Chapter 5 Buying the Necessities by wuzhenguang

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									CHAPTER 5
Buying the Necessities
COMPARISON SHOPPING

You   decide
  What  to shop for
  Where to shop
  NOTE: additional costs of time
   and transportation may outweigh
   any potential savings
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
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?
When buying any necessities, including
food and clothing, there is often a trade-off
between quality and price.




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COMPARING CLOTHING VALUE
   Depends on
     Style
     Durability
     Cost of care
     Purchase price
Page 123
When deciding whether to rent or buy a
home, you should consider the advantages
of each option.




No large down payment,   Freedom to decorate or
just 1-2 months rent     remodel


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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
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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
RESPONSIBILITIES OF LANDLORDS
 Maintain   property – certain minimum
  services
 Obey all building safety laws

 Make repairs within a reasonable amount
  of time
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PURCHASING A CAR
   Considerations
     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
When buying a car, you will have many
trade-offs to consider before deciding
what type of vehicle is best for you.




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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!
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