Since your current purchase choices can affect your financial future, it’s important to make responsible decisions. Although you’re subjected to a seemingly endless onslaught of advertisements and purchase pressures, it’s necessary to learn to be a smart consumer. Making smart consumer decisions can put your on the way to increased financial freedom and prosperity, and create a rich and vibrant local economy.

One goal we have when we shop is to be able to save money on the purchases we make. But we all face the challenge of making sure that when we spend our money, we are also doing so wisely and safely. We need to be more aware of what it is we buy or whom we hire and try not to get all excited just because something sounds too good to be true.

Ask yourself these questions before buying:

• Do we really know what kind of product we’re buying?
• Do we know who we are buying from?
• Does buying this product or service support our local economy?
• Do we really need this product or service or is this an impulse purchase that we’ll regret later?

Being a smart consumer is easy once you get the basics down…use this checklist of help you be a smart consumer and save your money for those more important purchases or to reduce your debt, enhance your personal wealth, and contribute to your local economy.

1 – Know who you are buying from.
Know where the product or service your buying is coming from.  This is particularly important when purchasing items online — make sure you review the status and feedback of the seller.  Be confident that the person you are buying from is legitimate and product or service is reliable, and that in the event of a problem a remedy can be easily obtained to your satisfaction.  Being fully aware and informed about with whom you are doing business will also help you avoid mistakes that could result in identify theft and hijacking of your credit cards.  When in doubt – run away! Of course the same goes for local business too. Check with the BBB (Better Business Bureau) if you’re unsure of a company’s reputation.

2 – It always pays to check Consumer Reports.
Consumer Reports and other consumer sites are out there telling us what’s been banned, recalled, pulled from our shelves. Keep your eyes open for warnings in the mail, online, from your local news and newspapers.  Also do not buy knock-offs or imitations – check for serial numbers, tags of authentication, and product warranties (the biggest giveaway that what you are buying is fake are grammar and spelling mistakes on tags, and less subtle indicators like flawed placement or unclear logos and branding.)

3 – Refrain from impulse buying.
Think before you make any purchase, especially big ticket items. Stick to your budget whenever you shop to keep close track of your spending. Avoid situations where you feel pressured into veering away from rational purchase behaviors. It may even be necessary to avoid shopping trips with your credit card-happy friends. Don’t let one great feature cloud your judgment. For example, while price is an important factor, low price alone shouldn’t lure you into an inappropriate purchase decision.

4 – Recognize and purchase quality.
Important factors such as brand quality, and your individual usage intentions should be taken into account whenever making purchase decisions. Even a “cheap” item needs to have an established purpose before it’s purchased. Do you poke and prod the products you’re about to buy? It may not sound like the most elegant thing to do, but I’m really talking more about doing what it takes to recognize how well put together a product is.  The same can apply to food purchases…scrutinize the ingredients and understand what you are putting in your body – quality matters!

5 – Read the fine print.
Read the fine print on purchase agreements. Stay informed of current rates and restrictions by paying attention to the details. Failure to do so may leave you with limited warranties and skyrocketing interest rates. Never enter into any contact without a full understanding of all purchase implications. Some manufacturers have strict rules regarding returns time limits. Return and exchange policies are only as legitimate as the company offering them.

6 – Pay attention to consumer trends.
Pay attention to pricing patterns and trends. Since consumer demand often fuels higher prices, avoid buying when product demand is still high. Waiting a few months can save you money and give you time to decide if the purchase is a good deal for you. Take advantage of special incentives such as annual tax free savings weekends and end-of-season clearance sales. Use coupons and rebated whenever possible to save even more money.

7 – Buy local and support local economies.
This may be a controversial point…but globalization and international trade does nothing to support local employment and economic growth.  In fact, in many instances it leads to multinationals controlling the fate of millions of people – from local communities to whole nations. It’s also worth noting that typically a GREEN economy focuses on local production for local use. This is a personal choice and may not be a matter of black or white. There are some things you may prefer to get locally while others function spectacularly well as imports.

Although we may need to keep the big picture of the global context in mind,  focusing on individual action at the local community level fosters economic, social and cultural growth.  When we act with the bigger picture of our local community in mind this leads to sustainable local community economic development and enhances community social and cultural richness and quality.

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Community Futures Strathcona operates under a volunteer Boards and Committees of established local business people and professionals committed to supporting and nurturing local business, entrepreneurs and building sustainable local economies.

The Community Futures Strathcona proven track record has resulted in hundreds of new jobs, provided excellent returns on loans, and contributed to many community programs and initiatives crucial to supporting local business, the entrepreneurial spirit, and building sustainable local economies.

For more information on Community Futures Strathcona contact us via eMAIL or Phone