The National Association of State Treasurers Foundation presents:

Tomorrow's Money for Today's Woman

Buying a Cell Phone

In the past you were tethered to a landline to make a call.  Today’s technology makes it possible to talk with your friend in Baltimore while basking on the beaches of Belize.  Mobile, or cell phones, are great conveniences, but how do you know what kind of phone plan you need or what kind of phone to pick?

Choosing a plan that doesn’t meet your phone use habits or selecting a cell phone provider that doesn’t provide the coverage you need can be more than just inconvenient…it can end up costing you a lot of money!  It’s important to know the basics of what’s involved in buying a cell phone before you sign a cell phone contract.  Let’s look at what to consider when buying a cell phone.

The first thing to know is that “buying a cell phone” actually involves three separate things:

1. Choosing phone service through a carrier (the ability to make calls through companies like Sprint, AT&T, T-Mobile, Alltel, Cellular One, U.S. Cellular, MetroPCS and Verizon Wireless)
2. Choosing a phone calling plan that outlines how much time you get on your phone for a set period of time (usually monthly) and at what rate.  The call plan can include a host of additional costs beyond the rate per each call such as upfront activation costs, additional features such as ring tones, call forwarding, voice mail, etc.,
3. Choosing an actual phone or “handset”

Let’s look at each component and what to ask or consider when comparing cell phones.