1. The Economy and You
Economics Pt. 1, Lesson 5

2. 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?

3. 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

4. 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

5. 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

6. 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