Coming In From the (Shopping) Cold
A Lesson in On-Line Shopping
Learning Standard (National Standards for Family and Consumer Sciences Education):
2.0 Evaluate management practices related to the human, economic, and environmental recourses.
2.1 Demonstrate management of individual and family resources, including food, clothing, shelter, health care, recreation, and transportation.
2.2 Analyze the relationship of the environment to family and consumer resources.
2.2 Evaluate the impact of technology on individual and family resources.
Objective: This activity will help students learn:
to use online shopping safely and effectively.
techniques of comparison shopping on the Internet.
to comprehend the impact of cost of living on resource management.
Project Summary
You have just learned that the company that you work for is transferring you from the city in which you currently reside to their new regional office in Anchorage, Alaska. While you are excited about the move, you are concerned about the impact it may make on your finances. Your current salary of $50,000 annual income has been sufficient to meet your needs. However, you have heard that the cost of living in Anchorage may be higher than you are currently experiencing. You have the option of accepting the new position or passing up the opportunity. Before you make your final decision, you need to do some research. That is step one of this project. The Internet is an efficient and accessible source of information related to the cost of living in various parts of the county. You will use it to gather the information that you need to make an informed decision.
Before you begin your research, here are some terms that you will need to understand:
| cost of living | Consumer Price Index |
| disposable income | inflation |
| salary | compensation |
Suggested Web Sites:
www.bankrate.com
(cost of living comparison calculator)
www.homefair.com/salarycalculator
www.bestplaces.net/col/
Gather the following information by entering the name of the city in which you currently live (or the nearest one available in the drop down list) and Anchorage, Alaska in the field provided for the city to which you will be moving. You may need a calculator to complete this section.
To Move or Not to Move
North to Alaska?
1. How much money will you need to earn in Anchorage in order to maintain your current standard of living?
2. Does that represent an increase or decrease in your current salary? What is the percentage of change between the two amounts?
3. Compare the costs of the following items in your current city of residence and that of Anchorage.
| Budget Item |
Your City |
Anchorage, Alaska |
|
Rent |
|
|
|
Toothpaste |
|
|
|
Women’s slacks |
|
|
|
Men’s shirt |
|
|
|
Pizza |
|
|
|
Orange juice |
|
|
|
Ground beef |
|
|
|
Newspaper |
|
|
|
Haircut |
|
|
|
Telephone |
|
|
4. Why do you think there is such a difference in the prices of everyday items where you live and the same items in Alaska?
5. List the three items that represent the greatest difference in price.
6. In view of the results of your research, would you make the move to Alaska? Why or why not?
Living in a Winter Wonderland
Beating the High Cost of Shopping
In spite of your reservations, you decided to accept a 20% increase in salary and make the move to Anchorage. After residing there for three months, you have come to conclusion that shopping for items online may be a solution to your shopping dilemma. Even with the addition of shipping costs, you predict that you will save money. You decide to test your theory by doing some comparison shopping for one of the kitchen appliances and electronic items you need to purchase. You decide to shop for a new answering machine. You decide that the answering machine should have at least 15 minutes of message time and a date-time stamp. You hope to find an acceptable model for $50 or less including shipping.
Suggested Web Sites
Check out the following web sites for tips to remember when shopping online:
Directions for comparison shopping on the Internet
Go online to the URL of one of the suggested web sites. Find the answer to
the following questions.
1. How many brands of the item for which you are shopping are listed on this web site?
2. How many models of the item are listed on the web site?
3. Sort the listings by price from the least expensive to the most expensive.
4. Look at the features of the models listed. Find the brands and models that have the features you want. Select the model that you would purchase.
5. Is there a rating for the store you selected?
6. What advantages do you see in comparison shopping on the Internet?
If you decide that purchasing the answering machine online, you can still save money by waiting for a strategic time to make the purchase from a local store. Consult the web site listed below and decide when would be the best month(s) to make this purchase.
http://www.thefrugalshopper.com/articles/seasonal.shtml