As you learned in this section, spending money is easy, but spending money wisely is not always so easy. In fact, the more control you have over your money, the more you will have to face challenging situations where you will have to decide how to spend your money.
In this section you learned how to differentiate your needs and wants, and how you can effectively use a budget to manage your spending habits. Also remember to do your research before you spend your money, logical decisions based on this research will yield high quality results. Understanding the different ways you can purchase an item, such as borrowing vs. using cash can decrease the total cost of the item in the long run. Furthermore, always keep in mind that the government has created mechanisms to protect you in case you feel that a purchase was fraudulent or low in quality. Please review the opportunity cost analysis when you are making a purchase, it will be another tool that will serve you well when making serious spending decisions in your life.
The last step to complete the Spending Head Matters section is to test your knowledge with a quiz. Just click "Next" to begin your quiz.
Used with permission. Personal Decision Making: Focus on Economics, copyright © 1996, Council for Economic Education (formerly National Council on Economic Education), New York, NY. All rights reserved. For more information visit www.councilforeconed.org or call 1-800-338-1192.
Used with permission. Financial Fitness for Life, copyright © 2001, Council for Economic Education (formerly National Council on Economic Education), New York, NY. All rights reserved. For more information visit www.councilforeconed.org or call 1-800-338-1192.
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