Transcript Managing Your Money

Managing Your Money
20.1
Consumer Rights
• Consumer: someone who buys goods
or services
• You can enter any profession or
business that you choose
• You can purchase or reject products
and brands that you choose
Two Types of Income
• Disposable income: money that
remains after all taxes have been
paid
– Usually buy necessities like food,
clothing, and housing
Two Types of Income
• Discretionary income: the money that
remains after paying for necessities
– Usually spent on luxury items
Protecting Consumers
• “Let the buyer beware”
• Consumerism: a movement to educate
buyers about the purchases they
make and to demand better and safer
products
Laws to Protect
Consumers
• Fair Packaging and Labeling Act:
every package has to have a label
identifying its contents and weight
Laws to Protect
Consumers
• Food, Drug, and Cosmetic Act:
requires packages to list their
ingredients according to the amount
of each.
Laws to Protect
Consumers
• Pure Food and Drug Act:
manufacturers of food, cosmetics,
and drugs to prove that their product
is safe
Who else protects us?
• The Better Business Bureau:
– 120 BBBs located in major cities in the U.S.
– Business groups run the BBBs
– They provide information about local
businesses
– They warn consumers about dishonest
practices
– They investigate consumer complaints
Consumer Bill of Rights
•
1960s JFK and then Nixon
emphasized 5 consumer rights:
Consumers have:
1. The right to a safe product
•
One that will not harm their health or lives
•
No misleading advertisements, labels, or other actions
•
A variety of products and services available at
competitive prices
2. The right to be informed
3. The right to choose
4. The right to be heard
•
Consumer interests will be listened to when laws are
made
5. The right to redress
•
Ability to obtain payment from manufacturer if
product causes financial or physical damage
Consumer
Responsibilities
Smart buying Strategies
• Research the product and find out as
much information as you can before you
buy
• Use advertisements carefully. Don’t let
them appeal to your emotions and buy
things you don’t need.
• Decide where to buy from
– Comparison Shopping: compare the same
product at many stores to get the best price.
Other Responsibilities
• Report a faulty product
– Report it immediately and don’t try to fix it
yourself!
– Contact the manufacturer or seller and calmly
state your problem
– Keep a record of your efforts. ALWAYS get
the name of the person you talked to and when
you talked to them.
Other Responsibilities
• Make a fair Complaint
– Be ethical , honest, and respect the
rights of the seller and producer
• don’t’ return used items or items that you
broke
• Report unsettled complaints
– Contact the proper government agency
and help protect other consumers
Making decisions:
• All decisions will cost you time and
income.
• Time: research and shopping around
• Opportunity Cost: if you buy one product
what will you NOT be able to purchase instead. Is
this product worth it??