1. Buying Necessities

2. Comparison Shopping- Food Shopping for food involves many considerations: brands sizes quantities unit prices freshness coupons store location.

3. Trade-Offs Deciding what food to buy involves numerous trade-offs. Where to shop: grocery stores club warehouse store Negative: Club Fees Bulk Positive: Cheaper prices convenience store Negative: less selection expensive Positive: close to home

4. Buying Clothes Comparison shopping is important to buying clothing wisely. Clothing value depends on three factors: – Style or the latest trend – The durability of an item.durability – Cost of care is the money and effort you put into maintaining the item like dry cleaning. Consumers have many alternatives to buying clothing at full retail price.

6. Should you rent or should you buy? There are advantages and disadvantages both to buying a home and renting a place to live. Benefits to renting – No down payment (only a security deposit and one or two months rent up front) – No maintenance costs or real estate taxes – Greater mobility

7. Benefits to buying a home – Significant income tax benefits – The owner builds equity. Houses generally appreciate, or go up in value over the years. – Pride of ownership – Freedom to decorate or remodel

8. Renters are asked to sign a lease or agreement describing the terms of the rental property. lease They are generally required to pay a security deposit which is equal to one month’s rent.security deposit This is returned after the tenant has moved out, depending on the condition of the apartment and all rent was paid. Tenents responsibilities: – To use the property for the purpose stated in the lease. – Paying the rent on time – Taking good care of the property – Notifying the landlord of needed repairs – Giving notice or a formal warning, if he or she plans to move before the term of the lease is up Renters and Tenents rights and responsibilities

9. Responsibilities of Landlords: – They must make sure that their apartments have certain minimum services. – They must obey building safety laws. – They must make repairs within a reasonable amount of time.

10. Purchasing a house: The mortgage will then be repaid in monthly installments that include interest on the loan. In addition to the down payment, you will need funds for the closing costs which are fees related to transferring ownership of the property.closing costs $388,500 $400 (0.1%) - 08/21/12 *est. monthly payment: $1,789.84 Check your 2012 Credit Score 4 br 3487 sq. ft., 0.45 acres Built in: 2007

11. Things to consider: The amount of money and time spent shopping for the car. The amount of money and time spent purchasing the car. New or used? Every owner must pay a state licensing or registration fee. registration fee The cost of buying and operating a car

12. COSTS OF GASOLINE ROUTINE MAINTENANCE MAJOR REPAIRS DEPRECIATION INSURANCE- REQUIRED BY TN STATE LAW! LIABILITY INSURANCELIABILITY INSURANCE PAYS FOR BODILY INJURY AND PROPERTY DAMAGE IF IN AN ACCIDENT. Operating a car is expensive because of the following:

13. – AGE – GENDER – MARITAL STATUS – THE TYPE OF CAR YOU DRIVE – WHERE YOU DRIVE – WHAT YOU USE THE CAR FOR – SAFETY RECORD – GRADES – NUMBER OF DRIVERS Car Insurance: Insurance companies classify drivers according to:

14. A CAR LOSES VALUE EVERY YEAR EVEN IF IT IS NOT DRIVEN BECAUSE IT IS A DURABLE GOOD. THE TECHNOLOGY AND FEATURES OF NEW MAKES AND MODELS MAKE OLDER MODELS OBSOLETE. PHYSICAL WEAR AND TEAR. Why does a car depreciate?