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Real-Life Issues in Buying and Selling
Real-Life Issues in Buying and Selling
Chapter 3, Lesson 3
Lesson Overview
• Shopping issues in daily life
• Renting an apartment
• Buying or leasing a car
Chapter 3, Lesson 3
Quick Write
What are three important factors a smart consumer considers before
making a purchase? Write down your ideas and then
share them with a friend.
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Chapter 3, Lesson 3
Shopping Issues in Daily Life
• Studies show that the average person uses at least 15 products every morning before he or she even goes out the door!
• These products include toothpaste, soap, shampoo, cereal, bread, juice, etc.
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Chapter 3, Lesson 3
Basic Grocery-Shopping Tips
• Plan your meals and make a shopping list
• Have a grocery store budget• Don’t go to the store hungry• Don’t buy on impulse• Buy raw foods instead of processed
foods• Clip coupons
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Chapter 3, Lesson 3
Comparison Shopping
• Smart shoppers don’t buy the first thing they see
• Instead, they do comparison shopping—comparing the prices and quality of different items to see which one is a better deal
• Look for the unit price and the product expiration date
Chapter 3, Lesson 3
Tips for Buying Fruits & Vegetables
• Buy produce when it’s in season• Buy certain items in bulk and store
them in the refrigerator• Don’t be put off by appearance; for
example, brown bananas sell at half-price, but they are still good
• Buy oranges by their firm skin, not color
Chapter 3, Lesson 3
More Tips for Buying Fruits & Vegetables
• Lemons are best when they’re slightly green on the ends
• Wash and drain salad greens, then refrigerate in plastic container
• Store strawberries in plastic basket they are sold in: the air circulates and keeps them firm
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Chapter 3, Lesson 3
Tips for Buying Meat
• A prime cut of beef is tender, juicy, and flavorful—it is the most expensive cut of beef
• The most popular cuts of pork are ribs, roasts, and chops
• The most popular cuts of lamb are leg, chops, rack, and loin
• The main types of poultry are chicken and turkey
• Fish that has passed NOAA inspection bears a special mark that may read “US Grade A,” “processed under federal inspection (PUFI),” or “lot inspection”
Chapter 3, Lesson 3
More Food Buying Tips
• Canned and packaged goods have a long shelf life—stock up when these items are on sale
• Dairy products include milk, a low-cost source of calcium
• Always check the expiration date before buying eggs
• Save money by buying cheese in blocks and slicing or grating it yourself
• Frozen foods are popular, and many grocers regularly put them on sale
Chapter 3, Lesson 3
Tips for Buying Clothing
• Don’t overspend: Think about gaps in your wardrobe
• Buy pieces you can mix and match
• Shop at discount stores• Buy clothing at the end
of the season
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Chapter 3, Lesson 3
Spending on Entertainment
• A lot of teenagers spend a good deal of their money on entertainment, such as movies, CDs, and video games
• The key issue is budget: Decide how much you can afford to spend each month on entertainment, and then stick to it
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Chapter 3, Lesson 3
Renting an Apartment
• Less expensive than buying over the short term
• Good if you move around a lot
• Can offer amenities such as tennis courts, pools, clubhouses, and laundry facilities
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Chapter 3, Lesson 3
What to Consider When Renting an Apartment
• Explore the neighborhood
• Check out safety, access to public transportation, shopping, libraries, etc.
• What size apartment do you need?
• Do you have pets?
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Chapter 3, Lesson 3
Rental Fees
• Rental fees can range from a hundred dollars a month to thousands, depending on where you live and how fancy it is
• Experts recommend you pay no more than 30% of your gross income, or income before taxes and deductions, on rent, gas, heat, and electricity
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Chapter 3, Lesson 3
How to Find an Apartment
• Look at newspaper ads and check online
• Call a real estate agent, who is a professional who helps people buy, sell, or rent homes and apartments
• Find out information from tenants: – Does the landlord fix things promptly?– Does the landlord show up unannounced?
Chapter 3, Lesson 3
Apartment Leases
• When you rent an apartment, you will have to sign a lease, or an agreement to pay rent and fulfill other obligations for a certain length of time
• A lease is usually for one year, but can be for more and some do month to month
• A lease is a legal document. Read it carefully!
Chapter 3, Lesson 3
Items Covered in a Lease
• The amount of rent• The security deposit and utilities• The number of people who may
live there• Where you can park your car• Responsibilities for maintenance of
the apartment• A policy on pets
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Chapter 3, Lesson 3
Tips for Apartment Shopping
• Don’t rush into anything! Make sure you’re happy
• Know whether utilities are included in your rental rate: electricity, heat, gas, water
• Make sure your monthly rent and utility expense total is no more than 30% of your gross income
Chapter 3, Lesson 3
More Apartment-Shopping Tips
• Make sure you know what appliances come with the apartment
• Most apartments are unfurnished• Calculate the costs of moving• Get a second opinion from a friend• If you’re concerned with safety,
rent on the second floor or higher
Chapter 3, Lesson 3
Choosing a Car
• What kind do you need? Be realistic
• How much can you afford? Spend no more than 20% of your net income
• Should you get a new or used car?
• If a used car, what condition is it in?
• What kind of insurance will you need?
• What kind of resale value will the car have?
• How much will repairs cost?
• What is the financing rate?
Chapter 3, Lesson 3
Should You Lease or Buy?
• You may not need a down payment if you lease
• When you lease, you return the car to the dealer, so there is no need to worry about finding a buyer
• But you don’t have equity, or ownership value in the car, and you will be responsible for maintenance costs
Chapter 3, Lesson 3
Review
• When dealing with shopping issues in daily life, take the time to make lists, cut coupons, and comparison shop
• When deciding to rent an apartment, consider location, rental fees, and the lease agreements
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Chapter 3, Lesson 3
Review
• There are several advantages and disadvantages to consider when deciding whether to buy or lease a car
• A good rule of thumb is to spend no more than 20% of your net income on your car
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Chapter 3, Lesson 3
Summary
• Shopping issues in daily life
• Renting an apartment
• Buying or leasing a car
Chapter 3, Lesson 3
Next
• Today we’ve learned about real-life issues in buying and selling
• Next we’ll learn about managing your resources and avoiding the credit trap
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