author’s argument? Why/why not?
Answer:
- How does overspending make life difficult?
- Answer: Overspending makes life difficult by leading to financial ruin or debt and creating unhappiness within families. It can also result in addiction to spending and psychological problems. People who overspend are never satisfied with what they have and continually rush for brands, fashion items, and designer clothes, which can lead to stress and dissatisfaction.
- What difference do you notice between ‘I need this’ and ‘Can I do without this’?
- Answer: “I need this” suggests a necessity or essential requirement, whereas “Can I do without this” prompts a consideration of whether the item is truly necessary. The former implies an immediate and often emotional reaction to purchasing, while the latter encourages thoughtful and prudent spending, evaluating the importance and necessity of the item before making a purchase.
- Why does the author discourage buying with credit cards? Do you agree with the author’s argument? Why/why not?
- Answer: The author discourages buying with credit cards because using them is like taking a loan, and if not managed carefully, the loans can increase, leading to a debt trap. I agree with the author’s argument because credit cards can indeed lead to overspending and accumulating debt if not used responsibly. It’s easy to spend more than you can afford when using credit cards, and the interest rates can make it challenging to pay off the balance, resulting in financial difficulties.
C. Read the following cases and write an article for the youth page in a newspaper suggesting what should be done.
Case 1: Naila Naila has fifty sets of dresses and still longs for more. She has some dresses that she didn’t wear in the last few months and had no occasion to wear them.
Case 2: Pikul Pikul went to Cox’s Bazar with his family on vacation. He was unhappy because the hotel was not a 4 or 5-star one.
Case 3: Tahnia Tahnia is a true shopper! She feels bad if her parents do not give her all the money she wants to spend. She loves spending more than anything.
Answer:
Article for the Youth Page: Wise Spending Habits
By [Uttchoi Team ]
In today’s world, it’s easy to get caught up in the thrill of buying new things. However, spending wisely is essential to avoid financial troubles and lead a happy life. Let’s look at three cases and suggest what can be done to improve spending habits.
Case 1: Naila Naila has fifty sets of dresses and still longs for more. Some of her dresses haven’t been worn in the last few months and she has had no occasion to wear them.
Suggestion: Naila should focus on buying only what she truly needs. She can start by organizing her wardrobe and wearing the dresses she already has. It might also help her to donate or sell the dresses she doesn’t use. This way, she can avoid unnecessary spending and make better use of what she owns.
Case 2: Pikul Pikul went to Cox’s Bazar with his family on vacation. He was unhappy because the hotel was not a 4 or 5-star one.
Suggestion: Pikul should learn to appreciate experiences rather than focusing on luxury. The quality of a vacation is more about the time spent with loved ones and exploring new places, not the star rating of a hotel. By being grateful for what he has, he can enjoy his vacations more fully without overspending on unnecessary luxuries.
Case 3: Tahnia Tahnia is a true shopper! She feels bad if her parents do not give her all the money she wants to spend. She loves spending more than anything.
Suggestion: Tahnia should try to understand the value of money and develop better spending habits. She can set a budget for herself and stick to it. It’s important for her to realize that spending money isn’t the only way to find happiness. Engaging in hobbies, spending time with friends and family, or learning new skills can also bring joy and fulfillment without the need to spend excessively.
Conclusion: It’s important for everyone, especially the youth, to develop good spending habits. By understanding the value of money and making mindful choices, we can avoid financial troubles and lead happier, more balanced lives. Let’s focus on what truly matters and make wise decisions about our spending.
D. All over the world spending is on the rise. Below is a chart that compares shopping trends in Australia in 2010 with those in 2015. Read the chart and the analysis of the trends and figures that follow.
2010:
- Electric appliances: 27%
- Food & Beverage: 21%
- Home Furnishings: 22%
- Video Games: 19%
- Gift Items: 7%
- Books: 4%
2015:
- Electric appliances: 33%
- Food & Beverage: 22%
- Home Furnishings: 19%
- Video Games: 8%
- Gift Items: 11%
- Books: 7%
The pie charts compare the online retail shopping trends in Australia in 2010 with those in 2015. Overall, electronic products, food and furniture comprised the highest percentage of online sales in Australia in both years.
According to the illustration, electric appliances accounted for 27% of online retail sale in Australia in 2010, which was followed by home furnishing and food and beverage with 22 and 21 per cent respectively. Video games purchased by Australian consumers comprised 19% of total online sales in this year. Finally, gift and book sales accounted for 7% and 4% of online retail sales respectively in 2010.
After half a decade, sales of electric products increased by 5% and comprised one-third of the total online sales in 2015. E-commerce of food and beverage items slightly increased while a nominal decrease could be observed in the trade ratio of furniture. Video games became less popular among Australian online consumers as their sales volume decreased by more than 50 percent while a surge could be noticed in the sale of gift items. Books as online retail products were sold more in percentage terms in 2015 than in 2010.
Answer:
Analysis of Shopping Trends in Australia: 2010 vs. 2015
The pie charts compare the online retail shopping trends in Australia in 2010 with those in 2015. Overall, electronic products, food, and furniture comprised the highest percentage of online sales in Australia in both years.
2010:
- Electric appliances: 27%
- Food & Beverage: 21%
- Home Furnishings: 22%
- Video Games: 19%
- Gift Items: 7%
- Books: 4%
2015:
- Electric appliances: 33%
- Food & Beverage: 22%
- Home Furnishings: 19%
- Video Games: 8%
- Gift Items: 11%
- Books: 7%
Key Observations:
- Electric Appliances:
- The share of electric appliances in online sales increased significantly from 27% in 2010 to 33% in 2015, showing a growing preference for these products.
- Food & Beverage:
- The percentage of spending on food and beverage saw a slight increase from 21% in 2010 to 22% in 2015, indicating a stable demand.
- Home Furnishings:
- Home furnishings saw a slight decrease in their share, dropping from 22% in 2010 to 19% in 2015.
- Video Games:
- There was a notable decrease in the purchase of video games, which dropped significantly from 19% in 2010 to 8% in 2015. This could indicate a shift in consumer interests or advancements in gaming technology and platforms.
- Gift Items:
- The share of gift items in online retail sales increased from 7% in 2010 to 11% in 2015, suggesting that more people are purchasing gifts online.
- Books:
- Books saw an increase in their share of online sales from 4% in 2010 to 7% in 2015, reflecting a growing trend in online book purchases.
Over the five years from 2010 to 2015, there were noticeable shifts in consumer spending habits in Australia. The increase in spending on electric appliances and gift items, along with the decrease in spending on video games and home furnishings, highlights changing preferences and priorities among online shoppers.
E. Work in groups. Make a graph showing the increase or decrease in your family’s expenses on food items, utility bills, transport, and mobile phone charges in the last six months.
Answer:
To create a graph showing the increase or decrease in your family’s expenses on food items, utility bills, transport, and mobile phone charges over the last six months, follow these steps:
1. Collect Data:
Gather the expense data for each category for the last six months. For example:
| Month | Food Items | Utility Bills | Transport | Mobile Phone Charges |
|---|---|---|---|---|
| Jan | $300 | $150 | $100 | $50 |
| Feb | $320 | $160 | $110 | $55 |
| Mar | $310 | $155 | $120 | $60 |
| Apr | $330 | $170 | $115 | $65 |
| May | $340 | $175 | $125 | $70 |
| Jun | $350 | $180 | $130 | $75 |
2. Choose a Graph Type:
For this data, a line graph is a suitable choice to show the trend of expenses over time.
3. Create the Graph:
Use a graphing tool or software (like Excel, Google Sheets, or any other graphing tool) to plot the data. Here’s how to do it in Excel or Google Sheets:
- Step 1: Enter the data into a spreadsheet.
- Step 2: Highlight the data range (including the headers).
- Step 3: Go to the “Insert” tab and select “Line Chart” or “Line Graph.”
- Step 4: Customize the graph with titles, labels, and legends. For instance:
- Title: “Family Expenses Over the Last Six Months”
- X-Axis: “Month”
- Y-Axis: “Amount ($)”
- Legend: Include lines for “Food Items,” “Utility Bills,” “Transport,” and “Mobile Phone Charges.”
4. Interpret the Graph:
Once the graph is created, you can analyze the trends:
- Look at which categories have increased or decreased.
- Note any significant changes or patterns over the six months.
Here’s a simple example of how your graph might look based on the example data:
This line graph will visually represent how each category of expenses has changed over the past six months. By analyzing the graph, you can identify spending patterns and make informed decisions about budgeting and managing expenses.
Unit 3: Life Style : Lesson 1: Manners around the world
Lesson 1 -Unforgettable History