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Basics Beginner: Things to Ask Yourself about Large Purchases

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1.
What is perhaps the best way to decide if a purchase is a major one?
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The best way to decide if a purchase is major is by considering either how long the product will be of value and/or how much the product costs, and/or if it is already part of your budget. Family budgets can often be compared to those of small businesses.
2.
Which of the following are advantages of buying used rather than new?
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All of the above. There are even more advantages than these; for example, you might still get some kind of a warranty.
3.
Which of the following are conditions for determining whether a purchase is a major one?
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All of the above. People use any or all of these to determine whether something they want to buy qualifies as a major purchase.
4.
A luxury item is typically a _______.
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Want. Luxury items are typically not necessities and are therefore wants.
5.
It can be wise for an inexperienced credit card user to make a large purchase with a credit card.
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True. The purpose of making such a purchase is to establish credit; the user should make sure to have to funds to pay it off.