Financial Health in a Capitalistic Society: Needs vs Wants

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Why is it important that we be financially healthy? Does it matter if we choose our wants over our needs? Well in fact it does when one spends more than what their income can afford. One sometimes chooses their wants over their needs. The finance choices of wants and needs are effected in a capitalistic society, which also effects our active roles and behavior. We are persuaded in ways through marketing 's of businesses, sports, and supply and demands. These types of marketing has people buy their products, and in the long run have them in debt. A capitalistic society’s motives and research of demography, are ways to determine what the consumer like. Survival ties in with the ideologies, Johari Window and Maslow 's Hierarchy of Needs, which …show more content…

He constructs a pyramid of five tiers: psychological, safety, esteem, belonging and self-actualization. The first tier, psychological, are the basic deficient needs of our survival, needs such as: food, shelter, water, and clothes. The next elevated tier is to have safety. This tier involves being secure with your finances along with the stability of a home. After this tier comes belonging which describes to have the feeling of belonging from social needs of love friendship, family, and attachments. Belonging helps decrease in depression and loneliness because you’re accepted with involvements of love. These involvements brings to the next tier, esteem. This tier recognizes the ambitions of a person, as explained by Maslow, for feeling respected and appreciated. Esteem in this aspect helps with our personal worth. The highest tier of the pyramid is self-actualization. This tier is worried only on personal growth by fulfilling ones potential, to not care of the opinions of …show more content…

An example can be the new arrival of the iPhone 6. Strong performance out of the gate is not much of a surprise, given that the iPhone 6 broke preorder records for Apple, with more than 4 million preorders placed in under 24 hours (Makuch). Demand is higher for the next-generation iPhone than for the iPhone 5S and 5C in 2013 (Herbert). These kinds of materials effects our mindset from feeling our wants are our needs, and therefore effects the tier of psychological. These people’s lives are put to risk missing out on days to camp out for the new iPhone 6. Credit cards are also an affect to bring one more in debt, since they know that most of the things they want can’t be afforded. Credit cards crude in interest and take over when one can’t pay the money back. From falling into debt one’s esteem lowers because their survival is through credit

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