Chapter 6

Ways to Reduce Environmental Impact and Save Money

Posted on May 28, 2016 by Melissa Hart

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

Posted on April 9, 2016 by Melissa Hart

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?

Posted on April 2, 2016 by Melissa Hart

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

Low Gas Prices Are Set to Spur Holiday Spending

Posted on November 28, 2015 by Melissa Hart

“Falling gas prices have put consumers in a good mood.”

According to a survey conducted by the National Association of Convenience Stores (NACS), more than 4 in 5 Americans indicate falling gas prices impact their feelings about the nation’s economy and as a result they will spend more during the upcoming holiday season.  In fact, more than one in four consumers (26 percent) expect to increase their spending during the 2015 holiday season–a 7-point jump over the past month and the highest percentage this year.  Also the survey finds that women are more optimistic than men.  For retailers, this statistic is even more encouraging because women do more holiday shopping when compared to men.

For more information, click here.

Teaching Suggestions

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

  • Discuss how holiday spending impacts a family’s budget.
  • Describe methods that consumers can use to save the money and budget for holiday spending.

Discussion Questions

  1. Does the price of gasoline affect your spending on other items such as food, clothing, medicine, luxury items, and gifts?
  2. How can you avoid spending “too much” during the holiday season?
  3. What steps can you take to save the money needed for gifts and other holiday expenses?
Categories: Budget, Chapter 2, Chapter 6, Economy, Purchasing Strategies, Wise Shopping | Tags: , , , | Leave a comment

Internet Fraud

Posted on October 24, 2015 by Melissa Hart

How many people are scammed into sending money or giving personal information each year?
Answer: Millions!!

Types of Internet Fraud

  • Internet auction fraud—involves the misrepresentation of a product advertised for sale on an Internet auction site, or non-delivery of merchandise.
  • Credit card fraud—the unauthorized use of credit/debit card, or card number, scammers fraudulently obtain money or property.
  • Investment fraud—an offer using false claims to solicit investments or loans, or providing purchase, use, or trade of forged or counterfeit securities.
  • Nigerian letter or “419” fraud—named for the violation of Section 419 of the Nigerian Criminal Code, it combines the threat of impersonation fraud with a variation of an advance fee scheme in which a letter, e-mail, or fax is received by a victim.

Tips for Avoiding Internet Fraud

  • Know your seller – If you don’t know who you are buying from online, do some research.
  • Protect your personal information – Don’t provide it in response to an e-mail, a pop-up, or website you’ve linked to from an e-mail or web page.

For more information, click here.

Teaching Suggestions

  • Bring to class Internet-related problems and examples of individuals or families. Suggest ways in which these problems might be solved.
  • Compile a list of places and organizations where a person can call to report Internet fraud.

Discussion Questions

  1. While the Internet makes everyday tasks faster and more convenient, like stopping, banking, and communicating, why it’s important to be safe, secure, and responsible online.
  2. What are some basic precautions we can take to protect our computer and personal data from theft, misuse, and destruction?
Categories: Chapter 6, Credit Cards, Frauds and Scams, Identity Theft | Tags: , , , | Leave a comment

THINGS NOT TO BUY

Posted on April 1, 2015 by Melissa Hart

To avoid wasting money, financial experts suggest cutting back on items that might not best serve your needs, such as:

  • cable television, since there are less expensive alternatives such as online streaming, which save a person over $800 a year.
  • name-brand razor blades costs can be reduced by using a membership program or by shopping at a discount retailer.
  • bottled water costs can reduced by using a home purification system.
  • USB drive costs can be reduced with the use of cloud storage.

For additional information on wise buying, click here:

Teaching Suggestions

  • Have students talk to others and create a list of items on which money is often wasted.
  • Have students suggest lower-cost alternatives for various items that are purchased regularly.

Discussion Questions 

  1. What actions can be taken to find low-cost alternatives for items that are purchased frequently?
  2. Explain short-term and long-term financial benefits of saving money on items that are purchased frequently.
Categories: Chapter 2, Chapter 6, Wise Shopping | Tags: , | Leave a comment

Financial advice for singles

Posted on March 25, 2015 by Melissa Hart

Since they usually have fewer financial responsibilities, singles have a greater opportunity to save for a future family, advanced career training, or long-term financial security (retirement). Singles are also able to share their time (volunteering), talents (teaching others skills/knowledge they possess), and treasures (financial donations) to address local and global concerns related to education, hunger, safe water, health care, job training, and other social issues. Single people, as well as others, may take advantage of free community events, doing volunteer work, and using barter/exchange platforms to share recreational facilities, events, and experiences.

For additional information on financial advice for single, click here:

Teaching Suggestions

  • Have students talk with others who are involved in addressing various social concerns through volunteering and other community service activities.
  • Have students survey several people to determine various actions that might be considered for achieving financial goals.

Discussion Questions 

  1. How does your life situation affect your financial responsibilities and spending?
  2. What short-term and long-term financial goals are you planning for at this point in your life?
Categories: Chapter 2, Chapter 6, Financial Planning, Wise Shopping | Tags: , , | Leave a comment

Tax Scams

Posted on March 4, 2015 by Melissa Hart

Phone calls from criminals impersonating an Internal Revenue Service agent are the most common and serious tax scams reported by the IRS. Taxpayers should be aware the IRS never calls demanding payment or to ask for a credit card; the agency will first make contact by mail.

Phishing involves a taxpayer receiving an unsolicited email trying to obtain financial or personal information.  These phony emails often look very official with an IRS logo.  Tax-related identity theft occurs when a stolen a Social Security number is used to file a tax return for a refund.  Fraudulent tax preparation services prey on innocent taxpayers with promises of large refunds.  Be sure to investigate the credentials of the tax preparer and make sure the preparer will be available after April 15.  Avoid tax preparers who base their fees on a percentage of the refund or promise a large refund.

Other common tax scams include inflated refund claims, fake charities, filing false documents to hide income, abusive tax shelters, falsifying income to claim tax credits, and excessive claims for fuel tax credits.

For additional information on tax scams, click here:

Teaching Suggestions

  • Have students talk with others to obtain information about actions taken to file their taxes.
  • Have students prepare a list of warning signs of tax scams.

Discussion Questions 

  1. What attitudes and behaviors can result in a person being a victim of a tax scam?
  2. What actions can taxpayers take to avoid being a victim of a tax scam?
Categories: Chapter 3, Chapter 6, Frauds and Scams, Taxes | Tags: , , | Leave a comment

Wedding Costs and Marriage Success

Posted on February 7, 2015 by Melissa Hart

The average cost of a wedding is nearly $30,000 and the average engagement ring cost is about $5,500.  However, a high-cost wedding does not ensure a long-term marriage.  A study by two economists at Emory University concluded that “marriage duration is inversely associated with spending on the engagement ring and wedding ceremony“.

Other findings of the research included:

  • spending between $2,000 and $4,000 on an engagement ring was associated with a 1.3 times greater chance of divorce compared to spending between $500 and $2,000.
  • spending between $2,000 and $4,000 on the engagement ring was associated with two to three times the probability of reporting being stressed about wedding-related debt relative to spending between $500 and $2,000.
  • spending less than $1,000 on the wedding is associated with an 82 to 93 percent decrease in the chance of reporting being stressed about wedding-related debt relative to spending between $5,000 and $10,000. 

While money is important in marriage and life, being materialistic can result in relational difficulties.

For additional information on the wedding costs and marriage success, click here:

For the research paper, click here:

Teaching Suggestions

  • Have students research actions that may be taken to reduce wedding costs.
  • Have students interview people about their experiences related to planning a wedding. 

Discussion Questions 

  1. What financial difficulties might result from overspending for a wedding?
  2. How might a couple reduce weddings costs?
  3. Describe actions that might be taken to as alternatives for an expensive wedding.
Categories: Chapter 1, Chapter 2, Chapter 6, Debt, Financial Planning, Wise Shopping | Tags: , , | Leave a comment

Auto Dealer Financing

Posted on January 17, 2015 by Melissa Hart

You want a car and need financing, but your credit isn’t so great.  Most dealerships have a Finance and Insurance (F&I) Department that will tell you about their financing options.  To get the process started, the F&I Department will ask you to complete a credit application, which includes your monthly income and information on current credit accounts, including debt you owe.

At least that is how it’s supposed to work.  But there have been reports that some dealers inflate your income information for the financing without your knowledge.  That can cause you serious financial harm.  You could be saddled with car financing that you can’t afford to repay.  That means your car could be repossessed and your credit score could take a hit.

The Federal Trade Commission has a few tips to help you avoid unscrupulous finance deals:

  • Consider your options for financing. You might be able to arrange financing directly with a credit union or finance company before you pick a car.
  • Research the dealer before visiting the sales lot. Check the dealer’s reputation online by searching for the company’s name with words like “scam,” “rip-off,”or “complaint.”
  • If a dealer encourages you to overstate your income, take it as a sign that the dealer is not reputable, and leave the dealership.
  • Ask to see the credit application, completely filled out, before you sign it. Make sure your income and other personal information is correctly listed.

For more information, click here:

Discussion Questions

  1. Why is it important to consider other sources of financing before visiting an auto dealer?
  2. What might be the consequences if an auto dealer inflates your income?

Teaching Suggestions

  1. Have students visit an auto dealership to gain additional insight into this high-cost financing service.
  2. Have students make a short presentation with a summary of their findings.
Categories: Chapter 5, Chapter 6, Financial Services | Tags: , | Leave a comment

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