I intend to investigate the importance of making wise money choices to manage household finances because I am familiar with this issue and understand that family life will often lead to numerous expenses such as ; utility bills, shopping for food and the holidays e.g. Christmas.
Secondly, I wish to know if household budgeting is popular in my local area and how it influences the spending habits of a family. I want to determine if families monitor and control their spending and are aware of the importance of budgeting. In addition, I will investigate their saving methods and what emergency funds they have in place, at the same time finding out whether they prioritise their needs over wants.
Through discussion in class I am aware that learning to manage finances will bring a positive impact and allow the consumer to anticipate and expect their expenditure and will also help them to avoid debt. We have also learnt the many payment options and the advantages and disadvantages of using them. I would like to determine which payment option is most commonly used in households and as a result which one is most beneficial in the long term. I would also like to know if consumers shop around for better deals and are conscious of the consequences of not managing their finances effectively. I am interested in the issue because due to the recession many families have had to use strategies to budget and effectively manage money. I would like to identify which strategies families use to efficiently manage their finances.
I have chosen a topical issue to explore because in recent years, the amount of people in debt has been rapidly increasing as a result of poor money management and overspending on what can be afforded. Not only this, but many families often struggle with handling their finances. Furthermore, I believe that the increase of credit cards and loans which are becoming available play an extensive role in the increasing debt. Credit cards provide a temptation many people cannot resist; which in many cases leads to financial despair. This is why I feel and would strongly urge people to manage their money wisely and effectively as it is crucial for abstaining debt or other financially related problems.
I intend to ascertain if these factors have a positive impact on the family budget and how the outcome of this may affect their future spending. To complete my investigation, I will use a range of secondary sources including magazines, newspapers, the internet and books. I will collect viewpoints from members of a household by means of a questionnaire.
