Unit 5 Tips for Saving Money

Unit 5 Tips for Saving Money

Personal Reflection In Lesson 1 you learned the keys for money management. The keys are: Plan. Spend Less. Save More. Adjust. This lesson is about spending less. In this lesson, you will review tips on how to save money by being a smart consumer (someone who buys products). Think about your habits for spending. Put an X on the box in each line that shows where you are in managing your spending. Consumer Self-Assessment Area of Focus How to Save Money When Shopping For Food How to Save Money on Other Things (not food) How to Use Credit Cards Wisely Ready to Learn I do not know how to save money at the grocery store. I do not know how to spend less. I owe a lot of money on my credit cards. I pay only the minimum payment each month. Beginner Experienced Expert I know how to compare prices when I shop for groceries. I do only a few things to save money (like turn off the lights in the house and use less water). I pay more than the minimum payment on my cards each month. I know how to compare prices. I know where to look for the best prices. I know when is the best time to shop. I am good at saving money on my utility bills. I find other ways to save money, too. I use credit cards only when I know I can pay the full balance each month, or for emergencies. I know how to save money on groceries. I make a list and practice what I know to buy groceries. I always use only as much as I need. I always find the best prices for what I buy. I pay my credit card balances in full each month. I do not pay interest charges for my cards.

Tips for Spending Less At the Grocery Store 1. Shop at lower-priced food stores. Visit different stores. Compare prices. Do not shop at convenience stores. You will pay more money there. 2. Shop with a list. Do not buy anything you did not plan to buy. 3. Compare prices. Bigger does not always cost less per ounce. Find out how much the item costs per ounce. Many stores put this price on the product sticker on the shelves. 4. Shop the lower shelves. Stores usually put more expensive items on eye-level shelves. They put the less expensive items on the lower shelves. 5. Eat left-overs. Plan meals ahead of time. Plan to use left-overs from one day for a meal the next day. 6. Do not buy prepared foods (such as boxed potato mixes, instant eggs, etc.). The same foods can usually be made at home for less. They will usually taste better, too. 7. Buy day-old baked goods. They are sometimes less than half the price of fresh breads. They are usually in your home for more than one day anyway. 8. Do not shop when you are tired or hungry. You will spend more money. What other tips do you know for grocery shopping? Write them here. (adapted with permission from Consumer Credit Counseling Services of Los Angeles)

Tips for Spending Less at the Grocery Store Practice 1 Directions. Fill in the blanks with words from Tips for Spending Less at the Grocery Store. Grocery Shopping There are many ways to save money when grocery shopping. First, never shop for groceries when you are or. You will end up spending more money. Try to always shop with a. If you use a list, you will be less likely to buy things that you do not need. Always look for food items that are on the shelves. That s where you will usually find the products that cost less. Watch out for goods. They cost more than if you buy the food to make the meal yourself. Of course, if you eat, you may not have to go to the grocery store.

Saving Money at the Grocery Store Practice 2 - Comparing Prices 1. Directions. Think of five items that you often buy at the grocery store. Write them here. Visit three stores and write down the price they charge for that Item. Item Name of Store: Name of Store: Name of Store: a. b. c. d. e. Total Cost of 5 items: If you buy all five items, at which store will you save the most money? Practice 3 Directions. Visit a grocery store. Pick an item (such as cereal, coffee, etc.) Find the price of the item on the bottom shelves. Find the price of the same item on the middle shelves. Write the prices here. Item Middle Shelves Bottom Shelves a. b. c. d. e.

Practice 4 Most of the time, a large can or package of an item costs less than a smaller one. Sometimes it doesn t. Sometimes the smaller one costs less per ounce. Directions. Look at the prices on the items below. Divide the price by the number of ounces to find out which size costs less. Circle the least expensive one in each line. a. Pickles $2.59 $3.89 12 oz. jar 22 oz. jar Cost per ounce: Cost per ounce: b. Orange Juice $2.99 $3.99 32 oz. carton 64 oz. carton Cost per ounce: Cost per ounce: c. Rice d. Cereal $1.79 $3.99 32 oz. (2 lb.) bag 80 oz. (5 lb.) bag Cost per ounce: Cost per ounce: $3.29 $5.89 14 oz. box 18 oz. box Cost per ounce: Cost per ounce: e. Coffee $3.19 $8.29 11.5 oz. package 34.5 oz. (2 lb., 2.5 oz.) package Cost per ounce: Cost per ounce:

Word Work Food Packaging bag box jar pickles can carton bottle jug tub Directions. Foods and grocery items come in many different kinds of packaging. Read the item below. Write it in the box in which it can be purchased. (An item can be put in more than one box.) Example: pickles 1. tomato sauce 8. peanut butter 15. butter 2. macaroni 9. soda 16. juice 3. milk 10. gum 17. peas 4. rice 11. cereal 18. corn 5. ice cream 12. sour cream 19. eggs 6. bleach 13. ketchup 20. beans 7. laundry soap 14. soup 21. potato chips

More Tips for Saving Money (adapted from Consumer Credit Counseling Service of Los Angeles) 1. Use less. Most people use more than they need of things like shampoo, toothpaste, water, electricity, gas, etc. Talk with a partner. How can you use less gas? Less water? Less shampoo? (Example: Do not let the water run while you brush your teeth.) Write your answers here. 2. Take your lunch and snacks with you to work or school. If you pay $5 a day for lunch, you spend about $100 a month on lunch. You can save money by taking left-overs for lunch, or by preparing something from home. If you spend $4 for a sandwich every work day, how much do you spend weekly? monthly? annually? 3. Shop for gifts all throughout the year. If you are going to a wedding in June, but you see a good price on a gift in January, buy it. You do not have to wait. 4. Stick to your budget. If you overspend for one item, spend less on another item. 5. Shop for items when they are on sale. Look for items marked clearance, discounted, or on sale.

Do you know how much this coffee costs?! Yes! Do you know how hard I work?! Another Tip: Reward yourself. To spend money wisely does not mean that you cannot have something special. Budget for those treats (special things) that you really like. Word Opposites Read the words and their opposites below. more high top buy most less low bottom sell least You can make some opposites by putting in at the beginning of the word. words in means not. In these Directions. Read the words on the chart. Write their opposites next to them by putting in in front of the word. The first one is done for you. expensive adequate valid appropriate ability accurate inexpensive

The Biggest Tip for Spending Less: Use Credit Wisely It is helpful to have good credit. Credit cards help many people to start a credit history. Here are tips on how to use your credit cards smartly. Pay the balance on the credit card each month. If you pay the full balance, you usually do not have to pay any extra money for using the card. If you do not pay the full amount each month, you will pay a lot of money to use the card. Credit Card Art Mobile created in 2001 by Sharon Fliegelman. Located in the offices of Consumer Credit Counseling Services of Los Angeles Do not use credit cards as extra income. Credit cards are not extra money. Credit card debt is a loan at high interest. Many people do not understand that a credit card is a loan contract. It is a loan the credit card company makes to you. You pay back the loan. If you do not pay the full amount each month, then you pay interest on the loan. Credit card interest can cost a lot of money. True and False Directions. Read the following statements. If it is true, write T. If it is false, write F. 1. Credit cards can help to start a credit history. 2. You should not pay off the balance on your credit card each month. 3. You have to pay interest whether or not you pay the full balance. 4. Credit cards are like extra income. 5. Using a credit card is like signing a loan contract. People have problems with credit because they depend on it. They use it as extra income. The biggest problem is that they don t have a budget. They do not know how much money they have. They do not know how much they spend. They do not know the basics of how to manage their money. - Sophia Chavez Consumer Credit Counseling Services of Los Angeles Note: If you have a lot of credit card debt, you may want to see a credit counselor. There are good counselors and bad counselors. A good credit counselor can help you learn how to manage your money. A good credit counselor can help you to get out of debt. A bad credit counselor can make you owe more money. To find a good credit counseling agency, see if it is listed with the National Foundation for Credit Counseling, www.nfcc.org. Or, call the Better Business Bureau in your area to learn about any complaints against them.

Clap the Stress Excuse me. I ll take it. I have one. No, thank you. o O o O o o O twenty percent end of the month almost paid off anything new zero percent Conversations Conversation 1 Customer: Sales Person: Customer: Sales Person: Customer: Excuse me. Yes? Is this shirt on sale? Yes. It s 20% off. Great. I ll take it. Conversation 2 Customer: Sales Person: Customer: Sales Person: Customer: I like these shoes, but they cost too much. When is your next shoe sale? At the end of the month. I ll be back. I hope they ll still be here. I really like them. Why don t you buy them now? Do you have a credit card? Yes, and it s almost paid off. I m not charging anything new. Conversation 3 Operator: Better Business Bureau. Can I help you? Caller: Yes. I m calling about XYZ Counseling Services in Sacramento. Do you have any information on them? Operator: We have had one complaint, and that complaint was fixed. Caller: Only one problem? Operator: Yes, only one problem. Caller: Okay. Thank you.

An English Idiom to buy something -- to believe something Person 1: Person 2: Person 1: Didn t you hear? She married him because he s rich. I don t buy that. She loves him. I don t buy that! I think she only wants his money. Person 1: Person 2: Person 1: Person 2: Person 1: How did you get that black eye? I ran into a door. I don t believe you. Okay, the truth is that I got into a fight. Now that I ll buy. You re always looking for trouble. Write a sentence using the phrase to buy something. Directions. Read the statement. Answer the question Do you buy that? by putting a check mark ( ) under the answer Yes, I do or No, I don t. Do you buy it? Yes, I do. No, I don t. 1. Credit cards are just like having extra money. Do you buy that? 2. Most people use too much water. Do you buy that? 3. It is hard to save money at the grocery store. Do you buy that? 4. It s okay to buy yourself a treat. Do you buy that? 5. Large packages or cans are always a better buy than small ones. Do you buy that?

Personal Action Talk with a partner about your Spending Habits. Finish the sentences to write your personal plan for saving more money by spending less. 1. Write three of your spending strengths. (Example: using less water, shopping at sales, etc.) My Personal Action Plan 1. My spending strengths are 2. Write three things you can do to improve your spending. Example: Buy gifts when they are on sale throughout year 2. Three things I can do to save more money are 1) 2) 3) 3. Sign your name. 4. Write today s date. 5. Tell a partner what three things you will do to improve your spending habits. Signature Date

The Big Picture Poor Families Pay More Many low-income families pay high prices for their food and other groceries. They live in neighborhoods which do not have large chain grocery stores. Small local businesses do make groceries available to residents, but they cannot offer prices as low as larger stores. They do not sell enough groceries to be able to buy enough to lower their prices. The High Cost of Being Poor, a report from the Annie E. Casey Foundation, says, Families in low-income rural communities who lack access to supermarket chains pay 17.5% more and inner-city families pay up to 22% more than the U.S. Department of Agriculture recommended budget for basic food items. They also pay higher costs for gasoline, clothing and furniture. They pay higher rates for car loans and home mortgages. The business owners say it costs them more money to do business in low-income neighborhoods. They have to charge higher prices. What do you think? Talk about it with a partner. Do you pay high costs in your neighborhood? Why? Why not? Should low-income people pay more for their services? Some people say: The rich get richer; the poor get poorer. Do you believe this? What can communities do to improve their economy? Work with a partner to make a plan to improve your community. Who can you talk to? Where can you go for help? Your teacher can help you.

Word List Write the new words from the lesson. English My Language To Think About List (Write what questions you have; what things you want to know more about.) To Do List (Write what you will do to learn more about your questions from this lesson.)