Personal Finance Food for Thought Assignment PDF

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Brandon Erdman 11/01/2018 Personal Finance Food for Thought Assignment 1. How much money would you save per month by buying the generic brand food? Each month, I would save approximately $82.60 from buying only Great Value brand groceries. This is calculated by multiplying the difference in cost between the name brand and generic brand, and multiplying the result by four.

2. If you were to invest the money you saved by eating generic food, how much would you have in 40 years? This is how much of your retirement you are eating by purchasing only name-brand items. $82.60 x 12 = $991.20  $991.20 x 40 = $39,648 Over the course of 40 years, I would save around $39,650 by purchasing only genericbrand items.

3. If you only had $10 to feed a family of 4 for dinner, which items would you buy? If I only had $10 to feed a family of 4 for dinner, I would buy: Two lbs generic-brand chicken breast - $2.19 x 2 = $4.38 A loaf of generic-brand bread - $0.88 Canned tomatoes (generic brand) - $1.25 Total: $6.51 The remaining amount can be spent on condiments. The meal would consist of chicken sandwiches with tomatoes.

4. Other than grocery shopping, when does it make sense to buy generic over namebrand products? It makes sense to buy generic over name-brand things in many different situations. In many cases, the difference between generic and name-brand electronics are minimal. For example, HDMI cables will work the same regardless if you buy a $2 version or a $50

one. Many medicines work the same way, so it makes sense to go with the generic version.

5. Is there a situation when it makes sense to buy name-brand over generic products? It makes sense to buy name-brand products over generic brands when the differences between the two are disticnt and there is a drop-off in quality with the generic brand. It also makes sense to buy the name-brand if the price difference is not very large, and if you use the product often. Personally, I would never buy the generic brand of toilet paper because the quality difference is so evident and it is such a commonly used item....