Year 9 Business - Term 3 - Week 6

Year 9 Business - Term 3 - Week 6

Mobile Phone Ownership

Jeremy wants to buy a mobile phone

Jeremy’s Story

Jeremy has just turned 18. He really wants to get a mobile phone and he would like to get the best smartphone on the market. He does not think he will make a lot of calls, but he would like to download lots of apps and play games.

 

He started a casual job about three months ago and his income changes each week; some weeks he ears as little as $250 and some weeks he works extra shifts and earns as much as $400.

 

He lives with his parents and he pays them $70 a week for food and bills and usually spends about $20 a week on train tickets to get to and from work. He spends around $50 a week to go out with his friends.

Fill out the table using the information from Jeremy's story.

Questions:

• 1. What expenses does Jeremy have to pay each week?

• 2. Jeremy's income varies each week - what does this mean for his budget?

• 3. How much is left over for Jeremy to spend on a mobile phone each week?

• 4. What is a budget?

• 5. Why is a budget important if you want to buy a mobile phone?

• 6. How can you work out how much you can spend on a mobile phone?

Activity 1.2: Mobile Phone Contract Terms and definitions

If a young person is over 18 and they sign up for a mobile phone deal, it is a legally binding contract.

Young people can end up with debts running into the hundreds or thousands of dollars if they sign up for a mobile phone that they do not understand.

It is important that you understand the common words included in a mobile phone contract before you sign up for a plan. If you do not understand these words, it is important to know who you can ask for help, such as a friend, relative or co-worker. You can also ask a mobile phone sales-person to explain any terminology that you do not understand, as well as your responsibility as the mobile phone owner.

Activity 1.2 Mobile Phone Contract terms and Definitions

Included Value

Cap

Excluded Value

Locked Phone

Data

Contract

Roaming Charges

Plan

Allowance or Limit

Flag Fall

1. What terminology or words were new to you?

2. Which words or terminology will be useful to compare and understand in different mobile phone deals

3. Who could you ask for help to understand a mobile phone contract before signing it?

Activity 1.3: Identify the rookie errors

Activity 1.4: Jeremy wants to buy a mobile phone

Remember Jeremy’s story?

 

Jeremy has just turned 18. He really wants to get a mobile phone and he would like to get the best smartphone on the market. He does not think he will make a lot of calls, but he would like to download lots of apps and play games.

 

He started a casual job about three months ago and his income changes each week; some weeks he ears as little as $250 and some weeks he works extra shifts and earns as much as $400.

 

He lives with his parents and he pays them $70 a week for food and bills and usually spends about $20 a week on train tickets to get to and from work. He spends around $50 a week to go out with his friends.

 

1.  What are Jeremy’s priorities for buying a mobile phone?

2.  Given these needs and wants, what else should Jeremy think about when selecting a plan?

Activity 1.5: A deal for Jeremy

1.  Thinking about Jeremy’s priorities, which deal should he choose? What makes this deal suitable for Jeremy?

2.  What should Jeremy be careful of with this deal?