Comparison ShoppingEPF.10f Demonstrate comparison shopping

skillsEPF.11a Compare the costs and benefits of

purchasing vs. leasing a vehicleEPF.11f Evaluate discretionary spending

decisions

EPF.10f Demonstrate comparison shopping skillsComparison shopping provides information to help consumers obtain the best quality for the best price.

What are some of the considerations to be taken when comparison shopping? • value • time • convenience • dollar costs • payment options • negotiations of prices and terms • the consequences of conspicuous consumption • opportunity cost • costs and benefits.

EPF.11a Compare the costs and benefits of purchasing vs. leasing a vehicleThere are costs and benefits to purchasing a vehicle and costs and benefits to leasing a vehicle.

What are the steps in purchasing or leasing a vehicle? 1. Consumers should identify several

alternative vehicles, including new and used.

2. Consumers should gather information and test-drive multiple vehicles.

3. Consumers should compare each alternative to the criteria established to determine which vehicles best meet them, keeping in mind that not all criteria are equally important.

What are the costs and benefits of purchasing vs. leasing a vehicle? Considerations in purchasing or leasing a vehicle may include: performance safety odometer mileage average miles driven annually fuel consumption size appearance price/payment limit insurance costs, taxes, and maintenance options/features warranty depreciation and resale.

What are subjective and objective sources of purchase and lease information?

Information should include both: subjective resources

advertisements sales representatives consumer reviews

objective resources statistically based research published consumer data – ex. Consumer Reports

EPF.11f Evaluate discretionary spending decisions

Consumers should weigh costs and benefits to prioritize discretionary spending decisions.

What is discretionary spending?

Discretionary spending is spending for goods and services beyond the essentials of food, shelter, and clothing.

Discretionary spending allows consumers freedom of choice in what to purchase and how much to spend on such things as education, health care, entertainment, transportation, and communication technology.

What tools can consumers use to evaluate discretionary spending decisions? Consumers can weigh costs and benefits of

alternative spending choices. Consumers can use decision models to clarify

choices. Consumers can consider saving as an

alternative to current spending.