In this module you will learn about being a smart shopper. You will learn about incentives that sellers offer to buyers and why these incentives work with consumers. You will also learn about the effects of advertising on consumer purchases. By comparison-shopping and using the decision making model before making a purchase, you will save money, avoid impulse buying, and feel greater satisfaction with your purchases. This is especially true for major purchases such as a car or a home. Should you rent a place to live or buy a home? Should you lease a car or buy one? These are huge financial decisions that should not be taken lightly. By using the information in this module, you will be a much smarter consumer!
Before you begin learning about smart spending, take a moment to complete this non-graded pre-assessment. In this interactivity, you will use your knowledge of economic incentives to answer a series of questions. Click the player button to get started.
Key Vocabulary
To view the definitions for these key vocabulary terms, visit the course glossary.
Accessories | Deceptive Advertising | Informative Advertising | Realtor |
Accrue | Defensive Advertising | Invoice Price | Rebate |
Adjustable Rate Mortgage (ARM) | Department Store | Landlord/Lessor | Resale Value |
Apartment | Discount | Lease | Residual Value |
Asset | Down Payment | Market Research | Return Policy |
Balloon Mortgage | Duplex | Month-to-Month Rental Agreement | Rental Inventory |
BOGO | Efficiency/Studio Apartment | Mortgage | Security Deposit |
Closing Costs | Equity | Negative Incentive | Speciality Store |
Collateral | Exaggeration | Negotiate | Tenant/Lessee |
Comparative Advertising | Fixed Rate Mortgage | Outlet/Discount Store | Thrift/Consignment Shop |
Comparison-shopping | Foreclosure | Persuasive Adversiting | Townhouse |
Condominium | Frequent Customer Card | PITI | Utilities |
Conspicuous Consumption | Impulse Buy | Positive Incentive | W-2 |
Coupon | Incentive | Principal | Warehouse store or club |
Dealer Add-Ons | Influence | Rain Check | Warranty |