Comparison shopping loaded with lessons for youngsters
My 7-year-old grandson, Aidan, is a huge "Star Wars" fan. Imagine his excitement when he realized that, after weeks of saving the $5 allowance his parents give him, he had $40. That was more than enough for a General Grievous Starfighter advertised for $19.99 at a toy company Web site where he plays "Star Wars"-themed games.
Aidan wanted to buy the Starfighter right away, as any second-grader would. But my daughter, Veronica, used the opportunity to teach Aidan a smart-consumer lesson many adults bent on instant gratification could learn.
"I suggested we do a little comparison-shopping first," Veronica said. "We would look for the same toy at different stores to see which had the best price."
Veronica and Aidan visited two toy stores near the house, but neither had the Starfighter. So they decided to bargain hunt on the Web.
Aidan was amazed five online stores - including the one where he first saw the Starfighter - had different prices. Veronica drew up a chart with the name of each store, the price of the toy, the charge for shipping and the total price (sales tax included), which varied by as much as $8.
The best total price, $21.66, represented a savings of $4.95 compared with the site Aidan first saw. Veronica put the Starfighter on her debit card and Aidan reimbursed her with cash from his piggy bank, including carefully counted change to cover sales tax.
"I asked Aidan what he thought about what we'd done." Veronica said. His reply, while humorous, showed he understood the concept: "If one store charges $1 million and the other store charges $2 million, you buy it at the store where it costs $1 million," he said.
Comparison-shopping works for adults, too. Veronica and her husband, Kyle, often go to two different grocery stores to take advantage of sales and everyday lower prices.
For children, comparison-shopping has added educational benefits.
John Kessler, economics lecturer at Indiana University-Purdue University Fort Wayne (IPFW), told Veronica that comparing prices is a way to teach children the choices they make have consequences.
It's also an opportunity to introduce the concept of opportunity cost: If Aidan buys the General Grievous Starfighter, he can't buy other items on his toy wish list, at least for a while.
Kessler suggests parents take their children to stores where prices are posted clearly. This will help them understand how much toys cost.
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Send questions or comments to Humberto Cruz at AskHumberto@aol.com or c/o Tribune Media Services, 2225 Kenmore Ave., Buffalo, NY 14207. Personal replies are not possible.
