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Studies and Review of Related Literature: Immaculate Conception Seminary Academy Page
Studies and Review of Related Literature: Immaculate Conception Seminary Academy Page
CHAPTER 2
This chapter presents the review of literature that are related to the
subject matter of this research. These literatures were taken mostly from
websites on the internet and some are on journals, books and other
Spending habits are often contextual. You spend the same way with the
You always spend a lot of money right after you get paid. That might
You always wait until the last minute to buy a plane ticket.
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Where do our spending habits come from? It varies, but we are largely
when visiting a relative, you may do that too. However, you may not
even realize it’s not what everyone does (Faith Based Organizations,
2018).
spending habits are normal. One culture may always spend lavishly on
a weeding while another culture may not spend much at all. An Asian
Someone raised in great wealth may have spending habits that are
Educators, 2018).
Our own unique personalities and experiences also play a role. Two
spending habits. One might be a hoarding saver while the other may
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and the gender roles one sees and perceives (Counselors, 2018).
The media also has a role in how we spend and save. Think about the
Imagine the path a river wears into the earth. Every day the river follows
the same path. It takes a dramatic or catastrophic event to change the course
of the river. In much the same way, we habituate ourselves to how we spend
and save. Over time it becomes more and more difficult to change a habit
because that habit has become more and more natural. The challenge of
behavior change. People often try to change their behavior. One of the most
common behavior changes people seek is dieting. If you’ve spent years and
years eating the same way. It is very difficult to change that pattern. That’s
true even if you want to change, know you should, and even if you
2019).
understanding.
What you spend, it is also important to understand, why you spend the way
you do. It means not just doing a budget and recording your spending. It also
means examining all the factors above to put your spending habits in context.
You can’t change what you don’t understand. Money habitudes helps people
Educators, 2020).
Whether its financial education for adults or teens, no one likes to just
sit at a desk and listen to a lecture. Same thing goes for worksheets
and Power points. People find many typical learning and assessment
about their spending and to talk about the way they spend and save is
discussing and explaining how and why they spend the way they do.
(Military, 2020).
them. Often people discover that they spend with restraint when out
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with one friend but spend with reckless abandon hen out with
There are various reasons and influences that affect the spending habits of
people. Among others, the following are the factors that influence habits of
spending.
1. Ethnicity
around them, their place in it, and how they make decisions, it tends to play a
in what size. But others are more subtle. Cultural elements such as time
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orientated than western ones but that doesn’t mean there aren’t Indian
Western ones that don’t think collectively. But culture never really quite goes
away. Anyone that violates cultural norms will be sanctioned by their wider
social group, whether they choose to resist that pressure or not. Individuals
are rarely uninfluenced by this effect and it will affect their behavior. To
some extent, culture is simply what comes most naturally to a person – what
fits within their values and belief systems, and what they see others around
them doing. Culture influences what feels right, normal and desirable.
Retailers that ask consumers to swim against the social current are making it
harder for the consumer to choose their services. It’s usually better practice
to make it possible and easy for consumers to choose your product within
2. Gender Differences
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Hayhoe, Leach, Turner, Bruin and Lawrence (2000) study the relationship
credit attitude, and number of credit cards with a balance (Hayhoe et al.,
with regards to gender. Hayhoe et al. (2000) survey college students over the
age of eighteen from six different public universities. The sample consists of
an even split between males and females, the majority of which are full-time
students (Hayhoe et al., 2000). To analyze the results, the researchers use a
logistic regression analysis when studying the effect of credit purchases and
al., 2000). Afterwards, Hayhoe et al. (2000) use a path analysis model to
where all paths are initially specified, followed by a restricted model, where
they only include significant paths (Hayhoe et al., 2000). Results show that
credit attitudes and number of credit cards differed by gender (Hayhoe et al.,
the ways men and women vary in their financial habits. Females tend to use
credit cards on appearance goods, like clothing, while males use credit cards
for electronics, entertainment and food (Hayhoe et al., 2000). Women are
However, both genders feel that overall, they do a good job managing their
finances (Hayhoe et al., 2000). The shortcoming of this study is the lack of
significant effects among other studies in the field and is also a variable
included in the model used for this study. While there was a large sample size
individuals that were captured by this study, which may provide further
money attitudes and credit card debt, women report having a self-imposed
Norvilitis et al. (2006) and Hayhoe et al. (2000), Roberts (2000) finds that
women have been raised and enculturated to find satisfaction from shopping.
for 17 females may only be greater than that of males in the context of
in Texas. The student body of Baylor University may attract many students of
this religious demographic, which can hold certain beliefs towards spending
denominational university where this religious aspect would not have been
an issue.
3. Demographic Factors
from person to person based on his age, income, sex, education and marital
status. You can easily notice the difference between the buying decisions and
A person with high level income makes big ticket purchases whereas one
from lower economic strata makes small ticket purchases. These factors are
evident at the surface. However, there are several factors affecting buying
Pratap, 2019).
Age
Age does not just affect buying behavior, it is also an important factor
their target market on the basis of age. There are several products that are
marketed only to the millennials. Similarly, there are products meant for the
elderly and which meet the needs of people past their middle ages. Lifestyle
gadgets and magazines are mostly marketed to the youth or the millennial
generation. Since, the taste of this generation is vastly different and they are
more digitally inclined, this affects not just the choice of marketing strategy
but also the marketing channels used to market to them. People’s choice of
brands and products start changing as they grow older. A young man’s
choices can be vastly different from the elderly since age brings changes that
affect our flavor. An older person may have more serious choices and will be
less fun loving than when he was young. Chocolates are meant for kids and
young people. Their consumption among the elderly is much lower. Age
determines several things and when we retire our consumption patterns also
change according to the change in income. Elderly people are less digitally
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lower.
Income
Income is a very important factor that affects the buying decisions and
in product choices and buying patterns can easily be marked. A person in the
middle class makes his buying decisions based on utility. However, someone
from the upper class would want style, design and special features while
making a purchase. The channels for the marketing of luxury items are
different from those for the ordinary ones. Luxury items are mostly marketed
income will spend more on luxury or lifestyle items. People with higher
disposable income also spend more on vacations and tours. Customer service
and after sales support also become important factors when it comes to big
ticket purchases.
Education
Education affects how people view things around them. It affects the level
of discretion they employ while making purchases. In this era, education has
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also become the determinant of social class and the easiest method to climb
up in the society. The more educated a person is, the higher the level of
change with education. Every customer is well informed in this era. However,
the more educated ones take more time before deciding a purchase.
Education affects a number of things including the fashion you wear and the
programs you watch. It affects even your choice of stationary and the
magazines you are reading. It is why same ads do not work with all
customers. Highly educated customers look for information and do not rely
on ads alone. They question the information served before them. If observed
educated customer would weigh his options carefully before going for a
purchase.
It’s easy to put off analyzing your spending habits because it seems like a
daunting task. It can also be quite eye opening to see just where your money
is going, and how much you are spending on certain things. However, if you
don’t do it then you will be completely blind to your spending habits. It’s
difficult to try and save money when you don’t know where your money is
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going. There are so many benefits in analyzing your spending habits, (Derek,
2014):
Opportunities to save
potential opportunities to save. You can look at the long list of your outgoings
and identify things you really don’t need. Looking at your spending also
forces you to make a note of how much you are paying for bills. If you are
paying a lot for things like car insurance or energy bills then you can look at
the possibility of switching providers to get a cheaper deal. Once you have
identified ways to save you will start noticing a difference. It’s definitely
worth discovering ways to save money, because everyone can use a bit of
extra cash.
By looking at you spending in detail you can get a more realistic outlook of
what you can and can’t afford. Therefore you won’t be spending money blind
and not really know whether you can afford things or not.
When you break your spending down into different categories you will see
where you are spending the most money. Break your finances down into
groups such as food, bills, entertainment, fuel, and clothing etc. so that you
If you have no idea how much money you are spending and what you can
afford then it becomes impossible to plan for the future. It’s important to set
future financial goals so that you feel like you have something to aim for and
things to look forward to. Work out how much money you would have to
save and how long it would take to be able to buy the things that you want in
life.