Chapter 5 Lesson 4 Becoming a Smart Spender

What is the main lesson learned from the fitness app scenario?

• Always trust recommendations from friends.

• Read the fine print before making a purchase.

• Avoid using fitness apps.

• Always pay for a full year upfront.

What does "power over purchase" mean?

• Buying items on impulse.

• Making a habit of slowing down and thinking through motives before buying.

• Always buying the cheapest option.

• Avoiding all purchases.

Why is it generally not a good idea to buy extended warranties?

• They are usually free.

• They are overpriced and often unnecessary.

• They cover everything for a lifetime.

• They are required by law.

What should you do if you find a defect in a product you purchased?

• Throw it away.

• Return it or contact the manufacturer for a solution.

• Ignore it and hope it gets better.

• Buy a new one immediately.

What is a common tactic used by businesses to make money from warranties?

• Offering them for free.

• Selling extended warranties separately at an additional cost.

• Including them in the product price.

• Giving them as a gift with purchase.

What is one way to protect your purchases?

• Throw away the manual.

• Keep the receipt safe.

• Never register the item online.

• Ignore any defects.

What is a manufacturer's warranty?

• A promise to replace or repair a product if it doesn't work as expected.

• A guarantee that the product will last forever.

• An optional purchase at checkout.

• A refund policy for any reason.

What should you do if returning a defective product doesn't work?

• Forget about it.

• Follow up with the manufacturer.

• Buy a new one immediately.

• Complain to friends.

What is a key characteristic of being a smart consumer?

• Buying everything on sale.

• Making informed and thoughtful purchasing decisions.

• Avoiding all purchases.

• Only buying luxury items.

What is a common misconception about extended warranties?

• They are always included in the product price.

• They are a good investment for all products.

• They are necessary for product protection.

• They are often overpriced and unnecessary.