Review of Chapter 27:
Money Management
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
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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
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
Review of Chapter 27:
Money Management
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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
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
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
CONSUMER SKILLS
Being a Good Consumer
Chapter 28.1
Objectives
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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
Vocabulary:
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
Consumer
Bargain
Unit price
Comparison shopping
Warranty
Impulse buying
Direct advertising
Indirect advertising
Traits of Skillful Consumers
A consumer is simply a person who purchases
goods and services.
To be a Skillful Consumer,…
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
Become familiar with
available products,
prices, and standards
of quality
Read and do research
to learn what features
to look for or avoid
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Use self-discipline to
resist society’s
message to buy more
than you need
What is Quality?
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“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
Two Consumer Advocate Groups
Consumer Reports

These two groups test
products in
laboratories and then
report to readers
Consumers Research Magazine
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This information is
available at the public
library
internet
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
Comparison Shopping
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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
Warranty:
A written guarantee
Impulse Buying
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“I just couldn’t resist”
Impulse buying is purchasing items without previous
consideration or thought
Retailers promote impulse buying in stores
 Check-out
aisles
Controlling Impulse Buying
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You must know what
you truly need and
can afford to pay
Bring a shopping listhelps you focus on
what you intend to buy
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Only take enough
money to cover what
you’ve planned to
buy- no credit cards!
Analyzing Advertising

Advertising is everywhere!
 Television
 Radio
 Newspapers
 Magazines
 Buses
 Billboards
 Clothing
 Internet…
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
A Critical Eye
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Learn to separate fact
from fiction
Recognize ‘no-promise’
promises
words such
as ‘can’ and ‘often’
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 Store
raises prices then
advertises ‘30% off
selected items’
 Conditional
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Watch out for belowcost sales
Be careful of percentoff ads
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Get the whole story
 Fees
 Cost
of everything else
you’ll need
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?
Check Understanding
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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.
CONSUMER RIGHTS AND
RESPONSIBILITIES
Chapter 28.2
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Consumers have both
rights and
responsibilities in the
marketplace
State and federal
laws protect
consumers’ interests, or
rights
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At the same time,
however, consumers
also have
responsibilities. To
earn your rights as a
consumer, you have to
live up to your
responsibilities.
Consumer Rights:

Consumers have 4 major rights:
 To
safety
 To be informed
 To choose
 To be heard
Consumer responsibilities:
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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
Consumer complaints
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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
Reflection
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1.
2.
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?
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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.