Question: This chapter explains how consumers may make purchases, that they cannot afford, in order to keep up with their friends. This could prevent them from

This chapter explains how consumers may make purchases, that they cannot afford, in order to keep up with their friends. This could prevent them from allocating any funds toward all the other financial planning functions, such as liquidity, insurance, investments, and retirement planning. Are your spending decisions influenced by the need for immediate satisfaction or by peer pressure? Or are your spending decisions influenced more by the desire to avoid debt? What factors have the most influence on your spending behavior?

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