1. Consumers, Savers, Investors
Rub a dub dub
Three Groups in this tub
And who do you think they be?

2. What is a consumer?
Someone who buys goods or services for personal use.
Consumer spending is the largest portion of total spending in our economy.
What do you need to be a consumer?

3. Money, Money, Money Income from work Income from wealth Hunka, hunka
Rent, interest, etc.

4. Income from savings Income up, savings up
Expect good things, spend more. Expect bad things, save more.
Interest rates
Price of “renting” your $capital to bank
Price of borrowing capital from bank
Rates up, save more borrow less
Taxes on saving and investing

5. Do you want to Save? Is it safe? ROR (rate of return) Liquidity
Price of “renting” your money?
Liquidity
Convert to cash

6. Savings Vehicles Savings Deposits Money Market Acct.
CD’s or passbook
Money Market Acct.
Pension/retirmnt fnd
Corporate Stock
Ownership/dividend
Corporate Bond
IOU
Mutual Funds
Stocks, bonds, MM
US Savings Bonds
Govt Securities
Bond=1yr
Note=6mo.-1yr
Bill=3-6mo.
Life Insurance
Other Investments

7. What is Credit?
Credit allows you to obtain goods and services before you pay for them entirely.
How does it work?
You pay back the principal (the original amount you borrow)
You pay finance charges (the interest and other fees or the price of using credit)

8. Consumer Credit Types of credit Home Mortgages Auto and consumer loans
Charge Accounts
Credit Cards

9. The Three C’s of Credit Character (personal qualities)
Does your record show you’ve repaid in the past
Capacity (ability to repay)
Do you have sources of income
Capital or Collateral ($$ or property)
Do you have assets that secure the loan

10. Insurance
Insurance is protection from the financial effects of emergencies.
The risk of loss is shared. It gets spread out.

11. Are there rodent hairs in my peanut butter?
Right to safety
CPSC
Right to information
Ingredients, credit, risks
Right to choose
Maintain Competition
Right to be heard