Who affects our choices of what we buy? Syracuse High School Financial Literacy Course

Types of Influences Cultural Social Emotional Language, the way someone is raised, geographic location Social Peer pressure, fads, marketing, advertising Emotional Binge spending, comfort shopping, fear of making a decision

Peer Pressure The influence others have on an individual’s personal decisions.

Forms of Peer Pressure as it Relates to Purchasing Decisions Friends Newspapers Magazines Yellow Pages Direct Mail Commercials Internet Ads

Emotional Factors Related to Peer Pressure Fear Clubs Athletics Cliques Rich/Poor Gossip Acceptance Disapproval Insecurities Boyfriend/Girlfriend Sarcasm

Limited Financial Resources Tommy is 17 and lives with his single mother who is unemployed. Tommy works at the video store after school and on weekends to help her pay rent. Prom is in three weeks and he really wants to take his girlfriend. However, his paycheck is barely enough to cover the necessities for him and his mother. What are the sources of pressure that Tommy is feeling? What would you advise Tommy to do? What would you do?

Scarcity -Consumer Economics & Education “Scarcity is an economic principle stating that because of limited resources, an economic system cannot possibly produce all the goods and services that people want; therefore, choices must be made about how the limited resources will be used.” -Consumer Economics & Education

Marketing, Advertising and Sales Strategies/Techniques People who sell products and services are “phishing” for customers. They lure them in with sales, coupons, and other enticements. Unlike fish, consumers can benefit in this situation – if they know how to take advantage of special purchasing opportunities.

Examples of Marketing, Advertising and Sales Strategies Clearance Sales Holiday Sales Coupons Rebates Sweepstakes Contests Sales People Attractive Décor Background Music Items purchased most often are in back of store (bread/milk) Most profitable items are given prominent positions

Opportunity Cost Refers to what a person gives up when a decision is made. This cost, often called a trade-off, may involve one or more of your resources: Time Money Effort

Thinking Critically About Ads In what ways is this ad trying to influence me? How is it trying to reach my emotions? Am I being given all of the facts? What does the advertisement NOT tell me about the product? What does the fine print say? Does this advertisement sound too good to be true? Where are ads found?