Presentation on theme: "Splash Screen. Chapter Menu Chapter Introduction Section 1:Section 1:Shopping for Food Section 2:Section 2:Clothing Choices Section 3:Section 3:To Rent."— Presentation transcript:
Chapter Menu Chapter Introduction Section 1:Section 1:Shopping for Food Section 2:Section 2:Clothing Choices Section 3:Section 3:To Rent or to Buy Section 4:Section 4:Buying and Operating a Vehicle Visual Summary
Chapter Intro 1 Scarcity is the basic economic problem that requires people to make choices about how to use limited resources.
Chapter Intro 2 What are the costs of owning a car? How much should you budget for clothes and food? In this chapter, read to learn how to shop wisely for the necessities.
Section 1-Main Idea Section Preview In this section, you will learn about a variety of ways to save when shopping for food.
Section 1-Key Terms club warehouse store convenience store private-labeled products Content Vocabulary
A.A B.B C.C Section 1-Polling Question Do you feel that food is expensive? A.Always B.Sometimes C.Never
Section 1 Comparison Shopping Shopping for food involves many considerations, including brands, sizes, quantities, unit prices, freshness, the availability of coupons and store location.
Section 1 Comparison Shopping (cont.) When comparison shopping, you need to decide not only what to shop for but where to shop as well. If you spend too much time looking around though, the additional costs of time and transportation would outweigh any potential savings.
A.A B.B C.C Section 1 Do you tend to spend much time shopping around for items? A.Always B.Sometimes C.Never
Section 1 Trade-Offs in Stores Deciding what food to buy involves numerous trade-offs.
Section 1 Trade-Offs in Stores (cont.) Food shopping is typically done at grocery stores or in club warehouse stores which offer the largest potential savings for your food dollar because you purchase in bulk.club warehouse stores Occasionally, you may use a convenience store which carries a limited selection of brand items at relatively higher prices.convenience store
Section 1 Trade-Offs in Stores (cont.) When you shop, alternatives to brand named items are private-labeled products which are lower-priced products carried by supermarket and warehouse chains.private-labeled products There is a trade-off between quality and price in the products you buy. Also, the larger the quantity of any item you buy, the lower the per-unit price.
Section 1 Trade-Offs in Stores (cont.) Many manufacturers give cents-off coupons, but you have to decide if the amount you save using them is worth your time collecting and matching them. Store discount cards are another option, but critics claim that they simply save the customer from inflated prices instead of offering a discount. These cards are also used to track customers spending habits for marketing purposes.
A.A B.B C.C Section 1 Do you feel that marketing companies should be allowed to study customers shopping habits? A.Always B.Sometimes C.Never
Section 2-Main Idea Section Preview In this section, you will learn methods to help you make wise consumer choices when shopping for clothes.
Section 2-Key Terms durability service flow Content Vocabulary
Section 2-Polling Question What is your motivating factor when buying clothes? A.Durability B.Variety C.Brand D.Style E.Cost of care A.A B.B C.C D.D E.E
Section 2 Comparing Clothing Value Clothing value depends on style, durability, and cost of care, as well as purchase price.
Section 2 Comparing Clothing Value (cont.) Comparison shopping is important to buying clothing wisely. Clothing value depends on three factors: –Style or the latest trend –The durability of an item which includes its service flow.durabilityservice flow –Cost of care is the money and effort you put into maintaining the item like dry cleaning.
A.A B.B C.C Section 2 Do you feel that buying clothes that must be dry cleaned is worthwhile? A.Always B.Sometimes C.Never
Section 2 More for Less Consumers have many alternatives to buying clothing at full retail price.
Section 2 More for Less (cont.) Ways to save when buying clothing: –Visit a consignment store which sells used clothing at lower prices. –Buy clothing on sale. –Shop online. –Make a list of clothing you really need so you dont buy impulsively. View: How Can You Save on Clothes?How Can You Save on Clothes?
A.A B.B Section 2 The cost of clothing has increased significantly over the years. A.True B.False
Section 3-Main Idea Section Preview In this section, you will discover the costs and responsibilities involved in both renting and buying a place to live.
A.A B.B Section 3-Polling Question Do you think that you would want to rent or buy a house? A.Rent B.Buy
Section 3 Should You Rent or Buy? There are advantages and disadvantages both to buying a home and renting a place to live.
Section 3 Should You Rent or Buy? (cont.) Benefits to renting: –No down payment (only a security deposit and one or two months rent up front) –No maintenance costs or real estate taxes –Greater mobility
Section 3 Should You Rent or Buy? (cont.) Benefits to buying: –Significant income tax benefits –The owner builds equity. Houses generally appreciate, or go up in value over the years. –Pride of ownership –Freedom to decorate or remodel
A.A B.B C.C D.D Section 3 How much of their income does the average American family spend on a house? A.25–33% B.34–50% C.5–10% D.11–24%
Section 3 Renter Rights and Responsibilities Renters should read their leases carefully to understand their rights and responsibilities.
Section 3 Renter Rights and Responsibilities (cont.) Renters are asked to sign a lease or agreement describing the terms of the rental property.lease They are generally required to pay a security deposit which is equal to one months rent. security deposit –This is returned after the tenant has moved out, depending on the condition of the apartment and all rent was paid.
Section 3 Rights of tenants: –To use the property for the purpose stated in the lease. –To have a certain amount of privacy. Renter Rights and Responsibilities (cont.)
Section 3 Responsibilities of tenants: –Paying the rent on time –Taking good care of the property –Notifying the landlord of needed repairs –Giving notice or a formal warning, if he or she plans to move before the term of the lease is up Renter Rights and Responsibilities (cont.) View: Before You SignBefore You Sign
Section 3 Responsibilities of landlords: –They must make sure that their apartments have certain minimum services. –They must obey building safety laws. –They must make repairs within a reasonable amount of time. Renter Rights and Responsibilities (cont.)
A.A B.B C.C D.D Section 3 What might happen if you need to move early? A.You cannot leave early. B.The landlord keeps your furniture. C.You might owe several months rent immediately. D.You must find someone else to rent it.
Section 3 Purchasing a House Potential home buyers need to consider many different costs before deciding to purchase a house.
Section 3 Purchasing a House (cont.) One of the major challenges facing a home buyer is obtaining the mortgage. The mortgage will then be repaid in monthly installments that include interest on the loan. In addition to the down payment, you will need funds for the closing costs which are fees related to transferring ownership of the property.closing costs View: The Cost of OwnershipThe Cost of Ownership
Section 3 You should also become knowledgeable about points which are fees paid to a lender and computed as a percentage of the loan.points Purchasing a House (cont.)
A.A B.B C.C D.D Section 3 When do lenders charge points? A.Always B.When the current interest rate is not high enough C.When the current interest rate is too high D.When the house is expensive
Section 4-Main Idea Section Preview In this section, you will learn how to go about buying and operating a vehicle, along with the costs involved.
Section 4-Objectives period status Academic Vocabulary
A.A B.B C.C Section 4-Polling Question Do you feel that deciding which type of car to buy would be complicated? A.Yes B.No C.Maybe
Section 4 Buying a Car Buying a car involves comparing many variables, such as the initial purchase prices, repair histories, warranties, and styles of different makes and models.
Section 4 Buying a Car (cont.) Considerations: –The amount of money and time spent shopping for the car. –The amount of money and time spent purchasing the car. –New or used?
Section 4 Buying a Car (cont.) Every owner must pay a state licensing or registration fee. registration fee Some people buy an extended warranty to protect owners for all major repairs except tune-ups and damage resulting from improper use of the car.
A.A B.B C.C D.D Section 4 Which consideration would be the most important to you when buying a car? A.Safety B.Fuel efficiency C.Price D.Make/model
Section 4 Operating a Car Operating a car is expensive, involving the costs of gasoline, routine maintenance, major repairs, depreciation, and insurance.
Section 4 Operating a Car (cont.) The amount of normal maintenance depends on the amount the car is driven and how carefully the owner maintains the car. Check the repair records of different cars before deciding on a particular make and model. Take a used car to a diagnostic center, or have a mechanic check it before purchasing.
Section 4 Operating a Car (cont.) All durable goods depreciate or decline in value over time. Causes: –A car loses value every year even if it is not driven because it is a durable good. –The technology and features of new makes and models make older models obsolete. –Physical wear and tear.
Section 4 Operating a Car (cont.) Everyone who drives must carry auto insurance. Liability insurance pays for bodily injury and property damage if in an accident.Liability insurance View: How Car Insurance Rates Are SetHow Car Insurance Rates Are Set
Section 4 Operating a Car (cont.) Insurance companies classify drivers according to: –Age –Gender –Marital status –The type of car you drive –Where you drive –What you use the car for
Section 4 Operating a Car (cont.) –Safety record –Grades –Number of drivers
A.A B.B C.C D.D Section 4 Which driver would pay the most insurance? A.A married man in the city B.A teenager in the city C.A straight-A student in the country D.A woman who drives a sports car
VS 1 When buying any necessities, including food and clothing, there is often a trade-off between quality and price.
VS 2 When deciding whether to rent or buy a home, you should consider the advantages of each option.
VS 3 When buying a car, you will have many trade-offs to consider before deciding what type of vehicle is best for you.
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Vocab1 club warehouse store: store that carries a limited number of brands and items in large quantities and is less expensive than grocery stores
Vocab2 convenience store: store open 16 to 24 hours a day, carrying a limited selection of relatively higher-priced items
Vocab3 private-labeled products: lower- priced store-brand products carried by some supermarket chains and club warehouse chains
Vocab4 durability: ability of an item to last a long time
Vocab5 service flow: amount of use a person gets from an item over time and the value a person places on this use
Vocab6 lease: long-term agreement describing the terms under which property is rented
Vocab7 security deposit: funds a renter lets an owner hold in case the rent is not paid or the apartment is damaged
Vocab8 closing costs: fees involved in arranging for a mortgage or in transferring ownership of property
Vocab9 points: fees paid to a lender and computed as a percentage of a loan
Vocab10 registration fee: licensing fee, usually annual, paid to a state for the right to use a car
Vocab11 liability insurance: insurance that pays for bodily injury and property damage
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