Section 2.1

What is Most Important!! Priorities—Your judgment about the relative importance of the alternatives. Need vs. Want Need: these are what you must have to live. Wants: These are the things you desire but are not needed to live.

Values Values are strongly held beliefs and principles about what is worthwhile. *Examples: Honesty, respect, kindness, courtesy, and fairness.

Standards Standards are established levels of quality or quantity to measure against.

Types of goals Short term—these are goals that can be completed with in six months. Long term goals—these are goals that will take longer than six months to complete.

Achieving Goals Set goals with care Prepare to deal with difficulties Enlist the support of others Acknowledge your success and failures

Section 2.2

Types of Resources Resources include anything that is useful or helpful in the process of achieving goals or solving problems. Human resources—these are found with in people Time Financial resources Material and technological resources Community resources—provided by government and private organizations Natural resources.

Scarcity and Opportunity Cost Scarcity—the fact that because of limited resources, an economic system can’t possibly produce all the goods and services that people want. Opportunity cost: What you give up when you decide t use resources one way rather than another.

Using Resources Effectively Expand resources Conserve Resources Substitute Resources Exchange Resources

Management Skills The management process Planning Organizing Implementing Evaluating

Managing Time and Energy Stay Focused Identify time wasters Get Organized Plan Ahead Make to-do lists Take action. Make use of free time Value other people’s time.

Goal Assignment Choose one short term or long term financial related goal that you have and use the information that you learned about the goal setting process to describe how you will reach this goal.

Section 2.2

How do you decided what to buy??? Impulse purchase—The immediate decision to buy an item. Marketers aim for this.

Scarcity and Opportunity Cost Scarcity—the fact that because of limited resources, an economic system can not possibly produce all the goods and services that people want. Opportunity cost: What you give up when you decide t use resources ne way rather than another.

Decision Making Process Identify the decision Identify resources and collect information Identify the options Weigh the options Choose the best option Take action Evaluate the decision

Factors Affecting Consumer Decisions Personal Factors Family Factors Culture Socialital and Demographic factors Social Factors Fads Status Symbols Conspicuous Consumption

Factors Affecting Consumer Decisions Economic Factors Technology Media The Marketplace Legal and moral factors

Evaluating Information Sources Critically thinking skills are need to make an informed decision about major purchases.

Evaluating information What is the source of the information. What authority or expertise does the source have. Is the source biased Is the information fact or opinion How can I confirm the information.

Sources of consumer information Consumer protecting agencies Professional Advisors Media Sources Package information Advertising Salespeople Other consumers.

Decision Making Process Assignment Using the decision making process, think of the last big purchase that you made. Describe how you went through the process of making this consumerchoice. What effected the choice you made and did you realize that you were actually using this process at the time.