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Review of Chapter 27: Money Management

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. . Review of Chapter 27: Money Management.

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Review of Chapter 27: Money Management

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  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. 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 $2.65. 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. 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.

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