Section 2.

1
What is Most Important!!
 Priorities—Your judgment about the relative
importance of the alternatives.
 Need vs. Want
 Need: these are what you must have to live.
 Wants: These are the things you desire but are not
needed to live.
Values
Values are strongly held beliefs and principles about
what is worthwhile.
*Examples: Honesty, respect, kindness, courtesy,
and fairness.
Standards
 Standards are established levels of quality or quantity
to measure against.
Types of goals
 Short term—these are goals that can be completed
with in six months.
 Long term goals—these are goals that will take longer
than six months to complete.
Achieving Goals
 Set goals with care
 Prepare to deal with difficulties
 Enlist the support of others
 Acknowledge your success and failures
Section 2.2
Types of Resources
 Resources include anything that is useful or helpful in
the process of achieving goals or solving problems.
 Human resources—these are found with in people
 Time
 Financial resources
 Material and technological resources
 Community resources—provided by government and
private organizations
 Natural resources.
Scarcity and Opportunity Cost
 Scarcity—the fact that because of limited resources, an
economic system can’t possibly produce all the goods
and services that people want.

 Opportunity cost: What you give up when you decide t

use resources one way rather than another.
Using Resources Effectively
 Expand resources
 Conserve Resources
 Substitute Resources
 Exchange Resources
Management Skills
 The management process
 Planning
 Organizing
 Implementing
 Evaluating
Managing Time and Energy
 Stay Focused
 Identify time wasters
 Get Organized
 Plan Ahead
 Make to-do lists
 Take action.
 Make use of free time
 Value other people’s time.
Goal Assignment
 Choose one short term or long term financial related
goal that you have and use the information that you
learned about the goal setting process to describe how
you will reach this goal.
Section 2.2
How do you decided what to
buy???
 Impulse purchase—The immediate decision to buy an
item.
 Marketers aim for this.
Scarcity and Opportunity Cost
 Scarcity—the fact that because of limited resources, an
economic system can not possibly produce all the
goods and services that people want.

 Opportunity cost: What you give up when you decide t

use resources ne way rather than another.
Decision Making Process
 Identify the decision
 Identify resources and collect information
 Identify the options
 Weigh the options
 Choose the best option
 Take action
 Evaluate the decision
 Factors Affecting Consumer
Decisions
 Personal Factors
 Family Factors
 Culture
 Socialital and Demographic factors
 Social Factors
 Fads
 Status Symbols
 Conspicuous Consumption
 Factors Affecting Consumer
Decisions
 Economic Factors
 Technology
 Media
 The Marketplace
 Legal and moral factors
Evaluating Information Sources
 Critically thinking skills are need to make an informed
decision about major purchases.
Evaluating information
 What is the source of the information.
 What authority or expertise does the source have.
 Is the source biased
 Is the information fact or opinion
 How can I confirm the information.
Sources of consumer information
 Consumer protecting agencies
 Professional Advisors
 Media Sources
 Package information
 Advertising
 Salespeople
 Other consumers.
 Decision Making Process
Assignment
 Using the decision making process, think of the last
big purchase that you made. Describe how you went
through the process of making this consumerchoice.
What effected the choice you made and did you realize
that you were actually using this process at the time.