Assignment 31: Determining Causes And Effects Draft 107877

Assignment 31 Determining Causes And Effects Draft Version

Select one (1) of the following scenarios on which to focus your cause and effect paper. Research the topic and include credible sources to support claims. Identify your purpose clearly, incorporate audience needs, establish a desired tone, and organize information/claims effectively.

1. The President of Strayer University has asked you (a full-time university professor) to write about the major causes and effects of stress on college students. The paper will be presented to senior administration in order to help students have a more positive college experience.

2. The director of your state unemployment agency has asked you (a public relations specialist) to write about the causes and effects of unemployment on an individual or family. The paper will be presented to the agency as they make decisions about reaching out to those who need jobs.

3. The CEO of Bank of America has asked you (a financial analyst) to write a paper on the causes and effects of not keeping a personal budget. The paper will be presented to the communications department of the company so they can create budget forms for customers.

Write a 4-5 page paper in which you: Provide a clear thesis statement. Describe the major cause. Describe a leading second cause. Describe two (2) other contributing causes. Describe three (3) effects of the cause on the economy. Describe three (3) effects on people. Develop a coherently structured paper with an introduction, body, and conclusion. Provide three (3) relevant and credible sources to support claims. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.

Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

The specific course learning outcomes associated with this assignment are: identify elements of visual and electronic resources and their uses in writing; associate the features of audience, purpose, and text with various genres; recognize elements and correct use of a thesis statement; recognize how to organize ideas with transitional words, phrases, and sentences; incorporate relevant, correctly documented sources to substantiate claims; apply the writing process to develop various writing genres; write clearly and concisely about selected topics using proper writing mechanics.

Paper For Above instruction

The causes and effects of not keeping a personal budget have become increasingly relevant in today’s financial landscape, especially considering the widespread issues of financial instability among consumers. This paper explores the major reasons behind the neglect of budgeting, its implications on the economy, and its effects on individuals and families. Through this discussion, it becomes clear that understanding these causes and effects can enhance financial literacy and promote healthier financial behaviors.

Thesis Statement: The failure to maintain a personal budget stems from a lack of financial literacy, psychological factors, and societal influences, which collectively lead to detrimental effects on both the economy and personal well-being.

Major Cause: Lack of Financial Literacy

The primary cause of not maintaining a personal budget is a widespread deficiency in financial literacy. Many individuals lack the fundamental knowledge needed to understand budgeting principles, financial planning, and management. According to Lusardi and Mitchell (2014), financial literacy is crucial for making informed financial decisions; however, many adults do not possess adequate understanding of basic financial concepts. This ignorance often leads to impulsive spending, inability to track expenses, and failure to save or plan financially, thus undermining effective budgeting practices.

Second Cause: Psychological Factors

Psychological factors, such as impulsivity, denial, and emotional spending, significantly contribute to poor financial management. Impulsive buying behavior, driven by emotional states or marketing tactics, often results in overspending that deviates from a predetermined budget. Carlin (2017) highlights that emotional attachment to consumption and denial of financial realities hinder individuals from establishing or adhering to budgets. These psychological tendencies can overshadow rational financial planning, leading to chronic budget neglect.

Additional Contributing Causes

• Lack of Financial Goals: Without clear short-term or long-term financial objectives, individuals lack motivation to develop and follow a budget, making financial discipline difficult to maintain (Kenton, 2020).
• Societal and Cultural Influences: Culture and societal norms often promote materialism and consumption, pressuring individuals to prioritize spending over saving (Marques et al., 2015).

Effects on the Economy

1. Reduced Consumer Spending Power: When individuals fail to budget, they tend to overspend or live paycheck to paycheck, lowering overall consumer spending, which slows economic growth (Mankiw, 2018).
2. Increased Debt Levels: Poor budgeting habits lead to higher debt accumulation, especially credit card debt, creating economic instability at macro levels (Lusardi & Tufano, 2015).
3. Higher Government Spending on Social Services: Increased financial instability results in greater demand for government assistance programs, which strains public resources (U.S. Census Bureau, 2020).

Effects on People

1. Financial Stress and Anxiety: Individuals who do not budget regularly experience heightened stress due to unexpected expenses and financial uncertainty (Xiao et al., 2014).
2. Decreased Financial Security: Lack of budgeting often results in insufficient savings, leaving individuals vulnerable to emergencies such as medical crises or job loss (Banerjee & Duflo, 2019).
3. Impacted Relationships: Financial mismanagement and debt can strain personal relationships, leading to conflicts and divorce (Brown et al., 2019).

Conclusion

In conclusion, the failure to keep a personal budget is rooted in a combination of financial literacy gaps, psychological tendencies, and societal influences. These causes contribute to detrimental effects such as economic instability, increased debt levels, and personal financial stress. Addressing these issues through education, behavioral interventions, and societal change can foster better financial habits and improve both individual and economic well-being. Promoting awareness and providing accessible financial resources can help individuals develop sustainable budgeting practices, positively impacting the economy and personal lives alike.

References

• Banerjee, A., & Duflo, E. (2019). Good Economics for Hard Times. PublicAffairs.
• Carlin, A. (2017). The psychology of spending: Understanding emotional buying. Journal of Consumer Psychology, 27(3), 417-429.
• Kenton, W. (2020). Budgeting basics: How to create and stick to a budget. Investopedia. https://www.investopedia.com/terms/b/budgeting.asp
• Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5-44.
• Lusardi, A., & Tufano, P. (2015). Debt literacy, financial experiences, and overindebtedness. Journal of Pension Economics & Finance, 14(4), 332-368.
• Mankiw, N. G. (2018). Principles of economics (8th ed.). Cengage Learning.
• Marques, J., Neves, J., & Moutinho, L. (2015). Cultural influences on consumer behavior. International Journal of Consumer Studies, 39(3), 255-263.
• U.S. Census Bureau. (2020). Income and poverty in the United States: 2019. Report No. P60-270.
• Xiao, J. J., Tang, C., & Shim, S. (2014). Applying conjoint analysis to understanding financial behavior. Financial Counseling and Planning, 25(2), 119-133.