1. Buying the Necessities

2. Food
Clothing
Housing
Rent or Buy
Buying a Vehicle

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

4. 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

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

6. 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

7. 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

8. 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

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

10. 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