Buying the Necessities

Food Clothing Housing Rent or Buy Buying a Vehicle

Shopping for Food Comparison shopping Compare sizes and brands Compare prices at stores Only spend as much time as worthwhile

Trade-offs Club warehouse stores Convenience stores Limited # of brands and items Large quantities Lowest prices for food Convenience stores Limited selection of items Open more hours Save time, but higher price

Clothing Style Durability Cost of Care Sales and lists Stylish often costs more Durability Cost of Care Dry clean only clothing Sales and lists

Housing How much should you spend? Down payments Closing costs Three Rules Purchase price/annual income = 2.0 or less Mortgage payment/monthly income = 33.3% Loan amount/appraised value = 95% Down payments Closing costs Title search, legal fees, loan application, credit report, inspections and taxes

Purchasing a House Mortgages Fixed Rate Flexible Rate FHA Interest rates and monthly payments remain the same Flexible Rate Rates and payments can change FHA FHA insures your loan Rates don’t change Loan is higher Graduate Payment – monthly payments change Veterans Admin

Renting Sign a lease Tenant Rights Long term agreement describing terms under which property is rented Tenant Rights Use of property for stated purpose Privacy Landlord cannot enter whenever they want

Renter Responsibilities Paying rent on time Taking care of the apartment Security deposit Formal notice of leaving Landlord Responsibilites Minimum services repairs

Buying a Car Registration fees Extended warranties Depreciation of a car as it ages Liability insurance Covers bodily injury and property damage Varies based on age, gender, driving history