[ Standards ]
Students will be able to:
- Compare the benefits and costs of spending decisions.
- Evaluate information about products and services.
- Compare the advantages and disadvantages of different payment methods.
- Analyze the benefits and costs of consumer credit.
- Compare sources of consumer credit.
- Explain factors that affect creditworthiness and the purpose of credit records.
- Identify ways to avoid or correct credit problems.
- Describe the rights and responsibilities of buyers and sellers under consumer protection laws.
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| Online transactions can make consumers vulnerable to privacy infringement and identity theft. |
Analyze the privacy policies of online shopping sites. |
| Comparing the costs and benefits of buying on credit is key to making a good purchase decision. |
Calculate the costs and benefits of borrowing to buy, given a scenario including purchase price and credit terms.
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For any given loan amount and interest rate, the longer the loan period, the smaller the monthly payment and the larger the total cost of credit.
Making minimum payments on credit card balances increases the total cost and repayment time.
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Describe the consumer advantages and disadvantages of a short-period loan versus a long-period loan. |
| Consumers can choose from a variety of credit sources. |
Compare annual percentage rates and total credit costs for a given loan amount and time from three different types of lenders. |
Credit bureaus maintain credit reports, which record borrowers’ histories of repaying loans.
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Explain the value of credit reports to borrowers and lenders.
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Bankruptcy provides debt relief, but has serious negative consequences.
Negative information in credit reports can affect your financial future.
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Describe the negative consequences of bankruptcy, such as the increased difficulty of getting credit in the future.
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| Laws and regulations exist to protect consumers from a variety of seller and lender abuses. (See glossary.) |
Give examples of abuses, such as fraud and the sale of faulty products, that consumer protection laws and regulations address. |
Formal complaints and government/community agencies can help consumers resolve problems with goods and services.
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Write a complaint letter that states the problem, asks for specific action, includes copies of related documents, and provides contact information.
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