Issue Date: June 21, 2009

How smart a shopper are you?

A quick, fun little quiz from our MoneySmart writer

Sharon Epperson

Buying an extended warranty on a new home appliance or flat-screen TV only makes sense if:
a. You plan to keep the item for a long time
b. You get a discount on the item for buying the warranty
c. The warranty costs less than 20% of the item's purchase price
d. You don't want to pay someone to fix it

ANSWER: C Personal finance experts Ken and Daria Dolan say if you feel strongly about buying an extended warranty, a good rule of thumb is to make sure it costs less than 20% of the purchase price. Shop around, and carefully review the terms, including the length of coverage and any fees.

When buying a used car, what's the most critical thing to do?
a. Have the car checked by a certified auto mechanic
b. Ask the seller for the car's repair and maintenance records
c. Get the car's VIN (vehicle identification number) and contact Carfax or AutoCheck for a complete report
ANSWER: All are good ideas, but A is most important. A good mechanic should be able to spot hidden accident or flooding damage (auto history reports would do the same). And he can give you an assessment of the soundness of the car's systems and specific parts.

If you're trying to save on groceries, you should always:
a. Purchase the largest size of staple items
b. Compare the unit price, not the sale price
c. Stay away from the salad bar -- you'll pay more there
d. Shop just once a week

ANSWER: B The unit price tells you how much you're getting for your money. A 10-ounce can of soup for $1 (10 cents per ounce) costs more than a 15-ounce can at $1.20 (8 cents per ounce). "Economy-sized" items are not always cheaper than smaller ones, so check. (A few pepper slices from the salad bar for a stir-fry can be a better buy if that cuts back on wasted food.)