Build Your Economic Power (1977)

do you want to buy products that you'll enjoy having and using do you want to buy services that will bring more pleasure into your life do you want to be successful then friends you want to build your economic [Applause] power your eonic power what does it mean to you it means that you'll make money and you'll manage Mone too Mr Governor do you have any word on the budget yes our family always used to wonder where's our money going few weeks ago we sat down and worked out a budget on paper our Ecom power does it us to without John why have you transferred our savings from one account to another glattus I finally discovered the truth some accounts earn more interest get economic power to build your spending fund now come along with us and we will show you how it done how is it done Bill how can I earn the most money [Music] possible yeah Bill what's the best way to budget and after I have a budget how do I save and invest consumer skills mean buying can I learn more about good buying habits and what about credit I hear a lot of good and bad things about it but how does Credit work and how does it work for us yeah tell us B how can we build economic power for ourselves well uh I don't know but I I think we can find some answers in places like these I know the very essence of a modern day economy I know the economics both of business and Agronomy I know about production and I'll give an introduction so that you can understand it better than you know astronomy we'll starting with production the producers and the companies the products that they make are for consumers they're the families consumers know that work is good and all throughout the neighborhood they work for the producers when they do it they are employees consumers have their income earned from salary rent and interest in most of that's for spending though a part of it they save invest the income and the spending is a circle never ending with producer and consumer interacting with Good Humor round and rounded systematical a process democratical and that's the very essence of our modern day economy that's how our economic system operates work got me confused I don't want just any career I want my work to be right for me and I want to earn the most I can but how do I make it happen there are different opinions about that maybe you can find your own answer here books who needs them I'm going to quit school and get me a job interest surveys why take them I already know what I want one ad why read them I can get a job on my own part-time work it don't pay nothing who wants it hey look at you Jolene you got a good job a great car swell clothes and a nice place to live some people got all the luck well I work pretty hard yeah you got all the breaks people like me we keep waiting around and nothing ever happens luck that's what it is some people got it and some don't [Music] I think I understand a person has to prepare for a career that means learning and learning means study equals a career a career equals money and money means all the things we can buy I think I want a Cadillac I think I want to have a sack I think I a fancy ring I know that I want everything a house done in Golden lake at some great eating place a super power stereo where I want to go powerful big mother to all the things I like hands up my car you're going to Spud get car without a budget what exactly is a budget I know how much I have and what I want to buy why do I need a budget I bet we can find the answer in here wow look at all the things that out of BU but everything has its price yeah and I have a limited amount of money real limited I guess that's what they mean by scarcity because of scarcity we have to make choices we have to decide what we need and want we've got to have a standard for buying what could that [Music] be look into the future what look into the future every month every week then do your shopping get the things you think what is a budget it's a buying plan based on buying habits that are right for you man come on isn't a budget just a lot of paperwork doesn't it kill the pleasure of buying when you budget you don't buy everything under the sun you cut extra expenses so you have more to spend on F so come on let's take a trip in my budget time machine now tell me your one and I need to pay for school lunches and clothes out of my own money but I want to travel with my friend next summer how can I work it hey there I am making my own lunch at home and I'm not buying that expensive sweater I'm getting a lower priced one I bet I'll save maybe $5 a week there I am taking the trip it's going to cost me some clothes and some fancy lunches but if I budget right I'll make it oh that's great but I don't think it can work out that well for me I have most of my needs but a lot of the extra things I want are so expensive I'll never be able to have them It's upsetting I'm worried what do I have to know to get even a part of what I want opportunity cost but that means I'll have to give up some things in order to get others but I don't want to give up anything if you want something better bad enough you'll give up other things to get it the whole idea of budgeting is dealing with opportunity costs that's why people who handle their budgets well say make up a budget a buying plan Bas it on buying habits that are right for you man do your shopping get the things you seek and look to the Future every day every week it's okay Linda everybody has to live without Unity cost and scarcity affects everybody no matter how much or how little we may have I think I understand but I don't want just things I want to save money too where can I find out about Savings in the great city of echinops it was a busy day Banks were filled with customers then suddenly one saver looked up and said why should I save an invest another added what does savings mean a third question how should I save an invest in a matter of minutes Panic spread through the city and then faster than an automatic change maker more powerful than our nation's economic system look up in the sky it's a $10 bill it's a US Bond it's savings man kapo savings man what is savings the answer is here in this special book a super power book no my passbook you see it contains the deposit record for my personal account with savings I can buy what I want when I want it and I'm prepared for emergencies too savings mean extra income see they pay me Interest I found out what percent the interest would be before I open the account how can I get the most out of my personal savings three superpowered ways Kabam set savings goals shop for an account and save regularly now tell me what are your goals what do you want to save for there are things I want pretty soon a new sign kit and a little cassette recorder those are your short-term savings goals and I want bigger things a trip down south to Adventure Land and a little motorbike all my own those are your long-term savings goals so you set your savings goals and then you webble shop for an account did you know that there are differences in the interest that different kinds of saving institutions pay and we also have to look out for economic change maybe like this man when I was a boy a dollar bill was worth a dollar value stood quite still but now inflation is a word we here and I don't know what my dollar will be worth next year what if my savings pay me 6% but the prices that I'm paying go up 8% then while I save I also lose it's a tricky situation and it could confuse even if inflation reduces your savings a little it's always good to have money saved and invested why do people invest savings man because Investments may make a great deal more than savings people may profit more Investments are risk savings the stocks buy are shares in a particular company if that company's business improves your shares can grow in value but you're taking a risk the value of your shares can go down that's why I advise most people to save with a regular account and to follow my third and final rules save regularly thank you saies man now we understand bless you savings man come on philli let's open an account right away can good buying methods be learned can a person Express individuality in his buying the makers of Vil feers present buying habits of Our Lives I did something last Saturday I don't know why I did it but here's how it happened I was out with my friends at the shopping center and Phyllis bought a new sweater I don't know why but I felt I had to have one just like it so I bought one exactly like my friends I feel terribly Wicked I don't know why it happened but that's what I said I understand at least I think I understand many young people buy as you do you aren't alone that way others are buying with you oh [Music] doctor good evening this Saturday like every Saturday for the past 10 years the AL forier Family is preparing to shop and this year EC's Linda Sanford is on the scene to check their Vine habits Linda here and it's remarkable how fast a family can shop when their buying habits are set into the orange bug the fourth car they've owned in 10 years all the same model all the same color off to the same shopping center where they always go into the supermarket where they always shop for the same product here's the clothing store where they always shop for the same Styles and Brands even their medical and dental service a matter of habit buying habits this is Linda Sanford with the Fier family a family that may wind up in serious trouble because times are changing every family and its needs are changing people must examine their buying habits to be sure they pay off in terms of good products and services at fair prices and now for a brief [Music] message [Music] be I've been looking at those for a long time I'd really like one but I don't have any money you could buy on credit lots of people do and lots of kids qualify for student loans even charge accounts gosh maybe I can get credit here at a store where they sell them do you want an open account or a revolving account well what do you think an open account has to be paid in full every month a revolving account requires a small monthly part payment and a finance charge the usual amount the usual one or one in one half% a month depending on what state you live in no if you're 18 you can fill out an application now otherwise bring it home to your parents for their approval an application what do they want to [Music] know did you get a credit account did you buy what you wanted not yet I want to shop around for the best deal maybe that means a credit card Mr Olen you understand what a credit card is you can use it in many stores and to buy many services with our car there's a yearly fee and you pay the build amount every month some other cards carry your balance from month to month and add a monthly interest charge would you like an [Music] application you know that interest you pay on a bank loan is usually lower than a store's finance charge here's the amount monthly yearly truth and lending laws require lenders to write it that way also we may want collateral for the loan either the item you purchase or something valuable you pledge to make sure we get paid back and if a payment is late we may add an extra charge a penalty [Music] you want alone sure no applications no references your people don't have to know nothing about this of course you pay a lot for an easy loan like this a really real lot and if you can't pay on time we'll work it [Laughter] [Music] out an open account a revolving account there's a charge L the full amount penalty hey Donald is everything okay we were talking about credit and you went off into another world yeah I was thinking about charge accounts and loans no reason to worry there's plenty of time to shop for credit and now we know pretty much about economic power I guess so but to make sure we understand can you tell me some reasons for Consumer skills considering the amount we have to spend consumer skills can help us to get more yeah consumer skills can help us to have more yeah yeah consumer skills can help us to be more yeah right because there's economic power in your future you're going to earn an income you'll have savings with the highest interest available you're going to change your buying habits to meet every change in the economy and you'll use all your skill and knowledge to make credit work for you yes you're going to build your economic power your economic power what can it me to you it that you can and you can manage money too our economic power what does it mean to us it means that we have told you how to much get economic power to build your spending fund the time is right the future's right consum everyone [Music]