Chapter 6

Those Pesky Robocalls

Every day American consumers report tens of thousands of illegal robocalls to the Federal Trade Commission, and now the FTC is helping put that information to work boosting industry efforts to stop unwanted calls before they reach consumers.

Under a new initiative announced by the FTC, when consumers report Do Not Call or robocall violations to the agency, the robocaller phone numbers consumers provide will be released each day to telecommunications carriers and other industry partners that are implementing call-blocking solutions.

Unwanted and illegal robocalls are the FTC’s number-one complaint category, with more than 1.9 million complaints filed in the first five months of 2017 alone. By reporting illegal robocalls, consumers help law enforcement efforts to stop the violators behind these calls. In addition, under the initiative announced today, the FTC is now taking steps to provide more data, more often to help power the industry solutions that block illegal calls.

For more information, click here.

Teaching Suggestions

  • Ask students if they have received robocalls and what was their response to such illegal calls?
  • Let students debate the issue of whether robocalls should be outlawed.

Discussion Questions

  1. Why is the consumer complaint data so crucial for the FTC to call-blocking solutions?
  2. How will the FTC attempt to stop unwanted robocalls before they reach consumers?
Categories: Chapter 6, Consumer Complaints | Tags: , | Leave a comment

Vending Machines for Cars?

Believe it or not, you can buy a car from a vending machine.  Carvana has created an eight-story high glass structure holding 30 cars. The online auto retailer opened its first vehicle vending machine in Nashville, Tennessee, and also has locations in Austin, Houston, and San Antonio, Texas. Payment, financing, and trade-ins are arranged online.  Free delivery is offered in the areas served.  However, buyers have the option of receiving an oversized Carvana coin to drop in a slot to automatically move the car to the delivery bay ready to drive.

For additional information on Carvana, click here.

Teaching Suggestions

  • Have students search for a website or app related to car buying services that was not available a few years ago.
  • Have students talk with others about their car buying experiences. Ask students to propose an app or website that would improve car buying activities.

Discussion Questions 

  1. What benefits are associated with this type of motor vehicle buying process?
  2. Describe common mistakes people might make when buying a motor vehicle?
Categories: Chapter 6, Purchasing Strategies | Tags: , | Leave a comment

Monthly Actions to Save $1,000

Many people in our society are not able to save.  They are barely able to cover their monthly expenses.  However, there are some actions that can help you get on a path to saving.

In the first month, open an online bank account and deposit a minimum amount, such as $5.  This is a very important first step.  In month two, save $15 (or more) in your online savings account.  One way to do this is with Paribus, an online tool that searches various retailers to determine if you are owed money for past purchases as a result of a price drop.

Your goal for month three is to work toward savings $100.  This could be accomplished by signing up with market research companies to participate in providing opinions. Or, you could try selling old items online. By consistently using various ideas for earning extra money, you should be able to save $100 a month.

For additional information on starting a savings program, click here.

Teaching Suggestions

  • Have students to talk various people to determine actions they take to reduce spending or earn extra money.
  • Have students create a summary presentation describing actions that might be taken to increase a person’s savings.

Discussion Questions 

  1. Describe attitudes and behaviors that might result in people not being able to save for the future.
  2. What are actions you have taken to reduce spending and to earn extra money for savings?
Categories: Budget, Chapter 2, Chapter 6, Wise Shopping | Tags: , | Leave a comment

Reducing Impulse Buying

All buying decisions fall into two categories: (1) items we need; and (2) items we want. Financial difficulties often occur when the categories are blurred. People try to convince themsleves that things they WANT are things they NEED, when often that is not the situation. Our true needs involve a fairly short list:  food, air, water, shelter, health care (including health insurance), clothing, and maybe…Internet access.

However, Internet access can be basis of our financial troubles. Time spent browsing online can result in many unneeded purchases.  How might you avoid this?  The following suggestions are offered:

  • Don’t buy an item right away. Delaying a purchase allows you to consider the value more carefully.
  • Review the purchases you delayed for at least a month to determine if the urge to buy the item still exists, and if the money is available.
  • Delete from your “wish list” any items that you no longer desire to buy.
  • Consider returning an item, as allowed, when the purchase does not meet your expectations.

For additional information on reducing impulse buying, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students describe purchases that might have been avoided using the suggestions above.
  • Have students talk to others to create a list of methods to reduce impulse buying.

Discussion Questions 

  1. Why are some people continually involved with impulse buying?
  2. What are the short-term and long-term financial consequences of impulse buying?
Categories: Chapter 6, Uncategorized, Wise Shopping | Tags: , | Leave a comment

Online Shopping: Tips to keep close to your wallet

Online shopping makes it easy and convenient to search for – and buy – the must have items on your wish list.  Before you buy, follow these tips on avoiding hassles, getting the right product at the right price, and protecting your financial information.

To make sure you’re getting the best deal, compare products.  Do research online, check product comparison sites, and read online reviews.

Confirm that the seller is legit.  Look for reviews about their reputation and customer service, and be sure you can contact the seller if you have a dispute.

Pay by credit card to ensure added protections, and never mail cash or wire money to online sellers.

Keep records of online transactions until you get the goods.

Report online shopping fraud.

For more information, click here.

Teaching Suggestions

  • Ask students if they have shopped online. If so, what have been their experiences?
  • Why is it important to confirm the online seller’s physical address and phone number?
  • If you return an item, who pays the shipping costs or restocking fee?

Discussion Questions

  1. What should you do if you get an e-mail or pop-up message that asks for your financial information while you are browsing?
  2. Why is it important to read the seller’s description of the product closely, especially the fine print?
  3. Why is e-mail not a secure method of transmitting financial information, such as, your credit card, checking account, or Social Security number?
  4. Where can you file a complaint to report online shopping fraud?
Categories: Chapter 6, Frauds and Scams, Uncategorized, Wise Shopping | Tags: , , | Leave a comment

Pokémon Go Can Cost You

Pokémon Go has resulted in a loss of money and other concerns.  In this popular game, users interact virtually with Pokémon characters placed in real world settings. The app is free to download, however there are in-app purchasing opportunities. Players are encouraged to pay for hints and tips for a competitive advantage.

In addition to financial losses, the Pokémon Go app has been used to lure robbery victims.  Other players have been robbed of their phones.  Police departments caution players to be aware of their surroundings.

Be warned that “free isn’t the same as no cost.”  Users may pay in the form of data use, legal confrontations, injuries, and reduced work productivity.  Higher insurance costs can also occur when playing the game while driving, which might result in an auto accident. Social concerns include disturbing church services and other occasions with players capturing creatures during the events.

For additional information on the cost of Pokémon Goclick here.

Teaching Suggestions

  • Have students suggest ways that an app game might be used for improved learning or assisting others in need.
  • Have students describe safety precautions when playing Pokémon Go.

Discussion Questions 

  1. Why are people attracted to the game, often with a personal or financial cost?
  2. What actions might be taken to avoid the financial and personal dangers of the game?
Categories: Chapter 2, Chapter 6, Financial Planning, Wise Shopping | Tags: , | Leave a comment

Scams, Frauds, and Consumer Complaints

Based on a recent study, chip-enabled cards used without appropriate technology and tax ID theft are the fastest-growing and most costly consumer complaints.  People are often contacted by someone claiming to be from the IRS, a utility company, or a tech-support company, and asked to send money or provide personal information. This is a common danger sign of fraud as reported in a recent study of consumer complaints by the Consumer Federation of American and the North American Consumer Protection Investigators.

This report identified the following as the top ten most common sources of consumer complaints:

  1. Motor vehicle misrepresentations in advertising along with sales of new and used cars, lemons, faulty repairs, leasing and towing disputes
  2. Home improvement, such as inferior work, and failure to start or complete the job
  3. Utility service problems and billing disputes
  4. Credit and debt concerns, such as billing and fee disputes, mortgage fraud, credit repair, debt-relief services, predatory lending, abusive debt-collection tactics
  5. Retail sales problems related to deceptive ads, defective goods, problems with gift cards and certificates, rebates and coupons
  6. Services with poor or incomplete work, lack of licensing
  7. Landlord-tenant concerns, such as unsafe or unhealthy conditions, lack of repairs, and unfair eviction
  8. Furniture, appliances, and household products that are faulty or not properly repaired
  9. Health products and services with misleading claims
  10. Fraud and scams, such as phony sweepstakes, work-at-home schemes, deceptive online sales

Two additional recently reported scams are the “grandparent scam,” in which a phony grandchild calls an older person claiming to need quick cash for an emergency.  With the CEO scam, employees are contacted with what appears to be an email from their company asking them to wire money to a foreign supplier for a deal that needs to close immediately with a promise to be reimbursed.

For additional information on current frauds and scams, go to:

Link #1

Link #2 

Teaching Suggestions

  • Have students present a talk with actions that might be taken to avoid consumer scams.
  • Have students create a list of common consumer complaints among their friends.

Discussion Questions 

  1. Why are people often victims of consumer frauds?
  2. What are common suggestions for avoiding various consumer scams and frauds?
Categories: Chapter 6, Consumer Complaints, Frauds and Scams | Tags: , | Leave a comment

Ways to Reduce Environmental Impact and Save Money

To save money and help improve the environment, 20SomethingFinance.com suggests that you:

  • grow your own food and buy from local sources.
  • replace meat in meals with beans and vegetables.
  • bring your own containers to buy bulk items.
  • use refillable drink bottles.
  • ride a bike instead of driving.
  • use a low-flow showerhead.
  • sell items not being used; buy used items instead of new.

For additional information on saving the environment and money, click here.

Teaching Suggestions

  • Have students ask people to describe environmental-saving actions commonly used.
  • Have students create a promotional plan to create awareness of money-saving actions that are also environmental friendly.

Discussion Questions 

  1. What are benefits and drawbacks of environmental-saving actions?
  2. What factors might be considered when taking actions that save money and improve the environment?
Categories: Budget, Chapter 2, Chapter 6, Purchasing Strategies, Wise Shopping | Tags: , | Leave a comment

Tips and tricks for Impulse purchases

You are in line at your local grocery store and all the snacks, candy, and cheap gadgets are beckoning to be picked up and added to your shopping bag.  You are shopping on-line and you only need to spend $8 more to get free shipping.  How do you avoid falling prey to impulse buying?  How are marketers reducing friction to get you to buy more stuff?  As a consumer, factoring in additional transaction costs will help you avoid making impulse purchases.

The following article provides way to help you avoid adding impulse purchases, such as:

  1. Carrying cash.
  2. Making it a struggle to get out your credit card.
  3. No more one-click purchasing.
  4. No more e-tailer memberships.
  5. Having an accountability buddy.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the importance of carefully watching your spending.
  • Have the students record all purchases for one week and see how much money is spent by the class in total on impulse purchases.
  • Stress the importance of having a budget and sticking to it.

Discussion Questions

  1.  Ask students to recall a time when they were able to resist the urge to make impulse purchases. What were some techniques that they used?
  2. Poll students about e-tailer memberships, such as Amazon. Why did they choose to acquire the membership?  Free shipping? On-demand viewing options.
Categories: Budget, Chapter 6, Financial Planning, Wise Shopping | Tags: , | Leave a comment

Want to save money on gas?

Gas prices have been low for a few years but, it is always good to save a few more dollars!

What if you are in a new city?  Gas prices can vary by 10-15 cents per gallon in a matter of a few blocks.  How would you know where to find the cheapest gas?  Good news!  The GasBuddy app can help you find the best prices on the go.

Use this article to help you save gas money near home or away.

Did you know that you can?

  1. Use apps to find the best prices no matter where you are.
  2. Get cheaper gas by buying at certain times of day.
  3. Improve your driving and save gas money.
  4. Maintain your vehicle and save gas money.
  5. Get more rewards with your gas prices.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the importance of saving small and large amounts of money.
  • Calculate the miles a sample of students have driven in the past year and multiply by varying amounts saved (5-15 cents per gallon) to demonstrate the dollar savings potential.
Categories: Budget, Chapter 6, Financial Planning, Wise Shopping | Tags: , | Leave a comment

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