1. Spending: making good use of your income. Define terms: goods, services, consumers and consumption. Distinguish between cash buying and credit buying. Identify the ways and places to buy goods and services. Recognise that incomes can be spent or saved.

2. Spending money is easy. Spending it wisely is difficult! Credit cards. Jan 2002 NZ spent $1186 million using credit cards, but the total amount owed was $3300 million. $2114 million was still overdue!

3. Many ways to buy Goods – items, objects or articles that may be bought or sold. Services – performance of work by people for others. When we make use of these we are consuming.

4. Sometimes we pay the full amount and some times we rely on future income. Cash buying. Credit buying.

5. Cash buying Notes and coins Cheques Eftpos Direct debits Online Layby

6. Credit buying Credit cards Hire purchase Bank overdraft Charge accounts

7. Spend or Save Spending + Saving = Total Income

8. Task 1 Define: goods, services, cash buying, market, consumption, services, credit buying, saving, hire purchase, consumers, credit cards, spending. Explain the differences between spending and wise spending. Give 2 examples each of wise and unwise spending.

9. Task 2 Identify at least 2 specific markets where you could purchase: Old furniture, a suit for a tall man, a plumber, babysitting services, a second-hand car, computer software, frozen peas, fruit. Identify the opportunity cost if you decide to save more of your income. Design a pamphlet for a national bank advising investors on ‘Saving’.