Module: Personal Finance
Lecture 2 – Expenses & Budgeting
Learning Objectives
To understand the power of budgeting
The theories behind our spending decisions
Different types of budget
How to prepare a budget
How to use a budget to gain control over your finances and meet objectives
How to make sure that your income covers your expenses
Conspicuous Consumers
This term refers to people who prefer goods and services because they are
more expensive.
It’s all about social status
Purchase of goods and services for the specific purpose of displaying one’s
wealth
If it’s not expensive, they don’t buy it.
Symbolic Consumers
This term refers to consumers who are concerned about what others think of
them and that the opinions we hold about other people are based partly on
what they consume and the material things they own (Veblen 1925)
They want people to form an idea in their head about who they are
Bourdieu (1977): How one spends money is an attempt to distinguish oneself
from those in lower social classes
Sacred Consumers
This term refers to consumers who save up money for events out of the ordinary
(special occasions like a holiday). Also known as suffer now, enjoy later.
Profane Consumers
Refers to events that are part of everyday life – ordinary & mundane.
Compulsive Consumers
Lecture 2 – Expenses & Budgeting
Learning Objectives
To understand the power of budgeting
The theories behind our spending decisions
Different types of budget
How to prepare a budget
How to use a budget to gain control over your finances and meet objectives
How to make sure that your income covers your expenses
Conspicuous Consumers
This term refers to people who prefer goods and services because they are
more expensive.
It’s all about social status
Purchase of goods and services for the specific purpose of displaying one’s
wealth
If it’s not expensive, they don’t buy it.
Symbolic Consumers
This term refers to consumers who are concerned about what others think of
them and that the opinions we hold about other people are based partly on
what they consume and the material things they own (Veblen 1925)
They want people to form an idea in their head about who they are
Bourdieu (1977): How one spends money is an attempt to distinguish oneself
from those in lower social classes
Sacred Consumers
This term refers to consumers who save up money for events out of the ordinary
(special occasions like a holiday). Also known as suffer now, enjoy later.
Profane Consumers
Refers to events that are part of everyday life – ordinary & mundane.
Compulsive Consumers
