A smart consumer makes wise decisions. Wise decisions are ones that are informed and researched. Smart consumers often:

·  Think before they buy

·  Compare prices

·  Consider brands and bargains

·  Use coupons

·  Set spending goals

1. Visit the following website to learn tips for being a smart and safe consumer of both products and services.

http://www.thedigeratilife.com/blog/index.php/2007/11/05/10-tips-for-being-a-smart-and-safe-consumer/

Fill in the following chart

Tips for purchasing products / Tips for purchasing services

2. Describe a time you (or someone you know) were a smart consumer.

3. Describe a time you (or someone you know) was not a smart consumer.

4. What could you (or the person you know) have done to be a better consumer?


A smart consumer knows that they have different purchasing options. The most common purchasing options are cash or credit.

Purchasing with cash is the best option when:

·  You are in debt- Paying with cash can help break the terrible cycle of using credit to purchase things you want/need today only to find out that after you pay your credit card that you have no money to buy food or other necessities.

·  You want to learn money management skills-paying with cash only forces you to plan what you will spend for the next day/week/month.

·  You want to pay less and have fewer risks- If you pay with cash you do not have the risk of missing your payment date, incurring interest or developing bad credit.

Purchasing with credit is a good option when:

·  It is an emergency.

·  You want to be protected against theft.

·  Extra insurance or bonuses are provided.

·  You can pay the balance in full by the payment date.

1. Visit the following website to learn more about credit cards:

http://www.financefreak.com/3-owing-1a-how-credit-cards-work-1.html

From this page (and by clicking next {at the bottom of the page} to go to the next page) answer the following questions:

A)  Why are credit card companies so willing to grant people credit?

B)  There is good debt and there is bad debt. Why is credit card debt bad?

C)  What are three problems with making late payments on a credit card?

D)  Why are credit cards a necessary evil?

E)  How can you make the most of using credit cards?

2) Visit the following website:

http://www.financefreak.com/4-credit-ratings-2-5-Cs-of-credit.html

List and describe the 5 C’s of credit.

A)

B)

C)

D)

E)

3) Describe a situation in which you would pay cash. Explain why you would choose cash over credit.

4) Describe a situation in which you would pay with a credit card. Explain why you would choose a credit card over cash.


Applying for a credit card is a big decision. Being granted a credit card can have huge implications on how you spend your money and on your credit score.

Visit the following website to apply for a credit card and go shopping:

http://www.channelone.com/life/2005/11/02/credit/

NOTE: This is a simulator game. You are not applying for a real credit card!!

Answer the following questions:

1)  What credit card did you choose? Describe the terms of the card.

2)  What items did you purchase?

3)  What was the minimum payment on your card?

4)  Paying the minimum, how long would it take you to pay your credit card and how much would you actually end up paying for your purchases?

5)  What is the interest on the individual items that you purchased?

6)  What changes if you increase the amount of your minimum payment?


1. Visit the following website to learn how banks work:

http://money.howstuffworks.com/bank4.htm

List three things you learned about banks.

1.

2.

3.

2. Visit the following website to learn about the types of banks:

http://www.financefreak.com/1-banking-2-types-of-banks.html

Fill in the following chart

TYPE OF BANK / ABOUT THIS BANK

3. Visit the following website to learn about types of bank accounts:

http://www.financefreak.com/1-banking-3-types-of-bank-accounts.html

Fill in the following chart

TYPE OF ACCOUNT / ABOUT THIS ACCOUNT


Every individual has an identity which is very important. It is what makes a person unique and identifiable. Businesses and governments are very interested in the identity of consumers. A consumer’s identity is often determined by personal information. Sometimes an individual will have their identity stolen from them. Identity theft occurs when someone uses your personal information without your knowledge or consent to commit a crime, such as fraud, theft or forgery. With the rise of online activity such as banking and purchasing, Identity theft is a growing concern for many individuals. Identity theft is not only invasive; it can also be costly and time consuming for a consumer to regain their stolen identity. Identity theft can take many forms. All consumers need to be aware of identity theft and learn about how to reduce the risk of having their identity stolen.

1. Visit the website below to answer the following questions:

http://www.privcom.gc.ca/information/02_05_d_08_e.asp

A)  What is classified as personal information?

· 

· 

· 

· 

· 

· 

· 

· 

B)  How does Canada's Personal Information Protection and Electronic Documents Act protect personal information?

C) What rights do you have under this law?

1)

2)

3)

4)

5)

6)

7)

D)  What is the role of the Privacy Commissioner of Canada?

E)  What is not covered by the Act?

1)

2)

3)

4)

2. Visit the following website to find some statistics about identity theft:

http://www.phonebusters.com/english/documents/Yearly2007_000.pdf

Fill in the following chart.

Identity Theft (based on complaint date) / Month December 2007 / January 1, 2007 to December 31, 2007
Canadian at risk
Canadian victims
Value of loss reported
Total persons at risk
Total victims
Total value of loss reported

A) Is this information surprising to you? Why or why not?

B) What do you find interesting or surprising about the following chart? Explain your answer.

3. A smart consumer knows how to protect their identity. Visit the following website to find some tips for reducing the risk of identity theft.

http://cmcweb.ca/epic/site/cmc-cmc.nsf/en/fe00040e.html

Fill in the following chart

List the four main tips for reducing the risk of identity theft / Describe some of the key advice for each tip