Beliefs lifestyle Peoples needs change according to: Life

                Beliefs are more specific
and detailed than values. It is more about how people think things are rather than
what people think things should be. Beliefs can be religious but can also be
about things like freedom of speech, discrimination. A type of belief is ‘absolute’
belief, an example of this

Beliefs:

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Values are feelings or beliefs
about certain behaviour or goals. They involve the two concepts of ‘good’ and ‘bad’
and peoples’ opinion on certain things. Values complete two functions with
regard to buying financial products. They help to clarify the difference
between what they consider to be needs and what they consider to be wants, and
they also help to form aspirations. Values help people to decide what their approach
to financial matter are. For example, teenagers have to real need for money but
they spend their money on going out, clothes and phone top-ups. Whereas older
people, like adults are more likely to have a savings approach to their
finances.

Values:

Internal factors
that influence needs, wants and aspirations

·        
Insurance

·        
Longer-term borrowing

·        
Pensions

·        
Investments

·        
Medium to long-term savings

The 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 lifestyle

Peoples 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 fed

Different needs for different stages of the life cycle e.g.:

·        
Drink

·        
Food

·        
Shelter

·        
Clothes

·        
Money

Need:

·        
Aspiration = What you wish to have one day

·        
Want = Something you can live without

·        
Need = Something that is essential

Topic 1