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Basics Beginner: Things to Ask Yourself about Large Purchases

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1.
A luxury item is typically a _______.
Choose wisely. There is only one correct answer.
Want. Luxury items are typically not necessities and are therefore wants.
2.
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.
3.
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.
4.
One advantage of buying a major purchase used instead of new is that you dont need to wait until youve saved up the money for the new one.
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True. Not only can you have it now and save money, but with some items you can get some kind of warranty.
5.
What is perhaps the best way to decide if a purchase is a major one?
Choose wisely. There is only one correct answer.
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.