Future Smart- Smart Shopping

Select the answer that best describes opportunity cost:

• The amount of money you put into savings every year.

• What you give up as a result of choosing one option versus another; a trade-off.

• The amount of money a business makes every year from sales.

• What you gain as a result of choosing one option versus another; a benefit

Before buying a new computer, you want to do some research to help you select the best model for your needs. Where should you look for the most objective and unbiased information?

• The most popular computer company's website

• Paid advertisements in a technology magazine

• A salesperson at an electronics store who earns commission on sales

• An independent consumer education website that reviews and rates technology products

Which of the following expenses should be included in a typical budget?

• Taxes

• Charitable Giving

• Savings

• All of the above

Which of the following would be considered a want for most people?

• A brand-name jacket

• Transportation to get to work

• A place to live

• Nutritious food

If you know the unit price of an item, you are better able to:

• Compare prices of two brands

• Estimate how much you will need

• Determine the total cost of the purchase

• Figure out the discount during a sale

Which of the following would be considered a want rather than a need for most people?

• Warm clothes in the winter

• A place to live

• A smartphone

• Nutritious Food

Which of the following is a variable expense for many adults?

• Their monthly cost of eating out at restaurants

• Their monthly rent payment

• The monthly payment on their car loan

• Their monthly payment for health insurance

Your friend’s parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?

• Rent payment

• Car insurance

• Cable service

• Groceries

You received $50 as a birthday gift and chose to spend it on new wallpaper for your room. The opportunity cost of this decision is:

• The price of the wallpaper you bought

• The other items you could have purchased with your $50

• The time you could have spent doing other things

• All of the above

Which of the following is NOT a successful budgeting strategy?

• Keep some extra money in your budget for emergencies

• Pay with a credit card if you have a hard time sticking to a budget

• Think about which items are your most important needs

• Revisit your budget regularly and make adjustments