Rights of ConsumersA basic set of protections, agreed upon by society and written into law, apply to purchases of merchandise and services in the United States. These rights of consumers include:-Right to be safe-Right to be informed-Right to choose products and services-Right to be heard

-Right to redress-Right to consumer education-Right to service-Right to a healthy environment

Responsibilities of ConsumersTypes of activities a consumer is expected to perform as part of a purchase decision. Each consumer responsibility parallels a consumer right.-To use products safely-To find and use information-To choose purchases carefully

-To seek redress-To learn-To reward good service-To speak up

Asset: A valuable item that is owned

Wealth: What you own minus what you owe

Gross Income: Amount of money received for doing work

Net Income: What you have to spend after deductions

Understand Financial Terms

Establish Financial Goals

•Short Term•Buy a car•Go to college•Be debt free•Vacations

•Long Term•Buy a home•Start a business•College tuition for children

•Pay off student loans•Retirement

Needs vs. WantsItem Need Want

Food Groceries Eating Out

Shelter Dorm/Roommate Apartment or House

Transportation Public Transportation Gas, Car Insurance, etc.

Clothes The Basics Trendy Styles & Brands

Telephone Regular Phone Service Cell Phone

Factors that can influence a financial decision

A. Values: What is important to your family, others in your culture?B. Peers: People you knowPressure for positive or negative behaviors

C. Habits: You are accustomed to doing it this wayD. Feelings: love, anger, frustration, ambivalence, rejection

Your credit rating

• Your credit rating or credit score is a measure of your ability to pay back lenders.

• Often quantified in terms of a “FICO score” (so named because it was developed by Fair Isaac Corporation)

Protect Your Credit

•Reduce access to your personal data•Always take credit card receipts with you

•Never permit your credit card number to be written onto your checks

•Never allow anyone to use your credit card

•Order your free credit report once a year

•The three national credit bureaus are:•Equifaxwww.equifax.com(800) 997-2493

•Trans Unionwww.transunion.com(800) 888-4213

•Experianwww.experian.com(888) 397-3742