Consumer Behavior – Income & Expense Style

“Hello, everyone! Today, I’m going to tell you a story about a boy named Ravi and his family. Are you ready?”

Children (including Ravi): “Yes!”

“Great! So, Ravi and his family used to live in a small house. They didn’t have much money, and their meals were simple. Every day, they ate mostly rice, chapatis, and some vegetables. How many of you eat rice or chapatis?”

Children: (raising hands) “Me! Me!”

“Exactly! Rice and chapatis are very important. But, something started to happen in Ravi’s family. His mother got a good job, and their family started earning more money. What do you think happened next?”

(Ravi raises his hand, curious.)

Ravi: “Maybe they bought more rice?”

“Good guess! But instead of just buying more rice, Ravi’s family started eating new kinds of food. They bought milk, eggs, and fruits. Ravi loved bananas! Have any of you tried fruits like bananas or apples?”

Children: (smiling) “Yes!”

“That’s because of something called Bennett’s Law! As families earn more money, they start eating less of the cheaper, starchy foods like rice and chapatis, and they start buying more expensive, healthy foods like milk, eggs, and fruits. Isn’t that interesting?”

Children: (nodding) “Yes!”

“But there’s more to the story! As Ravi’s family earned more money, they started spending it on other things, too! Ravi’s mom bought him new clothes, toys, and even books for school.”

(Ravi holds up a toy car, smiling brightly.)

Ravi: “Mom says we don’t have to spend all our money on food anymore.”

“And that’s what we call Engel’s Law! As families earn more, they don’t need to spend as much of their money on food. They still buy food, but they can spend the rest on other things like school supplies, toys, or even saving for the future.”

Children: (impressed) “Wow!”

“So remember, as people earn more money, they change what they eat and how they spend. Bennett’s Law tells us they start eating less rice and more nutritious food like fruits and milk. And Engel’s Law shows us that families can start spending money on other things besides food. Just like Ravi’s family!”

Ravi: (happily) “And now I get to eat fish!”

(Everyone laughs, and the children clap.)

Narrator: “And so, Bigteacher helped Ravi and his friends understand two important ideas about money and food. And from that day on, they knew that as families grew richer, they didn’t just get more, they got better.”

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