UNIT 3- BE A CRITICAL CONSUMER Section 1.1 Decisions, Decisions Section 1.5 Advertising and Consumer Decisions Section 3.1 Consumer Rights and Responsibilities Section 3.2 Government and Consumer Protection Section 3.3 Deception and Fraud

Section 1.1 Decisions, Decisions  Identify several important values you hold.  Explain how creating a life-span plan or goals helps you make better decisions.  Describe what an opportunity cost is.

Key Terms  Values  Goals  Needs  Wants  Long-term goal  Life-span  Life-span goals  Life-span plan  Short-term goals  Opportunity Cost

You’ve got the Power- Buying Power  As a consumer, you have the power to choose what you buy and where you buy it.  Businesses spend a lot of money each year researching what customers want.  You have the power to make so many decisions that you may wonder where to start. Knowing your values is a good place to begin. Values are your principles – the standards by which you live.

Values- how do they impact decisions?  You were just given $1000, write down in your notebook how you would spend it.  People value things differently.  Values are not constant, they change as you learn and grow.  Before making a decision, consider what you value most!

How do goals impact your decisions?  Goals are the things you want to accomplish in life.  Goals come from your values, your needs & wants and your hopes & dreams.  What is the difference between a need and a want? Needs- the things you cannot live without Wants- the things that you would like to have but can live without.

A Life-Span Plan (The Importance of Setting Goals)  Your life-span is the time from your birth to your death.  When you are young you will set long-term goals: things you would like to achieve over a period of years.  Life-span goals are the most important long-term goals you hope to reach during your life span. A life-span plan is a strategy people create to help them achieve their life-span goals.  Short-term goals are things you hope to accomplish within a year. Your short-term goals should contribute to achieving your life-span goals over time.

What is an Opportunity Cost?  An opportunity cost is the value of your next best alternative whenever you make a choice. (basically it is what you give up when making a decision)  For example:  Go to college vs. Get a job after high school  If you go to college what is your opportunity cost? The money you don’t earn if you were working  If you get a job what is your opportunity cost? The value of your degree which usually leads to more income over the course of your career.

Opportunity Cost & Decisions Final thoughts on making decisions: 1. When making a decision consider the things you have to give up. 2. Ask yourself if the reward gained from choosing one alternative is worth the cost of giving up another alternative.