1. Chapter 3

2.  I can understand the important role consumers play in the economy and can describe how consumers make decisions.

3.  Consumers  Role dependent on  Disposable Income –  Food, Clothing, Shelter, Energy  Discretionary Income – ◦ Spent on all other items  Earning Power based on: ◦

5.  What does it show???  Who uses a Budget???  Why is a Budget Useful???

6.  Should I Buy Item in the First Place???  Once you decide to purchase must consider:  Time and Money  Consider Quality  Higher Quality means  Done when you consider all options when purchasing goods and services

7.  I know and understand the 3 buying principles and strategies

8.  How Much Information Should You Get?  Develop a Knowledge Base ◦ USE THE  Read Reviews  Compare Brands, Stores, Warranties, Prices, Etc.

9.  Competitive – ◦ Used to steal customers  Informative –  Do not fall for ◦ Know your consumer rights

10.  Decide to buy the product  Newspaper, Telephone, Internet, Visit, Talk with others  Don’t just go by price, Also Consider ◦ backed by major manufacturer vs. Generic (difficult to determine who made product) ◦ Special Financing ◦ 0% for certain number of months  Most Useful When: ◦ Price and/or Quality Varies Greatly

11.  I can identify and explain the 5 consumer rights protected by U.S. Government

12.  (1960s)  JFK (1962) ◦ Right to Safety – ◦ Right to Be Informed – ◦ Right to Choose – ◦ Right to Be Heard –  Richard Nixon ◦ Right to Redress –

13.  I can explain my responsibilities as a consumer

14.  Complain to Manager and/or Manufacturer ◦ Small Claims Court  Better Business Bureau ◦ Better Business Bureau Better Business Bureau  Online Shopping ◦ Reputation of Seller ◦ Read Disclosure Statements ◦ CHECK THE LINK  Use Ethical Behavior ◦ Returns!!