Buying the Necessities Chapter 5 Buying the Necessities

You decide What to shop for Where to shop Comparison Shopping You decide What to shop for Where to shop NOTE: additional costs of time and transportation may outweigh any potential savings

Convenience store – limited selection of brand names at higher prices Trade-Offs in Stores Buy food at grocery stores or in club warehouse stores (largest potential savings in bulk) Convenience store – limited selection of brand names at higher prices

Private-Label (Generic) How to Save Money! Private-Label (Generic) Lower-priced products Trade-off between quality and price Larger the quantity, the lower the per-unit price Cents-off coupons – worth it??? Store discount cards – keeping track of customers? Real savings?

When buying any necessities, including food and clothing, there is often a trade-off between quality and price. Page 135

Comparing Clothing Value Depends on Style Durability Cost of care Purchase price

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When deciding whether to rent or buy a home, you should consider the advantages of each option. No large down payment, just 1-2 months rent Freedom to decorate or remodel Page 135

Renter Rights and Responsibilities Sign a lease – describes the terms Pay a security deposit – one month’s rent Returned after tenant has moved out, money may be kept if property not kept up or not all rent paid Rights of Tenants To use the property for the purpose stated in the lease To have a certain amount of privacy

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Responsibilities of Tenants Paying the rent on time Taking good care of property Notifying the landlord of needed repairs Giving notice or a formal warning if plan on moving before the term of the lease is up

Responsibilities of Landlords Maintain property – certain minimum services Obey all building safety laws Make repairs within a reasonable amount of time

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Purchasing a Car Considerations Registration fee – everyone pays Money and time spent shopping for car Money and time spent purchasing car New or used? Used, check repair records and have a mechanic check Registration fee – everyone pays Extended warranty? – major repairs

When buying a car, you will have many trade-offs to consider before deciding what type of vehicle is best for you. Page 135

Operating a Car Expensive – gasoline, routine maintenance, major repairs, depreciation, and insurance Depreciation Causes Durable good – loses value each year Technology becomes obsolete Physical wear and tear Auto Insurance – everyone must have!

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