//Seven Categories of Spending//

*Study Guide for Quiz*

Seven Categories of Spending

  • There are seven different types of spending that I will list off

Convenience Purchase

Things and services to make life easier or to save time and hassle, like fast food restaurants, vending machine, public transportation, computers, and phones.

Guilt Purchases

This category is similar to traditional purchases, but the irrational motive here is guilt. Gifts are given because you believe you have to give them in order to meet others’ expectations: weddings, showers, birthdays, etc.

Required Purchases

these are items you need to maintain life or to prevent physical misery. Included are basic food, shelter, medical care, basic clothing and taxes necessary to sustain life.

Ego Purchases

This category is really an evil spin-off of the pleasure purchase category. Ego purchases are those made solely for the sake of showing off, as status symbols: An over-sized home, an expensive sports car, a giant plasma TV, name brand fashion items. These all come with at a big expense, and some with monthly payments that quickly drain your pockets.

Pleasure Purchases

goods or services purchases to bring fun, excitement, happiness, and intellectual stimulation into your life. (plays, Adventureland, Concerts, et.c)

Investment Purchases

These investments help to prepare you for the future. Included in this category are savings and checking accounts, stocks, bonds, 401k, retirement accounts and other means available for storing your funds

Traditional purchases

This is a category that includes any purchase made without rational thought simply to be “normal”. These expenditures make it so you’ll “fit in” - the “good” chine, large china cupboards, antique furniture, buffets (furniture), curio cabinets, etc.