Unit 4: Money Management

Lesson 7: Comparative Shopping

OBJECTIVE

1. Identify techniques that will help a person spend his or her money wisely.

MATERIALS
department store catalogs – try to have at least three

SUPPLEMENTAL RESOURCES
Janus Life Skills: Budgeting and Buying – A $7.95 workbook by Globe Fearon (1800 848-9500).

INSTRUCTIONAL FORMAT
This lesson will instruct the students on a process to find the best price (or at least a better price) on a product they want or need to buy. With the exception of utilities, there are usually alternatives for everything that is purchased. A person can compare the cost of different apartments in the city, pants at different stores, and toilet paper in the same store. Remind students that getting the cheapest product is not always the best. Paying $15 for a pair of pants that wear out in six months may not be a good deal if the $25 pair lasts two years. Getting the best deal for products is due in part to experience. Shopping at different stores gives a person an idea about which stores offer products at better prices. In general, a person can find clothes for less money at K-Mart than at a local department store. However, when a department store has a sale, a person may be able to find some products at a lower cost. It is important to stress that trying to find the best price on every product a person buys is impossible. However, finding a better price is often worth the time and effort. Provide students with some tips for buying everyday items like groceries and a process to use when buying higher priced items like clothes.

1. Discuss some tips on comparative shopping for groceries and other everyday items.
   
   

   • Take into account the locality of the business. For example, buying gas near your home for $1.10/gallon is probably better than driving 10 miles to get gas for $1.06/gallon.
     
     

   • When shopping for groceries, pay attention to the price of basic items like milk, eggs, and hamburger at the different stores. It might be good to write this information down. Try to shop at the store that charges the least for these items. Although you may pay more for other items, you are probably going to save money in the long run.
     
     

   • Try to buy non-grocery items (soap, deodorant, plastic bags, etc.) at a store like K-Mart or Wal-Mart. In general, these types of items will be more expensive at a grocery store.
     
     

   • When shopping for these types of items, look at the different brands for the best deal. Sometimes, certain brands that are usually the most expensive might be on sale. Try to consider the amount of the item. Usually, the more of the item that is packaged, the better the price per unit. If this is difficult for some of the students to understand, use the following example: If 24 cans of pop cost $4.89 (about $.20 per can) and 12 cans of the same pop costs $3 ($.25 per can), the better deal is to buy the case of 24 cans. Buying the bigger package is generally the best option if you use the product frequently, and if it keeps for a long period of time. It is not a good deal to get a large package of sour cream if you are not going to consume it all before it goes bad.
     
     

   • Use coupons and sales wisely. Only buy something if you need it. If you need to purchase something and you have a coupon or it is on sale, it is a good deal. It is not a good deal to save $.35 on a product that you never use. Additionally, don't buy an expensive item just because you have a coupon or it is on sale. If the reduced price is still higher than a cheaper alternative, you are not getting a good deal.
     
     

   • If you have the extra money and the space, buy many items that you use if they are on sale. For example, if light bulbs are on sale, buy as many as you can afford. You always need light bulbs, so you have saved money in the long run by buying them at a sale price.
     
     

2. Review a process to purchase items people buy less frequently.
   
   

   1. Identify the item that you want to purchase.
      
      

   2. Write the specific name of the item down, the cost, and the store. Remind students that there are several types of products with the same brand name. For example, instead of just writing down Sony® radio, the person may want to write down the product number and features. This is especially important because different stores do not usually carry the exact same product.
      
      

   3. Then do one of the following to find out what store has the best price. A)Go to the different stores and check on the price; B)Look in a catalog; or, C)Call each store to ask about the price. Remind the students that they should continue to write down information, so they can make a comparison.
      
      

   4. If you think you have found a good product, can afford the product, and want or need the product, go ahead and buy it.
      
      

3. Have the students practice comparison shopping. Have them pick out an item in a catalog and then try to find the best deal by looking in the other catalogs.
   
   

4. As a follow-up activity, instruct the students to get together in about two weeks to discuss any purchases they made. The trainer does not need to be present for this discussion. Instruct the students to discuss comparative shopping strategies they used over the last couple of weeks.

SIGNS OF GENERALIZATION
Students spend their money wisely. They use tips to save money on everyday purchases and use a process to identify the best price of larger ticket items.

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