Implementation of a food storage program can be severly limited by the perception that the family food budget will not allow any additional purchases. This reticence is based on a lack of awareness of the amount spent on food as opposed to the amount spent on non-food consumption items. The three non-food items that take up a surprising amount of home food budget money are coffee, alcohol and tobacco products.
According to Coffeeresearch.org in 1999 there were 108,000,000 coffee consumers in the United States spending an approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the foodservice sector every year (Specialty Coffee Association of America 1999 Market Report). Coffee drinkers spent an average $164.71 per year on coffee. By 2002, the total retail figure had risen to $10.74 billion with a propotionate rise in the average per capita cost of consumption.
See http://www.allbusiness.com/manufacturing/food-manufacturing-food-coffee-tea/195465-1.html and http://www.coffeeresearch.org/market/usa.htm
Based on the USDA figures for average weekly food costs on the Thrifty Plan, two adults spend $79.60 a week on food. So the average American couple spends more than two week's worth of food money for coffee each year.
As I have mentioned before, figures giving accurate per capita spending in the United States for alcohol and tobacco products is very difficult to find. One statistic shows that the per capita consumption of alcohol in the U.S. was 2.18 gallons. Considering the number of children and non-drinkers, the real average has to be considerably higher. I can find how much you spend on okra faster and more completely than any statistics on alcohol consumption or spending. Whatever is spent, it is too much.
In addition, over 60% of the U.S. population is (according to government definitions) either overweight of obese.
See http://www.cdc.gov/nchs/data/hus/hus07.pdf#068
The conclusion is that Americans spend too much on food, too much on alcohol and too much on tobacco products. The reduction or elimination of any of the non-food categories of spending would more than finance a food storage plan.
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Friday, October 3, 2008
Wednesday, October 1, 2008
More on spending habits vs. real food costs
Before going further on the subject of spending habits and real food costs, I would like to point out that we have seven children. I am certain that we have never come even close to spending the amount recommended by the USDA as their "Thrifty Plan." If Americans are really spending as much as the Liberal Plan would allow, then we can certainly see why obesity is such a problem. We can not imagine eating that much food. Bear in mind that these amounts do not include anything for "eating out." This is the estimated cost for in-home food.
I did have a friend, years and years ago, who drank at least six or seven cans of soda every afternoon. I used to sit there and watch him drink it down. So I do know that people can spend more than I would on non-food items. Some of the items are not food, in our definition. We do not consider coffee, tea, soda, and chewing gum to be food, for example. Conspicuously absent from this food list is any purchase of alcoholic beverages which would certainly add a considerable amount to the weekly cost. It is surprisingly difficult to find accurate figures as to the per capita consumption of these "non-food" items. We do not chose to avoid these items merely because they are detrimental or habit forming, as members of The Church of Jesus Christ of Latter-day Saints we have a religious based reason. Modern revelation to a Prophet of God instructs us to avoid, alcoholic beverages, coffee and tea and to eat in moderation.
Fortunately, our family's spending habits were formed by my wife and her family. We have some basic rules of food purchase and consumption:
1. Never buy anything that isn't on sale at the lowest price available. Now, this rule isn't always possible to follow, but it is a good starting point. This principle is one of the basic tenants of food storage.
2. Never buy prepared food when there is an unprepared or unprocessed substitute available. This takes some effort and I will talk about this more in future blogs.
3. If the price of a certain type or brand of food goes up or does not go on sale, do not buy it. This is hard to do, since we often buy through habit or what we a accustomed to purchasing.
4. Always buy day-old or "manager's specials" especially if they are things you would normally eat.
5. Always shop with a list and never buy anything in the store merely out of convenience when you plan to buy the item in another store for less. Time is money but money is also money. Don't spend more just out of convenience.
6. Never buy staples, i.e. milk, eggs, butter, meat etc. from a convenience store. In fact, in our viewpoint don't buy anything, especially sugar drinks and snack foods at a convenience store.
More on these rules later.
I did have a friend, years and years ago, who drank at least six or seven cans of soda every afternoon. I used to sit there and watch him drink it down. So I do know that people can spend more than I would on non-food items. Some of the items are not food, in our definition. We do not consider coffee, tea, soda, and chewing gum to be food, for example. Conspicuously absent from this food list is any purchase of alcoholic beverages which would certainly add a considerable amount to the weekly cost. It is surprisingly difficult to find accurate figures as to the per capita consumption of these "non-food" items. We do not chose to avoid these items merely because they are detrimental or habit forming, as members of The Church of Jesus Christ of Latter-day Saints we have a religious based reason. Modern revelation to a Prophet of God instructs us to avoid, alcoholic beverages, coffee and tea and to eat in moderation.
Fortunately, our family's spending habits were formed by my wife and her family. We have some basic rules of food purchase and consumption:
1. Never buy anything that isn't on sale at the lowest price available. Now, this rule isn't always possible to follow, but it is a good starting point. This principle is one of the basic tenants of food storage.
2. Never buy prepared food when there is an unprepared or unprocessed substitute available. This takes some effort and I will talk about this more in future blogs.
3. If the price of a certain type or brand of food goes up or does not go on sale, do not buy it. This is hard to do, since we often buy through habit or what we a accustomed to purchasing.
4. Always buy day-old or "manager's specials" especially if they are things you would normally eat.
5. Always shop with a list and never buy anything in the store merely out of convenience when you plan to buy the item in another store for less. Time is money but money is also money. Don't spend more just out of convenience.
6. Never buy staples, i.e. milk, eggs, butter, meat etc. from a convenience store. In fact, in our viewpoint don't buy anything, especially sugar drinks and snack foods at a convenience store.
More on these rules later.
Spending habits vs. real food costs
Once again, the United States Department of Agriculture is a good source for basic information on food. I suppose that is not really much of a surprise the billions of dollars have to go somewhere. The latest food cost figures are from August of 2008. The lowest cost Food Plan is the Thrifty Plan. In this Plan, two adults are supposed to pay from $79.60 a week for the over 51 age group and $83.50 a week for the under 51 age group. For a family of four with young children under 5 years old, the amount is $121.10 per week. For a family of four with two children up to 11 years of age, the amount climbs to $139.10 per week or $7,233.20 per year. This Food Plan isn't based on some average figure but the USDA's standard nutritious diet.
Just in case you are wondering, here is the link to the study:
http://www.cnpp.usda.gov/USDAFoodCost-Home.htm
The other three plans are more expensive. The Low-cost plan would have the following four costs per week: $101.80, $105.70, $153.10 and $179.70. The Moderate Cost Plan's cost per week: $125.10, $130,60, $188.20 and $223.40. The last one, the Liberal Plan's cost per week is: $150.40, $163.10, $233.00 and $271.80.
Spending with the Liberal Plan jumps to $14, 133.60 per year in food costs. The plans are based on the purchase of a hypothetical food basket which is determined by determining the average consumption of each of the USDA's food categories, the average price of each of the categories and nutrient profile and MyPyramid Equivalents Profile of each of the food categories.
Now what are these categories? The list is long, but here it is:
Table 1. Food categories and examples of foods in each category, Thrifty Food Plan, 2006
Food category Examples of foods
Grains
Breads, yeast and quick—whole grain (n = 38) Whole wheat, multigrain, or pumpernickel breads, rolls, bagels, scones, English muffins, biscuits, tortillas, and pancakes—all with 50% or more of ounce equivalents1 from whole grain
Breads, yeast and quick—non-whole grain (n = 271) White, French, potato, bran, or rye breads and rolls; muffins, English muffins, bagels, waffles, corn tortillas, taco shells, cornbread, and pancakes—all with less than 50% of ounce equivalents from whole grain
Breakfast cereal—whole grain, regular calories2 Cooked cereals (e.g., oatmeal and bulgur) with sugars, fat, and whole milk or 2% milk added; (n = 74) sweetened ready-to-eat cereals (e.g., frosted wheats and granola)—all with 50% or more of ounce equivalents from whole grain
Breakfast cereal—whole grain, low calories2 Cooked cereals (e.g., oatmeal, bulgur, and buckwheat groats) without added sugars or fat; (n = 54) nonsweetened ready-to-eat cereals (e.g., shredded wheat and mueslix)—all with 50% or more of ounce equivalents from whole grain
Breakfast cereal—non-whole grain (n = 214) Cooked cereal (e.g., cream of wheat, grits, and oat bran); sweetened or nonsweetened readyto-eat cereals (e.g., frosted cornflakes and puffed rice)—all with less than 50% of ounce equivalents from whole grain
Rice and pasta—whole grain (n = 15) Brown rice, wild rice, whole wheat pasta (e.g., macaroni, spaghetti, and noodles)—all with 50% or more of ounce equivalents from whole grain
Rice and pasta—non-whole grain (n = 48) Long or short white rice, sweet rice, rice noodles and pasta (e.g., macaroni, spaghetti, and noodles)—all with less than 50% of ounce equivalents from whole grain
Cakes, pies, and other sweet bakery Oatmeal cookies, granola cookies, whole wheat doughnuts, granola bars, and graham crackers—products—whole grain (n = 20) all with 50% or more of ounce equivalents from whole grain
Cakes, pies, and other sweet bakery Pies, cookies, pastries, doughnuts, shortbread; all cakes (e.g., white, yellow, shortcake, sponge, products—non-whole grain (n = 425) pound, and angel food); croissants; and sweet rolls—all with less than 50% of ounce equivalents from whole grain
Grain-based snacks—whole grain (n = 30) Popcorn, salty snacks, crackers, multigrain pretzels, and puffed wheat cakes—all with 50% or more of ounce equivalents from whole grain
Grain-based snacks—non-whole grain (n = 58) Crackers (e.g., soda, oyster, cheese, and rice); hard or soft pretzels; and salty snacks (e.g., tortilla chips)—all with less than 50% of ounce equivalents from whole grain
Grain mixtures—regular fat (n = 229) Foods such as tacos, burritos, enchiladas, pizzas, egg rolls, and pasta and rice with meat where grain is major ingredient and containing 6% or more fat by weight
Grain mixtures—lowfat (n = 140) Foods such as rice and pasta with vegetables and/or beans, noodle or rice soups with vegetables and/or meat, and garden rolls where grain is major ingredient and containing less than 6% fat by weight
Vegetables and fruits
Potato products—regular fat (n = 34) French-fried potatoes, potato chips, hash browns, potato puffs, potato patty; and potato salads and mashed potatoes with added fat, eggs, or cheese
Potato products—lowfat (n = 60) Boiled, baked, scalloped, mashed, and stuffed potatoes; and potato salad, German style
Dark-green vegetables—added fat (n = 34) All dark-green vegetables such as broccoli, spinach, chard, collard greens, mustard greens, and Dark-green vegetables—no added fat (n = 21) kale—with or without fat added
Orange vegetables—added fat (n = 28) All orange vegetables such as carrots, pumpkin, winter squash, and sweet potatoes—with or Orange vegetables—no added fat (n = 28) without fat added
Tomatoes—added fat (n = 32) Tomato, tomato sauce, tomato puree, tomato paste, tomato soup, and tomato juice—with or Tomatoes—no added fat (n = 37) without fat added
Other vegetables—added fat (n = 136) All other vegetables such as green beans, beets, cabbage, cauliflower, corn, eggplant, green peas,
Other vegetables—no added fat (n = 163) iceberg lettuce, bell pepper, snow peas, turnip, and Brussels sprouts—with or without fat added
Mixed vegetables—added fat (n = 101) Foods such as stuffed vegetables, creamed peas and carrots, batter-dipped fried vegetables, and
Mixed vegetables—no added fat (n = 43) vegetable stir-fry where vegetables are the primary ingredient—with or without fat added
1The following each counts as 1 ounce-equivalent (1 serving) of grains: 1/2 cup cooked rice, pasta, or cooked cereal; 1 ounce dry pasta or rice; 1 slice of
bread; 1 small muffin (1 oz); 1 cup ready-to-eat cereal flakes.
2In this context, “calories” refers to total calories from discretionary solid fat and added sugars in the product. Discretionary solid fat in cereals is the fat that is solid at room temperature and is added to the cereals during processing or at the table.
Note: n refers to number of food codes in the food category.
Citrus fruits, melons, and berries (n = 62) Oranges, grapefruits, limes, lemons, and tangelos; melons (e.g.,watermelon, cantaloupe, and honeydew); berries (e.g., strawberries, blueberries, cranberries, raspberries, and blackberries)
Citrus fruit, melon, and berry juices (n = 38) 100% fruit juices made from citrus fruits, melons, and berries
Fruits other than citrus fruits, melons, and berries Fruits such as bananas, apples, cherries, peaches, pears, grapes, plums, papayas, and apricots (n = 185)
Fruit juices other than citrus, melon, and berry 100% fruit juices made from fruits other than citrus fruits, melons, and berries (n = 70)
Milk products
Milk and milk-based foods—regular fat (n = 56) All fluid, evaporated, condensed, and dry whole milk; regular yogurt; all fluid creams; cream substitutes; cream cheese; and dips
Milk and milk-based foods—lower fat (n = 38) All fluid, evaporated, and dry reduced-fat and skim milks; buttermilk; and lowfat or nonfat yogurts
Cheese (n = 98) Natural, processed, and imitation cheeses; cottage cheese; cheese spreads; cheese dips; and cheese soups
Milk-based drinks and desserts—regular fat Milk-based drinks (e.g., malted milk, hot chocolate, eggnogs, cocoa, infant formulas, and (n = 125) meal-replacement drinks) with fat equivalent to that of whole milk; dairy desserts (e.g., ice cream, frozen yogurt, ice milk, custard, and puddings) having more than 6% fat by weight
Milk-based drinks and desserts—lower fat Milk-based drinks made with reduced-fat or skim milk and dairy desserts having 6% or less fat (n = 136) by weight
Meat and beans
Red meats—regular discretionary solid fat,3 Beef (e.g., battered and fried steak, barbecued short ribs, and pot roast), pork (e.g., fresh ham, regular cost4 (n = 59) loin, and spareribs), lamb (e.g., roast), game meats, and jerky—all with more than the median amount of discretionary solid fat
Red meats—regular discretionary solid fat, Pork (e.g., skin, ground, chop, roast, cutlet, and bacon), beef (e.g., brisket, short ribs, neck low cost4 (n = 61) bones, regular ground beef, and corned beef), lamb (e.g., ground or chop), and organ meats—all with more than the median amount of discretionary solid fat
Red meats—low discretionary solid fat, Lean beef (e.g., steak, veal, and oxtail), lean only pork (e.g., roast, steak, fresh ham, and loin), regular cost (n = 62) lamb (e.g., ribs and loin chop), and game meats—all with the median amount of discretionary solid fat or less
Red meats—low discretionary solid fat, Lean pork (e.g., lean spareribs and smoked or cured roast), lean only beef (e.g., brisket), low cost (n = 74) lamb (e.g., shoulder chop), and game meats—all with the median amount of discretionary solid fat or less
Poultry—regular discretionary solid fat, Coated and fried poultry (e.g., breast, leg, thigh, and drumstick) purchased without skin—all regular cost (n = 50) with more than the median amount of discretionary solid fat
Poultry—regular discretionary solid fat, Coated and fried dark meat (e.g., wing, thigh, and drumstick) purchased with skin; nuggets; and low cost (n = 42) organ meats of chicken, turkey, and game birds purchased with skin—all with more than the median amount of discretionary solid fat
Poultry—low discretionary solid fat, Roasted or broiled poultry (e.g., breast, thigh, and drumstick) purchased without skin—all with regular cost (n = 54) the median amount of discretionary solid fat or less
Poultry—low discretionary solid fat, Smoked or roasted white and dark meat mixture or dark meat (e.g., thigh and drumstick) low cost (n = 156) purchased with skin (but skin not consumed); turkey and game birds purchased with skin (but skin not consumed); and canned chicken soups—all with the median amount of discretionary solid fat or less
3Discretionary solid fat in meats is the fat that is solid at room temperature and is the excess fat from (1) the meat and beans group (including meats,
poultry, fish, eggs, nuts, and seeds) beyond amounts that would be consumed if only the lowest fat forms were eaten and (2) solid fats added to these
foods in preparation or at the table.
4The top 66.66 percent of foods were placed in the regular-cost category; the bottom 33.33 percent of foods, in terms of cost, were placed in the lowest cost category.
Note: n refers to number of food codes in the food category.
Fish—regular discretionary solid fat, Fish, pan-fried or baked with solid fat (e.g., fresh tuna, swordfish, trout, salmon, ocean perch, regular cost (n = 60) and porgy) and battered and fried shellfish (e.g., scallops, oyster, shrimp, and crab)—all with more than the median amount of discretionary solid fat
Fish—regular discretionary solid fat, Fish sticks or other fried and battered fish (e.g., mullet, smelt, haddock, herring, and catfish)—all low cost (n = 54) with more than the median amount of discretionary solid fat
Fish—low discretionary solid fat, Broiled, steamed, or smoked fresh fish (e.g., tuna, salmon) and fresh shellfish (e.g., crab and regular cost (n = 37) clams)—all with the median amount of discretionary solid fat or less
Fish—low discretionary solid fat, Canned fish (e.g., tuna, sardines, and herring), canned shellfish (e.g., shrimp), and canned low cost (n = 54) seafood-based soups and chowders—all with the median amount of discretionary solid fat or less
Lunch meats, sausages, and bacon—regular fat Sausages, salami, frankfurters, bologna, sliced ham, bacon, and pastrami (n = 55)
Lunch meats, sausages, and bacon—lowfat Sausages, salami, frankfurters, bologna, sliced ham, bacon, and pastrami containing 25% less fat (n = 41) than regular fat form
Eggs and egg mixtures (n = 69) Fresh, frozen, and dried eggs; egg substitutes; meringues; and egg mixtures
Meat, poultry, and fish mixtures— Meat, poultry, and fish with grains or vegetables with more than the median amount of regular discretionary solid fat (n = 345) discretionary solid fat
Meat, poultry, and fish mixtures— Meat, poultry, and fish with grains or vegetables with the median amount of discretionary solid low discretionary solid fat (n = 355) fat or less
Dry beans, peas, lentil dishes, and mixtures Black, red, pinto, lima, white, mung, and kidney beans and all types of peas—all with or without (n = 113) other foods; soybean products (e.g., miso, tofu, and soybean-based meat substitutes)
Nuts and seeds (n = 74) Nuts, peanut butter and other nut butters, nut mixtures, carob, and seeds (e.g., sunflower, sesame, and pumpkin)
Other foods
Fats, oils, salad dressings, sauces, and condiments Butter, margarine, vegetable oils (e.g., corn, olive, and sunflower), butter blends, salad oils, (n = 188) lard, shortenings, all salad dressings, mayonnaise, pickles, relishes, salsa, soy sauce, catsup, tomato paste, and gravies and sauces
Coffee and tea (n = 81) Instant, ground, and fluid coffees and teas with or without caffeine and with or without sugar or sweeteners
Fruit drinks, soft drinks, and ades—regular calorie Fruit drinks, cola- and pepper-type soft drinks, ginger ale, root beer, fruit punches, ades (e.g., (n = 89) lemonades and limeades), and other sodas containing sugar Fruit drinks, soft drinks, and ades—low calorie Sugar-free or low-sugar drinks such as cola- and pepper-type soft drinks, ginger ale, root beer, (n = 35) fruit-flavored drinks, fruit punches, ades, and other sodas
Sugars and sweets (n = 215) All types of sugars, sweeteners, and syrups (e.g., honey, jams, jellies, marmalades, preserves, icings, gelatin desserts, marshmallow, and fudge); all types of candies and chocolates; and chewing gum
Note: n refers to number of food codes in the food category.
Now, you are asking yourself, what is in these hypothetical food baskets? Basically a selection of the foods listed above. Just an observation, there are food items listed that we, as a family, have never, ever, in the whole history of the world, ever purchased.
More later.
Just in case you are wondering, here is the link to the study:
http://www.cnpp.usda.gov/USDAFoodCost-Home.htm
The other three plans are more expensive. The Low-cost plan would have the following four costs per week: $101.80, $105.70, $153.10 and $179.70. The Moderate Cost Plan's cost per week: $125.10, $130,60, $188.20 and $223.40. The last one, the Liberal Plan's cost per week is: $150.40, $163.10, $233.00 and $271.80.
Spending with the Liberal Plan jumps to $14, 133.60 per year in food costs. The plans are based on the purchase of a hypothetical food basket which is determined by determining the average consumption of each of the USDA's food categories, the average price of each of the categories and nutrient profile and MyPyramid Equivalents Profile of each of the food categories.
Now what are these categories? The list is long, but here it is:
Table 1. Food categories and examples of foods in each category, Thrifty Food Plan, 2006
Food category Examples of foods
Grains
Breads, yeast and quick—whole grain (n = 38) Whole wheat, multigrain, or pumpernickel breads, rolls, bagels, scones, English muffins, biscuits, tortillas, and pancakes—all with 50% or more of ounce equivalents1 from whole grain
Breads, yeast and quick—non-whole grain (n = 271) White, French, potato, bran, or rye breads and rolls; muffins, English muffins, bagels, waffles, corn tortillas, taco shells, cornbread, and pancakes—all with less than 50% of ounce equivalents from whole grain
Breakfast cereal—whole grain, regular calories2 Cooked cereals (e.g., oatmeal and bulgur) with sugars, fat, and whole milk or 2% milk added; (n = 74) sweetened ready-to-eat cereals (e.g., frosted wheats and granola)—all with 50% or more of ounce equivalents from whole grain
Breakfast cereal—whole grain, low calories2 Cooked cereals (e.g., oatmeal, bulgur, and buckwheat groats) without added sugars or fat; (n = 54) nonsweetened ready-to-eat cereals (e.g., shredded wheat and mueslix)—all with 50% or more of ounce equivalents from whole grain
Breakfast cereal—non-whole grain (n = 214) Cooked cereal (e.g., cream of wheat, grits, and oat bran); sweetened or nonsweetened readyto-eat cereals (e.g., frosted cornflakes and puffed rice)—all with less than 50% of ounce equivalents from whole grain
Rice and pasta—whole grain (n = 15) Brown rice, wild rice, whole wheat pasta (e.g., macaroni, spaghetti, and noodles)—all with 50% or more of ounce equivalents from whole grain
Rice and pasta—non-whole grain (n = 48) Long or short white rice, sweet rice, rice noodles and pasta (e.g., macaroni, spaghetti, and noodles)—all with less than 50% of ounce equivalents from whole grain
Cakes, pies, and other sweet bakery Oatmeal cookies, granola cookies, whole wheat doughnuts, granola bars, and graham crackers—products—whole grain (n = 20) all with 50% or more of ounce equivalents from whole grain
Cakes, pies, and other sweet bakery Pies, cookies, pastries, doughnuts, shortbread; all cakes (e.g., white, yellow, shortcake, sponge, products—non-whole grain (n = 425) pound, and angel food); croissants; and sweet rolls—all with less than 50% of ounce equivalents from whole grain
Grain-based snacks—whole grain (n = 30) Popcorn, salty snacks, crackers, multigrain pretzels, and puffed wheat cakes—all with 50% or more of ounce equivalents from whole grain
Grain-based snacks—non-whole grain (n = 58) Crackers (e.g., soda, oyster, cheese, and rice); hard or soft pretzels; and salty snacks (e.g., tortilla chips)—all with less than 50% of ounce equivalents from whole grain
Grain mixtures—regular fat (n = 229) Foods such as tacos, burritos, enchiladas, pizzas, egg rolls, and pasta and rice with meat where grain is major ingredient and containing 6% or more fat by weight
Grain mixtures—lowfat (n = 140) Foods such as rice and pasta with vegetables and/or beans, noodle or rice soups with vegetables and/or meat, and garden rolls where grain is major ingredient and containing less than 6% fat by weight
Vegetables and fruits
Potato products—regular fat (n = 34) French-fried potatoes, potato chips, hash browns, potato puffs, potato patty; and potato salads and mashed potatoes with added fat, eggs, or cheese
Potato products—lowfat (n = 60) Boiled, baked, scalloped, mashed, and stuffed potatoes; and potato salad, German style
Dark-green vegetables—added fat (n = 34) All dark-green vegetables such as broccoli, spinach, chard, collard greens, mustard greens, and Dark-green vegetables—no added fat (n = 21) kale—with or without fat added
Orange vegetables—added fat (n = 28) All orange vegetables such as carrots, pumpkin, winter squash, and sweet potatoes—with or Orange vegetables—no added fat (n = 28) without fat added
Tomatoes—added fat (n = 32) Tomato, tomato sauce, tomato puree, tomato paste, tomato soup, and tomato juice—with or Tomatoes—no added fat (n = 37) without fat added
Other vegetables—added fat (n = 136) All other vegetables such as green beans, beets, cabbage, cauliflower, corn, eggplant, green peas,
Other vegetables—no added fat (n = 163) iceberg lettuce, bell pepper, snow peas, turnip, and Brussels sprouts—with or without fat added
Mixed vegetables—added fat (n = 101) Foods such as stuffed vegetables, creamed peas and carrots, batter-dipped fried vegetables, and
Mixed vegetables—no added fat (n = 43) vegetable stir-fry where vegetables are the primary ingredient—with or without fat added
1The following each counts as 1 ounce-equivalent (1 serving) of grains: 1/2 cup cooked rice, pasta, or cooked cereal; 1 ounce dry pasta or rice; 1 slice of
bread; 1 small muffin (1 oz); 1 cup ready-to-eat cereal flakes.
2In this context, “calories” refers to total calories from discretionary solid fat and added sugars in the product. Discretionary solid fat in cereals is the fat that is solid at room temperature and is added to the cereals during processing or at the table.
Note: n refers to number of food codes in the food category.
Citrus fruits, melons, and berries (n = 62) Oranges, grapefruits, limes, lemons, and tangelos; melons (e.g.,watermelon, cantaloupe, and honeydew); berries (e.g., strawberries, blueberries, cranberries, raspberries, and blackberries)
Citrus fruit, melon, and berry juices (n = 38) 100% fruit juices made from citrus fruits, melons, and berries
Fruits other than citrus fruits, melons, and berries Fruits such as bananas, apples, cherries, peaches, pears, grapes, plums, papayas, and apricots (n = 185)
Fruit juices other than citrus, melon, and berry 100% fruit juices made from fruits other than citrus fruits, melons, and berries (n = 70)
Milk products
Milk and milk-based foods—regular fat (n = 56) All fluid, evaporated, condensed, and dry whole milk; regular yogurt; all fluid creams; cream substitutes; cream cheese; and dips
Milk and milk-based foods—lower fat (n = 38) All fluid, evaporated, and dry reduced-fat and skim milks; buttermilk; and lowfat or nonfat yogurts
Cheese (n = 98) Natural, processed, and imitation cheeses; cottage cheese; cheese spreads; cheese dips; and cheese soups
Milk-based drinks and desserts—regular fat Milk-based drinks (e.g., malted milk, hot chocolate, eggnogs, cocoa, infant formulas, and (n = 125) meal-replacement drinks) with fat equivalent to that of whole milk; dairy desserts (e.g., ice cream, frozen yogurt, ice milk, custard, and puddings) having more than 6% fat by weight
Milk-based drinks and desserts—lower fat Milk-based drinks made with reduced-fat or skim milk and dairy desserts having 6% or less fat (n = 136) by weight
Meat and beans
Red meats—regular discretionary solid fat,3 Beef (e.g., battered and fried steak, barbecued short ribs, and pot roast), pork (e.g., fresh ham, regular cost4 (n = 59) loin, and spareribs), lamb (e.g., roast), game meats, and jerky—all with more than the median amount of discretionary solid fat
Red meats—regular discretionary solid fat, Pork (e.g., skin, ground, chop, roast, cutlet, and bacon), beef (e.g., brisket, short ribs, neck low cost4 (n = 61) bones, regular ground beef, and corned beef), lamb (e.g., ground or chop), and organ meats—all with more than the median amount of discretionary solid fat
Red meats—low discretionary solid fat, Lean beef (e.g., steak, veal, and oxtail), lean only pork (e.g., roast, steak, fresh ham, and loin), regular cost (n = 62) lamb (e.g., ribs and loin chop), and game meats—all with the median amount of discretionary solid fat or less
Red meats—low discretionary solid fat, Lean pork (e.g., lean spareribs and smoked or cured roast), lean only beef (e.g., brisket), low cost (n = 74) lamb (e.g., shoulder chop), and game meats—all with the median amount of discretionary solid fat or less
Poultry—regular discretionary solid fat, Coated and fried poultry (e.g., breast, leg, thigh, and drumstick) purchased without skin—all regular cost (n = 50) with more than the median amount of discretionary solid fat
Poultry—regular discretionary solid fat, Coated and fried dark meat (e.g., wing, thigh, and drumstick) purchased with skin; nuggets; and low cost (n = 42) organ meats of chicken, turkey, and game birds purchased with skin—all with more than the median amount of discretionary solid fat
Poultry—low discretionary solid fat, Roasted or broiled poultry (e.g., breast, thigh, and drumstick) purchased without skin—all with regular cost (n = 54) the median amount of discretionary solid fat or less
Poultry—low discretionary solid fat, Smoked or roasted white and dark meat mixture or dark meat (e.g., thigh and drumstick) low cost (n = 156) purchased with skin (but skin not consumed); turkey and game birds purchased with skin (but skin not consumed); and canned chicken soups—all with the median amount of discretionary solid fat or less
3Discretionary solid fat in meats is the fat that is solid at room temperature and is the excess fat from (1) the meat and beans group (including meats,
poultry, fish, eggs, nuts, and seeds) beyond amounts that would be consumed if only the lowest fat forms were eaten and (2) solid fats added to these
foods in preparation or at the table.
4The top 66.66 percent of foods were placed in the regular-cost category; the bottom 33.33 percent of foods, in terms of cost, were placed in the lowest cost category.
Note: n refers to number of food codes in the food category.
Fish—regular discretionary solid fat, Fish, pan-fried or baked with solid fat (e.g., fresh tuna, swordfish, trout, salmon, ocean perch, regular cost (n = 60) and porgy) and battered and fried shellfish (e.g., scallops, oyster, shrimp, and crab)—all with more than the median amount of discretionary solid fat
Fish—regular discretionary solid fat, Fish sticks or other fried and battered fish (e.g., mullet, smelt, haddock, herring, and catfish)—all low cost (n = 54) with more than the median amount of discretionary solid fat
Fish—low discretionary solid fat, Broiled, steamed, or smoked fresh fish (e.g., tuna, salmon) and fresh shellfish (e.g., crab and regular cost (n = 37) clams)—all with the median amount of discretionary solid fat or less
Fish—low discretionary solid fat, Canned fish (e.g., tuna, sardines, and herring), canned shellfish (e.g., shrimp), and canned low cost (n = 54) seafood-based soups and chowders—all with the median amount of discretionary solid fat or less
Lunch meats, sausages, and bacon—regular fat Sausages, salami, frankfurters, bologna, sliced ham, bacon, and pastrami (n = 55)
Lunch meats, sausages, and bacon—lowfat Sausages, salami, frankfurters, bologna, sliced ham, bacon, and pastrami containing 25% less fat (n = 41) than regular fat form
Eggs and egg mixtures (n = 69) Fresh, frozen, and dried eggs; egg substitutes; meringues; and egg mixtures
Meat, poultry, and fish mixtures— Meat, poultry, and fish with grains or vegetables with more than the median amount of regular discretionary solid fat (n = 345) discretionary solid fat
Meat, poultry, and fish mixtures— Meat, poultry, and fish with grains or vegetables with the median amount of discretionary solid low discretionary solid fat (n = 355) fat or less
Dry beans, peas, lentil dishes, and mixtures Black, red, pinto, lima, white, mung, and kidney beans and all types of peas—all with or without (n = 113) other foods; soybean products (e.g., miso, tofu, and soybean-based meat substitutes)
Nuts and seeds (n = 74) Nuts, peanut butter and other nut butters, nut mixtures, carob, and seeds (e.g., sunflower, sesame, and pumpkin)
Other foods
Fats, oils, salad dressings, sauces, and condiments Butter, margarine, vegetable oils (e.g., corn, olive, and sunflower), butter blends, salad oils, (n = 188) lard, shortenings, all salad dressings, mayonnaise, pickles, relishes, salsa, soy sauce, catsup, tomato paste, and gravies and sauces
Coffee and tea (n = 81) Instant, ground, and fluid coffees and teas with or without caffeine and with or without sugar or sweeteners
Fruit drinks, soft drinks, and ades—regular calorie Fruit drinks, cola- and pepper-type soft drinks, ginger ale, root beer, fruit punches, ades (e.g., (n = 89) lemonades and limeades), and other sodas containing sugar Fruit drinks, soft drinks, and ades—low calorie Sugar-free or low-sugar drinks such as cola- and pepper-type soft drinks, ginger ale, root beer, (n = 35) fruit-flavored drinks, fruit punches, ades, and other sodas
Sugars and sweets (n = 215) All types of sugars, sweeteners, and syrups (e.g., honey, jams, jellies, marmalades, preserves, icings, gelatin desserts, marshmallow, and fudge); all types of candies and chocolates; and chewing gum
Note: n refers to number of food codes in the food category.
Now, you are asking yourself, what is in these hypothetical food baskets? Basically a selection of the foods listed above. Just an observation, there are food items listed that we, as a family, have never, ever, in the whole history of the world, ever purchased.
More later.
Tuesday, September 30, 2008
More thoughts on the cost of food
One excuse for not having any stored food on hand, is the cost. If you feel like you are struggling to provide food for your family, you are not likely to be receptive to the idea of buying extra food to begin a storage program. It is helpful to get a realistic idea of the true cost of food in America. The United States Department of Agriculture, Economic Research Service is a great source for information on food consumption in the United States. I will refer to a the USDA Website:
Americans spent over $583 billion dollars on food in 2007. Although this figure is stagering, the percentage Americans spent on food as a share of their disposable income has dropped from over 20% in 1929 to 9.8 percent (including food purchased away from home) in 2007. Americans annually spent $2,242 per capita on food in 2007, including, once again, food purchased away from home. In other countries for the same year, people spent as much as 50% of their disposable income on food. Some countries, such as India, have an annual per capita spending on food of only $174.
I admit, it is difficult to believe that Americans only spend about $2,200 a year per capita on food when you are following someone pushing two huge carts of food out of Walmart or Costco,,, , but from these figures, it appears that as of 2007 the daily average food cost per person, has now risen to just over $6. Americans have a long way to go before they can be considered poor, compared to other places in the world.
However, the pattern of food spending varies with income:
Food expenditures vary by income level
First number is for Income below 130 percent of the poverty line
The second number is for Income between 130 and 150% of the poverty line
At-home foods
Per person weekly
spending, 2003 dollars
Bread and baked goods 2.22 ---- 2.67
Dairy foods 2.42 ---- 3.03
Fruit 2.06 ---- 2.67
Beef 1.66 ---- 1.98
Frozen prepared foods 0.90 ---- 1.03
Vegetables 1.99 ---- 2.39
Notes: In fiscal year 2003, the poverty line was $18,660 per year for a
family of four with two related children under age 18.
All differences in expenditures between the two income groups are
statistically significant at the 10-percent level.
Source: Analysis by USDA, Economic Research Service, of the Bureau
of Labor Statistics’ 2003 Consumer Expenditure Survey.
A comprehensive study entitled "Household Food Security in the United States, 2002" examines the prevalence of hunger in the United States.
See http://www.ers.usda.gov/publications/fanrr35/
To get an idea of what the U.S. Government considers to be the standard for food costs, you need to understand the USDA's Thrifty Food Plan. To quote:
"The Thrifty Food Plan—developed by USDA—serves as a national standard for a nutritious diet at low cost. It represents a set of “market baskets” of food that people of specific age and gender could consume at home to maintain a healthful diet that meets current dietary standards, taking into account the food consumption patterns of U.S. households. The cost of the meal plan for each age/gender category is calculated based on average national food prices adjusted for inflation. The cost of the market basket for a household is further adjusted by household size to account for economies of scale."
"For example, the weekly Thrifty Food Plan cost for a household composed of a married couple with no children, ages 29 (husband) and 30 (wife), is given by adding the individual Thrifty Food
Plan costs for the husband ($30.50) and wife ($27.50) and adjusting the total upward by 10 percent. The adjusted total ($63.80) represents the cost of the Thrifty Food Plan for this type of household. "
The cost for the Thrifty Food Plan for a family of two adults and two young children is $92.70 per week.
More later.
However, the pattern of food spending varies with income:
Food expenditures vary by income level
First number is for Income below 130 percent of the poverty line
The second number is for Income between 130 and 150% of the poverty line
At-home foods
Per person weekly
spending, 2003 dollars
Bread and baked goods 2.22 ---- 2.67
Dairy foods 2.42 ---- 3.03
Fruit 2.06 ---- 2.67
Beef 1.66 ---- 1.98
Frozen prepared foods 0.90 ---- 1.03
Vegetables 1.99 ---- 2.39
Notes: In fiscal year 2003, the poverty line was $18,660 per year for a
family of four with two related children under age 18.
All differences in expenditures between the two income groups are
statistically significant at the 10-percent level.
Source: Analysis by USDA, Economic Research Service, of the Bureau
of Labor Statistics’ 2003 Consumer Expenditure Survey.
A comprehensive study entitled "Household Food Security in the United States, 2002" examines the prevalence of hunger in the United States.
See http://www.ers.usda.gov/publications/fanrr35/
To get an idea of what the U.S. Government considers to be the standard for food costs, you need to understand the USDA's Thrifty Food Plan. To quote:
"The Thrifty Food Plan—developed by USDA—serves as a national standard for a nutritious diet at low cost. It represents a set of “market baskets” of food that people of specific age and gender could consume at home to maintain a healthful diet that meets current dietary standards, taking into account the food consumption patterns of U.S. households. The cost of the meal plan for each age/gender category is calculated based on average national food prices adjusted for inflation. The cost of the market basket for a household is further adjusted by household size to account for economies of scale."
"For example, the weekly Thrifty Food Plan cost for a household composed of a married couple with no children, ages 29 (husband) and 30 (wife), is given by adding the individual Thrifty Food
Plan costs for the husband ($30.50) and wife ($27.50) and adjusting the total upward by 10 percent. The adjusted total ($63.80) represents the cost of the Thrifty Food Plan for this type of household. "
The cost for the Thrifty Food Plan for a family of two adults and two young children is $92.70 per week.
More later.
Why should we have a food storage program? The challenge of food prices
The U.S. Department of Labor's most recent report on the Consumer Price Index shows that food and beverage prices are rising at an annual rate of 9.1 percent based on the three months ending August, 2008. The Special Index for food shows an annualized increase of 9.6 percent.
See http://www.bls.gov/news.release/cpi.nr0.htm
Another report from the U.S. Department of Agriculture, Economic Research Service predicts that food-at-home prices, led by eggs, dairy, and poultry prices, increased 4.2 per cent in 2007. The same report notes that among 154 forms of fruits and vegetables priced using ACNeilsen Homescan data, more than half were estimated to cost 25 cents or less per serving. Consumers can meet the recommendation of three servings of fruits and four servings of vegetables daily for 64 cents.
See http://www.ers.usda.gov/Briefing/CPIFoodAndExpenditures/
"According to the Homescan data, consumers spent $223 billion on food at retail stores in 1999. Expenditures on fruits and vegetables accounted for 7.6 percent and 7.7 percent of this total. Fresh fruits and vegetables accounted for more than half of all expenditures on fruits and vegetables, while canned vegetables and fruit juices accounted for almost one-third of expenditures. In comparison, consumers spent 9 percent on bakery products, 8 percent on red meat, 6 percent on carbonated soft drinks, 4.3 percent on cheese, 3.4 percent on breakfast cereals, and 3.2 percent on candy (table 2). We ranked the 27 fruits and 30 vegetables in our sample according to quantity purchased, expenditures, and total servings purchased, regardless of the form in which they were purchased (fresh, canned, frozen, or juice). Again, totals include only the processed products that are plain, unflavored, and/or unsweetened (to the extent possible). Among the 27 fruits, Americans spent the most money on oranges, bought the most pounds of bananas, and ate the most servings of apples (table 3). These three fruits were the top three in quantity and servings, and among the top four in expenditures (consumers spent more on grapes than apples). For most fruits (except for watermelon and plums), quantity, cost, and servings are closely related. Among the 30 vegetables, potatoes accounted for the largest share of expenditures, pounds purchased, and servings eaten (table 4). Potato totals were more than three times as many pounds purchased, and nearly four times as many servings (but only 15 percent more dollars) as tomatoes, the second most popular vegetable in all three categories."
See http://www.ers.usda.gov/publications/aib790/aib790c.pdf
Figure it out, in the U.S. in 1999, we spent over $7 billion on candy! The same study shows that in 1999 the cost of nutritional food was 64 cents per day when the average American was spending $5.50 per day on food. Fulfilling all of a person's nutritional needs could be accomplished for less than a dollar. Although there has been some inflation since that time, the nutritious food for a family of four would cost far less than $120 per month.
I would suspect that most people would not believe these figures.
More later.
See http://www.bls.gov/news.release/cpi.nr0.htm
Another report from the U.S. Department of Agriculture, Economic Research Service predicts that food-at-home prices, led by eggs, dairy, and poultry prices, increased 4.2 per cent in 2007. The same report notes that among 154 forms of fruits and vegetables priced using ACNeilsen Homescan data, more than half were estimated to cost 25 cents or less per serving. Consumers can meet the recommendation of three servings of fruits and four servings of vegetables daily for 64 cents.
See http://www.ers.usda.gov/Briefing/CPIFoodAndExpenditures/
"According to the Homescan data, consumers spent $223 billion on food at retail stores in 1999. Expenditures on fruits and vegetables accounted for 7.6 percent and 7.7 percent of this total. Fresh fruits and vegetables accounted for more than half of all expenditures on fruits and vegetables, while canned vegetables and fruit juices accounted for almost one-third of expenditures. In comparison, consumers spent 9 percent on bakery products, 8 percent on red meat, 6 percent on carbonated soft drinks, 4.3 percent on cheese, 3.4 percent on breakfast cereals, and 3.2 percent on candy (table 2). We ranked the 27 fruits and 30 vegetables in our sample according to quantity purchased, expenditures, and total servings purchased, regardless of the form in which they were purchased (fresh, canned, frozen, or juice). Again, totals include only the processed products that are plain, unflavored, and/or unsweetened (to the extent possible). Among the 27 fruits, Americans spent the most money on oranges, bought the most pounds of bananas, and ate the most servings of apples (table 3). These three fruits were the top three in quantity and servings, and among the top four in expenditures (consumers spent more on grapes than apples). For most fruits (except for watermelon and plums), quantity, cost, and servings are closely related. Among the 30 vegetables, potatoes accounted for the largest share of expenditures, pounds purchased, and servings eaten (table 4). Potato totals were more than three times as many pounds purchased, and nearly four times as many servings (but only 15 percent more dollars) as tomatoes, the second most popular vegetable in all three categories."
See http://www.ers.usda.gov/publications/aib790/aib790c.pdf
Figure it out, in the U.S. in 1999, we spent over $7 billion on candy! The same study shows that in 1999 the cost of nutritional food was 64 cents per day when the average American was spending $5.50 per day on food. Fulfilling all of a person's nutritional needs could be accomplished for less than a dollar. Although there has been some inflation since that time, the nutritious food for a family of four would cost far less than $120 per month.
I would suspect that most people would not believe these figures.
More later.
Monday, September 29, 2008
Let's Focus on Food
One of the most insidious problems resulting from the current economic crisis is the possibility that many more families will go hungry. Rather than participate in a polemic on the cause of the crisis, it is important to realize that there are things we can all do to lesson the impact of the crisis on our family. One of the ways, is to have a program of home storage. The Church of Jesus Christ of Latter-day Saints has developed extensive programs and materials that will assist in setting up your own personal or family plan to carry you through hard times.
The Church's First Presidency has stated:
Dear Brothers and Sisters:
Our Heavenly Father created this beautiful earth, with all its abundance,
for our benefit and use. His purpose is to provide for our needs
as we walk in faith and obedience. He has lovingly commanded us to
“prepare every needful thing” (see D&C 109:8) so that, should adversity
come, we may care for ourselves and our neighbors and support bishops
as they care for others.
We encourage Church members worldwide to prepare for adversity
in life by having a basic supply of food and water and some money in
savings.
We ask that you be wise as you store food and water and build your
savings. Do not go to extremes; it is not prudent, for example, to go into
debt to establish your food storage all at once. With careful planning, you
can, over time, establish a home storage supply and a financial reserve.
We realize that some of you may not have financial resources or
space for such storage. Some of you may be prohibited by law from
storing large amounts of food. We encourage you to store as much as
circumstances allow.
May the Lord bless you in your home storage efforts.
The First Presidency
The fact is, you don't have to be a member of the Church to enjoy the benefits of home storage. My family has always made food storage a priority. As a result, we have weathered many hard times and have always had food for our family. We have seven children and sometimes our budget barely covered our house payment. Without a food storage program, there would have been many times that our family would have gone hungry. During the next few weeks, I will discuss some of the practical realities of having an adequate food storage plan. Historically, we have talked about a year's supply of basic necessities. Currently, the Church encourages its members to have a three month's supply of food that is part of your normal, daily diet; also to store drinking water. Provident home storage also includes a plan to save a financial reserve and, where permitted, have longer shelf-life storage such as wheat, rice and beans.
One of the first challenges faced by those living in today's world is the loss of skills associated with food production, storage and preparation. Highly prepared foods usually have a very short shelf-life. Some foods, like milk, vegetables and fruits, have a shelf-life limited to a matter of days. Other prepared foods may last longer, such as canned goods and dried foods, like pasta, but they may still deteriorate over time. In any food storage situation it is very important to have a plan. It only makes sense to buy foods when they are in stock and cheaper and then use the foods over a period of time. Because of the loss of basic skills concerning food, most people rely heavily on prepared food. In my work experience, I have seen my co-workers spend considerable time and even more money buying expensive prepared foods each day for lunch. Now for more than forty years, I have been eating a simple lunch of a sandwich and a piece of fruit and occasionally, a cookie. It is truly amazing how much money can be saved from this simple habit.
More later.
The Church's First Presidency has stated:
Dear Brothers and Sisters:
Our Heavenly Father created this beautiful earth, with all its abundance,
for our benefit and use. His purpose is to provide for our needs
as we walk in faith and obedience. He has lovingly commanded us to
“prepare every needful thing” (see D&C 109:8) so that, should adversity
come, we may care for ourselves and our neighbors and support bishops
as they care for others.
We encourage Church members worldwide to prepare for adversity
in life by having a basic supply of food and water and some money in
savings.
We ask that you be wise as you store food and water and build your
savings. Do not go to extremes; it is not prudent, for example, to go into
debt to establish your food storage all at once. With careful planning, you
can, over time, establish a home storage supply and a financial reserve.
We realize that some of you may not have financial resources or
space for such storage. Some of you may be prohibited by law from
storing large amounts of food. We encourage you to store as much as
circumstances allow.
May the Lord bless you in your home storage efforts.
The First Presidency
The fact is, you don't have to be a member of the Church to enjoy the benefits of home storage. My family has always made food storage a priority. As a result, we have weathered many hard times and have always had food for our family. We have seven children and sometimes our budget barely covered our house payment. Without a food storage program, there would have been many times that our family would have gone hungry. During the next few weeks, I will discuss some of the practical realities of having an adequate food storage plan. Historically, we have talked about a year's supply of basic necessities. Currently, the Church encourages its members to have a three month's supply of food that is part of your normal, daily diet; also to store drinking water. Provident home storage also includes a plan to save a financial reserve and, where permitted, have longer shelf-life storage such as wheat, rice and beans.
One of the first challenges faced by those living in today's world is the loss of skills associated with food production, storage and preparation. Highly prepared foods usually have a very short shelf-life. Some foods, like milk, vegetables and fruits, have a shelf-life limited to a matter of days. Other prepared foods may last longer, such as canned goods and dried foods, like pasta, but they may still deteriorate over time. In any food storage situation it is very important to have a plan. It only makes sense to buy foods when they are in stock and cheaper and then use the foods over a period of time. Because of the loss of basic skills concerning food, most people rely heavily on prepared food. In my work experience, I have seen my co-workers spend considerable time and even more money buying expensive prepared foods each day for lunch. Now for more than forty years, I have been eating a simple lunch of a sandwich and a piece of fruit and occasionally, a cookie. It is truly amazing how much money can be saved from this simple habit.
More later.
Sunday, September 28, 2008
Four Red Flags
Since there are many more scams than these 10 common types we discussed, we have four “red flags” or things that should increase your suspicion and make you aware of a possible scam. These four warning signs are 1. the solicitor fails to give you or is reluctant to disclose all the terms of the “deal”; 2. you hear the words “good deal” or “free”; 3. the salesperson engages in high-pressure tactics and demands immediate action; and 4. the salesperson promises unrealistic high returns or earnings.
#1. The solicitor fails or is reluctant to give you all the terms of the “deal”
Legitimate businesses will always give you more information than you want concerning their products and services. If you find any resistance at all in producing information about the “deal” then you should become concerned. Federal laws require extensive disclosure especially in the areas of securities regulation and land sales. If you receive any pressure at all to commit yourself before receiving complete information you can assume that you are the victim of a scam. For example, if you have ever purchased stock through a legitimate stockbroker or opened a money market account you know that you’re provided with many documents explaining your investment in detail. You should immediately become alarmed if this detailed information is not available.
Sometime ago, my parents, who are in their 70s, were in the process of purchasing a new home to be constructed. When presented with the purchase documents, my father, who had practiced law for nearly 40 years, began to read the documents. He quickly discovered that the seller, the local real estate developer, was requiring, my father, the purchaser, to assume the construction loan. Normally, the developer borrows the funds for construction that are then repaid when the house is completed. In this case, the developer was attempting to transfer the risk of the construction of a home to my father. Further reading of the documents disclosed that the funds provided by my parents would be used to pay off other lots in the subdivision. Obviously, my father objected to using his credit to finance the developer. When my father called this fact to the attention of the real estate salesperson, she said that she “hated working with attorneys, accountants, and doctors because they read all the documents.” Needless to say, my parents did not purchase the house.
One tactic commonly used in lieu of full disclosure, is to present a pile of documents for signature in a high-pressure environment giving the impression that there is not time to read the documents. This amounts to the same thing as if all of the terms of the deal had not been presented in the first place.
#2. You hear the words “good deal” or “free”
It is almost impossible to pick up a newspaper or magazine without finding an ad with the words “good deal” or “free.” Not every free offer is a scam but the word “free” is certainly overused. In fact, nothing is “free.” There is cost associated with every offer and product. Commonly, the cost of the “free” item is covered by the ever present “shipping and handling charges.” Scam artists use free offers to get the attention of their victims. The simple rule is that if you have to pay‑it isn’t free. Sometimes “free prizes” are given away for advertising purposes or are sponsored by a business. In these cases, someone else is paying for the item.
In a scam, the free item is either never produced or has little or no value. Sometimes, the enticement of the free item is simply a ruse to obtain personal information about the victim, such as credit card numbers or bank account numbers. Occasionally, free offers are used to generate sales leads so that high-pressure salesman can close a sale or engage in other scams.
Other commonly-used phrases include:
“You have won a valuable, free prize.”
“You have been selected for this special offer...”
“As a special added bonus you will receive...”
“There are very few of these special items left.”
“You must make up your mind right away.”
“Hurry, this offer can’t last.”
“This is a special low-risk investment with an extremely high return.”
“You can only receive this special offer by calling this number right now.”
“This investment has a higher return than any other available at this time.”
“We know you won’t want to miss this special offer.”
#3. The salesperson engages in high-pressure tactics and demands immediate action
Good deals sell themselves. There is no room for high-pressure sales tactics in legitimate businesses. Scam artists know that if the victims are allowed time to think things over they will see through the scheme and fail to be victimized. If there isn’t time to consult with friends, relatives or professional advisers then you are probably about become a victim.
#4. The salesperson promises unrealistic high returns or earnings
Every investment has a risk and a rate of return. In most scams, the rate of return is zero. Therefore, the risk is infinite. You are absolutely going to lose your money in a scam. There is no chance that you’ll get a return on your investment. If you are unfamiliar with the investment and have no way of judging the risk or potential return, then you should use extreme caution. For example, if the normal rate of return on a certificate of deposit at local bank were 6%, a promised rate of return of 12% would be unrealistic. Even though 12% interest is not remarkably high, speaking in the context of a certificate of deposit, it is unrealistic. Some friends of mine, were convinced to put $50,000 into a 12% certificate of deposit. The only problem was that the bank was non-existent. They lost all their money. The simple rule here is: “the higher the return‑the higher the risk.” In many scams the promised returns are so high that the victims have to leave commonsense behind to believe that they are possible.
Before paying any money to anyone with the promise of a high return, it is extremely important to investigate thoroughly. Make sure all offers are in writing and that you understand everything. Talk the deal over with an attorney or trusted financial adviser. Think through the consequences of losing all your money. Can you really afford to make the investment? Understand that any financial institution making the same investment would require substantial collateral. Collateral is something of real value used to secure the investment or loan. Financial institutions such as banks take collateral in real estate or valuable personal property. In both cases, the financial institution will require an independent appraisal of the collateral property before investing or making loan. It is also normal practice to require the principals of the business to sign personal guarantees. If any of these elements of the normal investment or loan transaction are absent you should be very wary. It is not unusual for the scam victim to think far enough through the transaction to require collateral but fail to require an appraisal. Collateral in worthless property is worthless.
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