Presentation on theme: "Review of Chapter 27: Money Management"— Presentation transcript:
1 Review of Chapter 27: Money Management Money means different things to different people. For some, it’s tied to emotions.A checking account offers a safe, convenient alternative to paying in cash, but it must be used responsibly.
2 Review of Chapter 27: Money Management Buying goods with credit allows you to have items now and pay for the laterDifferent types of credit included credit cards, installment accounts and loans
3 Review of Chapter 27: Money Management A financial plan outlines future spending based on income, expense and priorities.By creating a financial plan, you devise a way to manage your spending and saving
4 Review of Chapter 27: Money Management Making a financial plan for a family can be more difficult than making an individual plan because each family member may have different values and priorities about money managementEffective, usable financial plans reflect the needs, wants and resources of the family’s stage of development
5 Review of Chapter 27: Money Management Financial danger signs:Paying only the minimum amount due on credit accountsPaying regular monthly bills with loans or savingsUsing credit to pay for items that are normally paid for with cashNot knowing how much your total debt is and how much interest you’re payingDepending on irregular income, such as overtime or tax refunds, to pay bills
6 Being a Good Consumer Chapter 28.1 CONSUMER SKILLSBeing a Good Consumer Chapter 28.1
7 Objectives Explain how skillful consumers judge quality price Explain what ‘comparison shopping’ meansDescribe impulse buyingGive tips for saving moneyRecognize and explain different ways advertisers try to get you to buy their product
9 Traits of Skillful Consumers A consumer is simply a person who purchases goods and services.
10 To be a Skillful Consumer,… Become familiar with available products, prices, and standards of qualityRead and do research to learn what features to look for or avoidUse self-discipline to resist society’s message to buy more than you need
11 What is Quality? “They just don’t make things like they used to” “I’ll never buy that brand again”If something has quality:It is well-madeWorks rightWill last
12 Two Consumer Advocate Groups Consumer ReportsConsumers Research MagazineThese two groups test products in laboratories and then report to readersThis information is available at the public libraryinternet
13 A Fair Price To be a true bargain, you must look at four conditions: The product is one you need, want, and will useThe item’s quality is suitableThe product sells at a price you’re willing to payA reliable dealer sells the item
14 Comparison ShoppingComparison Shopping means you look at the same item in several stores to compare quality and price before you buyTips for comparing:Know what you want (know features)Use the telephone (call around)Compare similar itemsCheck any warrantyCompare credit termsCheck the return policy
16 Impulse Buying “I just couldn’t resist” Impulse buying is purchasing items without previous consideration or thoughtRetailers promote impulse buying in storesCheck-out aisles
17 Controlling Impulse Buying You must know what you truly need and can afford to payBring a shopping list- helps you focus on what you intend to buyOnly take enough money to cover what you’ve planned to buy- no credit cards!
18 Analyzing Advertising Advertising is everywhere!TelevisionRadioNewspapersMagazinesBusesBillboardsClothingInternet…
19 Advertising Techniques Direct Advertising tries to convince you to buy a particular product by appealing directly to your valuesfocus on glamour, health, happiness, good looks, loveIndirect Advertising is more subtlecelebrity association to a product, printing of company or product names on clothing
20 A Critical Eye Learn to separate fact from fiction Recognize ‘no-promise’ promisesConditional words such as ‘can’ and ‘often’Watch out for below- cost salesBe careful of percent- off adsStore raises prices then advertises ‘30% off selected items’Get the whole storyFeesCost of everything else you’ll need
21 Use Your KnowledgeMax has a $.75 coupon for a brand-name toothpaste that costs $3.45 without the coupon. The house brand, which is the same size, costs $ Which should he buy?
22 Check Understanding What are two traits of a good consumer? What conditions make a purchase a bargain?What is a warranty?How can a person control impulse buying?Describe two types of advertising techniques.
23 CONSUMER RIGHTS AND RESPONSIBILITIES Chapter 28.2
24 Consumers have both rights and responsibilities in the marketplace State and federal laws protect consumers’ interests, or rightsAt the same time, however, consumers also have responsibilities. To earn your rights as a consumer, you have to live up to your responsibilities.
25 Consumer Rights: Consumers have 4 major rights: To safety To be informedTo chooseTo be heard
26 Consumer responsibilities: Be carefulBe considerate shoppers who treat merchandise as carefully as if they owned itPay for all merchandise (no shoplifting)Save sales records and receiptsFollow product instructions
27 Consumer complaints You can file a consumer complaint You can return merchandise for a refund or replacementYou can write a letter of complaintSeveral government agencies and business organizations (like Better Business Bureau) can helpConsumers can dispute thought small claims court
28 ReflectionAnswer the following reflection questions on the back of your note sheetMany people seem to believe that happiness comes through possessions. Do you agree? Support your answer with examples.Some people admit to being “shopaholics”. When does this trait become a problem?
29 Do you struggle with impulse buying. If yes, provide and example Do you struggle with impulse buying? If yes, provide and example. If no, why do you think you can stay away from impulse buying?Should consumers be able to claim their rights if they don’t live up to their responsibilities? Explain.