The Psychology of Money

A. Are you a compulsive spender or do you hold on to your money as long as possible?
Are you a bargain hunter? Would you rather use charge accounts than pay cash? Your
answer to these questions will reflect your personality. According to psychologists,
our individual money habits not only show our beliefs and values, but can also stem
from past problems .
B. Experts in psychology believe that for many people, money is an important symbol of
strength and influence. Husbands who complain about their wives, spending habits
may be afraid that they are losing power in their marriage. Wives, on the other hand,
may waste huge amounts of money because they are angry at their husbands. In
addition, many people consider money a symbol of love. They spend it on their family
and friends to express love, or they buy themselves expensive presents because they
need love.
C. People can be addicted to different things, alcool, drugs, certain foods, or even
television. They are compulsive in their addictions, they must satisfy these needs to
feel comfortable. In the same way, according to psychologists, compulsive spenders
must spend money. For people who buy on credit, furthermore, charge accounts are
even more exciting than money, in other words, they feel that with credit, they can do
anything. Their pleasure at spending enormous amounts is actually greater than the
pleasure that they get from the things they buy.
D. There is even a special psychology of bargain hunting. To save money , of course,
most people look for sales, low prices, and discounts. Compulsive bargain hunters,
however, often buy things that they don’t need just because they are cheap. They want
to believe that they are helping their budgets, but they are really playing an exciting
game: when they can buy something for less than other people , they are winning.
Most people, experts claim, have two reasons for their behavior: a good reason for the
things that they do and the real reason.
E. It is not only scientists , of course, who understand the psychology of spending habits,
but also businesspeople. Stores, companics, and advertisers use psychology to
increase business: they consider people’s needs for lov, power, or influence, their
basic values, their beliefs and opinios, etc. In their advertising and sales methods.
F. Psychologists often use a method called “behavior therapy” to help individuals solve
their personality problems. In the same way, they can help people who feel that they
have problems with money: they give them “assignments.” If a perosn buys
something in every store that he enters, for instance, a therapist might teach him self-
discipline in this way: on the first, day of his therapy, he must go into a store, stay five
minutes, and then leave. On the second day, he sould stay for ten minutes and try
someting on. On the third day, he stays for fifteen minutes, asks the salesclerk a
quesrion, but does not buy anything. Soon he will learn that nothing bad will happen
to him if he doesn’t buy anything, and he can solve the problem of his compulsive
buying.
Getting the Main Ideas
Write T on the lines before the statements that are true, according to the reading. Write F
before the statements that are false.
1. _____ According in psychologists, a person’s money habits might reflect his or her
personality
2. _____ For some people, money may be a symbol of love, strength, or influence.
3. _____ All people spend money for exactly the same reason, that they need to buy things
4. _____ People who look for the lowest possible prices will never have money problems
because they will keep to their budgets.

5. _____ Businesspeople and advertisers can use the psychology of money to increase
sales

6. _____ People can never change their money habits because they come from then past
beliefs and values

Guessing Meaning from Contest

Sometimes other words in a phrase give clues to the meaning of a new vocabulary item.
Examples: Some people save money, (Save expresses an action that people can do with
money)
They don’t spend enormous amounts. (Enormons describes amounts: it refers to
size and means “very big”)
Write the missing words in the phrases. Choose from these words
Needs accounts hunting money amounts problems
1. Huge ________ 4. Waste __________
2. Bargain ________ 5. Satisfy __________
3. Charge _________ 6. Personality _________

Now match these with their meanings. The phrases above will help we. Write the letters on the lives.
7. huge a. something that you can buy cheaply
8. bargain b. take care of be enough for
9. charge c. the price people pay
10. waste d. the nature or character of a person
11. satisfy e. very big; enorinous
12. personality f. use wrongly; use too much of

Circel the words that give clues to the meanings of the underlined word(s). then circle the letter of the
correct meaning of the underlined words.

13. People can be addicred to different things, such as alcohol, drungs, or certain foods. They are
compulsive in their addictions that is, they must satisfy these needs to feel comfortable.

Addictions :
a. Strong needs
b. Foods with alcohol
c. Satisfactions
d. Comforts

Addicted to :
a. Satisfied with
b. Alcoholic
 c. Unable to have
d. Unable to stop having

Compulsive :
a. Using power
b. Unable to stop
c. Satisfied
d. Having a strong influence

14. For people who buy on credit. Charge accounts are even more exciting than money ; they feel
that with credit, they can do anything.

Buy on credit :
a. Spend hurge amounts of cash
b. Waste money
c. Buy now and pay later
d. Have power and influence

Charge account :
a. Bargain hunting
b. Assignments
c. A system of delaying payments
d. Good budgets

Now, read the selection at the beginning of the chapter again carefully. Try to guess the meanings of
new words from the context. Use your dictionary only when absolutely necessary.
Check your answers in the “Getting the Main Idea” section, which followed the reading. Correct your
errors. Then complete the following exercises. Look back at the reading if necessary.

Understanding Reading Structure

1. Match the paragraphs in the reading selection with their topics. Write the letters of the
paragraphs on the lines.
Money as a symbol of other things
Money habits as an expression of personality
The use of the psychology of money in business
Therapy for spending problems
Psychological reasons for bargain hunting
Addiction to spending money
2. Circle the letter of the one main idea of the reading selection.
a. People who buy on credit are more exciting than people who keep to their budgets.
b. People who are compulsive spenders probably didn’t get much love when they were
children.
c. Spending habits, which reflect personality, are a form of beliavior that people can
change.
d. Behaviour therapy will help scientists, advertisers, and business people.

Understanding Details

The following connecting words and phrases show addition of agreement _ that is, they add
information or make previous ideas stronger
And not only . . . but also in addition
Furthermore in the same way
Complete each sentence with additional information from the reading.
 1. according to psychologists, our money habits not only reflect our, values and beliefs, but
can also

2. Some people waste huge amounts of money out of anger. In addition,

3. Some people are compulsive in their addictions to alcohol, drugs, certain foods, or even
television. In the same way,

4. Many people satisfy their psychological needs when they spend money. For people who
buy on credit, furthermore.

5. Psychologists can use “behaviour therapy” to help people with personality problems. In
the same way,

Here are some abbreviations (shortened forms of words) common in reading selections and their
meanings:
i.e. = that is = in other words
e.g. = for example
etc. = etcetera = and so on

Find the answers to these questions in the reading and write them on the lines.
6. What are some examples of things that people can be addicted to?

7. What does “People are compulsive in their addictions” mean?

8. What do businesspeople and advertisers consider in their sales methods?

Turn back to the beginning of the chapter and answer the questions in the “Preparing to Read”
section.

Discussing the Reading

1. Do you believe that there is a “psychology of money”? Why or why not?

2. Describe your spending habits. What, in your opinion, do they show about your personality?
3. Do you believe that behaviour therapy for problems with money is a good idea? Why or why
not? Describe some typical problems that people might have; suggest some solutions.

PART II. SHOPPING IN THE FUTURE

Read these paragraphs quickly. Do not use a dictionary and don’t worry about the details. Then
underline the topic sentence of each paragraph, the sentence that tells the main idea.

1. Up until now, you have probably been buying most of the things that you need or want in
stores. You’ve driven or taken public transportasion to supermarkets, shopping centers,
department stores, specialty shops,etc, where you’ve looked for sales, bargains, and discounts.
 You’ve examined products and made your choices. Then with the help of saleselerks, you’ve
paid cash, charged on your account, or used your credit card to but the marchandise. Finally,
somehow, you’ve brought the items home. Until now, most consumers have been shopping in
this way, experts predict,however, that shopping habits may greatly change in the future.
Already,some people are shopping less and less in stores and more and more throught mail-
order houses,network marketing systems,computers, or even videoscreens.

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2. Do you want to avoid the traffic Jams, noise, and pollution of downtown shopping areas?
With a mail-order cataloguen, you can choose merchandise from the comfort of your home.
First,you should carefully study the picturesof product and the facts (size,price,etc,) about
them in the book. After you make your choise, you can write the essary information in the
order form and send it with a check to the mail-order house. To get the marchandise more
quickly,however,you might want to call a toll-free telephone number and place your order
with your credit card. The merchandise should arrive within a month or six weeks for your
protection,most mail-order houses provide a money-back guarantee-i.e. if you are not happy
with the merchandise for any reason, you can send it back. The company will replace it or
return your money.
3. A secretary at your school wants to sell you special vitamins; a classmate always has soap
products to sell; a friend can get you computer merchandise at a big discount. Where do these
people get their products and why are they selling them? More and more people are
participatingi in modern “network marketing system” With these system,people who do not
work in stores get products from other sellers; they sell them directly to other people,whosave
money because the prices do not include the costs of overhead (rent,electricity, etc.).The
sellers also build “sales network” in which other people sell merchandise for them they
receive money for each sale
 4. Some consumers now use their computers to order certain merchandise through the telephone.
Their airlane tickets,computer products, videotapes,and so on soon arrive in the mail at their
homes or work places. An even more modern method of shopping, however,is through.
Videocatalogues in hotels, supermarkets, and other public places. Video catalogues are
computers with screens that show pictures of products to buy. Shoppers simply touch the
screens to get information, focus on merchandise, make choices, and order products. After
they pass their credit cards through the machines, their orders go to a warehouse, which sends
them the items.

Interpreting Sentence Structure and Meaning

Read each section carefully. Find the answers to the questions and write them on the lines.
1. Up until now, you’ve driven or taken public transportation to supermarkets, shopping centers,
departement stores, specialty shops, etc. Where you’ve looked for sales, bargains, and discounts.
You’ve examined product and made your choices. Then, with the help of salesclerks, you’ve paid
cash, charged on your account,or used your credit card to buy the merchandise. Finally,
somehow, you’ve brought the items home. Until now, most consumers have been shopping in
this way.
a. What does this way (in the last sentece) refer to? __________________________________
_________________________________________________________________________

b. What are the usual steps in shopping? ___________________________________________

_________________________________________________________________________

Commas (,) often separate items of a series (list of things in a group). List the items from the
paragraph for these categories.

c. Four kinds of places to shop: ___________________________________________________

__________________________________________________________________________

d. Three ways to save money: ____________________________________________________

__________________________________________________________________________

e. Three ways to buy merchandise: ________________________________________________

__________________________________________________________________________

2. Do you want to avoid the traffic jams, noise, and pollution of downtown shopping areas? With a
mail-order catalogue, you can choose merchandise from the comfort of your home. First, you
should carefully study the pictures of products and the facts (color,size,price,etc.) about them in
the catalogues.
a. What are the advantages of mail-order shopping? __________________________________
__________________________________________________________________________

b. What are three examples of facts about products? __________________________________

__________________________________________________________________________

c. What might “etc”, refer to? ____________________________________________________

__________________________________________________________________________
3. After you make your choices of products in the catalogue, you can write the necessary
information in the order form and send it with a check to the mail-order house. To get the
merchandise more quickly, however, you might want to call a toll-free telephone number and
place your order with your credit card.
a. However can indicate a contrast of choices (an alternative). What are two alternatives for
ordering from a mail-order house?
4. For your protection, most mail-order houses provide a money-back guarantee-i.e. if you are not
happy with the merchandise for any reason, you can send it back. The company will replace it or
return your money.

a. What does “a money-back guarantee” mean-i.e. what will a company do?

__________________________________________________________________________

b. Under what condition will a company do these things?

__________________________________________________________________________

5. More and more people are participatingin modern:network marketing systems” with these
systems, people who do not work in stores get products from other sellers: they sell them directly
to other people, who save money because the prices do not include the costs of overhead
(rent,electricity, etc). They sellers also build”sales networks”, in which other people sell
merchandise for them and they receiver money for each sale.

a. What does these systems in Line 2 refer to? _______________________________________

__________________________________________________________________________

b. Name at least two examples of overhead: _________________________________________

__________________________________________________________________________

c. What are three steps in network marketing? _______________________________________

__________________________________________________________________________
__________________________________________________________________________

6. Some consumers now use their computers to order certain merchandise through the telephone
lines. their airline tickets, computer products, videotapes, and so on soon arrive in the mail at
their homes or workplaces. An even more modern method of shopping, however, is through
videocatalogues are computers with screens that show pictures of products to buy.

a. What are three examples of merchandise? ________________________________________

__________________________________________________________________________

b. How do some people get these things? ___________________________________________

__________________________________________________________________________

c. Finish this comparison: videocatalogues? _________________________________________

__________________________________________________________________________

d. What are videocatalogues? ____________________________________________________

__________________________________________________________________________

7. Shoppers simply touch the screens to get information, focus on merchandise, make choices, and
order products. After they pass their credit cards through the machines, their orders go to a
warehouse, which sends them the items.

a. What is the first step in videocatalogue shopping?__________________________________

 __________________________________________________________________________

b. What is the last step? _________________________________________________________

c. How do shoppers pay for merchandise? __________________________________________

Viewpoint

In many reading selections,authors give a point of view. If they do clearly write their opinions, they
may imply (suggest) them through details in the selection.In your opinion. Does the author of the
selection at the beginning of Part II like or dislike new shopping methods?
How do you know? (what details from the reading suggest the author’s viewpoint?)

Discussing the Reading

Discussing the answers to these questions.

1. How have you shopping up until now? Are your shopping habits changing.or will they change
in the future? Why or why not?
2. What do you think of new methods of shopping? Why?
3. Can you imagine other new marketing methods? Describe them.

PART III. BUILDING VOCABULARY AND STUDY SKILLS

Related Words

Which word in each group does not belong? Cross it out. Explain the reasons for your answer.

a. Psychologist scientist company therapist

b. Stores shops markets checks
c. Computers telephones video specialty
d. Cash credit center money
e. Comfort bargain discount sale
f. Shopping businessman salesclerk advertiser
g. Merchandise products systems items
h. Complete power influence strength
i. Values accounts beliefs opinions
j. Spend claim waste save

Parts of Speech

To guess the meaning of a new word from the context, it often helps to know its “part of speech”: ---
that is, is the word a noun, a verb, an adjective, an adverb, etc.? Sometimes you can tell the part of
speech from the suffix (the word ending). Here are some common suffix, with the part of speech that
they ussualy indicate.

NOUNS ADJECTIVES
-er/-or -ive
-ist -able/-ible
-sion/-tion -(u)al
-ment -ic(al)
-ee -ful
 -ity -ant/-ent
-ance/-ence -ous
-ure -ar(y)

1. Are the following words nouns or adjectives? The suffixes will tell you. On the lines,
write________(noun) or ________ (adjective), (In a few cases, buth answers may be correct.)

___compulsive ___transportation ___enermous

___spender ___specialty ___scientist
___possible ___computer ___information
___hunter ___autometic ___protection
___psychologist ___elementary ___special
___personality ___addition ___electricity
___individual ___expensive ___costumer
___important ___different ___public
___influence ___television ___guarantee
___basic ___addiction ___beautiful
___assignment ___pleasure ___cultural
___instance

2. Complete each sentence with word the underlined words. Then look back at the list of
suffixes to check your answers.
a. Every person has his or her own ______ in relation to money. A person’s __________
opinions and values from the basic of his or her habits.
b. Bargain ___________s are always hunting for discounts and low prices. For some
addictive personalities, shopping for bargain is a kind of________________.
c. Speciality shops often sell__________ items from different countries of the word.
Shopping in these pleasant stores can be a__________ .
d. A “money-back guarantee”___________ _____________s. People who buy merchandise
from mail-order houses should have this protection : if they send products back before the
consume them, the company will return their money.
e. Through computerized methods of shopping, you can order items in an instan. For
___________, you can thouch a videoscreen that sends information to a____________.
f. Advertising is a kind of_____________ that has a strong____________on consumers, it
should not only influence people to buy product, but also inform them of basic facts.

Increasing Reading Speed: Reading in Phrases

Students usually need to read quickly because they have to read a lot of material. Not reading only is
reading speed important to most students, but fast readers usually understand reading material better
then slow readers.
Slow readers often read one word at a time, like this:

According to psychologists our individual

money habits show our beliefs and

values
Faster readers don’t usually read individual words. Instead, they take in several words at a time, like
this:

Experts in psychology believe that for many people

of strength and influence

 Many is an important symbol

Psychologists
If you try to read more and more words together, you can improve your reading speed.

1. Read these sentences in phrases, as shown :

a.
Husbands who complain About their wives spending habits
That they are losing power In their marriage
May be afraid
b. Many people Are compulsive In their addictions
i.e, they must satisfy Their needs To feel comfortable
c.
Psychologists often use A method called “behavior therapy”

To have individuals Solve their personality problems

Certain words often belong together in phrases. For example, a noun phrase can include adjectives
and other words before or after the noun. A verb phrase may include noun objects, objectives, or
adverbs. A prepositional phrase includes an object after a preposition, and an infinitive phrase may
include an object after the verb.

Example:
Name phrases
Money habits a symbol of love
Verb phrases
Spend money ask the clerk a question
Prepositional Phrases
For their behavior on the next day

Infinitive Phrases
To save money to feel comfortable

2. Which words belong together in reading? Read the following sentence in phrases an separate the
phrases with lines. ( there are several corret possibilities.)

a. Do you want to avoid traffic jams, noise, and pollution of downtown shopping areas with
amail-order catalogue, you can choose merchandise from the comfort of your home,first,you
should carefully study the pictures of products and the facts ( color,size,price,etc). abaout
them in the book. After you make your choices, you can write the necessary information in
the order from and send it with a check to the mail-order house.
b. Most-people, even compulsive spenders, keep their money in banks in checking and savings
accounts, your write our froms called deposito slips. On these slips of paper,you put down the
amount of money you are depositing the currency (cash in paper bills) and the checks, you
add up the amount,subtract the many that you want to receive in cash, and write the total
 deposit. You endorse ( write your name on the back of ) all your checks and bring everything
to the teller’s window at the bank.
c. Nowadays, to save time, many people bank by mail or use the instant-teller machines outside
their banks. They put checks and deposit slips into bank envelopes,which they seal and mail
or put into the machines. They can also make payments ( for the house,cars,loans,etc.) in
these ways. People who have special cards and numbers can withdraw certain amount of cash
from the instant tellers. The bank statements that they receive at the end of the month will
include the amounts that they have deposited or withdraw by mail or machine.

PART IV.SCANNING FOR INFORMATION

1.The following vocabulary items often appers on bank froms. Match them with their meanings.
If necessary, look back at the paragraphs above for context clues.
___ Deposit a. a piece of paper a from
___ Withdraw b. close
___ Currency c. put money into ( a bank account )
___ Enclose d. a person who works at a bank window
___ Slip e. sign ( write your name on )
___ Endorse f. take money out (of a bank account)
___ Seal g. paper bills
___ Teller h. put in
___ Cash i. paper money and coins

2. Scan the banking forms and write the answer to the questions.

BANK OF AMRERICA Checking Deposit

LIST CHECK BY BANK NO DOLLARS CENTS
ACCOUNT NUMBER CURRENCY
A.
NAME (PHRASE PRINT) COIN

ADDRESS CHECKS
CITY STATE ZIP CODE TOTAL OF CHECKS
LISTED ON REVERSE
DATE
SUBTOTAL
LESS CASH RECEIVED
PLEASE SIGN IN TELLERS PRESENCE FOR CASH
TOTAL DEPOSIT
RECEIVE

B-3 1-83 BANK OF AMERICA NT&SA

BANK OF AMERICA Savings Deposit

DATE
ACCOUNT NUMBER
B. LIST CHECK BY BANK NO DOLLARS CENTS

NAME (PHRASE PRINT) CURRENCY

COIN
CHECKS 1.
ADDRESS
2.
CITY STATE ZIP CODE
NEW PASSBOOK BALANCE 3.
 BANK OF AMERICA Savings Withdrawal

ACCOUNT NUMBER DATE

RECEIVED FROM BANK OF AMERICA

DOLLARS

FOR BANK USE ONLY PLEASE SIGN IN TELLERS PRESENCE FOR CASH RECEIVED
ACTIVITY CHARGE
NEW PB BALANCE NAME (PHRASE PRINT)
ENTERED BY
CONTRA ADDRESS
CITY STATE ZIP CODE

S-155 1-83 BANK OF AMERICA NT&SA

a. match the froms these descriptions. Write the letters of the froms on the lines.
a deposit slip for a savings account
a deposit slip for a checking account
an envelope to deposit money after baning hours
a from to take money out of a saving account
b. how much money is Pablo Ramos depositing in his checking account?
How much of the deposit is in cash? How many checks
is he depositing? Is he taking any money from the bank with him?
c. How much money uis Mohammad El-Gammal depositing in his savings account?
How much of the this in cash? How many checks is he depositing? Is he talking of
this money with him? If so, how much?
d. How much money is Hon-May Fong withdrawing from her savings account? When
will she sign the from?