8 Chapter 1 Personal Finance: An Overview
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clothing, and shelter. You also have psychological needs for a sense of safety,
security, love, acceptance, approval, and success.
Wants are the things you would like, but they are not things that are
essential. For instance, you may want the latest smartphone or a ten-speed
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want is something you can do without.
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to making spending decisions, how would you treat needs differently than
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Values
Values are your beliefs about what is important and desirable. 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
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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. If all of this seems a little vague, make a list of things
you think are most important in your life today. These will be your values.
When you give the list some thought, you will probably find that your family,
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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 your
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school performance may score high in your value system. If so, you will try
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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. Can you think of other actions that
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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.
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from your employer, surfing the Internet on company time, or returning
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Ethics are the moral
principles or beliefs that
direct a person’s behavior.
Ethics often conform to
accepted standards of
right and wrong. They
are the set of rules that
define what is wrong and
right. Ethics help people
make good decisions
in both their personal
and professional lives.
Business ethics are a set
of rules that help define
appropriate behavior in
a business setting. It is
important to apply ethical
behavior in your personal
and business life.
Ethics