section 1 money the personal life cycle, needs& wants mr tarn gcse economics: unit 11
TRANSCRIPT
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The Personal Life Cycle, Needs& Wants
Mr Tarn
GCSE ECONOMICS: UNIT 11
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Aims of today’s lesson …
• Identify the different stages of the personal life cycle
• Analyse the difference between needs and wants
• Evaluate how needs and wants change over the personal life cycle
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• Most people will experience leaving home, working, establishing their own families and retiring
• This is known as the personal life cycle
• Throughout the cycle incomes, needs and wants change significantly....
Personal Life Cycle: stages
Childhood(0-12)
Adolescence (teenagers)
Young Adult
Middle Adult (Middle Age)
Late Adult (Old Age)
Personal Life Cycle
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Key milestones in the personal life cycle
• Important events (‘milestones’) in the personal life cycle will affect our finances– Leaving school– Gaining employment– Promotion– Unemployment– Retirement
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How the government affects stages of the personal life cycle
• There are many points in people’s lives when they may need additional financial help from the government.
• This is provided through the benefits system:– Education Maintenance Allowance (EMA)– Tax Credits (reduces income tax that low-paid workers have to pay)– Jobcentre Plus offices provide benefits and services to help people to
find work (Jobseeker’s Allowance), start their own business, help individuals manage in low-paid jobs or help with work-related accidents or illness
– Pensions
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Over to you...
• Open and compete the document called...
“Your personal life cycle”
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What is the difference between needs and wants?
• Needs are those things people need to survive
• Wants are the things that make life more enjoyable and also change as circumstances change
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What is the difference between needs and wants?
• At all stages of the personal life cycle, incomes are likely to be limited; as such we say income is a ‘SCARCE RESOURCE’
• Needs and wants, however, are likely to be UNLIMITED
• People have to decide between the purchases that are essential (NEEDS) and those that are not (WANTS)
• For example, one needs clothes, but one may not needs designer clothes
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Over to you...
• Open and compete the document called...
“Needs and Wants”
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Starter Activity...drag n drop
• Open the link found on the document called...
“Drag n Drop”
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Video case study...
• Watch the TV programme called ‘Paying your own way’
• It looks at the difference between wants and needs
• Be prepared to answer questions on what you see!
Paying your own way
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Over to you...
• Open and compete the document called...
“Video Case Study”