Tag Archives: budgeting

Dec 17 2014

Plunging Crude Prices Hammer Energy Companies

“A decision by OPEC this week to maintain current levels of oil production is hammering major energy companies in the U.S. and abroad.”

This article explores the winners and losers of lower energy prices.  For consumers, lower energy and gas prices means increased discretionary funds for purchasing consumer goods including food, clothes, electronics, and presents for friends and relatives during the holiday season.  Also, both large and small retailers benefit because consumers have more money to spend.  And airlines, package delivery services, cruise lines, and other companies are spending less on fuel.

The disadvantages of lower energy and gasoline prices are already causing the stock prices of big oil companies including Chevron, ConocoPhillips, Exxon Mobil, Marathon Oil, and British Petroleum to decline.

For more information go to http://finance.yahoo.com/news/plunging-crude-prices-hammer-energy-companies-123639239–finance.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Discuss the impact of the cost of energy and gasoline on a consumer’s budget.
  • Describe alternatives uses for the savings that result from lower energy and gasoline prices.

Discussion Questions

  1. What is the current price for a gallon of gasoline? How does this compare with the cost 6 months ago?  What impact does this have on your spending patterns and your personal budget?
  2. While you are saving money at the pump, the big question may be how you plan to use the savings. Are there alternatives to spending the money on clothes, entertainment, or holiday gifts?
  3. Now that the value of energy company stocks has declined, would you invest in a company like Exxon Mobil or Chevron? Explain your answer.
Jul 9 2014

The Sharing Economy

Saving money or earning extra income can be as easy as using an app to rent a car or lend someone your backyard tools. With about 5,000 sharing companies, organizations and programs in operation, consumers could save hundreds and even thousands of dollars a year.

The main focus of the sharing economy is car and bicycle rentals, home sharing, and shared nanny services.  But consumers can also borrow drills, saws, ladders, lawn mowers through a community tool shed.

To avoid obvious dangers, be sure to use a sharing service that screens potential customers with background checks and identity verification. Technology can increase trust with online profiles and reviews from users.

There is also money to be made in the sharing economy by providing rides to others or renting out an extra bedroom. Before getting involved in the sharing economy, be sure to have proper insurance coverage and an understanding of tax implications. Participants in the sharing economy also note the social benefits of connecting with others from around the world.

For additional information on the sharing economy, go to:

http://www.kiplinger.com/article/business/T049-C000-S002-cash-in-on-the-sharing-economy.html

http://www.kiplinger.com/article/spending/T050-C000-S002-sites-to-help-you-save-make-money-by-sharing.html

Teaching Suggestions

  • Have students research various apps that facilitate transactions in the sharing economy.
  • Have students create interview questions that they might ask someone who is a buyer or seller in the shared economy.

Discussion Questions 

  1. What benefits are present for individuals and society as a result of the sharing economy?
  2. Explain how technology helps to increase the participation and acceptance of sharing economy activities.
  3. What concerns should be addressed when participating in the shared economy?