Copyright Goodheart-Willcox Co., Inc. 8 Chapter 1 Financial Literacy Basics A consumer is an individual who purchases goods and services for his or her own use. Goods are tangible items that can be touched, used, and purchased, such as food or clothing. Services are intangible activities that another person usually performs for a fee, such as house cleaning or completing tax returns. Goods and services are purchased to meet a person’s needs and wants. Values Values are principles and beliefs that a person considers important. They influence the way you live and think as well as your decisions and behavior. Values differ from person to person. Important values for many people relate to family, friends, good health, meaningful work, financial security, and inner peace. Your values govern and direct your life even if you are unaware of them. Identifying and choosing your values deliberately can give you a sense of direction and control. To identify your values, make a list of things you think are most important in your life today. When you give the list some thought, you will probably find that your family, friends, education, and life experiences all influence your list of values. As you meet new people and have new experiences, what is important to you may change. As life unfolds, your values may change, too. Some become more important and others less so. As you make decisions and choices, you eventually create a value system. A value system is the overall structure of values and goals that guides a person’s behavior and provides a sense of direction in life. For example, good school performance may score high in your value system. If so, you will try to participate in class, complete your homework, and prepare for exams. If loyalty to friends is high in your system, you will help your friends when they need you. If popularity ranks higher than loyalty, you may find it difficult to stand by an unpopular person or cause. Ethics Ethics are the moral principles or beliefs that direct a person’s behavior. Ethics often conform to accepted standards of right and wrong. Ethical behavior calls for honesty, fairness, reliability, respect, courage, tolerance, civility, and compassion. These and other qualities make our lives with each other peaceful and safe. Ethical behavior is important not only in personal relationships but also in businesses and government. Unethical behavior is usually considered wrong and is sometimes illegal. It includes things such as cheating on an exam, stealing office supplies from your employer, surfing the Internet on company time, or returning merchandise to a store for a refund after using it. Kzenon/Shutterstock.com A person’s family often influences his or her values later in life.