Comparison Shopping Independent Living

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

What are your spending habits?Think about the last item you purchasedDid you look at the product carefully, or consider other options before purchasing it?Did you buy the first thing you saw?Based on size?Based on color?Based on price?Compare products?

Are you an impulse shopper or a comparison shopper?

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Shopping HabitsImpulse BuyingUnplanned buyingLittle consideration of the product or other optionsemotional buyingComparison ShoppingPlanned buyingCareful consideration of the product, features, price and qualityrational buying

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Triggers Impulse BuyingSales or Low PricesAppeals to the emotional side of consumersAvailability: Get it while its still in stockNew products with more featuresEasy access: stores/television/web (online shopping)Advertisement: commercial/products imageInstant Gratification

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

http://www.youtube.com/watch?v=Htlxal60EDU&feature=related

http://www.youtube.com/watch?v=T27SA7Qommo

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Comparison ShoppingBenefits of comparison shoppingBuy the same product or service for less moneyBuy more goods and services with the same amount of moneyBuy a better quality product for the same amount of money

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Comparison Shopping StepsStep One Decide exactly what is needed before shoppingStep TwoWhat is the quality of the product I am using?Step ThreeWhat is the total cost?Step FourHow will the product be used?Step FiveConsider the opportunity cost and make a decision

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Comparison Shopping Step OneStep OneDecide what is needed before shoppingHow will I use this product?How long does it need to last?What features do I really need?

Answering these questions will help a person make the best decision

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Comparison Shopping Step TwoStep TwoWhat is the quality of the products I am comparing?Depends on materials used, craftsmanship and durabilityLook at the product and its packaging carefullyAsk others who own the same productRefer to unbiased testing agencies for more informationConsumer ReportsUnderwriters LaboratoriesBetter Business Bureau

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Comparison Shopping Step ThreeStep ThreeWhat is the total cost?Need to consider additional costs other than what is shown on the price tagExample: Clothing that needs to be dry cleaned will cost more over a lifetime than clothing that can be washed at homeHidden costs impact decisions and need to be considered carefully

ItemPriceHidden CostFrequencyTotal cost after 6 monthsWool jacket$50Dry cleaning $15Every 3 months$80Nylon jacket$60Wash at home $2Every 3 months$66

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Comparison Shopping Step FourStep Four:How will the product be used?Consider how the product will be used, how often it will be used and what price is appropriate for the useExample: If a product is used once a year, spending more money for high quality and additional features may not be necessaryExample: If a product is used everyday, one may be willing to pay more for higher quality

ItemPriceHow will it be used?FrequencyTotal cost per wearCustom made formal gown$120Lightly worn1 night - prom$120In store formal dress$60Lightly worn3 times - prom, family wedding, formal dance$20

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Comparison Shopping Step FiveStep Five:Consider the opportunity cost and make a decisionOpportunity cost something an individual gives up to receive another such as quality, price or features of a productExample: If an individual wants an iPod that holds at least 500 songs, but it is too expensive, he may have to give up some memory to purchase an affordable iPod that holds fewer songs.

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Grocery Shopping TipsPlan meals and make a shopping listChoose the right store (a store your familiar with)Eat before going!Use coupons and frequent shopper programs (use what normally is purchased)Purchase store brandsSetting limits on impulse buying (leave the cards)Comparison shoppingBeware of marketing strategies (middle-shelf)Read labelsWatch the scanner

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

Making Good ChoicesComparison shopping:Helps individuals and families spend money wiselyHelps build a positive financial futureCan reduce costs without cutting back on necessary itemsAllows people to save money while meeting needs

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

The Right PriceJose wants to buy a new bike helmet 3 choicesBell TriggerGiro AtmosSchwinn InterceptWhich helmet should he choose?Follow the comparison shopping steps to make a wise decision

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

The Right Price Step OneHow will Jos use the helmet?Jos will use the helmet when riding his bike to decrease the chance of injuryHow long should it last?The helmet should be durable and last a few yearsWhat features does he need?Strong chin strap and bucklesProper ventilationHigh impact absorption

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

The Right Price Step TwoBell Trigger - $30Price is reasonableHas all of the desired featuresOkay chin strap and buckle, okay ventilation, excellent impact absorptionGiro Atmos - $190Price is too highHas all of the desired featuresExcellent chin strap and buckle, excellent ventilation, excellent impact absorptionJos does not race in professional races such as the Tour de FranceSchwinn Intercept - $17Price is reasonableHas all of the desired featuresExcellent chin strap and buckle system, okay ventilation, excellent impact absorption

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

The Right Price Step ThreeJos has no additional costs to consider

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

The Right Price Step FourJos will use the helmet everydayThe helmet will receive moderate wear and tear, because Jos does not race or ride on very rough terrain

Family Economics & Financial Education January 2007 Get Ready to Take Charge of Your Finances Comparison Shopping SplendorFunded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona2.2.1.G1

The Right Price Step FiveOpportunity costsJos may have to give up the excellent ratings on all Giro Atmos features to select a helmet he can afford.What is the best option for Jos?Schwinn InterceptProvides Jos with all features he needs and is in his price range.

The Giro Atmos is a great helmet, but too expensive.The Bell Trigger is a good helmet, but the chin strap and buckle system is not as good at the Schwinn Intercept