1. A Responsible Shopper Uses systematic decision making: considers the pros and cons of a choice along with the costs. Be financially responsible: plan your earning, spending, and saving to meet your financial goals.  A financially responsible person is able to: Live a comfortable lifestyle Provide for their own needs and wants Enjoy vacations and leisure time Save money for their future and emergencies

2. Symptoms of Financial Irresponsibility Financial Irresponsibility is failing to live up to your financial obligations to meet your goals and needs Symptoms of a financially irresponsible person: Paying your bills late Unable to live comfortably (food, clothing, shelter) Money spent on luxury items while basic needs are not met Monthly paycheck does not last the entire month Stress and pressure can lead to poor family relationships Unhealthy lifestyle and lack of recreation and fun

3. What Is a Buying Plan? An organized method for making good buying decisions. Step 1: Define your spending goal. Step 2: Choose the item to buy -Comparison shop Step 3: Define criteria (features, functions, and quality of item you want to purchase). Step 4: Set a timeline. Step 5: Set a spending limit. ***Helps to prevent buyers remorse

4. Buying Plan for a Washer and Dryer Spending GoalItemCriteriaTimeline Spending Limit To wash clothes at home rather than at a Laundromat (saving time and money) Washer and dryer (new or used) Washer should be heavy-duty, have cycles for different kinds of clothes, and have a bleach dispenser. Dryer should be electric (not gas) and have several heat settings. 1 year or sooner $750

5. Where Can You Get Credit? Credit is the ability to borrow money and pay it back later, with interest. o Service credit - receive services now and pay later. o Ex: Electricity, Doctors o Credit cards - charge to account up to a maximum. o Store accounts - charge account only for that store. o Charge cards - must pay balance in full each month + annual fee. o Ex: American Express and Diners Club. o Consumer loans – loan of cash (fixed interest rate and set time). o Ex: Car, Home Repairs o Lines of credit- preapproved loan amount to borrow as needed. No interest charged until you use it o Ex: Offered through banks and credit card companies