Question of the Day

Budgeting #54

Rank the following cost components for a cup of coffee from largest to smallest:

• milk
• cups/napkins
• shop costs/rent
• coffee
• staff costs

www.ngpf.org Last updated: 5/22/19

1. Shop costs/rent (35%)
2. Staff costs (25%)
3. Cups/Napkins (7%)
4. Milk (4%)
5. Coffee (4%)

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Follow Up Questions

1. Does it surprise you that the basic coffee you purchase from Starbucks for $2.50 has about $0.10 worth of coffee in it?
2. Why do you think the appeal to purchase coffee at a coffee shop is so strong when one can make it at home for a fraction of the cost?
3. Can you think of other items where the cost of what you are actually purchasing is a fraction of the price that you are paying for it?

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