ED 060 210

AUTHORTITLE

INSTITUTIONPUB DATENOTEAVAILABLE FROM

EDRS PRICEDESCRIPTORS

DOCUMENT RESUME

Campbell, Sally R.Consumer EducationResource Series.Sears, Roebuck and71105p.Association Sterling Films, Inc., 512 BurlingtonAvenue, LaGrange, Illinois 60525 ($5.00)

VT 014 838

in an Age of Adaptation. Educator

Co., Chicago, III.

MF-$0.65 HC Not Available from EDRS.Age Differences; *Behavioral Objectives;Bibliographies; Consumer Economics; *ConsumerEducation; Cultural Differences; EducationalObjectives; Educational Resources; EvaluationTechniques; Intelligence Differences; MotivationTechniques; *Resource Guides; Social Differences;*Student Needs; Teaching Techniques

ABSTRACTDesigned to serve as a reference and resource, this

publication contains ideas and Information to help teachers modifycontent and teaching methods to assist students in coping with thechanging marketplace. Part 1 of the guide lists educationalobjectives for these major content areas: (1) The Consumer and theEconomy, (2) Values and Goals, (3) Occupation and Income, (4)

Management of Resources, (5) Economic Choices, (5) Advertising,Selling Aids, and Motivators, (7) Buying Goods and Services, (8)

Housing, (9) Insurance Protection, (10) Savings and Investments, (11)

Taxes, (12) Consumer Grievances, Information, Credit, Protection,Rights, and Responsibilities, and (13) The Consumer and theEnvironment. Part 2 provides general suggestions for adaptingprograms to meet student needs as well as specific suggestions foradapting to cultural differences, age differences, differences inlearning ability, and differences in economic characteristics. Part 3offers several questionnaires, surveys, and opinionnaires to use inidentifying, motivating, and evaluating students. Parts 4 and 5contain a bibliography of readings and a glossary of consumer terms.(SB)

,

Sears EDUCATOR RESOURCE SERIES

CONSUMER EDUCATION IN AN

A%.." CIF ADAPTATION

i

One of the Many Services of SearsConsumer Information Services

Dept. 703 Public Relations

Sears, Roebuck and Co.

Chicago, Illinois 60611

Copyright 1971 by Sears. Roebuck and Co.

PERMISSION TO REPRODUCE THIS. COPY-RIGHTED MATERIAL BY MICROFICHE ONLYFMB; BEEN GRAM7:44.66,

Jef

TO ERIC AND ORGANIZA11ONS OPERATINGUNDER AGREEMENTS WITH THE U.S. OFFICEOF EDUCATION FURTHER REPRODUCTIONOUTSIDE THE ERIC SYSTEM REQUIRES PER.MISSION OF THE COPYRIGHT OWNER.-

Note: Permission is hereby granted to educationalinstitutions to reproduce the devices foridentifying motivating and evaluatingstudents on pages 56 through 83 forinstructional purposes. Other reproductionof this material is not permitted withoutthe express consent of Sears, Roebuck and Co.

U S. DEPARTMENT OF HEALTH.EDUCATION & WELFAREOFFICE OF EDUCATION

THIS 00CUmENT HAS BEEN REPRO-OLICE0 EXACTLY AS RECEIVE0 FROMTHE PERSON OR ORGANIZATION ORIG.MATING IT POINTS OF VIEW OR OINNIONS STATED 00 NOT NECESSARILYREPRESENT OFFICIAL OFFICE OF EDUCATION POSmON OR POLICY

CONSUMER EDIPTION IN AN

AGE OF ADAPTATION

by

Sally R. Campbell

in cooperation with the Consumer Information Services of Sears, Roebuck and Co.

3 3

"Business must account for its stewardship not only on thebalance sheet but also in the matters ofsocial 7 esponsibility."

Gen. Robert E. WoodPresident, 1928-1939

Chairman of the Board, 1939-1954Sears, Roebuck and Co.

4

CONSUMER EDUCATION INAN AGE OF ADAPTATION

table of contents

Educational Objectivesin Major Content Areas 8

The Consumer and the Economy 11Values and Goals 11Occupation and Income 12Management of Resources 12Economic Choices 13Consumer Information 13Advertising, Selling Aids and Motivators 14Buying Goods and Services 14Housing 15Consumer Credit 15Insurance Protection 16Savings and Investments 16Taxes 17Consumer Grievances iTConsumer Protection 18Consumer Rights and Responsibilities . . . 18The Consumer and the Environment 19

IIAdapting to Meet Student Needs 20

Shared Consumer Interests 21General Suggestions for Adapting toMeet Student Needs 22Adapting for Cultural Differences 24

1. Sensitive Areas AmongEthnic Groups 26

2. Suggestions for AccommodatingEthnic Diversity in the Classroom . . .27

3. Considerations for Adapting ConsumerEducation Content Areas to Meet theNeeds of Various Ethnic Groups 28

Adapting for Age Differences 301. Students as Consumers 302. Learning Characteristics of

Different Age Groups 32Adapting for Differences in LearningAbilities 35

1. Low-Ability Learners 262. High-Ability Learners 38

Adapting for Different EconomicCharacteristics 40

1. Economically DisadvantagedStudents 41

2. Economically Advantaged Students . 413. Differences in Consumer Behavior. . 42

Common Consumer Problems andLearning Experiences 44

1. Earning Money 452. Managing Resources 463. Spending Mnney 474. Using Credit 485. Dealing with Financial Problems

and Crises 496. Providing Financial Security 507. Obtaining Information and Advice . 518. Understanding the Economy 52

Other Learning Experiences andMotivators 53

IIIDevices for Identifying, Motivatingand Evaluating Students 54

Teacher Questionnaire 56Student Survey 60Opinionnaires 67Content Questionnaire 74Consumer Behavior Questioimaire 81Words to Know 83

IVBillliograph7 and Suggested Readings 84

Appendix: Glossary of Consumer Terms .

5

PREFACE TO

consumereducationin an ageofadaptation

In an ag e in which change is a certainty, ihe abil-ity to adapt is essential in practically al/ areasof endeavor. "Consumer Education in an Age ofAdaptation" was written to help consumer edu-cators assist their students in coping withchange. It is designed to serve as a referenceand resourcea compendium of ideas and in-formation to help teachers modify content andteaching methods to meet differ*/ tudentneeds while keeping pace in the changing mar-ketpkwe in which consumer activities are car-ried out.

Because "Consumer Education in an Age ofAdaptation" is extensive in its scope, many per-sons in various professional fields were con-sulted prior to its publication. The followingpages represent a synthesis of their suggestionsand expertise, rather than individual view-points. For their encouragement and for theircritico2 review of the preliminary manuscript,the author extends grateful appreciation to:

About the author:Sally It. Campbell is a well-known consul-tant on consumer education and consumeraffairs whose informative articles appearfrequently in professional and consumerpublications. She is the author of the edu-cator resource guide "A Department Storein the Classroom" and works closely withconsumer educators throughout the coun-try. Mrs. CampbeE holds a Master's Degreein Home Economics Education and forsome years served as Editor of The MoneyManagement Institute of Household Fi-nance Corporation.

4

Mrs. Betty CappsHome Economies Specialist,Colorado State Department ofSocial ServicesDenver, Colorado

Dr. Valerie M. ChamberlainAssociate Professor,Home Economics Education,Texas Tech UniversityLubbock, Texas

Dr. Donald M. ClarkExecutive Director,Niagara Falls IndustryEducation CouncilNiagara Falls, New York

Dr. Ernst A. DauerPresident, Illinois Council onEconomic Education andVisiting Professor of Finance,Loyola UniversityChicago, Illinois

Dr. Lawrence W. EricksonA3sistant Dean, GraduateSchool of Education,University of CaliforniaLos Angeles, California

Dr. Elsie FettermanFamily Economics Specialist,The University of ConnecticutStorrs, ConnecticutMrs. Kathleen FunderburkCurriculum Consultant,Home Economics Education,State of Florida Department ofEducationTallahassee, Florida

Dr. E. Thomas GarmanAssistant Prof es.ior ofBusiness Education,Northern Illinois UniversityDeKalb, Illinois

Robert E. GibsonPresident, National Foundationfor Consumer CreditWashington, D. C.

Mrs. W. L. D. GlassConsultant, VocationalHomemaking Education,Texas Education AgencyTyler, Texas

Mrs. Mary R. HendricksonCo-Director, InterculturalConsumer Education Center,Fresno State CollegeFresno, California

Hillis K. IdlemanAssociate in SecondaryCurriculum, ConsumerEducation Specialist,The State Education DepartmentAlbany, New York

Mrs. Edna DeCoursey JohnsonDirector, Consumer ServicesProgram,Baltimore Urban LeagueBaltimore, Maryland

Mrs. Alice 0. KopanArea C Home EconomiesSupervisor, ChicagoBoard of EducationChicago, Illinois

Dr. Andrew T. KopanChairman, Department ofEducational Four-dations,School of Education,De Paul UniversityChicago, Illinois

Noel McGuireCoordinator, EconomicEducation,Little Rock Public SchoolsLittle Rock, Arkansas

Dr. Marion E. MinotAssistant Prof esser. Departmentof Community Service Education,College of Human Ecology,Cornell UniversityIthaca, New York

Dr. Justine B. O'ReillyCoordinator, ConsumerEducation, Area III,Portland Public SchoolsPortland, Oregon

Faith PriorExtension Family Economist,University of VermontBurlington, Vermont

Dr. Ann S. RiceAssociate Professor of Consumerand Home Economics Education,Utah State UniversityLogan, Utah

Mrs. E. Ruth RodmanCoordinator of Consumer Affairs,School District of PlriladelphiaPhiladelphia, Pennsylvania

Dr. Elizabeth J. SimpsonSpecial Assistant toAssociate Commissioner,Bureau of Adult and Vocational-Technical Education,U. S. Department of Health,Education and W elfareWashington. D. C.

Mrs. Ella E. StackhouseExtension Home EconomistKansas City, Missouri

Alice M. StewartAssistance Standards Specialist,A ssistance Standards Branch,A3sistance PaymentsAdministration, Social andRehabilitation Services,U. S. Department of Health,Education and WelfareWashington, D. (1.

Mrs. Lucille E. StilesChairman, Home EconomicsDepartment, Maine TownshipHigh School WestDes Plaines, Illinois

Dr. Helen M. ThalAssistant Director,Educational Division,Institute of Life Insuranc,New York, New York

Dr. Arch W. TroelstrupProfessor Emeritus, FamilyEconomics, Stephens CollegeColumbia, Missouri

Dr. Fred T. WilhelmsSenior Associate,A.moeiation for Supervision andCw-riculum DevelopmentWashington, D. C.

Louise A. YoungProfessor and ExtensionSpecialist, Family Economics,School of Family Resourcesand S'onsumer Sciences,University of WisconsinMadison, Wisconsin

Mrs. Frances ZenorHome Economics Supervisor,Pinellas CountyBoard of InstructionCleP--water, Florida

7

educationalobjertivesin macontenareas

The content areas in this section are basedon an analysis of consumer activities in themodern marketplace and the financial world.They are intended to cover the most importantareas in which students will function as con-sumers.

As used in this publication, an educationalobjective is a broad statement of performanceor behavior expected from learners during, orat the end of, a consumer education unit orcourse. We have tried to make the objectivesboth measurable and observable.

Educational objectives are provided todirect both teacher and student toward vecificends. They show what the learner should beable to cla, as a result of participating in tbe

connimer education program. Instructional ob-jectives stated in behavioral terms can alsoserve as a guide to the planning and evaluationof curriculum, the selection of appropriatematerials, the choice of teaching methods andthe selection and use of evaluation devices.

It is not ow intention that these objectives,representing optimum achievement levels, beaccepted as they appear. Rather, they shouldbe critically reviewed and revised, modified andadapted, to arrive at an appropriate set ofeducational objectives to fit your specificteaching situation and to meet the needs ofyour students. Factors to consider in preparingand evaluating objectives for your own useinclude:

an analysis of the marketplace and the fmancial world as they relate to your students and yourcommunity to determine which competencies axe necessary forlearners to cope with consumer probkms and to obtain maximumsatisfaction and utiliza.lon of resources.

a close look at the makeup of your classes cultural aspects, age levels, ability levels andeconomic charaderistics to determine where and how you willneed to adapt to meet individual student needs.

In "Consumer Education in an Age of Adaptation:' educationalobjectives fur the six cognitive levels can be identified by theroman numeral following each objective. A classification of eachlevel, including primary emphases, objectives and action verbs, ispresented in the following chart for quick reference and use.

9 9

CLASSIFICATION OF OBJECTIVESIN THE COGNITIVE DOMAIN

EM&SISLEVEL OBJECTIVE VERBS TO USE

II

Show that you know.

Show that youunderstand.

Comprehension

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Show that youperceive andcan pick out themost importantpoints in materialpresented.

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Show that you cancombine conceptsto create an originalor new idea.

VIEvaluation

EDUCATIONAL OBJECTIVESAND CURRICULUM DEVELOPMENT

Educational cbjectives have been classifiedin three domains -- the cognitive. the affectiveand the psychomotor.

The cognitive domain omeenis the in-tellectual abilities and tbe developroent ofthought processes.

The affective domain COI:ice-11u emotionaldevelopment and is related to irderests, atti-tudes, values and goals.

The psychomotor domain Concerns motor10

activities and skills.Ideally, a set of educational objectives in all

three domains would serve as a guide toteachers and students in setting up an instruc-tional program. For those who would like towork with students in developing objectives inthe affective and psychomotor domains, thereferences on page 85 provide a comprehensiveexplanation of educational objectives in allthree domains.

10

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'ICONAL CBJECTIVESLJCATIONI

I3ESIRABLE ECRJCATIONAL OBJECTIVESTHE INFORMED CONSUMER CAN _ _

list basic characteristics of the American economyand describe important principles on which oureconomic system is based_ (I)explain the basic and direct effects of economicconditions on the individual and the effect of theindividual on economic conditions particularlywith respect to wages, prices, supply and demand,inflation, recession, pi-ants arid competition_ (11)apply this understanding of economic principles tohis combined role of consumer, worker and citizen.-(LWorganize his concepts or the economy into a frame-work within which personal financial plans andactivities are carried out_ (IV)compile information about consumer, business, laborarm/ government points of view to arrive at an.objective stand on pressing economic issues andproblems_ (T7)contrast his performance as a consumer with estab-lished consumer responsibilities in a basically freeeconomy_ (VI)

THE RNFORMED CONSUMER CAN - -tell how values and goals differ for different people asa result of many factors, including ethnic back-grounds, environment, and philosophical and religiousbeliefs- (1)illustrate ways in which values And goals are related tothe use of resources_ (Il)demonstrate how his consumer choices and financialplanning are directly related to personal values andgoals- (ELF)determine how different stages in the life cycle affectindividual goals and as a result bring changes inspending patterns- (ITOplan for more efacient and satisfying use or moneybased on an awareness and understanding or his ownvalues and goals_ (V)evaluate his lifestyle arid speding patterns in termsor recognized values and consciously chosen goals_(VI)

11

DESIRABLE EDUCATIONAL OBJECTIVESTHE INFORMED CONSUMER CAN - -

tell what money will and will not do for theindividual, the family and the society in which theylive_ (I)explain the relationship between occupation, incomeand living standards- UVcollect information on opportunities, requirementsand qiiali-Ncations for different types of employmentwithin a broad area of interest_ (Ill)analyze the ways various economic factors influenceemployment and job opportunities- (Il")develop a plata to prepare for, obtain and succeed at ajob or career of his choice_ (V)evaluate future job opportunities, based on jobmarket trends, personal interests, educational qiialifi-cations, skill requirements, income, opportunities foradvancement and job satisfaction_ (VT)

THE IrsTronmEr CONSUMER. CAN _ _ -identify resources that can be used to contribute toconsumer satisfaction- (I)describe the management process arid explain how itcan help people meet needs and wants with in. limitsof resources_ (Ll)apply basic management principles to the use ofresources available for satisfying consumer needs-(L/.1)

conclude by examining expenses and income, whichpart of income is discretionary and as such offers thegreatest management possibilities_ (iv)formulate a. realistic money management plan basedon present and expected future income, expenses,goals and needs- (V)evaluate (and periodically reassess) his managementprogram in terms of values and goal attainment aswell as economic security- (VI)

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DESIRABLE EUILJCATIC)IVAL CoBJECTIVESTHE INFORMED CONSUMER CAN _ -

list various consumer choices and alternatives in theuse of income- (-0describe choices open to the consumer in the market-place: to save or to spend _ - - to buy or not to buy- - - how much to pay - - what to buy, where to buy,how much to buy - _ to pay cash or use credit- (II)demonstrate the ability to weigh one alternativeagainst another in making economic choices_ (1././)analyze economic issues irt terms of immediate andlong-range effects on individuals and society_ (EV)employ the principle of "opportunity costs" toallocation Qf income and rtialcirig choices_ (Oppor-tunity costs refers to the value of a specific item asmeasured by other items that could be had for thesame price_ Essentially, it is a matter of weighing onealternative against another rather than merely con-sidering cash price of goods and services_ (V)evaluate the impact cif- consumer choices cart personalfinances, on business and on the economy_ (VI)

THE INFORMED CONSUMER CAN -

locate sources of information about differentproducts arid services- (1)explain the relationship between sound consumerinformation arid satisfactory purchasing decisions..(LT)

use consumer information when buying, using andcaring for products, and when 'buying services_ (III)organize corissimer information according to its ob-jectivity, usefulness and source_ (1-V)compile adequate information needed to aid inYrInIciing sound buying choices or goods and services..

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develop criteria for judging how various types ofconsumer information contribute to effective man-agement of resources and decision malciinte_

13

13ESIRABLE EIDUCATIONAL 1DIBJECTIVESTHE INFORMED CONSUMER CAN

recognize methods used to sell goods and services,including advertising, promotions, sales and buyingincentives such as trading stamps and coupons, andsalesmanship at point of sale- (I)

describe how various selling methods affect business,consumers and the economy- (fl)

use knowledge of selling methods ta make logical andintelligent choices in the marketplace. (M)

discriminate between informational and motivationaladvertising.. (FV)

develop an awareness of personal motives forspending decisions- (V)

judge the value and accuracy af various types ofpramotions, advertising and saJ.es in. terms of objec-tive standards_ (VI)

THE INFORMED CONSUMER CAN -

list the advantages of preplanning purchases andcomparative shopping_ (1)explain the basic principles of buymanship- (17)develop and follow sound buying practices for bathroutine and major purchases of szoods and services..(I7:I)

determine the basic provisions and responsil3ilitiescontained in warranties and guaramtees_ (IV)

devise an outline of basic ritsirv Twin g and buyingprinciples which can be applied to the selection ofmajor services such as transportatian., education andhealth care.. (V)

appraise patential pu3L-c.hases on the basis of personalvalues and needs, income limitations, intended use ofpurchases as well as on the basis of quality and priceof goods being cansidered for purra-_.thase_ (VI)

'DESIRABLE EDUCATICONAL COBJECTINIESTHE INFORMED coNstymErt CAN - -

define personal housing needs and recognize realisticways to meet them- (I)interpret the basic terms of standard leases andmortgage sale contracts as well as the basic rights oftenants and buyers and identify those situationswhere professional legal counsel is necessary tointerpret, negotiate or enforce these rights.. (II)apply knowledge of housing trends, costs and avail-ability to the selection of suitgtble housing_ (III)

outline important aammunity colisiderations in theselection of housing.. (IV)

formulate a plan for finding and paying for housingto meet present and future personal and family needs-(-v)

judge adequacy of available housing in terms ofpersonal and rsarriily values and housing needs for thepresent and the future.. (Vi)

THE INFORMED CONSUMER CAN _ _ _

cite types, sources and relative costs of credit fordifferent purposes_ (I)

descril)e the role of credit in personal money manage-merit and in the empansion of the economy.. (Lt)

choose appropriate procedures when applying for andobtaining credit _ _ - interpreting monthly statements_ - keeping necessary records - - _ 12:Inking payments-(III)

outline major provisions of the Truth in Lending Lawand point out possil,le violations of the law inconsumer transactions_ (IV)

plan the use of credit in terms of present and futureneeds, wants, expenses and income_ (V)

weigh alternatives to the use of credit in variousindividual situations.. (VI)

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DESIRABLE EDUCATIONAL OBJECTIVES

THE INFORMED CONSUMER CAN

describe reasons for and types of taxation. (I

explain how gover-aments local, state and federalallocate ta.a dollars- (11)

prepare accurate and complete records with receiptsneeded for figuring personal taxes- (III)

determine appropriate sources of assistance and ad-vice for preparing tam returns_ (IV)

develop a system for working out tax problems orworking with a tam expert_ (V)

compare and contrast various ways of figuring andpaying personal -t.xes to ascertain the most effectivemethod. (VT)

THE INFORMED CONSUMER CAN - - -

identify the rights and responabilities of both con-sumers and business in typical buyer-seller trans-actions_ (1)

exp7 .in when, where and how to register dis-satisfaction and grievances and where to go forassistance when sellers fail to respond to rea.sonabledemands and requests- (LI)

establish realistic expectations regarding product per-formance_ (III)

distinguisll between misuse of products and productfailure_ (IV)

develop a procedure for reporting grievances andproblems, with necessary facts and details, to propersources in a logical, reasona.ble manner_ (V)

evaluate possible procedures for presenting consumergrievances to manufacturers and sellers to determinewhich methods bring the most satisfactory results forall concerned_ (VI)

17

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'DESIRABLE EI:OLATIONAL OBJECTIVESTHE INFORMED CONSUMER CAN .

identify the more important laws and well-knownagencies that protect and serve consumers- (I)interpret commonly used legal documents and terms-(Lr)

choose consumer protection procedures which areappropriate to the specific problem_ (I17)distinguish among various sources of consumer pro-tect:ion agencies, professional persons and eapertsto formulate an opinion about which are bestqualified tc deal with specinc corisurner problems_(IV)devise methods of protecting personal and publicinterests in the marketplace_ (V)weigh the pros and cons of spec-Mc consumerlegislation or consumer action before taking a irrrrnstand either for or against it- (1,7)

THE INFORMED CONSUMER CAN _ _

define the rights and resportsnailities of consumersto themselves, to the business community and to theoverall economy- (I)e3cplain the importance of protecting consumer rightsand accepting consumer resporesia)ilities.

choose appropriate procedures for carrying out coli-sumer responsalbilities- (I21)

organize sand classify various types of consumeract]hrities and legislation to determine what action tofollow and what legislation to stipport_ (IV)combine and organize corm-lamer rights and responsi-bilities into an overall guide to consumer action anddecisions_ (V)

judge the importance of the consumer role inrelationship to other roles each individual playssuch as worker, -voter, citizen family member,student_ (VD

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DESIRABLE EDUCATIOiVAL OBJECTIVESTHE INFORMED CONSUMER CAN -

identify consumer products and practices which are(1)harmful or potentially harmful to the environment-

recognize &twat natural resources are limited and mustbe conserved,1 managed and protected for present andfuture use- (I)choose appropriate procedures for using and dis-posing of consumer and industria/ products to reduceand, where possil,le, eliminate harmful effects on theenvironment_ (Iir)

analyze various methods of pollution control andenvironmental protection in terms af effectiveness aswell as technological and economic feasthility_ (ry)

develop St plan for personal education, action andinvolvement ha preserving natural resources ama pro-tecting the extvironment_ (V)

evaluate various environmental action groups, legisla-tive proposals and personal involvement possMnitiesto determine which are most effective and worth-while- (-1,7)

al objectives are optimum goals for all personsrner and citizen_ in the consumer educationriatiCMS 42172012g Sifted:ler& Liz cultural back-rzomIc ciz-cumstances. will largely determine.NES can be achieved_'our students will also determine, to a largerues you will employ, your approach to thephasis you will place on each content area_g des4grace tck he4P .3rou adapt to meet thetents according to their commonalities as well-ences that may exist among them_

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SHARED CONSUMER INTERESTS

As consumers we all share certain basic needs andwants. A knowledge of these come on interests andsimilarities provides a solid foundation for setting up acore program in consumer education and for accom-modating differences where they exist. Our sharedconsumer-related goals include:

Personal and family well-being and securitya concern for the well-being of ourselves,

our children and our families everyonedesires a reasonable degree of security, finan-cial And otherwise.

Human dignity the desire to be treated asa human being worthy of respect, recog-nition, acceptance.

Employment opportunities the desire tosupport otuselves and our families byworking at a job of our choice for fair andequal compensation with some degree ofjob security, feeling of belonging, successand accomplithirnnt, worth.

Material necessities and comforts the needfor material necessities (food, clothing,housing, medical care, etc.), the &sire forchoices in satisfying these needs and thedesire to go beyond need to at least a fewcomforts of the "good life" as each of usperceives it.

Fair and equal treatment in the marketplacethe desire to choose from and buy quality

21

goods and reliable services, to pay reasonableprices, to deal with reputable sellers.

Fair and equal treatment in the communitya fair share of community resources and

advantages schooling, protection, housing,public services and &dailies.

Opportunity to redress grievances we allwant to be head we want recourse whenwronged, a place to air grievances and a wayto get satisfaction.

Recognition some acknowledgment, somesympathetic witness to struggles, problems,efforts and achievements.

Acceptance a sense of belonging amongfriends and peers, in a community, in aneighborhood, in a school, on the job.

Sense of environmental mastery thefeeling of some measure of control overpersonal destiny and immediate sur-roundings and/or environinent.

21

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Use examples of products and services stu-dents normally buy. While this will vary withdifferent income levels, different age groupsoften follow typical spending patterns. Forjunior high or middle school, this may includecosm et i cs, snacks, entertainment costs,clothes, records. Senior high students usuallybuy clothes, sporting goods, cosmetics andgrooming supplies and, for some, cars andauto accessories. They also share some familyspending and help make decisions on majorfamily purchases. For adults you can use abroad range of products and services includingautos, housing, credit, furniture and appli-ances, insurance and investments as well asfood, clothing and routine purchases. A shortsurvey or questionnaire can provide a guide tospending patterns.

Work with other teachers and consider theoverall curriculum. Team teaching offers anexcellent way to work with other teachers inpresenting a broad consumer education pro-gram.. Home Economics, Business Education,English, Mathematics, and Social Studies arenatural allies in teaching Consumer Educationas a team. However, if you are not in a teamteaching situation you can still cooperate withother teachers. Find out what consumer-related subject matter is being taught in otherclasses throughout the school and in thecommunity and help students see the relation-ship between the various aspects of consumereducation.

Use community resources and facilities. Allconsumers are members of their communityana share its resources and facilities. There areseveral ways you can use this common in-terest in adapting to meet student needsfield trips, shopping trips, speakers, specificassignments on community agencies and bus-inesses and the services they offer consumers,as well as programs in cooperation withleaders, agencies and businesses in the localgeographic area. Whenever possible, involvethe parents of students. Tape these exper-iences for review and follow-up discussions.

Bring in current events which affect allstudents. Topics of interest to most studentsinclude pending legislation which will affectconsumers, important people in the consumerfield, new products being introduced to con-sumers, economic conditions and their effect

on the consumer and real-life probleoI:icommon among the majority of consumerstoday.

Be flexible. Your classes are not only dif-ferent this year from what they were last year

they may be different tomorrow from whatthey are today. Flexibility and an awarenessof your own emotions are keys to adapting inany subject matter area. It is particularlyimportant in the consumer field where issuesand answers are changing as rapidly as stu-dents change. You need to be ready to workwith new subject matter and try new teachingtechniques almost daily A willingness toexperiment, evaluate and to reject whatdoesn't work helps create the atmosphere ofinquiry and critical thinking that is needed foreffective learning.

Use a multi-media approach. A variety ofteaching materials and approaches increasesthe opportunity of reaching all of yourstudents. Whenever they are appropriate andthey fit into the program, use newspapers,magazines, radio, TV, records, tapes, films,filmstrips and any other available media toachieve consumer education objectives.

Make the most of supportive services. Yourown school as well as local, county and stateboards of education can usually providespecial services to help you improve yourunderstanding of students and deal withspecific problems that may occur. Dependingon where you teach, you may be able toobtain assistance from the special educationdepartment, school psychologist, schoolnurses, counselors, librarians, special con-sultants, reading specialists, other teachersand supervisors. Services may include coun-seling and testing of students with specialproblems and learning difficulties; supple-mentary learning programs for students;special aids for teachers; recommendationsand samples of teaching materials; supple-mentary courses, or in-service instruction tohelp teachers keep abreast of trends inspecific subject matter areas.

ADAPTING FOR

CULTURAL DIFFERENCESToday cultural pluralism is recognized as a key concept in defining and

understanding American life. The "'melting pot" theory has lost validity ascultural variations within the society have achieved increasing significanceand recognition in education, politics, economics, religion and other areasof modern society. Expanded efforts are being made in the schools, notonly to acknowledge and accommodate, but in many cases to encourageand cultivate characteristics of individual cultural heritage. Your schoolsystem may be moving ahead rapidly or slowly to meet the needs ofdifferent ethnic groups. You can be a more relevant teacher if you adaptto the varying cultural differences among your students.

The following pages on cultural relativism are presented for all teachersand especially those who work with students who are culturally different

from the dominant American milieu . . . from other students in thegroup . . and/or from the teacher's cultural background. The purpose ofthis section is to help the teacher communicate with culturally differentstudents that is, to recognize and appreciate the values, beliefs andbehavior of those students without judging or placing a moral value on"different" philosophies and modes of living.

24

terminologyRELATED TO CULTURAL ASPECTS OF SOCIETY

Accommodation a term used to describethe adjustment of hostile individuals orgroups, particularly the adjustmeat of cul-turally different groups into a dominanthostile society.Acculturation a process which occurs whenindividuals of different cultures come intocontact with subse quent changes in thebehavior patterns of both.Assimilation a process where close contactof persons of dicsimitar cultures results in themutual interpenetmtion and fusion of culturaltraits, although the borrowing may not be aspronounced in the one direction as in theothar.Bilingual the ability to use two languageswith the fluency characteristic of a nativespeaker_Culture that complex whole which includesknowledge, beliefs, art, morals, law, customand any other capabilities acquired by man asa member of society.Cultural pluralism the maintenance ofseparate cultural identities within a society_Custom behavior patterns which tradi-tionally are accepted as appropriate for mem-bers of a society.Discrimination the unequal and differentialtreatment of a minority by the dominantgroup in a society particularly in economic,political and/or social areas.Dominant group that group whose behaviorand customs are considered "normal" by themajority of the society the dominant groupshares a common value system, language andhistoric background.Ethnic group a society, either dominant orminority, which has preserved a visibk andviable tradition of values, aspirations andbehavior.Integration a state of caoperation betweendominant and minority woups on an equalbasis.Mass culture a culture in which inost peoplethink, believe and act alike or similarly.

Minority a subordinate group within adominant society, possessing common physi-cal or cultural traits that are "different" fromthose of the dominant group.Mores the fixed morality binding customsof a particular group to the extent of eventranscending physical well-being.Nationality the identification of individualsand groups on the basis of the country oftheir origin and the common experiences ofliving within that country's culture; a peoplehaving a common origin, tradition and Ian-guage-Nativism a policy of favoring native inhab-itants as opposed to immigrants, especially insocial and economic areas.Norms the implicit rules governing what isconsidered "normal" behavior as defined by aparticular society applicable to family life,religion, economics and education.Prejudice a preconceived judgment oropinion against individuals or groups withoutjustification or any basis in factual knowl-edge-Race a term used to categorize individualsand groups primarily according to visiblephysical traits.Segregation an enforced or voluntary pat-tern of isolation, seclusion or difference in theuse of facilities and in the settlement ofcommunities.Status the position of an individual orgroup in relationship to other individuals orgroups within a society.Stereotype a generalization which em-phasizes only certain traits of a group andwhich is applied to all members of the groupwhether or not it is appropriate for individualmembers.Subculture a group within a larger culturewhich is characterized by unique differencesand variations.Values the principles, ideals and beliefswhich govern action and behavior of inli-viduals, groups and societies_

25

sensitiveareasAMONG ETHNIC GROUPS

While ethnic groups vary significantly, theygenerally are sensitive in the same broad areasin which cultural differences are most visible.This is particularly true with respect to familylifestyle, religious beliefs, ethnic pride, lan-guage and education. The following outline isintended to serve as a cursory guide to helpilluminate those areas and also to assist theinstructor in adapting the consumer educationprogram to meet the needs of the personsthey affect.

CULTURAL FACTORS FORTHE TEACHER TO CONSIDER

I. FAMILY LIFESTYLEcomposition and "closeness!' of the familyinfluence of the family on individual familymembersloyalty to the family or to authority figuresin the familyconcept of the family group nuclear orextendedattitude toward unwed parenthoodattitude toward aged members of thefamily unitapproach to decision waking democratic,autocratic or laissez-faireoverall focus of the family child cen-tered, paternal or maternalrole expectations of each family member

IL RELIGION AND PHILOSOPHY OF LIFE

basic tenets of declared religion orpersonalphilosophyrituals and traditionsimportance of religion to individuals andthe ethnic groupreligious organizations and action withinthe communitydietary restrictions and eating habits im-posed by religious beliefs or personalphilosophy

26

III. ETHNIC PRIDEdegree of pride versus feelings of inferiorityachievements and attributes which con-tri.bute to ethnic pride and a positiveself-imageoutstanding individuals from ethnic groups

current and historic figurescontributions of ethnic groups to the dom-inant culture in areas such as the humani-ties, medicine, research, law, education,entertainment, governmentstrength of the relationship and ties withthe country of an ethnic group's origin

W. LANGUAGE DIFFERENCES ANDVARIATIONS

extent of variation from the dominantgroup language and usagewillingness to adaptweaknesses and strengths in oral andwritten communicationlanguage spoken at home native tongueextent of communication problems amongstudents, parents, teachers, administratorsand the community in generalcolloquial and vemaculaT usages of lan-guage which result from regional, local,cultural and age factors

V. EDUCATIONattitude toward education as a means to anend or an end in itselfdifference in educational objectives forboys versus girls in the family or subculturerespect for or suspicion of teachers,administrators or other authority figures,and the school systemeducational level and aspirations of thefamilyeducational aspirations for youngsters

suggestionsFOR ACCOMMODATINGETHNIC DIVERSITYIN THE CLASSROOM

A diversity of cultures in the classroompresents a unique challenge to teachers. But italso offers advantages insofar as it broadensthe educational experience of students andtheir instructors alike. The challenge lies inreaching every individual in the group andpreventing cultural variations from becominga barrier between teacher and students andamong the students themselves. Ethnicdiversity in your classroom provides an oppor-tunity to draw on positive aspects of variouscultures as they relate to subject matter.Above all, it opens avenues of communicationupon which to build an understanding ofother lifestyles in the mosaic of cultimalpluralism which is America. Some techniquesand practices which can help you adapt to thecultural differences of your students follow.

Make an effort to understand and when itcan come naturally to speak that languageof the students which grows out of theirculture, ethnic communities and/or regionalcustoms. When assigned to teach in schoolswhere language is significantly different orunique, it may be helpful to keep a vocabu-lary listing in a notebook, writing down newwords and terms which must be understoodto communicate effectively with students.Emphasize standard English usage to theextent required for the student to functioncompetently when carrying out cons%2mer andfmancial affairs

Look for the positive aspects of each culturalgroup represented in the Oa ,aroom. Find andcommend whatever is particularly admirablein different individuals and thefr culturalheritage.

Become familiar with the communities fromwhich students are drawn. What ethnic organi-zations exist in the different communities andwhat is their purpose? Do food stores andrestaurants feature ethnic food and mealspecialties? What religious groups and activ-ities are important in each community? Isthere a community or ethnic news *Ter orother publication? What are the economic andoccupational patterns?

..;=..zr, .27

Learn something about the lifestyle, concernsand aspirations of students and their families.What type of housing and living conditionsprevail? What are the spending patterns?Where do students and their families shop?What type of problems are common withrespect to the buying and use of goods andservices and the management of financialmatters? Where are students and their fan..;ieslikely to go for advice and help when it isneeded? Will they accept the advice andassistance of "outsiders?"

Develop a viable home / school relationship.Try to communicate regularly with parents orguardians and keep them informed of theobjectives and activities in the classroom andthe schooL When parents use a language otherthan English, make an effort to send messagesto the home in both the native tongue and inEnglish.

Capitalize on the advantages ethnic diversitycan offer. Search out unique ways variousethnic groups deal with situations related toconsumer activities and financial manage-ment.

Obtain suggestions and participation fromstudents in building a curriculum suited toparticular cultural needs. Students can indi-cate when the curriculum should cover diffi-culties such as language difference, unfam-iliarity with shopping facilities and consumeragencies, fear or distrust of outside advisorsand agencies. When students participate inplanning you are more likely to gain anawareness of their needs.

Employ teaching techniques that lead tobetter communication and understandingamong students. These include:

role playing- of typical consumer activitiesand situationspuppets for dramatizing different consumerattitudes and behaviorsimulation in the form of games which putstudents in realistic situationscase studies for presenting a realistic set ofcircumstances for students to analyze andmake recommendationsunfinished sentences or stories for studentsto completeunsolved problems for students to analyzeand find acceptable solutions as well asways to avoid similar problemr !_ri thefuture.

The use of literature and resource people whocan offer insight into different cultural back-grounds can also increase mderstanding in theclassroom. 27

considerationsFOR ADAPTING CONSUMER EDUCATIONCONTENTAREAS ID MEET ME NEEDSOF VARIOUS ETHNIC GROUPS

THE C ONSUMER AND THE ECONOMY

To what degree do minority groups feel theyare a part of the mainstream of economic lifein the dominant society?Are ethnic groups in the area actually par-ticipating in the dominant society? If not, is itdesirable from their own point of view tomake an effort at participating?How different is the economic pattern ofvarious ethnic groups from the Americaneconomic system?

VALUES AND GOALS

Are values similar to, or different from, thevalue system of the dominant society?Where are major departures from the dom-inant value system?How do values and goals of individuals andethnic groups relate to existing reward-punishment theories within the school andwithin your classroom?What changes in the reward-punishment con-cept would be advisable for students withdifferent value structues? What are the "goodthings in life" for different students?

OCCUPATIONS AND INCOME

Do family loyaltles .nterfere with routine jobresponsibilities?Do families depend largely on income fromhusband, wife, or both, from the extended

28

family group or from some form of publicassistance?Is a wife's working considered acceptable orunacceptable, common or exceptional, op-tional or necessary? If the wife's salaryexceeds that of her husband, is this acceptedor rejected by the male head of the family'Does family pride stand in the way ofaccepting public assistance or other forms ofwelfare, even when it is needed?What types of employment are the mostcommon in the community?What are family attitudes toward unemploy-ment?What are the educational levels and as-pirations?Is the choice of occupation open, governed byfamily or ethnic tradition, or restricted byenvironmental or prejudicial factors?Are there any traditional occupations inwhich different ethnic groups tend to excel ordominate?

MANAGEMENT OF RESOURCES

Who makes major decisions mother, father,both, grandparents or members of the ex-tended family group?Who, in addition to the immediate family,must be considered in alioading resources?To what degree are the fundamentals offinancial management understood?What, if any, family or ethnic customs existwith respect to money and its use?

ECONOMIC CHOICES AND BUYINGGOODS AND SERVICES

To what extent might economic choices beinfluenced by ethnic backgrounds?What types of goods and services are con-sidered necessities and what an luxuries?Where are families likely to shop for differenttypes of goods and services?Where do families go for consumer infor-mation and to what extent are they likely toseek out information?

HOUSING

Does housing the family include only immed-iate family or the extended family woup aswell?Is the number of persons living in the homefairly constant or does it fluctuate?Do families in the area have any real choice ofshelter and housing conditions?What characterizes housing? Spaciousness orexcessive crowding . . outer-imposed ghetto,self-imposed ghetto or non-ghetto . . . multi-ple or single family dwellings . . . inner city,suburban or rural environment . . adequateor inadequate facilities . . well or poorlymaintained structures?What are attitudes toward ownership versusrental housing?

CONSUMER CREDIT

What are attitudes toward immediate versusdelayed gratifications?What are attitudes and practices with respectto using consumer credit for different needsand wants?What are the attitudes toward, and frequencyof, delinquency, bankruptcy, repossession andother legal procedures related to the use ofcredit and failure or inability to pay debts?

SAVINGS, INVESTMENTS ANDINSURANCE

What, if any, mutual aid provisions existwithin the ethnic group, community orfamily?What types and quality of financial securitymight be provided through employment andthrough government or other outside assis-tance?What fmancial aid might be available throughreligious or benevolent groups within theethnic community?What are attitudes toward the use of fmancialinstitutions familiarity, suspicion, trust,confidence, awe?How might health care emergencies be met?

CONSUW-A GRIEVANCES ANDPROTECTION

What are attitudes toward, and awareness of,various agencies and individuals who aid andprotect consumers?What types of consumer difficulties are com-mon in the community?To what extent sae families willing and ableto protect their own interests?To what extent are language and customs abarrier to self-protection and use of protectiveagencies?

CONSUMER RIGHTS ANDRESPONSIBILITIES

To what extent are members of ethnic groupsaware of the consumer rights and responsi-bilities which exist in the dominant society?In the practical sens e. can the subculturegroups truly exercise th3 rights and accept theresponsibilities outlined by the don3inantsociety and are they madvated to do so?

29

ADAPTING FOR

AGE DIFFERENCESHow do needs and interests vary at different ages? How do consumer activities

and responsibilities vary? How can we adapt content and techniques in consumer

education classes to meet the needs of different age groups? Let's consider the three

age groups most hlrely to take consumer education courses junior high or middle

school (6th, 7th, 8th and 9th grades), senior high school (10th, 11th and

I2th grades) and adults.

Students of all ages will be primarily interested in the consumer problems they

face on a day-to-day basis . . or expect to face in the near future. The following

chart provides a very general guide to the consumer experiences and characteristics

of students within the three groups. While there will be variations among different

students and classes, the chart is designed primarily to help you identify the consumer

characteristics of your students and to help you adapt content to meet their needs and

interests according to the various age levels.

students as consumersJUNIOR: HIGH SENIOR HIGHAND MIDDLE-SCHOOL

ADULTS

NCOME

30

Generally receive thelowest income of thethree groups, but spend-ing power is increadngrapidly. Depend pri-marily on parents for dis-cretionary income al-lowances, handouts orsome other system_

Generally receive higherincome than junior high.D e p end largely onparents but may supple-ment income with .7arn-ings from part-time jobs.Some may even help sup-port the family

Receive income relatedto earning power, as dic-tated by ability, ambi-tion, training, education,job opportunities andeconomic conditions.Other sources of incomeinclude dividends, inter-est, rent, welfare pay-ments, social security,pen.dons.

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LEARNING CHAZACTERISTICS OFSENIOR HIGH SCHOOLSTUDENTS

Begin to enjoy analyzing and solvingproblems together with evaluatingresults and making judgments.

Gradually becoming moresophisticated.

ADAPTING CONTENT AND TECHNIQUESTO MET THEIR NEEDS

Provide problem-solvingsituations. Present materials, con-cepts, cases for evaluation; use leading questions to stimu-late thought and discussion. Try questions such as: Whatdo you think? Why? How could it be better? What wentwrong? If you had a business, how would you treatcustomers?

_

Discuss current events related to consumer affairs. Usenewspapers, magazines and other md-life props; makesmart consumership a desirable goal; evaluate pendingconsumer legislation and action programs.

4

to show greater independence. Provide for individual assignments and projects and forindependent study and outside learning experiences.

Desire to participate in tealearning process. Offer students opportunities to help plan curriculum and

projects. Assign able students to "teach" certain conceptsindividually, in pairs or in small groups. Ask for suggestions

possibly through a suggestion box. Let students take partin evaluating materials, projects, activities and in leadingdiscussion sessions.

Begin to take greater interest in thefuture particularly immediatefuture be it a job, college, armedform or marriage.

Create an atmosphere to encourage exploring just whatconsumer problems students will face in the near future.Find ways to identify the problems and find solutionsthrough surveys of recent graduates, interviews with col-lege students or employers, talks by personnel managers,field tiips to schools or businesses, discussion of needs andfinancial problems common to recent graduates in differentsituations college, job, marriage, etc.

3333

ADAPTING FOR

DIFFERENCES INLEARNING ABILITIES

To what extent does ability of studentsdetermine which approach and what teachingtechniques to use in consumer educationclasses? In most instances, students in con-sumer education are not grouped according toability and test scores. You normally will geta combination of high-, average- and low-abil-ity students. However, your group may fallpredominantly into one level _more than anyother. In any event, you, as ththinstructor, areexpected to teach students of widely differingabilities whether they are in the same or inseparate classes. When adapting to meet theneeds of students with different learningabilities, it is recommended that teachers keepin mind the following:

Many variables enter into learning abilityincluding home environment, classroomatmosphere, psychological makeup of thestudent, self-image of the student, patterns ofsuccess and failure in the student's past andexpectations of the teacher. A student's learn-ing abffity may well be improved or impededby a change in the factors affecting learningability.

Learning ability varys among students indegree, not in kind. The low-ability learnercan learn and the high-ability learner canexperience learning difficulties. Each needschallenges suited to his capacity and reason-able standards set for his achievement poten-tial.

Basic life needs of low- and high-abilitylearners are similar, though not necessarilyidentical. Similarities are particularly out-standing with respect to social development,

citizenship, physical and mental health, voca-tional efficiency and consumer comPetence.

The general ability level of the individualstudent does not necessarily appiy in all areasof achievement. A low-level learner frequentlypossesses special talents in certain areas andthe high-level learner frequently has difficultyin certain areas. Each needs the chance todevelop his own special talents and to receivehelp in dealing with his weaknesses andlimitations.

Emotional needs of low- and high-abilitylearners are similar. Both require affection,recognition, a sense of belonging, a balancebetween success and failure as well as voca-tional satisfaction.

You may find it helpful to re-view the major variations betweenhigh- and low-ability learners. Thefollowing pages provide a very gen-eral outline of those differenceswith suggestions for adapting con-tent and teaching techniques tomeet the needs of students withdifferent abilities. Generalizationsrelating to the various char-acteristics have been synthesizedfrom references on page 86 and arepresented in tabular form for yourconvenience and use.

35

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WHEN STUDENTS SHOWTHE FOLLOWING

MENTALCHARACTERISTICS YOU CAll ADAPT TO MEET MEM NEEDS BY:Intellectually ahead of their peers Providing challenge through special assignments or more

difficult aspects of group assignments..

Abibtyto read well and.pleasure

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Ability to learn quickly and toretain information Presenting new materials and challenges at a steady pace

avoiding excessive repetition; involving the students innew challenges at the first signs of boredom.

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Ability to deal effectively withintellectual tasks abstractions,generalizations, comparisons,evaluation of information

Giving opportunities to analyze messages in advertising andproduct information; to evaluate material; to organize factsand put together a package of information or guidelines for aspecific situation, such as choosing an insurance or investmentprogram for a family with given characteristics.

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Curiosity, originality, initiative,independence, a sense of humor

Providing opportunities for independent study and projectspermitting originality in the use and interpretation of matmial

encouraging a follow-up on unanswered questions; forexample, a complete study on the ways one or more companieshandle consumer inquiries and pro olems.

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Participation in extracurricular activitiesand a wide variety of interests

Encouraging students to pursue outside interests which arerelated to material being covered in class and to enrichclassroom sessions with experiences outside the schoolproviding the proper atmosphere for relating outside interestsand activities to classroom learning.

r...,:-...z."4,:.0-.T:,....: -.. . ,1 %, ^ . t47,,,,,,P4.54.4amayin' ffrand,S4**.0= il- 'rtar :.,:.... :so O.,:

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ADAPTING FOR

DIFFERENT

ECONOMICCHARACTERISTICS

How do the economic characteristics of your students and their families

determine the approach and teaching techniques you will use in consumer

education classes? Whik many classes are made up of students ranging from

low to high on the economic scak, other schools may be located in

geographic areas which draw students with simikr economic characteristics.

Whether your students cr.! predominantly from low-income families, from

adequate-income families, or from both ends of the economit

you may find it helpful to consider differences in consumer behcwior

which are related to economic cheaucteristics.

40

ECONOMICALLY DISADVANTAGEDSTUDENTS

First, consider the terms as used in thissection. In speaking of economically disad-vantaged studentsusually from low-incomefamilies we are refening to those at thelower end of the socioeconomic scale whofrequently, but not always, suffer from thefollowing disadvantages:

poor reading and language skillsstudentstend to read and speak poorly because oflow stimulus, limited experience and lackof motivation at home, in the communityand often at schooL Language difficultiesencountered by non-Rnglish speaking stu-dents may cause them to be placed withslow learners.

low educational achievementthey may bepotential dropouts who may finish highschool when encouraged but have limitededucational opportunity for advancedschooling.

low, irregular or no incomefrequentlyparents are employed in low-level jobsbecause orpoztimities for training, edu-cation and employment may be rare ornonexistent in the community.

unfair treatment in the marketplacefrequently low-income consumers are vic-timized because of limited knowledge, ex-perience and recourse.

restricted in the number of economic choiceslow-income consumers must spend mostof their money on necessities leaving littlec? no opportunity for discretionary spand-ing. Also, transportation problems and lackof experience frequently result in low-income f2nolies shopping almost entirely intheii own neighborhoods.

re;

ECONOMICALLY ADVANTAGEDSTUDENTS

In speaking of the economically advantagedstudentusually from an adequate-incomefamilywe refer to those at the middle orupper end of the socioeconomic, scale whogenerally enjoy the following advantages:

adequate or above-average reading skills andlanguage abilitystudents tend to read and

speak well because of emphasis placed onthese skills in the home, community andschool.

average or above-average educationa! achieve-mentyoungsters generally finish high school

and go on to college or some other form ofadditional education and training.

average or above-average incomesusuallyparents are employed at regular and high-level jobs because of training, educationand social advantages as well as moreopportunities to develop and utilize talentand ability.

fair treatment in the marketplacealthoughthey may experience the frustrations com-mon to all consumers, the economicallyadvantaged are less frequently victims ofsystematic schemes to cheat them.

a wide range of economic choicesfamilieswith adequate incomes generally can makemany choices on the use of income that isnot required for necessities. Also, the stableeconomic situation of adequate-incomeconsumers provides many choices con-cerning the use of money.

41

DIFFERENCESIN

CONSUMERBEHAVIOR

Certain diterences in consumer behavior, attitudes and characteristics have beenisolated and defined in three basic areasshopping habits, choice-making andfinancial planning. While based on valid research (see bibliography on page 87),these differences are presented only for your information and consideration, andare in no way intendet; to be reliably descriptive in all circumstances.

It should also be noted that practices among the disadvantaged are lamely aresult of being disadvantaged and living constantly with an inadequate balancebetween resources and needs. The following materials are in no way intended toimply that the economically disadvantaged consumers are poor managers. On theconbury, given their external limitations, many poor consumers cope exceedinglywell and frequently manage more efficiently than their adequate-incomecounterparts could do under the same set of circumstances.

42

AREA THE ECONOMICALLYDISADVANTAGED

THE ECONOMICALLYADVANTAGED

ShoppingHabits

Frequently insecure, self-conscious,reluctant to ask questions whenshopping.Likely to buy repeatedly in the samestoreswhere atmosphere is friendlyand credit is readily available.Inclined to buy the first itempresented.Conscious of brand names butrarely have product features andprice clearly in mind before shopping.Usually confme shopping and otherconsumer activities to neighborhoodand surrounding area, because oftransportation difficulties and/orlack of confidence in a "differentarea."

Generally confident, secure andwilling to ask questions about productsand services when shopping.Tend to shop around from storeto store, particularly formajor purchases.Likely to compare similar itemsand brands.Often compare ads and product ratingsand shop with preconceived needs andpreferences in mind.

Tend to branch out into other geo-graphic areasmay shop in severalshopping centers, in downtown areaand local or neighborhood shops.

Choice-Making

Frequently make buying choiceson the basis of advertising andclaims of salespeople.

Tend to be impulsive, emotionaland non-rational in maldngdecisions.Enjoy little opportunity tochoose from a variety ofalternatives.

Lilrely to depend on personaljudgment and to evaluateproduck, ads, and salesperson'sclaims critically.Generally plan major decisionsand tend to make rationalchoices.Enjoy a wide range ofalternatives in the marketplaceand in financial planning.

FinancialPlanning

Usually more concerned with thepresent than with the future.

Usually awed by financialinstitutions.

Inexperienced and iiriAlcilled inthe use of financial tools of credit,savings, investments and insurance.

Inclined to plan ahead, particularlyfor major purcbases and fmancialsecurity.Usually familiar with fmancialinstitutions and frequently usefinancial services.Knowledgeable in obtainingfmancial advice and usingcredit, savings, investmentsand insurance.

Adapting for different economic characteristics among students primarily involves:a general awarenew; of major economic characteristics of students and families in yourclasses and in the communityparticularly with respect to such indicators as income

levels, educational levels, employment, spending patterns.

a knowledge of the types of consumer problems that are common among students and theirfaniilips

an emphasis on problem areas and on practical, realistic approaches to difficulties.The following section on common consumer problems offers a variety of learningexperiences suited to students from different economic backgrounds. You can choose thosemost appropriate for students in your classes based on your knowledge of their economicsituations.

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43

44

COMMON CONSUMER PROBLEMSAND LEARNING EXPERIENCES

Following we a few of the commonconsumer problem areas together withsuggested learning experiences somefor all students, others particularlysuited to the economically disadvantagedand others for the economicallyadvantaged. You, the teacher, willwant to decide for you rself whichproblem areas deserve the greatestemphasis with your swdents andwhich learning experiences are bestsuited to the individuals in your classand to the group as a whole, on thebasis of economic chwucteristics wadconsumer experiences of student&

44

PROBLEy AREA I:

earning money(Relates to Content Area: Occupation and Income, page 12)

SUGGESTED LEARNING EXPERIENCES*Arrange for individual intaviews and counseling on job

choices.

Research and discuss job opportunities and qualifica-tions with emphasis on types of employment and jobswhich are within the reach of the majority of studeins.

Conduct a survey of summer and part-time job oppor-tunities in your areainvestigate pay, hours, workingconditions, ways to get jobs, ehc.

Study employment ads from local newspapers. Ques-tions to discuss includa What do the ads show about thelocal job market? What do the twins and abbreviationsused in tbe ads mean? What do the ads tell about vatiousjobs and job qualifications?

*Arrange study trips to business firms and governmentoffices where students from the area would most likelyapply for jobs or training.

Work with distributive education to introduce studentsto different types of jobs and to arrange work exper-ience in connection with school.

Contact several employment agencies to find out theservices provided, the cost of services and the opeutbigpolicies of each agency. Follow up with research anddiscussion on the advantages and disadvantages ofseeldng employment through an agency together withcriteria for selecting a suitable employment agency.

*Obtain application forms for various types of jobs andfrom different companies. Analyze the forms to find outthe type of information required, qualifications for thedifferent jobs, policies of different companies in inter-viewing job applicants. When possible and appropriate,reproduce application forms to give students an oppor-tunity to become faimliar with them and to practicecompleting forms.

Compose suitable letters for applying for a specific jobor for =wring employment advertisements in thenewspapers.

Shnulate an employment office with some studentsacting as intwviewers and others as job applicants withstated quallficalions applying for given positions. Involvetbe entire class in the simulation by allowing time forquestions and discussion during and following eachsimulated interview.

*Schedule talks by recent graduates who are now em-ployed or assign individuals to interviewrecent graduateswho are employed and report to the class. Questions toexplore include: What type of work does the job cal/

for? What are the working conditions? How do you fitinto the work world? Were there problems in adjustingto and performing the job? Whatare the advantages anddisadvantages of the job?Discuss and illustrate appropriate dress, grooming andmanner for various types of jobs.

Set up role playing situations to act out 1) applying forajob, 2) first day on the job, 3) correction of an employeeby a supervisor, 4) calling in to report absence or illness,5) answering the telephone on tbe job, etc.

*Provide individual counseling, guidance and referral ofstudents with exceptional abilities, interests and deter-mination.

*Study and compare job opportunities for 1) high schoolgraduates vs dropouts, 2) high school graduates withspecial skills or training vs high school padnates withouttraining or skills, 3) high school graduates vs collegegraduates, 4) college graduatesvs college dropouts.

*Plan a cum day or panel discussion of jobs andprofessions bo which studeds would mixt Platy beattracted. Cali in people in key professions to crams jobqualifications and opportunities.

Discuss factors which influence choice of colleges,specialized training, professions,etc.

*Study and compare job opportunities, income, worldngconditions and job security 1) in different fields, 2) forhigh school graduates vs college graduates, 3) for collegegraduates vs those with additional trainhig or advanceddegrees.

*Divide the dais into several groups, each to study andreport on a specific job or career area such as enti-nearing, teaching, meth 'one, finance, business, etc. Usethe following as guidelines for research:

What are the advartages and disadvantages of cateringthe field?

What types of jobs and opportunities are available ineach area?

What types of job satisfaction can be expected?

What personal qualificationsare desirable to enter thefield?

What is the future outlook for the profesdon oroccupation?

How much training, education, and experience isrequired to be effective in this field?

4545

PROBLEM AREA II:

managing resources(Relates to Content Area: Management of Resources, page 12)

SUGGESTED LEARNING EXPERIENCES

Set up choice-making situations. For instance, askstudents to write down five things they would like to doif thsi had $20.00 to use any way they choose. Thenask Mom to go through the list and arrange items in theirorder of importance. Or, let each student decide how hewould use $50.00 and then defend his decision withvalid reasons.

.. Present a problem to the group to solvechoosingbetween two desirable or necessary expenditures whenonly one is possible. Follow up with discussion andquestions until the steps in maldng such a choice can becleariy outlined.

Conduct a class or school survey to find out how muchstudents have to spend, how they spend, if and how theyplan spending or use any management skills. Follow upwith discussion of spending patterns and managementtechniques.

Ask students either verbally or on paper to set upgeneral priorities for spending for families and indi-viduals. Suggest that each individually list his ownpriorities in their order of importance.

Ask students to make up a bulletin board or plan adiscussion of common management iii.ntakes, such asfailure to plan, impulse buying or overextension, whichare particularly costly. Use role playing to act outsituations which might lead to these vAstakes. Follow upwith a list of pointers for avokling u.:istly spendingerrors.

Conduct a survey or check statistics on personal con-sumption expenditures to determine which items takethe largest share of individual and family incomes.

Follow up with a study of possible ways to spend lessfor these items. Include possible savings through use ofpublic facilities such as clinics, medical schools, housing,etc.

Explore some feelings about money using the followingquestions:

How might lack of money affect a person's attitudetoward life?

How would it make you feel to have plenty ofmoney?

What are some factors that influence the ways peoplespend money?

Draw up a list of typical personal expenditures on achalk board and divide them into "fixed" and"flemlile.." Then ask each student to make up a weeklyspending plan based on his own income and expenses.Disc= ways to balfaice spending when income doesn'tcovei: expenses.

Draw up imaginary profiles of four or five individuals orfamilies with different fmancial situationsbachelorliving alone, two girls sharing an apartment, newlymarried couple, young couple with two or threechildren, retiring couple, etc. Divide the class into familysize groups and have each group work out a spendingplan for one of the individual or family situations.

Discuss 1) the value of long-range goals and fmancialplanning, 2) financial problems which might occur w aresult of not planning, 3) common mistakes in managingincome, 4) disadvantages of having plenty of money.

46

PROBLEM AREA III:

spending money(Relates to Content Areas: Economic Choices, page 13; Adv.Irtising, Selling Aids and Motivators,page 14; Buying Goods and Services, page 14 )

SUGGESTED LEARNING EXPERIENCES

Ask each student to describe the last article of clothinghe bought and tell 1) why he bought it, 2) when hebought it, 3) whether he still likes it, 4) whether hewould buy it again, 5) what influenced his choice.

Suggest that students bring in printed advertisements fordifferent products. Choose several ads the group con-siders particularly good and several considered poor.Analyze these ads to determine 1) information provided,2) selling techniques, 3) emotional appeals, 4) factualclaims, and 5) general tastefulness. Rewrite the poorestads.

Discuss 1) factors that influence people to buy oneproduct rather than another, 2) why someone mightdeliberately buy something he knows he can't pay for,3) why some people buy things they do not need orreally want.

Divide the group into several sections and ask eachsection to put together a list of buying pointers forspecific types of productstextiles and clothing, appli-ances, sporting goods, musical instruments, furniture,cosmetics, used cars, etc. Follow up with discussion.

*Conduct a survey of places to shop in the local area andcompare prices, merchandise, services and reputation ofstores.

F nage students to describe problems vech buyingor services, based on personal or family exper-

iences. Act out some of the problems and try to discoverways of avoiding similar difficulties and ways ofhandling problems that cannot be avoided.

Arrange field trip; to shopping centers and large super-markets to introduce students to retail outlets not intheir own areas. If possilile tise public transportation sostudents will learn how to get to areas out of theirimnediate neighborhoods, and then figure out dollarsavings, oust of transportation, differences in quality andselection of merchandise, etc.

Discuss 1) techniques and telltale signs of imfair, dis-reputable sellers and selling schemes, 2) consequences ofbeiag taken in by such schemes, 3) ways to identify fairand honest r-ailers.

'Involve students in comparison shopping for items theywould be likely to buy for themselvespreferablysomething other than a routine purchaseradio, recordplayer, bike, guitar, clothes, etc. Have students reportfindings on brands available, features, prices, guarantees,store services and policies, etc. Write up buying guideson the basis of findings.

Set up a fact finding committee to check policies ofneighborhood stores on returns and exchanges, creditfor teens, sale merchandise, guarantees and warranties,handling consumer inquiries and complaints.

For extra credit let students draw up pointers on buyingspecific products.

'Have each Student compose a letter, based on personalexperiences or fact, to a manufacturer or store managerto ask for information, to complain about a product orservice, to compliment on a product or service, to makea suggestion.

Set up a viewing panel te watch TV ads for one weekendor for several nights running and to analyze commercialsas to types of appeal, information provided, andaudience and age at which different commercials areaimed. Discuss notations and observations in class andwhere desirable write manufacturers and companies tocomment on advertisements.

Use a case study of a family without a car and let theclass come up with ways of shopping without going toneighborhood stores which may be expensive comparedto large stores in shopping centers. Evaluate eachsuggestion of ways to shop out of the neighborhood interms of 1) transportation costs, 2) merchandise selec-tion and quality, 3) dollar price differences, 4) difficultyin getting to shopping areas away from home. Determinewhen it would and when it would not pay to make theeffort..

Define and contrast a planned purche.se with an impulsebuy. Use examples from experiences of students toMustrate when and under what circumstances an impulsepurchase is most likely to be a good buy and under whatcircumstances planning is most important

471' 47

PROBLEM AREA IV:

using credit(Relates to Content Area: Consumer Credit, page 15)

SUGGESTED LEARNING EXPERIENCESDiscuss 1) the meaning of consumer credit, 2) the placeof credit in the economy, 3) reasons for using credit, 4)types of consumer credit, 5) advantages and disad-vantages of using credit , 6) alternatives to using credit

Obtain and fill out sample, application forms for credit.Follow up with a discussion of 1) questions on the form,2) establigning a sound credit rating, 3) the value of asound credit rating.

Obtain and study several sample credit contracts andmonthly statements. Follow up with discussion of 1)words and terms used on the contracts and statunents,2) legal rights and obligations of creditors and debtors,3) consequences of fskiting to meet obligations, 4)disclosure rc.quirements of the Truth in Lending Act.

Study and discuss costs of using credit.

Go to the local credit bureau to find out how itoperates, type of information recorded, and ways tochallenge and change an inaccurate record.

Discuss 1) problems low-ineome families face in ob-taining credit from legitimate sources, 2) new experi-mental programs in making credit available to low-income consumers.

Explore ways credit could help stretch income.

Examine differences between reputable and disreputablecreditors and draw up a list of things to fook for whenshopping for credit.

Use examples to show the difference between the cashand credit price of a $250 TV in two or three stores; thedifference in finance charges for a 12 month contract,18 month contract and 24 month contract. Disc=other factors that influence consumer choicereputationof the store, provision for service, guarantees, which maybe more important than finance charges in the long run.

Disct.:s and make up a list of places to call to reportdishonest credit practices, to get adv5ce and help withcredit problems and to check out a creditor's reputationbefore signing a contract.

-Discuss local, state and federal government laws andregulations which protect consumers in their use ofcreditwhat are the provisions of the laws; how do theyprotect consumers; how are they enforced, how do youreport violations?

Explain and discuss legal action open to creditors whendebtors fail to carry out terms of credit contracts.

Interview an adjuster in a debt adjustment agency, acredit counselor and/or the manager of a financecompany that makes debt consolidation loans to findout:

1. ways debt adjustment or consolidatioi. can bearranged

2. fees for services and extra costs in fmance charges3. advantages and disadvantages of pooling debts4. alternatives to debt pooling5. circumstances under which debt adjustment Would

and would not be advisable6. services and fees of credit counselors7. criteria for selecting reputable debt adjusters and

credit counselors.

Find case studies to show situations in which a debtorremains liable for payment of a credit contract eventhough goods or services have not been received or arenot satisfactory. Discuss reasons for this situation(holder in due course clause) and legal remedies beingconsidered.

Find case studies to Mustrate consequences of failing tomake payments on a credit contract. Ote examples toshow when the consequences are justified and when theyare unfair.

Send for a copy of the Fair Credit Reporting Act or asummary of this law and discnss the ways it protectsconsumers. Work up two or three situations for roleplaying which show how consumers might use the FairCredit Reporting Act.

Discuss the advantages, disadvantages and alternatives tousing credit for different purposes such as education,furniture, vacation, medical Ms, clothes, etc.

Investigate and discuss chamteristits of different typesand sources of credit.

Invite credit representatives such as bankers, managersof credit departments in retail stores, managers offirance companies, credit union officers, manager of thecredit bureau, to talk to the group or interview them andtape the interview to play back and discuss in clam

Find examples and arb:eles in newspapers and magazineson uses and abuses of credit cards.

*Discuss pros and cons of having many charge accountsand creclit cards. Develop a system for keeping a recordof all of them.

Divide the class and debate the following statements:

1. Teenagers should have their own credit aca.unts.2. Credit should only be used for emergenci es and

absolute necessities.3. Bankruptcy is the best solution for over-

indebtedness.4. Credit tempts people to overspend.

Review recent and pending legislation related to the useof credit and discuss raos and cons from the point ofview of 11 the consumer, 2) the creditor, 3) the fmancialcounselor; 4) the legislator, 5) the economy.

48

PROBLEM AREA V:

dealing with financial problems and crises(Reestes to Content Areas: Management of Resources, page 12; ConsumerGrievances, Page 17;Consumer Protection, page 18 )

SUGGESTED LEARNING EXPERIENCES

Define and give examples of fmancial problems andcrises. Follow up with a discussion of 1) how arld whyfinancial problems and crises differ among differentindividuals and families, 2) how financial crises relate tosize of income, 3) how fmancial difficulties change atdifferent stages of the life cycle.

Find case studies which illustrate family financial crisesin real life, in fiction or in magazines and newspapers.Discuss 1) which of the crises could have been avoidedand how, 2) ways to deal with each crisis descrilied, 3)the similarities and differences among the crises cited.

List a variety of financial crises and classify them asavoidable and unavoidable.

Discuss fmancial practices which are likely to bringabout financial crises or disasters.

Bring out and discuss financial crises amongstudentsexplore causes and possible solutions.

List social and government agencies which exist to helpindividuals and families deal with financial crises.

Indicate under what circumstances each of the followingsituations would be a financial crisis and explore ways todeal with each situation, including places to go for help:

1. You sign up to go to a modeling school and thendiscover that you have promised, by signing, topay $25 per month for three yearsa total of$900-

2. You have no money and not enough food for thefamily and pay day is three days away.

3. You are 12-years-old and you do not have enoughmoney to dress fte the other kids at school

4: You bought a TV on time and can't makepayments and the seller is threatening to reposers.

5. You want to work, you really need money andyou can't find a job.

6. You are very sick, do not know what is the matterwith you, do not have money to pay a doctor totake care of you and do not know where to find adoctor.

Visit small claim.s court and evaluate cases presented.

Draw up a list of financial crises which would be typicalfor the students and their families and discuss the causesof the crises, possible solutions and ways to avoid similarproblems in the future.

Draw up a list of people and places which could behelpful in dealing with financial crises of various types.

., Ask students to indicate which of the followingsituations they would consider a financial crisis and totell how they would deal with each situation:

1. You have an accident with a friend's carno one ishurt but damages on the car come to $850 and itis not covered by insurance.

2. Most of your friends are going to collegeyouwant to go too, but your parents cannot afford tosend you.

3. Your father is notified by his employer that he isto be dismissed at the end of themonth.

4. You bought a car on time last sun.--ter when youwere working. Now you are in school and cannotearn enough money to keep up the payments.

5. You open a charge account your first year incollege and before you know it, you run up a billof $575 which/you cannot pay.

Use students' descriptions of five or six situations thatwould be typical of financial crises for themselves andtheir families. DiSCIISS causes of these crises, possibleways to deal with them and ways to avoid similarproblems in the future.

49

PROBLEM AREA VI:

providing financial security(Relates to Content Areas; Insurance Protection. page 16; Savings and Investments, page 16)

SUGGESTED LEARNING EXPERIENCES

Derme financial security. Follow up with discussions of1) factors that contribute to fmancial security, 2) factorsthat threaten it, 3) how can you plan for it, 4) howmight you lose it, 5) how important is it?

Have a discussion or debate after students select four orfive phrases to complete this sentence: "Financialsecurity is

1. having enough to eat2. owning a home3. having money in yotrr pocket4. owning nice clothes to wear5. money in the bank6. having a steady job7. owning a car8. possessing job skills9. having a college degree

10. keeping bills paid11. a savings fund for emergencies12. possessing a high school diploma13. owning stocks and bonds14. having plenty of insurance15. knowing there is enough money to buy things

you want16. Other

Discuss how methods of providing financial securitymight differ for 1) singles and married couples, 2) menand women, 3) faniilies with children and those withoutchildren, 4) young, middle age and older people.

With students, investigate, describe and explain govern-ment programs which contrilmte to financial security ofindividuals and families. Discuss pros, cons, advantages,disadvantages and effectiveness of these programs.

Discuss the possible effect of the following on personalor family financial securityillness, accident, inheri-

tance, svandal, death, winning a valuable prize, flood orfire, unemployment.

Explore attitudes on financial security and discover howit is related to education, training, job welfareprograms, health, savings, insurance, management.

Investigate and discuss forms of financial securityfrequently provided by employers, government andcommunity agencies.

Outline steps individuals and families can take to providesome degree of fmancial security.

Discuse relative degrees of security cf welfare recipientsvs non-welfare working poor.

Explore attitudes and interests related to financialsecurity. What do students know about it? What do theywant to know?

Invite representatives from banks, savings and loanassociations, insurance companies, mutual funds andinvestment companies to talk to the group on variousaspects of saving, insuring and investing.

Discuss fmancial security as it relates to job security,inheritance, success, other sources of income.

Outline factors to consider in long-range plans forfinancial security.

Discuss problems that could result from too much or toolittle emphasis on financial security.

Discuss relative importance of finanettl security andforms of fmancial security for different stages in the lifecycle.

5050

PROBLEM AREA VII:

obtaining information and advice(Relates to Content Areas: Consumer Information, page 13; ConsumerGrievances, page 17;Consumer Protection, page 18 )

SUGGESTED LEARNING EXPERIENCES

*Work up a list of sources of consumer information andset up an information center with sample materials fromeach source.

*Discuss the people, places and publications whichcommonly provide consumer information advice andaid. From the discussion, make up a "Directory ofConsumer Aid and Information."

"Categorize types and sources of consumer informationand advice for different consumer problemshousing,credit, buyinanship, insurance, legal matters, etc.

Review books and publications in the school or publiclibrary and make an inventory of those dealing withvarious aspects of consumer information. Cooperatewith the lama*, to make a special display of those whichseem to be most helpful.

Set up a step-by-step procedure for obtaining advice andinformation from various sources, such as the BetterBusinera Bureau, the credit bureau, manufacturers, storemanages, government agencies.

Use role playing to dramatize finding and obtainingadvice on specific matters of consumer interestperson or by telephone.

Draw up a "Where to Call Guide" for the local areaincluding people and places to call for aid and advice ondifferent matters.

Discuss when, where and how to seek advice and aid ondifferent matters. What type ofassistance can consumersexpect from case workers, Office of Economic Opportu-nity, Legal Aid Society, etc.

Pose problems which would require advice and askstudents to fmd out whom to call or see for help witheach problem. For example:

You buy a sewing machine from a door-to-door sellerand it does not work. 1) What can you do? 2) Whoshould you call? 3) What is yomr legal recourse if theseller is at fault? 4) Could you cancel the contract ifthe machine did work? 5) Under what circumstancescould you cancel?

You paid, but did not get credit for, the monthlyinstallment on a car. Now the dealer is threatening torepossess the car. 1) What can you do? 2) Who doyou call? 3) If the car is repossessed must you stillPay?

You bought a set of living room furniture but whendelivery was made it was not the same as thefurniture you had ordered. 1) What can you do? 2)Who can you call?

Investigate laws that protect consumers together withthe sources of low- or no-cost aids such as legal aidsociaies

'Investigate, report on and discuss government andprivate agencies that counsel people on consumer mat-tes.

*Review newspapers and magazines to find situations thatcall for advice of various personal and family advis-erslawyers, stockbrokers, insurance men, accountants,budget counselors.

Set up criteria for selecting and working with reliableadvisers on taxes, insurance, investments, legal matters,savings, estate planning.

Compose sample letters to use as guides when reportingproblems or making inquiries from business, privateorganizations and government agencies.

List the places or people that could be helpful or providehelpful information for the following situations:

Mrs. Johnson has five children ages 2,4,5,8 and 10.Her husband disappeared several weeks ago and shehas no income.

Tommy Pringle is five-years-old and has a defectivekidney. He needs a kidney operation but his familycannot pay for it.

Martha Brooks is a 62-year-old widow with little orno regular income. She is entitled to Social Securitybenefits but doesn't know how to claim them.

BM Barnam has three estimates on putting a newfurnace in his home, but he questions the reputationof the company that gave him the lowest bid_ Hewants to check on the oompany before signing anycontract.

Barbara Pans is a senior in school with excellentscholastic records. She wants to go to college but herfamily can't afford to send her and she doesn't knowwhere to fmd out about scholarships.

51

PROBLEM AREA VIII :

understanding the economy(Relates to Content Areas: The Consumer and the Economy, page 11;Consumer Rights and Responsibilities, page 18 )

SUGGESTED LEARNING EXPERIENCES

Outline and discuss the role of the consumer in oureconomy. 1) How can he influence the economic policiesand practices of business and government? 2) How is heaffected by economic decisions in business andgovernment? 3) Cite specific examples of waysconsumers have made themselves heard by business andgovernment and how individuals can make their votescount in our economic system.

Explore and discum the importance of private property,competition, profits and prices in our economic system.How do they affect inctividuals, business aad govern-ment?

List and dirviss the rights and responsibilities of theconsumer in the economy. Give specific examples ofeach right and responsibility.

Point out and discuss the various economic choices andalternatives open to the consumer and effects ofconsumer decisions in the marketplace.

List and discuss rights and responsibilities of businets inthe economy. Give examples to illustrate specificbuskuss rights and responsibilities.

List basic consumer rights and responsibilities and citeconcrete examples of each.

Cite specific consumer responsibilities and follow upwith a discussion of consequences of not acceptingthem.

Check out courses of action open to consumers whenthey have been denied their rights in the markerptaceagain using concrete examples.

Outline consumer rights and legal recourse related todeceptive business practices which may occur in thelocal area.

Discuss and set up role playing situations to illustrateways consumers can exercise their rights and accept theirresponsibilities.

Ask students to bring in newspaper and magazinemerles on economic policies and business which wouldaffect consumers. Follow up with cliscussions.

Divide the class into three sections, representingconsumers, business and government. Have each grouppresent its viewpoint on specific economic issues.

Describe the rights and responallities of business asthey relate to:

product safetyproduct quality and perfolmance

warranties and guarantees

servicing of products

competition

prices

environment

Describe the rights and responsibilities of consumers asthey relate to the same topics. 1) When do the rights ofbusiness and consumers conflict or appear to conflict?Ote examples. 2) How can conflicts be resolved? Giveexample&

Divide the group into four sections, each to explore theuses and abuses of one of the following productiveresources:

land and natural resources such as minerals, timber,water, climate, and other products of nature.

capital resources including the goods, equipment,factories etc., used in production.labor or human resources includeg the physical andmental efforts of those involved in producing goodsand services.

risk capital from the entrepreneurs who bring otherresources together and finance and organize them forproduction.

Make up an action kit for consumes showing where an dhow to contact business and government officials onconsumer matters. Include names, titles and addresses ofthose to contact together with sample lettets andpossilge issues to cover.

Discuss how government polkles on :vending and taxingcan affect individuals and businesses.

Assii a students to make a bulletin board or display andto plan a panel Tiscussion or other type of presentation

52

52

on "A Current Economic Happening" taken from actualeconomic events or issues which affect coimimers.

Brainstorm to come up with ways to curb abuses anddeceptive practices that occur most frequently inlow-income areas.

Consider the following topics for independent resaarchto be shared with the class:

Converting to the Metric SystemWhat Would ItMean to Consumers?

InfiationIts Effect on Individuals and the Economy

Free ChoiceWhat Does It Mean?

The Consumer in the Economy

The Meaning of Free Enterprise

Consumer Sovereignty

Forces That Restrict Free Ctoice

Consumer brisconduct

Business Misconduct

OTHER LEARNING EXPERIENCES AND MOTIVATORS

VIP Identification. Involve students in making a list oflocal, regional and national "very important people" inthe consumer field. These can include private, businessand government figures who have made outstandingcontributions to the consumer movement or who holdpositions of rmponsibility related to consumer interests.Ask students inclividually or as a group to identify eachVIP and describe what action or position makes him orher important to consumers.

Where to Call Guide. Pose typical consumer problemsand inquiries and have the students rmd out the peopleand agencies to tall for aid and information for eachproblem. Then make up a "Where to Call Guide" for thecommunity, induding instructions on where and how toinquire and complain.

Current Events Committee. Assign groups or teams ofstudents to watch for current events affecting consumersand bring newspaper and mapzine articles coveringthese events to clam Follow up with discussion andbulletin board displays.

Statistics Interpretation. Make transparencies foroverhead projectice from statistical figures commonlyused to expreis economic conditions and data. Disc.=the meaning and significance of the various figures; bowone statistical fact relees to another; how one year'sfigures relate to previc years; how income figuresrebte to cost of living figures, etc.

Quotable Quotes. Involve students in collectingquotations related to money and consumer interests.Discuss them pco and conwhat the author meant, howthe quotation applies to real-life situations, how quotesmade in past eras apply today, etc.

Cartoon Corner. Once you and your students can lrtogeher you have opened the door to more smious

discussions and communications. Cartoons can helpachieve this goal. Use them to introduce new units, toopen the way for discussions, to make important points.Students can mount cartoons on bulletin brer..ds or maketransparencies to um with the overhead projector.

Product Tracer. Select a specific product and trace itfrom first stages of production to the consumer. List anddiscuss the various processes it goes through and theservices involved in getting the product to the consumer.Where possible, estimate costs involved each step of theway.

Case Studies. Study and analyze realistic cases ofconsumer activities and problems which would betypical for your students and their families. Follow upwith cliscussion questions and outside activities whichwould lead to a practical approach to proolemspresented in each case study. Students can make upcases or find them in magazines and newspapers.

Independent Study Projects. Let each student develophis own independent project geared to his personalinterests, needs and abilities. This technique is excellentfor adapting to individual differences among students.Guide learners into selecting projects which at somepoint can be shared withand which in some way willbenefitthe entire class if possible.

Simulation Games. Play games which involve consumerskills and decisions such as CONSUMER or GHETTO orECONOMIC SYSTEM. (Available from WesternPublishing Co., Inc., School and Library Dept., 150Parish Dr., Wayne, N. J., 07470.) Try games studentsmake up themselves as well. Making up games with"learning" content could well be an independent orsmall group project for students who are capable of thechallenge.

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This section is designed to help you identify,motivate and evaluate your students in var-ious aspects of consumer education. Identi-fying basic characteristics of students is thefirst step toward adapting and directing con-tent to meet student need& The first ques-tionnaire is intended to show how well youknow your student& The remaining devicescan be used to identify saident character-istics, weaknesses and strengths; to motivatean interest in consumer education; to evaluateprogress in consumer related skills and under-standing& The section includes:

How Well Do You Know Your Students? ateacher questionnaire to help instructors eval-uate their knowledge of students and tosuggest ways of learning more about them.

My Consumer Profiie a survey to use inobtaining a profile of the cultural back-grounds, experiences, interests, attitudes andconsumer behavior of students.

What Do Ycii Think? an opinionnaire toreveal student attitudes and opinions onconsumer issues and problems.

What Do You Know? a questionnaire toshow student understanding in various con-tent areas in consumer education.

What Do You DO? a questionnaire to showconsumer behavior of students.

Words to Know suggestions for developinga consumer vocabulary and increasing studentfamiliarity with consumer terms and con-cepts.

While devices that tell you more about yourstudo.nts are helpful and to some extentnecessary in planning a relevant consumereducation program, you will need to considerthe possibility of students and their familiesinterpreting questionnaires and inquiries as aninvasion of privacy. Before using any of thesedevices it is recommended that you:

review the material carefully and revise ordelete questions, statements and term-inoloor which might be offensive to thegroup or to individual students within thegroup.

emphasize that the intent of the material isto obtain helpful information to guideplanning rather than serve as an inquiryinto personal lives.

ask students to omit their names on ques-tionnaires and surveys that cover personalspending habits and behavior to preserveanonymity.

permit siaidents to abstain from completingany ques tic ,aaire, survey cr specific ques-tions that they fmd objectionable.make it cle= that no grades will be basedon questionnaires and surveys.

Depending on where you teach, it may also beadvisable to consult your principal beforeusing any detailed surveys in your classes.. Inmany areas, school policy or communityattitudes will determiae the degree to whichyou can make use of questionnaires whichcover economic characteristics and behaviorpattterns of students and their families.

55

teacher questionnaireThe following questionnaire, to be self-administered, offers an opportunity for youto take an objective look at your own efforts

in getting to know your students and theirneeds. Some of the questions may give youideas for learning more about those you teach.

YES NO

HOW WELL DO YOU KNOW YOUR STUDENTS?

For each "Yes" answer compleas the question:

1. Do you know what magazines, books and papers your students read regularly?Name three:

2. Do you know what recent movies are most popular with your students? Namethree:

3. Do you know the TV programs students watch regularly? Name three:

4. Do you know what records and musical groups students like? Name three:

5. Do you know which adult or teenage idols appeal most to your students? Namethem:

6. Do you know several places where students spend time out of school?Name them:

7. Do you ever read the magazines and books or see movies and TV programs thatappeal to your students? Name any that you read or have seen within the lastsix months:

56

YES NO

,101111,

I id

8. Do you know how your students spend their money? Name six typical expenses:

9. Do you know where students get their money? Name sources of income:

10. Do you know approximately how muchmoney students have to spend? Estimatethe average amount for boys and for the girls

11. Do you know where your students shop and buy? Name four places:

12. Do you know what types of responsibilities students have in their homes andin the community? Name five:

13. Do you know something of the socioeconomic structure of the =immunitywhere you teachincluding types of employment, sources of income, size ofincorneS, working mothers, types of homes, educational levels, communityactivities, family life? Give a brief description:

14. Do you know what types of consumer problems commonly exist in studeritefamilies? Describe them briefly:

57

YES NO

15. Do you know what types of consumer problems exist among students them-selves? Describe them briefly:

16. Do you know where to find students' school records? Name types of recordsavailable and dates you last used them:

17. Do you ever contact a counselor, homeroom teacher or parent to help youunderstand an individual student or to solve a student problem? Name contactsduring the last school year:

18. Do you create an atmosphere that encourages students to express themselves?Explain how, briefly:

19. Do you really listen when students talkboth in and out of class? Name severalthings you have learned through listening:

58 58.

YES NO

20. Do you know which students their peers look to as leaders and models in yourclasses and in the school? Name them:

21. Do you observe student behavior in and out of class in order to reach a betterunderstanding of the students you teach? Name several things you havelearned through observation:

22. Do you take an interest in school activities outside of your department? Namethe last function you attended or activity that you followed:

23. Do you read articles and books and watch programs that explore the attitudesand behavior of young people today? Name recent items you read on this topic:

24. Do you ever take a survey, give a pretest, conduct an opinion poll, set up aquestion and suggestion box or use some other specffic method to find outhow students feel and think about important issues? Name the devices you usedduring the lest term:

25. Do you occasionally make yourself available to students and parents on aninform& basis? Describe how and when you are available:

59 59

student survey

The following survey includes a variety of

questions for you to use as a basis for developing

your own survey according to the cultural and

socioeconomic makeup of your students and the

community in. which you teach. Some questions

may not be appropriate and others will need to be

reworded to supply meaningful information about

your group. Select questions that ask for the type

of information you will find most helpful in

structuring your own consu;ner education unit.

It may also be desirable tc add specific questions

on such topics as credit, inbz.rance, tazcs,

investments and family money management,

particularly for older students or adults.

69

MY CONSUMER PROFILE

1

DIRECTIONS:Do not sign your name. This survey is designed to provide a profile of the group as a

whole and to help us tailor this class to your needs and interests. It is not an inquiry into

ineividual spending habits or finances. Please complete statements that apply to you by

filling in the blank spaces or checking the word or phrase that mostappropriately answers

the question.

1. l am male_ female

2. I am years old and in the ____th grade

3. I live in a ____ house _____ apartment mobile home

4. Paid jobs of people in my family are-

5. This term I am taking the following subjects'

6. My major area of study is.

7. 1 ____ do do not plan to graduate from high school

8. After graduation or leaving school I plan to:

go to a vocational school and learn

join the armed forces

go to college

get a job as a

get married

other (explain)

9. The amount of money I have to spend each week is approximately:

250 to $3 $3 to $6 $6 to $12 $12 to $24 over $24

10. I get most of my money from- a job a regular allowance

asking my parents gifts other (explain)

61

11. Things I regularly use my own money for include:

clothes school supplies sporting clothes or equipment

cesmetics snacks savings

carfare lunches gifts

books movies car expenses

magazines dating grooming supplies or services

records contributions family needs

other (explain)

12. My regular responsibilities at home are to help:

buy food take care of younger children

prepare meals take care of older family members

iron clothes wash clothes

shop for the family take care of the yard

clean my room take care of the car

clean house take care of pets

other (explain)

13. Five things that influence me most are:

parents and family friends teachers

memberscounselors leaders in school church and religious leaders

people in the news, magazines books

sports, movies,politics, etc. movies TV

newspapers other (explain)

14. Five things I would like to learn most in consumer education aro:

how to get more satisfactionfor my moneyhow to decide what to buy

how to judge the quality of goodsand sorviceswhat to buy and what not to buy

how to use banks

how to save money

how to avoid being cheated

where to shop

how to use credit

how the economy works andhow it affects me

how to complain when goods orservices are not satisfactoryother (specify)

15. Magazines and newspapers I read include:

16. My favorite movies are:

17. My favorite TV programs are-

18. My favorite musical records and tapes are:

19. Places my family and/or I buy goods and services from most frequently include:

department stores catalog order stores

restaurants

drug stores

door-to-door sellers supermarkets

other (specify)

20. Places my family and/or I save or borrow money include:

bank savings & loan credit unionassociation

small loan company insurance company

other (specl:y)

21. Personal services my family and/or I buy include those of:

doctor nurse dentist

eye doctor chiropractor lawyer

insurance man stockbroker barber

beautician other (specify)

22. Community services my family and/or I regularly use include:

library Parkdental or health clinic

museum nursery school YWCA or YMCA

zoo day care center employment service

_ buses or subway playground family counseling service

athletic facilities adult or evening school

23. Items my family and/or I bought from a door-to-door salesman include:

magazines encyclopedia sewing machine

vacuum cleaner photographs musical instrumentsand lessons

furniture or insurance home repairs

carpetingfurnace or furnace cosmetics and cookware

parts grooming supplies

other (specify)

24. The way I feel about most of my purchases is:

dissatisfied

foolish

satisfied sorry wise

cheated happy disappointed

64_

25. Small appliances or equipment my family owns and uses include:

electric fan radio record player

sewing machine vacuum cleaner floor scrubber

steam iron blender food mixer

Waster electric fry pan humidifier

air conditioner

other (specify)

26. Major appliances my family owns include:

range disposer refrigerator

clothes vi ashar dishwasher clothes dryer

freezer other (specify)

27. Home entertainment equipment my family owns includes:

color TV black and white TV record player

tape recorder radio

other (specify)

28. Equipment I personally own includes:

radio TV tape recorder

record player typewriter hair dryer

electric hair curlers musical instruments sewing machine

electric toothbrush other (specify)

65 65

29. Phrases that describe me include:

I get a regular allowance

I earn money at home

I never have enoigh money

I have a savings account

I use my parents chargeaccountsI have no money to spend

I choose most of my ownclothes

30. My family

discusses money matterstogetherbuys expensive items ontime payment Or installmentplans

plans for expenses

always seems short of money

often cannot afford whatwe needfrequently has financialproblemswants me to go to college

has a lawyer

I have a regular job

I usually get money when I ask for it

I have about as much money as myfriendsI have a checking account

I have my own charge account(s)

I can buy most of the things I want

I have more money than I really need

uses store charge accounts

uses food stamps

borrows money

does not plan spending

usually can buy what we really need

has a regular income

saves regularly

spends carefully

agrees about money

66_ 66

opinionnaires

Opinionnaires reveal students' attibaes on variousaspects of consumer education. An awareness ofattitudes and strong feelings on the part of yourstudents can guide you in curriculum planning andin deciding what areas require the greatest concen-tration in your consumer education program. Forexample, if the opinionnaire indiccea that a largenumber of students feel that consumers have noreal choice in the marketplace, you may we'd toexplore the meaning of consumer choice, discussthe advantages and limitations of free choice in oureconomy and comp= choice in our economicsystem with choice in other system& If theopinionnaire indicates that many students feelpowerless in their role of consumer, you mightwant to investigate types of cunsumer action, maysof handling consumer probkrs methods of com-municating with business and legislators and gov-ernment agencies concerned with consumer well-being.

For another use of the opinionnaire, divide theclass into several groups of four or five studentsand give each group one of the content areas fromthe following opinionnuire. Instruct them to dis-cuss each statement, revising or changing it asnecessary until the entire group can either agree ordisagree unaiimoudy with the statement Changesand revisions made to rtach the unanimousdecisions can be opened up to the entire class fordiscussion.*

The following opinionnaire, "What Do YouThink?," has been subdivided into the variouscontent areas discussed earlier in this resourcemanual. It can be used in its entirety or can beseparated into one or more sections as an intro-duction to various subject matter area& To utilizethe opinionnaire most effectively, you may wantto reword some statements, delete others, add afew of your own and include ideas from students.Keep in mind that there are no right or wronganswer& The opinionnaire is designed only toprovide insight into the attitudes and biases ofstudents with regard to consumer matters.

*This idea for using opinionnaires was suggested by Mrs.Lucille E. Stiles, Home Economics Department Chairman,Maine Township }Ugh School West, Dos Plaines,111. in a talkat the rag annual statewide conference on COINIUMereducation, Springfield, 111. in 1970.

67

WHAT DO YOU THINK ?DIRECTIONS: This is not a test. Do not sign your name! It is a measure of

opinions and attitudes of the class as a whole. There are no right or wrong answers

and you will not be graded on your replies. Read each statement carefully. Then

check the box that most accurately describes your opinion about it.

THE CONSUMER AND THE ECONOMYAgree Dis- Do Not

agree Know

Consumers have no choice in the modern marketplace.

Our economy is controlled by government regulation.

Business cannot serve consumer interests and makereasonable profits at the same time.

Economic conditions affect both earning and spending ofindividual consumers.

There are some economic aspects to most problems offamilies, businesses and governments.

Each time you buy something you are increasing the demandfor whatever you bought.

VALUES AND GOALSValuesthose ideals and principles you think are mostimportant in your lifehave little to do with economics.

The intelligent use of money is necessary to achieveimportant goals.

Many people do not know what is really important tothem and what tney want from life.

Vague values and goals lead to unsultable economic choicesby individuals, families, business firms and governments.

Your spending choices are one expression of your valuesand goals.

OCCUPATION AND INCOMEMost personal and social problems could be solved ifenough money were available.

Money is vitally important in personal and family living.

The amount one earns in a lifetime depends largely onchoosing the right career.

Money is the most important thing to consider in choosinga job.Some type of training or preparation is required for every job.

People with special skills and education can usually earnabove-average incomes.

MANAGEMENT OF RESOURCESAgree Dis- Do Not

agree Know

The ability to manage money is necessary to get the mostout of life.

Money management requires record keeping skills.

You don't need to manage money if you have enough of it.

Family income should be managed by the head of thehousehold.

Planning the use of resources is the only way to reachimportant goals.Following a budget eliminates impulse spending.

No two families should use the same money managementplan.

The main purpose of a budget is to save money.

ECONOMIC CHOICESThe consumer's alternatives in the use of his moneyincrease as his income increases.

To make satisfying decisions about the use of money,consumers need to know what choices are availableto them.

Each time you spend money for one thing, you are givingup other things you could buy for the same amount.

Consumer behavior makes a powerful impact on theoverall economy.

Consumers often must sacrifice one want in order to satisfyanother.

Making rational choices becomes more difficult as thenumbers of products and ways of merchandising themincrease.

CONSUMER INFORMATIONOne good book on money management is all anyonereally needs to be a smart consumer.

Sellers do not generally provide reliable informationabout their products.

The intelligent consumer finds out all he can aboutgoods and services before buyingparticularly whenmaking a major purchase.

Sound consumer information on products and servicesis available from a variety of sources.

It is usually difficult to get any useful information ongoods and services before buying them.

It is difficult for consumers to evaluate and use productinformation.

69

ADVERTISING, SELLING AIDS & MOTIVATORSAgree Dis- Do Not

agree Know

Advertisements can be an aid for consumers as well as sellers.

Trading stamps, games and coupons are a good way to getsomething for nothing.

High pressure selling frequently forces people to buy whatthey really do not need.

Most TV commercials are interesting, informative and in goodtaste.Newspaper advertisements are particularly helpful in supplyinginformation about sales and special low prices in local areas.

Advertising encourages consumers to spend more than theycan afford.

BUYING GOODS & SERVICES

HOUSING

It is more difficult to buy services than to buy goods.

The ability to deal effectively with misunderstandingsbetween buyers and sellers is a basic consumer skill.

Comparative shopping is the best way to check values andto get the best dealparticularly for major purchases.

Careful shoppers check store policies on returns, exchanges,refunds and guarantees before buying.

For some purchases, price is not as important as quality,reliable servicing, warranties and other characteristics ofproducts and services.

Owning a home is the least expensive way to provide housingfor the family.Both renters and landlords have legal rights which can beenforced in courts of law.Borrowing money is not a good way to buy a house becauseyou can lose the house if you fail to pay off the mortgageor loan.Housing needs vary with different individuals and families.

Cultural customs may influence a family's choice of housing.

70 70

CONSUMER CREDITAgree Dis- Do Not

agree Know

Buying on installment credit plans almost always leads tofinancial disaster.In some cases the only way people can get things they needis by using credit.

Paying your bills on time is the only responsibility you haveto think about in using credit.Stores should be able to take back or repossess purchaseswhen people do not pay for them.

Credit should be used only as a last resort in buying goodsand services and meeting family needs.

Buying patterns can be influenced by the types of creditavailable to the buyer.An established credit rating is as good as money in the bank.

Credit is used in some cases because it is the simplest way topay for certain goods and services.

INSURANCE PROTECTIONMost consumers need the same type and amount ofinsurance against financial risks.

A doctor is the best person to advise you on the type ofmedical and health insurance to buy.

The government should provide insurance protection forthose who cannot afford it.Insurance needs vary for every individual and family andat different stages of life.People with lots of money do not need insurance.

Every car owner should be required to carry liabilityinsurance.

SAVINGS & INVESTMENTSEveryone should put at least part of his savings into stocksand corporate bonds.

Every family should save at least 10% of its income.

For most people, future financial security depends largelyon long-term savings and investment programs.

Inflation reduces the value of cash savings because each yearmoney is worth less in terms of what a dollar will buy.

With old age assistance and social security, people do notneed long-range investment programs.

Saving and investing money is only possible when you arerich.

71 71

TAXESAgree Dis- Do Not

agree Know

Tax dollars serve everyone in some way.

The more services the government provides for citizens.the higher taxes will be.

People who cheat on income taxes are not being fair toother tax payers.People who have the most money pay the most taxes.

Taxes are the primary source of government income.

Citizens have no control over the use of tax dollars.

Taxes offer a way to pool resources for collective needs andwants.

CONSUMER GRIEVANCESConsumer dissatisfaction often is caused by expecting toomuch of goods and services purchased.

Most consumer problems can be quickly resolved if theconsumer complains to the right person and place.

Consumers frequently blame manufacturers, sellers orservicemen for mistakes or errors they themselves make.

Most consumer problems are a result of inferior productsand indifferent service.Many consumer grievances could be avoided if consumersand business firms would communicate more fully witheach other.

CONSUMER PROTECTIONToday consumers are well protected by law and bygovernment and private agencies set up to serve consumerinterests.

Generally, the burden of consumer protection should fallon the consumer himself.Consumers frequently go unprotected because they are notaware of their rights and the recourse available to them.

Laws intended to protect consumers may work againstconsumer interests.

New and stronger laws are required to provide adequateconsumer protection.

CONSUMER RIGHTS & RESPONSIBILITIESAgree Dis- Do Not

agree Know

For every right the consumer enjoys, there is a relatedresponsibility he should accept.

It is a consumer's responsibility to report unfair businesspractices to the proper authorities.

Consumers, business and government share the responsibilityfor keeping the marketplace fair and honest.

Consumer rights are of little interest to business or togovernment.Consumers should share in business profits.

It is a consumer's responsibility to read labels and followinstructions for use and care of products.

THE CONSUMER &THE ENVIRONMENTConsumer concern and action is the most powerful way topreserve and protect the environment.Individuals cannot effectively work against pollution ofthe environment.All of us are guilty of abusing and misusing our naturalresources.Lifestyles in the United States must change drastically tomake our natural resources meet our needs for the future aswell as the present.

Pollution and waste are problems to be solved by technologyrather than individuals who do not really understand thedifficulties.

t:431(1'3

;

73

74

content questionnaireQuestionnaires can help you find out what studentsknowand need to knowabout various areas

of consumer education. A broad multiple-choicequestionnaire such as the following can serve as

a pretest to help you determine which aspects of

consumer education need the most emphasis in thecurriculum. It is intended to give an overview of

students' familiarity with different consumereducation content areas. Questions limited to

specific content areas can be used kzter to introduce

dif ferent units. Some of the same questions can bc

reworded and used for testing after each unitand at the end of the course.

Select those questions most suited to the group andthe content area you plan to teach. You may wish

to reword some of the questions depending on the

makeup of your classes. The answer key

appears on page 80.

. 74

WHAT DO YOU KNOW?

L

DIRECTIONS: Do not sign your name! This is not a test and you will not begraded on your answers. It is a measure of the awareness of consumer edu-cation content areas of the class as a whole. In the blank space at the left ofeach numbered item write the letter of the word or phrase which best com-pletes the statement.

a

(Example)

1. Insurance operates largely on the principle ofa. sharing economic risksb. eliminating financial hardshipsc. giving financial aid to the disadvantagedd. all of the above.

THE CONSUMER &THE ECONOMY VALUES & GOALS

1. The economic principle of scarcityrefers toa. unlimited wants and limited

resourcesb. profit lossesC. competitiond. supply and demand.

2. Consumer activities which affectthe economy includea. saving and investingb. spendingc. borrowingd. all of the above.

3. In a private enterprise economy theuse of productive resources isdetermined largely bya. forces of supply and demand in

competitive marketsb. government regulationsc. business enterprisesd. consumer action.

4. The values of individuals andsocietya. consciously or unconsciously

determine attitudes and behaviorb. bear no relationship to attitudes

and behaviorc. should remain the same

throughout one's lifetimed. should be determined by

personal experience onli.

5. The dominant values in a society area. those held by all members of

the societyb. those considered appropriate by

the majority in a societyc. those which minority groups

consider most importantd. those which minority groups

reject.

6. To be most effective, personalvalues and goals should bea. clearly defined in your own mindb. copied from friends and familyc. in conflict with societyd. unchangeable in a changing

world.

75

; 75

OCCUPATION & INCOME

7 Money is defined primarily asa. a medium of exchangeb. a form of securityc. a key to the good iifed. none of the above.

8. The size of an individual's incomeis determined primarily bya. his or her age and sexb. race and ethnic backgroundc. experience, training and

educationd. appearance and manner.

9. In choosing and preparing for a jobit is least important to considera. income and opportunities for

success and advancementb. job security and fringe benefitsc. what you do well and like doingd. what your closest friends plan

to do.

MANAGEMENT OF RESOURCES

10. The most important purposeofmoney management is to make itpossible for you toa. buy everything you really wantb. afford whatever your friends buyc. get more satisfaction from

your moneyd. increase your income.

11 Discretionary income can bedefined asa. money used for fixed expensesh. income received after payroll

deductionsc. income left after deductions and

meeting necessary expensesd. income before payroll

deductions.

12. An effective money managementplan for an individual or familya. requires periodic reviewand

revisionb. is based primarily on income,

expenses, needs, wants andgoals

c. is flexible enough to deal withthe unexpected

d. all of the above.

ECONOMIC CHOICES

13. Basically, intelligent economicchoices depend ona. considering possible alternativesb. making accurate predictions of

economic trendsc. getting advice from expertsd. saving 5% of each paycheck.

14. The collective economic choicesof consumersa. are regulated by governmentb. nuke little or no impact on the

overall economyc. make a significant :;ontribution

to the success orfailure ofindividual businesses or products

d. have no effect on the individualconsumer's well-being.

15. For optimum personal satisfaction,each purchase should be consideredin terms ofa. price aloneb. what other items you could buy

for the same amount of moneyc. what your friends buyd. the brand name and the manu-

facturer of the product or service.

CONSUMER INFORMATION

16. Recommendations of specificproducts and brand names aregenerally available froma. the feder al governmentb. local government agenciesc. Consumer Reportsand

Consumer Bulletind. your Better Business Bureau.

17. The most detailed sources ofshopping information on a widevariety of products area. mail order catalogsb. newspapersc. Better Business Bureaud. consumer magazines.

18. The primary purpose of com-parative shopping is to help youa. decide what to dn with your

incomeb. find out how differentproducts,

services and stnres comparewith each other

c. analyze your values and goalsd. decide when to use credit.

76- 76

ADVERTISING, SELLING AIDSAND MOTIVATORS

19 Trading stamps are essentiallya. a form of advertising and

sales promotionb. a form of cash savingsc. a deceptive practiced. illegal in most states.

Advertising and promotionalschemes are designed primarily toa. force consumers to buy what

they do not wantb. increase salesc. misiead the publicd. reduce prices.

Advertising revenues pay for alarge share of the costs ofa. educationschcols, learning

materials, teacher salariesb. communicationstelevision.

radio, newspapers and magazinesc. government operations at local

and state levelsd. entertainmenttheater, movies,

athletic events.

BUYING GOODS & SERVICES

22 It is a sound buying pract;ce tobuy onlya. when prices are reduced

by 30% or moreb. when you can get top quality

goods and servicesc. when you can afford the extra

costs and upkeep related to yourpurchases

d. when goods and services havebeen recornmendeo by personalacquaintances who haveused them.

The following information on alabel which would be most helpfulisa. 100% cotton, machine wash,

tumble dry, no-ironb. lifetime guaranteec. this new fabric designed for

longer wear and less cared. this is a product of "Acme"

manufacturing.

Buying services requires morecare than buying goods becau3ea. services are more important

tha.igoodsb. you cannot inspect services

before buyingc. you cannot trust people who

sell servicesd. services take a larger share of

income than goods.

HOUSING

The way a family meets its housingneeds dePeods ona. size and makeup of the familyb. personal preferencesc. income and obligationsd. all of the above.

_26. A lease is a legal document whicha. states rights and responsibilities

of the tenant and the landlordb. can be changed or dissolved at

any time by request of eithertenant or lanolord

c. must be signed before you canrent any type of housing

d. cannot be broken under anycircumstances.

The amount an individual or familyspends on housing should bea. no more than 20% of incomeb. the largest single expense in

the budgetc. determined by size of income

and the importance placedon housing

d. less than the amount spenton food.

CONSUMER CREDIT

_28 The most ire...wt.:Ant informationcreek grantors or rezailers want toknow before granting you credit isa. how much money you earn and

how you paid bills in the pastb. who you knowc. where you lived. whether or not you went to

college.

Consumer credit is a financialtool whicha. limits spending to the amount of

cash you have on handb. lets you buy or borrow now

and pay laterc. increases the amount you have

to spendd. encoterages saving and investing

your money.30 If you buy a major item such as a

color TV on the installment or timepayment plan you usuallya. pay the same finance charge no

matter where you buyb. pay no finance charge it you

make your monthly paymentson time

c. sign a contract and make equalmonthly payments for a setperiod of time

d. get better service on your TVset than if you pay cash.

31 The consumer's primary respon-sibility in using credit isa. borrowing or buying on time

only as much as he can comfort-ably pay for out of future income

b. paying as much on his debts as hecan possibly afford every month

c. understanding the formulas usedto figure the true annual interestrates

d. limiting the use of credit toemergency needs.

INSURANCE NEEDSCollision insurance pays fordamage toa. the insured's car in the event

of accident or upsetb. the insured's car and that of

others involved in an accidentwith his car

c. only the car belonging to some-one else when involved in anaccident with the insured's car

d. the car and medical expenses ofsomecne else when involved inan accideot with the insured's car.

An insurance program for anindividual an± family shoulda. be tailored to specific needsb. be based on a formula for

income and number ofdependents

c. provide protection against allfinancial risks, no matter howsmall

d. provide protection only againstmajor financial disasters.

34 Term life insurance usuallya. offers a large amount of protec-

tion lor a limited period of timeat a relatively low cost

b. builds up a sizable cash valuec. provides lifetime protectiond. combines protection with savings

at relatively high cost.

35 A deductible clause in an insurancepolicy refers toa. that part of the premium that

can be claimed as a taxdeduction

b. the amount the insured candeduct from his premium if noclaims are made in a given year

c. the part of covered expensesthat the insured must pay beforeinsurance benefits begin

d. the part of covered expensesthat will be paid by the insurancecompany.

Social Security is a compulsorygoven iment insurance prowamwhich pays benefits toa. all citizens who reach a certain

ageusually 64 or 65b. government employees who are

injured on the :43bc. insured workers who reach a

certain age and family memberswho survive a qualified worker

d. all families with children underfive years of age.

SAVINGS& INVESTMENTS

37 The most important things toconsider for an emergency savingsfund area. safety and a high rate of returnb. a hich rate of return and avail-

ability of funds if needed quicklyc. safety and availability of funds

if needed quicklyd. a hedge against inflation.

38 Stocks and bonds differ in thata. stocks represent ownership in a

corporation while bc:nds repre-sent a loan to the issuer of thebond

b. the stockholder's investment issafer than the bondholder'sinvestment if the company goesbroke

c. stock dividends are normallygreater than interest on bonds

d. stock prices normally are lessflexible than bond prices.

78

39 In periods of inflation, cash savingsa. increase in purchasing powerb. cktcrease in purchasing powerc. stay the samed. none of the above.

TAXES

40. The three largest expenditures ofthe federal government area. agriculture, dzfense, and

health and welfareb. defense, health and welfare.

and educationc. defense. health and welfare, and

interest on the national debtd. defense, international affairs

and government operations.

41. The largest single source of federalrevenue isa. individual income taxb. corporate income taxc. sales taxd. social insurance.

42. Income tax returns must be filed bya. everyone between ages 21 and

65b. everyone who owns proPertyc. everyone with a gross income

over a certain amount in agiven year

d. everyone who is employed.

CONSUMER GRIEVANCES

43. Consumer grievances can best behandled bya. promptly reporting ail pertinent

information to the appropriateperson and place

b. rsver returning to a store whereyou have had a misunderstandingor some trouble

c. insisting on perfection in thegoods and services you buy

d. taking immediate legal actionwhenever you are dissatisfied.

44. Consumer problems may be aresult ofa. misuse of a productb. an inferior or faulty productc. a misunderstanding between

the buyer and sellerd. all of the above.

_45. Consumer problems cannot beresolved ifa. the consumer and the seller

do not communicateb. a product is faultyc. the consumer gets medd. the COnSUMar does not have

a lawyer.

CONSUMER PROIT-CTION

46. Government agencies that protectthe consumer area. Better Business Bureaus.

Chambers of Commerce andSimilar associations

b. local. state and nationalconsumer organizations

c. manufacturers and retailersd. Federal Trade Commission and

Food and Drug Administration.

47- Consumer protection by law coversall of the following excepta. deception in advertising, labeling

and sei I ingb. safety hazardsc. consumer errors in selection, use

and care of productsd- illegal and fraudulent business

Practices.

48. Detailed informztion on pendingconsumer legislation is reacGlyavailable througha. your local post officeb. any government book store or

the Superintendent of DocumentsC. your congressman, senator or

the Congressional Reportd. your local library.

CONSUMER RIGHTS ANDRESPONSIBILMES

49. A responsible consumer willnormallya. leave consumer legislation and

action to the expertsb. suffer in silence rather than

complain when dissatisfiedc. recognize that his individual

effort can make little or noimpact in the marketplace

d. do whatever he can to protecthis own rights and improve theconsumer's position in themarketplace.

79

50. The consumer's right to safetyinvolves all of the following excepta. the manufacturers and retailers'

responsibility to provide ade-quate, easy-to-read use and careinstructions and safety precau-tions where needed together withthe consumer's responsibility touse them

b. the removal from the market-place of all hazardous substancesand products frequently involvedin consumer accidents orinjuries

c. a willingness on the part ofconsumers and businesses topay the cost of built-in productsafety

d. thorough testing of productsprior to marketing to insuresafety and performance.

THE CONSUMER AND THEENVIRONMENT

51. Adequate pollution control wouldrequirea. abolishing the use of pesticides

and other unnatural productsb. curtailment of all industrial

activityc. a willingness on the part of

consumers, industry and govern-ment to pay the cost of recyclingand proper waste disposal

d. prohibition of all glass, plasticand metal containers by 1978.

52. Preserving the environment for ourown and future generations involvesa. return'ng to a primitive existenceb. modification of lifestyles and

goals in economically advancednations

c. an increase in productivecapacity in all nations

d. immediate and extreme action onthe part of all individuals and allsegments of the economy in theUnited States and all othernations.

ANSWER KEY TO"WHAT DO YOU KNOW?"

1. a 14. c 27. c 40. c

2. d 15. b 28. a 41. a

3. a 16. c 29. b 42. c

4. a 17. a 30. c 43. a

5. b 18. b 31. a 44. d

6. a 19. a 32. a 45. a

7. a 20. b 33. a 46. d

8. c 21. b 34. a 47. c

9. d 22. c 35. c 48. c

10. c 23. a 36. c 49. d

1L c 24. b 37. c 50. b

12. d 25. d 38. a 5L c13. a 26. a 39. b 52. b

consumerbehavior

questionnaire

8,1

Just as a content questionnairecan help you determine whatstudents know and need to knowabout consumer education, so canthe same techniques help youdiscover how they handleconsumer matters in everydaylife. How would you characterizeyour students' consumerbehavior? "What behaviorchanges are desirable and howcan you bring them about?

The following consumer behaviorquestionnaire, "What Do YouDo? ," is designed to give yousome insight into how yourstudents act as consumers. Withthis information you can makeconsumer education more mean-ing ful and practical by buildingon the experiences and practicesof your students.

WHAT DO YOU DO ?

DIRECTIONS: Do not sign your name! This is not a test. Yon will not be graded on your

replies. Read each question carefully ; then check the box that you believe answers thequestion correctly in terms of your own consumer behavior.

11.

aeca-sloe-

Yes No ally

1. Do you plan purchases before shop-ping?

2. Do you follow some type of spend-ing plan?

3. Do you ever give serious thought tovalues and goals-to what is trulyimportant to you and what you hopeto achieve and obtain?

4. Do you ever write down goals forspending?

5. Do you normally compare prices andquality of goods and services in sev-eral places before buying, particu-larly when buying major purchases?

6. Do you consider how your consumerdecisions affect the supply and de-mand for specific goods and ser-vices?

7. Do you inspect goods carefully be-fore buying?

8. Do you ask questions and-whenappropriate-get written guaranteeson goods and services before buy-ing?

9. Do you consider how an item willbe used when deciding what qualityto buy?

10. Do you know which features are-and are not-important to you in dif-ferent products?

11. Do you read labels and hangtagsbefore buying?

12. Do you keep labels and hangtagshandy after buying for Informationon use and care?

13. Do you follow directions for use andcare of products?

14. Do you decide approximately whatyou can pay for a specific item be-fore shopping?

15. Do you know where, when and howto call for necessary servicing andrepair of the products you buy?

16. Do you gather reliable information ongoods and services to help you de-cide what and when to buy?

17. Do you make an effort to get alongwith salespeople?

18. Do you make necessary returns andexchanges promptly?

Oa:a-garTos No any

19. Do you check a store's policy on re-turns and exchanges before you buy?

20. Do you make a conscious effort toseparate information from persuasionin advertising?

21. Do you keep up with new develop-ments in products, services, sellingmethods, etc.?

22. Do you keep up with consumer inter-ests, activities and legislation?

23. Do you find out how much you willpay before you use credit?

24. Do you know the responsibilities in-volved in using credit?

25. Do you read contracts carefully be-fore signing?

26. Do you complain effectively and con-structively when necessary?

27. Do you know how to file a tax re-turn?

28. Do you know where to tnd informa-tion on goods and services beforeyou buy?

29. Do you have any type of savingsprogram?

30. Do you normally balance your in-come and your spending?

31. Do you cooperate with your familyin managing family income?

32. Do you know what government agen-cies and private organizations aidconsumers?

33. Do you postpone purchases untilsale prices are in effect wheneverpossible?

34. Do you know how utility bills arecomputed for ...3,-,ome? (Gas, electric-ity, water, 4Aephone. etc.)

35. Do you know the legal responsibil-ities of automobile owners anddrivers?

36. Do you know the approximate costof items you buy frequently?

82

5

19

22 26

23

24

words to knowEffective teaching-learning situations begin with acommon language to facilitate communication. Oneway to discover how much students know about atopic before studying it is to check their under-standing of key words and phrases. While this canbe accomplished in a number of ways, the followingsuggestions have been successful in various class-room situations :

Keep dictionaries in the classroom and encouragestudents to look up new and unfazniliar wordsand phrases as they come up in discussion, read-ing or special projects.Use word association games, asking students towrite down the first word that comes to mind inconnection with a specific consumer word or term.Then let students compare their associations withthe different words and terms. Follow up with adefinition and discussion of the real meaning ofdifferent terms.

,---C,83

Work up crossword puzzles, using key terms andphrases related to consumer education and per-sonal economics.

Use new words in sentences that will reveal theirmeaning.

Write a consumer glossary containing key wordsand phrases for different content areas in con-sumer education.

Divide the class into small groups, each to be re-sponsible for defining and using the key wordsand phrases from specific content areas.

You may want to concentrate on those words fromthe "Glossary of Consumer Terms" beginning onpage 88, which your students will need to under-stand as they work toward the goal of becomingcompetent consumers and informed citizens.

83

generalreferences

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Bigge, Morris L. and Hunt,Maurice P. Psychological Foun-dations of Education, SecondEdition. New York: Harper &Row, Publishers, 1968.

Bruner, Jerome S. Toward aTheory of Instruction. Cam-bridge, Mass - The BerknapPress of Harvard UniversityPress, 1967.

Campbell, Sally R. A DepartmentStore in the Classroom. Chicago,IlL: Sears, Roebuck and Co.,1969.

Clark, Leonard H., Klein, Ray-mond L., and Burks, John B.The American Secondary SchoolCurriculum. New York: TheMacMillan Company, 1965.

Combs, Arthur W. et al. Per-ceiving, Behaving, Becoming ANew Focus for Education. Asso-ciation for Supervision andCurriculum Development. Wash-ington, D. C.: NEA, 1962.

Dervin, Brenda et al. TheSpender Syndrome. Center forConsumer Affairs, University ofWisconsin, UWM Campus. Mil-waukee, Wisc.: UniversityExtension, 1965.

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Lorge, Irving, Jensen, G.,Bradford, L., Birnbaum, M.Adult Education: Theory andMethod-Adult Learning. Wash-ington, D. C.: Aduh, EducationAssociation of the U.S.A., 1965.

Lorge. Irving, McClusky,Howard, Jensen, Gale. Psychol-ogy of Adults. Washington,D.C.: Adult Education Associa-tion of the U.S.A., 1963.Pumerant, Dr. Phillip et al.Adult Bask Education TeacherTraining Models. Bridgeport,Conn. : University of Bridgeport,1970.

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adapting fordifferencesin learningabilitiesFincher, Jack. "Why Are WeAfraid of Our Best Children?"McCall's, August, 1970.Goldberg, Miriam. Research onthe Talented. New York: Bureauof Publications, Columbia 'Uni-versity, 1965.Illinois Teacher of Home Eco-nomics. Vol. VII, Nos. 1 and 2_Division of Home EconomicsEducation, Department of Voca-tional and Technical Education,College of Education, Urbana,Ill.: University of Illinois, 1963.Karnes, Merle. "The SlowLearner: What are His Char-acteristics and Needs?" Today'sEducation. National EducationAssociation Journal, March,1970.Kohl, Herbert. Teaching theUnteachable. New York: NewYork Review Book, 1967.

Riessman, Frank. Helping theDisadvantaged Pupil to LearnMore Easily. Englewood Cliffs,N. J. : Prentice Hull, Inc., 1966.

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American Home Economics As-sociation. Working with Low-Income Families: Proceedings ofthe AHEA Workshop. Washin?..ton, D. C.: 1965.

Banks, Louis et al. The Negroand the City. New York : TimeLife Books, Inc., 1968.

Bauer, Raymond A., and Cun-ningham, Scott M. Studies in theNegro Market. Cambridge,Mass.: Marketing ScienceIratitute, 1970."Black America," Time, April 6,1970.

Campbell, Sally R. "IdentifYingConsumer Problems for Low-Income and Adequate-IT:comeStudents," Forecast for HomeEconomics. January, 1970.

Caplovitz, David. The Poor PavMore. New York: The FreePress, 1967.

Conant, James B. Slums andSuburbs. New York: McGrawHill, 1961.

"Education in the Ghetto,"Saturday Review, January 11,1969.

Dorothy. "The GhettoThat Blew Up," McCall's, July,1968.

oarripgtorti, miehael. The Othertentrroiect-n, kloti.m"re,

.4040 .Pritt nt' Being Poor,"Ch049149 Noes, April, 1968.vuois New. for Contempo-rary Agee. vol. XII, N" 3.Divisio51 ot gone Eco:lomiesEducation Department of Voca-tionAi anci ireebnical Education,c °liege of cincatiem, UniversitYof /11;n018, brbana, 1968-69.

LiviAnnng.: 1ZrZo.r

yjarnemak110.,, Journa2 of HomeEconomic*. 6, No. 10,peeeraher, 1969.

T,retan, jozepb, and Unaans,gielleY. Tette/ging the Disadvan-taged- yark Teaeher Col-lege Prez,,, Teachers college,Calorab-a University, 1966.

Incoele Life Styles. U . S.pept.Ot tt,aitb, Education andWelfare, Ikegare Admn. wash-ington, D. C.: U. S. Governmentprinting (*ice, 1966-,Tove-rty .A.rnerica : Cause andoa-tent." Z. May 17, 1968.

polertY's children. Washington,c. : Croas_Tell, 1966.

itiessman, rrank. Helping therfri-5adoantrzned Pupil to Learnmarfe.taii;. Englewood Cliffs,/4- 4.. 4.1.12tiCe Hall, Int., 1966.

bicorne Cultiare: TheStrength% f the Poor," Jaarnal

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ThiTeacrdhiZttistiriNvaatni:anaglettut- h-

tionalc:Teo.lanieal Teacher Educa-tion "Atinar Proceedings,1...e,aderaiii,.. series No. 24, vTR0163, e.Zriter for Vocationaland Teehkinai Education, Ohiostate University, Columbus, Ohio:1910.

vole, tub. wrhe Suburb ThatTurned jt;/3ack,"Jam 19%

differences inconsumerbehaviorBritt, Steuart Henderson et al.Consumer Behavior and theBehavioral Sciences. New York :John Wiley & Sons, Inc., 1966.

Bruce and Dommermuth. "SocialClass Differences in ShoppingActivities," Marquette BusinessReview, Spring, 1968.

Grossack, Martin M. et al. Un-derstanding Consumer Behavior.Boston; Mass.: The ChristopherPuhlishir r's House, 1964-

Hollingshead, August B., andRedlich, I. C. Social Class andMental Illness. New York: JohnWiley & S°ns, Inc" 1958.

McNeal, James U. et al. Dimen-sions of Consumer Behavior.New York : Appleton-Century-Crofts, 1965-

"Life Style Concepts andMarketing," pp. 128-36."Social Classes and SpendingBtvior," pp, 161-73.

Newman, Joseph. On Knowingthe Consumer. New York: JohnWiley & Sons, Inc., 1966-

Rainwater, Lee et al. Working-man's Wife: Her Personality,World and Life Style. New York:McFadden-Bartell Corn-, 1959.

Rodman, Hyman, "The LowerClass Value Stretch," SocialForces, Vol- 4, No. 2.

Rokeach and Parker. "Values asSocial Indicators of Poverty andRace Relations in America," TheAnnals of the American Acad-emy of Political and S&cial,Science, March, 1970.

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tutABSTRACT OF TITLEalegal document which describesthe past ownership of propertyshowing the history of alltransactions which affect titleor ownershipa condensedhistory of the title or owner-ship of land.

ACCELERATION CLAUSEaprovision granting a creditorthe right to demand advancepayment under certaincircumstances such as afailure to make a payment;sometimes also used to referto a provision in a creditcontract granting a debtorthe right to pay all or partof a debt in advance.

ACCOUNTANTa persontrained in the field of account-ingif licensed, called acertified public accountant(CPA).

ADVERTISEMENTa paidpublic announcement offeringgoods, services and ideasfor sale.

ALIMONYset payments madeto a marriage partner afterdivorce or separationagreement.

AMORTIZATIONscheduled,gradual reductioa of debtthrough periodic payments ofinterest and principalcombined.

ANNUAL PERCENTAGERATEthe actual rate ofinterest or finance chargefigured on a yearly basis.

.ANNUTTYcontract callingfor payment of a fixed sum fora given perbd of time orfor life.

ANTI-TRUSTthe laws andlegal actions designed to ensurefair trade and competitionand to prevent monopoliesin trade.

APPLICATION FORMa formrequesting specific writteninformation from personsapplying for credit, a job,an apartment, etc.

APPRAISALthe evaluationof the worth of something;frequently used in connectionwith insurance claims, taxablevalue of property and saleof real estate.

ARBITRATIONa method ofsettling disputes outside ofcourt in which the partiesinvolved agree to accept thedecision of a third party.

AS ISa term meaning thatmerchandise is to be sold inits present condition regard-less of defects, flaws orimperfections.

ASSESSto fix the value ofsomething for tax purposes.

ASSETSpossessions of value,usually measurable in termsof dollars.

ASSIGNto transfer property,real estate, securities,possessions or rights toanother person(s).

ATTACHMENTan authoriza-tion to temporarily seize andhold property of a defendantinvolved in legal action, inorder to satisfy any judgmentagainst the defendant in favoro E a creditor or plaintiff.

ATTORNEYperson trained,qualified and admitted to thepractice of law (licensed topractice law). Legal agentqualifiect to act for clientsin legal proceedings-

ATTORNEY GENERALheadof the Department of Justicein the U.S. or chief law officerof each state. He or theAssistant Attorney Generalrepresents the governmentin legal matters.

AUTOMATIONuse ofmachines to increase efficiencyand to reduce or eliminatecertain types of human labor.

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BAILMENTan express orimplied contract arising whenproperty is entrusted by theowner to another for aspecific purpose such asrepairs, cleaning or servicing.

BAIT AND SWITCHadeceptive scheme by which aproduct is advertised at anattractive price, but the cus-tomer is denied the opportunityto buy the advertised item andis instead switched to higher-priced merchandise by variousunfair practices generallycharacterized as "nailingthe advertised product tothe floor."BALANCEan amountremaining due on an account ordebt; also the differencebetween deposits and with-drawals in an account.BALANCE OF PAYMENTSastatement of total financialtransactions of one countrywith other nations for aspecific period of timeusually a year_BALANCE SHEETan item-ized statement showing nssets,liabilities and net worth ona given date.BALLOON CLAUSEaprovision in an installmentcontract allowing the finalpayment to be significantlylarger than the monthlypayments.BANKRUPTa person whohas committed an act of bank-ruptcy; one who is not ableto meet his financial obliga-tions; technically, one whohas been declared bankruptby the court and whose assetsare assigned and distributedto creditors.BANKRUPTCYa legal pro-ceeding for the purpose ofhaving a person or companyadjudged bankrupt or unableto pay obligations and to havethe estate or assets dividedamong creditors.

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BENEFICIARYthe personnamed in a life insurancepolicr to receive benefits orprocevis when they becomepayab,'.,; a person designatedto receive property under theterms of a will.

Bk-krat BUSINESS BUREAUa not-for-profit organizationmaintained by business whichprovides information con-cerning companies sellinggoods and services and offersa no-charge procedure forprocessing complaints.Develops educationalprograms for consumers andreviews advertising on thebasis of established standardsand government regulations.

BILL--a list of charges orcosts for goods or services pre-sented by the person or firmproviding the goods or servicesto the person paying for them;also, a bill is the term usedto describe a proposed lam-which has been introducedin a legislative body buthas not yet been eitherrejected or passed.

BILL OF SALEwrittenevidence of the transfer ofgoods or services from slaterto buyer.BONDcertificate or evidenceof debt issued by corporationsand governments involvinga promise to pay a certainamount of money on a specificdate and interest at a statedrate.

BONDEDsecured or pro-tected by a pledge of property.

BRAND NAMEidentifyingmark or design designating amanufacturer, seller, qualityor other characteristic of aproductBROKERdealer or agent who,for a commission or fee,brings parties together andassists in negotiating businessbetween themrefers largelyto transactions in securities,insurance and real estate.

BUDGETa plzui for the useof money based on goals andexpected income andexpenditures.

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BUSINESS CYCLEan expan-sion and contraction of theeconomy and business activitiesat periodic intervals.

BUYto acquire by payinga price; to purchase.

BUYERa consumer; onewho buys.

BUYING POWERthe capacityto buy as measured by income.Buying power of the dollaris the relative amount thatcan be purchased with adollar at a given period ascompared with some establishedbase period.

CAPACITYthe ability tomeet financial obligations.

CAPITALassets in the formof cash and securities orproperty and equipment whichcan be converted to cash orsomething else of value.

CAPITAL GA1Na gain re-suiting from the sale orexchange of capital assets ata price higher than thatoriginally paid for the assets.

CAPITAL GOODSthe tools,equipment and machineryused to produce goods orto provide services.

CAPITALISMan economicsystem in which the means ofproduction are privately ownedand controlled and which ischaracterized by competitionand the profit motive.

CARRYING CHARGEanamount other than interest,added to the cash price ofgoods sold on credit under aninstallment contract. (TheTruth in Lending Lawrequires the stated financecharge to include all chargesinvolved in using credit.)

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CASH AND CARRYa busi-ness policy requiring customersto pay cash for purchases andtake them personally, ratherthan have them charged and/ordelivered.

CASH RESERVESliquid as-sets set aside for emergencies.

CASH SALEcash is paid atthe time of purchaseno credit,charges, or C.O.D.

CASH SURRENDER VALUEthe amount available in case alife insurance policy is volun-tarily cancelled or surrenderedbefore it becomes payable bydeath or at maturity. Theamount is stated in the policy.

CATALOGa listing anddescription of products andservices for sale by retail storesor mail order houses.

CAVEAT EMPTORlet thebuyer beware. (Latin)

CAVEAT VENDITORIet theseller beware. (Latin)

CEASE AND DESIST ORDERcourt or official agency ordercalling for an immediate stopto some activity or practice.

CERTIFICATE OF DEPOSITreceipt issued by a bank forthe deposit of funds, promisingto pay the amount depositedplus specified interest on orafter a certain date. Dependingupon the terms of the certifi-...ate, it may be either negotiable..-- non-negotiable. The amountof the certificate is notrequired to be paid priorto the specified date-

tEkellk 1h11 CHECKa checkfor which the bank on which itis drawn guarantees fundshave been set aside to snakepayment- (Required as a formof payment for certain typesof transactions.)

CHAMBER OF COMMERCEassociation of business andprofessional men and firms,organized to promote legitimatebusiness interests and trade.

CHARGE ACCOUNTarrange-ment between seller and cus-tomer permitting the customerto buy goods and services nowand pay for them lateraccording to an agreed uponmethod of payment.

CHATI'ELany personal prop-erty other than real estate.

CHATTEL MORTGAGEaloan secured by personal prop-erty or goods and chattels.

CHECKan order to a bank,drawn upon a deposit offunds in that bank, to paya specified amount of moneyto a named person or hisorder upon demand.

CHECKBOOKa pad of blankchecks used by a depositorto draw checks on his account

CHECKING ACCOUNTa typeof bank account which permitsa depositor to draw (write)checks against the balancein his account

CHOICEthe selection of oneof several alternatives.

CLAEKa demand made toassert a legal right, suchas a claim made by an insuredperson to an insurance com-pany for settlement underterms of an insurance policy.

CLASS ACTIONa legal pro-cedure in which an individualor group of individuals can suea company or organizationfor a specific claim on theirown behalf and on behalfof all who have a commoninterest in the claizn.

CLEARANCEa sale for thepurpose of clearing outcertain merchandise, usuallyend-of-season, out-of-season,or discontinued. Whenproperly used, the term appliesto merchandise reduced inprice to clear.

CLERKa somewhat archaicterm for a salesperson ina retail outlet

CLIP JOINTa slang expres-sion for a dishonest businessplace.

CLOSE OUT--discontinuedmerchandise which is beingdisposed of in special selling.When properly used, theterm applies to the seller'sentire remaining stock of thediscontinued item whichis permanently reduced inprice until sold out_

CLOSING DATEday as ofwhich all credits, charges andadjustments are computedon a credit account for billingpurposes. In real estate trans-actions, the day on which theparties meet to deliver thedeed and transfer the moneyagreed to be paid.

C.O.D.cash on deliverypayment is made when themerchandise is delivered.

CODE DATINGthe numbersand letters on foods andperishable items indicatingeither the date manufacturedOr date after which the qualitymay suffer and the productshould not be sold.

COLLATERALsomething ofvalue pledged as security for aloam

COLLECTIVE BARGAININGthe negotiation between organ-ized workers and employerswith the aim of agreeing onwages, fringe benefits andworking conditions.

CO-MAKER (CO-SIGNER)aperson who signs a note alongwith a borrower therebyagreeing to pay the obligationif the borrower fails to do so.Co-maker's responsibilitiesvary with individual state laws.

COBIMERCIALgenerallyrefers to the buying and sellingof goods and services; alsoa paid advertising announce-ment on radio or television.

COMMISSIONthe money paidto an agent or salesman basedon the value of his sales.

COMMODITY--any salableitem in commerce or tradesuch as goods, merchandise,products.

COMMON STOCKa share inownership of a corporation.

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COMPANYauociation ofpersons who have cometogether with capital, skillsand time to perform somecommercial action such asproduction, distribution,selling, promoting, etc.

COMPARISON SHOPPINGlooking at dzfferent brands andmodels of the same or similarproducts in several storesto compare prices, quality,features and store servicesbefore buying.

COMPETITIONcontinuingstruggle among businessfirms to gain a larger shareof a given market or otheradvantages.

COMPOUND INTERESTcalculated prior to a designateddate or dates (e.g. quarterly orsemi-annually, etc.) to forma new base after eachcalculation.

CONDITIONAL SALES CON-TRACTan agreement some-times used for installmentsales under which the sellerretains title to goods until thebuyer has completed paymentfor them.

CONDOMINIUMa form ofhome ownership in whichan individual -swns his ownunit and shares ownershipand expenses of maintainingcommon areas such as halls.stairs, lobby, equipmentand grounds.

CONFESSION OF JUDGMENTa statement acknowledgingthe existence of a debt, givenby debtor to creditor, which,when filed in court, permitsthe creditor to obtain ajudgment against the debtorwithout notice to the debtor.(Illegal in some states.)

CONSOLIDATEto bringtogether several debts or obli-gations under one contract

CONSUMERone who usesgoods and services; buyer ofgoods and services.

CONSUMER CREDITan ex-tension of credit to consumersor individuals for personalor family needs.

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CONSUMER PRICE INDEXthe measure of the cost of liv-ing as tabulated by U.S. Bureauof Labor Statistics based ona hypothetical standard ofliving consisting of the actualretail prices of a widevariety of consumer goodsand services at a given timeand compared to a baseperiod which is changedfrom time to time.

CONSUMER PROTECTIONa type of aid and protectionrelated to consumer interestsprovided by law, by governmentagencies or by private indi-viduals or organizations.

CONTINGENCYan event thatmay occur but which is notlikely or intended.

CONTRACTa legally bindingagreement between two ormore persons which creates,modifies or cancels somelegal relationship.

COOLING OFF PERIODanamount of time provided by lawfor consumers to cancel apurchase of goods and servicesfrom a door-to-door seller.(Required by law in somestates and also under consid-eration as an FTC traderegulation rule.)

COOPERATIVEa enter-prise created and owntd jointlyby its members, operated fortheir mutual benefit, with asharing of profits, if any,among the total membership.Consumer cooperatives areformed largely for the purposeof purchasing goods andservices at favorable prices;housing cooperatives areformed to provide housingfor members; farmer cooper-atives are formed to marketproduce jointly.

CORPORATIONa legal enEtycreated under law whichmay enter into agreements,carry on business activities,perform a variety of functionsand be subject to legalaction and law suits. Legalaction against a corporationmay not be extended into the

private interests of itsofficers, directors or share-holders.COST OF LIVINGthe amountof money needed to buy goodsand services required tomaintain a certain standardof living.COUPONinterest and divi-dend certificates which arewritten contracts for paymentof a specified amount on agiven date; also certificatesentitling the holder to arefund or discount of a certainamount on the purchaseof a specified item.COVERAGEan insuranceterm meaning either the dollaramount of money protectionprovided or the hazardsagainst which the protectionis given.

CREDIT WORTHINESSanamount loaned to a debtor orowed to a creditor.

CREDIT BUREAUan organi-zation which collects and keepsfiles of information on creditpractices of individual con-sumers and makes informationavailable to subscribing creditgrantors and other businessesfor confidential use, usuallyin making credit available toconsumers. (Bureaus are nowrequired by law to makeinformation available to theconsumer concerning his owncredit record.)

CREDIT CARDan identifyingcard entitling the holder tocharge goods and servicesand/or to borrow money.

CREDIT INSURANCEa formof insurance which pays whatis owed if the debtor shoulddie or become disabled priorto fulfilling the contract.CREDITORan individual orbusiness that makes creditavailable by lending moneyor selling goods and serviceson credit.

CREDIT RATINGa creditor'sevaluation of a debtor's (orprospective debtor's) willing-ness and ability to pay hisdebts as judged by pastperformance.

CREDIT UNIONa coopera-tive association made up ofmembers who share somecommon bond such asemployees of the same com-pany. Designed primarily toprovide a way for membersto save and/orborrow money.

CURRENCYany freely circu-lating and widely acceptedmedium of exchange; theofficial money of a country.CUSTOMERone who buys ordoes business with a particularstore or firm; person whomakes a purchase.

CUSTOM-MADEsomethingmade to the individual order ofa customer or to fit particularspecifications set by thecustomer.

DEALERone who buys prod-ucts from a manufacturer orwholesaler for resale to thefinal user-

DEBENTUREusually an un-secured promise to pay issuedby a company or corporation.

DEBTsomething owed(usually money) by oneperson to another.

DEBT ADJUSTERa person ororganization that takes a largeportion of a debtor's incomeand divides it among Ir.'screditors according to termsof an agreement betweenadjuster, creditors and debtor.Debt adjusters may providethis service free or charge afee, depending on the orga-nization and state laws.

DEBTORa person who owesmoney or assets.

DEDUCTIBLE CLAUSEaclause in some insurance poli-cies requiring the insured topay the first part of each lossup to a stated amount.

DEDUCTIONan amounttaken away or subtractedfrequently used in c onnectionwith income tax.

DEEDa written documenttransferring title of realproperty from one personto another.

DEFAULTfailure to meet theterms of an agreementusually referring to failureto make payment on debtaccording to terms set upin the contract. Also refersto a judgment entered by acourt in favor of the plaintiffwhen the defendant fails toappear at the appointed courtdate.

DEFECTimperfection orflaw in a product.

DEFICIENCYshortage, par-ticularly in connection withamount of money or otherassets available to pay offa debt.

DEFICIENCY JUDGMENTajudgment for that part of adebt secured by a mortgagebut not realized from thesale of mortgaged property;an amount a debtor still owesa creditor after the dispositionof mortgaged property.

DEFLATIONdecline in pricelevel of goods and serviceswith resulting increase inpurchasing power of the dollar.

DEFRAUDto cheat by decep-tive means.

DELINQUENTa failure tomeet some obligationparticu-larly failure to pay a debt.

DEMANDfrom consumerpoint of view, the need ordesire for goods and servicesplus the willingness andability to pay for them; ineconomics, the total quantityof goods and services buyersare willing and able to buyat various prices at a giventime; in finance, the requestfor payme-rt of a debt orobligation.

DEPENDENTlegally, onewhose main financial supportcomes from another.

DEPOSITthe amount ofmoney given in partial paymentfor merchandise to reserve ituntil full payment is made;also money or property putin custody of another such asin a bank for safekeeping orinvestment or as a pledge assecurity on a debt. Demanddepositone which may bewithdrawn at any time by thedepositor without prior noticeto the bank. Time depositonefor which notice must be givenprior to withdrawal or 5t mustremain or: deposit for a setperiod of time.

DEPOSIT SLIPa printedform which provides a recordof money or checks depositedin an account.

DEPRECIATIONa decreasein the value of an item over aperiod of time due to age,wear and useappliesparticularly in valuingpersonal or real propertyfor tax purposes or insuranceclaims.

DEPRESSIONsevere declinein business activity frequentlyaccompanied by highunemployment, low production,curtailed consumer 1:ying,restricted credit, etc.

DEVALUATIONdecrease inthe value of a unit of moneyas related to gold, foreigncurrency, or other acceptedstandard.

DIRECT SELLINGa methodof selling merchandise directlyin the customer's home ratherthan at a place of businessmaintained by the sellerrefers largely to door-to-doorselling and direct mail selling.

DISCLAIMERa denial ofresponsibility for a claim,right or interest.

DISCOUNTthe amount de-ducted from an amount due;reduction from usual priceof an item or sekvice.

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DISCRETIONARY INCOMEthe income remaining afterpayroll deductions and meetingfixed and necessary expenses.

DISPOSABLE INCOMEtheincome received after payrolldeductions for social security,taxes, etc.; after-tax income.

DIVIDENDthe amount ofmoney paid out of earnings orproceeds from the sale ofproperty which is dividedamong shareholders orcreditorsusually it representsa share of profits paid inproportion to the share ofownership.

DOCUMENTin its legalsense, a written instrument con-taining facts, records, figuresand information which maybe used as proof or evidence.

DOMESTICgenerally refersto anything manufactured ororiginating in the countrywhere it is retailed, as opposedto imported goods from othercountries.

DOUBLE INDEMNITYa pro-vision in an insurance policyto pay double the agreed-uponamount for losses under certaincircumstances such asaccidental death.

DOWN PAYMENTthe cashpayment made on a creditpurchase before the creditbalance is figured.

DUE DATEthe day on whicha debt, bill or obligationbecomes payable.

DUNto make frequent andinsistent demands on a debtorfor payment of a debt.

DURABLE GOODSproductswith lasting value such ashome appliances and furniture,autos, etc. as opposed to itemsconsumed in a single use suchas food and utilities, or,over a short period of timesuch as househ;ld suppliesand clothing.

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ftEARNING POWERthe ca-pacity to earn money throughwork or investments.

ECOLOGYa study of theenvironment and relatedorganisms and life.

ECONOMIC INDICATORmeasurement of some economicactivity which is useful inevaluating the state of theoverall economy.

ECONOMIC SYSTEMthemethod by which a society dealswith the economic problems ofproduction, distribution andconsumption of goods andservices.

ECONOMICSthe study ofhow men and society choose toemploy scarce productiveresources to produce goodsand services and distributethem among various peopleand groups.

EMPLOYMENT AGENCYanorganization set up primarilyto bring persons seekingemployment together withcompanies or organizationsseeking employees.

ENDORSEto write one'ssignature on the back of anegotiable instrument inorder to transfer it to another.

ENDORSEMENTa signaturerequired on the back of anegotiable instrument totransfer it to another personor institution.

E.O.M.end of month-

EQUITYthe degree or amountof ownership in property.

ESTATEthe total propertyand other assets a person owns.

ESTATE TAXa tax leviedagainst the estate of a deceasedperson.

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EVICTIONthe dispossessionfrom property; forcefulremoval from one's residence.

!)EXCHANGEto return a pur-chase for other merchandise ofthe same value as opposed toreturning something for acash refund.

EXCISE TAXgenerally, anyselective tax levied againstthe manufacture, consumptionor sale of a product orservice. Commonly used torefer to selective taxesfrom time to time imposed bythe Federal Government onthe manufacture of products(e.g. automobiles) or the saleof certain items or services(e.g. excise tax formerlyapplied to the sale of jewelry).

EXPENDITUREthe outlay ofmoney; the spending of moneyfor goods and services.

EXPENSEany cost or chargeinvolved in maintainingone's living.

EXPIRATIONthe end of aspecified time period or dayon which something becomesineffective.

EXPORTto send merchandiseor goods out of the countryin which they originate.

EXPRESSa definite, explicitstatement not left to inference;opposite of implied; refersfrequently to guarantees andwarranties.

EXTENSIONagreement be-tween debtor and creditor,permitting a delay in the pay-ment of a debt after its originaldue date.

FACE AMOUNTthe amountof money stated on the faceof an instrument.

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FAIR TRADE PRICE(alsocalled resale price maintenance)a minimum or fixed priceset by a manufacturer ordistributor for the resale ofa product to the consumerby the retailer under a statelaw permitting such a practice.Federal law permits statesto determine if they want toestablish fair trade laws.If a state does not enactsuch a law, agreements betweenmanufacturer or distributorand the retailer as i.o theprice to be charged t'aeconsumer is illegal price fixingunder the Federal Anti-TrustLaws.

FALS.e. ADVERTISINGanyadvertising which is misleadingin a material respect, includingnot only false representationas to the benefits or resultsof using the commodityadvertised, or as to its cc,,tents,but also the failure to revealany consequences which arelikely to follow from its use.

FEEa price paid for servicesrendered, particularly bypmfessional persons, or foradmission to an event ormeeting.

FELONYa sPrious crimepunished by a sentence in astate prison, as distinguishedfrom a misdemean3r whichinvolves a lesser penalty.

FINANCE the science ofdealing with money and credit;also to proride credit to a busi-ness or individual or to obtaincredit for purchases orworking capital for business.

FINANCE CHARGEthe totalamount a purchaser must payfor the use of creditincludesall charges.

FINANCE COMPANYa com-pany in the business of makingloans to businesses orindividuals.

VINANCIAL STATEMENTauthorized statement of thefinancial condition of abusiness organizationusuallyreferring to assets andliabilities and income andexpenses.

FINEa penalty imposed bylaw and requiring paymentof money.

FIRSTHANDan item ob-tained from original owner orfrom the producer withoutgoing through a distributoror middleman.

FIXED INCOMEincomewhich is fixed in amount,neither decreasing or increas-ing for a long period of timeor permanently.

FLEECEto unfairly takeproperty or money from aninnocent and unsuspectingvictim (literally, to sheara lamb).

FORECLOSEto bring legalaction against a debtor whohas failed to pay his debtaccording to the ter= of acontract, and requiring thedebtor to forfeit whateversecurity he has posted.

FOREIGNgenerally refers toother countries but may alsorefer to other states or toother places.

FORFEITto lose as a penaltyfor failing to perform somespecific act, or to lose aspunishment for failing to paya debt as in a foreclosure.

FORGERYthe crime of falsi-fying a signature or other itemfor purposes of fraud on awritten instrument such asa check or a credit sales receipt.

FORM LETTERa standard-ized form used to answerinquiries or to makeannouncements.

FRAUDa deceitful and illegalpractice used to duprive aperson of his rights orproperty. According to law,elements in fraud are falserepresentation, concealmentof facts, knowledge of deceit, orgross :arelessness and deliberateintent to mislead.

FRINGE BENEFITany of avariety of indirect, non-cashbenefits provided to employeesby employers.

GAINars increase in cash,possessions or other resourcesusually measured at theend of a period of time suchas "annual gain:'GARNISHEEa personagainst whom a garnishmenthas been filed.GARNISHMENTa courtorder presented by a creditor toa debtor's employer requiringthat part of a debtor's wagesbe paid to a creditor becausepayments on a debt areoverdue. (Illegal in somestates.)GENTLEMEN'S AGREEMENTan informal agreementusually unwritten and basedon honor.GOODSmovable personalproperty not including livestockor such intangibles as leases;any manufactured items,merchandise or commoditiesbought and sold in themarketplace; tangible itemswhich are useful in satisfying:Aim= wants; types of goodsinclude durables which aregoods with lasting value,non-durables which areproducts with relatively shortuseful life, and semi-durableswith a useful life somewherein between durables andnon-durables.GOODWILLthe benefits andpatronage a business enjoysas a result of a fine reputationand fair treatment ofcustomers.GRADEa classification andrating of commodities andmerchandise according tospecific characteristics suchas size, quality, uniformity, etc.GRATUITYa tip or amount ofmoney given for service asin a restaurant, taxi, beautyshop and others renderingservice.GR/EVANCEcomplaint aris-ing out of dissatisfaction withservice, merchandise, etc.

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GROSSa quantity of 12 dozenor 144; a gain or loss aftersubtracting costs from gross;or entire and whole, withoutdeductions or allowancesas in gross income.

GROSS INCOMEthe total in-come before any deductions.

GROSS NATIONAL PRODUCT(G.N.P.)the total marketvalue of all goods and servicesproduced by the nation'seconomyincluding the totalpurchases of goods andservices by private consumersand government, gross privatedomestic capital investmentand net foreign investmentmeasured normally on thebasis of one year.

GUARANTEEa statementgiven the purchaser by theseller at the time of sale whichrecites certain quality orperformance characteristicsof the product and promisescertain remedial action (repair,replacement, refund, etc.)if the product fails to meetthe standard of quality orperformance for a specifiedperiod of time.

HAZARDin insurance, thedangers or risks surroundingany person or item coveredby insurance; policies usuallydefine the risks or hazardsagainst which the insured isprotected and the hazardswhich are rot covered.

HEAD OF FAMILYany per-son who maintains a fainKiunit and accepts the financialresponsibility for at leastone other person in hishouseholdusually a fatherbut may also be a womanwith ^hildren, a single personsupporting parents or otherindividual maintaining anotherperson in his or her home.

HIGH PRESSUREusually re-fers to selling techniques ofintense, strong, persuasivenature which are difficultfor customers to withstand.

HOLDER IN DUE COURSEaperson who has accepted anegotiable instrument (checkor note) in good faith.(Subject of controversy becauseholders of negotiable instrumentsor credit contracts are not heldresponsible by law for goodsor services sold under thecontract. As a result, theconsumer or buyer has norecourse to the holder if goodsor services prove to be defectiveand unsatisfactory.)

HOMESTEADgenerally thehouse and adjoining land andbuildings belonging to ahomeowner.

HOUSEHOLDgenerally afamily living together or theplace they live, be it a house orapartment; according to theBureau of the Census, theperson or persons who occupya single house, apartment,room or other dwelling unit.

ILLEGALunlawful; againstthe law.

ILLICITnot allowed by lawor custom_

IMPLIEDsomething whichmay be inferred or reasonablyexpected as a result of actionsor circumstances such asthe sale of an itemwhilenot expressed or written,the very offering of an itemfor sale is'an implication thatit is salable merchaddise andthat it is fit for the purposefor which it is intended.

IMPORTto bring goods infrom another countryalso theitem brought in.

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IMPULSE BUYINGgenerally,unplanned consumer purchasesor "spur of the moment"buying of merchandise ondisplay or on sale.

INCOMEgenerally moneyreceived from one's business,labor or investments.

INDEMNITYprotection fromloss or damage.

INDICTMENTaccusationpresented by a grand juryto a court.

INDUSTRYnon-agriculturaland non-distributive businessactivity including manufactur-ing, processing and mining;also any group of companiesengaged in the same type ofoperation or involved with thesame products such as the foodindustry, textile industry, etc.

INFLATIONan increase inprices or decrease in the valueof money resulting from anincrease in the amount ofmoney in circulation relativeto the amount of goods andservices available.

INJUNCTIONa judicial pro-cess requiring the person ororganization to whom it isissued to do or refrain fromdoing a particular act.

INSOLVENTone who isunable to pay debts andobligations.

INSTALLATIONact ofputting something in place asto install an appliance such asa washing machine, dryer orrange.

INSTALLMENTin credit, oneof a series of payments on adebt.

INSTALLMENT PLAN"closed end" type of creditarrangement in which thebuyer signs a contract callingfor payments of a specificamount to be paid at a giventime each month or week, fora given number of months orweeks.

INSTRUhMNTin law, awritten or printed document

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containing factual statementsand of sufficient authority tobe used as evidenceseenegotiable instrument.

INSUFFICIENT FUNDSstatement stamped on a checkby a bank when the accountagenst which a check is drawndoes not contain enough moneyto cover the check.

INSURANCEa way of spread-ing and sharing financial risks;an insurance policy is a con-tract in which the insureragrees to pay an agreed uponamount of money to the insuredin the event of certain financiallosses resulting from specifichazards or perils outlined inthe policy; the insured agreesto pay a set premium either ininstallments or in a single sum.

INTERESTthe price paid forthe use of money over a periodof time, usually stated as anannual percentage rate of theamount borrowed- or used.

INTERNAL REVENUE SER-VICEthat section of the U.S.Treasury Department whichdeals with taxes.

INTERSTATE COMMERCEtrade or commerce acrossstate lines.

INTESTATErefers to personwho has died without leaving avalid will or other provision forthe disposition of his property.

INTRASTATE COMMERCEtrade or commerce which takesplace within the boundaries ofone state.

INVENTORYa list of goods,possessions and property onhand.

INVESTMENTthe act ofputting money into property orsecurities for the purpose ofreceiving income or for appre-ciation in value.

INVESTMENT COMPANYfinancial institution whichaccepts shareholders and in-vests their funds in a wideselection of securities.

INVOICEan itemized list ofmerchandise or services usuallyincluding a request forpayment.

IRREVOCABLEnon-cancellable or not to be changedprior to a specified date.

ITEMIZEto draw up a de-tailed list of goods or partspurchased and services ren-dered with charges for eachas on a sales slip.

JOBan occupation; also, asingle piece of work to be done-

JOINT OWNERSHIP ORTENANCYtwo or more per-sons jointly own and holdtitle to -,-..roperty.

JUDGMENTa final ruling bya court or semi-judicial bodyafter hearing all evidence in atrial or hearing.

LABELany printed messageattached to merchandise orpented on a package whichmay identify the manufactureror seller and descrThe the prod-uct, ita contents, its origin, itsprice and provide other infor-mation related to use, care andpurchase of the item.

LABORwork; also workersas distinguished frommanagement.

LAISSEZ-FAIREa Frenchphrase meaning "to leavealone"; genera, 'y referring toa non-restrictive atmosphere

for business activity; a policyof limited government regula-tion and interference withbusiness and trade.

LANDLORDthe owner ofproperty who leases or rentsit to another person known asa tenant, for a specified periodof time at an agreed upon rateof rental.

LAPSEin insurance, termina-tion of an insurance policy asa result of failure to pay a pre-mium within a certain periodof. time.

LAST WILL AND TESTA-MENTfinal written will of aperson giving instructions forthe disposal of his property andpossessions upon his death.

I.AWbody of rules enforcedby custom, authority or legisla-tion; also any one of such rules.

LEASEcontract transferringthe use or occupancy of land,buildings, space or equipmentin return for payment in theform of rent.

LEGALset up accordirg tolaw; pertaining io 12077.

LEGAL AID SOCIETYan or-ganization set ap to providelegal counsel, advice and ser-vices to those who need thembut are unable to pay the fullcost of such services.

LEGAL OBLIGATIONdebt orpromise to perform which canbe enforced by legal meansif necessary.

LEGAL RIGHTany right con-veyed by or recognized bystatute and enforceable by law.

LEGAL TENDERany author-ized currency which may beused fcr payment of debt or tosatisfy obligations.

LEGISLATIONan act ofmaking laws; also the lawsenacted.

LIABILITYany obligationone is bound to honor; legallybound to do, to pay, to performsome act-

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LIABLEbound by law orownership; chargeable by law;also exposed to a particularrisk or hazard which is a pos-sibility; answerable to makesatisfaction, compensation orrestitution.LICENSEa non-transferablepermission to do a specificthing or engage in a particularenterprise which is subject tosome regulation by law, such asdrive a car or operate a specificbusiness.LIENa claim against prop-erty for payment of some debtor obligation.LIFESTYLEa mode of livingwhich is characteristic of anentire society or segment of asociety, referring particularlyto those qualities of a mode ofliving which distinguish thatmode from those of othergroups or cultures.LIQUID ASSETSwealthwhich can be easily convertedto cash.LIQUIDATEto convert secu-rities or other property to cash ;also to pay off a debt or obliga-tion; also to settle or dissolvea business or estate by deter-mining assets and liabilitiesand distributing assets tocreditors to cover debts.LIQUIDITYthe degree tc-which an individual or businesscan meet obligations withoutconverting fixed assets intocash.LIST AND DISCOUNT PRIC-INGa pricing system whereinmanufacturers set list pricesfrom which discounts of vary-ing percentages are allowed totheir customers under certaincircumstances.LOANusually money bor-rowed at a specified rate ofcharge for a specified periodof time.

LOSS LEADERitems sold be-low ?ost to attract customers toa store with the hope that theywill buy other items at regularprices. (Illegal in some states.)LUXURYthat which may bedesirable but is not necessary.

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MACROECONOMICSthatportion of economics whichdeals with income determina-tion, price level analysis andthe effect of fiscal and mone-tary policy on the operation ofthe economic system.MADE-TO-ORDERgoodsmade up after a customerplaces an order.MAIL ORDERorder for mer-chandise which is normallysent, received and filled bymail.MAKEa brand, type or styleof some manufactured or pro-cessed product.MALPRACTICEthe miscon-duct, incompetence or careless-ness on the /mart of professionalpersons in medicine, law, ac-counting and other professions.MANAGEMENTthe processof organizinK and utilizing re-sources to accomplish prede-termined objectives; also theact of controlling and makingdecisions in the operation of abusiness enterprise or personalor family situation ; also ad-ministrative aspect of an indus-try as opposed to labor.MANUFACTURERan organ-ization using capital, labor andequipment in the productionof manufactured items.MARKDOWNa reduction be-low the origulal price of anitem.MARKETPLACEgenerallythe arena in which goods andservices are bought and sold.MATURITY DATEthe daythe last payment in a creditcontract is due.MEANSthe financial re-sources of money, propertyand other assets.MEANS TESTa test for de-termining whether a personqualifies for welfare paymentsor charitable benefits.

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MEDICAREa governmentprogram set up to pay the costsof certain medical services andmedicines for qualified citizens.

MERCHANDISEall goods,commodities and productswhich are bought and sold bymerchants and consumersgenerally excluding foods,beverages and other items im-mediately consumed.

MERCHANTa person whobuys and resells goods andservices for profit.

METRIC SYSTEMthe stan-dard system of weights andmeasures used by most coun-tries, based on the meter andon the kilogram.

MICROECONOMICSthat por-tion of economics t7hich dealswith the relative prices ofspecific goods and the sharesof national income derived bythose who provide labor, man-agement and capital.

MISREPRESENTATIONasupposedly factual statementwhich is wholly or partly un-true or which creates a falseimpression.

MIXED ECONOMYa systemin which means of productionare largely owned privately butin which certain aspects ofeconomic activity are controlledby government ; e.g. both pri-vate enterprise and governmentshape the overall economy.

MONEYa medium of ex-change which is widely circu-lated and generally accepted asa standard of value by society.

MONEY ORDERa method oftransferring money from oneperson to another without send-ing cash ; the order is issuedby post office, bank or otheragency for the amount ofmoney specified by the buyerto be paid by another namedoffice or agency.

MOITEY RATEthe interestrate at which money may beborrowed for short-term loans.

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MONOPOLYa market situa-tion in which only one organ-ization produces the entire out-put of an industry or sells aproduct or service for whichthere is no substituteas withtelephone service in most areas.

MORTGAGEa credit arrange-ment wherein title to realproperty is pledged to securea lenn or obligation. Usuallymortgage loans are obtainedfor the purchase or improve-ment of the property whichis pledged.

MUNICIPALa term referringto a city, town, village, schooldistrict or any political divisionsmaller than state or county.

MUTUAL FUNDSsee invest-ment company.

NATIONAL DEBTa debtowed by the federal govern-ment, not including the debtsof state and local governments.

NATURAL RESOURCESpo-tentially productive land andmaterials in their naturalstate before man has utilizedthem.

NEEDSthose goods and ser-vices considered essential forliving.

NEGLIGENCEthe failure toperform some action whichcould be expected of any rea-sonable, prudent man undercertain circumstances, or thedoing of stImething which areasonable and prudent manwould not do.

NEGOTIABLE INSTRUMENTa written evidence of debtwhich may be transferred byendorsement or proper deliv-ery; examples include checks,promissory notes, some bonds,drafts.

NETthe amount that is freeand clear after necessarydeductions.NET WORTHthe excess oftotal assets over totalliabilities.NORMa model or average.NOTARY PUBLICa personlicensed to administer oathsand to attest or certify thevalidity of signatures ondocuments.NOTEa credit instrumentcontaining a written promiseto pay a sum of money at aspecified future date to anamed person, or to the bearerof the note.NUISANCEan unreasonablecr unlawful use of one's ownproperty, or unlawful personalaction which interferes withrights of others or the publicand which creates interference,hurt or damage.

OBLIGATIONa binding dutyvoluntarily assumed or imposedby contract or law; debt.

OBSOLESCENCEdecliningvalue of a product which re-sults from technological im-provements in-similarproducts, changes in publictaste and needs or other de-velopments which differ fromdeclining value resulting fromnormal wear, use and age.

OCCUPANCYthe possessionand use of property.OCCUPATIONthe employ-ment, job, trade, profession bywhich one earns a living.OLIGOPOLYa market situa-Eon in which only a few sellersof a specify _ roduct exist.OPEN-DATINGthe dating, interms consumers can under-stand, of food and perishable

items indicating either the datemanufactured or date afterwhich the quality may sufferand the product should notbe sold.OPEN-END CREDITa formof credit which provides thecustomer with a "line of credit"up to a certain amount, usuallywith the privilege of repayingin full at the end of each billingperiod and avoiding financecharges, or paying only a por-tion of the amount owed to-gether with a finance charge

..eon the unpaid balance. A re-volving charge account is agood example.OPEN STOCKa term indicat-ing that a particular productor pattern will continue to beavailable for a long period oftime and that it may be pur-chased individually as well asin setsusually refers tochina, glassware, silver, etc.

OPPORTUNITY COSTtheprocess of measuring the valueof a specific item by otheritems that could be had for thesame price; essentially theweighing of one alternativeagainst another rather thanmerely considering the cashprice or value of a specificgood or service.OPTIONan open offer,usually paid for, to buy or sell,deliver or receive, property orsecurities according to speci-fied terms for a specified pe-riod of time; a choice.ORALspoken as opposed towritten.ORDERin law, a command bya court, person or body at 1....;:or-ized to issue the command; inbusiness, a request to deliver,sell or purchase goods andservices viith the order; whenaccepted by the seller consci-cutes a binding agreement.ORDINANCEgenerally refersto local or municipal regula-tions or laws.ORIGINA L BALANCEtheamount oi a debt before anypayments are made.OU'llIAYusually refers to anexpenditure of cash funds.

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OUTLETusually refers to achannel of distribution forproducts.

OUT-OF-COURTa settlementof grievances or disputes out-side the jurisdiction of thecourtparties agree to a settle-ment directly, without courtaction.OUTSTANDINGin credit oraccounting, a debt or obliga-tion not yet paid.OVERDRAFTa check writtenfor a greater amount than thesigner has in his accountOVERDUEpast due; notpaid by the date payment is due.

OVEREXTENDEDcircum-stance in which one owes morethan he can payobligationsexceed the ability to pay.

OVERHEADcertain costs ofdoing business such as rent,utilities, equipment, which nor-mally continue at the same levelregardless of business volume.

OVERINSURANCEinsurancecoverage in excess of possibleor probable losses.

OWNERSHIPthe right of anindividual or organization tothe lawful use and possessionof its assets and property.

PACKAGEcontainer or wrap-ping in which products arepacked for shipment and/orsale.

PACKAGED GOODSproductswhich are bought and sold inprepared packages.

PACKERcompany whichprepares goods for shipmentor sale.PARTYin law, one who has apart in legal proceedingaplaintiff or defendant

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PASSBOOKa book for keep-ing a record of transactionswith a bank, savings and loanassociation or credit unionit usually includes deposits,withdrawals and interestfigures.PAWNBROKERone in thebusiness of lending money inexchange for personal propertydeposited or "pawned" forsecurity.

PAYABLEgenerally meaningdue for payment or eligible forpayment at the time designatedas "payable."

PAY-AS-YOU-GOa systemof paying costs as they ariseout of current earnings or in-come; using cash instead ofcredit.PAYMENTthe discharge of adebt by paying it; also one ofa series of payments, as ininstallment credit.PENALTYa ounishmentand/or fine resulting fromfailure to do or not to do aspecific thing according to lawor according to terms of anagreement one has signed.

PENSIONa paymentprevious services made to a re-tired employee by the govern-ment or his former employer.

PENSION PLANa plan setup by an employer, sometimeswith cooperation from a union,for making regular, systematicpension payments to retired ordisabled employees.

PER CAPITAper person.PERCENTAGEan amountexpressed as a proportion ofanother amountas per one-hundredth of the total.PERFORMANCEthe accom-plishment of that which oneagreed or promised to do; alsowith respect to products, theproper operation and functionof the product und with respectto warranties, the accomplish-ment of what has been promised5r guarantees.

PERISHABLEsubject tospoilage or c:eterioration withinrelatively short time-

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PERSONAL CONSUMPTIONEXPENDITURESthe totalmarket value of purchases ofgoods and services by individ-uals and non-profit organ-izations.PERSONAL FINANCE COM-PANYa company in thebusiness of making loans toindividualsusually to financeconsumer purchases or personalneeds ; also called small loancompany or consumer financecompany.PERSONAL INCOMEin gov-ernment statistics, total of allincome received by individualsfrom all sources as distin-guished from business income.

PLEDGEsomething of valuegiven by a debtor to a creditoras security for payment ofthe obligation_

POLICYin business, s gen-eral statement of philosophywhich governs business prac-tices; in insurance, the contractbetween the insured and theinsurer which outlines theterms and conditions anderwhich the insurance is issued.POLICYHOLDERa personwho owns an insurance policy.

POSSESSIONin law, thecustody of anythinghavingsomething in one's possessionnot necessarily owning it.POSTDATEto date some--thing such as a check with alater date than the day onwhich it is written ortransacted.POWER OF ATTORNEYtheauthorization of one person toact for another as his agentusually conveyed by a writteninstrnment commc e!ly called"power of attorney.'PREMIUMsomething givenwith a product as an incentiveto buy such as coupons, mer-chandise, etc.; also, somethingpaid as a reward or bonus; ininsurance, periodk paymentsfor an insurance policy_

PRICEthe amount of moneyasked or received for the pur-chase and sale of goods, ser-vices and property.

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PRINCIPALthe original orface amount of a loan or de-posit on which interest isusually payable.

PRIORITYthe order of pref-erence based on importance orurgencyfrequently referredto in personal, business andgovernment finance as "&e.tingpriorities" or determiningwhich needs take precedenceover others.

PRIVATE BRANDa brandsold exclusively by one dis-tributor, usually a large re-taller or chain store retailer.The products carry the distri-butor's or seller's name ratherthan the manufacturer's name.

PRIVATE ENTERPRISEasystem in which means of pro-duction are owned and operatedby individuals and prtelyowned organizations for thepurpose of making reasonableprofitsas opposed to govern-ment owned and controlledproduction.

PROCEEDSgenerally theamount gained from a transac-tion after deductions, expenses,etc. In credit, the amount ac-tually received by a borrowerfrom a loan; in insurance, theamount received by a bene-ficiary.

PRODUCTthe result or endof some process of producdonor manufacture; also manu-factured or processed items asopposed to services or to goodsand commodities in theirnatural state.

PRODUCTIONan act ofmanufacturing or creatingsomething; that part of a busi-ness devoted to manufacturingsomething.

PRODUCT TESTINGa pro-cess by which consumer prod-ucts are checked and testedbefore being sold to the publicusually during developmentstage of new r roducts; alsoprocess by which products onthe market are tested and ratedor approved by a testingagency.

PROFESSIONALgenerallyrefers to the work or servicesof an individual whose workis intellectual and/or creativeas opposed to routine or me-chanical ; also may refer to thedegree of competence anddedication one brings to a full-time occupation.

PROFITa gain, benefit orincrease in material value; inbusiness, the excess of incomeover expenses or the amountleft from total revenue afterall costs are paid.

PROMISSORY NOTEa writ-ten agreement for payment ofa certain sum of money to aspecific person or firm at aspecific time.

PROMOTIONthe activitiesdesigned to increase the saleof certain products or servicesor to improve business of aspecific store or businessorganization.

PROPERTYthat which isowned by individuals, business,organizations or government

PROSPERITYa period ofexpanding business activitywith high production, rela-tively high employment, activeconsumer spending.

PROXYone who acts for, orrepresents, another in a speci-fic situation; also the docu-ment which authorizes one toact for another.

PUBLIC UTILITYa businessengaged in supplying somepublic service such as elec-tricity, gas, telephone, trans-portation, etc.PUFFINGin advertising,subjective crr opinion-typestatements about a product(e.g. "A Sensational Value")as compared to objective claimspurporting to be based on fact(e.g. "The Lowest Price inTown".) A subjective or puff-ing statement, by its nature,cannot be measured againstobjective standards (e.g. whatis "Sensational ?" ; what is"Value ?") Objective claims canbe measured (e.g. does anotherstore have a lower price?)

PURCHASEto obtain goods,property or service in exchangefor money or credit.PURCHASERa person whobuys goods or servicesabuyer.PURCHASING POWERthecapacity of an individual orgroup to purchase, as measuredby income; purchasing powerof the dollar refers to therelative amount of goods andservices which can be pur-chased with a dollar in a givenperiod of time as comparedwith some earlier period.

QUALIFIEDfitness for aspecific purpose or assign-ment; also refers to one whopossesses the necessary train-ing, education and other qual-ifications for a particularprofession or job.QUALITYa degree of excel-lence or fitness; attribute orcharacteristic of a product;grade or kind of productQUANTITYan amount inweight, size, number or othermeasurement

RACKETan illegal business;fraudulent scheme for gettingmoney.RATE OF INTERESTan an-nual percentage of the amountcharged for the use of moneyover a period of time.RAW MATERIALSthe goodsin a natural or unmanufacturedstate which are used in or forproduction.

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READY-MADEmade ormanufactured in final state tobe sold to the general publicas opposed to products made tomeet specifications of specificbuyers.REAL ESTATEreal propertyincluding land, buildings andstructures on the land.REALTORa real estatebroker or salesmanusually amember of a local associationaffiliated with the NationalAssociation of Real EstateBoards.REBATEa deduction for aspecified amount, charge orpayment, returned after theamount, charge or paymentis made in full.RECEIPTaztvritten acknow-ledgment of liaving receivedsomething of valuemoney,payment, merchandise, service.RECESSIONthat phase z1the business cycle which showsdeclining business activities inthe economy.RECOURSEin law, a person'sright to recover damages orcollect debts and obligationsusually backed by the powerof a courtRECOVERYthe period of abusiness cycle followIng a de-pression ; an upswing or expan-sion in business activity; theregaining of something ofvalue or its equivalent inmoney.REDEEMto regain posses-sion of something or gain therelease of an item pledged assecurity when an obligationis fulfilled.REDRESSto make an adjust-ment in a grievance betweenbuyer and seller.REFUNDa repayment ofmoney, usually in the casewhere it ought not to have beencollected, or charges as in anovercharge; return of purchaseprice as an adjustment undera warranty or store igblicy.REMEDYin law, the pre-scribed way in which a rightmay be enforced; also, therelief to which an aggrievedperson is entitled.

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REMITTANCEan amount ofmoney sent from one person toanotherusually in paymentfor some goods or servicesreceived.RENTto possess, use or oc-cupy under the terms of alease; also the amount paid forright to possess, use or occupyproperty or equipment.

REPAIRto restore damagedor unworking property or prod-ucts to good working condition.REPOSSESSgenerally to takeback or recover goods from apurchaser who fails to pay forthem according to the terms ofa contract.RESALEthe second sale ofonce-sold goods when the firstsale is incomplete because ofdefault or some other failureto fulfill terms of the salecontract; also, the sale of goodsby one purchaser to anotherfurther down in the distribu-tion system (e.g. a retailer buysmerchandise from a manufac-turer for resale to the con-sumer, rather than for his ownuse and consumption.)RESCINDto cancel or annula promise, agreement, sale orpurchase.RESERVESmoney or fundsset aside to deal with expectedor unexpected financialdifficulties.RESIDENCEthe place inwhich a person lives.RESOURCEwealth or ameans of obtaining wealth ora source of revenueincludestime, energy, equipment, abilityas well as financial wealth;also used in merchandising torefer to the producer or othersupplier of goods to retailsellers.RETAILthe business of sell-ing for useto consumers asopposed to sale for resale, suchas sale; by wholesalers, pro-ducers or manufacturers.RETAILERan individual ororganization in the business ofselling goods and services atretail or to consumers.

RETAIL STOREa businessestablishment engaged in sell-ing to consumers or householdsbut not including catalog ormail order sellers or door-to-door sellers which are con-sidered direct selling non-storesellers.

RETIREMENTthe with-drawal from business activity,usually as a result of age or offulZilling a specified numberof years working for a companyor organization.

RETURNthe yield, profit orearnings from sale or invest-ments ; also merchandisebrought back by a customerfor a refund or =change.

REVENUEgenerally refersto the total income of a govern-ment or a business from sales,taxes, fees and all sources.

REVOLVING CREDITseeopen-end credit.

RIDERan addition to a docu-ment, as in insurance policies,with clauses added to increaseor limit coverage or otherwisealter the basic document.

RISKan element of uncer-tainty or possibility of loss;in insurance, the estimatedamount of loss possible andprobable from a specific hazardor danger.

RUBBER CHECKa badcheck, returned by the bankbecause the account of thewriter of the check does notexist or does not contain ade-quate funds to cover theamount of the check.

SAFE DEPOSIT BOXa boxin the vautt of a bank or safedeposit company rented tocustomers for storing valuableand important documents andpapers.

SALARYthe money paid forservices performed in a job.

SALEthe transfer of goodsfrom seller to buyer in ex-change for money in theamount of the price of goodsor services purchased ; alsorefers to special selling atreduced prices.

SALES FINANCE COMPANYa business engaged in pur-chasing the accounts or notesreceivable of other businessesand then collecting the amountsdue on the accounts or notesboughtSAMPLEa trial amount; arepresentative specimen ofother like products.

SAVEto set aside or safe-guard for future use ; in ad-vertising, a claim of reducedor lower prices.

SAVINGSgenerally moneyset aside for specific purposessuch as to use in the future, tooffer security against financialrisks or to earn money in theform of dividends or interestSAVINGS AND LOAN ASSO-CIATIONan institution setup to make loans, usually forthe purchase or improvementof real estate, and to offer in-centive to members for saving.

SCARCITYa shortage; aninadequate supply to meetdemand for a given item ata given time.

SEAL OF APPROVAL ORCERTIFICATIONa sign orattachment to a product in-dicating that it meets the stan-dards and requirements of theorganization issuirig the seal.

SEASONALrefers to goodsthat reach a peak in demandand supply at specific timesduring the year.

SECONDa product belowstandard quality for a particu-lar product or its manufac-turer; sometimes called"irregular" and implyingminor flaws or imperfections.

SECONDHANDused pre-viously; not new.

...SECURITIES EXCHANGE& market in which stocks andbonds may be bought and sold.

SECURITYa stock, bond,note, debenture or other docu-mentary evidence of debt orownership of a corporation orbusiness organization; some-thing of value pledged.

SELLto transfer goods orperform services for a price.

SERVICEwork performed tomeet the needs of those buyingthe work such us public util-ities, repair work, personalgrooming services, transporta-tion, drycleaning maintenance;also includes professional ser-vices of teachers, lawyers,doctors, accountants, etc.

SERVICE CHARGEa feeadded to the price of goods orservices for some added ser-vice connected with the salesuch as delivery, credit,installation.

SERVICE LIFEthe length oftime a piece of equipment is inservice or used for its purpose.

SETTLEto pay off a debt orobligation.

SETTLEMENTan agreementfor the disposal of an obligationor property.SHOPa place in which goodsor services are sold; also theact of shopping for goods andservices one intends to buy.

SHOPPING CENTERa num-ber of retail stores and servicebusinesses grouped in a singlelocation for shopping andparking convenience.

SHYSTERrefers to any per-son who runs a dishonest, dis-reputable business a.ad also toa dishonest, unethical lawyer.SIGNATUREgenerally a per-son's own name in his owriting on a document or in-strumentlegally binding inmost cases when signed to acontract or legal document

SMALL CLAIMS COURTacourt which deals primarilywith claims not exceeding a

specified maximum such as $50or $100usually set up to han-dle such cases promptly andinexpensively, with a minimumof formality.

SOCIAL INSURANCEanytype of insurance sponsored bygovernment for the protectionof large groups of the publicagainst specified hazards.

SOCIALISMan economic sys-tem in which the basic meansof production are primarilyowned and controlled collec-tivelyusually by governmentunder some system of centralplanning.

SOCIAL SECURITYa gov-ernment insurance programwhich provides benefits toqualified individuals undercertain conditionsincludesold age and survivors' insur-ance, unemployment insurance,disability coverage and somemedical insurance includingMedicare.

SPECIALISTa person trainedand skilled in a particularfield.

SPECIFICATIONSa detailedoutline of all elements and fac-tors involved in a matter, aproduct, or a job to be done.

SPECULATIONgenerally theact of putting money into somesecurity or company or schemewith the hope of quick, sizeableprofitusually involves a sig-nificant degree of risk.

STANDARDany establishedmeasure commoaly understoodfor comparing similar productsin terms of size, weight, con-tent, performance, specifica-tions, etc.

STANDARDIZATIONthe set-ting of basic standards orspecifications which productsmust meet, (e.g. the standardiza-tion of bolt sizes so that anexact replacement can be ob-tained, regardless of who makesit and where purchased.)

STANDARD OF LIVINGaneconomic term referring to the

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generally accepted amounts ofgoods and services which alarge group considers essential.

STATISTICSthe sciencesconcerned with collecting .analyzing, classifying andinterpreting information andexpressing it in numerical orquantitative terms; also, thenumerical and quantitativefacts presented.

FTATUTEa law.

STOCKa share in the owner-ship of a corporation ; also,merchandise for sale in a stare.

STOCK CERTIFICATEwritten evidence of ownershipin a corporation.

STOCKHOLDEWone whoowns shares of stock in acorporation.

STOCK MARKETan ex-change or place where stocksare bought and sold.

STOP PAYMENTan order bya person to a bank in whichhe has an account to refuee tohonor a check the person haswritten.

SUEto take legal actionagainst another party to settlegrievances or disputes.

SUITlegal proceedingsbrought against one person byanother in court to correct awrong, settle a claim or en-force a right.

SUPERMARKETa large re-tail store selling a wide varietyof goods and some services butprimarrly in the area of foodsand household supplies andfurnishings.

SUPPLYthe amount of goodsand services that will be avail-able for sale at various pricesat stated times.

SWINDLEto cheat or de-fraud; to conduct businessunder false pretenses orfraudulently.

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TAGa label or ticket onproducts for saleusuallygives product information ofone type or another.

TAKE-W: ..1E-PAY----the wagesor eaceived after neces-sary de '1.-ztioaz for withhold-ing taxes, social security,welfare benefits, etc.TAXthe payments collectedfrom persons, business orproperty by a government au-thority, primarily for thepurpose of running thegovernment.TAXPAYERone who paystaxes.TENANTone who occupiesor uses property of anotherunder the terms of a lease orother agreement; also calleda renter.TERMa period of time ; also,a condition, limitation or speci-fication as in the "terms" of acontract ; also, a type of lifeinsurance.THIRD PARTYa person whois involved in a contract, actionor occurrence but is not aprincipal party..TIPa gratuity or paymentgiven for personal service asin a restaurant, taxi, barbershop, beauty shop or otherplace one receives personalattention in excess of theprice for services.TITLEa document of evi-dence of an owner's right tohis possessions and property(e.g. land title, automobiletitle.)TRADE ASSOCIATIONanorganization of business firmsin the same or related fieldsformed for the purpose ofpromoting their common in-terests and working together onnon-competitive subjects suchas standardization, consumerprotection, etc.

TRADE-INa product offeredand accepted as partial pay-ment in the purchasing ofanother productcommonlydone in purchase of automo-biles and major appliances.

TRADEMARELan identifyingname, symbol or design whichsets a manufacturer's or dis-tributor's product apart fromsimilar products of competitors.

TRADING STAMPSa formof buying incentive whereincustomers are given stampswhich represent a small por-tion of the amount of eachpurchase (2% or 3%) andwhich way be exchanged formerchandise or cash when aspecified number of stampshave been collected.

TRANSACTIONan agree-ment between two or moreparties creating a legal obliga-tion or rightfreqnently in-volves sales, loans, leases orother business agreements.

TRUSTan arrangemenfinwhich one person or organiza-tion such as a bank is namedtrustee to hold property for theuse and benefit of another,the beneficiary.

UNFAIR TRADE PRACTICEany business practice which isconsidered unethical or illegal.

UNIFORM COMMERCIALCODEa combination of uni-form laws affecting businessactivities, set forth by theNational Association of Com-missioners on Uniform StateLaws.UNIFORM CONSUMERCREDIT CODE (UCCC)a proposed plan whereby allstates would have similar oruniform credit lawsmust beaccepted by state legislaturesto be applicable in each state.

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UNIFORM LAWone of anumber of laws proposed forand adopted by many states toachieve similar laws in thestates and avoid confusionover the legality of specificactivities.

UNIONan organization ofemployees or workers forzn'-:dto deal collectively with em-ployers on employment issuessuch as wages, hours, fringebenefits, working conditions,etc.

UNION RATEa stan-.1ardwage-per-hour or per-piece-of-work as set by a union agree-ment with employers.

UNIT PRICEthe pricing ofproducts by a single unit ofmeasure, or volume as price perounce, per quart, per foot, etc-

UNPAID BALANCEdiffer-ence between purchase priceand down payment; also, totalamount left to pay.

UNSECUREDgenerally onsignature alonenot backedby collateral or pledge ofval uables.

USURYexcessive charge forthe use of moneya chargeover and aboire that which ispermitted by law in a particularstate.

VALIDlegally sufficient.VALUEthe worth of goodsand services expressed inmoneythe price a thingwillbring.

VALUE RECEIVEDthe worthof goods and services relatedto the price paid for them.

VENDORa seller.VERBALoral, in spokenword, unwritten.

VERIFICATIONthe processof investigating and document-ing the truth of a statementor claim.VOIDinvalid, not binding,unenforceable.VOUCHERa receipt or writ-ten evidence of payment orreceipt of money.

WAGESthe income receivedor paid in exchange for labor.WAGE ASSIGNMENTanagreement signed by a debtorallowing the creditor to collectpart of the debtor's wages fromthe employer if payment is notmade according to terms ofthe contract. (Illegal in somestates.)WAITING PERIODin in-surance, the period of timebetween the occurrence of adisability, unemployment, oraccident, and the date an whichpayments are made ; in con-sumer buying, the period

allowed by law for a buyer tocancel a purchase withoutpenaltyrefers primarily todoor-to-door selling.WAIVERany intentionalrenunciation or giving up of aright, claim or interest.WANTto desire, wish or de-mand the use of goods andservices.WARRANTYa statement ofmanufacturer or seller of aproduct or service concerninghis responsibility for quality,characteristics and perform-ance of the product or service;used interchangeably withguarantee.WAYBILLa written listingand description of goods in-cluded in a freight shipment.WEAR AND TEARthe de-terioration and depreciation ofproperty or equipment whichresults from ordinary useand aging.WEIOLESALEthe selling ofgoods in large lots or bulk to aretailer for resale at retailprices to consumers.WILLa document by whichan individual directs the dis-tribution of his property andpossessions to others upon hisdeath.

WILL CALLa way of buyinggoods in which the buyer leavesa deposit or part payment forthe goods and the merchandiseis set aside until full paymentis made, at which time goodsare conveyed by the seller tothe buyer; also called "layaway plan."

WINDFALLan unexpectedgain or income.

WITHHOLDINGtaxes paidfor an employee by his employerand then withheld from theemployee's salary or wages.

WORTHthe value of some-thingparticularly expressedin money or market value-

WRITa mandatory preceptissued by a court of law requir-ing the performance of aspecific act.

YIELDpercentage of a returnon an investment.