Your $$ & Social Media
Regularly review and cancel subscriptions that are no longer needed or used
4. What are the six ways of influence?
Authority, Commitment and Consistency, Social Proof, Reciprocity, Liking, Scarcity.
3. Sean wants to buy a new backpack for school. What factors should he be concerned about when comparison shopping?
The PRICE of the backpack, The QUALITY of the backpack, REVIEWS left by other consumers.
6. How do companies use the practice of retargeting to get consumers to spend more money?
Displaying ads for products consumers have previously viewed or shown interest in to encourage them to make a purchase
5. What is TRUE about recent trends in identity theft?
Multiple large organizations have experienced data breaches that have leaked consumer information
7. Zach receives a notification from the IRS that he owes money. What indicates that the notification is real and not a scam?
The IRS sends him a formal letter in the mail notifying him of taxes he owes
2. Influencers can have a direct impact on consumers’ financial habits because they typically...
Rate and review products that their followers are likely to purchase
9. What is an example of the Roach Motel dark pattern?
A website automatically signs you up for a paid subscription when you create an account but there is no easy way to cancel it
10. Why is it a good idea to make specific purchases during specific times of the year?
Items may be on sale during certain holiday seasons which can lead to significant savings
8. What BEST describes ethical consumerism?
Choosing products from companies that use Fairtrade practices
13. How might freezing your credit help you protect your personal information?
Your credit information is blocked to help prevent someone from opening accounts in your name
15. What is a pyramid scheme?
A type of scam in which payments from lower-level, recruited employees are pushed to higher-level employees
12. What are ways to use social media more mindfully?
Make a budget and use it to track and adjust your spending from social media
Unfollow or mute accounts that encourage you to spend more money than you’d like
Delay the act of purchasing by adding something you’d like to buy from social media to a “wish list”
17. Josefina sees an ad on social media featuring a doctor who is promoting a new type of energy drink. The doctor cites her credentials and experience saying, “I’ve been working in the industry for over 20 years. Buy this product!” Which of the six ways of influence is being used in this ad?
Authority
20. What is a potential benefit of comparison shopping?
You are more likely to find a product that best fits within your budget
11. What is an example of a hidden fee?
A service charge added to a hotel bill that was not disclosed upfront
19. What does it mean if a fraudster accessed your personal information through phishing?
The fraudster tricked you into revealing personal information through email, texts, or other electronic communication
21. Sofia receives a text message from her bank. What indicates that the text may actually be a scam?
The text message has a few spelling errors in the body of the text
The text message includes a link that starts with “http”
The text message indicates that she will lose a significant amount of money if she does not respond within 1 hour
18. What does social media influence consumers to buy the MOST of?
Clothing or accessories
23. What most accurately defines a dark pattern?
When design features trick users into doing something that benefits the business
27. Describe a situation in which it makes sense for someone to comparison shop and why.
Comparison shopping provides benefits such as:
● Finding a product that fits within your budget
● Finding discounts and deals on products
● Reading reviews from other users
● Finding products that best meet your needs and wants
14. Isaiah is shopping for a new pair of jeans. What is one step he can take to make an ethical purchase?
Researching brands that use sustainable materials and fair labor practices
16. Sean received a notification that his information was compromised and he is likely a victim of identity theft. Sean should take what steps?
Place an extended fraud alert or security freeze on his credit
File an identity theft report with the Federal Trade Commission
Enable Two-Factor Authentication on his accounts for added security
Three days ago, Niko used his credit card to buy a new jacket he found through a social media ad. He still has not gotten a receipt of payment or confirmation email regarding the purchase and he’s starting to suspect he was scammed. What is the next BEST thing Niko should do?
Report the fraudulent charge to his bank and ask them to reverse the transaction
26. Identify TWO ways social media can influence you to spend money.
Social media ads and marketing that encourage you to spend money
Following influencers who promote products or services
Trying to keep up with what other people seem to be doing or have through their posts (FOMO)
28. Winston wants to cancel a paid subscription that he accidentally signed up for as a result of a dark pattern on a website. While it took him only a minute to sign up, he’s having a difficult time canceling his subscription. What are TWO costs Winston might pay if he’s not able to cancel his subscription soon?
He might have to spend time and energy contacting the company to cancel
He may continue to receive unwanted emails and other marketing messages until he is able to cancel
He will continue to be charged for the subscription until he can cancel
30. Why might someone fall for a scam even if they are aware of the common signs or red flags?
Emotions like fear, a desire to help others, etc. can convince someone to fall for a scam
Fraudsters are always changing how they are targeting victims, so someone may not be aware of the most recent tricks and trends that fraudsters are using
29. Explain one challenge a consumer may face when trying to make an ethical purchase.
They can make an ethical choice in one area (workers conditions, environmental impact, etc.) but unwittingly cause a problem in another
It can be hard to find all the information they need about when, where, and how a product was made and in what condition
Ethically produced products are often much more expensive which may not fit into some consumers’ budgets
24. What’s an example of someone doing a POOR job of protecting themselves against identity theft?
David: “I use the same login credentials for all my bank accounts to keep my finances organized together.”
25. The two major signs of a scam are a request for personal information and ___________.
An urgent need for money