Smart Consumer SpendingAdvanced Curriculum

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 2Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Planned Buying Process

Prioritize Wants

Conduct Research

Spending Plan

Evaluation

Make the Purchase

From Initial desire to buy

ToSatisfaction after the

purchase

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 3Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

2.6.6.G1

Planned Buying Process Principles

Apply it each time a purchase

is madeOngoing cycleEssential

consumer skill

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 4Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Durable vs. Consumable Goods

Durable

Does not quickly wear out

More expensive (typically)

Cell phone, automobile

What are examples of durable and consumable

goods?

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 5Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Applying the Planned Buying Process

Investing time typically results in greater satisfaction and is a positive financial management practice

Process applies, but less time is spent

Durable

Consumable

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 6Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Prioritize Wants

Distinguishing

between needs

and wants

results in

Ability to prioritize spending decisions

Your present self impacts your future self

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 7Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

2.6.6.G1

When Prioritizing Wants

Analyze the opportunity cost and trade-offs

Examine the impact on your spending plan

Consider personal and social factors influencing your choice

How do personal and social factors influence individuals?

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 8Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Conduct Research

Conducting research helps you…

Identify the best option Be satisfied with the purchase

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 9Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Information Sources

Be a critical

consumer!

Seller

Consumer Reports

Appropriate Licenses

Product ReviewsWhat are

questions critical consumers ask?

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 10Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Consider Purchasing Options

Used vs. New

Store vs. Name Brand

Where to Purchase

When to Purchase

Depending on the item, several options may exist:

What are example of items available as used or store-brand?

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 11Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

2.6.6.G1

Consider Product Features

Safety Ratings

Expected Durability

Maintenance Required

Hidden Costs

Warranties

Environmental Impact

What are product features of automobiles?

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 12Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Product PricePrices vary widel

y acros

s seller

s

Different

version of the same

product may

be availab

le

Rank the

priorities of

different

product

features

Determine

which option provide

s the most

desired features

at the lowest

cost Option 1:

Price:Option 2:Price:

Option 3:Price:

Rank features in order of importance

Place a if the option includes that feature.

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 13Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

2.6.6.G1

Spending Plan Evaluation

How will you pay for the item?

Will this become a contractual expense?

What is the trade-off to this purchase?

What is the cost of ownership?

Before making the purchase, evaluate your spending plan:

What is an item you currently use that has a cost of ownership?

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 14Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Cost Per Use

$100 prom dress

Worn once

Cost per use: $100How can cost per use influence purchasing decisions?

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 15Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Make the Purchase

Sales Personnel

•Be comfortable with him/her•Prepare yourself in advance to negociate

Seller•Make sure they are reputable•Ask about their refund, return or cancellation policies

When making the purchase, be confident with the company and staff!

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 16Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Online Purchases

Online Purchase

Use only secure sites

Use a credit card (not a debit card)

Review shipping and return policies

Save documentation

What are principles to making a safe online purchase?

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 17Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

2.6.6.G1

Redress

If you are not satisfied with your purchase:

Evaluate sellers return policy

Learn if there laws that protect consumers for the specific item

Process of righting a wrong

© Take Charge Today – August 2013– Smart Consumer Spending – Slide 18Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences Take Charge America Institute at the University of Arizona

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Summary

The planned buying process should be used for all purchases

The amount of time spent on this process will vary

Consumers have a variety of product options

Be a critical consumer to maximize satisfaction