5-1 L ECTURE LAUNCHER PAGES PAGES

Transcription

1 5-1 Swanson and Sons introduced the frozen TV dinner in It was packaged in a box that looked like a television. In 1954, to what would you have compared the first Swanson TV dinners? What would you compare a Swanson TV dinner to today? PAGES I. Comparison Shopping A. Involves making comparisons to help decide what to shop for and where to shop B. Only comparison shop as necessary by weighing time and transportation costs. C. Advertisements and coupons can help save time and money. What are some things a person can do to save time before shopping? (Make a list, compare prices through advertisements and newspapers, and clip coupons.) PAGES II. The Trade-Offs in Food Stores A. Club warehouse stores generally offer the lowest prices, but their items are only sold in large quantities. B. Convenience stores carry few items, have highest prices, but are open more hours. C. Brand names are well-known nationally or regionally. D. Some supermarkets or wholesale stores have their own brand names known as private labels or store-brands. E. Generic products have no brand name. Who benefits the most from shopping at warehouse stores? (People with large families or who cook for large numbers of people. Also, people who prefer to make fewer shopping trips on a monthly basis may benefit most from warehouse shopping.) Daily Lecture Notes 28

2 5-2 Waist overalls was the term used in the mid-1800s for the newly created denim pants that became so popular as work pants. Today, jeans (a word that wasn t used for another hundred years) are more popular than ever. Why has this style of dress ured for so many years? PAGES I. Comparing Clothing Value A. Buying current styles, which t to change each year, can be expensive because new clothes must be bought annually. B. Buying classic styles, which are more basic and do not change as much, will help your clothes last longer, saving money. C. Durability is how well something lasts over time. D. Service flow is the amount of time you get to use the product and the value you place on that use E. Factor in the cost of care involved in clothing that must be hand washed or dry cleaned versus machine washable. How can the cleaning method effect the service flow of a piece of clothing? (The cleaning method can reduce the amount of time the clothing is available to be worn. For example, if it has to be dry cleaned then it is unusable when at the cleaners or waiting to go to the cleaners. If it has to be hand washed and you don t have time to wash it, it won t be usable). PAGES II. More For Less A. Clothing costs have decreased significantly over time. B. Clothing sales generally happen at the of the season. C. Bargain fanatics buy items just because they are on sale. D. If you buy an unnecessary item because it s on sale, you may not be saving money at all. Daily Lecture Notes 29 turn

3 5-2 What types of styles are more likely to go on sale and why? (Current styles are more likely to go on sale because the retailer doesn t want to keep those items until next year when they won t be in style anymore.) Daily Lecture Notes 30

4 5-3 In 1997, Americans spent around $119 billion on home improvements. In the year 2005, it is predicted they will sp $180 billion on home improvements. What kind of improvements might add to the value of your home? PAGES I. How Much Should You Sp? A. Avoid sping more than you can afford. B. You will need the cash down payment and closing costs. C. Be aware of points or fees paid to the ler. Why should people plan ahead and research when sping large sums of money? (People should be informed decision makers at all times, but especially when investing or sping large amounts of money to avoid hidden costs and high debt.) PAGES II. Financing the Purchase of a House A. Many different types of mortgages and financing packages are available. B. Mortgages involve down payments and interest. C. Mortgages are paid in monthly installments. D. Property tax, homeowners insurance, and mortgage insurance are often included. When do you think it would be better to get a fixed rate or adjustable rate mortgage? (A fixed rate might be better when interest rates are very low. An adjustable rate might be better if interest rates are high and you expect them to go down in the next few years.) Daily Lecture Notes 31 turn

5 5-3 PAGES III. Renter Rights and Responsibilities A. Renters usually sign a lease. B. Be aware of the clauses in your lease; read it carefully. C. Tenants have a right to use the property for the purpose stated in the lease, and a right to privacy. D. Tenants must pay rent on time, take care of property, and notify landlord if major repairs needed. E. Some tenants must place a refundable security deposit in case of damaged property or unpaid rent. F. Tenants must give written notice if leaving prior to lease s, which can result in fees and fines for breaking the lease. G. Landlords must provide minimum services and obey building and safety laws. H. Rent-control laws limit the amount a landlord can charge in rent. Would you want to rent your home? Why or why not? (Possible response: Yes, it would be cheaper and I wouldn t have to make major repairs. No, I wouldn t want someone else to tell me what I could do in my home or have to get permission to do things like paint the walls.) Daily Lecture Notes 32

6 5-4 In 1925, the best-selling car in America was the Ford Model-T. It sold for $660, which represented seven months wages for the average American. In 1998, the best-selling car in America was the Toyota Camry. The suggested retail price for the Toyota Camry LE was $20,218, or the equivalent of six months wages for the average American worker. Besides the purchase price, what other costs are associated with operating a motor vehicle? PAGES I. Buying and Operating a Vehicle A. Registration fees are state fees paid each year. B. Normal maintenance and repairs C. Cost of buying an exted warranty that covers problems beyond the time frame in the warranty offered by manufacturer or dealer D. Depreciation or a decrease in value of car as it ages E. Most states require liability insurance that covers both bodily injury and property damage. F. Cost of insurance varies based on age, sex, and driving history. What are some reasons why car owners might continue to make expensive repairs on an old car instead of buying a new one? (The owner cannot afford a new car. The owner sees each repair as cheaper than buying a new car. The owner is emotionally attached to the car and doesn t care about the cost. The owner believes this repair is the last repair. ) Daily Lecture Notes 33