The joy of the holiday season can be overpowered with shopping stress and financial difficulties. To avoid this situation, consider this approach:
- In mid-to-late November, create a spreadsheet to manage your holiday spending. Categories might include gifts for family and friends, donations to charity, holiday meals along with other items such as shipping, wrapping paper, decorations, parties, and travel.
- Enter realistic amounts that you are able to spend for the various people on your gift list and for the other categories.
- Monitor your actual spending, attempting to stay within your budget.
- Based on this year’s experiences, adjust categories and amounts for the 2019 holiday season.
The spreadsheet might include columns for name/item, budgeted amount, actual amount, difference, and notes for future reference. Starting earlier in the year, consider setting aside holiday money to avoid taking away funds from your normal budget. You might also consider using credit card and other reward points for gifts.
For additional information on a holiday spending spreadsheet, click here.
- Have students create a spreadsheet that might be used to monitor holiday spending.
- Have students talk to others to obtain ideas for not overspending during the holiday season.
- How would you make use of a spreadsheet for holiday spending?
- Describe actions that might be taken to monitor and control holiday spending.
It’s possible to add $500 or $1,000 to your savings with a simple action. Clark.com suggests using store receipts to save for the future. Many retailers display a “You Saved” amount on a receipt for items on sale and store discounts. By putting this amount in a savings account you can avoid spending the “saved” money on other items.
Collecting receipts in an envelope or box, or scanning them to an app, can also help analyze buying habits to make wiser purchases in the future and not make as many trips to the store. This action can result in an extra amount each month added to your savings. This money can be added to your emergency fund or retirement account.
For additional information on the receipt savings trick, click here.
- Have students locate examples of receipts that show “amount saved.”
- Have students talk to others to obtain ideas for methods for building a person’s savings account.
- What do you believe are the benefits and drawbacks of using this system?
- Describe other actions that might be taken to motivate you and others to build your savings?
What are some signs that a romance scam could be taking place?
- a new love living far away requests money or use of your credit card number
- being asked to sign a document giving a new romantic interest control of your finances
- a new sweetheart wants you to open a joint bank account with them
While romance scammers usually focus on single, older people, anyone seeking a new relationship is a possible target. These scams can happen in person, but more often through social media, dating websites, smartphone apps. These scams happen when a new love pretends to be interested in you as a way to get your money. In fact, they may not even be who they say they are.
Beware of Cupid’s arrow striking your wallet instead of your heart! To protect you, friends, and family from romance and other scams, consider these actions:
- Avoid giving a new friend access to credit cards, bank accounts, or other financial assets.
- Report crimes or financial exploitation to local law enforcement agencies or to Adult Protective Services (APS); information available at gov.
- Contact your state attorney general and the Federal Trade Commission to report cases of financial abuse.
For additional information on romance scams, click here.
- Have students create and present possible scam situations to create awareness among various potential victims.
- Have students create a visual presentation (using computer software or a poster) to communicate actions to avoid scams.
- What are common warning signs that may indicate that a possible scam is taking place?
- Describe actions that might be taken to avoid various scams and frauds.
The Internet has made our lives easier in so many ways. However, you need to know how you can protect your privacy and avoid fraud. Remember, not only can people be defrauded when using the Internet for investing; the fraudsters use information online to send bogus materials, solicit or phish.
Here’s what you can do to protect yourself when using social media:
Privacy Settings: Always check the default privacy settings when opening an account on a social media website.
Biographical Information: Consider customizing your privacy settings to minimize the amount of biographical information others can view on the website.
Account Information: Never give account information, Social Security numbers, bank information or other sensitive financial information on a social media website.
Friends/Contacts: Decide whether it is appropriate to accept a “friend” or other membership request from a financial service provider, such as a financial adviser or broker-dealer.
Site Features: Familiarize yourself with the functionality of the social media website before broadcasting messages on the site. Who will be able to see your messages — only specified recipients, or all users?
For More Information, click here.
- Ask students to make a list of their social media accounts. How do they protect their accounts from fraudsters?
- Why do many social media websites require biographical information to open an account?
- Why is it important to limit the information made available to other social media users?
- Is there an obligation to accept a “friend” request of a service provider or anyone you don’t know or do not know well?
- Why be extra careful before clicking on a link sent to you even if by a friend?
Youngsters learn money management attitudes and behaviors by watching family members and others. To help guide their financial literacy development, involve children in the shopping process using these steps:
- Have children help in the creation of the shopping list. Sit down together with paper or an app to list what you need. Talk through your list with your kids noting items that are low on in the household as well as things bought regularly. Have children check cabinets and refrigerator to determine things they use.
- While making your list, talk about a budget. Explain the need to keep track of how much is spent on groceries so there is enough money for household expenses. Make clear that a grocery list helps make sure you don’t overspend.
- Talk while shopping to explain brands you prefer and how sale prices or coupons might affect purchases. Also communicate why you choose certain stores for your shopping. As you select items explain why you’re buying that one instead of a similar item. Older children can be asked to comparison shop among different brands.
- While shopping, refer back to your budget. This will help you decide to buy an item now or wait until a later time.
- Provide explanations of buying choices. To avoid surprises, estimate your total before going to the cash register. Also explain different payment methods, such as a debit card, which subtracts money from your bank account right away.
Discussion of various decision-making elements will help kids learn shopping and money management skills they will need. Thinking out loud can clarify what you’re doing and why when in the store, paying bills, or shopping online.
For additional information on teaching money skills to children, go to:
Grocery Shopping Tips
Money skills, by age.
- Have students visit stores and explain to friends why they buy certain items and brands.
- Have students create a visual presentation (using computer software or a poster) to communicate learning experiences for teaching wise buying to others.
- What experiences did you have growing up that helped you learn financial literacy and wise money management skills?
- Describe other methods that might be used to teach shopping and money management skills to young people and others who might lack these abilities.
Every day American consumers report tens of thousands of illegal robocalls to the Federal Trade Commission, and now the FTC is helping put that information to work boosting industry efforts to stop unwanted calls before they reach consumers.
Under a new initiative announced by the FTC, when consumers report Do Not Call or robocall violations to the agency, the robocaller phone numbers consumers provide will be released each day to telecommunications carriers and other industry partners that are implementing call-blocking solutions.
Unwanted and illegal robocalls are the FTC’s number-one complaint category, with more than 1.9 million complaints filed in the first five months of 2017 alone. By reporting illegal robocalls, consumers help law enforcement efforts to stop the violators behind these calls. In addition, under the initiative announced today, the FTC is now taking steps to provide more data, more often to help power the industry solutions that block illegal calls.
For more information, click here.
- Ask students if they have received robocalls and what was their response to such illegal calls?
- Let students debate the issue of whether robocalls should be outlawed.
- Why is the consumer complaint data so crucial for the FTC to call-blocking solutions?
- How will the FTC attempt to stop unwanted robocalls before they reach consumers?
Believe it or not, you can buy a car from a vending machine. Carvana has created an eight-story high glass structure holding 30 cars. The online auto retailer opened its first vehicle vending machine in Nashville, Tennessee, and also has locations in Austin, Houston, and San Antonio, Texas. Payment, financing, and trade-ins are arranged online. Free delivery is offered in the areas served. However, buyers have the option of receiving an oversized Carvana coin to drop in a slot to automatically move the car to the delivery bay ready to drive.
For additional information on Carvana, click here.
- Have students search for a website or app related to car buying services that was not available a few years ago.
- Have students talk with others about their car buying experiences. Ask students to propose an app or website that would improve car buying activities.
- What benefits are associated with this type of motor vehicle buying process?
- Describe common mistakes people might make when buying a motor vehicle?
The FINRA Investor Education Foundation issued a new research report, Non-Traditional Costs of Financial Fraud, which found that nearly two thirds of self-reported financial fraud victims experienced at least one non-financial cost of fraud to a serious degree—including severe stress, anxiety, difficulty sleeping and depression. While the Stanford Financial Fraud Research Center estimates that $50 billion is lost to financial fraud every year, the FINRA Foundation’s innovative research examines the broader psychological and emotional impact of financial fraud.
“Fraud’s effects linger and cause distress well after the scam is over. For the first time, we have data on the deep toll that fraud exerts on its victims, and the results are sobering. This new research underscores the importance of the FINRA Foundation’s work with an array of national, state and local partners to help Americans avoid fraud, and assist consumers who have been defrauded,” said FINRA Foundation President Gerri Walsh.
The research report found that:
- nearly two thirds (65 percent) reported experiencing at least one type of non-financial cost to a serious degree; and
- most commonly cited non-financial costs of fraud are severe stress (50 percent), anxiety (44 percent), difficulty sleeping (38 percent) and depression (35 percent).
- Beyond the psychological and emotional costs, nearly half of fraud victims reported incurring indirect financial costs associated with the fraud, such as late fees, legal fees and bounced checks. Twenty-nine percent of respondents reported incurring more than $1,000 in indirect costs, and 9 percent declared bankruptcy as a result of the fraud.
Additionally, nearly half of victims blame themselves for the fraud—an indication of the far-reaching effects of financial fraud on the lives of its victims.
For more information, click here.
- Ask students to list a few suggestions to protect themselves from financial fraud.
- Explain how FINRA can assist consumers who have been the victims of financial fraud.
- What are a few indirect financial costs associated with funds?
- Why nearly half of victims blame themselves for being victims of financial fraud?
- How and where should you report financial fraud?
A current email scam invites people to take advantage of “a little known Social Security contract” which enables you to receive “little known benefits.” Think that sounds too good to be true? It should—there is no “little known Social Security contract.”
What are some clues that scams might not be legitimate? Scammers insist that the situation is urgent and issue warnings. They try to convince you to act now to avoid dire consequences. They promise a deal or secret that the public doesn’t know about. They come from organizations unknown to you. They offer things the government doesn’t want you to know, but they don’t come from a .gov website.
The Federal Trade Commission’s website maintains a list of scams in the news. You can sign up to be notified by an e-mail when new scams appear. You can also get free consumer education materials and read the latest from consumer protection experts. Stay well informed by visiting the FTC scam alert page. It’s in your best interest to find out about the scams and how they work so you won’t fall a victim to one yourself. Protect yourself by learning how to avoid scams and fraud. You can search for “identity Theft” or “phishing scam” on Social Security website, www.socialsecurity.gov to learn more about how to protect yourself. Then you’ll be the one who knew it sounded too good to be true.
For more information, click here.
- Ask students what they would do if they received such enticing offers.
- Ask students to make a list of agencies where they can file a complaint against these scammers.
- How can you determine if the offer is legitimate?
- What can you do to protect yourself from such bogus offers?
Many people in our society are not able to save. They are barely able to cover their monthly expenses. However, there are some actions that can help you get on a path to saving.
In the first month, open an online bank account and deposit a minimum amount, such as $5. This is a very important first step. In month two, save $15 (or more) in your online savings account. One way to do this is with Paribus, an online tool that searches various retailers to determine if you are owed money for past purchases as a result of a price drop.
Your goal for month three is to work toward savings $100. This could be accomplished by signing up with market research companies to participate in providing opinions. Or, you could try selling old items online. By consistently using various ideas for earning extra money, you should be able to save $100 a month.
For additional information on starting a savings program, click here.
- Have students to talk various people to determine actions they take to reduce spending or earn extra money.
- Have students create a summary presentation describing actions that might be taken to increase a person’s savings.
- Describe attitudes and behaviors that might result in people not being able to save for the future.
- What are actions you have taken to reduce spending and to earn extra money for savings?