The Economy and You Economics Pt. 1, Lesson 5

Consumer Rights and Responsibilities The US has a capitalist economy; who has power over economic decisions? Congress has passed a number of laws over the years that protect consumer rights Many private groups and organizations protect consumers; BBB Who has to take the most responsibility for protecting yourself? What are some rights you think consumers should have?

Your Role as a Consumer Your role as a consumer depends on your income and how much you choose to spend or save Disposable income: money left over after all taxes have been paid Discretionary income: money left over after paying for necessities; used to satisfy wants Consumers have to decide what in their lives is a need and a want

How Are You Going to Spend Your Money? Most purchases in our economy can be made with cash, check, debit card, or a credit card Difference between debit and credit? Decision Making: for almost every purchase you make there is an opportunity cost One of the ways consumers decide if the opportunity cost is worth it is be setting goals One way many consumers plan their goals is by creating a budget Long term vs. Short Term in decision making

Saving for the Future One way to accomplish long-term spending goals is to save There are many advantages to saving versus using credit Saving money can be a difficult habit to develop, but smart consumers must learn how Savings help to protect a consumer by providing income in an emergency and allowing for large purchases

Saving Regularly Many people budget a certain portion of their income for savings What are things you can put your savings into? Many types of savings pay the consumer interest Smart consumers should be willing to consider their future needs versus the current wants Consumers, not the government, should be responsible for people’s financial success