Lecture Notes in HE 3 – Family and Consumer Life Skills

Economic Roles of Consumers

1. Consumer

You’re a consumer when you use goods and services, even if you’re not the one who
pays for them. Even babies are consumers, using up diapers and milk as soon as they’re born.

2. Worker
You’re a worker if you earn money at any kind of job, or even if you do volunteer work.
Workers produce goods and perform services.
3. Citizen
As a citizen, you use public services such as schools and roadways. Citizens pay taxes in
order to pay for public services, and they have the right to vote for elected leaders.

Consumers Have Power

When you choose to buy one product over another, your decision directly affects the
marketplace.

The Consumer and the Technology

The technology becomes available in accessing information as well as purchasing of goods and
services. It allows to make more informed choices about where to spend your money. On the other
hand, instant access to so much information can present many challenges such as sorting all the
information available, choosing the options, and making decisions based on all information available.
Moreover, another challenge being faced by the consumers is making it easier to buy on impulse
through phone call or by click of a mouse.

Qualities of an Effective Consumers

1. Set goals. They decide what they want and how they can best carry out a plan. They place
priorities on how they spend their time, energy, and money. They plan for a career and for the
education or training they will need.
2. Think critically. They make decisions based on careful consideration of alternatives and their
possible outcomes. They avoid acting on impulse. They maintain a realistic perspective when
encountering persuasive advertising or aggressive salespeople.
3. Do their research. They read, observe, and ask questions about the many options available to
them. They search for available businesses. They compare prices, quality, features, and
customer service policies.
4. Manage everyday finances. They handle their income, expenses, taxes, banking, and credit in a
most responsible way.
 5. Plan for financial security. They set up plans for savings, investing, and insurance, calling upon
for qualified professionals for help as needed.

Consumer Rights and Responsibilities

(https://www.opc.gouv.qc.ca/en/teacher-zone/list-activities/activities/consumer-rights-responsibilities/)

A brief history of citizen protection as a concept

1962 (United States) In 1962, during a speech before the U.S. Congress, John F. Kennedy, the first
president to raise the issue of consumer protection, named four basic consumer rights:

 The right to safety

 The right to be informed
 The right to be heard
 The right to choose
Consumers International, a worldwide organization, went on to add another four rights to this list:

 The right to satisfaction of basic needs

 The right to redress
 The right to consumer education
 The right to a healthy environment
1971 (Québec) Created in 1971, revised in 1978, the Consumer Protection Act (CPA) was born of Québec
society's desire to establish rules for protecting consumer interests. This legislation would protect
consumers when they enter into a contract to purchase or rent goods or services with a merchant in
various areas of sales, rental, credit, or personal loans. In 1971, the province created the Office de la
protection du consommateur.

1983 The first World Consumer Rights Day was celebrated on March 15, 1983. Every year it represents
an occasion to promote the basic rights of consumers and to draw attention to abuses and social
injustices that weaken consumer rights.

1985 On April 9, 1985, the United Nations unanimously adopted the United Nations Guidelines for
Consumer Protection. The Guidelines reiterate the eight principles of consumer rights and provide a
framework for strengthening national consumer protection policies. When the United Nations adopted
these Guidelines, consumer rights were finally recognized as legitimate internationally, as much in
developed countries as in developing ones.

Consumer Rights

The right to safety
The right to be informed
Be protected against products, manufacturing processes, and services
that represent a threat to consumer health or life.
Be able to obtain the information needed to make an informed choice
and be protected against dishonest or misleading advertising and
labelling.
 The right to be heard
The right to choose
The right to satisfaction
of essential needs
The right to redress
The right to consumer
education
The right to a healthy
environment
Be represented in decision-making spheres to ensure that consumer
interests are considered.
Be able to choose from a range of products and services that meet
consumer needs and are available at competitive prices, with the
assurance of satisfactory quality.
Have access to essential goods and services: appropriate food, clothing,
housing, health care, education, public utilities, water, and hygiene.
Receive fair settlement for substantiated complaints involving a
compensation for misrepresentation, defective goods, or unsatisfactory
services.
Have access to the knowledge and skills necessary to be informed and to
confidently choose goods and services, while being aware of
fundamental consumer rights and responsibilities.
Be able to live and work in an environment that does not threaten the
well-being of current and future generations.

Consumer Responsibilities

Critical awareness Be informed in order to better understand the products and services the
consumer is using and to question their quality.
Action Defend himself or herself when the consumer's caused is honest and just.
The consumer must assert himself or herself and take action to ensure that
he or she obtains a fair deal.
Social responsibility Be aware of how his or her behaviour can affect others, especially the
disadvantaged, at the local, national, or international level.
Environmental Be sensitive to the potential effects of his or her consumption on the
responsibility environment by limiting, in particular, waste of natural resources and
pollution.
Solidarity Be certain that joining forces with other consumers is the way to generate
enough strength and influence to promote the interests of all.

Using Resources Effectively

1. Expand resources. You can take steps to increase the resources available to you.
2. Conserve resources. Using less, or conserving, makes limited resources last longer. Example,
combining several errands in one trip serves time and energy.
3. Substitute resources. When some of your resources are in short supply, look for ways to use
others to accomplish the same goal. Example, when you lack time and personal energy, you
might substitute money or technological resources, such as a computer, to accomplish a goal.
4. Exchange resources. Sharing resources with someone else is another option. Bartering, which
means exchanging goods and services with another person, makes it possible to satisfy needs
and wants without spending money.

Management Skills

Management is the process using resources effectively to reach goals.

The Management Process

1. Planning. Begin by taking a look at the situation. Identify the resources that are available and
brainstorm ways to use them effectively. Start a list of the tasks that must be accomplished.
2. Organizing. Put the steps you must take to reach your goal in sequential order. Make a schedule,
setting a target date or time for the completing of each step. Gather your resources and get
them ready to use. You may communicate and coordinate with people involved in your plan.
3. Implementing. To implement your plan means to carry it out. Follow the schedule you set for
achieving the goal. Track your progress – for example, check off steps as they are completed. If
necessary, adjust your plan as circumstances change or as you encounter setback.
4. Evaluating. After implementing your plan, evaluate how well it worked.

Money Management

Developing money management skills helps families live within their income, get the most value
for what they spend, achieve financial goals, gain a sense of financial security, and build for the future.

Elements of Money Management

 Estimating income and making a spending plan.

 Paying taxes and keeping financial records.
 Using banking services and managing the use of credit
 Saving and investing to meet long-term and short-term goals.
 Buying insurance protection.
 Shopping for the best buys on goods and services.

Managing Time and Energy

 Stay focused. Identify your priorities and goals. Make time for activities that support
them.
 Identify some wasters. Identify time wasters, then either eliminate them or set limits.
 Get organized. Take time to organize your closet, locker, and desk. The payoff is more
time and less frustration.
 Plan ahead. Use a planner or assignment book. Write down assignments and due dates,
your work schedule, appointments, and other commitments.
 Make to-do list. Each day, make a list of what you need or want to accomplish. Consult
the list throughout the day and check off items as you complete them.
 Take action. Identify one small step you can take to get started and then, do it.
 Make use of free time. If you’re going to spend time standing in line or riding the bus,
take a long a reading assignment or an interesting article.
 Value other people’s time. If you agree to meet at a certain time, be there so the other
person doesn’t have to wait.
Making Consumer Decisions

Impulse purchase. A purchase made on a whim, without planning.

Decision-Making Steps

1. Identify the decision

2. Identify resources and collect information
3. Identify options
4. Weigh the options
5. Choose the best options
6. Take action
7. Evaluate the decision

Factors Affecting Consumer Decisions

1. Personal factors
2. Family factors
3. Culture
4. Social factors
Fads – interests, products, or styles that people take up with exaggerated enthusiasm for a
brief time.
Status symbols – possessions or activities by which social or economic prestige is measured.
Conspicuous consumption – purchasing goods or services to impress others
5. Social and demographic factors
6. Economic factors
7. Technology
8. Media
9. The Marketplace
10. Legal and moral factors

The Role of Advertising

Forms of advertising:

 Print ads in newspapers, magazines, telephone, directories, and other publications

 Direct mail advertising (catalogs, flyers, and promotional newsletters)
 Radio and TV commercials.
 Infomercials – TV or radio ads that run 30 minutes or longer and are designed to
resemble programming.
 Ads that appear on Web pages, pop up in a separate window, or in email messages
 Billboards and signs, whether outdoors, in a subway car, on the sides of buses and
trucks, or in other places.

Activity 3 – Product Advertisement

Think of a product to sell and create an advertisement in any form.

Shopping Skills

Comparing Retailers

 Types of products sold

 Variety and assortment of items offered
 Prices in comparison with other retailers
 Level and quality of service provided

Shopping at Home

Understanding Warranties

Finding the best buys

Making Spending Decisions

Food and Nutrition

Arts and Crafts

Interior Design

Food Service

Clothing and Grooming

Technology