Chapters

EXTREME COUPONING

Posted on November 9, 2024 by Melissa Hart

With high and increasing grocery costs, coupons can save you money. Extreme couponing involves going beyond an ordinary clipping of coupons to create a plan to use coupons from multiple sources to maximize savings.

To take advantage of these savings, consider these actions:

  • Know the main coupon types. Retailer coupons may only be used at the store for which they were issued. Manufacturer coupons are issued for use when buying the product of a specific company. Try to use both types for one purchase for items on sale to achieve the greatest savings.
  • Locate coupons. In addition to traditional coupon sources (newspaper inserts, in-store flyers, store receipts, in the mail, on product packages, local coupon books), obtain coupons through apps, websites, email promotions, and loyalty, and frequent buyer programs.
  • Be aware of store policies. As you plan a coupon strategy, check for any retailer restrictions, such as the number of the same type of coupon you can use per day or if they accept competitor coupons.
  • Organize your coupons. An extreme couponing strategy requires time, effort, and planning. Review your shopping list and identify the stores where you would get the best deal on each item. You may plan a different shopping list for different stores. Sort coupons based on expiration dates. A digital coupon may allow use of the same coupon multiple times at different stores or on different dates.

Be sure to avoid two common couponing mistakes: (1) Compare prices at various stores and brands; the store brand of an item may give you a better value than a name brand item with a coupon. (2) Don’t buy things you don’t need or won’t use just because you have a coupon; use a shopping list to stay within your budget.

In addition to coupons, apps available to save money when shopping include:

  • Ibotta provides cashback offers on selected products.
  • Fetch earns points that are redeemable for gift cards.
  • PayPal Honey offers discounts when making online purchases.
  • RetailMeNot has cashback offers when shopping at over 1,200 retailers.
  • Groupon offers discounts on various services, attractions, and activities.
  • Capital One Shopping provides price alerts, coupons, and price comparisons.
  • Krazy Coupon Lady allows access to many coupon sources and current best deals.

For additional information on extreme couponing, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students talk to others who have used coupons to obtain suggested wise shopping tips.
  • Have students create a visual proposal (poster, slides, video) with coupon shopping ideas and other wise buying tips.

Discussion Questions 

  1. What are the benefits and drawbacks of using an extreme couponing strategy?

In addition to coupons, what are some shopping actions for saving money?

Categories: Chapter 6, Wise Shopping | Tags: | Leave a comment

Ascend Ecom: AI-Powered Fake Business Opportunity

Posted on October 26, 2024 by Melissa Hart

The Federal Trade Commission  (FTC) has filed a lawsuit against an online business opportunity scheme that it alleges has falsely claimed its “cutting edge” AI-powered tools would help consumers quickly earn thousands of dollars a month in passive income by opening online storefronts. According to the complaint, the scheme has defrauded consumers of at least $25 million.

The scheme is run by William Basta and Kenneth Leung, and it has operated under a number of different names since 2021, including Ascend Ecom, Ascend Ecommerce, Ascend CapVentures, ACV Partners, ACV, Accelerated eCom Ventures, Ethix Capital by Ascend, and ACV Nexus.

According to the FTC’s complaint, the operators of the scheme charge consumers tens of thousands of dollars to start online stores on ecommerce platforms such as Amazon, Walmart, Etsy, and TikTok, while also requiring them to spend tens of thousands more on inventory. Ascend’s advertising content claimed the company was a leader in ecommerce, using proprietary software and artificial intelligence to maximize clients’ business success.

The complaint notes that, while Ascend promises consumers it will create stores producing five-figure monthly income by the second year, for nearly all consumers, the promised gains never materialize, and consumers are left with depleted bank accounts and hefty credit card bills. The complaint alleges that Ascend received numerous complaints from consumers, pressured consumers to modify or delete negative reviews of Ascend, frequently failed to honor their “guaranteed buyback,” and unlawfully threatened to withhold the supposed “guaranteed buyback” for those who left negative reviews of the company online.

As a result of the FTC’s complaint, a federal court issued an order temporarily halting the scheme and placing it under the control of a receiver. The FTC’s case against the scheme is ongoing and will be decided by a federal court.

The Commission vote authorizing the staff to file the complaint was 5-0. The complaint was filed in the U.S. District Court for the Central District of California.

For more information, go to:

FTC Announces Crackdown on Deceptive AI Claims and Schemes | Federal Trade Commission

Teaching Suggestions:

  • Create a list of factors to consider when investing in “passive” income business opportunities.
  • Ask students to make a list of alternative methods of investing in “passive” income businesses.
  • Have students recommend situations where it would be appropriate to invest in alternative investments.

Discussion Questions:

  1. Why did the Federal Trade Commission file a lawsuit against Ascent Ecom?
  2. Why do you think the corporate defendants use different names, such as, Ascend Capventures, ACV Nexus, Ethics Capital by Ascent, etc.?
  3. Does Ascend Ecom’s business opportunity seem genuine to you?  Explain your answer.
Categories: Chapter 7, Frauds and Scams | Tags: , | Leave a comment

ZOMBIE MORTGAGES AND PIGGYBACK LOANS

Posted on October 12, 2024 by Melissa Hart

Homeowners are being surprised with collection notices for amounts from ten or twenty years ago. Zombie mortgages are unpaid home loans that a homeowner thought had been discharged or foreclosed. This situation is usually the result of an incomplete or improper foreclosure process. Or the homeowner vacated the property believing it had been foreclosed.

These zombie mortgages often resulted from piggyback loans taken out previous to the 2008 financial crisis but also occur from any old, unpaid mortgage. A piggyback mortgage, also known as an 80/20 loan, is two loans in one – a primary loan for 80 percent of the purchase price, and a second loan for the other 20 percent. This allowed a homebuyer to finance 100 percent of the purchase.

When home values declined, many buyers were not able to make payments on one or both loans, resulting in foreclosure proceedings. Since many lenders stopped contacting borrowers, the homeowners assumed their loans were written off and no longer owed…until recently!! Now, lenders and debt collectors are attempting to collect on these loans.

Consider these actions to avoid difficulties associated with a zombie mortgage. Be informed about your mortgage situation and foreclosure status. Obtain legal guidance to finalize foreclosure proceedings. Communicate with the lender to confirm proper completion of foreclosure processes and to verify mortgage records for any unresolved issues. Finally, obtain assistance from the Consumer Financial Protection Bureau at https://www.consumerfinance.gov/

For additional information on zombie mortgages, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students search online for additional information on zombie mortgages and piggyback loans.
  • Have students create a podcast that communicates the dangers associated with a zombie mortgage.

Discussion Questions 

  1. What situations can result in a zombie mortgage?
  2. Describe actions a person might take to avoid a zombie mortgage.   

Categories: Chapter 7, Financing a Home | Tags: , | Leave a comment

Most Frequently Impersonated Companies

Posted on September 28, 2024 by Melissa Hart

New data from the Federal Trade Commission shows that Best Buy/Geek Squad, Amazon, and PayPal are the companies people report scammers impersonate most often.

A newly released data spotlight shows that consumers in 2023 submitted 52,000 reports about scammers impersonating Best Buy or its Geek Squad tech support brand, followed by about 34,000 reports about scammers impersonating Amazon. PayPal was the third-most impersonated company with about 10,000 reports from consumers.

When it comes to the amount lost, though, consumers reported losing far more money to scammers impersonating Microsoft and Publishers Clearing House than any other companies. Consumers reported losing a total of $60 million to Microsoft impersonation scams and $49 million to Publishers Clearing House impersonation scams.

The FTC recently finalized its new rule on government and business impersonation, which gives the agency stronger tools to combat and deter scammers who impersonate government agencies and businesses, enabling the FTC to file federal court cases seeking to get money back to injured consumers and civil penalties against rule violators.

The spotlight also outlines the most common forms of payment people reported scammers used to steal money in 2023. Scammers requested a variety of payment methods, including cryptocurrency and bank transfers, which were the top methods used by investment scammers, according to the data spotlight. Other frequently reported payment methods included payment apps or services and gift cards. The top payment apps and services people reported paying with were PayPal, CashApp and Zelle, while the most reported gift cards were Apple and Target.

For More Information, click here.

New FTC Data Shed Light on Companies Most Frequently Impersonated by Federal mmission

Teaching Suggestions

  • Ask students if they or their friends have had any experience with scammers impersonating well-known companies. If so, what actions were taken to ward off the scammers?
  • Ask students to prepare a list of actions they might take if a scammer approaches them.

Discussion Questions

  1. Why are Best Buy or its Geek Squad, Amazon, and Pay Pal the most impersonated companies?
  2. What can local, state, and federal regulatory agencies do to protect consumers from these impersonators?
  3. What should you do if you are targeted by an impersonator/scammer?
Categories: Chapter 6, Frauds and Scams | Tags: , | Leave a comment

Government Impersonation Scammers

Posted on September 14, 2024 by Melissa Hart

New Federal Trade Commission data reveals that government impersonation scammers are targeting consumers for payments in cash, with the amount of cash reported lost to these scams nearly doubling from 2022 to 2023.

The FTC data shows that consumers reported losing $76 million when paying cash to government impersonation scammers in 2023, up from $40 million in 2022, an increase of 90 percent. In just the first quarter of 2024, consumers have reported losing $20 million to government impersonation scams when paying with cash.

The median loss for consumers who reported paying cash to government impersonation scammers in the first three months of 2024 was $14,740 – far higher than for any other method of payment. Consumers have reported mailing cash as well as handing cash to drivers sent to collect the money.

Scammers frequently impersonate government agencies, from local police to federal agencies, and while details of the pitch may vary, a common element is that the consumer they are targeting needs to send or transfer money to address an urgent issue or serious problem. This news is usually accompanied with a combination of dire warnings or threats designed to put their target in a state of mind where the urgency of the moment bypasses any doubts they have.

The key fact is this: government agencies will never call, email, text, or message you on social media to ask for money or personal information, and they will never demand a payment. Only a scammer will do that.

The FTC recently put into effect a new rule that gives the agency stronger tools to combat and deter scammers who impersonate government agencies and businesses, enabling the FTC to file federal court cases seeking to get money back to injured consumers and civil penalties against rule violators.

Consumers who are targeted by a government impersonation scam should report it to the FTC at ReportFraud.ftc.gov. More data about government impersonation scams is available on the FTC’s data dashboards.

For more information, click here.

Teaching Suggestions

·         Ask students if someone they know has been scammed by government impersonation scammers. If so, what was their experience?

·         Ask students to prepare a list of actions they might take if a government impersonation scammer approaches them.

Discussion Questions

1.      What can governmental agencies do to stop these impersonators?

2.      Once apprehended, should the perpetrators be fined or sent to prison? Any other penalties?

3.      What should you do if you are targeted by a government impersonation scammer?

Categories: Chapter 6, Frauds and Scams | Tags: , | Leave a comment

Home and Auto insurance costs

Posted on August 31, 2024 by Melissa Hart

Each insurance company uses many factors to calculate what they charge a customer for home and auto insurance.

Some factors are about you, your home, or your car.

For home insurance, common factors include:

  • Your home’s age.
  • How old your roof is and what it’s made of.
  • Where you live.
  • The cost to replace your house.
  • Your claim history.
  • Your credit score.

For auto insurance, common factors include:

  • Your driving record and claims history.
  • Where you live and how much you drive.
  • Your age, gender, and marital status.
  • Your occupation.
  • The cost to replace the car you drive.
  • Your credit score.

A change in any factor can raise or lower your premium. This includes characteristics that change over time, such as the value of your home or auto.

For More Information, click here.

Teaching Suggestions

  • Ask students to make a list of major factors that most insurance companies use to calculate your premiums for home and auto insurance.
  • Have students talk with an insurance agent or financial planner to obtain recommendations about the types of insurance you may need for home and auto insurance.

Discussion Questions

  1. Why do insurance companies consider your credit score in determining your home and auto insurance premiums?
  2. In your opinion, what should be the main factors used to determine the amount a person pays for auto insurance?
Categories: Car Insurance, Chapter 8, Home Insurance, insurance | Tags: , | Leave a comment

CREDIT DENIED?

Posted on August 17, 2024 by Melissa Hart

Did you apply for credit and get turned down? Or did a lender offer you less favorable terms for credit? If so, they have to give you a notice with certain information. Improving your credit may take some time, but taking some steps will help you do it.

How to improve your credit? If your report is accurate but you want to improve your credit:

  • Know how to find legitimate help. A reputable credit counseling organization will spend time discussing your entire financial situation with you before coming up with a personalized plan to handle your money problems. They won’t promise to fix all your problems or ask you to pay before doing anything.
  • Know what negatively impacts your credit score.
    • Paying bills late. If you think you might be late on a bill, call the company you owe money to. Explain that you’re having trouble paying your bill and ask for a payment plan.
    • Keeping balances high. Credit scoring models look at how close you are to being “maxed out,” so try to keep your balances low compared to your total credit limit. Check your credit card limits — and pay down your balances, if you can. If the creditor says you were denied credit or more favorable rates because you’re too near your credit limits on your credit cards, you may want to reapply after you pay down your balances.
    • Frequent credit applications. Many scoring models look to see if you’ve applied for credit recently. If you’ve applied for too many new accounts, or taken out large amounts of new credit, it could hurt your score.

For More Information, click here.

Teaching Suggestions

  • Have students talk to others to determine how they first established credit.
  • Ask students to make a list of actions they can take to improve their credit.

Discussion Questions

  1. What factors can affect whether you can get credit, as well as the price you pay to get it?
  2. Should you hire a credit repair company to help you fix mistakes in your credit report? Or, can you do it for yourself at little or no cost?
Categories: Chapter 5, Credit Scores, Wise Shopping | Tags: , | Leave a comment

SHRINKFLATION AND SKIMPFLATION

Posted on August 3, 2024 by Melissa Hart

Over the years, companies have raised prices through shrinkflation, in which the price of an item stays the same while the package size is reduced. A sports drink bottle is now 28 ounces instead of 32 ounces, or the “half gallon” ice cream carton is now 1.5 quarts or smaller. However, the price has stayed the same or perhaps increased. 

Other examples of companies downsizing products without downsizing prices include air-filled chip bags, smaller soup cans, and reduced size detergent packages. This marketing strategy is not new.  One of the first examples was years ago when a coffee company reduced its one-pound can to 13 ounces.

Similarly, skimpflation occurs when lower-quality materials are used in products like paper towels or cheaper ingredients in microwave dinners and restaurant meals, while prices remain unchanged. This also occurs when a hotel reduces the frequency of room cleaning or offers fewer food options for the complimentary breakfast.

While shrinkflation can be measured in government cost-of-living statistics, skimpflation is much harder to compute. If a paper towel roll costs the same with fewer sheets (shrinkflation) that will show up as a unit cost increase (inflation). However, if the paper towel roll is the same size but with inferior material quality (skimpflation), this change is not reflected in inflation statistics.

To get the best value for your money, consumers are encouraged to: (1) continue to use unit pricing to compare package sizes; (2) compare prices at several stores; (3) search online for digital coupons and rebates; and (4) read reviews of other consumers for information on changing product quality.

For additional information on shrinkflation, click here.

Video link: click here.

Teaching Suggestions

  • Have students find examples of shrinkflation and skimpflation for various products and services.
  • Have students create a visual (poster or slide presentation) that compares examples of shrinkflation and skimpflation.

Discussion Questions 

  1. Describe actions a person might take to stay aware of shrinkflation and skimpflation.
  2. How can a person assess changes in product or service quality to continue to make wise consumer choices?
Categories: Chapter 1, Chapter 6, Wise Shopping | Tags: , | Leave a comment

PRICE COMPLEXITY FOR FINANCIAL SERVICES

Posted on July 20, 2024 by Melissa Hart

Many bank accounts, credit cards, mortgages, and auto loans have add-on fees to confuse consumers resulting in higher amounts paid for these services. A recent experiment conducted by the Consumer Financial Protection Bureau (CFPB) was designed to study these fees. The research results suggested that consumers pay more when prices are separated into multiple fees with a complex pricing structure.  

While the study may not exactly reflect real-world transactions, the CFPB study indicated that more complex pricing mostly led to more expensive outcomes. Key findings included: (1) higher total prices with sub-prices than one total price; and (2) difficulty in comparing prices among different financial-service providers.

The fees and charges that consumers may encounter with financial services include:

  • Credit cards are affected by interest rates, late fees, balance transfer fees, annual fees, cash advance fees, and foreign exchange fees. Cards with introductory 0% APR periods are usually followed by much higher APRs. Credit card reward programs often have varied methods for earning points and redemption rules.
  • Checking and savings accounts can have monthly maintenance fees, minimum balance fees, overdraft fees, and wire transfer fees; complex tiered interest rates based on account balances; and “free” checking accounts” may require minimum balances, recurring direct deposits, or other restrictions.
  • Mortgages are available with a wide range of interest rates, fees, and terms affected by loan type, credit score, down payment, and closing costs.
  • Auto loans will have varied interest rates based on a credit score, loan term, down payment, and vehicle type. Lenders may offer promotional rates or cash-back incentives, or add-on products such as extended warranties, gap insurance, and credit life insurance.

To guide wise use of financial services, be sure to: (1) ask for a total cost with clear information of what is included; (2) compare different financial-service providers, including banks, credit unions, and FinTech companies; (3)Bottom of Form search for no- or low-minimum balance checking accounts and no-fee credit cards; (4) use ATMs in your bank’s network; and (5) avoid overdraft charges by linking your checking account to savings.

For additional information on complexity of financial service fees, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students talk to others to learn about their experiences with high fees for various financial services.
  • Have students conduct online research to compare fees and restrictions for various financial services at banks, credit unions, and other financial-service providers.

Discussion Questions 

  1. When selecting a financial service, what factors would you consider when making your final choice?
  2. What actions can a person take to avoid high banking fees?
Categories: Bank Fees, Chapter 4, Chapter 5, Chapter 7, Credit Cards, Financial Services, Financing a Home, Home Buying | Leave a comment

SKILLS FOR FINANCIAL WEALTH

Posted on July 6, 2024 by Melissa Hart

While being rich means different things to different people, certain skills and personal qualities will help you achieve financial success. These competencies include:  

  • Financial Literacy. Ongoing learning of basic money management activities will provide the foundation for wealth building.
  • Leadership and Management Skills. An ability to motivate and guide individuals and teams is required for business leadership and career growth.
  • Decision-making and Problem-Solving. Offering creative and effective solutions, especially in high-stress situations, will always be a valued leadership and career skill.
  • Negotiation Skills. Your bargaining ability will often result in more money in business and career situations.
  • Entrepreneurial Mindset. A vision for identifying and implementing business ideas requires a skillset that can be of value in nearly every life situation. The creativity, curiosity, persistence, and motivation of effective entrepreneurs will result in financial and career success.
  • Self-Discipline and Time Management. Wise time use and consistency in achieving your financial goals are fundamental for long-term money success. Committing saving and investing allows you to build wealth through the compounding effects of time value of money. 
  • Curiosity and Ongoing Learning. Awareness of new trends, technology, and markets provides guidance for both investing and emerging career opportunities.
  • Networking. Connections with others are vital for professional success and personal development. Your network can uncover opportunities and resources. Making friends, especially those in different socio-economic situations can help grow your financial potential. When low-income people interact with those with a higher income, this often results in less-affluent people considering ways to expand their saving and investing.  Bottom of Form

For additional information on skills to build wealth, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students talk to others to obtain suggestions for building wealth.
  • Have students create a visual proposal (poster, slide presentation, or video) to communicate actions that would help people improve skills for building wealth.

Discussion Questions 

  1. Which of these skills are your strongest? Which skills need to be improved?
  2. Describe actions a person might take to improve one or more of these skills.   
Categories: Career, Chapter 1, Chapter 2, Financial Planning | Leave a comment

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