1. Buying the Necessities
Chapter 5
Buying the Necessities

2. 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

3. 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

4. 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?

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

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

7. Page 123

8. 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

9. 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

10. Page 127

11. 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

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

13. Page 128

14. 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

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

16. 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!

17. Page 132