Final answer:
You should not use a loan to purchase airline tickets to your dream vacation as it does not constitute an investment or provide a return on investment, unlike loans for houses or tuition which can increase in value or earning potential.
Step-by-step explanation:
When considering what you should NOT use a loan to purchase, it is important to differentiate between appreciating assets that can be considered investments and depreciating assets or non-essential expenditures. While taking out a loan for a house through a mortgage or for tuition for higher education can be seen as investments that have the potential to increase in value or provide a return on investment, it's generally advisable not to use a loan for transient pleasures or depreciating assets like airline tickets to your dream vacation. On the other hand, an auto loan for buying a car, though the vehicle is a depreciating asset, is often considered a necessary debt for transportation needs.
Considering the long-term financial impact and weighing the potential for an increase in net worth or income can help make prudent borrowing decisions. As such, using loans for assets that don’t provide financial return or economic value in the future is typically discouraged, making vacation expenses an example of what not to finance through loans.