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UNIT 15Budgeting and Consumer Skills (10 days)

UNIT 15 – BUDGETING AND CONSUMER SKILLS (10 Days)All teaching resources in this document are free for teachers. Here is how to you access them:1. Many are hyperlinked in the document, so you can get started right away. 2. Lessons that do not have a hyperlink can be found on the lesson plan resource calledVirtual Economics 4.5 or 5.0 (VE). All teachers can and should get this resource for freeby participating in a VCEE training session. Visit www.vcee.org for more information.3. Lessons from Financial Fitness for Life are on VE. They also have educationaltechnology tools that can be found here:https://www.econedlink.org/resources/collection/fffl-9-12/A budget provides the framework within which spending decisions should be made. With theframework in place, students can learn about different kinds of expenses and how to makesensible choices so that spending does not undermine saving for one’s goals. Protecting onethrough consumer protection laws, recordkeeping, and precautions against identity theft furthercontribute to a secure future.EPF.17 The student will demonstrate knowledge of personal financial planning byd) developing a personal budgetDay 1 Constructing the budget – income firstDay 2 Constructing the budget – choosing expensesDay 3 Revisiting the budgetEPF.10 The student will develop consumer skills bya) examining basic economic concepts and their relation to product prices and consumerspendingDay 1 Prices and decisionsEPF.10 The student will develop consumer skills byc) describing the steps in making a purchasing decision, including the roles of marginalbenefit and marginal costf) demonstrating comparison-shopping skillsDays 1 and 2 Deciding whether and when to buyEPF.10 The student will develop consumer skills bye) describing common types of contracts and the implications of eachDay 1 Understanding contract basicsEPF.10 The student will develop consumer skills byj) explaining consumer rights, responsibilities, remedies and the importance of consumervigilanceDay 1 Consumer rights, responsibilities and remediesEPF.10 The student will develop consumer skills byVirginia Council on Economic Education

g) maintaining a filing system for personal financial recordsk) examining precautions for protecting identity and other personal informationDay 1 Protecting yourselfEvaluation DayEPF.17 The student will demonstrate knowledge of personal financial planning byd) developing a personal budgetDay 1 - Constructing the budget – income firstContent KnowledgeA budget is an important tool for managing one’s money to achieve short- and long-term goals.1Once students understand income and taxes, they have the starting point for creating a budget.Budgeting allows one to “pay oneself first,” that is, intentionally saving towards achieving goals.Going without a budget, or beginning with expenses rather than income, means that one willsave only what’s left over.VocabularyBudget – A spending-and-savings plan, based on estimated income and expenses for anindividual or an organization, covering a specific time period.Expenses – Payments for goods and services.Income – Payments earned by households for selling or renting their productive resources. Mayinclude salaries, wages, interest and dividends.Virginia Board of Education FrameworkA budget is an important tool for managing one’s money to achieve short- and long-term goals.Developing a budget includes the following:· Writing a statement of long-term and short-term goals· Presenting a plan for managing one’s money over a short-term period· Outlining a long-term plan for managing money.A budget should allow for discretionary income (i.e., that which is available after paying for theessentials--- food, clothing, shelter) and take into account the impact of inflation.A budget should also include funds set aside to use in the event of an emergency.Teaching Tips1) Have students construct a budget. It should begin with goals. If the teacher followed thesuggestion in Unit 11, “Goals, Saving, Interest & Banking,” students have already listed some oftheir goals. They can review their goals and estimate how much they need to save for them.Virginia Council on Economic Education

This should include estimates for educational expenses arrived at in Unit 13, “Labor Markets,Human Capital and Income.”2) The teacher may want to visit several budget sites to show students different models. Askstudents to identify what all of the models have in common.3) Ask: What kinds of income would you expect to have in your budget? This is a good reviewof types of income from Unit 13. How consistent is the income? Do they need to construct aweekly, monthly or annual budget? Why?4) The income amount that students use for in class activities should be based on the mediansalary from one of the careers that they selected after research in Unit 13. However, encouragestudents who have jobs to develop their own present-day budget using their actual income.When addressing the class on this subject, stress the point that budgets need to be revisited andrevised as circumstances change.Lessons and ResourcesFinancial Fitness for Life Grades 9-12 Lesson 8:Managing Your MoneyOnlineIt’s Your Paycheck Curriculumhttp://www.stlouisfed.org/education_resources/paycheck.cfmMoney Management/Budgeting Concept Video (3:25)https://www.econedlink.org/resources/budgeting-video-and-quiz/Better Money Habitshttps://econisok.org/wp-content/uploads/2015/04/MS-Lesson-2-Budgeting.pdfDay 2 - Constructing the budget – choosing expensesContent KnowledgeThe first expense item on students’ budgets should be money that goes into savings to use foremergencies and toward reaching goals. Ordinarily when starting out, the creation of anemergency fund of at least six months’ income should be a primary goal. After setting aside thatportion of income, attention should be directed to essential spending on housing, utilities, food,transportation, and insurance.Teaching TipsVirginia Council on Economic Education

1) This is an extension of the previous day’s lesson. Begin by reminding students aboutshort-term and long-term financial goals. Ask: What amount would you need to save on aregular basis to help meet your goals? This needs to be the first item on the expense portion ofthe budget.2) Ask: What other categories of expenses do you have in your budget? Do you have a categoryfor clothing, entertainment, food, transportation, gifts (for family and friends)? Have studentsprioritize their categories and allocate income left after saving. How did you prioritize yourcategories? Have students explain their reasoning.3) The teacher may wish to have students estimate their actual expenses for a period of a week toa month. Then, assign students to keep a record of their actual expenses for the period. Havethem categorize their expenses and compare the actual expenses to the estimated expenses. Mostwill have underestimated their actual expenses. Did any use their estimated expense figures tolimit their spending? Did having a plan help keep spending down? If not, discuss what causedspending to exceed the estimates. Point out that while budgets often need adjustment, failure tobudget and to keep the budget in mind when spending results in overspending. Overspending isan obstacle to goal achievement.Lessons and ResourcesLesson: The REAL Cost of Collegehttps://www.thirteen.org/edonline/lessons/fe_collegecosts/index.htmlLesson: Financial Fitness for Life (6-8)- Lesson 7 Managing CashEconedlink Lesson: Creating a Financial Safety Nethttps://www.econedlink.org/resources/creating-a-financial-safety-net/Day 3 - Revisiting the budget.Content KnowledgeOften, people will see a major change in their income but either overestimate or underestimatethe impact on their spending. This can cause them to break their budget or to miss opportunitiesto meet goals.Teaching Tips1) As an extension of the previous two days’ lessons, ask: How would you change your budgetif: you received a 10% raise, a 20% one-time bonus, or your rent or transportation expensesincreased by 10%? How would you reallocate your income or re-prioritize your expenses?Remind students that they have goals to guide them, in the case of unanticipated income.Virginia Council on Economic Education

2) If students have used the median salary from a career of interest, the teacher may wish tohave students consider a career that is a step above or a step below the one they used to createtheir original budget—one in the same field, but requiring more or less education and training.Using the median salary for that altered career, have them remake their budgets. How does theadditional, or the reduced, salary affect what they are able to have? How does it affectattainment of their goals?Lessons and ResourcesLesson 3: The Art of Budgeting (free registration required), student activity 3.5 Rework a budgethttps://www.practicalmoneyskills.com/foreducators/lesson_plans/teens.phpVirginia Council on Economic Education

EPF.10 The student will develop consumer skills bya) examining basic economic concepts and their relation to product prices and consumerspendingDay 1 - Prices and decisionsContent KnowledgeThe economic way of thinking learned in earlier units is a valuable tool in personal financedecisions. In this unit, the focus is on budgeting and consumer skills. Remind students thateveryone faces scarcity--we can’t have everything we want. Everyone must make choices andall choices have opportunity costs--things we give up to get our choices. The goal is to use ourresources to get the most of what we want--keeping in mind that we don’t all want the samethings. Having goals makes it easier for one to prioritize choices. A budget is just a spendingplan that helps one control one’s money to reflect one's priorities.Remembering some other basic economic concepts will be useful as students learn to be moreeffective consumers. The incentive of consumers is to get the most for their money. Theincentive of producers (companies/businesses) is to earn a profit. First--companies are seekingto earn a profit and are competing for the business of consumers--so, it’s worthwhile to shoparound to see who is offering the best product, service and price. Remind students that prices aredetermined by supply and demand. A consumer who must see a new movie the first week itcomes out, or buy a new Ipad its first week on the market, can expect to pay a higher price thana consumer who waits. Remind students that they have a role in the economy as both consumersand producers (if they have jobs) by reviewing the circular flow diagram.VocabularyCircular Flow - The movement of output and income from one sector of the economy toanother; often illustrated as a circular flow diagram.Demand – The quantity of a good or service that buyers are willing and able to buy at allpossible prices during a period of time.Incentive – Any reward or benefit, such as money, advantage or good feeling that motivatespeople to do something.Price – The amount of money that people pay when they buy a good or service; the amount theyreceive when they sell a good or service.Profit – Income received for entrepreneurial skills and risk taking, calculated by subtracting allof a firm's explicit and implicit costs from its total revenues.Supply – The amount of a good or service that producers are willing and able to offer for sale ateach possible price during a given period of time.Virginia Board of Education FrameworkEconomic concepts such as profit, incentive, consumer sovereignty, supply and demand, andcompetition all relate to product prices and consumer spending:Virginia Council on Economic Education

· Profit is an incentive for producers.· Businesses produce what consumers demand, a concept known as consumer sovereignty.· If the cost of production goes up, supply will decrease and prices will rise; if the cost ofproduction goes down, supply will increase and prices will fall.· An increase in productivity lowers the cost of production and thus increases supply,leading to a decrease in price.· Competition among businesses affects consumer prices.· Changes in income affect the demand for goods and services; an increase in incomeincreases demand for most products, and vice versa.· Interest income is an incentive to save money.· Supply and demand for a product or service determine price.Teaching Tips1) In this lesson you will be using some of the economics concepts taught earlier, bringing themto bear on consumer decision-making. Display a circular flow chart for review. (The circularflow model was discussed in Unit 3 and is explained at EPF 2j.) Ask students where they fit asconsumers. (In the goods and services market) Point to the goods and services market and askstudents if they have favorite places to shop for athletic shoes. How do they decide where toshop? If several stores carry the same shoes, do they all charge the same price? Remind studentsthat stores often compete on price--so, it can be worthwhile to shop around. In what other waysdo stores compete? (Offering better service, generous return policies, convenient shopping hours)Why do stores work hard competing for your business? (They must earn a profit to stay inbusiness.) What happens to stores which don’t make consumers happy? (They go out of businessand their employees lose their jobs.)The teacher may wish to use the lesson from Financial Fitness for Life (below), whichemphasizes the competition between producers, and the concept of consumer sovereignty.Remind students that goods and services are exchanged by firms for money from households inproduct markets, and that factors of production are exchanged by households for money fromfirms in factor (resource) markets. Draw attention to the fact that both flows are equal. Askstudents what this indicates about the perceived value of the products or factors? (In each case,the party receiving must value what they receive more highly than what they give up.)2) Post the following quotation from the explanation of Markets and Prices in VirtualEconomics, and lead a class discussion of it:Prices provide incentives to both buyers and sellers. For example, if poorweather in Brazil causes a reduction in the supply of coffee and an increase in theprice of coffee, then at least some buyers of coffee will react to the higher price byreducing the amount of coffee they drink or by substituting some other drink. If thedemand for fresh fruits and vegetables increases, causing the price to rise, then atleast some suppliers will react to the higher price by producing more. In this way,flexible and adjustable prices are messengers in a market economy, revealingVirginia Council on Economic Education

information on supply and demand conditions and providing incentives for marketparticipants to respond appropriately to that information.How does this explain the response of buyers and sellers to incentives? Ask students ifthey have ever switched from buying one product to another when the price went up? Ifthe price of Pepsi went up, would you consider switching to Coke? Being aware ofprices and switching to lower priced products can help one save money which can beused to reach their most important goals.3) Remind students that small changes in choices can make a big difference. Justsubstituting a glass of water for a soft drink in a restaurant can save $1-$2. Making thatchoice once a day for a year could save $365-$730 plus tax per year! Have studentsrefer to their calculations about how much they will have to save to achieve their goalsand look at how much closer they could be to achieving a goal with that additional sum.Ask them what is their opportunity cost of consuming a soft drink once a day for a year?(If their next best choice would be to save, the opportunity cost could be achievement ofa goal with that additional savings.)Lessons and ResourcesFinancial Fitness for Life Grades 6-8 Lesson 1: Resources Are ScarceEntrepreneurship in the U.S. Economy Lesson 9: The Circular Flow Between Consumers andEntrepreneursEconedlink Lesson, The Best Deal. https://www.econedlink.org/resources/the-best-deal/VideoWhat if there were no prices?https://www.learnliberty.org/videos/what-if-there-were-no-prices-railroad-thought-experiment/Virginia Council on Economic Education

EPF.10 The student will develop consumer skills byc) describing the steps in making a purchasing decision, including the roles of marginalbenefit and marginal costf) demonstrating comparison-shopping skillsDays 1 & 2 – Deciding whether and when to buyContent KnowledgeShopping is a national sport. That said, careful shopping can result in getting better products andbetter prices. Applying economic tools such as weighing marginal costs and marginal benefitsand using decision-models such as the PACED model can help clarify choices and make forbetter decisions. Information about reliability of products and sellers can make a difference inpurchasing decisions. Learning how to research products and having a method for comparisonshopping can provide the basic information needed to apply the PACED model.VocabularyMarginal Benefit – The additional gain from consuming or producing one more unit of a goodor service; can be measured in dollars or satisfaction.Marginal Cost – The increase in a producer's total cost when it increases its output by one unit.PACED Decision-making Model – A decision-making process designed to help people solveproblems in a rational, systematic way. It includes the following steps: State the Problem, ListAlternatives, Identify Criteria, Evaluate Alternatives, and Make a Decision.Virginia Department of Education FrameworkEPF.10c: Purchase decisions are made more easily when marginal benefit and marginal cost areconsidered.The use of decision models can improve purchase decision-making.Marginal benefits are the additional benefits of consuming one more of something. Marginalcosts are the additional costs (i.e., what one must give up) of getting one more. For example, themarginal benefit of buying one more pair of jeans might be the time saved by having to washjeans less frequently. The marginal cost of one more pair of jeans might be giving up buying anew shirt or pair of shoes.Sample Decision Model (PACED)Step 1: Determine the problem.Step 2: List the alternatives.Step 3: Establish criteria.Step 4: Evaluate each alternative according to the criteria.Step 5: Decide.Virginia Council on Economic Education

Other steps which could improve decision-making include· researching prices for commonly purchased items· using comparison shopping· weighing the pros and cons of sales incentives, guarantees, warranties, and rebates· understanding sales terminology· planning purchases and avoiding impulse buying· computing unit prices· reading labels· reading contracts· computing total costs· checking references of businesses· patronizing reputable businesses.EPF.10f: Comparison shopping involves consideration of•value•time•convenience•dollar costs•payment options•negotiations of prices and terms•the consequences of conspicuous consumption•opportunity cost•costs and benefits.Teaching Tips1) Marginal benefit is the change in total benefit resulting from an action. Marginal cost is thechange in total cost resulting from an action. Have students identify the marginal benefit ofbuying and consuming additional granola bars. Contrast this with the marginal cost of acquiringadditional granola bars. Remind students that as one consumes more and more of the samething, diminishing marginal utility sets in. Explain that with each purchase, it’s helpful to ask,“What are the benefits I’m going to get from this?” and “What are the costs--that is, what are thebenefits I would get from the thing I’m giving up, my opportunity cost?” “Would I rather have afourth pair of running shoes or would something else give me more benefits?”2) Remind students, as long as the marginal benefit of an activity exceeds the marginal cost,people are better off doing more of it; if the marginal cost exceeds the marginal benefit, they arebetter off doing less of it. Ask if any students lift weights. If you go to the gym, do you lift thesame weight over and over for an hour? Why not? (At some point, the marginal benefits ofadditional lifts would not be helpful; they might in fact make you quite sore.) You wouldexperience diminishing marginal utility. Ask students for examples of how this would apply tospending decisions.3) Ask students how they ordinarily make shopping decisions. Is it important to do researchbefore buying? (In some cases, it can be very important—for expensive and complex products.Virginia Council on Economic Education

In the case of some simple or inexpensive products, it may be less important and therefore thecost of the time required for research may not be worth the benefits that can be achieved; butsome kinds of research are readily available, such as comparing unit prices of products at thegrocery store. The savings may be considerable and therefore make it worth the effort even forsimple and inexpensive products.) What are some other methods of research, besides comparingunit prices at the grocery store? (Discussions with friends and relatives about the value andconvenience of products; online research; in-store research)Is all information that’s available, equally reliable? (No.) How can people evaluate the reliabilityof information about products? (They can consider the motives of the entity providing theinformation.) Is the information from the seller? Sellers want happy customers, but they alsohave an incentive to encourage sales. Does the seller have a reputation for providing reliableinformation? Is the information from an independent source such as Consumer Reports? Is itfrom online customer reviews? If so, do the reviews indicate how long the customer has ownedthe product? A person who has had the product only a short time won’t be able to evaluate theproduct’s durability. Which customers are most likely to submit reviews? (Those who are themost unhappy or the most happy with the product.)4) Is it important to evaluate the seller from whom you are considering buying? (In cases wherethe product does not have a long track record, or is nonstandard (for example, with usedproducts, or custom services), it can be very important.) How can one find out about thereputation of a seller? (Better Business Bureau; Virginia Department of Agriculture andConsumer Services Complaint Database; people you know who have done business with theseller)5) Introduce the idea of negotiation. Do all products and services have set prices? (While we arefamilier with buying things at set prices, some items can be negotiated as to prices or terms.Priceline is one example, in which buyers can bid on hotel rooms. Negotiation is the rule withauto purchases. And home purchases also typically involve negotiation as to both price andterms.) Is research important if you plan to negotiate with a seller? Where can you getinformation to help you negotiate? (Consumer Reports and others offer information about autodealers’ costs; online public records have information on sales prices and tax assessments forhomes.)6) Introduce the seven-step method for comparing products and making purchase decisions in theFinancial Fitness for Life lesson below. Refer to the Teacher Guide and discuss the stepsinvolved in researching a purchase. Assign students in teams of 2-4 to research products such asthose listed in the lesson, or appropriate alternatives. The teacher may wish to separate theresearch portion of the process from the decision making, and have the students use the PACEDmodel on Day 2 to arrive at decisions, after students have reported on their research.Lessons and ResourcesFinancial Fitness for Life Grades 6-8 Lesson 17: Comparison Shopping, student exercise 17.2Virginia Council on Economic Education

Econedlink Lesson. PACED Decision Grid.https://www.econedlink.org/resources/dynamic-decision-making/Consumer Reportswww.consumerreports.org/Tips for Being a Savvy Consumerhttp://www.usa.gov/topics/consumer/smart-shopping/tips.shtmlBetter Business Bureauhttp://www.bbb.org/Virginia Department of Agriculture and Consumer Serviceshttp://www.vdacs.virginia.gov/Priceline. This booking site is a clever way to allow students to research global prices.http://www.priceline.com/Video:“Economic Decision-making” page from VCEE.https://vcee.org/economic-decision-making-ms-and-hs/Virginia Council on Economic Education

EPF.10 The student will develop consumer skills bye) describing common types of contracts and the implications of eachDay 1 - Understanding contract basicsContent KnowledgeVarious types of contracts affect consumers. Before signing a contract, one needs to understandthe provisions in it and how they may affect the signer, because they are enforceable by law.Contracts often contain an explicit right to rescission, but the length of time may vary. Manyyoung people need a cosigner to enter into a contract.VocabularyContract – A formal agreement between parties that specifies what each party is going to do inreturn for receiving something from the other party.Co-Signer – A party to agrees to become part of a contract, guaranteeing payment if one of theparties defaults.Rescission – A part of many contracts that allows one or the other party to change their mind andvoid the contract within a specified period of time.Virginia Board of Education FrameworkVarious types on contracts impact consumers.A contract is a binding legal agreement that is enforceable by law.Examples of contracts include· movie rental memberships· property rentals· cell phone agreements· online contracts (e.g., for networking space, cell phone ringtones)· payday loans· title loans· rent-to-own agreements.There are legal consequences for failure to comply with contract requirements.Implications and related concepts include· three-day rescission period· circumstances requiring co-signatures· legal ramifications of adults (e.g., roommates) sharing financial responsibilities involvinga contractTeaching TipsVirginia Council on Economic Education

1) Explain that once a person qualified to enter into a contract, does so in writing, and somethingis exchanged, the contract ordinarily is enforceable by law. Because of its legal effect, a personwho is considering entering into a contract needs to read and understand all of the provisions ofthe contract before signing. In the case of online transactions, a “signature” can be electronic.The teacher may wish to use lesson one from the Contract and Consumer Law lesson series (linkbelow) teach contract basics.2) Obtain and review examples of movie rental/streaming memberships, property rentals, cellphone agreements, online contracts (e.g., for networking space, cell phone ringtones), paydayloans, title loans, and rent-to-own agreements, pointing out any rescission provisions andenumerated penalties for breaching the contract3) You may want to invite a lawyer or a loan officer to address the class. Have the guest discusscircumstances in which a co-signer may be required.4) Explain that in the case of property rental contracts; ordinarily the person (lessee) who signsthe contract with the owner is entirely responsible to the owner, even if the lessee shares theapartment with others. The presence of others having the use of the apartment does not relievethe lessee from fulfilling all obligations set out in the contract.5) Using lesson six from the Contract and Consumer Law lesson series (link below), havestudents read about sample consumer cases and produce a Powerpoint to present the issues.Lessons and ResourcesFocus Institutions and Markets Lesson 2: Property Rights and Contracts as EconomicInstitutionsVirginia Attorney General, Residential Landlord-Tenant Issueshttps://oag.state.va.us/13-resource/634-residential-landlord-tenant-issues?highlight=WyJsYW5kbG9yZCJdFederal Trade Commission: Buyer’s Remorse - the FTC’s Cooling Off Rule May Helphttps://www.consumer.ftc.gov/articles/buyers-remorse-ftcs-cooling-rule-may-helpConsumer Protection Tools from the Consumer Financial Protection Bureau (CFPB)https://www.consumerfinance.gov/consumer-tools/Virginia Council on Economic Education

EPF.10 The student will develop consumer skills byj) explaining consumer rights, responsibilities, remedies and the importance of consumervigilanceDay 1 - Consumer rights, responsibilities and remediesContent KnowledgeConsumers have rights, responsibilities, and remedies. They also have a responsibility to bevigilant.1Virginia Board of Education FrameworkConsumers have the right• to be informed• to be safe• to choose• to be heard• to have avenues for redress of consumer grievances (e.g., state and federal agencies,consumer protection laws, private groups such as Common Cause and Better BusinessBureau).Consumer responsibilities include• verifying receipts and statements• contesting an incorrect bill• maintaining consumer vigilance• safeguarding against fraud.Remedies should include• maintaining awareness of the rights and responsibilities of minors• contesting an incorrect bill• registering a consumer complaint.Consumer skills include comprehending and using• consumer protection laws, such as those related to product recalls and product labeling• government agencies responsible for enforcing consumer protection laws• private groups that work for consumer protection.Teaching Tips1) Ask students if they have ever felt mistreated or cheated in a business transaction. What dothey think they can do? What do they think their rights are? The teacher may wish to project thewebpage Filing Consumer Complaints (below) and go over some of the terms with which theVirginia Council on Economic Education

students may be unfamiliar, such as third parties, consumer advocacy, fraud and scams, and tradeassociations.2) Ask students whether they are aware of anyone being seriously harmed or killed as a result ofusing a product. If a person experiences harm from a product, what should a person do to helpprevent harm to others? (Report: problems with drugs to the US Food and Drug Administration;problems with other unsafe products to Consumer Product Safety Commission)Are there other consumer grievances that one should report to help the public? (Potential,attempted, or accomplished identity theft, telemarketing, email spam, debt collection, databreach, and credit reporting should be reported to the Federal Trade Commission Bureau ofConsumer Protection)3) Assign students to research the sites listed below and then write letters of complaint using thetemplate provided at the Filing Consumer Complaints site.Lessons and ResourcesFinancial Fitness for Life, Lesson 18 - Consumer Credit ProtectionFiling Consumer Complaintshttp://www.usa.gov/topics/consumer/complaint.shtmlUS Food and Drug Administration reportinghttp://www.fda.gov/Safety/ReportaProblem/default.htmConsumer Product Safety Commission reportinghttp://www.cpsc.gov/Federal Trade Commissionhttps://www.ftccomplaintassistant.gov/Virginia Council on Economic Education

EPF.10 The student will develop consumer skills byg) maintaining a filing system for personal financial recordsk) examining precautions for protecting identity and other personal informationDay 1 - Protecting yourselfContent KnowledgeProtecting oneself requires maintaining records of transactions, and vigilance against identitytheft and other kinds of fraud.Virginia Board of Education FrameworkEPF.10g: A well maintained filing system gives one access to personal records when needed.A well maintained filing system includes ease of storage retrieval and shredding of documents.Manual and electronic are the primary types of filing systems.Systems can have numeric, chronological, and/or tickler access.EPF.10k: Types of identity theft change regularly. Consumers must be aware of current methodsand how to protect their identity.Ways to avoid becoming a victim may include• safeguarding financial documents• refusing to give personal information to phone or e-mail solicitations• shredding documents that contain personal information• using secure Internet sites• being aware of surroundings when making financial transactions• immediately reporting theft or loss of identification, checks, credit cards, and personalfinancial documents and data• checking financial statements regularlyTeaching Tips1) Explain basic types of filing systems – alphabetical by place purchased, categorical by type ofpurchase, chronological by date purchased. Explain the advantages and disadvantages of each.Ask students to consider which they feel would be most useful to them and ask them to explaintheir thinking.2) The lesson “Coming to grips with your finances” describes a filing system and has excellenthandouts detailing what to keep and what to discard.Virginia Council on Economic Education

3) Have students use the internet sources listed below to research and report on credit card fraudand protective measures one should take in using the internet.4) Direct students to the identity theft prevention sites below. Have them produce powerpoints orvideos to explain how to protect oneself from identity theft.Lessons and ResourcesFinancial Fitness for Life, Lesson 19 - Don’t Be ScammedComing to grips with your finances--lesson 2https://files.eric.ed.gov/fulltext/ED364714.pdfGuide to online protection:https://www.vita.virginia.gov/commonwealth-security/awareness-toolkit/citizen-awareness/guide-to-online-protection/Avoiding ID and credit card fraud:http://www.idbylandau.com/v/vspfiles/resource/avoiding-id-and-credit-fraud.htmlPhiladelphia Federal Reserve Bank: Protecting Yourself from Identity Thefthttps://www.philadelphiafed.org/-/media/consumer-resources/publications/protecting-yourself-against-identify-theft.pdfFederal Trade Commission Identity Theft Site: http://www.ftc.gov/bcp/edu/microsites/idtheft/EVALUATION DAYVirginia Council on Economic Education