Read the text again and answer the following questions.

1) Why do the messages we get from our environment seem to defy common sense and contradict each other? 

2) How are the two different groups of customers categorized? 

3) Why does the upright message usually come from school, parents and political figures? 

4) Why does the author say that the permissive message of advertising is something you can’t  escape? 

5) Why does the author say that there is no shortage of ideas and things to buy? 

6) How do people react to the two contradictory but explicit messages? 

7) What can students do to be financially healthy and have no money worries? 

8) What conclusion can you draw from the text concerning money issues? 

Spend or save?

   Spend or save? It was once a fairly straightforward question: You spent money for what you needed and saved the rest.  

  However, nowadays many individuals overstep the limits of their income and accumulate debt. When there is an economic recession, the topic of saving or spending will again be brought to the table. During recessions, production, as measured by gross domestic product (GDP), employment, investment spending, capacity, utilization, household incomes, business profits, and inflation all fall, while bankruptcies and the unemployment rate rise. Recessions generally occur when there is a widespread drop in spending, often following the bursting of an economic bubble. Governments usually respond to recessions by adopting macroeconomic policies, such as increasing money supply, increasing government spending and reducing taxation. 

  Generally speaking, if the economy expands, causing consumer confidence to be higher, consumers will be making more purchases. On the other hand, if the economy contracts or is in bad shape, confidence is lower, and consumers tend to spend less. 

  The text focuses on the paradox of saving or spending, up which an in-depth discussion is launched. It refers to the ability to understand financial matters. More specifically, it refers to the set of skills and knowledge that allows an individual to make informedand effective decisions through their understanding of finances. Financial literacy classes that cover topics such as budgeting, saving, investing, borrowing and fraud prevention teach people about responsible money management.