Time to Sound Out
Chantel Dawn
Personal Consumption Expenditures, what does this mean to you? Well in our economics class this is three different groups, they are durable goods, nondurable goods, and service goods. I plan on explaining each of these groups so that hopefully you understand them. I will be giving you a couple examples for both.
I would like to first start off with durable goods. In economics, a durable good is a good that does not quickly wear out. Durable goods are about 12% of where all our money goes. Which isn’t all that bad, but month after month of buying and spending all your money on these items, it becomes very pricey and then you look at how you could be spending your money on other things. Durable goods are car tires, a computer, or a washer. You don’t usually need these things, you buy them so your house looks good, or your car look nicer then someone’s or even to have a better computer then someone. These are things that we can life without but think we need. I would say yes that it is totally absurd that we waste so much money on things we don’t need, just want. Yes, my family is one of the many families that do spend this crazy amount of money on things we don’t need.
Now let’s to jump into the nondurable goods that we use more often, this is a good which is immediately used by a consumer or which could last you three years or less. Nondurable goods are about 29% of where your money is going. I don’t think that is bad at all. I mean we could probably do without some of these items, but some of them you need for everyday life. You need shampoo, conditioner, and body wash when you shower, but if you used less of them then you would save a little bit of money every month. I would say my family is very good about saving these things, other than dish soap, we go through that like crazy, and I think that is mainly because we always have so many people at our house, so if there were less people we would spend so much money on it. Things like