Chapter 5 I can identify a variety of ways to save money when shopping for food. Comparison Shopping Compare Brand Names and Remember: Time is an Grocery Stores Carries largest variety of food brands, foods, and services Club Warehouse Stores Limited in Brand Choice and Items Sold in Opportunity Cost: Must have Money saved up in Often a membership fee Convenience Stores Open hours a day More expensive than grocery stores Brand-Name Well known throughout the country or region Private-Labeled Produced specifically Food Club, Great Value, Kroger Manufacturer? Bulk Foods Typically: Larger quantity = Lower price/unit Offered by Can save you large amounts of money HOWEVER Opportunity Cost: Money Saved vs. Time Spent collecting Often requires to buy more than needed Makes consumer buy brand name products Advantage Card/Loyalty Card Lower prices if used Criticisms Customers paying actual price / non-cardholders paying higher prices Tracking spending habits I can identify a variety of ways to save money when shopping for food. I can identify methods to help make wise consumer choices when shopping for clothes Price not the only factor in determination Changes with recent trends Name brand vs. Store brand (cheaper) Purchasing for Service Flow (amt of time you are able to use the item and value placed on use) Certain fabrics last longer Dry Cleaning (more costly) Hand Wash Only? Opportunity Cost Clothing costs gone down over the years BUT can still save money Used Clothing Lower Prices Holiday Shopping Sales Seasonal Sales Shop Online Avoid Designer Labels Avoids Impulse Buying I can identify methods to help make wise consumer choices when shopping for clothes I understand the advantages and disadvantages to both renting and buying a home Advantages: Dont pay Maintenance Costs or Property Taxes Disadvantages: Nothing when decide to leave Often cannot Advantages: Can make look as you choose Disadvantages: Property Taxes, Home Owners Insurance, Possibly Mortgage Insurance Housing Market (value, selling, etc.) I understand the advantages and disadvantages to both renting and buying a home I know and understand rights and responsibilities as a rentor Agreement (usually) between 1 to 3 years Money kept by landlord in case of skipped rent or damage to the rental Tennant Rights: Privacy Tennant Responsibilities: Take care of property Landlord Responsibilities: Apartments must have minimum services Obey building safety laws Tenant can make repairs and withhold rent of repairs not made quickly Avoid These Clauses: Landlords lawyer can plead in a court case FOR YOU if owner feels their rights been violated Give up your right to sue owner for negligence Arbitrary Clauses Owners right to cancel lease for any reasons Try to Have Added These Clauses: List of what comes with rental List of community facilities you get to use Other promises made by owner (painting, etc.) Right to cancel lease for emergency (payment stated in lease) Right to change rental to suit you (ceiling fan, shelves, pics, etc.) I know and understand rights and responsibilities as a rentor I can go through the process of purchasing a home No more than 33% towards Housing Comparison Shop, Pre-Qualify, and sign a Mortgage Long term installment debt (Principle + Interest) Escrow Accounts Pay for Homeowners Insurance (required), Property Taxes in Mortgage Payment (Mortgage Insurance) Closing Costs Extra Fees to Buy a House Check on Title, Appraisal, Loan App, Credit Check, Inspection, Taxes, etc. Points? Fees paid to lender when dont feel interest is enough to make profits. Each point equals 1% of purchase cost of home EX. 1 point on a $100,000 mortgage = $1,000 Must be paid up front I can go through the process of purchasing a home I know and understand the important things to consider when purchasing a car New cost more but less repairs Used Get the Car Facts Look at the history or maintenance, accidents, etc. Have looked at by independent mechanic Usually annually, sometimes biannually (by state) Varies based on type, weight, age, and value Additional money to extend Lemon Laws also provide protection Normal Maintenance and Major Repairs Depends on how much driven and how well taken care of Decline in value over time All durable goods deteriorate over time and lose value Technology makes depreciation occur Wear and tear General rule is about 20% a year first 2 years REQUIREMENT IN STATE OF OHIO FOR LIABILITY Pays any bodily or property damage you cause if in accident Based on demographic statistics States have Price Limits that can be charged I know and understand the important things to consider when purchasing a car I can identify the factors that could lead to higher insurance rates Type of Car Safety record of car, costs to repair, etc. Where you Drive Theft rate, population, etc. Uses of the Car How many miles a day do you drive the car Marital Status Married have lower accident rates than single Safety Record Your driving history Grades Most companies offer good student discounts. EVEN THROUGH COLLEGE!! Number of Drivers How many drivers use the car Age Younger drivers in more accidents = higher insurance rates Liability Collision Comprehensive Uninsured/underinsured motorist Bodily Injury Rental/Towing I can identify the factors that could lead to higher insurance rates