Chapter 5

 I can identify a variety of ways to save money when shopping for food.

 Comparison Shopping ◦ Compare Brand Names and  Remember: Time is an

 Grocery Stores ◦ Carries largest variety of food brands, foods, and services  Club Warehouse Stores ◦ Limited in Brand Choice and Items  Sold in  Opportunity Cost:  Must have  Money saved up in  Often a membership fee  Convenience Stores ◦ Open hours a day ◦ More expensive than grocery stores

 Brand-Name ◦ Well known throughout the country or region  Private-Labeled ◦ Produced specifically  Food Club, Great Value, Kroger ◦ Manufacturer?  Bulk Foods ◦ Typically: Larger quantity = Lower price/unit

 Offered by  Can save you large amounts of money HOWEVER ◦ Opportunity Cost: Money Saved vs. Time Spent collecting ◦ Often requires to buy more than needed ◦ Makes consumer buy brand name products

 Advantage Card/Loyalty Card ◦ Lower prices if used  Criticisms ◦ Customers paying actual price / non-cardholders paying higher prices ◦ Tracking spending habits

 I can identify a variety of ways to save money when shopping for food.

 I can identify methods to help make wise consumer choices when shopping for clothes

 Price not the only factor in determination ◦ Changes with recent trends ◦ Name brand vs. Store brand (cheaper) ◦ Purchasing for Service Flow (amt of time you are able to use the item and value placed on use) ◦ Certain fabrics last longer ◦ Dry Cleaning (more costly) ◦ Hand Wash Only?  Opportunity Cost

 Clothing costs gone down over the years BUT can still save money ◦ Used Clothing Lower Prices ◦ Holiday Shopping Sales ◦ Seasonal Sales  Shop Online  Avoid Designer Labels ◦ Avoids Impulse Buying

 I can identify methods to help make wise consumer choices when shopping for clothes

 I understand the advantages and disadvantages to both renting and buying a home

 Advantages: ◦ Don’t pay Maintenance Costs or Property Taxes  Disadvantages: ◦ Nothing when decide to leave ◦ Often cannot

 Advantages: ◦ Can make look as you choose  Disadvantages: ◦ Property Taxes, Home Owners Insurance, Possibly Mortgage Insurance ◦ Housing Market (value, selling, etc.)

 I understand the advantages and disadvantages to both renting and buying a home

 I know and understand rights and responsibilities as a rentor

◦ Agreement (usually) between 1 to 3 years ◦ Money kept by landlord in case of skipped rent or damage to the rental  Tennant Rights: ◦ Privacy  Tennant Responsibilities: ◦ Take care of property  Landlord Responsibilities: ◦ Apartments must have minimum services ◦ Obey building safety laws  Tenant can make repairs and withhold rent of repairs not made quickly

 Avoid These Clauses:  Landlords lawyer can plead in a court case FOR YOU if owner feels their rights been violated  Give up your right to sue owner for negligence ◦ Arbitrary Clauses  Owners right to cancel lease for any reasons  Try to Have Added These Clauses: ◦ List of what comes with rental ◦ List of community facilities you get to use ◦ Other promises made by owner (painting, etc.) ◦ Right to cancel lease for emergency (payment stated in lease) ◦ Right to change rental to suit you (ceiling fan, shelves, pics, etc.)

 I know and understand rights and responsibilities as a rentor

 I can go through the process of purchasing a home

 No more than 33% towards Housing  Comparison Shop, Pre-Qualify, and sign a Mortgage ◦ Long term installment debt (Principle + Interest) ◦ Escrow Accounts  Pay for Homeowners Insurance (required), Property Taxes in Mortgage Payment (Mortgage Insurance)  Closing Costs ◦ Extra Fees to Buy a House  Check on Title, Appraisal, Loan App, Credit Check, Inspection, Taxes, etc.  Points? ◦ Fees paid to lender when don’t feel interest is enough to make profits. ◦ Each point equals 1% of purchase cost of home  EX. 1 point on a $100,000 mortgage = $1,000 ◦ Must be paid up front

 I can go through the process of purchasing a home

 I know and understand the important things to consider when purchasing a car

◦ New cost more but less repairs ◦ Used  Get the Car Facts – Look at the history or maintenance, accidents, etc.  Have looked at by independent mechanic  ◦ Usually annually, sometimes biannually (by state) ◦ Varies based on type, weight, age, and value ◦ Additional money to extend ◦ Lemon Laws also provide protection

 Normal Maintenance and Major Repairs ◦ Depends on how much driven and how well taken care of ◦ Decline in value over time ◦ All durable goods deteriorate over time and lose value ◦ Technology makes depreciation occur ◦ Wear and tear ◦ General rule is about 20% a year first 2 years ◦ REQUIREMENT IN STATE OF OHIO FOR LIABILITY  Pays any bodily or property damage you cause if in accident ◦ Based on demographic statistics ◦ States have Price Limits that can be charged

 I know and understand the important things to consider when purchasing a car

 I can identify the factors that could lead to higher insurance rates

 Type of Car ◦ Safety record of car, costs to repair, etc.  Where you Drive ◦ Theft rate, population, etc.  Uses of the Car ◦ How many miles a day do you drive the car  Marital Status ◦ Married have lower accident rates than single  Safety Record ◦ Your driving history  Grades ◦ Most companies offer good student discounts. EVEN THROUGH COLLEGE!!  Number of Drivers ◦ How many drivers use the car  Age ◦ Younger drivers in more accidents = higher insurance rates

 Liability  Collision  Comprehensive  Uninsured/underinsured motorist  Bodily Injury  Rental/Towing

 I can identify the factors that could lead to higher insurance rates