SECTION 1 MONEY The Personal Life Cycle, Needs& Wants Mr Tarn GCSE ECONOMICS: UNIT 11

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The Personal Life Cycle, Needs& Wants

Mr Tarn

GCSE ECONOMICS: UNIT 11

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Aims of today’s lesson …

• Identify the different stages of the personal life cycle

• Analyse the difference between needs and wants

• Evaluate how needs and wants change over the personal life cycle

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• Most people will experience leaving home, working, establishing their own families and retiring

• This is known as the personal life cycle

• Throughout the cycle incomes, needs and wants change significantly....

Personal Life Cycle: stages

Childhood(0-12)

Adolescence (teenagers)

Young Adult

Middle Adult (Middle Age)

Late Adult (Old Age)

Personal Life Cycle

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Key milestones in the personal life cycle

• Important events (‘milestones’) in the personal life cycle will affect our finances– Leaving school– Gaining employment– Promotion– Unemployment– Retirement

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How the government affects stages of the personal life cycle

• There are many points in people’s lives when they may need additional financial help from the government.

• This is provided through the benefits system:– Education Maintenance Allowance (EMA)– Tax Credits (reduces income tax that low-paid workers have to pay)– Jobcentre Plus offices provide benefits and services to help people to

find work (Jobseeker’s Allowance), start their own business, help individuals manage in low-paid jobs or help with work-related accidents or illness

– Pensions

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Over to you...

• Open and compete the document called...

“Your personal life cycle”

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What is the difference between needs and wants?

• Needs are those things people need to survive

• Wants are the things that make life more enjoyable and also change as circumstances change

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What is the difference between needs and wants?

• At all stages of the personal life cycle, incomes are likely to be limited; as such we say income is a ‘SCARCE RESOURCE’

• Needs and wants, however, are likely to be UNLIMITED

• People have to decide between the purchases that are essential (NEEDS) and those that are not (WANTS)

• For example, one needs clothes, but one may not needs designer clothes

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Over to you...

• Open and compete the document called...

“Needs and Wants”

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Starter Activity...drag n drop

• Open the link found on the document called...

“Drag n Drop”

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Video case study...

• Watch the TV programme called ‘Paying your own way’

• It looks at the difference between wants and needs

• Be prepared to answer questions on what you see!

Paying your own way

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Over to you...

• Open and compete the document called...

“Video Case Study”