2. BEING A SMART SHOPPER AND MAKING THE RIGHT PURCHASES AND FINANCE OPTIONS FOR THOSE PURCHASES Fashion Merchandising Standard 8

3. Objectives  Students will understand basic skills to help them be smart shoppers and make good purchases.  Objective 1: Identify skills necessary to become a competent and well informed consumer.  Objective 2: Identify the various payment options available to consumers (cash, credit, layaway).  Objective 3: Define the following credit terms: credit limit, credit rating, 30-day charge account, revolving charge account, and installment plan.

4. Being a Smart Shopper!!  It is worth your while to become a competent and well-informed consumer.  Save time  Save money  Making smart clothing buys is a skill you can learn.  Steps to being prepared:  Evaluate what you have  Make a list

5. Prepare Ahead  Gather Information:  Being informed can make you more confident and reduce your shopping errors. To gather information:  Read magazines and newspapers  Find out new silhouettes, colors and fabrics  Browse department stores and window displays  Look new ways of putting outfits together, accessories, etc.  Decide where to shop:  Plan large purchases first  When to shop:  For best selection- early in season is always better than late

6. Shopping Anyone?  Go alone  Take a close friend or relative if needed  Control “impulse buying”  Develop “sales resistance”  Use good shopping manners  Wait your turn  Be courteous  Pick up dropped items

7. Comparison Shopping  Compare the qualities and prices of the same or similar items in different stores before buying.

8. Checking the Fit of a Garment  Wear the underclothes you will wear with the garment.  Look at all views in the dressing room mirror.  Move around to check out the feel and look.  Make sure the shoulder length is comfortable and the neckline fits smoothly.  There should be enough ease across the chest and back to prevent pulling or stretching.

9. Types of Payment  Now that you have been through the process of deciding what to buy, you need to consider your options, when it comes to methods of payment. Some of the choices are:  Cash Cash  Layaway Layaway  Credit Credit

10. Cash- Bling, Bling!!  Advantages: Not in debt for purchase No bills Discipline yourself Avoid spending money you don’t have  Disadvantages:  Might spend money on wrong things  Not enough money for your real needs  Could lose cash  Can’t establish credit

11. Writing a Check  Advantages: Gives another record No need to carry cash  Disadvantages:  Could forget to write check down  Could get overdrawn

12. Debit Cards  Looks like a credit card  Funds are deducted from your bank account  Advantages: Don’t have to carry cash Don’t get bills later  Disadvantages:  Have to keep track  Can go over limit

13. Layaway  The store puts the item away for you for a certain period of time, if you make a deposit on the item  Disadvantages:  Can’t have item until paid in full  If you change your mind, you may pay a penalty  Advantages: You don’t pay interest Helps budget

14. Credit Purchases “Buy now Pay later”  Advantages: Don’t have to carry cash Easier returns Have merchandise now, pay later  Disadvantages:  Pay interest  Can go over budget  Fraudulent use by others

15. Types of Credit Cards  Third-Party:  Most widely used by consumers  May have reward benefits  Ex. Visa, MasterCard, Discover  Bank Issued:  Managed by issuing financial institution  Most common are Visa and MasterCard  Name of financial institution also appears on card  May have reward benefits  Company/Store Issued:  Managed by issuing company/store  May or may not be used in locations other than the issuing company/store  May have reward benefits

16. Credit Terms  Credit Limit:  Maximum financial amount a person may have outstanding on a charge or other credit account.  Credit Rating:  Evaluation of the financial standing of a person or business based on past records of debt repayment, financial status, etc.  30-Day Charge Account:  Must be paid in full by 30 days after the billing date.  Revolving Charge Account:  Credit account that may be paid in full or in monthly installments with added finance charges but may not exceed a total predetermined credit limit.  Installment Plan:  Credit arrangement by which a down payment is made toward a specific large purchase, and a contract specifies the periodic payments and finance charges.