Beliefs are more specificand detailed than values.
It is more about how people think things are rather thanwhat people think things should be. Beliefs can be religious but can also beabout things like freedom of speech, discrimination. A type of belief is ‘absolute’belief, an example of thisBeliefs:Values are feelings or beliefsabout certain behaviour or goals. They involve the two concepts of ‘good’ and ‘bad’and peoples’ opinion on certain things. Values complete two functions withregard to buying financial products.
They help to clarify the differencebetween what they consider to be needs and what they consider to be wants, andthey also help to form aspirations. Values help people to decide what their approachto financial matter are. For example, teenagers have to real need for money butthey spend their money on going out, clothes and phone top-ups. Whereas olderpeople, like adults are more likely to have a savings approach to theirfinances.Values:Internal factorsthat influence needs, wants and aspirations· Insurance· Longer-term borrowing· Pensions· Investments· Medium to long-term savingsThe main satisfaction types of medium to long term needs,wants and aspirations are:Satisfying needs,wants and aspirations· Ability to afford products· The size of their family· How they were being brought up· Their lifestylePeoples needs change according to: Life Cycle Stage Typical Events Needs Wants Aspiration Birth and infanthood (0-2 years old) Birth Learns to walk Learns to talk Warmth Safety Food Shelter Love Attention N/A Childhood – Preschool (2-5 years old) Nursery and preschool Makes friends Learns through play Develops communication skills Warmth Safety Food Shelter Love Attention Toys Treats Bigger and better toys Childhood – school (5-12 years old) Starts school Makes longer-term friends Learns skills such as reading and writing Warmth Safety Food Shelter Love Attention Toys Treats Fashionable clothes Music Fame Particular careers Independence Teenager (13-19 years old) Puberty and adolescence School tests and exams Goes to college or sixth form Learns to drive Develops closer relationships with peers and adults outside the family Starts a part-time job Warmth Safety Food Shelter Love Attention Social interaction Fashionable clothes Music Transport (bicycle; scooter; motorbike; car) Material wants, such as the latest mobile phone and electronic goods Fame Fortune Love Independence Self-expression Young adult (18-25 years old) Goes to university Moves away from home Qualifies Starts a full-time job Remain the same, but may have to be provided from the young person’s own (limited) income Own possessions, e.
g. furniture, car An income to pay essential bills and for entertainment, etc Love Holidays Cars Own home Own business Mature adult (26-40 years old) Career promotions Career changes Marriage or civil partnership Children Buys property Takes on a mortgage Children’s needs may take priority Bigger home More space Material goods Linked to children’s futures, especially education Health and happiness Children Career promotions Security Middle age to late middle age (41-60 years old/55-65 years old) Career promotions Careers changes Children leave home Pays off mortgage Early retirement Retirement Don’t change, but many need others to help to provide them – especially health needs Comfort Security New experiences, such as travel, new sports and hobbies Voluntary or charity work Material luxuries, e.g. cruise, luxury car Quiet life Security Old age/retirement (65 onwards) Part-time job Leisure interests and hobbies Care Help Support Safety Security May be aspirations for children, or grandchildren, to settle, marry and do well · Teenager – Needs shelter etc· Baby – Needs to be fedDifferent needs for different stages of the life cycle e.g.:· Drink· Food· Shelter· Clothes· MoneyNeed:· Aspiration = What you wish to have one day· Want = Something you can live without· Need = Something that is essentialTopic 1