Family Economics and Consumer Education

Family Economics And Consumer Education 3 (2+1)

Lesson 19 : Consumer Education

Need For Consumer Education

A consumer is influenced by a number of factors like customs, traditions, fashion, advertisements, society, neighbors etc.
These factors have an important bearing in his behavior. The consumer has an important role to play for maximizing the satisfaction of the family members by judicious use of the money income.
The consumer behavior is reflected in the way he uses his resources like money, time, knowledge and ability.
Consumer education can provide the right direction to the consumer, and form a basic step to economic literacy. Every day the consumer have to analyse , evaluate and compare the information about the products and services they are buying/purchasing. They need to know how to budget for and manage their money and what to do when a financial crises arises. They should be aware of their roles of consumer in influencing the economy. To equip themselves in these respects, the consumers have to develop skills, build confidence and apply their consumer skills effectively. This can be achieved through consumer education.
The main purpose of consumer education is to influence the consumer behavior. Consumer Education teaches the meaning of consumption i.e. purchasing, usage etc.
The consumer education goals are directed towards use of minimum resources for maximum satisfaction.
Programmes needed for consumer education:
Consumer education needs the following programmes
-Spreading information about consumer rights and responsibilities
-Product evaluation and choice
- Grievance reddressal and remedies available etc
These programmes should be based on research done on consumer motivation and consumer behavior in real situation so that these are relevant.
Consumer education: It is the process of gaining knowledge and skills needed in managing consumer resources and taking action to influence the factors which affect consumer decisions.
Objectives of Consumer Education

1. Developing skills
2. Gain knowledge
3. Develop understanding

1. Developing skills of a consumer relates to making him to act as informed and responsible person. The skills include writing letters of complaint, exercising judgement with respect to

   -sales promotion campaigns
   -Selecting, using and disposing of products knowledgeably.

2. Imparting Knowledge
To make consumers to act as informed consumer, This relates to knowing of consumer rights and responsibilities, all relevant laws of the country affecting consumers’ basic knowledge about health, subjectwise utilization of resources etc.

3. Developing understanding
To make the consumer understand how society functions as a whole and the role of consumer in particular.

Consumer education relates to understanding of the individual concerns of consumers as well as that of the society at large.
By having consumer education the consumers will be well informed , will be critical and active about the way they meet their needs. It would encourage them to apply the following simple rules while making purchases.
-Buying things for their usefulness rather than for status.
-Learn to enjoy things without owning them.
-Evaluate critically on all offers on buying now and pay later schemes.
-Reject any thing that will encourage the oppression of others.
Consumer education not only encourage skills for wise buying of quality goods at fair prices and for the protection of consumers against unfair trade practices in the market, but also the skills for active participation of consumer in the economic, social and political decisions that affect them.