1. YOUR ROLE AS A CONSUMER CHAPTER 3

2. MAIN IDEA: AS A CONSUMER, YOU PLAY AN IMPORTANT ROLE IN THE ECONOMIC SYSTEM CHAPTER 3 SECTION 1: CONSUMPTION, INCOME, AND DECISION MAKING

3. VOCABULARY Consumer Disposable income Discretionary income Rational choice

4. NOTES Describe the difference between disposable income and discretionary income What three considerations should govern your decision making as a consumer? a. b. c.

5. SPECIAL NOTE FROM TEACHER Take a moment to look at the graph on page 62 and figure 3.4 on page 63

6. MAIN IDEA: BEWARE OF ADVERTISEMENTS CHAPTER 3 SECTION 2: BUYING PRINCIPLES OR STRATEGIES

7. VOCABULARY Competitive advertising Informative advertising Bait and switch Comparison shopping Warranty Brand name Generic brand

8. 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?

9. MAIN IDEA: YOU MUST BE A PROACTIVE CONSUMER TO FIND RELIABLE PRODUCTS AND SERVICES. CHAPTER 3 SECTION 3: CONSUMERISM

10. VOCABULARY Consumerism Ethical behavior

11. NOTES What are your rights as a consumer? a. b. c. d. e.

12. NOTES What private and federal help can you get as a consumer? What are your responsibilities as a consumer? A B

13. 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.

14. GOING INTO DEBT CHAPTER 4

15. MAIN IDEA: THE NATION’S ECONOMY DEPENDS ON CREDIT CHAPTER 4 SECTION1: AMERICANS AND CREDIT

16. VOCABULARY Credit Principal Interest Installment debt Durable goods mortgage

17. 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?

18. MAIN IDEA: THERE ARE 2 TYPES OF CREDIT, BUT BEWARE OF INTEREST RATES CHAPTER 4 SECTION 2: SOURCES OF LOANS AND CREDIT

19. VOCABULARY Commercial bank Savings and loan association Savings bank Credit union Finance company Charge account Credit card Finance charge Annual percentage rate (APR)

20. NOTES List the 6 types of financial institutions: 1. 2. 3. 4. 5. 6.

21. 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?

22. NOTES List and briefly describe the different methods used to compute finance charges:

23. MAIN IDEA: HANDLE YOUR DEBT CHAPTER 4 SECTION 3: APPLYING FOR CREDIT

24. VOCABULARY Credit bureau Credit check Credit rating Collateral Secured loan Unsecured loan

25. NOTES What factors determine a person’s credit rating? How can you be a responsible borrower?

26. MAIN IDEA: GOVERNMENT REGULATION IS NECESSARY TO PROTECT CONSUMERS CHAPTER 4 SECTION 4: GOVERNMENT REGULATION OF CREDIT

27. VOCABULARY Usury law bankruptcy

28. 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:

29. BUYING THE NECESSITIES CHAPTER 5

30. MAIN IDEA: AMERICANS CAN BUY A VARIETY OF FOODS CHAPTER 5 SECTION 1: SHOPPING FOR FOOD

31. VOCABULARY Club warehouse store Convenience store Private-labeled products

32. NOTES What are the advantages of comparison food shopping? Fill in chart Advantages of shopping at club warehouse stores: Disadvantages of shopping at club warehouse stores:

33. MAIN IDEA: AMERICANS LIKE A VARIETY OF CLOTHES CHAPTER 5 SECTION 2: CLOTHING CHOICES

34. VOCABULARY Durability Service flow

35. NOTES What 3 factors determine clothing value? When should you take advantage of clothing sales?

36. MAIN IDEA: THERE ARE DIFFERENT WAYS TO OBTAIN HOUSING CHAPTER 5 SECTION 3: TO RENT OR TO BUY

37. VOCABULARY Closing costs Points Lease Security deposit

38. 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?

39. MAIN IDEA: MUCH THOUGHT SHOULD GO INTO BUYING A VEHICLE CHAPTER 5 SECTION 4: BUYING AND OPERATING A VEHICLE

40. VOCABULARY Registration fee Liability insurance

41. 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

42. SAVING AND INVESTING CHAPTER 6

43. MAIN IDEA: YOU SHOULD SET MONEY ASIDE FOR LATER USE CHAPTER 6 SECTION 1: WHY SAVE?

44. VOCABULARY Saving Interest Passbook savings account Statement savings account Money market deposit account Time deposits Maturity Certificates of deposit

45. NOTES When should you save money? How do passbook, statement, and money market accounts differ? What are the advantages of time deposits?

46. MAIN IDEA: INVESTING CAN BRING PROFIT OR LOSS CHAPTER 6 SECTION 2: INVESTING: TAKING RISKS WITH YOUR SAVINGS

47. 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

48. 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

49. MAIN IDEA: ADDITIONAL INCOMES MAY BE NEEDED DURING RETIREMENT CHAPTER 6 SECTION 3: SPECIAL SAVINGS PLANS AND GOALS

50. VOCABULARY Pensions plans Keogh Plan Individual retirement account (IRA) Roth IRA diversification

51. NOTES What kinds of retirement investments are available? How much should you save and invest? Why is risk an important factor when deciding how much to save or invest?