2. Compare home equity loans offered by at

least four reputable lending institutions.

Consider the interest rate on the loan and the

annual percentage rate (APR), which

includes other costs, such as origination fees,

discount points, mortgage insurance and

other fees. Ask if the rate changes, and if so,

how it is calculated and how frequently, as

this will affect the amount of your monthly

payments.

Home Purchase

1. You can often negotiate a lower sale price by

employing a buyer broker who works for

you not the seller. If the buyer broker or the

broker’s firm also lists properties, there may

be a conflict of interest, so ask them to tell

you if they are showing you a property that

they have listed.

2. Do not purchase any house until it has been

examined by a home inspector that you

selected.

Renting a Place to Live

1. Do not limit your rental housing search to classified ads or referrals from friends and acquaintances. Select buildings where you would like

to live and contact their building manager or

owner to see if anything is available.

2. Remember that signing a lease probably

obligates you to make all monthly payments

for the term of the agreement.

Home Improvement

1. Home repairs often cost thousands of dollars

and are the subject of frequent complaints.

Select from among several well established,

licensed contractors who have submitted

written, fixed-price bids for the work.

Housing Housing
2. Do not sign any contract that requires full

payment before satisfactory completion of

the work.

Major Appliances

1. Consult Consumer Reports, available in

most public libraries, for information about

specific brands and how to evaluate them,

including energy use. There are often great

price and quality differences among

brands.

2. Once you’ve selected a brand, check the

phone book to learn what stores carry this

brand, then call at least four of these stores

for the prices of specific models. After

each store has given you a quote, ask if

that’s the lowest price they can offer you.

This comparison shopping can save you as

much as $100 or more.

Electricity

1. To save as much as hundreds of dollars a

year on electricity, make certain that any

new appliances you purchase, especially air

conditioners and furnaces, are energy-efficient. Information on the energy efficiency

of major appliances is found on Energy

Guide Labels required by federal law.

2. Enrolling in load management programs

and off-hour rate programs offered by your

electric utility may save you up to $100 a

year in electricity costs. Call your electric

utility for information about these cost-saving programs.

Home Heating

1. A home energy audit can identify ways to

save up to hundreds of dollars a year on

home heating (and air conditioning). Ask

your electric or gas utility if they can do

Utilities Utilities
this audit for free or for a reasonable charge.

If they cannot, ask them to refer you to a

qualified professional.

Telephone Service

1. At least once a year review your phone bills

for the previous three months to see what

local, local toll, long distance, and international calls you normally make. Call several

phone companies, including wireless companies, to find an inexpensive calling plan that

meets your needs.

2. If you make very few toll or long distance

calls, avoid calling plans with monthly fees

or minimums.

3. Check your phone bill to see if you have

optional calling services you don’t use. Each

option you drop could save you $40 or more

each year.

4. Before making calls when away from home,

compare per minute rates and surcharges for

different prepaid phone cards and calling

card plans to find the one that saves you the

most money.

5. Dial your long distance calls directly. Using

an operator to place the call can cost you up

to $10 extra.

6. If you use a wireless phone, make sure your

wireless calling plan covers the calls you

typically make. Understand promotions, peak

calling periods, area coverage and roaming,

and long distance requirements to avoid paying for more than you will use.
Food Purchased at Markets

1. You can save hundreds of dollars a year by

shopping at the lower-priced food stores.

Convenience stores often charge the highest

prices.

2. You will spend less on food if you shop with

a list.

3. You can save hundreds of dollars a year by

comparing price-per-ounce or other unit

prices on shelf labels. Stock up on those

items with low per-unit costs.

Prescription Drugs

1. Since brand name drugs are usually much

more expensive than their generic equivalents, ask your physician and pharmacist for

generic drugs whenever appropriate.

2. Since pharmacies may charge widely different prices for the same medicine, call several. When taking a drug for a long time, also

consider calling mail-order pharmacies,

which often charge lower prices.

Funeral Arrangements

1. Make your wishes known about your funeral,

memorial, or burial arrangements in writing.

Be cautious about prepaying because there

may be risks involved.

2. For information about the least costly

options, which could save you several thousand dollars, contact a local memorial society, which is usually listed in the Yellow

Pages under funeral services.

3. Before selecting a funeral home, call several

and ask for prices of specific goods and services, or visit them to obtain an itemized price

list. You are entitled to this information by

law and, by using it to comparison shop, you

can save hundreds of dollars.

Other

Revised 8/02
The Consumer Literacy Consortium is a working group of 

representatives from federal and state government agencies, 

consumer groups, business organizations, and educational institutions that seeks to develop and disseminate essential messages

to inform and educate consumers. Membership in the Consumer

Literacy Consortium does not imply endorsement of all its 

messages or the products and services of other members.

AARP

American Council of Life Insurers

American Council on Consumer Interests

American Express

AFSA Education Foundation

AT&T

Bank of America

Call For Action

Consumers' CHECKBOOK/Center for the Study of Services

Consumer Action

Consumer Federation of America

CUNA Mutual Insurance Group

Fannie Mae

Federal Consumer Information Center

Federal Reserve Board

Federal Trade Commission

Food Marketing Institute

MasterCard International

MCI Communications Corporation

National Association of Consumer Agency Administrators

National Foundation for Credit Counseling

National Institute for Consumer Education

Providian Financial Corporation

Sprint

U.S. Army

U.S.D.A Cooperative State Research, Education, 

and Extension Service

For an online version of this brochure with links to productrelated sites with additional information, go to

www.66waystosavemoney.org 

Single copies of this brochure are available for $.50 each from

Save Money, Pueblo, CO 81009. Make your check or money

order payable to the Superintendent of Documents.

For information on bulk orders contact: Save Money, Consumer

Federation of America, 1424 16th Street, NW, Suite 604,

Washington, DC 20036.

Additional information for improving purchasing decisions is

available at local libraries, which also provide access to Internet

sites intended to help consumers.
www.66waystosavemoney.org
Airline Fares

1. You may lower the price of a round trip air

fare by as much as two-thirds by making certain your trip includes a Saturday evening

stay-over, and by purchasing the ticket in

advance.

2. To make certain you have a cheap fare, even

if you use a travel agent, contact all the airlines that fly where you want to go and ask

what the lowest fare to your destination is.

3. Be flexible, if possible. Consider using low

fare carriers or alternative airports and keep

an eye out for fare wars.

Car Rental

1. Since car rental rates can vary greatly, shop

around for the best basic rates. Ask about

any additional charges (extra driver, gas,

drop-off fees) and special offers.

2. Rental car companies offer various insurance

and waiver options. Check with your automobile insurance agent and credit card company in advance to avoid duplicating any

coverage you may already have.

New Cars

1. You can save thousands of dollars over the

lifetime of a car by selecting a model that

combines a low purchase price with low

financing, insurance, gasoline, maintenance,

and repair costs. Ask your local librarian for

new car guides that contain this information.

2. Having selected a model, you can save hundreds of dollars by comparison shopping.

Call at least five dealers for price quotes and

let each know that you are calling others.

3. Remember there is no “cooling off” period

on new car sales. Once you have signed a

contract, you are obligated to buy the car.

Transportation Transportation
Used Cars

1. Before buying any used car: 

• Compare the seller’s asking price with the

average retail price in a “bluebook” or

other guide to car prices found at many

libraries, banks, and credit unions.

• Have a mechanic you trust check the car,

especially if the car is sold “as is.”

2. Consider purchasing a used car from an individual you know and trust. They are more likely than other sellers to charge a lower price

and point out any problems with the car.

Auto Leasing

1. Don’t decide to lease a car just because the

payments are lower than on a traditional auto

loan. The leasing payments may be lower

because you don’t own the car at the end of

the lease.

2. Leasing a car is very complicated. When

shopping, consider the price of the car

(known as the capitalized cost), your trade-in

allowance, any down payment, monthly payments, various fees (excess mileage, excess

“wear and tear,” end-of-lease), and the cost

of buying the car at the end of the lease.

Keys to Vehicle Leasing: A Consumer Guide,

published by the Federal Reserve Board and

Federal Trade Commission, is a valuable

source of information about auto leasing.

Gasoline

1. You can save hundreds of dollars a year by

comparing prices at different stations, pumping gas yourself, and using the lowest-octane

called for in your owner’s manual.

2. You can save up to $100 a year on gas by

keeping your engine tuned and your tires

inflated to their proper pressure.

Car Repairs

1. Consumers lose billions of dollars each year

on unneeded or poorly done car repairs. The

most important step that you can take to save

money on these repairs is to find a skilled,
honest mechanic. Before you need repairs,

look for a mechanic who:

• is certified and well established;

• has done good work for someone you

know; and

• communicates well about repair options

and costs.

Auto Insurance

1. You can save several hundred dollars a year

by purchasing auto insurance from a

licensed, low-price insurer. Call your state

insurance department for a publication showing typical prices charged by different companies. Then call at least four of the lowestpriced, licensed insurers to learn what they

would charge you for the same coverage.

2. Talk to your agent or insurer about raising

your deductibles on collision and comprehensive coverage to at least $500 or, if you

have an old car, dropping this coverage altogether. Taking these steps can save you hundreds of dollars a year.

3. Make certain that your new policy is in

effect before dropping your old one.

Homeowner/Renter Insurance

1. You can save several hundred dollars a year on

homeowner insurance and up to $50 a year on

renter insurance by purchasing insurance from

a low-price, licensed insurer. Ask your state

insurance department for a publication showing

typical prices charged by different licensed

companies. Then call at least four of the lowest

priced insurers to learn what they would charge

you. If such a publication is not available, it is

even more important to call at least four insurers for price quotes.

2. Make certain you purchase enough coverage

to replace the house and its contents.

Insurance Insurance
“Replacement” on the house means rebuilding to its current condition.

3. Make certain your new policy is in effect

before dropping your old one.

Life Insurance

1. If you want insurance protection only, and

not a savings and investment product, buy a

term life insurance policy.

2. If you want to buy a whole life, universal

life, or other cash value policy, plan to hold

it for at least 15 years. Canceling these policies after only a few years can more than

double your life insurance costs.

3. Check the National Association of Insurance

Commissioners website (www.naic.org/

servlet/cis.Main) or your local library for

information on the financial soundness of

insurance companies.

Checking

1. You can save more than $100 a year in fees

by selecting a checking account with a low

(or no) minimum balance requirement that

you can, and do, meet. Request a list of these

and other fees (including ATM and debit

card fees) that are charged on these accounts.

2. Banking institutions often will drop or lower

checking fees if paychecks are directly

deposited by your employer. Direct deposit

offers the additional advantages of convenience, security, and immediate access to your

money.

Savings and Investment Products

1. Before opening a savings or investment

account with a bank or other financial institution, find out whether the account is

insured by the federal government (FDIC or

NCUA). An increasing number of products

Banking/Credit Banking/Credit
offered by these institutions, including mutual stock funds and annuities, are not insured.

2. To earn the highest return on savings (annual

percentage yield) with little or no risk, consider certificates of deposit (CDs) or U.S.

Savings Bonds (Series I or EE).

3. Once you select a type of savings or investment product, compare rates and fees offered

by different institutions. These rates can vary

a lot and, over time, can significantly affect

interest earnings.

Credit Cards

1. If you carry large credit card debts, you can

reduce your annual credit card interest payments by as much as $1000 or more by paying off your entire bill each month.

2. If you are unable to pay off a large balance,

pay as much as you can and switch to a credit card with a low annual percentage rate

(APR). You can find listings of credit card

plans, rates, and terms on the Internet, in personal finance magazines, and in newspapers.

3. You can reduce credit card fees, which may

add up to well over $100 a year, by getting

rid of all but one or two cards, and by avoiding annual, late payment, and over-the-credit

limit fees.

Auto Loans

1. If you have significant savings earning a low

interest rate, consider making a large down

payment or even paying for the car in cash.

This could save you as much as several thousand dollars in finance charges.

2. You can save as much as hundreds of dollars

in finance charges by shopping for the

cheapest loan. Contact several banks, your

credit union, and the auto manufacturer’s

own finance company.

First Mortgage Loans

1. Although your monthly payment may be

higher, you can save tens of thousands of

dollars in interest charges by shopping for
the shortest-term mortgage you can afford.

On a $100,000 fixed-rate loan at 7% annual

percentage rate (APR), for example, you will

pay over $75,000 less in interest on a 15-

year mortgage than on a 30-year mortgage.

2. You can save thousands of dollars in interest

charges by shopping for the lowest-rate

mortgage with the fewest points. On a 15-

year $100,000 fixed-rate mortgage, just lowering the APR from 7% to 6.5% can save

you more than $5,000 in interest charges,

and paying two points instead of three would

save you an additional $1,000.

3. Check your local newspaper for mortgage

rate surveys, and call at least four lenders for

information about their rates (APRs), points

and fees. Compute precisely how much each

mortgage option will cost and its tax implications.

4. Be aware that the interest rate on most

adjustable rate mortgage loans (ARMs) can

vary a great deal over the lifetime of the

mortgage. An increase of several percentage

points might raise payments by hundreds of

dollars per month.

Mortgage Refinancing

1. Consider refinancing your mortgage if you

can get a rate that is at least one percentage

point lower than your existing mortgage rate

and plan to keep the new mortgage for several years or more. Calculate precisely how

much your new mortgage (including points,

fees and closing costs) will cost and whether,

in the long run, it will cost less than your

current mortgage.

Home Equity Loans

1. Be cautious in taking out home equity loans.

The loans reduce or may even eliminate the

equity that you have built up in your home.

Equity is the cash you would have if you

sold your house and paid off your mortgage

loans. If you are unable to make payments,

you could lose your home.