Purchases
From Open Risk Manual
Definition
Purchases. In the context of the Financial Competence Framework, Purchases is a topic in the Money And Transactions subject matter domain.[1]
Competences
Mastering the role of Purchases in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 58 | Understands that money spent to purchase a certain good or service is no longer available for something else [the concept of opportunity cost] | Knowledge |
| 59 | Understands that irreversible costs made in the past should not influence purchase decisions today [applying the concept of sunk cost] | Knowledge |
| 60 | Knows that there can be substitutes for products, in some case including second-hand or refurbished ones, and services that may cost less than the one originally identified | Knowledge |
| 61 | Knows that there can be complementary products and services necessary to use certain products or services | Knowledge |
| 62 | Knows applicable consumer rights when making purchases, especially online (i.e. return policies, information disclosure) | Knowledge |
| 63 | Recognises that adverts, special offers and the media can have a powerful impact on one’s perceived desirability of particular purchases | Knowledge |
| 64 | Considers the overall value or utility of a potential purchase as well as its price | Skill |
| 65 | Where relevant and provided for in law, returns purchases made online or through other types of distance selling within the timeframe specified by law for a full refund. | Skill |
| 66 | Develops strategies to avoid or minimise overspending, impulsive shopping and other unintended consequences of advertising and social pressure | Skill |
| 67 | Takes steps to make informed purchases | Skill |
| 68 | Considers sustainable alternatives to new purchases, such as reusing and recycling | Skill |
| 69 | Confident to use the right to return purchases made online or through other types of distance selling, within the timeframe specified by law for a full refund, where relevant and provided for in law | Attitude |
| 70 | Confident to say no to a sales offer that is unsatisfactory or unwanted, including online offers (i.e. pop-ups, online ads) | Attitude |
| 71 | Confident to resist pressure to make unplanned purchases | Attitude |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
