Wise Shopping

Trick yourself into saving

Posted on November 26, 2014 by Melissa Hart

Saving money can be automatic with some simple actions that would reduce your monthly spending. Some actions, which can include lowering your monthly cash outflows by as much as $400, include:

Using a programmable thermostat which can be used to automatically raise and lower the temperature in your home, resulting in energy savings.
Increasing insurance deductibles for your home and auto insurance which will likely result in an annual savings of several hundred dollars.
Practicing less aggressive driving; using a constant speed can save money on fuel costs.
Seeking out ways to reduce your communication bills, such as using basic cable along with streaming video on your computer. Also, using a free texting app on your phone.
Using a refillable water bottle can save hundreds of dollars by not buying bottled water.

To ensure that you actually save this money, each month, have funds automatically moved into a savings account or investment program.
For additional information on saving, go to:

http://www.bankrate.com/finance/video/saving-money/trick-yourself-into-saving.aspx#ixzz3IKDG71pN

Teaching Suggestions

Have students conduct online research to determine various actions to reduce spending and increase savings.
Have students interview several people to determine various actions that might be considered for reducing spending.

Discussion Questions

What actions have you taken to reduce spending and increase savings?
Explain short-term and long-term benefits of reduced spending.

Categories: Car Insurance, Chapter 2, Chapter 6, Financial Planning, Health Insurance, insurance, Purchasing Strategies, Savings, Wise Shopping | Tags: money management, wise buying | Leave a comment

Is That Health Insurance Website for Real?

Posted on November 5, 2014 by Melissa Hart

Shopping for health insurance online? Before making your final purchase – read on. Health insurance scams have been preying through websites selling medical discount plans.

According to the complaint in a recent case FTC settlement, IAB Marketing Associates, LP et al. , was a sham nonprofit trade association offering memberships suggesting it would provide consumers with a comprehensive medical insurance plan. Here’s how it worked: people shopping for health insurance online would come across websites quoting prices for health insurance plans once they entered their personal information. The websites acted like collection baskets: they asked for contact information, age, occupation, marital status-and whether folks had health insurance or pre-existing medical conditions. IAB telemarketers then called people who provided their information on these websites and used aggressive tactics to sell IAB memberships. As long as people paid upfront fee and made monthly payments – both ranging from $40 – $1,000 – they were promised a comprehensive health insurance plan that covered virtually every medical procedure and illness

Or so they thought.

The truth? According to the Federal Trade Commission (FTC), consumers never were enrolled in a comprehensive health insurance plan. The IAB plan was essentially a medical discount plan, offering, if it existed, limited discounts and reimbursements on visits to certain doctors or hospitals. Many consumers who suffered an accident or illness were shocked to find that their IAB “health plan” covered very few, if any, medical expenses, leaving them with major medical bills.

For additional information go to:

http://www.consumer.ftc.gov/blog/health-insurance-website-real

Teaching Suggestions

Ask students why they should research a company before providing their personal information.
Where can students file a complaint if they suspect a health insurance scam?

Discussion Questions

How can consumers protect themselves from such scams?
Should consumers provide personal information on the web?

Categories: Chapter 9, insurance, Wise Shopping | Tags: Government Health Care Programs | Leave a comment

Creating a Low-Cost Food Plan

Posted on October 1, 2014 by Melissa Hart

Spending on food can represent as much as one-third of a household budget. Despite careful shopping many consumers are able to reduce this expenditure since they want to buy organic, eat a lot of produce, and buy high quality ingredients for cooking at home.

For better shopping (and healthier eating), especially with the possibility of higher food costs in the future (due to rising oil prices, drought, and massive food shortages), consider these suggestions:

reduce the variety of foods eaten; focus on 20 items or less
limit portions
buy seasonal produce
find substitutes for foods with the largest price increases
simplify your meal planning
reduce use of expensive herbs, spices, and other seasonings
avoid caffeine, alcohol, over-processed foods, fad-diet foods, and pricey meats

For additional information on creating a low-cost food plan go to:

http://20somethingfinance.com/low-cost-food-plan/

Teaching Suggestions

Have students interview some friends and family members about their food buying activities.
Have students create a video presentation with wise food buying strategies.

Discussion Questions

What are short-term and long-term benefits (financial and others) of wise food buying and eating healthier?
What are some wise food buying techniques that may be commonly overlooked?