7 Categories of Spending

by Ella Stafford

Required Purchases

Purchases that are a necessity to human life, and to stop physical anguish.

Example: Food, shelter, medical care.

Investment Purchases

Things you purchase to invest in your future, or secure your future.

Example: Savings, checking accounts, stocks, and bonds.

Pleasure Purchases

Things you purchase to bring happiness, excitement, and fun to your life.

Example: concerts, toys, plays, etc.

Convenience Purchases

Purchases to make your life better and easier. They also help save time and money.

Ex. Vending machines, fast food restaurants, cell phones, etc.

Ego Purchases

Similar to the pleasure category, except these purchases you might not enjoy because their main purpose is to show off, like a status symbol.

Ex. expensive sports car, name brand fashion items, over-sized home, etc.

Traditional Purchases

These purchases almost are irrational, things that are "normal" or will help you fit in with your family/community.

Ex. Good China sets

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Guilt Purchases

These are also irrational purchases, but moved by guilt in order to buy something to live up to a standard or expectation.

Ex. Weddings, baby showers, birthdays.