Consumerism

Budgeting and Shopping Strategies

Establish a food budget and stick to it! How to set up a food budget: a. Keep a spending record for 3 months. b. Record all the money you spend on food in and out of the home. c. Add the 3 months worth together, then divide by 3, to get your average d. that’s your budget. How to set up a food budget: Keep a spending record for 3 months. Record all the money you spend on food in and out of the home. Stick to your budget!!

Shopping Strategies a. Create a categorized shopping list b. Take calculator c. Avoid shopping hungry or tired – you’ll spend more $$ d. Shop alone- no one else to tell you what they want Create a categorized shopping list Makes your shopping more organized and easier to complete Take calculator Helps you keep track of what you spend while you shop. Avoid shopping hungry or tired You will spend more money if you shop hungry or tired. Shop alone You will save money shopping alone. No children telling you they want this and that.

Advertising Strategies Loss leaders: They get you into the store to purchase the bargain and often end up buying extra items. Impulse buys- Items you did not intend on buying, Most popular and profitable items are at eye level to encourage buying, End isle displays Layout of store and shelf placement Lighting and colors Beware of Loss leaders They get you into the store to purchase the bargain and often end up buying extra items. Impulse buying Items you did not intend on buying Most popular and profitable items are at eye level to encourage buying End isle displays Layout of store Set the most sought after items in the rear of the store. This forces shoppers to walk past other items that may be purchased on impulse. Shelf placement of items Place more popular brands and more expensive brands at eye level

Advertising Strategies e. Coupons/Rebates Offered on national brands, final costs are less. Try new products Purchase unneeded item f. Window displays g. Music/Noise to draw attention to items Coupons usually offered on national brands; check cost of other brands to compare. Use coupons when the final cost is less than other comparable brands/products. Coupons are often used to get consumer to try new products. Consumer often purchase items they don’t use/need because of the coupon incentive. Rebate coupons – often require original receipt and proof of purchase. Hard to sometimes track; additional time and postage incentive.

Unit Pricing/Cost Per Serving How much the item costs per unit/serving Total price divided by the number of units/servings. Sometimes listed on the store shelf. With larger packages even if it is cheaper per unit not always best buy if the product isn’t going to be used before the expiration date or spoilage. Define: Price per unit – ounce, quart, pound or other unit to show the best value. How to figure out: Unit price/cost per serving = total price divided by the number of units/servings. Where to find on label: Unit pricing is often figured and listed on the store shelf.

Practice Unit Pricing Which is the better buy? 7-pack of plastic rings for $0.77 8-pack of plastic rings for $0.80 A 4-pack of wooden boxes costs $4.60. What is the unit price? $1.15 per box Answer: 8-pack of plastic rings for $0.80* Answer: $1.15 per box

National Brands vs. Store Brands a. Store brands usually less expensive and often same quality, produced more locally. b. National brands= less control, shipped out Store brands usually less expensive and often same quality; often manufactured by a national company. Check unit pricing of brand to compare. Buy for intended use – store brands that have lower quality and appearance; may work for food products where appearance isn’t a major factor.

Convenience Foods Food products sold prepared or semi-prepared. Usually has preservatives, higher amounts of fat, sugar and salt Saves time, costs more. Paying for things like packaging, advertising, convenience Convenience foods are food products sold prepared or semi-prepared. Convenience foods come in many forms – Canned, dried, frozen or fresh Generally the more the food is processed/prepared the higher the cost. Save time but consumer will pay for the service of the preparation. When taking into account the cost of time, some convenience foods are worth the added cost.

Eating Out a. People are eating out more- spending more $ b. Fast food meals often are higher in fat and salt than home-prepared meals. c. Portion sizes are “off” More and more meals are eaten outside the home or prepared and brought into the home. Greater variety of types of foods available; keep in mind the MyPyramid and Dietary Guidelines. – Fresh Salads, Fruits, etc. Fast food meals often are higher in fat and salt than home-prepared meals. Portion sizes may be larger which often encourages overeating On a limited budget reducing the amount of food eaten out can save money.

Food Labels

Components of a Food Label Nutritional Facts nutritional information or claims are made. Examples: provides 9 essential vitamins and minerals Daily % Values Indicates the percent of nutrients the product contains. Label is based on 2000 calorie diet. c. Serving Size Must be consistent with federal standards d. Ingredient List Will always be listed largest amount to the smallest amount. Nutritional Facts Must include facts if any nutritional information or claims are made. Examples – provides 9 essential vitamins and minerals Ingredient List Will always be listed largest amount to the smallest amount. Daily % Values Indicates the percent of nutrients the product contains. Fat, cholesterol, sodium, total carbohydrates. Label is based on 2000 calorie diet. Serving Size Must be consistent with federal standards

Additional Label Requirements Identifying statement or name Net weight or net contents Special information that affects people with health problems Artificial coloring Flavoring and preservatives Wheat, soy, dairy, etc. Name and place of manufacturer

Food Label Terms “Low in”- can be eaten frequently, wont exceed DV “Reduced”, “Less”, or “Fewer”- At least 25% less of something, than regular version of that food. “Good Source of”- Contains 10-19% of the daily food value D. “High Source of…” At least 20% of DV Low in The food could be eaten frequently without exceeding recommended amounts. i.e. fat, saturated fat, cholesterol, sodium or calories. Low in fat means that one serving has no more than 3 grams of fat. Reduced, Less, or Fewer The food must have at least 25% less of something (fat, calories, sodium) than a comparison food. The term reduced is used when the food has been nutritionally altered. Good Source of One serving of the food contains 10-19% of the daily food value for a particular nutrient.

Food Label Terms F. “100% Juice” E. “Organic” and “Natural” Organic= no genetic modifications or chemicals. Natural= minimally processed, some additional ingredients (sugar to sweeten, etc) F. “100% Juice” Must be 100% juice. Juice cocktail=10-50% water/sugar Fruit-flavored=no juice Organic and Natural Have not been defined by law. High Source of Fiber At least 20% from fiber. Juice Must be 100% juice. Products using the terms fruit drink or fruit beverage may contain less than 10% fruit juice.

Dates on Labels A. Sell Date Last day to be in stores. B. Use By Date Date to use product by while at peak quality. Sell Date Indicates the last day the product should remain on the store shelf. Allows a reasonable amount of time for home storage/use after that date. May also say “sell by (date) or best if purchased by (date)” Examples – dairy products, cold cuts. Use By Date Recommended date to use the product by while at peak quality. Product may still be safe to eat after the date has passed. Quality will start to go down. Examples – breads, cereals, dressings.

Dates on Labels C. Open Dating How long stores can display the product for sale. Consumer know the time limit to purchase or use product at its best quality D. Expiration Date The last date a food should be eaten or used. Open Dating "Open Dating" (use of a calendar date as opposed to a code) on a food product is a date stamped on a product's package to help the store determine how long to display the product for sale. It can also help the purchaser to know the time limit to purchase or use the product at its best quality. It is not a safety date. After the date passes, while not of best quality, the product should still be safe if handled properly and kept at 40 °F or below for the recommended storage times listed on the chart (see below). Expiration Date The last date a food should be eaten or used. Last means last -- proceed at your own risk.

Summary Become a better consumer by understanding what information is on food labels. Be careful with your money. Budget wisely. Be cautious of advertising strategies. Understand how unit pricing works. Know what types of brands of foods are available. Evaluate if convenience foods and eating out is right for you and your budget.