Consumer Education and Personal Finance
Consumer Education and Personal Finance
Questions test consumer rights and responsibilities, wise buying, unit pricing, advertising, labels and warranties, budgeting, saving, credit and insurance, and the steps for redress when goods are faulty.
Core rules
- Consumer rights include safety, information, choice, being heard, redress, satisfaction of basic needs, education and a healthy environment; each has a matching responsibility such as reading labels, keeping receipts and complaining fairly.
- Unit price compares cost per kilogram, litre or 100 g; a larger pack is not always cheaper.
- Advertising techniques: bandwagon, testimonial, snob appeal, fear, repetition, 'free' offers.
- Labels show ingredients, net weight, expiry or best-before date, storage instructions and the manufacturer's address.
- Budget: income − fixed expenses − variable expenses = savings.
- Credit costs more than the ticket price because of interest and charges; insurance transfers risk in return for a premium.
Worked example
Brand A: 500 g for K2,000. Brand B: 1 kg for K3,600. Reasoning: convert to a common unit. A is K4,000 per kg; B is K3,600 per kg, so B is cheaper by K400 per kg. If the household can use 1 kg before it spoils, B is the better buy; if not, wastage may cancel the saving. State both price and wastage for full marks.
Traps
- Comparing pack prices instead of unit prices.
- Assuming the largest pack is always cheapest.
- Forgetting that credit attracts interest and that a receipt is needed for redress.