Need Consumer ED ( High School ) Study Guide completed ASAP

Need this for my son to study for finals

Consumer Education Final Review Sheet

I. Effective Consumerism

a. Setting a Goal, Thinking Critically, Doing Research, Managing Daily Finances, Planning for Financial Security

i. Be able to identify situation in which people are being effective consumers

II. Unit One: Credit

a. Credit: what is it? What is principal and interest?

i. Types of credit available:

1. Unsecured credit vs. secured credit

2. Private labeled cards vs. general purpose cards.

ii. Pros and cons of credit

1. Temporary extension of income, convenience, and financial responsibility.

2. Interest, security questions, impulse buying, and overspending

iii. How do you obtain and maintain credit?

iv. What are the three “C’s” of credit?

v. Credit Bureaus and reporting.

1. What is in your credit report? How do they determine your credit score? Range of a score?

vi. Credit card terms

vii. How do you use credit wisely?

viii. Types of consumer bankruptcy and foreclosure

b. Safeguarding your Privacy:

i. Identity theft: what is it? How do you prevent it?

ii. What do you do if your identity is stolen?

iii. Financial Identifiers: SS #, credit card #s, bank accounts

III. Unit Two: Personal Finances

a. Budgeting

i. Fixed vs. variable costs, impulse purchases, disposable vs. discretionary spending

b. Saving

i. Reasons for saving: emergencies, recurring expenses, future purchases, financial goals, and retirement

ii. How do you develop a savings plan?

iii. What is the FDIC and what do they do?

iv. Savings options:

1. Savings account, money market account, certificate of deposit, stocks, mutual funds, and bonds

2. When determining what savings plan is best, you should compare: liquidity, interest, risk, taxes, and restrictions.

c. Investing

i. Strategies: risk, return, volatility, diversification, and portfolio.

ii. Stock Market basics:

1. What are the three major indexes and what do they measure?

2. Who regulates the stock market?

IV. Unit Three: Buying Goods and Services

a. Buying a Car:

i. Understanding Financing: Buying vs. Leasing, shopping for a loan, down payment (usually 20%), costs of leasing a vehicle.

ii. Shopping for a vehicle: researching makes and models (safety, gas mileage, comfort, power, etc.)

1. New Car Prices: invoice, base price, MSRP, sticker price, and options.

2. Where to buy a vehicle: private owners, dealerships, and internet.

3. Negotiating the Price

iii. Owning a Vehicle

1. Cost of ownership (depreciation, insurance, fuel costs, maintenance, etc.)

2. Maintenance, services, and types of insurance.

b. Housing Options:

i. Types of housing: single- family detached, duplex, row house, town house, and apartment. Know the advantages and disadvantages of all.

ii. Costs of ownership: individual responsibility, HOA (home owners association)

iii. Renting vs. Buying:

1. Advantages and disadvantages of renting.

2. Advantages and disadvantages of buying.

3. Understanding a lease

4. Costs of buying a home: down payment (usually 20%), closing costs, and other costs.

5. Types of mortgages

c. Shopping for Food:

i. Planning for Food Purchases: saves money, saves time, and promotes better nutrition.

1. Make a grocery list, shop once a week, shop when the stores aren’t crowed, and don’t shop when you’re hungry.

ii. Using consumer information:

1. Unit Price: price/measurement

iii. Types of stores: club warehouse store, grocery store, and convenience store.