Western Cape Education Department

Directorate: Curriculum FET

CONSUMER STUDIES

REVISION
2025 TERM 3
Grade 12

This revision program is designed to assist you in revising the critical content and skills
covered throughout the year. The purpose is to prepare you to understand the key
concepts and to provide you with an opportunity to establish the required standard
and the application of the knowledge necessary to succeed in the NCS
examination.

This revision program covers the following

• General tips for writing Consumer Studies

• Format of the Consumer Studies NSC Question
Paper
• Study checklist per topic
• Examples of higher-order questions per topic
• Subject terminology per topic
 Layout of the external question paper
QUESTION TOPICS MARKS
1 Short questions (All Topics)

Multiple choice questions; Matching Items; One- 40

word Items; Identification items
2 The Consumer 40
3 Food and Nutrition 40
4 Clothing 20
5 Housing and interior 20
6 Entrepreneurship 40
TOTAL 200
TABLE 1: The Consumer Studies Taxonomy of Cognitive Demand Levels for the
Consumer Studies NSC Examinations
Level of cognitive demand Type of cognitive demand Explanation of categorization
Questions which require students:
Level 1 Lower order Remembering
Level 2 Middle order Understanding/Applying
Level 3 Higher order Analysing/Evaluating/Creating
Source: CAPS (DBE, 2011: 62)

Cognitive level and level of Instructional verb Explanation

difficulty
Lower order (30%)
Remembering List, Give, Name Give the answer without any explanation
It is a knowledge-based question.
Middle order (50%)
Understanding Explain Interpret and spell out the meaning of the idea in the
question in your own words.

Discuss Use your own words to examine, analyse and

compare ideas, opinions, or concepts in favour and
against a particular issue/point.

List the main characteristics or give an account of

Describe the idea/concept in the question.
Applying Distinguish Highlight the differences between two or more issues
or ideas.
Higher order (20%)
Analysing, Evaluating and Justify/Validate Present a logical argument to prove or give reasons
Creating for decisions or conclusions.

Analyse critically Examine the idea in detail and show the essence or
structure of the idea.

Predict Anticipate the outcome.

Evaluating Appraise or assess the idea, looking for positive and

negative aspects. You are weighing and giving your
opinion based on the evidence from the text or case
study. A conclusion or final opinion should then be
Creating reached.
To use information or data to develop a projection.
 TABLE 2: EXAMPLES OF QUESTIONS AT LEVEL 1: REMEMBERING

Example 1: Housing and Interior

Give a brief description of what a ‘body corporate’ is.
Discussion:
- Answering the question requires recall of basic information on ‘sectional title’ acquisition
of housing. Candidates describe what a body corporate is.
Memorandum /Marking Guidelines
A. Body Corporate is a:
• Body that controls/administers/and manages the complex
• Group of people/trustees elected by the owners of the units in the complex.
OR
• Professional managing agent appointed by the owners. (2x1) (2)

Example 2: Food and Nutrition

Name THREE nutrients that is needed to prevent anaemia.
Discussion:
- Answering this question requires remembering basic information.
- The question does not require candidates to show understanding by providing any
explanation.
Memorandum/ Marking Guidelines
• iron√
• vitamin B12 √
• folic acid√
• vitamin C√
(any 3) (3x1)

Example 3: Housing and Interior

Recall the meaning of ONE of the following financial costs related to buying a home:
• (a) Transfer costs.
• (b) Bond costs

Discussion:
- Candidates simply recall factual information on one of the two specified financial costs
involved in buying a house.
- The use of the instruction ‘recall the meaning’ suggests that this might be an
‘understanding’ question, but in fact, you do not have to show that you understand the
financial costs, they simply need to provide a definition for one of the two specified.
- The question could as well have been phrased as: State what is meant by one of the
following terms: ‘Transfer costs or Bond costs.
Memorandum /Marking Guidelines
(a)Transfer costs:
• It is tax paid before the new house can be transferred √ into the new owner’s name. √
• The transfer fees depend on the purchase price of the property.
• It is regulated by the government.
• It is done by a conveyance / transfer attorney.
• It is not part of the sale/ purchase price.
These costs include payment of:
1. Transfer fees/conveyance fees.
2. Sundries.
3. Deeds office fee.
4. Provision for rates.
5. Value-added tax/tax/government tax/ payment to SARS.
6. Valuation fees/inspection fees.
7. Initiation fees.
8. Administration fees. (any 6) (6

OR
(b) Bond costs:
• Fees charged by the attorney for drawing up documents√ and the registration of the
bond.
• It is an initiation fee payable to the bank to grant the loan√ and depends on the size of
the home loan.
• Normally 10% of the purchase price.
These costs include payment of:
1. Bond fees/ bond instalment / bond account.
2. Valuation / Inspection fees.
3. Sundries and value-added tax.
4. Bank initiation fees.
5. Bank administration fee
6. Interest (interim rates).
7. Bond insurance.
8. Homeowner’s insurance. (any 6) (6)

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 TABLE 3: EXAMPLES OF QUESTIONS AT LEVEL 2: UNDERSTANDING

Example 1: Housing and Interior

Compare ‘full title ownership’ and ‘sectional title ownership’ with regard to the following
aspects:
1. Privacy
2. Security
Tabulate your answer.

Discussion:
This question requires recalling and understanding of ‘types of ownership for housing’ which is
covered in the CAPS with specific reference to ‘privacy and security’ in relation to two types of
home ownership. To compare the two aspects of ‘full title ownership’ and ‘sectional title
ownership’, candidates cannot simply provide definitions for the various terms (which would be
a ‘remembering’ task). To tabulate similarities and differences with regard to privacy and
security, candidates need to re-organise information or facts which have been learnt in a
different way or form from what was presented in class.
Memorandum /Marking Guidelines

Full-title ownership Sectional title ownership

Privacy There is much more privacy as Less privacy- garden areas are
you are not in direct contact with shared/ houses are connected/
neighbours as you have your own closer to one another/less space/
house on your own plot. nearer to neighbours/noisy
because of common areas.
Security Less secure/stands alone on a More secure/Body corporate is
plot/ responsible for security/Unit is in a
Easy access for housebreaking/ complex/Gates with access
Neighbours cannot see what control/Security guards/neighbours
happening/ are nearby.
Responsible to provide own
security/Costier/
Use as security for bank loan.

NOTE: Minus 1 mark if the answer is not tabulated.

Example 2: Food and Nutrition

State THREE differences between the nutritional related conditions, atherosclerosis and high
blood pressure. Tabulate your answer.
Discussion:
- To answer this question candidates, need to recall information and have a sound
understanding of ’nutritional related conditions’.
- Three differences must be stated between atherosclerosis and high blood pressure.
- The use of the instruction ‘state’ suggests that this might be a ‘remembering’ question,
but in fact, they can only identify and tabulate the differences if they have a clear
understanding of the key aspects that distinguishes the one topic from the other.

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Memorandum /Marking Guideline

Atherosclerosis High blood pressure

• Disease of the blood vessels (arteries) • Disease of the blood vessels
• Build up of cholesterol and other (arteries)
substances form plaque on the inner • Force of the bood pushing against
walls artery walls is consistently high.
• Narrowing and hardening of the • Causing the heart muscle to thicken
arteries • and arteries to stretch lose elasticity
• Results in blockage of blood flow and become rigid.
• Blood and oxygen supply are cut off to • Increases the workload of the heart
heart muscle making it weak
• Leading to a heart attack or stroke • Leading to heart attack or stroke

Any relevant 3 (3 x 2) (6)

NOTE: Minus 1 mark if the answer is not tabulated

Example 3: Housing and Interior

Explain why it is important to sign an employment contract.
Discussion:
- The ‘action verb’ ‘explain’ suggests that this question is an understanding question.
- To explain why it is important to sign an employment contract, candidates need to
select the relevant information from all the information on employment contracts that
they have learnt. Formulating a response to the question requires a degree of
interpretation of the facts.

Memorandum /Marking Guideline

It is important to sign an employment contract to:
• Protect both employer and employee in terms of contractual responsibilities√ and
conditions of employment (awareness). √ (2x1)

Example 4: Food and Nutrition

State TWO differences between gastro-enteritis and e. coli infection

Discussion:
- The task involves basic factual recall of information related to what a ‘gastro-enteritis’
and ‘e. coli infection’ is.
- However, identifying two differences also requires understanding of the key aspects of
each type of food-borne disease that distinguishes one from the other. Thus, this question
is classified as a Level 2 ‘understanding’ question.

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Memorandum /Marking Guideline
E. coli infection Gastro enteritis
Bacteria present in the intestines of people An inflammation that irritates the stomach
and animals that can cause disease. and or intestines.
Can be transmitted via contaminated Can be transmitted via food, contaminated
food/water or person-to-person contact. water, contact with infected person,
contaminated utensils.
Incubation period is 3-7 days after exposure. Incubation period is a few hours to a few
days.
(any 2x2) (4)

TABLE 4: EXAMPLES OF QUESTIONS AT LEVEL 2: MIDDLE ORDER – APPLYING

Example 1: Entrepreneurship
Read the following scenario and then answer the questions that follow:

An entrepreneur sells chunky scarves for winter. The production cost of one scarf is R35.00.
Each scarf is sold at R60.00.

1.1 Calculate the profit of ONE chunky scarf. Show ALL calculations.
1.2 If the small business produced 250 scarves during May, calculate how many scarves must
be sold before the enterprise breaks even.
Discussion:
- This knowledge and understanding is applied to a new ‘entrepreneurial’ scenario to do
basic calculations.
- The steps used for the calculations that were learnt in class, are now applied to a new
situation. Hence the question is classified as a middle order ‘applying’ question.

In Question 1.1 where ‘profit’ is calculated the correct monetary unit must be reflected in the
answer which also applies knowledge and understanding.

In Question 1.2 The answer must reflect and refer to the number of scarves as unit of
description.
Memorandum /Marking Guideline
1.1 Profit = Selling price√ – production cost √ = R25,00 √
OR
= R60,00 √ – R35,00 √
= R25,00 √ (3x1)
NOTE: Minus 1 mark if the monetary unit (R) is not reflected.
1.2 Break-even point =
No of products x production cost
Selling price of one product
OR
250 √ x R35,00 √ OR = R8750.00 √
R60,00 √ R60 √
= 145,83 √ (round off)
= 146 Scarves must be sold before the business breaks even √ (6x1)

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Example 2: Clothing
Discuss why ‘brand labels’ are regarded as ‘must haves’ by many young adults.
Discussion:
- candidates have to apply their knowledge and understanding of brand labels to
explain how and why they are perceived in a certain way by many young adults.
- Answering the question requires interpretation of the influence/effect of brand labels.

Memorandum /Marking Guideline

• They feel part of the group that/ who wears the brand label/ other clothes do not reflect
as being trendy. √
• Feel part of an exclusive group/ feel important/ feel popular wearing enviable clothes/
shows conformity with peers/ group. √
• Brand label clothes are regarded as fashionable /trendy. √
• Rebellion towards socially accepted norms/ shows individuality. √
• Wearing brand labels improves self-esteem / confidence. √
• Brand labels show that they can afford to wear expensive clothes / buy from up market
shops/ Displays economic status. √
• Brand labels portray good taste/ sign of good quality √ (5x1)
Example 3:
Study the flyer below and then answer the questions that follow:
Tired of being cold in winter?
Imagine …
warm ears, neck and hands
and steaming hot soup …
What and where?
❖ Beanies in a variety of colours @ R45.00 each
❖ Chunky scarves in a variety of colours @ R60.00 each
❖ Warm gloves @ R50.00 per pair
❖ Variety of home-made soups from R15.00 per serving

These products can be bought from

Winter Warmers
at the market, every Saturday
on the Village Square from 09:00–15:00

Buy NOW! Don't let another week pass

without being geared for the cold!
You deserve to be warm!

Products can also be ordered from

Dudu 083 706 5434
Promotion is one of the P’s that form part of the marketing mix.

Explain how the other THREE P’s of the marketing mix are used in the illustrated flyer.

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Discussion:
- The action word ‘explain’ in this question suggests that answering the question
requires understanding.
- Answering the question requires knowledge of the ‘5P Marketing Mix’. However,
candidates have to apply their knowledge and understanding of the marketing mix to
the flyer provided.
- Specifically, they have to explain how three P’s besides ’promotion’ are used in the flyer.
Then each of these selected P’s are discussed to explain how each is applied in the
illustration and information printed on the flyer.

Memorandum /Marking Guidelines

• Product: √ The products that are for sale are listed, namely beanies, scarves, gloves and
soups. √
• Place: √ The place where the products can be bought is indicated (can be bought at
the market on the Village Square every Saturday). √
• Price: (√ Prices are indicated on the flyer for each product). √
• People √ Buy Now! /Don’t let another week pass without being geared for the cold! /
• You deserve to be warm! √
(any 3 x2) (6)

TABLE 5: EXAMPLES OF QUESTIONS AT LEVEL 3: HIGHER ORDER – ANALYSING

Example 1: Entrepreneurship
Read the scenario below and answer the questions that follow:

Ruth Peters started a business from home and now concentrates on supplying meals
to factory workers. She also sells take-away meals in the tuck shop at the clinic near
her home as well as producing soft furnishing articles which she sells at a flea market
over weekends.

The table below shows Ruth’s income for the period September 2019 to March 2020.
Analyse the information in the table and then answer the questions that follow.

MONTH INCOME FROM FOOD SALES AT THE INCOME FROM FURNISHING SALES
FACTORY AT THE FLEA MARKET
September R14 000 R4 500
October R15 000 R4 300
November R14 000 R5 000
December R7 500 R9 500
January R9 000 R3 000
February R10 000 R4 000
March R11 000 R5 000

1. Study the changes in the income that occurred from November to January and give TWO
reasons for the possible differences in the income of the following:
(a) Food sales
(b) Soft furnishing sales

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Discussion:
- The action verb ‘analyse’ suggests that this question is a higher order question.
- Answering this question requires knowledge of ‘Running a business’.
- To formulate the answer, understanding of ‘sustainable production’ is required as basic
core knowledge.
- However, responding to the question also requires that candidates analyse and
interpret the data provided in the table with regard to the sales reflected for the
respective months. Candidates need to consider all the information provided with
regard to the number of sales and the income generated from the sales for both the
food and soft furnishing items.
- They have to ‘sift’ through and compare the data to identify and formulate two possible
reasons for the difference in sales.
- The thinking processes required to answer the question also involves abstract reasoning.

Memorandum /Marking Guidelines

• Food sales at the factory decreased in December √ because the factory closes during
the Christmas period and less clientele. √
• Food sales at the factory increased in January √ because the factory workers return to
work. √
Any relevant answer √ with a reason √ (2x2) (4)

• Soft furnishing sales at the flea market increase during December √ because it is holiday
time and more people have the time to visit the flea markets √ and more people are
buying Christmas gifts. √
• People get bonuses at the end of the year / Christmas √ and therefore have more
money available to spend. √
• Soft furnishing sales at the Flea market decreased during January √ because people
have less money to spend after the festive season. √
Any relevant answer √ with a reason √ (2x2) (4)

Example 2: Housing
Read the information below and answer the question that follows:

TO BUY OR NOT TO BUY

Many homeowners have to sell their houses as a result of the recession. Interest rates have
been low for a while but may rise in future. Food inflation is high in South Africa.

Provide good reasons why Keith should invest in property during a recession.
Discussion:
- Answering this question requires understanding of the terms ‘invest’ and ‘recession’ (e.g.
understanding of what a recession is and how it impacts on financial aspects for a
prospective buyer).
- Candidates also need to understand financial aspects related to buying a home and as
well as knowing how the current economic environment relates to and affects the
purchase.
- This must be considered, as the economic environment affects the amount of money
spent at the time of signing the contract.
- This knowledge and understanding is applied to the particular context provided in the
scenario and assists to formulate and ‘provide good reasons why Keith should invest in
property’.

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 - To provide reasons, candidates need to sift through all the information provided in the
given scenario to formulate the reasons in support of property investment during a
recession.
- Hence, considering all the cognitive processes involved this question is classified as a
higher order analysing question.

Memorandum /Marking Guideline

It will be cheaper to buy during the recession√ as many owners have to sell their houses at a
lower price √ as they cannot afford the bond payments. √
• Because house prices are down, Keith will be able to buy a bigger property. √
• There will be more houses in the buyer’s market, which will widen the choice and
selection of a suitable property. √
• Interest rates are low, so it may be easier to get approval for a bond. √Initial bond
repayments will be lower because of the lower interest rates. √
• Buying is a good investment √ as the value of the property will increase in the long term.
√
• When re-selling the property in the long term, a profit will be made. √
• The demand for property to rent will increase /The rental market will increase as people
will be renting after selling their property. √ (8x1) (8)

Example 3:

Read the information below and answer the question that follows:)

Pete runs his own business from home. He converted his double garage into a workplace to
produce curios (souvenirs). When this conversion was done, he had to install more electrical
power points to supply enough electricity for the production process. His business has grown
and he currently employs three people. Pete gets most of his raw materials from local
suppliers. His products are good value for money and uniquely South African. He sells most of
his products in tourist shops. He also markets his products on the Internet and charges an
additional fee when he has to post products that are ordered on the Internet.

Explain, with reasons, how the increasing electricity tariffs may affect the sustainable
profitability of Pete's business.
Discussion:
- Answering this question requires understanding of the importance of ‘sustainable
profitability’ when running a business.
- Candidates also need a good understanding of what impact ‘overhead expenditures’
will have on the profitability of the enterprise.
- However, to apply knowledge and understanding and ‘explain with reasons’,
candidates have to analyse within the context of the scenario in relation to sustainable
profitability for a business to justify the explanation as required from the question.

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Memorandum /Marking Guideline
The sustainable profitability of the business will be affected negatively √ (1)
Reasons
• The increase in electricity tariffs will increase overhead costs / production costs √ and a
smaller profit will be made. √
• The selling price of the products will have to be increased to make a reasonable profit. √
• As a result of the higher selling price, fewer products may be sold. √
• Local consumers will have less money to spend due to the increase in the electricity
tariffs. √ (3x2) (6)

Example 4:
“Clothing is a silent but very powerful communicator.”

Reflect on the above statement and motivate how ONE of the following aspects will support
your opinion with regards to the choice of clothes for the world of work.
(a) Self esteem
OR
(b) Lifestyle

Discussion:
- Responding to this question entails understanding the recall of content covered in the
prescribed Teaching Plan in Topic 5: Clothing with the CAPS ref: on page 32 in week 8-9.
Candidates must understand the meaning of ‘non-verbal communication’ in relation to
the ‘selection of clothing for the world of work’.
- However, candidates also must analyse and interpret the opening statement: ‘Clothing
is a silent but very powerful communicator’, in relation to one of the given aspects.
- The candidate has to make sense of what the argument in the opening statement
presents to develop a personal viewpoint and argument for the position they personally
wish to take.
- The context within which the information is sifted for interpretation with regard to non-
verbal communication for the personal viewpoint for the answer involves an analysing
process for the argument which can be either a negative or positive viewpoint.
- This process clarifies the breakdown of information to develop the viewpoint for the
argument in the response. Therefore, the complex processes involved classifies this
question at a high order for cognitive demand.
Memorandum /Marking Guidelines
(a) Self-esteem (Statement and motivation)
1. A person with a high self-esteem is bold enough to make a fashion statement√ by dressing
differently from other colleagues at work. √/Clothes will be worn, regardless of what other
people say or think. √
2. A complementing physical appearance√ boosts self-esteem and confidence. √
3. Personal qualities / Self-esteem can be complemented or disguised√ through careful choice
and emphasis of colour. √
4. Bold /Dramatic personalities with a high self-esteem√ will prefer bright colours. √
5. Shy, reserved personalities √ will prefer soft pastel colours. √
(any 3) (3 x 2) (6)
OR

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 (b) Lifestyle (Statement and motivation)
1. Clothes tell who we are in society. √ People assume a person is rich if he/she wears
expensive clothing. (A person’s lifestyle is reflected in his clothes, e.g. a nurse wears a uniform).
√
2. One’s philosophy of life is always carried out, in part, by the clothing in which one presents
oneself to the world. √ immodest clothing is an indication of a person with immoral values. √
3. Traditional / Cultural values can be reflected by the clothing people wear. √ Marital status is
reflected with accessories and by specific cultural styles that are worn. √
4. Socio-economic status can be reflected through designer labels. √
This often determines the choice of style and quality of fashion items. √
(Any 3)(3 x 2) (6)

TABLE 6: EXAMPLES OF QUESTIONS AT LEVEL 3: HIGHER ORDER – EVALUATING

Example 1: The Consumer

Evaluate the impact that a lack of adequate municipal waste storage systems has on the natural
and economic environment.

Discussion:
- Indeed, the question does require a judgement from candidates.
- An appropriate judgement can only be made if candidates have knowledge and
understanding of ‘natural and economic environment that surrounds the consumer’.
- In particular they need to know and understand
a) the responsibility of municipal service deliver;
b) the impact of good /lack of municipal service delivery on the natural environment;
c) the impact of good/lack of municipal service delivery on the natural and economic
environment.
- The question is classified as ‘evaluating’ because candidates are expected to judge the
impact of adequate municipal waste storage systems to determine what impact a lack of
adequate municipal waste storage systems would have on the natural as well as the
economic environment.
- The impact is evaluated from an adequate perspective to formulate the judgement in
conclusion for an inadequate system.

Memorandum /Marking Guidelines

Natural Environment
• Decaying products emit gases that pollute the air √ and could become poisonous
/hazardous. √
• Poisonous substances seep into the ground and could be taken up by plants growing in
the ground. √ This could be dangerous to human and animal health. √
• Diseases impact negatively on the economy and patients becomes reliant on government
for their welfare. √
• The disposal of waste and waste material uses up valuable land √ and less land is available
for agriculture/housing/roads. √
• Waste is unsightly √ and impairs the beauty of nature. √

Economic Environment
• Tourism to the area will not be encouraged, which will have a negative effect on
the economy. √
• Plastic bags lying around could be eaten by animals. √ This could cause their death and

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 leads to financial loss. √
• If there is a lack of adequate storage systems, waste cannot be sorted into organic and
non-organic waste √ and it would not be cost effective to recycle items. √
• Pollution causes serious damage to wetlands √ and this would also have a negative effect
on the income earned from Tourism as some areas could lose their status as National
Heritage sites. √ (5 x 2) (10)

Example 2: Clothing
Assess the impact of cotton and wool textile production on the ‘natural environment’ in South
Africa.
Discussion:
- Answering the question requires knowing, remembering and understanding of what cotton
production requires and how this impacts on the natural environment; as well as what is
required for wool production and how this impacts on the natural environment.
- To assess the impact of both aspects, both positive and negative impacts on the natural
environment are identified to make a conclusive judgement with regard to the impact of
textile production for both wool and cotton.
Memorandum /Marking Guidelines
The impact of the production of cotton and wool on the environment holds negative
consequences for the natural environment. √

Motivation:
• The production of natural fibres e.g. cotton requires heavy use of pesticides which causes
pollution. √
• Fertilizers and herbicides used, lead to water pollution. √
• Irrigation uses lots of water – loss of a natural resource. √
• Growing cotton uses large proportions of land thus reducing land for growing food-this
impacts on food security. √
• Bleaching and dyeing during processing, e.g. mercerizing leads to water pollution. /
Chemicals used remain in the fabric after finishing, and is released during the life time of
the garment. √
• The production and management of wool quality requires use of bio-degradable
chemicals and this reduces residues (waste water from scouring the dirt). √
• Dyeing of wool fibre during production involves use of dyes containing heavy metals such
as chromium which does not breakdown in the environment. √
• Toxic sheep dip runs into rivers and pollutes water. √
• Woollen garments emit gases as they decay and this contributes to climate change. √
• Overgrazing leads to soil erosion. √ (any 8) (8)

TABLE 7: EXAMPLES OF QUESTIONS AT LEVEL 3: HIGHER ORDER - CREATING

Example 1: Food and Nutrition

Create packaging criteria that ONE of the following products must adhere to, to promote
sales.
• Shirt.
• Freshly baked muffins.
• Embroidered towels.
Discussion:
- Answering this question entails knowing, remembering and understanding packaging

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 criteria. In this question the action verb is ‘create’ where candidates are expected to
create criteria for packaging, for one of the three listed products.
- New ideas/solutions/ways of viewing criteria for packaging are generated for the
selected product.
- The suggested criteria for the packaging also needs to promote sales as well as provide
a competitive edge for the particular product.
- A number of elements are combined to develop/plan the criteria that will contribute
both to being functional to protect the product as well as being able to contribute
towards the aesthetic appeal of the product.
- The creating process is done within the framework of what is expected to meet the
required needs for good packaging for a specific product in the production process.
Memorandum /Marking Guideline
Criteria of packaging to promote sales
• Use minimum packaging material that effectively protects the product-√ Avoid double
packaging - it doubles the amount of waste. √
• Packaging material used- must be recycled or re-used. √
• Choose environmentally friendly packaging / Bio-degradable packaging should be
used. √
• Make sure that packaging is economical to ensure affordability. √
• The packaging must be easy to handle. √
• The design and shape of packaging must be clearly noticeable. √
• Information on the product should appear on packaging. √
• Packaging must be attractive. √
• The product must be visible. (any 8) (8)

Example 2
“The SA Constitution states that every citizen has the right of access to sufficient food and
water.”

Express your view with relevant recommendations of the above statement with reference to
current ‘food security’ and its impact on public health and the economic sector.

Discussion:
- Forming an opinion requires substantiating it with evidence and motivating the point of
view expressed.
- To answer the question, candidates need to first analyse the meaning of the opening
statement; then evaluate the statement; and then thirdly express a view on the issue by
making reference to the impact of current food security on two issues: a) public health
and b) the economic environment.
- For this task synthesis of ideas and information on food security, public health and the
economic sector is required.
- To complete the task of developing an original argument, candidates have to generate
new ideas and integrate these ideas with facts/knowledge being evident in the
opening statement provided.
- The process of formulating an original argument involves a process of creating original
ideas, viewpoints and arguments.

Memorandum/Marking Guidelines
Every citizen has the constitutional right to enough food and water for now and in the future. √

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 • To achieve this farmers need to be given more support for the production of food
products. √
• With the current droughts serious financial problems √are encountered and smaller /no
crop yields are harvested. √ This is not happening as rising costs for commodities,
including petrol and diesel, increase farmers’ expenses which reduces their profit. √
Currently this is not a good sign for the future as many farmers are turning to other
means of livelihood, e.g. game farming for tourism ventures. √
• When products are not available and have to imported √ the price of goods for the
consumer increases. √
• With unemployment and with more expensive food products and water this right is
denied to many citizens. √

Inflation must be controlled√

• The income must meet the expenditure of citizens. √ Ensure that all people earn a living
wage so that they are able to purchase sufficient food. √
This is difficult as inflation is usually higher than wage increases √
• A call must come from government for people to stop purchasing on credit, to ensure
that enough cash is available for essential food products.

Government must ensure that all South Africans have the knowledge to make good food
choices. √
• Subjects at school level such as Consumer Studies addresses this need. √
• Consumer forums also meet this need in the wider community√ as does the Department
of Health. √
• Good health and safety standards in food production and sale of food products will
ensure good nutritious and safe food. √
• Without good nutrition, health deteriorates √ which has an additional expense to
government to provide medical care and treatment to the needy. √ (Giving food
parcels and supplementation).
• Illnesses due to malnutrition may lead to a decrease in household income which lessons
the consumer’s buying power. The state of health of a nation has a direct influence on
the economy. √
• If a large portion of the South African population suffers from malnutrition they are not
able to contribute toward the growth of the economic environment in the country. √

Any relevant (8x1) (8)

Example 3: Clothing
"The business suit as the unofficial prescribed dress code for managers is outdated and should
be replaced with something more relaxed and informal."

Argue your case FOR or AGAINST the above statement with socio-psychological aspects of
clothing as the main focus of thought.
Discussion:
- Candidates first have to decide whether or not they agree with the argument
presented in the opening statement (evaluate). They then need to formulate a strong
case for/against the statement.
- They have to organise and sequence their argument so that it makes logical sense.
- To complete the task of successfully making an original argument, candidates have to
generate and create their own original ideas as well as integrate these ideas with
known facts/knowledge as evidence within the context/framework of the given
opening statement. This involves creating skills to prepare the argument for the case.

16
Memorandum /Marking Guidelines

ARGUMENT FOR THE OUTDATEDNESS OF THE BUSINESS SUIT

• The business suit reflects an old-fashioned, outdated appearance√ and does not
portray the trendy image for the young modern company. √
• Modern day companies prefer to portray the message of √ company success being
inspired by a comfortable trendy look rather than formal power dress. √
• The business suit is not appropriate to all manager roles √and could portray a message
of poor taste. √
• Many successful new companies prefer to portray a young hip image√ with popular
branded wear, rather than the business suit. √
• Brand quality in this modern era √can be used just as effectively to portray a message of
power and success. √
• The message of comfort, success and productivity√ is communicated by the
appearance of comfort of informal wear. √
Any relevant socio psychological argument (4x2) (8)

ARGUMENT AGAINST THE OUTDATEDNESS OF THE BUSINESS SUIT

The business suit plays an important role in the dress code for professional, corporate daily
appearance due to the following substantiating facts:
• The corporate appearance of a company creates a first impression to the outside
world. √ A manager’s appearance plays an important role to display this professional
image of the company to members of the public and the corporate world. √
• The business suit makes a statement √hat addresses the position of power. √
• Power dressing √ in the corporate world assist to create an image of respect and
confidence √ It portrays a message of being in charge of the task at hand.
• Power dressing in the corporate world indicates position/status √ that also creates
/demands respect. √ This can be reflected by the quality and style of the business suit. √
• Professional appearance is linked to financial affordability and corporate success. √
• These messages can be well expressed by the formal business suit. √
• The business suit creates a symbol of masculinity/strength√ and gender. √
• The type and style of the suit √ can also symbolize the position of the holder. √
Any relevant socio psychological argument (4x2) (8)

17
 2025
STUDY CHECKLIST
CONSUMER STUDIES - CORE CONTENT: GR 12

TOPIC: THE CONSUMER

Did you master the following learning content? (√Yes / X No) Sept Nov

Financial and contractual aspects consumers should take note of

• A contract.
• Types of contracts relevant to consumers.
• A cooling-off period.
• Exemption clauses (legal/illegal).
• Unfair business practice.
• A warranty and a guarantee.
• Grey goods/parallel imports.
• Scams: types of scams consumers should be aware of.
• Stokvels (legal/illegal).
• Pyramid schemes (legal/illegal).
Taxes, interest rates and inflation
• Types of taxes paid by South Africans, such as income tax, VAT,
property taxes, taxes on goods and services (such as petrol, liquor,
cigarettes, motor licences).
• Interest rates: applicable to different types of credit.
• Simple and compound interest (what is the difference, no
calculations).
• Inflation: definition, inflation rate, the CPI in South Africa.
• Include any legal changes/new developments that might occur

Sustainable consumption of electricity

• Comparison of the main sources of electricity supply such as fossil fuels
and regenerative forms such as water, wind and solar.
• Responsible use of electricity related to housing and household
equipment and appliances.
• The use of gas in households as a source of energy: advantages,
disadvantages and cost.

Sustainable consumption of water

• Water (explain the issue in general, but then focus on households):
pollution of water, shortage of water, shortage of fresh, clean water.
• Responsible use of water related to housing and household equipment
and appliances.

Municipal Services
• The responsibilities of municipalities regarding services and service
delivery.
• Responsibilities of communities regarding the use of municipal services.

18
 2025
STUDY CHECKLIST
CONSUMER STUDIES - CORE CONTENT: GR 12
TOPIC: FOOD & NUTRITION
Did you master the following learning content? (√Yes / X No) Sept Nov

Nutritional and food-related health conditions

Short description, causes, prevention and management.
• Focus on nutrition and eating habits to prevent or manage an existing
condition.
Nutritional health conditions:
• Coronary heart disease; atherosclerosis;
• High cholesterol;
• High blood pressure;
• Anaemia
NB: Application of knowledge acquired in grades 10 & 11
Food additives: commercial and domestic use
• What are food additives? Reasons for use, effect on food, safety and influence
on health, possible allergic reactions.
• Definition and explanation of the following food additives: nutrients, emulsifiers,
stabilisers, bleach and colourants, chemical preservatives, anti-oxidants
additives to improve taste
• Consumer issues regarding food additives, for example: do food additives
enhance the nutritional value of foodstuffs such as energy drinks, chewing gum
and potato chips?
• Should these foodstuffs be available in school tuck shops?

Food-borne diseases
• Transmission possibilities in the food environment
• Symptoms, incubation period and treatment of
o hepatitis A (infective jaundice)
o tuberculosis
o E-coli infection
o gastro-enteritis
Food labelling
• As a source of nutritional and other information for product selection.
• Basic information that must appear on food labels
• Interpretation of food labels.
• Misleading nutrient content claims appearing on food labels.

Food-related consumer issues impacting on the natural and economic

environment, including public health
• Genetically modified food.
• Organically grown food.
• Irradiated food.
• Local food production and food security in South Africa.
o Self-sufficiency, exports, imports
o Problems associated with local food supplies and possible remedies.

19
 2025

TOPIC: CLOTHING, DESIGN ELEMENTS AND PRINCIPLES,

Did you master the following learning content? (√Yes / X No) Sept Nov

1. Fashion and appearance in the world of work

• The concept fashion.
• Influences that determine contemporary fashion.
• Fashion cycles: fads, classic and standard trends.
• Fashion revivals: retrospective fashions.
• Why fashion changes.
• Contemporary fashion trends for young adults.
• The role of appearance in the world of work.
• Guidelines when choosing and purchasing clothes and accessories.
• Planning a basic wardrobe for the world of work for different seasons and
different occasions at work (male and female): factors to consider,
including application of colour, design elements and principle
(KNOWLEDGE FROM GRADE 11)
2. Consumer issues regarding clothing and textiles impacting on the natural and
economic environment
• Eco-fashion and the sustainable use of textiles and clothing.
• The influence of the piracy of legally protected brand names (trademark

20
TOPIC: HOUSING AND INTERIOR

Did you master the following learning content? (√Yes / X No) Sept Nov

Different housing acquisition options

• Options: Renting, building, buying
• Advantages and disadvantages of three options
• Financial responsibilities of three options
• Contractual responsibilities for three housing options
Financing related to buying a house

• Deposits, bonds, insurance, monthly repayments of bonds, transfer and other

hidden costs, banks’ requirements for granting bonds.
• Government subsidised housing, employer support

Buying household appliances:

- washing machine, tumble dryer, dishwasher, fridge, freezer, stove,

microwave-oven and vacuum cleaner.
• Factors to consider when shopping for household appliances needs of the
family, budget, easy to operate.
• Choice of household appliances with regards to
− universal design and other features, functionality of different types, energy
(human and non-human) water consumption; and
− the possible environmental impact.

• Financial and contractual responsibilities in buying furniture and household

appliances.
• Rights and responsibilities of consumers and sellers.

CONSUMER STUDIES TERMINOLOGY

ENTREPRENEURSHIP

Terms Explanation
1. Start-up capital/ Costs like registration fees, initial purchasing of stock, purchasing of
start-up costs equipment and deposit for rent of premises.
Are costs/money needed to set up/start a business and to run it until
it reaches the profit threshold.

2. Operating cost Are costs paid out to run the business and to produce the product.
Costs of all extra expenditure to run the business. For example:
salaries, wages, stationary, rent, water, electricity, repayment of
bank loan. There must be enough capital to cover the costs of the
business until it starts to make a profit.
3. Storage and Explain how goods are stored, for e.g. FIFO – principle, computer
delivery programmes, and most usage at the door.
strategy

21
4. Quality control Is the process of inspecting products to ensure that the required
standards are met.
OR
Is the procedure for making sure that the quality of a product is
maintained through inspection to meet the required standards?
Stadiums:
Before production/ raw material being used. During production.
Check quality of completed product. Check packaging/ labels

5. Trade name/ A specific identification that makes it easy to recognise and

Trademark/ distinguish competitor’s products.
Logo
6. Marketing mix/ Product, place, promotion, person and price
5 P’s/ marketing
strategies
7. Market Is conducted to find out about the potential market and to identify
research what the market needs and wants are.
• Is a planned and organised effort to get new knowledge/facts
that will help the entrepreneur to make informed decisions
about his/her product and marketing thereof.
• The price competitive enough is to make a profit,
8. Competitive A business idea that fills the gap in the market and doesn’t compete
edge with successful businesses.
The product must be special and not something that the competitors
have, for example better location, quality service and value for
money.
9. Human The knowledge, skills and experience that workers have, for
resources example creativity, knowledge and communication.
10. Staff training Improve quality of work, increase in production, less wastage,
improve workers moral and less repairs and maintenance costs.
11. Skilled workers Workers know what is expected from them.
Assure to maintain quality of work/ quality products are
manufactured.
Improve productivity.
Less maintenace and repair costs
Less wastage because they know what they are doing.
It motivated/ highly work satisfied.
12. Persons The target market and staff of your business.

13. Place/Location Refers to aspects like place of production and sales, accessibility,
parking facilities and a clean enviroment.
14. Production The total amount that is paid for material and overheads to
costs manufacture a product.
Divide into 2 groups: fixed and variable costs.
15. Product Satisfies the need of your traget market, for example quality of
ingredients, design, trade name, logo, packaging, advice,
guarantees, after-sales services and customer care.
16. Promotion Communicate your product/service to bring it under the attention of
your target market, eg to put up poster.

22
17. Price Swop a product, value for money as an advantage like discount to
stimulate sales.
18. Product Ensures that consumers will always get a good quality product
specification regarding appearance, texture, taste, size.
19. Target market Is a specific group of people who would be interested on your
products/services and purchase them.
20. Feasibility A study of whether a business will be a success after taking into
study consideration its total costs and probable revenues.
It will show then if they produce and sell the product with a
reasonable profit.
To see if the income is enough to cover the expenses and to make
a profit.
Show how the business plan can be adapted to be more successful
21. Selling price Cost price/overheads + profit margin
22. Packaging Must protect the product, easy to handle, easy to transport and easy
to open and close.
Attractive packaging/ must attract attention of consumer
Attractive packaging will make that the consumer read the label
Consumer buy product that is in strong and convenient packaging/
that protects the product/ well designed/ easy to handle, can all lead
to increase in sales.
Packaging that stands out has a positive influence on consumers
and will increase sales.
Consumers buy and product in a safe and hygienic packaging that
will prevent contamination.
Well-designed packaging reflects a good image of the business.
23. Sustainable Using goods and services to improve the quality of life and meet
production basic needs of consumers without harming the environment.
The production of waste/ pollution/ greenhouse gasses must be
minimal to sustain the environment.

24. Sustainable A business that is in production for a long period of time, covers all
profitablity expenses and shows a profit.
OR
A business that have a plan ready to make sure the business grow
and in the long run still make a profit.
OR
The business can maintain itself with enough production and sales
without depleting the cash available and still make a profit.

25. Stock control Is the process of ensuring that the business does not run out of raw
material.
Is the process of ensuring that production will not be interrupted as
a result of a shortage of raw material.

26. Workers Schooled: has specific skills, knowledge and experience and is
able to work independently.
Half schooled: has some training. Usually to do a specific tasks
and can also work independently.
Unschooled: has little of no training. Usually unemployed people.

23
 Cheap labour.

27. Work schedule Definite aims are set for the business.
It ensures that resources and equipment needed for production is
available.
Lead to better time management because time is used more
efficiently.
All tasks can be finished on time and product can be delivered on
time.
Productivity increases.
28. Profitable A business that fulfils an unmet need in the marketplace and
business generates profit. Produces a good quality product at a reasonable
price. Use efficient manufacturing methods and have a delivery
services.

29. Mark up Is the percentage or amount that is added to the cost price to cover
all the overheads expenses and still leave money over for a profit

CLOTHING

1. Fashion • Is a style of clothing that a specific group of people accept

and wear at a given time and place.
• Is the specific characteristic that make one product or item
different from another product of the same type.
2. Style/ Fashion
• Differences or additions whereby similar products are
style
distinguished from one another for example A-line skirt,
pleated skirt and a pencil skirt, all has different style but are
still skirts.
• This is the outline of your body or a garment, which you can
3. Silhouette see from a distance, even before you notice the detail of
the style
• The directions in which the fashion moves
• Trends start, grow, evolve and decline gradually, for exmple
4. Fashion trends
lenght of the hem of a dress or the shape of the neckline or
lenght of sleeves
• Is the style that many people accept and wear,
5. Comtemporary
manufactured in larger quantity and sold at low price
fashion
• It is manufactured in bulk and sold in most chain stores at a

24
 reasonable price that is affordable.
• These styles usually last 2-3 years.
• Are styles that are continually accepted because they are
timeless and tasteful
• Charateristic is simple design.
• Can be worn by most people and al age groups
• Slight changes from time to time.
6. Classical fashion
• A good investement
• Is seen as good taste.
• Usually good quality
• Example include, jeas, pants with straight legs, plain t-
shirts, button-up shirts,little black dress.
• Is a fashion with very short life cycle.
• Is any style that catches on among a large group of people,
it comes and goes very quickly
• Items that suddenly become popular but disappear again
7. Fashion fad
just as quickly
• Usually last only one season
• Examples, platforms shoes, plastic shoes, fake flowers as
jewelery, wearing of gloves.
EXAMPLES OF VARIOUS FASHION
CYCLES

8. Retrospective • Refers to clothes that imitate the style of the previous era
fashion • Fashion often looks to the past for inspiration
• This is not antiques or old fashion garments, but a fatihful
copy of an older garment.
• It is the re-intrepertation of a previous fashion with a
modern twist.
• It is never excatly like the previous fashion.
• Sometimes only a silhoeet/ shape of a sleeve/collar or

25
 decoration like embroidery are repeated.
• Adaptions are made to suit the need and lifestyle of the
current era.
• There are a revival in wearing of vintage clothing.
• Some people buy clothing from antique boutiques because
they feel is a manner of living more enviroment friendly.
• Fashion boom when designers look at clothes from
previous eras to find inspiration.
• These are new, unique and exclusive styles that are
created by fashion designer.
• Usually expensivve due to limited amount of garment
9. Haute couture / available and the high quality of textiles and finishes used.
high fashion • High prices make it only available to wealthy people, only
fashion leader and celebreties can afford it.
• These styles are only sucessful when it is accepted by
fashion leaders and the public.

C
B D
A A
A
E
A

• Refers to the life cycle of a style or fashion

trend – from introduction until obslete
10. FASHION CYCLE
(See Diagram)

A. Introduction/launch. • A new fashion is introduced to the market by

Beginning stage 1 fashion designers and fashion houses. It is
showcased on internation fashion shows.

B. Rise/ Stage 2 • The fashion gains popularity as more people

accept it.

C. Peak stage 3 • The fashion reaches the height of its

popularity and widely accepted by many
people, many people wear it

26
 • Mass production takes place and most
shops sell it at affordable prices.

D. Decline stage 4 • Boredom sets in and fashion declines as

fewer and fewer people wear it, until no one
wears it and it is marked down by shops

E. Obslete stage 5 • Garments go out of fashion. At this stage a

new fashion trend has been established
• The fashion cycle is completed.
• Garments are sold at low prices on sales.
• It is old fashion and disappear.

• When the product is given a name that is

similar to that of a well-known brand
deliberately so that consumers may mistake
it for the actual brand name
• Unauthorised use of protected trademarks,
brand names or logo and the imitation of
labels, packaging of products
11. Brand piracy
• Consequences for registered owners:
- Lost of income
- Negative reputation
- Cannot enter market where there is
piracy.
- No competitors in the market due to
piracy.
• it is a symbol, word, of name that is used to
indentify with a product to distinguish is from
the rest for example,

12. Brand name/ trade name

13. Counterfeit • Illegal copy of a product.

• A set of rules that stipulate what is expected

of you in terms of the type of clothes that
14. Dress code you must wear. For example what the
company excpected from the employees to
wear to work.
• Clothes associated with people working for
a big company.
15. Coporative clothing • Make didentification easy, gives a positive
image of the company.
• Some companies allow employees to

27
 choose there own style that suits there
individual taste en bodies.
• Are usually worn for identification/safety.,
16. Uniforms but also as a basic standard in terms of
clothing and appearance.
• Clothing produced by methods that are not
harmful to the environment
• using organic raw material or recycled
17. Eco-fashion material
• using material that has been grown without
the use of pesticides
• Reduces carbon footprint
• Like handbags, scarves, jewelery, belts and
18. Accesories ties can be used to make clothes stylish,
interesting and fashionable.
• Are cultivated and manufactured in eco-
friendly or environmentally friendly ways
• Little or no chemicals are used in the
cultivation of the plants and production of the
19. Sustainable textiles textiles
• Renewable resources such as plants that
require little water, but produce good yields,
are used to manufacture these textiles

• No harmful pesticides or weed-killer are

used when cultivating organic textiles
• No bleaching agents or chemical colorants
are used during the manufacturing process
• Natural plant dyes are used to colour textiles
20. Organic textiles
so that workers are not exposed to harmful
toxic substances
• For example, organic cotton, bamboo, flax,
fibre of animals.

• Is manufactured from crops planted and

replanted without damaging the soil.
21. Non-organic textiles • Little chemicals are used to limit the
damage to the soil.

• Recylcing is the process where used

products is circulated and made new with
techonolgy.
22. Recycling • OR shop as second hand shops
• OF upcycling – old garments is totally
changed to a new garment.

• Refers to the way clothes are manufactered

23. Ethical clothing pratice/
and what the company does for the
Fairtrade
community.

28
 • Reasonbale wages/ work enviroment
• No child labour
• Satifies all labour and safety regulations.

GRADE 12: CONSUMER STUDIES TERMINOLOGY: FOOD AND NUTRITION

NUTRITIONAL AND FOOD-RELATED HEALTH CONDITIONS

Disease of the blood vessels (arteries)

1. Coronary heart disease: that supply the heart muscle.

2. Cholesterol A soft, white, waxy, fatty substance that

occurs naturally in the blood produced by
the liver. A high blood cholesterol level
can lead to plaque build-up in the
arteries.

Build-up of plaque in the arteries leading

to narrowing and hardening of the
3. Atherosclerosis arteries. Results in blocking blood flow
which can lead to heart attacks/strokes.

Continual high pressure on artery walls

which leads to hardening and loss of
elasticity of larger arteries and narrowing
4. High blood pressure of smaller blood vessels. Can lead to
heart attack/failure, kidney failure and
damage to eyesight.

A condition in which the blood contains

5. Anaemia fewer red blood cells than normal or red
blood cells lack haemoglobin.

29
FOOD- BORNE DISEASE

A contagious liver disease that is

6. Hepatitis A (jaundice):
caused by the hepatitis A virus.

A serious, chronic bacterial infection that

7. Tuberculosis (TB):
mostly affects the lungs.

A type of bacteria that normally live in the

8. E - coli infection: digestive tract of healthy people. Some
E-coli cause infection in the digestive
tract.
It is inflammation that irritates the lining
of the stomach in reaction to an
9. Gastro-enteritis:
infection caused by a virus, bacteria,
harmful substances or medication.

FOOD ADDITIVES

Refers to natural or chemical substances

that are intentionally added to food
10. Food additives: products during processing or production
process to perform specific functions like
adding flavour, texture and improving
appearance.

Substances found in food that perform a

specific function in the body. Provides
11. Nutrient : energy, builds tissue and maintains basic
health. Enrich/fortify.

Mix oil and liquid to form a permanent

12. Emulsifiers : emulsion and to prevent it from
separating.

Added to food to make it maintain a

uniform
13. Stabilizer : texture and to improve the appearance of
the food. Will not separate example
yoghurt

Added to cake flour to make it

14. Bleaches : whiter.Freshly milled flour is a yellowish
colour.
Natural and synthetic colourants are
15. Colourants : used to improve the appearance and
make it look more attractive.

30
 Preservatives prevent or slow down
spoilage caused by micro-
16. Chemical preservatives : organisms.(lengthens shelf life).
Delays the growth of micro-organisms.

Delay enzymatic browning in fruits and

vegetables that have been exposed to air
17. Anti-oxidants : by peeling or cutting.
Prevents oxidation that can caused
discolouration or rancidity.

Used to improve the flavour of

18. Additives : commercially processed foods.

Means the last date on which the product

19. Sell by date : may be on the shelf to be offered to the
consumer for sale. Might be off but not
poisonous.
Meat/fish/milk.
20. Best before date: Date indicates how long the product will
be of good quality and safe to eat.
Day –month-year. Food that will keep for
21. Use by date:
a long period of time if stored correctly.

GENETICALLY MODIFIED AND ORGANIC FOODS

Genetic molecules from one organism

are inserted into another organism to
22. Genetically modified foods transfer the characteristics of the one to
the other.

Grown without artificial fertilizers,

pesticides herbicides, growth regulators
23. Organic foods : or additives. Traditional farming methods
are used which maintain a healthy eco-
system.

A technology that reduces or completely

removes micro-organisms and insects in
24. Food irradiation :
food.
Improves the safety of foods and

31
 extends the shelf life.
FOOD SECURITY

When all people have access at all times

to sufficient safe, nutritious food to
25. Food security : maintain a healthy active life.

Farmers consume some of their own

produce and are thus self-sufficient.
People have vegetable gardens or
chickens to produce products.
26. Self – sufficiency :
The country can provide food through
production and importing of foods to
provide for the basic needs of the
population.

27. Import : To bring in from other countries.

To send goods to other countries to sell

28. Export :
or exchange for something.

GRADE 12: CONSUMER STUDIES TERMINOLOGY: HOUSING

1. Tenant/ lessee : The person that rents the house or flat.

2. Landlord/lessor : The person letting the property.

3. Lease: The written agreement between the

tenant and the owner of the property.

4. Full title /free hold ownership : The legal owner of the house, the entire
property and all the structures on the
property.

5. Sectional title ownership : The legal owner of the house (a section

of the units of the building) but share in
the common property as they are jointly
owned.

32
6. Body corporate : A group of people that manage and
control the sectional title buildings. They
are responsible for the administrative
duties. Each owner in the sectional
building is a member of the body
corporate.

FINANACIAL AND CONTRACTUAL ASPECTS

7. Hidden costs : Costs that are not included in the selling

price of which the buyer may not be
aware.
8. Rent : The amount of money paid monthly by
the tenant to the landlord to make use of
the accommodation.
9. Levy : The levy/fee that is paid monthly to the
body corporate for maintaining the
building and communal areas and for the
security.
10. Deposit : The amount of money the buyer must
give in advance to show their intention of
buying or as security or partial payment
of the property.
11. Bond : A loan made to the owner of the property
where the property is the security for the
loan.
The money the buyer borrows from the
bank to buy the property which is paid
back to the bank in monthly instalments,
with interest, over a period of time.
12. Interest : The money charged by the bank for
lending the money to a person.
13. Offer to purchase : A document in which the buyer makes an
offer to the seller, and which contains the
terms and conditions for the purchase
and sale of the property.
14. Bond/mortgage protection A form of life insurance the buyer takes
insurance out to pay off the bond should something
unexpectedly happen to the buyer. This
insures that the bond is paid off if the
bond holder cannot do so in case of
death, retrenchment, disability while the
beneficiaries keep the property.

Short-term insurance cover that protects

15. Homeowner’s comprehensive the structure and permanent fixtures in
insurance your house against fire, flooding and
disaster.

The contents of the home is insured

33
16. Household contents insurance against damage example theft.
The owner must repay the bank every
month.
The monthly instalment may not exceed
17. Monthly repayments of the 25%-30% of the homeowner’s monthly
bond: income.
Home loans repayable for a period of 20-
30 years.
18. Fixed interest rate: An interest rate that does not change
over an agreed upon period of time.

19. Variable interest rate: A fluctuating interest rate based on the

home loan lending rate set by the
South African Reserve bank
20. Deed of sale agreement: A formal written legal agreement
between the buyer and the
seller,detailing the terms and conditions
of the sale of the property. (PAPER)
21. Collateral security : If the loan granted does not cover the
entire purchase price, the buyer may be
asked to assist with collateral security
from another source for example by
surrendering the value of an insurance
policy. (EXTRA)

TRANSFER AND HIDDEN COSTS

22. Transfer : Once the deed of sale has been signed

by both parties and the bank has
approved the financing of the buyer’s
home, the ownership of the property has
to be transferred to the buyer’s name by
registration at the appropriate deeds
office.
23. Transfer costs: The transfer fees are paid to the
conveyance lawyer. This fee is paid
when a property is bought and the
property rights need to be transferred to
the buyer.
24. Transfer duty : Government tax on the property to
transfer it onto the buyer’s name. The
conveyancer pays the amount to SARS.

25. Property tax : The buyer is responsible for the property

rates from the date which the property if
registered in their name to the

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 municipality.
26. Transfer and lawyer’s fees : Transfer fees are paid to the attorney
who oversees the transfer process.

27. Conveyancer lawyer : An attorney who is qualified to prepare

the transfer documents.
28. Title Deed : The legal document that proves the
buyer the owner of the property; it
includes the location and size of the
property as well as the owner’s
particulars.
29. Deeds office fee : The fees are charged by the deeds office
for registering the mortgage bond and
the title deed.
30. Interim interest : Interest that has to be paid to the bank
on the loan until the registration of bond

31. Bank Initiation fee: The bank charges a once-off fee for
processing the mortgage application.

32. Property evaluation fee: This fee is payable to the bank for the
evaluation of the property.

33. Occupational interest : If the buyer occupies the property before

the bond is registered, he/she must pay
occupational rent to the seller. Or vice
versa
34. Administration fee : The bank charges a monthly
administration fee on loans for residential
property.
35. Moving expenses : The amount budgeted for a removal
company and other related expenses like
new curtains.

36. Service connection fee and A deposit is paid to the municipality for
deposit : the connection of services like water
and electricity.

37. Variable costs from the These costs include FICA fess, postage,
lawyer/HIDDEN costs electronic instruction fees and postage.

HOUSING SUPPORT

A subsidy given by the government to

people who qualify (usually low income
38. Housing subsidy : consumers) to assist them to get
housing. Do not have to pay it back.

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 The government, all municipalities and
many other employers offer monthly
39. Employer support : housing subsidies or allowances to their
employees.
The employer assists the employee to
be able to pay a monthly instalment
enabling them to buy property.

BUYING HOUSEHOLD ITEMS

The design of products and surroundings to be

designed in such a way that they are useable
40. Universal design by all people( even if they have special needs)
and where possible not to have to make any
adjustments. Have a user manual
and sketches Controls of appliances
easy to use Easy to use.

CO2-carbon foot prints+ low

E-waste
Pollution –water/air/environment=little CFK –
free Recycle
41. Sustainable environment
where possible Global
impact
warming- prevent it

Consumers can buy expensive household

appliances and furniture and pay for it in
monthly instalments over period of time. The
item can be taken home once the deposit is
42. Hire purchase :
paid and the contract is signed by both parties.
Extra costs that are added include deposit,
administration fees, interest and insurance.

43. Lay buy The consumer pays for the item in instalments
but the supplier keeps the item until it is fully
paid for.

When the price of appliances are too high for

the consumer to pay for it with one month’s
salary items can be bought on account.(even
clothing). The shop sends
an account to the consumer with the
44. Credit/account outstanding amount that needs to be paid.
transactions Consumers can buy account repeatedly. A
minimum monthly amount must be paid on time
to avoid interest being added. There is a
monthly limit on how much can be spent on the
account.

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 Credit cards are issued by banks to consumers
who qualify. The cards can
45. Bank credit card be used to buy anything in the shop.
transaction : Interest rates on these cards is high and card
holders must pay an administration fee.

Consumers pay cash when they buy furniture

or appliances. They are
46. Cash transactions : entitled to discount and can choose which
supplier to use.

THE CONSUMER
FINANCIAL AND CONTRACTUAL ASPECTS THE CONSUMER NEEDS TO TAKE
NOTE OF

1. Contract: An agreement between two or more people in

which one person offers to do something in
return for a valuable benefit

2. Breach of contract: When one party fails to perform the obligations

specified in the contract, that party breaches
the contract

3. Warranty: A written promise that a product is reliable and

free of defects and if defective it will be repaired
or replaced at no cost in a given space of time.

4. Guarantee: An assurance that a product will meet standard

requirements for a particular length of time. If
the product does not meet the requirements the
manufacturer will refund the money

5. Grey goods/parallel Articles that a manufacturer does not want to

imports: sell in a certain country. Articles imported into
the country through unofficial channels.
This is not illegal.
Goods that are imported through unofficial or
unauthorised distribution channels. Goods are
not illegal as the necessary duties are paid.

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 Goods sold by individuals or businesses that
are not authorised by the manufacturer to do
so.

6. Direct marketing: To approach someone, in person or by mail or

electronic communication, for the direct or
indirect purpose of promoting or supplying
goods in the ordinary course of business or
requesting a donation.

7. Cooling –off period: It is the period of time, by law, after signing a

contract within which the consumer can change
their mind or cancel the contract without reason
or penalty.

8. Exclusion clauses: When provision is made in a contract which

clears one party (usually the one drawing up
the contract)from any liability if they fail to
honour the agreement or the service agreed
upon does not fulfil its purpose or because of
negligence etc

9. Scams: Dishonest schemes.

It usually involves an unsuspecting consumer
who is cheated into paying an excessive
amount for the goods or services offered and in
many cases there are no real goods.
The consumer loses their money and get
nothing in return

10. Stokvel : A community- based saving club.

Consists of two or more people who agree to
support each other in order to achieve a
specific objective.

11. Pyramid Schemes: It’s a “get-rich-quick” moneymaking scheme

that takes on the form of a pyramid. Members
receive compensation from recruiting other
members.
It is an unsustainable business model in which
members are paid to recruit new members,
rather than sell goods or services.

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TAXES, INTEREST RATES AND INFLATION.

12. Income tax: Income tax is a tax levied on all income

and profit that a taxpayer receives.
Taxpayers are individuals, companies
and trusts.

13. VAT (value added tax): 15% is added to the price of specific
goods and services that a business sell
to consumers. All consumers pay VAT
irrespective of their income.

14. Excise tax (sin tax): A tax placed on the manufacture and
sale of products such as alcohol and
cigarettes.
15. Feul levy: A levy paid on every litre of petrol and
diesel sold in South Africa. It includes a
levy payable to the Road Accident Fund.

16. Licenses: Licenses for which you have to pay fees

is also a form of tax. Examples drivers
license, TV license etc.

17. Rates: Tax charged by the municipality on

immovable property. The rate is based
on the area and type of property. This tax
is not paid to the SARS (South African
Revenue Service)

18. PAYE (PAY AS YOU EARN) Tax an employer deducts from his
employees income which is paid to
SARS. The employer deducts one-
twelfth of the estimated tax that the
employee will pay at the end of the year.

19. Provisional tax: Taxpayers whose income is not fixed pay

tax twice a year based on their estimated
taxable income.

20. Interest rate: The rate at which borrowers pay interest

for the money they borrow from lenders.
Interest rates go up and down as supply
and demand for money changes.

21. Repo rate: Interest rate charged by the South

African Reserve Bank to major banks.

22. Simple Interest: It is calculated on the principal (original)

amount. Interest will be added to the total
amount that must be repaid every year.

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23. Compound interest Interest is added to the original principal
amount. The interest that has been
added also earns interest.

24. Inflation: The rise in the prices of goods and

services, measured over a specific
period and a drop in the purchasing
power of money.

25. Inflation rate: The percentage at which the price of

goods and services increases in a year.

26. Consumer price index (CPI): The measure that helps to calculate the
increases in prices and the inflation rate.
It is used to measure the changes in the
economy as well as the changes in the
standard of living.

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