1. Needs vs. Wants

2. Focus Questions What is the difference between needs and wants?
What factors should you consider when you go comparison shopping?
What marketing tools and tactics do companies use to encourage you to buy more expensive brands or simply to overspend?
What elements make ads effective?

3. Consumers people who acquire goods and services
Need is a necessity – a good or service that you must have to survive – like food, shelter, medical, and clothing
Want is something you desire; it is not necessary

4. Spending Your Money Needs Versus Wants
Bread
Steak
Water
Hi-def TV
Rent
Camera
Electric
Designer clothes
Medicine
Downhill skis
Work shoes
MP3 player

5. Discretionary income is money left over after savings and essential expenses have been accounted for

6. Spending Your Money Decision to Buy
Create spending chart
Consider opportunity costs
What is the opportunity cost of buying video game equipment?
Wait for answers to question about opportunity cost of video equipment and then click to show restaurant graphic

7. Breaking the spend, spend, spend cycle
Remove your emotions from your finances
Determine your spend, share, and save percentages
Think about your own values
Think about what you need
Learn to separate your needs from your desires
Know your strengths and weaknesses

8. Spending Your Money Consumers
Big spenders (spendthrifts)
Addicted
Penny-pinchers

9. Decision to Buy What brand to buy Where to buy
Whether to buy now, or later

10. Do you know anyone who is addicted to spending?
Who is hurt if someone is addicted to spending?
What advice would you give to someone who is addicted to spending?
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11. Comparison shopping researching various brands to buy the highest quality item at the lowest price

12. Your Spending Budget
Opportunity cost the cost of giving up one thing to get something else

13. Assessment Name two ways you might comparison shop.
How can peer pressure influence your spending decisions?
What is opportunity cost?
Imagine that you have a younger brother who loves to buy new video games and spends all his money on them. A new video game console is coming out next month, and he is desperately scrambling and pleading for money to buy it. What kind of advice would you offer him about making this purchase?

14. 5. You have always wanted a Vera Wang jacket, and you see one on sale for half price - today only. Even on sale, the price is still about twice what you would normally pay for a jacket. You have enough money in your checking account and would not have to withdraw from savings. You tell yourself you will not buy any other new clothes this winter, just to have this jacket. What are the pros and cons of such a decision?