Consumerism And Consumerism

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Recommended: Chapter 17 financial literacy

Consumerism: Economist use the term "consumerism" in relationship to finances to express the practices and procedures covering consumption of goods and services based on the concept of trading monies. Coupled with cultural trends, a point to consider is the ways of advertising impacting consumer’s choices (Novotney, 2008, p. 40). Financial literacy: Financial literacy refers to the ability to understand how money works in the market world and how a contributor manages to earn it or spend it, how to track it, how to invest it (turn it into more) and how that person shares it to help others. Basic level of financial knowledge: refers to a set of skills and knowledge that allows an individual to make informed and effective decisions considering all …show more content…

The poll, commissioned by Fifth Third Bank and conducted by Research Now, found that 90% of Americans did not know that individuals under age 50 can contribute up to $18,000 a year to a 401(k) plan, that out of the 57.9% surveyed who said they were financially savvy, only 38.5% knew the annual percentage rate (APR) on their primary credit card, and out of all 60% didn 't have enough savings to survive for at least six months. Of those 1,068 responses surveyed, 55.8% knew what a credit score measures. Knowledge of purchasing power: Consumer “purchasing power measures the value in money for which consumers may purchase goods or services” (Garman & Forgue, 2000, p. 9). It is related to the standard of living, the rate of inflation, income, our ability to buy and other. The standard national survey conducted by the Bureau of the Census for the Bureau of Labor Statistics measures the prices of goods and services by recording the rise or fall in prices of a number of chosen items for a specific period of time, to provide the best estimate of consumer purchasing

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