Chapter 7 Buying Decisions Lesson 7-1 Designing a Buying Plan LEARNING OBJECTIVES: - DISCUSS THE RESULTS OF BEING FINANCIALLY RESPONSIBLE AND FINANCIALLY.

Slides:



Advertisements
Similar presentations
Making Consumer Choices
Advertisements

NEFE High School Financial Planning Program
6.01- Shopping Options Effective Shopping Practices.
Credit/Consumer Rights
Chapter 14 Managing Your Money Chapter 14 Managing Your Money Lesson 14.2 You, the Consumer Lesson 14.2 You, the Consumer.
Review of Chapter 27: Money Management
Chapter 7 Buying Decisions
Spend Wisely. Purchasing Choices Impulse buying: when you do not think about a purchase ahead of time. Impulse buying: when you do not think about a purchase.
Consumer Services Chapter 10-3: Managing Your Money.
Credit and Borrowing Vault Lesson 4.
Chapter 8: Automobiles and Other Major Purchases.
Smart Consumer Spending Advanced Curriculum. © Take Charge Today – August 2013– Smart Consumer Spending – Slide 2 Funded by a grant from Take Charge America,
Comparison Shopping. Shopping Shopping is what you do when you spend income (money you have earned). You can do this in a variety of ways: a. In Store.
3/12/15 BR – Describe the process you go through (if any) when it comes to making a choice about buying something. For example, if you were going to buy.
Schedule  An organized written plan to help reach your goals within a certain period of time.
Your Role as a Consumer. Disposable and Discretionary Income Disposable – Income a person has left after all taxes have been paid – Used to buy necessities.
Personal Finance Final Jeopardy GoalsCareer/collegeBudgetingBankingCredit/Taxes.
Subtitle Making and Living Within a Budget. How should you spend your money? How do you spend your money?
Chapter 25 pp What Is Credit?.
LESSON 8-3 CREDIT MANANGEMENT LEARNING GOALS: - LIST WAYS TO REDUCE YOUR CREDIT COSTS AND LOWER YOUR DEPENDENCE ON CREDIT. - EXPLAIN HOW TO AVOID CREDIT.
Smart Consumer Spending Advanced Curriculum. © Take Charge Today – August 2013– Smart Consumer Spending – Slide 2 Funded by a grant from Take Charge America,
© Take Charge Today – August 2013 – Understanding Credit Cards – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family.
MANAGING YOUR PERSONAL FINANCES FINANCIAL PLANNING: YOUR ROADMAP TO SUCCESS MRS. GRAY SPRING 2015 – Q3.
NOTE: To change the image on this slide, select the picture and delete it. Then click the Pictures icon in the placeholder to insert your own image. Lesson.
EconomicSocial FactorsPersonal Factors Prices Interest Rates Product Quality Supply and demand Convenience Product Safety Brand Name Maintenance Costs.
Financial Decisions and Planning. CHRIS TUCKER DORTHY HAMILL MIKE TYSON NICHOLAS CAGE.
Credit Pros and Cons Unit 1 Lesson 4. Introduction Credit use carries an important responsibility. Credit use carries an important responsibility. When.
Got Credit? Bankruptcy Law Debt? Moving Out Grab Bag Know That.
SESSION 3: FINANCIAL GOAL SETTING, SPENDING, AND CREDIT TALKING POINTS on SETTING & ACHIEVING FINANCIAL GOALS FINANCIAL GOAL SETTING, SPENDING, AND CREDIT.
Bell Ringer #1 - Chapter 3 Create a list of disposable/need expenses and another for discretionary/want expenses using the items listed below. Electric.
Road to Financial Maturity Saving & Budgeting. Why Money Skills Are Important  Create Independence  Set and reach goals  Enjoy living responsibly within.
Chapter 7 Buying Decisions. Slide 2 How Can You Be a Responsible Shopper? 7-1 Designing a Buying Plan Use systematic decision making: consider all the.
A Responsible Shopper Uses systematic decision making: considers the pros and cons of a choice along with the costs. Be financially responsible: plan your.
How to Buy Something By: Katie Adler. What to Buy  Decide what you would like to buy, then head to the store!
PERSONAL FINANCE Financial planning for individuals. Generally, it involves analyzing your current financial position, predicting short-term and long-term.
Beware: Fringe Banking Pawn Shops Rent-to-Own Programs Check Cashing Outlets Refund Anticipation Loans (RALs) Payday Lending Credit “fixers”
Personal Finance and Resource Management Objective 2.01.
Warm UP 1.What is the difference between gross pay and net pay? 2.What is the difference between a deduction and a bill? 3.What is the difference between.
Ch. 7 Financial Literacy. Describe a financially irresponsible person : bills not paid on time inadequate basics to live comfortably spends money on luxury.
Sit at the desk Get something out to write with. You will need to take notes! Answer Question on Handout.
© 2013 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Financial Literacy Buying a Car.... Finance Options: Savings – Put a regular amount into a Bank Account each month. Expect to receive around 2.75% interest.
Section 1- Designing a Buying Plan CHAPTER 7.  Systematic Decision Making  The process of making choices that reflect your goals  Consider pros and.
“Most people don’t plan to fail… They simply fail to plan!” 1-A.
Chapter 3.  I can understand the important role consumers play in the economy and can describe how consumers make decisions.
Grade 12 Family Studies.  Do you have a credit card?  What is it used for?  How is it like a loan?
Decisions and Goals in Personal Finance Chapter 1 Section 1 Personal Financial Planning.
Overview of Personal Finance © 2010 Pearson Education, Inc. All rights reserved Chapter 1.
BEING A SMART SHOPPER AND MAKING THE RIGHT PURCHASES AND FINANCE OPTIONS FOR THOSE PURCHASES Fashion Merchandising Standard 8.
Chapter 7 Buying Decisions. Slide 2 Where Can Consumers Get Credit? Credit is the ability to borrow money and pay it back later. 7-2 Getting Started with.
Practical Math: Credit Cards Chapter 7 Notes. Vocabulary credit card: a card that allows you to buy items now and pay later monthly statement: form like.
Personal Finance Money Management Choices SS6E4 & SS7E4
Chapter 7 Buying Decisions. Slide 2 How Can You Be a Responsible Shopper? 7-1 Designing a Buying Plan Use systematic decision making: consider all the.
0 Holmes Chpt 1 Personal Financial Planning EQ = Essential Questions Knows = Vocabulary Understandings = Why learn this Dos = Skilled at activities.
Mastering Money  Money is anything you exchange for goods or services.  Cash is the money made out of paper (dollar bills) and metal (coins).  Electronic.
Personal Finance Chapter 4 Review.
Consumer Economics Credit Credit Investing Investing.
6.01- Shopping Options Effective Shopping Practices.
PERSONAL FINANCE GAME This project counts as a TEST grade. LISTEN and follow directions! Excel Sheets: 1- MONTHLY BUDGET SHEET 2- CHECKING ACCOUNT 3- SAVINGS.
What Are The Options If You Need Cash Now?
Smart Consumer Spending
Smart Consumer Spending
LESSON TWO: PERSONAL SPENDING
ASSETS – LIABILITIES = EQUITY
Smart Consumer Spending
Smart Consumer Spending
Smart Consumer Spending
Financial Literacy - Consumer
Personal Finance Unit 1 INCOME
Smart Consumer Spending
Presentation transcript:

Chapter 7 Buying Decisions Lesson 7-1 Designing a Buying Plan LEARNING OBJECTIVES: - DISCUSS THE RESULTS OF BEING FINANCIALLY RESPONSIBLE AND FINANCIALLY IRRESPONSIBLE. - DESIGN A BUYING PLAN AND DISCUSS HOW IT IS EVALUATED, FINANCED, AND IMPLEMENTED.

Being a Responsible Shopper  Responsible shopping requires systematic decision making, which is the process of making choices that reflect your goals by considering all the pros and cons along with the costs. This makes you financially responsible.

Financial Responsibility vs. Irresponsibility  Financial Responsibility is being able to meet your financial goals through planned earning, spending, and saving.  People who are financially responsible are able to:  Live a comfortable lifestyle  Provide for their own wants and needs  Enjoy vacations and leisure time  Save money for known and unknown future events  Pursue interests, hobbies, and cultural events.  Financial Irresponsibility is failing to live up to your financial obligations to meet your goals and needs.  Financial irresponsibility symptoms include the following:  Bills are not paid in a timely manner.  There is inadequate food, clothing, and shelter to live a comfortable lifestyle.  Money is spent on luxury items while basic needs are not being met.  A month’s paychecks do not last the entire month.  Borrowed money is not repaid in a timely manner or at all.

A Buying Plan  A buying plan is an organized method for making good buying decisions.  Creating a Buying Plan  Step 1 – Define Your Spending Goals. Items you buy should be selected to meet your needs and wants. What other item must you forego buying in order to buy this item.  Step 2 – Choose the Item to Buy.  Step 3 – Define criteria. Criteria are standards or rules by which something can be judged. For an item you want to purchase, the criteria would be the desired features, functions, and quality of the item.  Step 4 – Set a timeline. Decide how soon you want to make the purchase.  Step 5 – Set a spending limit. A spending limit is the maximum amount you are willing to pay for an item.

Implementing a Buying Plan  Comparison Shopping – You can make a better choice when you know all of the options available.  Might be rebates available. A rebate is a refund of part of the purchase price of an item.  Is an extended warranty available? An extended warranty is additional coverage that you can buy to pay for repairs or replacements needed beyond the original warranty.  Payment Methods  Check or cash  Debit or Credit Card  Financing Options – Ways you can pay for an item other than with cash.  Make the Purchase –  Check the item to make sure it is in good condition.  Ask about warranties and return policies.  Evaluating the Purchase  Are you satisfied? Did you follow a buying plan? Did you get a good value for the money you spent?

Assignment  Pg. 226 – Answer questions 1-9, 12-19