Whenever anybody spends money - they want to know they’re getting their money’s worth. In other words, are they getting ‘value’ in return for their money? What exactly does that mean?

It means that you should understand what you’re paying for. If you’re going to pay more than the item’s worth, you should know why.

For example, you can buy a 5-pound bag of potatoes in the grocery store for $2.50. Why, then, would you spend $2.09 on a few ounces of fries at a fast-food restaurant? ‘Because they taste great!’ you say. That’s one reason, but you could also put some frozen fries in the oven at home. They’d crisp up in about 20 minutes, and you have fries enough for a family of four for about $2.00. So what gives those fast food fries value? Try another answer.

‘Okay. I’ve just finished sports practice. I’ve got to hustle to my music lesson. I’m starving after practice, I don’t have time to go home and grab a sandwich, and I didn’t pack one this morning, so I’ve got nothing to eat. If I don’t get some food soon, I’ll never be able to concentrate during my lesson.’ How’s that?

Closer! You’re saying that you’re really paying for more than a box of skinny spuds. You’re paying for convenience. The right food (something you like) in the right place (on your way to your lesson) when you need it (you’re starving). What good will 5 pounds of raw potatoes do you at this moment?

This is only one example of what people buy and why they buy it. There are many ways to judge value!