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Critical Reasoning

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Submitted By cenleolow
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Critically assess the claim that it is better to enjoy your money when you earn it than saving your money for sometime in the future.

It is all about the money. That is what everyone talks about these days to the extent of even having a television network like Bloomberg dedicated to it. Originally, money was created as an instrument of commerce and was universally used to the measure of value (Smith, 1937). Undeniably, money has taken a dominant place to gain access to being our basic necessity to provide a quality and way of life. It plays a special role in both our personal and social lives, exerting more power over human lives than any other single commodity (Furnham, 1998). So, it is not unusual for one to have a wrestle with the decision of whether to enjoy one’s money when one earns it or to save one’s money for sometime in the future.

The statement ‘enjoy your money when you earn’ is an opinion of spending today, whereas the statement, ‘saving your money for sometime in the future’ is an opinion of saving for tomorrow. The overall statement only shows two possibilities of managing money, when in reality, there are other outcomes which include ones that lie somewhere between these two extremities. Therefore, the false dichotomy fallacy occurs.

Money attitudes differ from one generation to another. For instance, our parents (generation X) were cautious and conservative in both spending and saving for future use and they influenced us to be the same. However, youth today, (Generation Y) think otherwise as they prefer to spend their money earned today. Generation X placed a higher emphasis on working to live whereas Generation Y emphasizes more on their lifestyles rather than on working (West Midland Family Centre, 2003).

Maslow’s hierarchy of needs theory gives a clearer understanding of attitudes towards money (Williams, Lown,

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