Which of the following is an example of how financial goals change due to a value shift?(1 point)
Responses
buying a new wallet due to wear and tear to your current wallet
buying a new wallet due to wear and tear to your current wallet
moving from the city to suburbs after having children
moving from the city to suburbs after having children
replacing a new phone after losing your old phone
replacing a new phone after losing your old phone
selling your old computer online to have funds for a new computer
moving from the city to suburbs after having children
Which options show a financial goal? Select the two correct answers.(1 point)
Responses
getting a credit card
getting a credit card
paying off a credit card
paying off a credit card
saving for college
saving for college
acquiring a new bike
acquiring a new bike
buying a new video game
The example of moving from the city to suburbs after having children is an example of how financial goals change due to a value shift.
The example that shows how financial goals can change due to a value shift is:
Moving from the city to the suburbs after having children.
To understand why this is an example of a value shift affecting financial goals, let's break it down:
Financial goals are the objectives or targets that individuals set for themselves related to their money, such as saving for retirement, purchasing a house, or paying off debt. These goals can change over time based on changes in personal circumstances, priorities, or values.
In this example, the value shift occurs when someone becomes a parent and priorities change. The person may value a more family-friendly environment, better schools, and a safer neighborhood for their children. As a result, they may decide to move from the city to the suburbs, which could have significant financial implications.
Moving to the suburbs often means higher housing costs, such as mortgage or rent payments, property taxes, and potential commuting expenses. Additionally, living in the suburbs may require adjustments to other aspects of the budget, such as transportation, childcare, or education expenses.
Therefore, the decision to move from the city to the suburbs after having children reflects a change in values (prioritizing family-friendly environment) and subsequently affects financial goals (reallocating funds to accommodate higher housing costs and related expenses).
I hope this explanation helps clarify the example and how it illustrates the impact of a value shift on financial goals.