Being a Wise Consumer Consumer Vocabulary

Competencies Define consumer terms. Define agencies and publications that deal with consumer protection. Recognize what it means to be a “wise consumer.”

Personal Consumer Rating

If you were given $1,000 today, what would you do with it? Do you check your receipts to make certain that you have been charged correctly? Do you count your change to make certain that it is correct? Do you compare different prices and brands of the same item at more than one store, then select the best value to purchase?

Do you compare the warranties of different brands when selecting a brand to purchase? If you feel you have been wronged by a business, do you complain to the business and attempt to right the wrong? Do you find your self buying things that you had not planned to buy? Do you save money regularly? Do you often find yourself borrowing money from parents, friends or siblings?

Do you keep a record of what you earn and what you spend? Do you shop sales? Do you read the instructions for use and care of a product and follow them? Do you keep your sales receipts, warranties, and instructions? Do you read the store’s return and exchange policy before making your purchase?

Rating On question #1, give yourself five points if you selected something to do with your money that is consistent with your goals and values in life. Give yourself two points for each question you answered as follows: #2 Yes #6 Yes #10 Yes #3 Yes #7 No #11 Yes #4 Yes #8 Yes #12 Yes #5 Yes #9 No #13 Yes #14 Yes

What your score means! 25-31 points Great! Keep up the good work! 19-24 points Fair. You should begin to make some changes. 14-18 points Not too good. Consider making some big changes. Less than 14 Take good notes during this unit, you’ll need them!!!

Gathering Consumer Information You will make a more satisfying purchase if your research your alternatives!

1. Quality Is the product well constructed?

2. Cost What is the lowest price for this product?

3. Availability Where is it available? Is it in stock?

4. Warranty If I’m not satisfied, may I return the product for a full refund?

5. Reputation Reputation is the general opinion people have of a person or company.

Sources of Information Information about products and services is available from a variety of sources:

1. Family and Friends

2. Advertising I Love Adult Roles and Responsibilities.

3. Sales and Informational Brochures

4. Catalogs

5. Magazines and Newspaper Articles

Consumer Product Testing Organizations

Juggling Money

Juggling Money You will be broken up into groups of 8-10 people. Each group will be given a set of balloons. The goal in this activity it to keep all of the balloons up in the air and off the floor. Each group will add one balloon at a time until all of the balloons have been added to the circle. Each group will be given one additional balloon that says bankruptcy on it. No matter what don’t let that balloon hit the floor.

Juggling Money Questions 1. Did you find it difficult to keep the all of balloons in the air? Why? Was it difficult to keep one balloon in the air? Why? How can you compare this experience to money management? Was it difficult to keep the bankruptcy balloon in the air? Why? Can you see why people have a difficult time managing money?

Consumerism: Vocabulary Words You will be going down to the Writing Lab to obtain these definitions. Go through the power point presentation as outlined. If two people want to work per computer I am fine with that. Good luck and have fun!! A work sheet will be provided for you working ease.

Consumer Anyone who uses goods or services or buys goods or services.

Better Business Bureau (BBB): A non-profit organization sponsored by local businesses. It offers a variety of consumer services at no charge to help with consumer complaints. It can provide consumer education materials, answer consumer questions, and provide general information about a company’s consumer complaint record,.

Food and Drug Administration FDA: A Federal agency that was formed to set and enforce safety standards for food, drugs, and cosmetics. They have the authority to stop the sale of an item under their jurisdiction, if it is found to be harmful or hazardous. They may also require safety warnings to be placed on harmful or hazardous products. This is the agency which tests new drugs and medications before they are put on the market.

Consumer Product Safety Commission (CPSC): A federal agency that was formed to set and enforce safety standards of products such as household appliances, toys and tools. If a product under the jurisdiction of the CPSC is found to be harmful or hazardous, they can prevent that products from being sold, or they can require the manufacturer to repair or replace the product. The CPSC will also investigate complaints from consumers about products.

Federal Trade Commission (FTC): A federal agency which was formed to protect consumers against false advertising, illegal sales schemes, and all unfair trade practices.

Bureau of consumer Protection: A federal agency which provides sate and local consumer protection offices which help answer consumer questions or problems. Many offices enforce consumer protection and fraud laws. They can help resolve consumer complaints and provide consumer education materials.

Warranty A statement made by a manufacturer or seller of a product or service concerning the responsibility for quality, characteristics, and performance of the product or service.

Unfair Trade Practice: Any business practice which is considered unethical or illegal.

Supply The amount of goods and services available for sale at various prices at stated times.

Second A product that does not meet the standard requirements. It is sometimes labeled irregular and may contain minor flaws of imperfections.

Service Work performed to meet the needs of those buying the work, such as repair work, personal grooming services, house cleaning, and transportation. This also includes the professional services of doctors, lawyers, teachers, etc.

Monopoly A market situation in which only one organization produces the entire output of an industry or sells a product or service for which there is not substitute.

Needs The basic items a person must have to survive.

Impulse Buying Unplanned consumer purchases, usually done on the spur of the moment usually involving items on display or at reduced prices.

Comparison Shopping Looking at different brands and models of the same item in various stores to compare price, quality, features, and store services before buying.

Name Brand A brand name that is widely recognized and sold in many different stores. Because of extensive advertising, the name is associated with quality..

Store Brand A brand owned by a particular store or chain of stores. The store will either manufacture their own product and put their name on it, or purchase the product from a manufacturer with the right to place their own name on the product. For example Albertsons/Albertsons brand Harmon’s/TV, Thriftway/ Western Family, Smith’s/Smith’s brand

Generic Brand Surplus products purchased form many different manufacturers and then labeled with plain white and black labels stating what the product is and giving necessary information. Since the product comes from many different manufactures, the quality varies greatly.

Full Warranty Repair or replacement must be free, in a reasonable amount of time, without placing unreasonable demands on the consumer.

Limited Warranty May require the consumer to pay labor fees or handling charges and may require the consumer to ship the product to the seller or an authorized service dealer for repairs.

Implied Warranty of Merchantability: The product actually is what it is called and does what its name implies.

Implied Warranty of Fitness The product is fit for any performance or purpose promised by the seller and that there are no defects in the product at the point of sale.

Turn in your WS! Celebrate!! You made it!