your role as a consumer chapter 3. main idea: as a consumer, you play an important role in the...
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M A I N I D E A : A S A C O N S U M E R , YO U P L AY A N I M P O RTA N T R O L E I N T H E E C O N O M I C
S Y S T E M
CHAPTER 3 SECTION 1: CONSUMPTION, INCOME, AND DECISION MAKING
NOTES
• Describe the difference between disposable income and discretionary income• What three considerations should govern your
decision making as a consumer?a.b.c.
M A I N I D E A : B E WA R E O F A DV E RT I S E M E N T S
CHAPTER 3 SECTION 2: BUYING PRINCIPLES OR
STRATEGIES
VOCABULARY
• Competitive advertising• Informative advertising• Bait and switch• Comparison shopping • Warranty• Brand name• Generic brand
NOTES
• What trade offs occur when you are gathering information about a product?• What forms of advertising exist?• Based on experiences you have had, what kind of
ads should you be aware of?• How do you comparison shop?
M A I N I D E A : Y O U M U S T B E A P R O A C T I V E C O N S U M E R T O F I N D R E L I A B L E P R O D U C T S A N D S E R V I C E S .
CHAPTER 3 SECTION 3: CONSUMERISM
NOTES
• What private and federal help can you get as a consumer?• What are your responsibilities as a consumer?• A• B
ACTIVITY TO TURN IN
• Write a letter to the Bureau of Consumer Protection, 600 Pennsylvania Ave. NW, Washington, DC 20580. Use the letter on page79 as a template. Your letter should include a real or make believe scenario in which you would like to report a faulty product. Include the name of the product, the fault you have with the product in detail, any action you have taken to fix the problem, and what you expect to be done about the faulty product.
M A I N I D E A : T H E N A T I O N ’ S E C O N O M Y D E P E N D S O N C R E D I T
CHAPTER 4 SECTION1: AMERICANS AND CREDIT
NOTES
• What are the advantages of repaying installment debt over a long period?• Why do people go into debt?• What factors will help you decide whether or not
to use credit?
M A I N I D E A : T H E R E A R E 2 T Y P E S O F C R E D I T , B U T B E W A R E O F I N T E R E S T R A T E S
CHAPTER 4 SECTION 2: SOURCES OF LOANS AND
CREDIT
VOCABULARY
• Commercial bank• Savings and loan association• Savings bank• Credit union• Finance company• Charge account• Credit card• Finance charge• Annual percentage rate (APR)
NOTES
• What are the 3 kinds of charge accounts available in stores?• How are credit cards used?• How is a finance charge different from an annual
percentage rate?
M A I N I D E A : G O V E R N M E N T R E G U L A T I O N I S N E C E S S A R Y T O P R O T E C T C O N S U M E R S
CHAPTER 4 SECTION 4: GOVERNMENT
REGULATION OF CREDIT
NOTES
• How does the Equal Credit Opportunity Act affect consumer credit?
• Why do people declare a personal bankruptcy?
• List and describe the major federal laws regulating consumer credit:
M A I N I D E A : A M E R I C A N S C A N B U Y A V A R I E T Y O F F O O D S
CHAPTER 5 SECTION 1: SHOPPING FOR FOOD
NOTES
• What are the advantages of comparison food shopping?
• Fill in chartAdvantages of shopping at club warehouse stores:
Disadvantages of shopping at club warehouse stores:
M A I N I D E A : A M E R I C A N S L I K E A V A R I E T Y O F C L O T H E S
CHAPTER 5 SECTION 2: CLOTHING CHOICES
M A I N I D E A : T H E R E A R E D I F F E R E N T W A Y S T O O B T A I N H O U S I N G
CHAPTER 5 SECTION 3: TO RENT OR TO BUY
NOTES
• What are the three rules to determine how much to spend for a house?• What rights do renters have?• What responsibilities do renters have?
M A I N I D E A : M U C H T H O U G H T S H O U L D G O I N T O B U Y I N G A V E H I C L E
CHAPTER 5 SECTION 4: BUYING AND OPERATING
A VEHICLE
NOTES
• What are the 3 trade offs when buying a vehicle?• What costs are involved in operating a vehicle?• Teacher note: read over checklist pg. 131
M A I N I D E A : Y O U S H O U L D S E T M O N E Y A S I D E F O R L A T E R U S E
CHAPTER 6 SECTION 1: WHY SAVE?
VOCABULARY
• Saving• Interest• Passbook savings account• Statement savings account• Money market deposit account• Time deposits• Maturity• Certificates of deposit
NOTES
• When should you save money?• How do passbook, statement, and money market
accounts differ?• What are the advantages of time deposits?
M A I N I D E A : I N V E S T I N G C A N B R I N G P R O F I T O R L O S S
CHAPTER 6 SECTION 2: INVESTING: TAKING RISKS WITH YOUR
SAVINGS
VOCABULARY
• Stockholders• Capital gain• Capital loss• Tax-exempt bonds• Savings bonds• Treasury bills• Treasury notes• Treasury bonds• Broker• Over-the-counter market• Mutual fund• Money market fund
NOTES
• What is the difference between a stock and a bond?• Give the name for the following and briefly
describe what they are:• NYSE• NASDAQ• DJIA• S&P
M A I N I D E A : A D D I T I O N A L I N C O M E S M A Y B E N E E D E D D U R I N G R E T I R E M E N T
CHAPTER 6 SECTION 3: SPECIAL SAVINGS PLANS
AND GOALS
VOCABULARY
• Pensions plans• Keogh Plan• Individual retirement account (IRA)• Roth IRA• diversification