1. Review of Chapter 27: Money Management
Money means different things to different people. For some, it’s tied to emotions.
A checking account offers a safe, convenient alternative to paying in cash, but it must be used responsibly.

2. Review of Chapter 27: Money Management
Buying goods with credit allows you to have items now and pay for the later
Different types of credit included credit cards, installment accounts and loans

3. Review of Chapter 27: Money Management
A financial plan outlines future spending based on income, expense and priorities.
By creating a financial plan, you devise a way to manage your spending and saving

4. Review of Chapter 27: Money Management
Making a financial plan for a family can be more difficult than making an individual plan because each family member may have different values and priorities about money management
Effective, usable financial plans reflect the needs, wants and resources of the family’s stage of development

5. Review of Chapter 27: Money Management
Financial danger signs:
Paying only the minimum amount due on credit accounts
Paying regular monthly bills with loans or savings
Using credit to pay for items that are normally paid for with cash
Not knowing how much your total debt is and how much interest you’re paying
Depending on irregular income, such as overtime or tax refunds, to pay bills

6. Being a Good Consumer Chapter 28.1
CONSUMER SKILLS
Being a Good Consumer Chapter 28.1

7. Objectives Explain how skillful consumers judge quality price
Explain what ‘comparison shopping’ means
Describe impulse buying
Give tips for saving money
Recognize and explain different ways advertisers try to get you to buy their product

8. Vocabulary: Consumer Bargain Unit price Comparison shopping Warranty
Impulse buying
Direct advertising
Indirect advertising

9. Traits of Skillful Consumers
A consumer is simply a person who purchases goods and services.

10. To be a Skillful Consumer,…
Become familiar with available products, prices, and standards of quality
Read and do research to learn what features to look for or avoid
Use self-discipline to resist society’s message to buy more than you need

11. What is Quality? “They just don’t make things like they used to”
“I’ll never buy that brand again”
If something has quality:
It is well-made
Works right
Will last

12. Two Consumer Advocate Groups
Consumer Reports
Consumers Research Magazine
These two groups test products in laboratories and then report to readers
This information is available at the public library
internet

13. A Fair Price To be a true bargain, you must look at four conditions:
The product is one you need, want, and will use
The item’s quality is suitable
The product sells at a price you’re willing to pay
A reliable dealer sells the item

14. Comparison Shopping
Comparison Shopping means you look at the same item in several stores to compare quality and price before you buy
Tips for comparing:
Know what you want (know features)
Use the telephone (call around)
Compare similar items
Check any warranty
Compare credit terms
Check the return policy

15. Warranty:
A written guarantee

16. Impulse Buying “I just couldn’t resist”
Impulse buying is purchasing items without previous consideration or thought
Retailers promote impulse buying in stores
Check-out aisles

17. Controlling Impulse Buying
You must know what you truly need and can afford to pay
Bring a shopping list- helps you focus on what you intend to buy
Only take enough money to cover what you’ve planned to buy- no credit cards!

18. Analyzing Advertising
Advertising is everywhere!
Television
Radio
Newspapers
Magazines
Buses
Billboards
Clothing
Internet…

19. Advertising Techniques
Direct Advertising tries to convince you to buy a particular product by appealing directly to your values
focus on glamour, health, happiness, good looks, love
Indirect Advertising is more subtle
celebrity association to a product, printing of company or product names on clothing

20. A Critical Eye Learn to separate fact from fiction
Recognize ‘no-promise’ promises
Conditional words such as ‘can’ and ‘often’
Watch out for below- cost sales
Be careful of percent- off ads
Store raises prices then advertises ‘30% off selected items’
Get the whole story
Fees
Cost of everything else you’ll need

21. Use Your Knowledge
Max has a $.75 coupon for a brand-name toothpaste that costs $3.45 without the coupon. The house brand, which is the same size, costs $ Which should he buy?

22. Check Understanding What are two traits of a good consumer?
What conditions make a purchase a bargain?
What is a warranty?
How can a person control impulse buying?
Describe two types of advertising techniques.

23. CONSUMER RIGHTS AND RESPONSIBILITIES
Chapter 28.2

24. Consumers have both rights and responsibilities in the marketplace
State and federal laws protect consumers’ interests, or rights
At the same time, however, consumers also have responsibilities. To earn your rights as a consumer, you have to live up to your responsibilities.

25. Consumer Rights: Consumers have 4 major rights: To safety
To be informed
To choose
To be heard

26. Consumer responsibilities:
Be careful
Be considerate shoppers who treat merchandise as carefully as if they owned it
Pay for all merchandise (no shoplifting)
Save sales records and receipts
Follow product instructions

27. Consumer complaints You can file a consumer complaint
You can return merchandise for a refund or replacement
You can write a letter of complaint
Several government agencies and business organizations (like Better Business Bureau) can help
Consumers can dispute thought small claims court

28. Reflection
Answer the following reflection questions on the back of your note sheet
Many people seem to believe that happiness comes through possessions. Do you agree? Support your answer with examples.
Some people admit to being “shopaholics”. When does this trait become a problem?

29. Do you struggle with impulse buying. If yes, provide and example
Do you struggle with impulse buying? If yes, provide and example. If no, why do you think you can stay away from impulse buying?
Should consumers be able to claim their rights if they don’t live up to their responsibilities? Explain.