In the current economic landscape, there are fundamental factors associated with spending behaviour, patterns and trends. Borwa Financial Services is an approved financial administrator that strives to improve the financial standing of all of our clients.
In this article, we will be identifying 3 definitive factors that influence spending behaviour. To begin with, it would be important to define what spending behaviour actually is and the core components of it.
Spending behaviour is defined as the act of dispersing money, specifically in response to an action or contextual environment for the satisfaction of needs and wants. There are some broad categories of spending behaviour such as minimalistic, consumer and investor spending behaviour.
- Psychological factors
According to research conducted the main factors which influence spending behaviour trends are psychological categories. The sub-category includes motivation, beliefs and attitudes to money and how it is generated or distributed.
- Social reference and ranking in the community.
Social reference in relation to family responsibility and status in the community is an additional factor to take into consideration. Environmental endorsements and predisposing conditions are also crucial factors that structure the way a consumer spends their money.
- Planning for unforeseen volatility in the market
Uncertainty plays a critical role in the way people spend their money. Investment planning based on market forces and external life circumstances could cause individuals to implement financial planning initiatives for retirement annuity planning.
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