Personal Finance / Unit 9: Consumer Skills and Protection
9.2 Advertising, Sales and Impulse Buying
Notes
Ads aim to sell, so use them as information while thinking critically.
- Common tactics: limited-time offers, "free" trials, celebrity endorsements, and anchoring (a high "original" price next to a sale price).
- Percent off: sale price = original $\times (1 -$ discount$)$. Example: 25% off $80 is $80 $-$ $20 = $60.
- A free trial may start charging automatically. A $10 monthly charge after a trial costs $120 a year.
- Impulse buying is an unplanned purchase made on emotion. A waiting period (for example 24 hours) can help.
- Use a list and your budget to stay on track.
Practice
A $50 item is 20% off. What is the sale price?
20% of $50 is $10, and $50 - 10 = 40$.
An app offers a free 7-day trial, then charges $8 per month automatically. What is the yearly cost if you forget to cancel after the trial (ignore the trial week)?
$8 \times 12 = 96$.
Which habit helps reduce impulse purchases?
A pause lets emotion fade and helps you decide.
Ready for more? Take the Unit 9 test.