1. Personal Financial Literacy
You as a Consumer

2. Learning Where and When to Buy
A consumer is a person who buys or uses goods and services
Impulse buyers make purchases without thinking about price or usefulness
Wise shoppers spend more time thinking about what they buy
Get the most out of your shopping by paying attention to ads, going during sales, and using coupons
Just because it’s a low-priced item DOES NOT mean it’s a bargain
Not if you can’t use it or if it’s poorly made

3. Judging Price and Quality
You should be able to judge product quality and know how you plan to use that product
Must also compare prices based on your needs
Despite brand names, the only way to be sure about the quality of a product is to study its label

4. Studying Labels Labels are on products to protect and inform consumers
Manufacturer info
Package contents
Weight and quantity
Ingredient
Serving sizes
Safe handling/cooking instructions
Warning labels
Sell by dates/expiration dates
Unit price

5. Consumer Protection Organizations
You can take legal action if you feel you have been misled by unfair business practices
Better Business Bureau
Federal govt. also protects consumers
FTC regulates advertising and labeling
USDA inspects and grades food
USPS makes sure mail is kept safe
CPSC makes sure consumer products are safe

6. Consumer Protection Organizations
Most states and cities have consumer protection offices
Private organizations test and rate products, and publish their findings in magazines and online 

7. Problems Caused by Consumers
Shoplifting costs businesses billions of dollars each year in the U.S.
People take advantage of refund policies
Damage other’s stores or property
Fail to pay for purchases obtained on credit
Businesses past costs on to the customers in the form of higher prices

8. Pay Now or Later?
Pay now- charged immediately and might make you think more about what you’re buying
Cash, checks, or debit cards
Debit cards operate the same way as checks do (they draw from the same checking account)
Instead of taking the time to write a check, people use debit cards

9. Pay Now or Later? Pay Later
Credit allows you to buy something now and not have to pay it until you are billed (usually once a month)
The amount of money you have in your credit account determines how much you can buy with your credit card
You must pay back what you buy every month or else you become a credit risk

10. Pay Now or Later?
Credit ratings show how reliable you are as a borrower and how capable/honest you are at paying your bills
Credit ratings can affect buying a car, buying a house, or getting a loan for a business or going to school
Careful not to purchase foolish things that run up your debt
Interest rates on debt payments and annual fees get thousands of people into serious financial trouble every year

11. Installment Plans and Down Payments
Installment plans let you buy something without the paying the full amount
You put down a single amount to hold the item for yourself called a down payment
After the down payment, the rest of what you owe on the item can be paid in installments until you pay off the entire balance

12. Installment Plans and Down Payments
Large purchases are often bought on installment plans
A written contract outlines the payments and due dates
If a person fails to adhere to the contract, the seller can repossess the item and keep the money already paid on it
Installment plans COST MORE than purchasing at once
Service charges, installment payments, interest payments
Wise to pay off installment plans as quickly as possible