DOCUMENT RESUME

ED 120 072 SO 008.975

TITLE Guidelines for . Revised. INSTITUTION Illinois State Office of Education, Springfield. PUB DATE Apr 72 NOTE 69p.

EDRS PRICE MF-$0.83 HC-$3.50 Plus Postage DESCRIPTORS Class Activities; Consumer Economics; *Consumer Education; ; Credit (Finance); *Guidelines; *High School Curriculum; Investment; Money Management; *Program Planning; Purchasing; Secondary Education; Social Studies; State Curridulum Guides; Taxes IDENTIFIERS Illinois

ABSTRACT This guide is intended to assist school personnel by clarifying issues, provide directions in basic information, and stimulate practical considerations for the learner in the area of consumer education. Its objectives are to (1) assist school administrators in the implementation of consumer education, and (2) assist secondary teachers in planning an instructional program in consumer education that meets studentsneeds. An introduction offers a rationale and objectives. Procedure3 for implementation cover content, responsibility, time allotment, certification of teachers, and methods of implementation. Consumer education topics that are identified are the individual consumer and the marketplace, money management, consumer credit, buying goods and services, insurance, savings and investments, taxes, and the consumer in society. The discussion of each topic includes objectives, outline of content, suggested activities, and instructional materials. A resource section contains listings of selected bibliographies and other sources of consumer education information. Although written for Illinois educators, the content and instructional programs suggested in the guide are adaptable to any school. (Author/ND)

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GUIDELINES FOR CONSUMER EDUCATION

April 1972

OFFICE OF THE SUPERINTENDENT OF PUBLIC INSTRUCTION

Michael J. Bakalis, Superintendent

2 FOREWORD Numerous changes have been made in this first revision vidual learner. This emphasis grew out of successive con- of the Guidelines for Consumer Education. These changes siderations of the interrelationships of the individual and his reflect recent thinking, discussions, and observations of role in society as a person. The intent is to provide guide- innovative approaches to the teaching of consumer educa- lines which will have a wide usefulness. Based upon the tir;i. There is no effort in this edition to disclaim the great assumption that effectiveness will ultimately be determined contributions of previous writers; only to build upon the ini- in the personal fulfillment of needs of each learner in the tial publication efforts so that we do not continue in the vein classroom, objectives and goals are person-related. of how "it was done," but to encourage schools to flourish It is impossible, in a publication of this nature, to ac- in terms of the, future. The guide is offered in an effort to knowledge all the sources from which assistance has been stimulate the competent to work toward sustained philo- received. Special apps eciation is due not only to the con- sophical and practical efforts in the area of consumer edu- tributors who are acknowledged, but also to credit the cation. more remote influences of countless others whose ideas There is no easy way. We must continue to have regard and dedication are reflected. I am deeply aware of my debt for the existent organization of subject matter and be flexi- to many colleagues for their invaluable aid in the prepara- ble enough to continually reappraise and add new content tion of this publication. The revised edition is intended to as it is necessary. The challenge for teachers and adminis- assist all school personnel by clarifying issues, provide trators is not through simplification, but in attacking those directions in basic information, and above all to stimulate issues which are a bit more difficult. In general, the aims of practical considerations for the learner in the area of con- the guide are to reinforce and expand the substantial body sumer education today. of well-established knowledges as they relate to consumer education, and further to embody the concepts of environ- mental issues. Michael J. Bakalis Careful attention has been given to the needs of the indi- Superintendent

3 USE OF GUIDE The broad objectives of this guide are twofold; first, to consideration is given to an expansion and updating of the assist school administrative personnel in the implementa- consumer education topics including environmental issues tion of the mandate concerning consumer education as relating to each appropriate consumer education unit. In- outlined in The School Code of Illinois; and secondly, to creased emphasis is placed upon student activities which assist teachers in planning an instructional program in reflect the variant economic and ability levels of students. consumer education which meets the needs of the stu- Whenever possible, students should be involved in the dents. suggested activities. Selected annotated teacher/student Although instruction in consumer education has been references are identified at the conclusion of each unit. taught as an integral part of different subject matter areas Listings of selected bibliographies and other sources of in the school curriculum for many years, Senate Bill 977 consumer education information and materials from which now requires that all students in the public schools in a wealth of information may be obtained are included in the Grades 8 through 12 meet minimal instructional standards Resource Section of this publication. No attempt is made in consumer education. to include a comprehensive bibliography of consumer edu- The format used within this publication is similar to that cation mati4i;als. There are also many other excellent ma- of the 1968 edition. The content is reorganized, and further terials available. CONTENTS

page Foreword II I Use of Guide V

Introduction 1 Legislation 1 Rationale 1 Objectives 1 Procedures for Implementation 3 Content 3 Responsibility 3 Time Allotment 3 Certification of Teachers 3 Methods of Implementation 3 Consumer Education Topics 7 The Individual Consumer in the Marketplace 7 Money Management 10 Consumer Credit 13 16 Food 19 Transportation 22 Clothing 26 Health Services, Drugs, and Cosmetics 31 Recreation 34 Furnishings and Appliances 36 Insurance 39 Savings and Investments 45 Taxes 48 The Consumer in Society 51 Resources 57 CONSUMER EDUCATIONTOPICS

The IndividualConsumer in theMarketplace Money Management Consumer Credit :-.14Buying Goodsand Services Housing Food Transportation Clothing Health Services,Drugs, and Cosmetics Recreation Furnishings andAppliances Insurance Savings andInvestments Taxes The Consumer inSociety INTRODUCTION There is a growing awareness in the State of Illinois of The Office of the Superintendent of Public Instruction, the need to increase the degree of economic literacy in the therefore, has adopted the following definition of consumer public schools in order to provide students with an under- education which serves as a basis for the materials and standing of the functioning of our private enterprise system suggestions contained in this publication. and how this affects individuals as income producers and Consumer education is the development of the individual . in the skills, concepts, and understandings required for everyday living to achieve, within the framework of his Legislation own values, maximum utilization of, and satisfaction To develop more informed and effective citizenship with from, his resources. personal economic competence, the Seventy-fifth General One of life's most important problems is the managing of Assembly passed and the Governor approved Senate Bill personal economic affairs and knowing how to maximize 977 which amends The School Code of Illinois (Section 27- satisfaction from the level of one's income. To do this, stu- 12:1) requiring that: dents must understand fully that the basic ingredient of "Pupils in the public schools in grades 8 through 12 shall economic competence is the wise use of resources as one be taught and be required to study courses which in- chooses a job, earns, spends, saves, borrows, invests, and clude instruction in consumer education, including but plans for the future. Natural and human resources, as well not necessarily limited to installment purchasing, bud- as capital goods, are used to meet the needs and wants of geting, and comparison of prices." the consumer. Our economy is constantly changing, due in large part to Rationale its continuing development of new products, services, and The general concept of consumer education is prepara- methods for meeting the changing needs. In our economy, tion for wise and responsible citizenship. Students should we are free to exercise choice among many alternatives in be made to feel that they are "living" now as truly as are both earning and spending. Our ability, in the United adults; that their school is helping them live now more re- States, to produce quantities of goods and services has wardingly; and that with each day and with each dollar they raised the level of living of the average consumer far be- spend they are learning to build a better future for them- yond that of most of the rest of the world. This is true even selves and for others. Students need to explore, think though we have unemployment and poverty in our society. about, and discuss what they want for others as well as for themselves. Young people today, perhaps as never before, Objectives have a real need to understand social values. They need to At the core of consumer education is the student, who 1 understand and appreciate the democratic processes. looks at himself and sees what he wants out of life and how

71 he can most effectively attain his goals. Essentially prob- economy. lem-solving, consumer education objectives include help- Since everyone is a consumer all of his life, it is ex- ing students: tremely important that schools provide education that will enable students to be informed and conscientious buyers * To become an of those goods and services needed. Itis becoming in- * To understand the role of the consumer in our society creasingly important for people to know how to get their * To develop a sound decision-making process based money's worth. Youth must be given adequate instruction upon one's individual goals and values in the handling of real life problems necessary to de an in- formed citizen. Our youth, as members of a private enter- * To utilize resources to facilitate greater satisfaction in prise system, must have economic understanding in order making consumer decisions to meet the economic problems which occur daily both in * To understand the rights and responsibilities of the their individual lives and in their government. consumer in society The attitude of teenagers toward and their skill in man- To have the greatest impact, consumer education con- aging money will affect every area of their lives. They will tent and presentation must be oriented to students' current face many important consumer economic decisions in the concerns and to the recognizable interests of themselves years ahead when getting an education, choosing a career, and their families. When this is done, students readily learn starting a marriage, raising a family, paying taxes, and that consumer decisions must be based upon factual engaging in a variety of other activities. Consumer educa- knowledge and the application of basic economic princi- tion is preparation for living.It is setting goals and deter- ples. mining how time, money, and energy will be spent to reach Many teenagers have parttme jobsthey are wage those goals. earners. Thus, there is urgent need to educate boys and Consumer education is a lifelong process, but today's girls alike, at all socioeconomic levels, on how to make students need to be given direction in order to start on the intelligent decisions regarding their personal financial af- right road. fairs. Given effective consumer education, students will be Consumer education implements the objectives of gen- prepared to face and solve real life problems. They will eral education, namely, "to foster individual fulfillment and make more intelligent consumer decisions which, over nurture free, rational, and responsible men and women, time, will prove helpful to themselves and to the general without whom our society cannot endure."

2 PROCEDURES FOR IMPLEMENATATION

Content Grades 8 through 12 as prescribed in Section 27-12:1, of The three areas specified in the law have been expanded The School Code of Illinois are given 60 days to respond to to the consumer education topics included within this pub- the Recognition and Supervision Section as to intent re- lication. For a comprehensive educational program, itis garding how and when to implement the appropriate pro- suggested that the consumer education curriculums en- gram. compass these topics. The total consumer education pro- Time Allotment gram should lay the foundation for understanding one's role as a consumer and relate basic concepts to individual The Superintendent of Public Instruction in fulfilling the action. responsibility required in the legislation, specified that a minimum of three weeks or fifteen class periods be devot- Responsibility ed to each topic stated in the law. (Installment purchasing, Inasmuch as instruction in consumer education is man- budgeting, and comparison of prices.) dated by the State of Illinois, all students In the public The minimum program recognized under the law and by schools in Grades 8 through 12 must participate in this this office consists of nine weeks of instruction (45 class educational program. The means of implementing Senate periods, a period consisting of 50 minutes) or the equiva- Bill 977 rests with each local school district; therefore, lent. each school district has the opportunity to develop instruc- Certification of Teachers tional programs relevant to the needs and the individuali- ties of the students and of the community. However, com- Teachers of consumer education shall have proper certi- pliance must be met in terms of minimal recommended fication for the position to which they are assigned. The standards. specific requirement is at least three semester hours in It is the responsibility of the superintendent of each consumer education or consumer-related courses. Appro- school district to maintain a file documenting that each priate college and university courses may be found in the student has received adequate instruction in consumer areas of education, business education, education as required by law: social studies, and agriculture. It is recommended that the district encourage teachers to participate in in-service Installment Purchasing education programs which are offered throughout the State Budgeting by this office and colleges and universities. Comparison of Prices

. .. prior to the completion of the 12th grade. Schools not Methods of Implementation providing a consumer education program for all students in 9In developing a program in compliance with Section 27- 3 12:1, of The School Code of Illinois, consumer education I. Existing Courses may be included in the secondary school curriculum at any First, it is possible to use courses currently within the grade level. There may be some advantages in placing the curriculum to meet the consumer education requirement. required instructional program at the eleventh or twelfth A school might decide, for example, that one or more of grade level because of the emotional and intellectual matu- the following courses would be appropriate and, thus, a rity of the students. On the other hand, the need for the requirement of all students. (The assumption is that these understandings developed in consumer education might be courses meet the content and time requirements.) just as great, or greater, for eighth, ninth, and tenth grade General Business students, some of whom for a variety of reasons do not Consumer Economics complete their secondary school education. Consumer and Homemaking The most important elements to consider are the inter- Family Living est, qualifications, and enthusiasm of teachers selected to EConomics instruct in the consumer education program. The teacher and his creativity and flexibility will determine the success of the program. II. Separate Course Many factors influence school personnel in curriculum A school might develop a specific course devoted to planning and development, and it is suggested that special consumer education and require that all students take this consideration be given to the following items: course. The course could be offered for one or two semes- ters. The local district could decide, for example, that all Courses currently included in the curriculum that con- students must complete a one-semester course in con- tain substantial instruction in consumer education sumer education during the sophomore, junior, or senior Other requirements for graduation year. An existing required course might be selected as the Complexity of school schedule appropriate offering to meet the consumer education re- Emotional and maturity levels of students quirements and use at least nine weeks of the course for consumer education. Number of nonterminal students If a separate course in consumer education is offered, Unique needs of students the difficulty obviously lies in adjustments to the cirriculum, Special factors within the community as a whole, as well as in obtaining teachers for the course. The approach to the design of such a course is critical In an effort to provide school personnel with possible because the course must be pertinent to the everyday liv- alternatives for integrating consumer education into an al- ing situation of the particular student group. The teacher, ready overcrowded curriculum, four basic plans are de- must be constantly on the alert to changing conditions andl scribed: 0problems that affect consumers. 4 III. Integration Implementation by means of an integrated approach Consumer education may be integrated into all (or se- should involve a review of faculty competencies, which lected) subject areas. Although this approach has great may necessitate scheduling adjustments in order that merit, it must be meticulously planned and executed. Per- knowledgeable and capable faculty members may ex- sonnel at the administrative level should make certain that change instructional time for the purpose of teaching the all teachers and all classes become involved in teaching various consumer education topics in classes to which consumer education. Under such a plan it is obvious that a they are not ordinarily assigned. coordinator is needed for each school. Under this integrat- ed approach, each department or subject area would use IV. Team Teaching instructional materials of a consumer education nature. A popular approach many schools are using is team For example, in appropriate business courses, students teaching or a variation of team teaching. Examples of dis- might study about insurance and investment programs; in ciplines which may be involved in using this approachare home economics education, the purchase and use of con- business education, home economics, industrial arts, sumer goods; in mathematics, the calculation of credit mathematics, and social studies. Teachers representing costs; and in English, the current publications of consumer these areas may come together and share their expertise, interests; etc. While the details of planning such an ap- . experiences, resources, and viewpoints through coopera- proach are extensive, it can be an effective manner of de- tive planning and teaching sessions. Such a procedure veloping consumer education competencies. should insure, insofar as possible, the development ofa strong, comprehensive consumer education program.

1 1

5 CONSUMER EDUCATION TOPICS

THE INDIVIDUAL CONSUMER our wants. By becoming an informed consumer, everyone IN THE MARKETPLACE should learn to derive the greatest satisfaction from their limited resources. The increasing complexity and size of the marketplace requires that consumers become better informed about Objectives both personal and public policy economics. People under To help students: twenty-one years of age represent a major spending force. These people should know "how to buy"how to use * recognize the uniqueness of each consumer sources of information, compare prices, identify value, and * understand the factors which affect decision. making avoid fraud and deception. Also, with the right to vote at * recognize law and its relationship to the consumer in age eighteen, it is especially important that each individual the marketplace realize that he plays an important role in our economy and * understand the rights and responsibilities of the con- that knowledge in matters of personal economics can sumer in the marketplace greatly affect his welfare. Education about business and economics often is from * recognize and avoid fraudulent and deceptive busi- the "producer viewpoint." In today's economy, the con- ness practices sumer's influence is increasing. Uninformed consumers * recognize the need for practical experience in the may encourage undesirable products and practices which marketplace affect everyone. On the other hand, informed consumers * identify the criteria and sources of information avail- may demand that business enterprise provide quality prod- able ucts and services. Each citizen needs to know that the laws give him both * recognize common consumer problems and pitfalls rightg and responsibilities inhis business dealings. He should learn to make informed choices by knowing and Outline of Content using sources of consumer information. While the majority 1. Identifying the consumer of businessmen are honest and fair, there are some un- User of goods and services scrupulous businessmen who take unfair advantage of Decision maker customers. If the consumer falls prey to the dishonest Individual in relation to the family businessman, he should know how to obtain appropriate Consumer in comparison with the producer help. 2 Consumer in relation to the seller Few 5t us have ample resources necessary to satisfy all Consumer vis-a-vis the wage earner Consumer in relation to his culture Product features and characteristics Foreigndomestic consumption patterns Illegal products Religious and ethnic factors 3. Information: Basis for sound decision - snaking 2. Factors affecting decision-making Criteria for quality informatior Psychological motivation and restraints Reliability Needs and wants Validity Values and goals Communicability Sensory perceptions Sources Behavior analysis Independent consumer testing companies impulsive Business-sponsored aids repetitive business bureaus planned seals of approval Social motivation and restraints Trade associations Custom and tradition Citizen groups Culture and ethnical influence Government agencies Peer group Professional associations Individual in relation to club membership Methods of obtaining information Economic motivation and restraints Product file Personal and family resources Product study income 4. Practical experience in the marketplace savings Principles in buymanship skills Comparison of products and prices talents Methods of payment for goods and services education Comparison of stores, consumer services, inheritance and other facilities Previous allocation of resources Ch ,ing marketplace credit contracts insurance 5. Rights and responsibilities 1 Emergencies Right to product and service safety, and the Re- Local and national financial outlook sponsibility to use them properly Legal motivation and restraints 13 Right to redress grievances, and the Responsibility License and taxes to register complaints 8 Right to fair value in the marketplace, and the the Consumer Safety Administration. Responsibility to use information effectively List at least five common misconceptions which con- Additionai rights sumers have about their rights and responsibilities in Right to be heard dealing with businessmen. Indicate why these are mis- Right to choose conceptions and suggest methods of correctio Right to be informed Collect and analyze clippings on legal cases taken from Additional responsibilities the newspaper or magazines. To be honest in transactions Identify the legislative bodies at the various levels of To honor obligations government which 'may pass new laws or revise existing 6. Consumer problems laws and select newspaper articles discussing the ac- Fraudulent and deceptive selling practices tions of these groups. False advertising List sources of legal aid available to consumers. Inter- Phony repairs view representatives of these agencies for classroom Consumer contracts discussion. Misinformation Discuss prevalent deceptive and fraudulent business Misrepresentation of merchandise practices and methods of avoiding such practices. Poor service Listen to a representative from the Better Business Bu- Defaults on guarantees and warranties reau or a describe some of the Suggested Activities prevalent fraudulent business practices that consumers Read articles comparing like consumer items. Use in our area should know about and how this agency aids Changing Times, , and Consumer Bul- the consumer, and hold a question-and-answer period. letin as sources of information. Write to the , Washington, D. Prepare a bulletin board display of newspaper and mag- C., for a copy of their weekly releases, which report the azine articles which involve consumer agencies working agency's actions against violators. Make an oral report for consumers. summarizing this material. Prepare and discus^ a list of business practices prohibit- Visit a court in the community to witness trial proceed- ed by the Federal Trade Commission. ings involving civil cases between parties to a contract. Listen to a speaker from the Food and Drug Administra- Analyze radio, TV, newspaper, and magazine advertise- tion discuss the protective role played by his agency, ments for the amount of factual information versus ap- and whether its authority might be expanded to cover 1 4peals to emotion. products under a new agency to be known as Write an essay on which of the Rights of Consumers 9 mean most to a teenager. gives suggestions on how to avoid these practices. Analyze and discuss case studies which involve Condi- Mouat, Lucia. The Consumer Fights Back. The Christian tional Sales Contracts, Elements of Contracts, and Bail- Science Publishing Society, Boston, Massachusetts, ments. 1970. Describe the course of action the consumer would initi- Provides critiques of a number of articles ofconsum- ate when treated unfairly in a business transaction.---1-1 er interest which appeared in the Christian Science Research and report on a book which describes the Monitor. in America. MONEY MANAGEMENT Instructional Materials Guidance is needed in developing ability tomanage re- Lundberg, Ferdinand. The Rich and The Super Rich. Ban- sources to achieve a type of living that reflects the individ- tam Books, New York, New York, 1968. ual's and family's goals and needs. The major objective for Discusses the distribution of the wealth and howa teaching money management is to maximize satisfaction relatively small number of wealthy people possessa through the development of understandings, knowledge, great influence on the course of the times. skills, and attitudes. Individuals and families need tolearn to make rational rather than emotional decisions in deter- Margolis, Sidney. Innocent Consumer Vs. the Exploiters. Trident Publishing, Inc., New York, New York, 1967. mining how income and resources will be used in attaining both immediate and long-range goals. Discusses the common situations in which unscrupu- lous businessmen deceive consumers. Objectives Nader, Ralph, et al. What To Do With Your Bad Car.Ban- To help students: tam Books, New York, New York, 1971. * demonstrate how values, goals, and needs influence This report discusses how to avoid buying a lemon the use of personal and family income and what to do when you get a lemon, which is a criti- set priorities for personal and family needs, wants, cism of the industry practices which lay behindmanu- and goals facturing defects. Packard, Vance. Waste Makers. McKay, David, Company, * recognize the different kinds of resources used by in- Inc., New York, New York, 1960. dividuals and families Discusses "planned obsolescense" as an ingredient * demonstrate the use of the decision-making process in marketing. * formulate an individual or family record-keepingsys- Springer, John L. Consumer Swindlers and How to Avoid tem Them. Award Books, New York, New York, 1970. * understand that at different pe-riods in life, the individ- Discusses methods of defrauding the consumer, and 15 ual and family finance plans change 10 Outline of Content health 1. Recognizing factors affecting use of income by the cultural background individual or family national economy Planning use of money income for immediate Values and goals and future goals Definitions and identification Recognition of goals and values Factors affecting decisions Study of past and present spending plans Variances in life cycle Stages of life cycle individual Objectivity and maturity in choice-making beginning family Consumer credit expanding family 3. Developing financial management plans contracting family Benefits from planning Needs and wants Satisfaction gained from achievements Definitions and identifications Growth in net worth Factors affecting decisions , Provision for emergencies and periods of Variances in life cycle heavy spending Changes in individual and family income Decision-making Factors affecting change Steps involved include: Variances in life cycle ascertain the important determining factor for decision 2. Planning the use of individual and family income explore ;alternatives Types of income anticipate consequences of various choices Money make a selection Real evaluate the choice Psychic Record keeping Factors influencing use of income Uses Amount of income related to earning Types capacity Application Use of income influenced by Factors affecting individual or family financial goals, values, needs, and wants management plans occupation Changes in income location Changes in life cycle stages of life cycle 16 Changes in values, goals, wants, and needs Suggested Activities World of Work. McKnight and McKnight, Bloomington, Define values goals, needs, and wants. Role-play or use Illinois, 1970. case studies to help students identify how these terms Presents plans for developing programs of spending. influence different individuals and families. Includes problem-solving situations and types of forms to use in planning. pp. 153-203 Problem solving"If I Had $500,I Would"Compare Schoenfeld, David, and Arthur Natella. The Consumer and answers to show individual difference in values and His Dollars. Oceana Publications, Inc., Dobbs Ferry, goals. New York, 1971. , Develop a bulletin board on decision-making. Describes how to develop one's money management plan. pp. 149-165 Discuss"With decisions comes responsibility." Starr, Mary Catherine. Management for Better Living. D. C. Compile a list of resources to use in making financial Heath and Co., Lexiqgton, Massachusetts, 1968. decisions. Presents a comprehensive plan for managing money Resource persons for class presentation or interviews and other income. pp. 338-420 a banker, business teacher, manager of a credit union or Thal, Helen M., and Melinda Holcombe. Your Family and loan company, etc. Its Money. Houghton Mifflin Co., Boston, Massachu- setts, 1968. Present skit"Where, Oh, Where Does My Money Go." Presents an individual and family approach to money Debate pros and cons of having a financial plan. management. pp. 65-122 Panel discussion with representatives of families at dif- Warmke, Roman, Eugene Wyllie, W. Harrmon Wilson, and ferent stages in the family life cycle. Ask the representa- Elvin Eyster. Consumer Economics Problems. South- tives to tell what they believe are the major financial Western Publishing Co., Chicago, Illinois, 1971. problems. Describes ways to develop financial plans. pp. 359- 392 Listen to a symposium in which a banker, attorney, a A Resource Kit for Teaching Consumer Education. Chang- savings and loan director, or representative of other fi- ing Times Education Service, Suite G 91_1729 H Street, nancial agencies explain their views on the need for fi- N. W., Washington, D. C. 20006. nancial management planning. Discuss issues listed by Contains units on five different topics: earning, these resource people. spending, borrowing, saving, and budgeting. Has accompanying teacher's guide. Instructional Materials Programmed Learning Instruction in Budgeting and Man- Kimbrell, Grady, and Ben Vineyard. Succeeding in the17 aging Money, Unit II. Delta Pi Epsilon Office, Gustavus 12 Adolphus College, St. Peter, Minnesota 56082. * know the requirements for establishing and maintain- One of a series of booklets in programmed learning ing a good credit rating instruction. * be acquainted with the types and sources of consum- Your Guide For Teaching Money Management. Money er credit Management Institute, Household Finance Corporation, * learn the cost of credit and its legal obligations to Prudential Plaza, Chicago, Illinois 60601. credit users Booklet discussing values and goals, money manage- ment, and the consumer education topics. * recognize and ealuate the provisions of consumer credit agreements The Rational Decision-Making Process. 3M Company, Vi- * develop the ability to use credit intelligently sual Products Division, Box 3100 A, St. Paul, Minnesota 55161. * become familiar with the laws that govern consumer Color transparencies discussing the decision-making credit process. Outline of Content Everybody's Money. CUNA International Inc., P.O. Box 1. Problems in credit use 431, Madison, Wisconsin 53701. What is credit? The Credit Union Magazine for Consumers. When should it be used? How much should be used? CONSUMER CREDIT What are its costs? Consumer credit is widely used in our economy. Busi- What are its advantages? ness men urge its use to increase sales. They benefit from What are its disadvantages? earnings on credit obligations of different kinds. 2. Consumer credit in our economy Consumers use credit too. They choose the type of cred- it best suited to their needs, basing their decisions on its 3. Opportunity costs special features and cost. Money due to future credit obligations is not Both consumers and businessmen are regulated by laws available for current spending in their use of credit. 4. Credit credentials Credit ratingcharacter, capital, capacity Objectives Credit bureaus To help students: 5. Using consumer credit wisely * understand what consumer credit is and itsrelation- n Slect the kind of credit to suit the purpose ship to our economy 0 Shop for credit 13 Look for truth-in-lending information Pawn brokers Consider the future of the economyinflation, Unlicensed unemployment Loan sharks Take no more debt than can be safely carried Others Understand all credit instruments before signing 9. Methods of figuring costs Pay debts as per agreement Add-on interest method 6. Types of consumer credit Discount method Installment Charge on declining balances Noninstallment Dollar cost method 7. Forms of consumer credit Annual percentage method Sales and service credit 10. Provisions of consumer credit agreements Regular charge account Retail installment contract Revolving charge account Promissory note Installment plan Chattel mortgage debt owed to merchant Collateral note debt owed to third party Co-signer Cash credit Wage assignment personal installment loan 11. Other provisions of consumer credit agreements single payment loan Acceleration clause check credit plans Add-on clause 8. Sources of consumer credit Balloon payment Sales credit Confession of judgment clause Default Retail store Insurance Third party lenders Prepayment Sales finance companies Others Cash credit Commercial banks 12. Consumer. credit laws Savings and loan associations Illinois Small Loan Law Consumer finance companies Illinois Consumer Fraud Act 1961 Credit unions Amendments 1967 Life insurance companies 19 Illinois Retail Installment Sales Act 1967 14 Federal Consumer Credit Protection Act 1969 its credit obligations. What alternatives are available Federal Fair Credit Reporting Act 1971 in solving the financial problem? Develop a case study involving borrowing money for a Suggested Activities purchase. Ask four students to take this problem to Obtain for each student a copy of the student problem four different lending agencies; such as, commercial book, Accepting Credit Responsibility. This booklet is bank, consumer finance company, credit union, and free to Chicago Public and Private Schools from the life insurance company. Compare the percentage of Continental Illinois National Bank and Trust Company, credit costs. Investigate reasons given for differing as #2 of their Financial Educational Program, 1970. It is costs. Discuss the advantages and disadvantages of also available to other schools through local banks who borrowing from each agency. must acquire them from the Continental Bank. The Instructional Materials work-study booklet contains 80 pp. which supply several Credit Matters. Department of Consumer Sales, Weights credit forms, and a variety of student activities including and Measures, Chicago City Hall, 121 N. LaSalle Street, study guides, cases, problems, etc. A teacher's guide Chicago, Illinois 60602. should be ordered. Explains simply and pictorially credit, its uses, costs Obtain for each student a copy of the student booklet, of different kinds, credit laws, and contracts. It's Your Credit, Manage it Wisely, by Household Fi- Your Protection Against Fraudulent Sales, Advertising, nance Corporation. The accompanying pamphlet, Your Loans. Attorney General's Consumer Fraud Division, Guide for Teaching Consumer Credit, provides con- 160 N. LaSalle Street, Chicago, Illinois 60601. Also Su- cepts, generalizations, questionnaires, pretests, car- preme Court Building, Springfield, Illinois. toons, quotations, suggested learning experiences, open A six-page leaflet listing common frauds and how to end situations, group projects, and credit forms. avoid them. Obtain copies of Programmed Learning Instruction in A Resource Kit for Teaching Consumer Education II. Using Consumer Credit Wisely by Delta Pi Epsilon. Changing Times Education Service, 1729 H. Street, N. If it is not possible to, obtain one or all of the three book- W., Washington, D. C. 20036 lets, these student activities may be used: Borrowing section has a variety of teaching aids for Survey local stores in the community to determine the inexperienced consumer education teacher. implications of the saying, "charge it." What is the Programmed Learning Instruction in Using Consumer extra cost if bills are not paid promptly? What are the Credit Wisely. Delta Pi Epsilon National Office, Gustavus costs and obligations of revolving charge accounts nAdolphus College, St. Peter, Minnesota 56082. and installment plans? t4. One of a series of booklets in programmed learning Role-play a lesson in which a family is unable to meet instruction It's Your Credit, Manage It Wisely. Money Management * understand the factors influencing cost of housing Institute, Household Finance Corporation, Prudential and methods and sources of financing Plaza, Chicago, Illinois 60601. * create an awareness of contemporary social and A pamphlet describing the many facets of credit. economic problems as they affect the housing mar- Accepting Credit Responsibility. Continental Illinois Nation- ketplace al Bank and Trust Company of Chicago, Chicago, Illi- nois, 1970. Outline of Content A publication to be used to reinforce relationships and concepts regarding credit. Materials include a teach- 1. Needs and preference in housing er's guide and student problem books. Family lifestyle Age and number of members HOUSING Mobility Effective use of the consumer's housing dollar to Employment achieve the greatest satisfaction involves more than just Psychological and physical considerations securing a place to live. Today's consumer must be aware Community facilities and services of his housing needs, his legal responsibilities, his financial Schools obligations, his insurance options, his community influ- Shopping centers ences, and develop the skills necessary to understand the Fire and police protection housing marketplace, its fluctuations, demands, and alter- Public transportation natives if he is to utilize his housing dollar to the best ad- 2. Alternative choices in housing and characteristics of vantage. each Objectives Single dwelling To help students: Multiple housing Row or town house * understand individual needs and preferences in hous- Condominium ing Mobile homes * recognize the alternatives available regarding housing Public housing choices 3. Factors influencing cost of housing * understand the legal obligations and responsibilities in Costs of owning relation to housing Initial costs * recognize the facto: "doh influence housing choice- down payment making i1 closing costs 16 Continuing costs Tax assessors taxes Sources of financing insurance Savings and loan associations operating costs, maintenance, and repairs Commercial banks Other costs Finance companies assessments Life insurance companies uninsured losses Friends and relatives Costs of renting Government insured loans Initial deposit conventional Monthly outlay F.H.A. Operating costs land Insurance buying on contract Other factors in housing costs 6. Understand the legal aspects of protection for the Heating and air conditioning home owner and renter Construction methods and materials Legal responsibilities Zoning Property and liability insurance Transportation 7. Contemporary, social, and economic problems in Urban, suburban, rural housing Public services and facilities Relocation or moving costs State and local legislation 4. Factors which affect housing choices Building codes Zoning Family size Community planning Supply and demand Attitudes of property owners and renters Public housing projects Housing for the elderly Future city planning Alternative choices Sharing the cost of public housing Redevelopment projects Substandard housing Pollution 5. Methods and sources of financing Communal housing Specialists in finding and finalizing house Discrimination in housing purchasing Suggested Activities Realtors 2 Appraiser Using a floor plan, have students determine the mini- 17 mum housing needs for families in different stages of the discuss the fluctuation of housing costs over the last ten life cycle. years. Survey the class to determine: (1) the kinds of housing Select several common home repairs to determine the units currently being occupied by students; (2) the costs when: (1) using a professionally trained repair- length of time they have resided there; (3) the types of man; (2) do-it-yourself; and (3) employing an unskilled housing units the student has occupied; (4) the number person (handyman). When would each course of action of times the student has moved; and (5) the student's be taken? personal preference. Chart the information obtained to Compare commercial versus government-insured home indicate mobility of the community and as a survey of financing as to availability, interest rates, building re- available housing units. quirements, advantages, and disadvantages. Interview the city planning commission, building inspec- Investigate the sources of home insurance available to tors, local government personnel, and the zoning com- the local consumer. Prepare a chart showing the types mission to determine the types of information recorded of policies available, requirements for the geographical and used in making long-range decisions. area, ^.nd the relative costs. Research and report on the local building codes and Invite a local attorney to discuss the legal responsibili- zoning laws. Use the material from this report for a de- ties of the homeowner and renter. bate on the relative merits of zoning laws and building codes. Study local building codes and the provisions for their enforcement. Invite contractors, trade unions, and local Conduct field trips to observe a variety of home con- government officials to discuss the validity of existing sat struction methods and types of housing units. Conduct a walking field trip through the neighborhood to Video tape a variety of homes under construction and observe how the local community is observing good discuss the video tape in class. ecology principles. Debate the advantages and disadvantages of renting Divide the class into small groups aid have each group and buying. investigate the initial and continuing costs of different Demonstrate the different home construction methods housing units. including the comparison and contrast of initial and con- Invite the industrial arts teacher to show the class the tinuing costs. various steps in building a housing unit. Invite local contractors to discuss their views on con- Present a symposium on home financing with each stu- struction methods and costs as each affects the total dent on the symposium representing the views and poli- price and the financing of the housing unit. t) c), cies of a source of home financing available within the Invite a real estate agent or a savings and loan officer to community. 18 Arrange a panel discussion of two young couples who "HUD-FHA Assisted Programs for Houses Built for Sale to have recently moved into the community, asking them to Lower Income Families." U.S. Department of Housing relate their experiences concerning how they moved'and and Urban Development, Washington, D.C. March, 1970 the problems encountered. This is a one-page leaflet explaining the requirements Interview citizens, of the community to identify housing for Section 235, National Housing Act. problems. Invite local government representative to dis- "Your Housing Rights." U.S. Department of Housing and cuss these problems. Urban Development, Washington, D.C. March, 1970. Instructional Materials This pamphlet contains an explanation of the individ- ual's civil rights in the housing marketplace. "Fair Play in Housing." Public Affairs Pamphlet, Number "Your Housing Dollar." Money Management Institute, 396, Public Affairs Committee, 381 Park Avenue South, Household Finance Corporation, Prudential Plaza, Chi- New York, New York 10016, 1966. This is a frank discussion of the rights and responsi- cago, Illinois, 1966. A descriptive account of the factors to be considered bilities of the renter, buyer, and seller. in selecting a housing unit. "How to Finance Your Home." Public Affairs Pamphlet, "Your Home Buyer's Guide." American Bar Association, Public Affairs Committee, 381 Park Avenue South,, New 4248 South Second Street, Springfield, Illinois, 1969. York, New York 10016, 1966. A concise discussion of some of the pitfalls to avoid Directed toward the young consumer, this pamphlet concerning contracts, financing, titles, and closing in gives suggestions in purchasing a home. making a home purchase. "Home Buyers Check List." Local Savings and Loan Asso- Teacher Reference ciations. 221 North LaSalle Street, Chicago, Illinois. This pamphlet provides the home buyer with an easy- DeBenedictis, Daniel. Laws Every Homeowner and Tenant fo-use check list when considering the purchase of a Should Know, Cornerstone Library, 1968. home. This book provides information on the social, eco- "Housing: A Major Family Expense." Education Depart- nomic, and historical development of American hous- ment, CUNA, Box 431, Madison, Wisconsin. ing A discussion of the steps inolved in the selection of a home. FOOD "Home Mortgage Insurance." U. S. Department of Hous- Today's consumers regularly spend a substantial portion ing and Urban Development, Washington, D. C. March, of their income on food purchases. The wise use of the dol- 1970. lar is dependent upon the consumer's ability to evaluate A concise discussion of the use and purchase of available products; ascertain the family's needs and wants; home mortgage insurance. and to plan food purchases. The consumers' ability to rec- 2 .1 19 ognize and control the factors which affect choice-making 2. Establishing wise buying habits will result in wiser use of the consumer's income and Use appropriate package size achieve greater satisfaction for the individual and family. Prepare shopping lists Preplanning menu Objectives Utilize informational advertising To help students: Read labels * become aware of the factors affecting food purchases 3. Evaluating and utilizing changes taking place in the and prices food industry * evaluate the services and merchandising practices of foods the retail food outlet Synthetic foods * understand and use food packaging, processing, New processing and packaging of foods grades, and labels as buying guides Food additives * become aware of sources of consumer information 4. Evaluating the retail food outlet and protection Motivational influences on the consumer * utilize available resources and management skills in Social influences on the consumer spending the food dollar to achieve maximum satis- Elements affecting food pricing faction Sources of food purchases Merchandising practices Outline of Content Auxiliary services 1. Factors influencing family spending for food 5. Informing and protecting the food consumer Values, goals, and standards, Publications Number, age, and sex of the family members Government agencies Cultural and social heritage Federal Trade Commission Buying habits and eating patterns Food and Drug Administration Equipment and storage available U.S. Department of Agriculture Knowledge of food preparation skills Illinois Department of Agriculture Available resources Illinois Department of Public Health Family life style County Extension Agent Employment and recreational needs County Welfare Agencies Nutritional requirements Legislation Food stamps Wholesome Meat Act 20 Fair Packaging and Labeling Act county extension agent, a consumer, a retail food own- Food, Drug and Cosmetic Act er, and a student, discuss how the consumer is being Federal Hazardous Substances Act informed and aided in purchasing food products. Ecology Diagram the floor plan of serveral food outlets to deter- mine how the consumer is influenced in making food purchases. Suggested Activities Debate the topic:Is shopping by brand loyality a good Survey the typical diets of the class by having each stu- shopping habit? dent keep a record of all the food consumed for a period of time. From this information compile a typical teen Using one food item, prepare a display of all the ways diet. Discuss the influences on teenage eating habits. this food might be packaged and sold. (Example: fresh, frozen, canned, dried, etc.) Relate preparation Using the typical diet, determine if thejoung consumer and processing methods to the ultimate use of the food is observing good n :tritional habits. Discuss how the item. Liman body might be affected if these diets are contin- ued over a period of years. Make a collage of labels and conduct a comparison study of the information contained on them. Call atten- Have the school or hospital dietician talk to the group tion to the contrast between pet food product labels and about the effect of diet3 on the human body. labels on food products for human consumption. Plan a menu for one week to determine: (1) the cost if Discuss:The relative merits of the food stamp pro- each meal was eaten in a restarurant, (2) the cost if all meals were prepared at home using the convenience grams versus commodity foods and the requirements for foods, and (3) the cost if each meal was prepared at participating in each. home with no convenience foods. Demonstrate various ways of using a commodity food in the family menu. Collect advertisements fronl various retail food outlets to ascertain: (1) the amodeof factual information given, Make a collection of food containers to ascertain how (2) the motivational influences used, and (3) the per- the Fair Packaging and Labeling Act is being implement. centage of valid "sale" items. ed. Chart the flow of food from the farmer to the consumer. Arrange a panel discussion of the advantages and disad- How do the steps and changes that take place in the vantages of organic foods. food 'affect the final cost to the consumer? Invite an agri: Develop a consumer information center containing infor- culture teacher or county extension agent to tell the mation collected from various agencies and organize- farmer's side of food pricing. t,t:tions. Using either a panel or symposium composed of the Have the class prepare a newspaper column to keep the 21 students informed about current legislation, consumer Health, Education, and Welfare, and Foodand Drug problems, and agencies which will aid the consumer. Administration, Washington, D.C. Prepare exhibits, posters, display cases, skits, and pro- A brief pamphlet describing the protection given the grams to alert the consumer about the importance of consumer by the FDA. observing good ecology principles. "It's on the bel." Natidnal Canner's Association, 1133 .- Discuss the pros and cons of unit pricing. 20th Street, NW, Washington, D.C. Plan a field trip to a variety of food outlets to investigate A one-page leaflet showing the information required the: (1) advantages and disadvantages of "one-stop and how the consumer should read a label. shopping" and its effect on th e food dollar, (2) informa- "Your Food Dollar." Money Management Institute, House- tion on brand and store labels artheir use, (3) variety hold Finance Corporation, Prudential Plaza, Chicago, Il- of synthetic and convenience foods currently on the linois, 1966. market and their use, and (4) comparative costs of sta- This pamphlet and its accompanying filmstrip, pleS in various ?cores. "Spending Your Food Dollar," illustrates ways to use the food dollar to obtain greater satisfaction. Instructional Materials Programmed Learning Instruction in Buying Food. Delta Pi Epsilon National Office, Gustavus Adolphus College, St. "How to Buy Foud." U.S. Department of Agriculture, Peter, Minnesota 56082. Washington, D.C., 1969. This is part of the programmed learning series for the This packet contains individual leaflets illustrating student in buying. good buying tips for each food group. Teacher Reference "How to Be A Better Shopper." The Sperry and Hutchinson Cross, Jenifer, The Supermarket Trap. Indiana University Company, 3003 East Kemper Road, Cincinnati, Ohio Press, Bloomington, Indiana, 1970. 45241, 1966. This book presents information on the various meth- Free for classroom use, this pamphlet discusses ods uued to obtain the consumer's food dollar.. good shopping manners, using can sizes to suit the purpose, and wise buying habits. TRANSPORTATION "How You Can Cut the Cost of Food." National Canner's In our mobile society one of the greatest expenses Association, 1133 - 20th Street, NW, Washington, D.C. undertaken by the consumer is the purchase and use of This is a brief pamphlet written in easy-to-read lan- transportation. The cost to the consumer of traditional guage with cartoons illustrating wise hints on food transportation modes (car, bus, train) has risen. The buying habits. A.) F-7cost of the less traditional transportation modes has "How the FDA Works for You." U.S. Departments of decreased in a relative and, in some cases, in a real 22 sense. The result of these cost changes has been to in- ated by alternative means of transportation; i.e., pol- crease the number of choices which confront the trans- lution, noise, and safety portation shopper. To make the best decision, the con- * recognize the importance of counting a person's time sumer should be equipped with more than just the vari- as a cost of alternative transportation modes ous price tags. The automobile continues to be the pre- * realize the magnitude of the portion of their income dominate form of transportation in the and which would be used for the purchase of an automo- represents the second largest purchase a consumer is bile apt to make with his income. The consumer needs to understand the complexities of the selection of an auto- * be aware of the care needed in the efficient and eco- mobile and its maintenance and operation. nomic operation of an autobobile * recognize that as much care should be taken in shop- Objectives ping for automobile financing as is taken in the shop- To help students: ping for the car itself * identify the alternative means of transportation which are readily available and determine the relative ad- Outline of Content vantages and disadvantages of the different transpor- 1. Major forms of transportation available for the resi- tation modes dents in a specific geographical area * determine their transportation needs with regard to Rail usage patterns, operation costs, maintenance costs, Bus and storage fees Car * understand the methods 0,:lancing the era - ious alter- Air native transportation modes Mass rapid transit Cycle * distinguish between needs and desires before making a final selection of a type of transportation 2. Determining the form of transportation which pro- vides the consumer with the Makimum satisfaction * develop a sound understanding of the method used to for the dolly spent compare differing transportation modes in order to get honest comparison of their relative costs Best use of total income Calculation of the cost per mile of various * understand the different requirements of various transportation modes types of transportation with regard to financing, insur- Fixed costsdepreciation and lost ance, safety, convenience, and maintenance 2 8 interest on capital invested * be aware of the various social costs which are cre- Variable costsgas, oil, battery, 23 person's time Air Fixed Costs + Variable Costs=cost per mile Cab fare Mileage to be traveled Car rental 3. Noneconomic factors in the selection of transporta- Insurance tion modes Time Style' Status Bus Comfort Time Convenience Insurance 4. Different types of travel require different types of Meals transportation Motorcycle 100 mile trip Parking ,000 mile sightseeing trip Taxes 1,000 mile destination Insurance liability Commuting to work Repair costs 5. Costs which might be missed when assessing the New vs. used various transportation modes Safety equipment Car Parking 6. Selection, purchase, and ownership of an automobile Personal property tax The selection process. Insurance liability Needs vs. desires Repair costs Performance standards New vs. used car Testing agencies Storage Pricing and price comparisons Time New vs. used The payment source Rail Dealer supplied financing - GMAC Cab fare Personal loan financing Time Bank Tips 2,9 Credit union Meals Other 24 The responsibilities and requirements for the costs of maintaining an automobile and the specific ownership care which is needed to get the most out of your car dol- Insurance (See section on Insurance) lar. Maintenance Ask a local insurance man to discuss the insurance costs for various types of transportation, the protection a Suggested Activities consumer should have with each type. Make a survey of the transportation modes in the area Have the class divide into groups and discuss situations and the approximate percentage of the population using in which thfc car, plane, bus, train, or cycle would or each type of transportation. would not be the form of transportation which would pro- Develop'a form for comparing the total cost of one type vide maximum satisfaction for the consumer's transpor- of transportatio'n to the total cost of another type of tation dollar. transportation. Pretend you are operating the family car as a taxi for the Obtain rates for various types of transportation for a trip exclusive use of Our family. How much would you have from Chicago to St. Louis and select the appropriate to charge per mile to cover all costs? Be sure you in- means of transportation which would give his family the clude all costs such as impFisit costs (driving time, de- best use of their dollar. preciation, lost interest on capital invested or interest on Prepare a bulletin board depicting the various economic installments) and out-of-pocket costs (repairs, insur- advantages and disadvantages of alternative means of ance, licensing, personal property tax, gas and oil). How transportation. could this method be used on other means of Obtain from community financial sources the specific transportation? Of what value is this method in helping costs of financing varying types of transportation and make choices as to what to buy? Why do businessmen report the results to the class. go through a similar process? List the advantages and disadvantages of new or used Ask your parents or an auto dealer or someone you think cars or motorcycles. knows a great deal about car costs what the following costs are for the average car. (Note:Many auto me- Visit a travel agent and discuss the various rates chanics who know a great deal about how cars operate, charged for different means of transportation and report know little about car costs.) back to the class. (a) gas and oil Have an official of the local cab company talk to the (b) personal property tax on the car class about the operation of his company and how they (c) license plates figure the cost of operating cabs. (d) adequate liability insurance including medical Interview a local service station manager and discuss 30 payments and comprehensive 25 (e) insurance coverage for a man under 25 Informative presentation of the "true" cost of car (f)insurance coverage for a woman under 25 operation. (g) How much does a new car depreciate in two Cost of Operating an Automob le. (Annual) U.S. Depart- years? ment of Transportation, Federal Highway Administra- (h)if you bought a two-year-old car and kept it tion, Washington, D.C. two years, how much would it depreciate in Yearlyisummary of car costs in United States. the two years you owned it? Purchasing andMaintaining an Automobile. New York (i) How much would the finance charges be for a State Council on Economic Education, State University 6% add-on-loan for $3,000 to be paid over of New York at Albany, 135 Western Avenue, New York three years? 12203 (14 pages). (j)sales tax on depreciation Pamphlet on the procedures of purchasing an auto- (k)lost interest on capital invested if you pay mobile. $3,000 cash Chamberlain, Neil W., (ed.) Contemporary Economic Is- What is the cost of replacing the following (including in- sues. Section 5, "Current Issues in Transportation," Wil- stallation) on the average car: liam Vickery, Richard D. Irwin Inc., Homewood, Illinois, (a) battery 1969. (b) shocks (front and rear) Readings in economics which deals with alternative (c) new brakes transportation modes and their costs. (d) generator Committee for Economic Development, Developing Metro- (e) tune up, including spark plugs, oil change, etc. politan Transportation Policies:.A Guide for Local (f)muffler and tail pipe , Leadership. Statement on National Policy by the Re- (g)tires set of four search and Policy Committee of the Committee for Eco- nomic Development, April, 1965. Instructional Materials Survey of transportation costs and alternative trans= portation proposals for urban areas. Consumer Reports. Annual Buying Guide and Annual Auto- mobile Issue. Consumers Union of U.S., Inc., 256 Wash- ington Street, Mount Vernon, New York 10550. CLOTHING A valuable resource for comparison of automobiles Contemporary society places an increasing value on the Cost of Car Operation Study. American Legal Association, individual, the individual's personal needs and wants, and 1047 Commonwealth Avenue, Boston, Mae :achusetts desires for self-expression. "Freedom to choose" and 02215. "personal lifestyle" are key, phrases in the lexicon of to- vi 26 day's young. It is of great importance to these young peo- factor in purchasing ple that they be accepted by their peers and the choice of * understand the use of credit when buying clothes the "right" clothing is frequently seen by the young as a * become familiar with consumer information sources major factor in this acceptance. In the marketplace, and in order to keep informed and develop better buyman- especially in the clothing store, this trend is reflected in an ship practices accent on "style." Today's young people also select their'lthes with less and less help. Students need training in tne principles of Outline of Content good buymanship. If the principles of planned buying and 1. Wardrobe planning decision-making are learned during the early years, stu- Individual needs and wants dents will.have a solid background to support them in deal- Values and goals ing with the proliferation of styles, the pressures of family Available incomehow to stretch and peer group, and their own changing tastes as they Other resourcessewing skills, gifts grow toward maturity. 2. Clothing selection Principles of design, line, color, texture Objectives Fashion versus fads To help students: Fiber, fabric construction, finishes * develop the ability to identify and analyze their per- Natural sonal values and needs in relation to the clothing they Synthetic wear Woven * develop the ability to plan, select, and finance a ward- Knit Wash and Wear robe that will meet their individual needs Permanent press * realize that clothing can be functional and, attractive Psychological and social values and still be in fashion Dress of peers * appreciate the importance of proper care and repair Social status of their clothing, both for appearance and to help Dressing for job stretch clothing money Mobility * understand how to judge quality in clothing by paying 3. Buymanship attention to construction, fabric, finishes, and design Buying practices * evaluate price values at seasonal or specially adver- 0 GI Factors determining price tised sales in order to know when price should be a Quality of construction 27 Quality of fabric and finish United States Department of Agriculture Seasonsspecial holidays, special sale days The National Retail Association Store differencesdepartment, specialty The National Institute of Dry Cleaning chain, discount shopping center Consumers Research Services offeredsales help, self-help, Consumers Union of the United States parking, etc. American Home Economics Association Geographic location Better Business Bureau Supply Legal Aid Society Demand Attorney General's Office Family Service Bureau Comparative costs Buying ready-made 4. Care and maintenance Making some or all of your own clothing Daily, weekly, and monthly care Knowledge of sizes Launderingprofessional and coin Method of payment Dry cleaningprofessional and coin cleaner Cash Performance of fibers and finishes with home care Credit Seasonal care and storage Use of buying aids Minor repairs Brand names Major alterationsrecycling Trademarks Tags Suggested Activities Labels Develop a student information form to be answered and Guarantees not signed, seeking such information as: Advertisements Family compositionnumberagethose em- Consumer publications p!oyed Sources of consumer information and protection Family activities in and outside of the home Wool Products Labeling Act Individual activities in' and outside of the home Fur Products Labeling Act Approximate family clothing budget (student's own Flammable Fabrics Labeling Act clothing budget) Textile Fiber Products Identification Act Approximate amount of new clothing purchased each The Federal Trade Commission year, for whom? (or self) The USA Standards Institute (American Approximate amount bought for need, want, or be- Standards Association) 33 cause someone else had it 28 Method of purchasing used by family or self; e.g., spend it. How would you spend the $50 if told that you cash, credit, lay-a-way or other could buy only one of your choices, how would you de- Number of times clothing purchases were postponed cide which one? because of other needs, (family or personal [if stu- View films and filmstrips on wardrobe planning and dent is employedi emergencies) selection. Following viewings, discuss principles of bud- Influences affecting family purchases such as: adver- geting for clothes. tising, sales, various types of media, peers of family members Factors determining how much is spent Long-range plans. of family or self What is gained by planning Why lifestyles are important to planning and choice Discuss how cultural differences, personality and value making differences may influence choices of clothing within a family unit. Decide what basic clothes are essential for Invite resource person from retail store to bring samples everyday living for: (1) high school or college student, of clothing and give a talk on buying clothing for the win- (2) first year on a job, (3) new baby, (4) businessman, ter, spring, or fall season; what to look for, how to read (5) housewife, and (6) a retired businessman. tags and tickets, labels on garments, and factors in- Name the ways in which a person could supplement a volved in pricing. clothing budget by using other resources. Calculate the In committees of three, investigate and obtain informa- cost of making a winter coat, taking into consideration tion on the various types of credit plans available for the following: buying clothes at department, chain, specialty, and cat- 1. cost of fabric and findings alog order stores. Report and discuss in class. Explain 2. time involved how each of the common forms of credit is used to meet 3. cost of labor different needs. Tell which form of credit you would use Compare cost of making with the price of buying a for each of the following: ready-to-wear coat of comparable fabric and workman- Suit and coat ship. In comparison, is saving, if any, comparable to Pair of shoes time and labor involved in making your own? Decide if Hosiery and gloves making the coat in this case is an advantage or disad- Figure the cost of credit on a coat priced at $50, bought vantage. on a revolving charge or installment account making $10 Give specific examples where making an item can be payments per month. Which account would you recom- counted as an actual resource to stretching income. mend for a person of limited income to use? Discuss what values would influence your spending if 0 4,11 Discuss ways to judge quality in clothing. you were given $50 and had three choices of how to Comparison shop a well-known blouse or shirt versus a 29 lesser-known brand name at a medium price level. In vices. Relate factors when professidnal services may be committees, visit a department store, specialty shop, a saving to use in spite of lower costs of do-it-yourself chain store, discount house, catalog order store. Evalu- services. ate results. How did prices vary in a chain or discount Take a field trip to a dry cleaning establishment to learn store in comparison to a neighborhood independent about spot removing, cleaning, and pressing techniques. store? Give class demonstration of performance of fibers and Research law requirements on labels for certain textiles. finishes, following label instructions for care. Make tests Prepare a list of labeling laws which protect the consum- of dry cleaning elements on a variety of fabric finishes. er. Study and obtain samples of woven, khotted, and novelty Investigate and list for class reference:Federal, local, weave fabrics. Show performance, approximate wearing and community organizations where consumers may time, and care. seek inforniation and help with consumer clothing prob- Hold a panel discussion on aid and protection of the fol- lems. lowing agencies: Simulate a department store claim adjustment depart- American Institute of Laundering ment. Custu,hers are returning merchandise for three Better Fabric Testing Bureau different claims of damage:(1) shrinkage, (2) hole in Consumers Research shirt from pressing, and (3) leaking boots. Role-play Consumers Union of the United States customer's and clerk's attitudes for both right and wrong National Consumer Retailer Council approaches. Discuss and write correct procedure to fol- Give suggestions as to how consumers should be in- low for making claims for adjustment. List responsibili- formed of the aid and protection given by agencies or ties of consumer as well as merchant retailer. Collect organizations. ads from magazines and newspapers. Make a display showing informative and noninformative ads. Discuss Instructional Materials and write what information, in your opinion, should be Illinois Teacher for Contemporary Roles, Vol. XIV, No. 6, given in a newspaper ad, TV commercial, or radio adver- July-August, 1971. Home Economics Education, Univer- tising. sity of Illinois, Urbana, Illinois. Develop a care and maintenance chart for daily, weekly, and monthly care of clothing after wearing. Show sea- Selecting Teen Fashions, Selecting Infants' and Children's sonal care and storage facts. Investigate and compare Clothing, Fashion filmstrip and Kaleidoscope magazine professional dry cleaning and laundering costs versus (issued each Spring and Fall). Consumer Information ,- do-it-yourself coin-operated dry cleaning and launder- *)Services, Sears, Roebuck and Co., Dept. 703-Public ing. Obviously, there is a saving in coin-operated ser- Relations, Chicago, Illinois 60611. 30 Managing Your Clothing Dollars. Money Management In- Department, National Association of Manufacturers, 277 stitute, Household Finance Corporation, Prudential Pla- Park Avenue, New York, New York 10017. za, Chicago, Illinois 60601. Information on consumer products and services.

Garrett, Pauline G., and Edward J. Metzen. You Are A HEALTH SERVICES, DRUGS, AND COSMETICS Consumer of Clothing. Ginon and Company, Boston, Massachusetts; 1967. Adequate health is vital to physical, psychological, emo- An aid to developing competence as a consumer of tional, and social fitness. Dollars spent to reach the goals goods and services in a modern economic society. of the best possible health are profitable investments not only in ourselves and our families, but also in the overall Dunn, Lucille, and Annetta Bailey, and Wanda Vansickle, vitality and strength of our communities and our country. Ph. D. Steps in Clothing Skills. Charles A. Bennett Co., Medical science has made startling advances in controlling Inc., Peoria, Illinois:1970, Chapters 11, 12, 13, and disease and promoting good health for everyone. Costs for 14: medical care and the maintenance of good health continue "Your Wardrobe 'Inventory"' to rise in the United States. These rising expenses make it "When You Shop" clear that a financial plan to cover health costs is both "Clothing Care - The Easy Way" helpful and necessary. "Storage Know-How" Many products and services that involve the health and Wingote, Isabel,B. Testile Fibers and Their Selection. welfare of individuals are available. What good health is rentice-Hall, Inc., Englewood Cliffs, N.J. 1970, Sixth and how it is achieved through the use of these products Edition. and services should be a concern of all. Give fabrics, their composition, performance, care, Consumers spend a substantial portion of their income and criteria for selection. on cosmetics and beauty aids. To achieve maximum satis- Craig, Hazel T. Clothing:A Comprehensive Study. J. B. faction, consumers must exercise sound judgment in the Lippincott Company, Philadelphia, Pennsylvania, 1968. purchase of these products. Recognizes social and technological changes which influence choice-making in clothing selection. Objectives Fashions and Fabrics. Educational and Consumer Rela- To help students: tions, J. C. Penney Co., Inc. New York, New York, New * understand suggested health practices for each stage York 10012. of the life cycle * identify ways to help build and preserve the best pos- TIPS:A Handbook. Market Development Distribution sible health 31 * know where and how to obtain professional advice 2. Selecting health services and treatment Medical care * develop guides to use in selecting professional ser- Dental care vices and facilities Physical activity * understand the alternatives available in paying for Satisfying work health services Play and recreation Rest and relaxation * recognize that a financial plan to cover health costs is Nutrition, both helpful and necessary * utilize health services and information available at lit- 3. Planning for health care tle or no cost; such as, community health agencies, (See section on Insurance) local or state health departments, welfare depart- 4. Choosing medical care services ments, profesgional organizations, and societies Choosing a physician, dentist, or other *become aware of and evaluate supplementary health professional personnel aids that are available on the market today Qualifications * become aware of fraudulent health practices and Location of office products Fees, costs, and payment methods * understand factors that influence the buying of drugs Hospital affiliation and cosmetics Selecting hospital services recognize that drugs are potent substances that may Roomsprivate, semi-private, multiple help or harm the body Rates Facilities Outline of Content Using community and tax-supported health 1. Maintaining good health services Definitionphysical, psychological, and Treatment and out-patient clinics social well-being Homemaker health aid services Inherited traits Community mental health cert4qrs and Physical fitness hospitals Balanced diets Diagnostic Clinics Regular examination TB Mental and emotional stability Cancer Social well-being t,. Defective eyes 32 Defective teeth Unlicensed practitioners Others Health quackery 5. Sources of information and protection Deceptive and unethical selling practices Government agencies Unapproved 'tealth aids and devices Illinois Suggested Activities Department of Education and Registration Department of Public Aid A study of federal, state, city, and county public and pri- Department of Mental Health vate health services available in the community, listing Other state, federal, and local agencies services performed, who performs them, and whether they are public or private. Professional associations Illinois Medical and Dental Associations Investigate the procedure in your community for obtain- Other national, county, and local associations ing the emergency services listed below. Secure the proper telephone numbers and check to make sure that Other health associations an&societies these numbers are written down in your home' near the Cancer telephone: Heart Muscular Dystrophy (a) a physician if.your own doctor is not available (b) ambulance service 6. Drugsprescription and over-the-counter (c) poison antidotes Use and misuse (d) paramedics Safety of drugs (e) hospital emergency room Drug records Make a comparative study of costs of doctors' and/or Storage of drugs dentists' fees in the local areas, Buying of drugs Invite a representative of the Office of the Attorney Gen- 7. Cosmetics eral to discuss the various aspects of consumer fraud Essential and protection in the marketplace, expressing current Supplementary information on court decisions and legislative enact- Mass media influence ments. Selectionessential vs. nonessential Prepare and administer a survey to find out how students 1 basic vs. supplementary spend their money on drugs and cosmetics. Using this 8. Deceptive and fraudulent practices in health and information, construct a graph showing how much is medical care 9,0 spent on each item. Health aids o Use brainstorming to determine the factors that influ- 1 33 ence the students to buy cosmetics (magazine, TV, ra- Today's Health Magazine. American Medical Association, dio, other). Collect and mount on the bulletin board sev- 535 North Dearborn Street, Chicago, Illinois 60610. eral examples of the mass media influences on buying A monthly magazine with informative articles regard- cosmetics. ing a variety of today's critical health problems, is- Identify the sales appeal OT two brands of either a drug sues, and practices. or cosmetic product (example, hair spray, soap, aspirin, Mechanical Quackery. American Medical Association, etc.). Compare the appeal used with the effectiveness of Department of Investigation, 535 North Dearborn, Chi- the product as determined by independent testing agen- cago, Illinois 60610. cies. A brochure illustrating some mechanical devices Prepare list of Federal, state, and local law enforce- used to defraud the public. ment agencies responsible for the safety of drugs and Fads, Myths,. Quacksand Your Health. Public Affairs cosmetics, indicating services performed. Pamphlet No. 415, February 1968, Jacqueline Seaver, Develop criteria for the selection of prescription and Public Affairs Committee, Public Affairs Pamphlets, 381 over-the-counter drugs. Park Avenue, New York, New York 10016. List and discuss guides for buying drugs and cosmetics. Discuss some of the health and safety services provided RECREATION by state and local governments. Consumers have at their discretion large amounts of Arrange a panel discussion on ways of reducing health time that can be consumed in many ways. Time can be costs. used for meaningless activities or for recreating activities. Discuss the dangers of treating oneself when RIList and Using personal time wisely requires knowledge of alterna- discuss the elements in a good personal health program, tive ways of using nonworking time, skills in selecting and including a regular physical examination and dental using recreational activities, and beliefs that recreational care. activities are a part of one's plan for a better life. Discuss the differences between an oculist, optometrist, Objectives and and optician. To help students: Instructional Materials * analyze practices and preferences for spending non- Teacher References working time FDA Papers.. Food and Drug Administration, U.S. Depart- * consider the alternative activities that can be per- ment of Health, Education, and Welfare, Washington, 0 formed during recreational time

D.C. 20204 * understand the recreational markets that are bidding 1 34 for leisure-time dollars 3. Recreational activities as a supplementary source of * consider the cost factors of fun-time in relation to the income entire financial plan Arts and crafts * determine the opportunity cost of leisure time Services * consider the alternatives for spending time, money, Suggested Activities and energy; and consider the effect of their decisions Write an essay:"What I like to do best in my nonwork- on themselves, their families, and their community ing time. Why?" Outline of Content Projects and topics for investigation and discussion: 1: Guidelines for selection of recreational activities (a)fly or drive? Kinds of recreation (b) go now, pay later Passive vs. active (c) car rental Physical vs. sedentary (d) cost of teenage activities Individual vs. group (e) winter sports plunge (f) camping costs Recreation to strengthen abilities and overcome (g) money for three-day weekends weaknesses (h) party prices Recreation that leaves one something worth re- (i)bicycle security membering Keep a time log to see how much time is spent on recre- Recreation that helps others as well as oneself ation. Examine the log to see if this time can be im- Ecology drives proved. Charitable groups Recreation that continues and develops as one Instructional Materials grows older Consumer Reports. Consumers Union of the. U. S., Inc., Recreation involving community resources Mount Vernon, New York 10550. 2. Financial resources for recreation Suggestions for purchasing a recreational product or Credit vacations and travel service may be found in almost every issue of this Insuring recreation equipment and personal inju- monthly publication. The annual guide, The Buying. ries resulting from recreation Guide Issue, has selections entitled, "The Outdoor Installment buying of recreational products Recreation and Home Entertainment." Planning recreational activities in relationship to 4 /Changing Times. The Kiplinger Service for Families, 1729 total income H Street, New York, New York. 35 Each issue of this magazine suggests helps for recre- payments ation. * recognize that planning the purchase of some furnish- Consumer Education Programmed Learning Instruction in ings and appliances involves the costs related to buy- Using Leisure Time, Energy, and Money. Delta Pi Epsi- ing, delivering, installing, operating, and servicing lon National Office, Gustavus Adolphus College, St. Pe- * learn to recognize the levels of quality and be able to ter, Minnesota 56082. decide when quality is a factor for choice Money Management, Your Health and Recreation D6Ilar. * understand the promises of servicing and adjust- Money Management Institute, Household Finance Cor- poration, Prudential Plaza, Chicago, Illinois 60601, ments made on warranties and guarantees 1968. * become aware of how planned shopping skills can The Time-Life Book of Family Finance. Chapter 8: help consumers make the most of their dollars Vacation, Time-Life Books, New York, New York * understand and develop an intelligent use of credit 1969. plans available' Life, "The Endless Weekend," September 3, 1971. * become knowledgeable of their consumer rights and Magazines dealing with specific recreational activities. responsibilities * find sources of help when fraudulent consumer prac- FURNISHINGS AND APPLIANCES tires are encountered Furnishings and appliances compose one of the major * realize that proper use, care, and maintenance can purchases made by individuals and families. It is neces- add to the life of furnishings and appliances sary that students be made aware that these purchases are Outline of Content usually acquired over a period of Several years. Acquiring 1. Features of furnishings and appliances skills in decision-making will enable students to evaluate the alternatives in a rapidly changing society where there Function are a multiplicity of choices. Quality of construction and finish Design, color and texture, durability Objectives Multiple uses To help students: Comparative cost Installation possibilities * develop the ability to make satisfying selections of Care and servicing requirements furnishings and appliances according to social, psy- Insurance for servicing chological, and economic needs of self and family 41 Parts available * understand the importance of planning costs and Ease of mobility 36 Safety Regular and periodic maintenance Warranties, guarantees, seals Operating costs Labels and hangtags Ecology waste 2. Factors affecting choices in buying furnishings and appliances Suggested Activities Architectural features Ask students to take into consideration their lifestyles Design style of home or apartment and list furniture they think would be needed for a three- Size, number, and arrangement of rooms room apartment for: Division of spaceceiling heights, etc. (1) two college coeds sharing an apartment Available storage (2) young bachelor architect Type and number of utility connections (3) newly married couple Advertising (4) couple with new baby TV and radio Using newspapers, catalogues, and magazines for furni- Peer group ture and price references, estimate the cost of furnish- Periodicals and books ings for each. Salesmen Make a shopping check list, "What to Look for When Model homes, store and window displays Buying Furniture." Visit at least three different types of 3. Financing and payments stores selling furniture. Use check list to investigate Cash styles and prices. Read labels and tags for description of Retail credit terms woods and finishes. Note variation of prices with quality Loans (bank, credit union, loan company, and construction. parents, etc.) Make a bulletin board of furniture qualities and costs. 4. Consume information and protection Use tentative budget levels, $500, $1,000, or $1,500. Comparative shopping Show best quality of furniture you can buy to furnish a Warranties and guarantees bedroom and living room for each level. Insurance for servicing Divide into groups, investigate major appliance stores Local, state, and Federal laws including catalogues. Compare variety of brands and Sources of community help styles for: Performance 5. Care and maintenance Quality of construction Proper use of appliances 4G Style and special features Services needed Installation possibilities 37 Availability of servicing Use check list. Select comparison shopping committees Service insurance to compare prices of well-known brands of appliances. Overall costs Report on such stores as chain, specialty, department, Financing and payments mail-order houses, discount stores, and door-to-door Delivery service salesmen. Have a panel discussion on information. De- Warranties and guarantees termine advantages or disadvantages, if any, of buying Safety qualities at the various stores. State factors which would influ- Ease of mobility ence your personal choice of the store to buy your appli- Obtainallavailable information; operating manuals, ance. What factors might influence choice of store for specification sheets, sales brochures. 1-1,.port and have certain income levels? class discussion. In view of all information, what factors Make a flannel display board of labels, samples of war- would you consider most important to consider in mak- ranties, seals, hangtags, collected from previous family ing a buying choice. Explain your reasons. purchases or obtained from stores. Analyze and discuss Invite resource people to talk on selection of furnishings the function of each and information it should contain. and appliances. Draw up a list of standards or information you would Divide into groups, with each group selecting a major recommend for a label or hangtag for a small household appliance to research information from utility compa- appliance. nies, consumer reports, educational divisions of compa- Role-play:the return,ng of an unsatisfactory piece of nies, for all available information. Make buying guide furniture or small appliance which has not performed as check list for each appliance, taking into consideration: guaranteed; the securing of service for an appliance Construction covered by a warranty. Evaluate and comment on con- Space needed sumer and dealer responsibilities. Write down the cor- Installation possibilities rect procedure to take in both cases. How long is it needed? Visit an industry to determine how its products are de- Ease of mobility signed and tested for safety. Does it bear a seal of approval? Use Cite examples of accidents caused by products having Space available features that are unsafe unless precautions are taken in Size, style, and special features their use. Since many accidents are cuased because Safety features persons did not read or follow directions, suggest ways Ecological facts 4.0 in which consumers should be made more aware of their Long-and short-term goals responsibilities. 38 Invite a home economist from a local utility company to Roebuck and Co., Dept. 703-Public Relations, Chicago, explain the use of their safety features of major appli- Illinois 60611, 1971. ances, how they are meeting the ecological require- A guide for choicemaking in selecting small appli- ments, and ways the average consumer can help elimi- ances with pertinent information on care and use. nate pollution in use of major appliances in the home. Obtain a sample service insurance policy. Examine it for Insurance the approximate amount of servicing offered for the life of the appliance and length of insurance. Find out labor Students have many experiences with insurance: as costs of servicing in your community. Consider differ- participants in the school's accident and sickness insur- ences in cost of insurance versus servicing without in- ance program; as policyholders of automobile insurance; surance. Weigh differences of costs and circumstances as beneficiaries of life insurance policies; as members of a as to the advisability of having a service insurance. family health insurance plan; and as recipients of social security benefits. In addition, students soon will be, or al- ready are, buying life, health, and property insurance and Instructional Materials making contributions to social security. To make intelligent Morton, Ruth, and Virginia G. Geuther. The Home Its choices in buying insurance, students need to know the Furnishings and Equipment. McGraw-Hill, New York, risks of financial loss that they face, the methods by which New York 1970. they can minimize these losses or receive reimbursement Planning, choosing, and buying home furnishings and for them, the methods to use in determining need for insur- accessories. ance coverages, the types of insurance and insurance poli- Thal, Helen, and Melinda Holcombe. Your Family and Its cies needed for insurance coverages, types of insurance Money. Houghton Mifflin Co., Boston, Massachusetts coverages, the types of insurance and insurance policies 1968. available to meet their needs, and the basis for choosing Values, goals, standards, cultural differences, deci- specific types of coverages. sion-making to meet needs and solve problems. Objectives Your Home Furnishing Dollar, Your Equipment Dollar. Money Management Institute, Household Finance Cor- To help students: poration, Prudential Plaza, Chicago, Illinois 60601. * understand the basic idea, purpose, and importance Shows how to set up individual or family goals, recog- of insurance in financial planning nizes values, gives information for planning money * know the risks of financial loss that individuals face management for intelligent buying. and be able to assign appropriate priorities to these Ludwig, Amber C. Portable Appliances:Their Selection, risks as a means of assuring proper allocation of in- Use, and Care. Consumer Information Services, Sears, 4 4 surance funds 39 * understand the reasons for waiting periods, deduct- to meet one's needs ibles, participating and nonparticipating policies, and * know the risks that one faces with respect to owner- insurable interests ship or property and the amounts of coverage needed * know the expense categories that must be considered for these risks

when buying insurance against premature death of -t, understand the uses of homeowner's and tenant's pol- the wage earner and know how to determine the icies for personal and real property, and the appropri- amount of life insurance needed to supplement other ate form to buy types of death benefits * know the specific coverages in an automobile insur- * understand when to buy "all protection" insurance ance contract, and the appropriate amounts of insur- and when to buy "protection-plus-saving" insurance, ance for each of these coverages, and the costs of know the different types of policies available, and be the coverages know the specific coverages in motor- able to select the most appropriate policy coverages cycle policy * understand the nonforfeiture options, dividend op- * know how to choose automobile insurance compa- tions, settlement options, grace period, waiver of nies premium riders, and double indemnity riders as con- tained in life insurance policies Outline of Content * use guides in choosing life insurance companies and 1. General considerations agents Basic idea and purpose of insurance: * understand the role of social security in planning indemnification of financial losses one's life insurance program, know the benefits avail- Insurance as an aid in attaining life's goals able through social security, and know the eligibility requirements for these benefits Risks of financial loss Loss of income * understand the purpose of annuities, the types avail- death able, and the uses of annuities in one's financial plan- illness ning disability know the risks that one faces regarding sickness and retirement of breadwinner accident, appropriate priorities for these risks, and unemployment the forms of health insurance to buy as protection Sickness and accident expenses against speCific types of risks hospital * know the most important provisions in health insur-4 medical ance contracts and how to select specific coverages surgical 40 Personal and public liability for life insurance coverages injury to other persons Survivors' benefits damage to other people's property Eligibility for survivor's benefits Loss of real or personal property Amounts of survivor's benefits provided fire Determining amounts of life insurance needed acts of God Determine the expenses to be covered theft in each expense category misplacement Use a work sheet or rule of thumb to accidental destruction arrive at specific amounts of coverage Damage to real or personal needed fire "All protection" insurance - term policies other acts of God Nature vandalism Characteristics accidental damage Appropriate uses Priority listing of risks in order of severest "Protection-plus-saving" insurance - nature, financial strain on the family budget characteristics, and uses 2. Life insurance and annuities Straight life Coverages needed upon death of the breadwinner Limited payment life Cleanup expenses Endowment debts Combination policies and special policies last-minute illness costs Participating and nonparticipating policies burial Contract provisions in life insurance policies estate settlement, Nonforfeiture options Family living expenses Dividend options House mortgage Settlement options Education expenses for children Grace periods Widow's income between the time family Waiver of premium riders social security payments stop and social Double indemnity riders security retirement benefits begin Choosing life insurance companies and agents Supplementary income during widow's Annuities retirement Types Social security benefits that reduce the need 4. Characteristics 41 Uses Homeowner's and tenant's policies Advantages Forms Disadvantages Specific coverages Appropriate amounts of coverage 3. Health insurance Costs Sickness and accident risks Policy provisions Hospital 5. Automobile insurance Medical Specific coverages and suggested amounts Surgical of coverage in automobile insurances Loss of income Costs of specific coverages in automobile Priorities in buying coverages for sickness insurance and accident No-fault automobile insurance Group health insurance plans (types and costs Provisions and coverages), including workmen's Costs compensation, medicare, and medicaid Desirability Policy provisions in health insurance Choosing automobile insurance companies Waiting periods Length of time benefits will be paid Suggested Activities In-patient and/or out-patient coverages Use the programmed learning materials for the insur- Recurring illnesses ance unit. Cancellation or renewal provisions Prepare a duplicated list of risks of financial losses and Disability definition ask students to rate these risks in order of severity of Deductible provisions possible losses. Co-insurance provisions In the following situations, discuss the amount of reim- Major medical insurance policies bursement that should be received and relate this to the Comprehensive health insurance policies idea that insurance is designed to indemnify financial Fraudulent practices in medicare and losses. health insurance (1) total destruction of a $3,000 automobile (2) theft of a $50 raincoat 4. Property insurance (3) $5,000 damage to a house Risks of financial loss because of property (4) a $2,000 hospital bill ownership or property occupancy 4 7 (5) the death of a father and wage earner 42 Drill on definitions of insurance vocabulary by requiring Show on the overhead projector the following clauses in designated class members to have definitions ready on a life insurance policy. certain days. Keep a list of these terms on the chalk- board and review definitions as necessary. (1)nonforfeiture options Use the Consumers Union Report on Life Insurance to (2)dividend options identify the expense coverages needed upon the death (3)settlement options of a breadwinner or assign a committee the task of iden- (4)grace period clause tifying and explaining the needed coverages. (5)waiver of premium rider (6)double indemnity rider Invite a speaker from the Social Security Administration to explain the benefits and the eligibility requirements for Report on the requirements for becoming a Chartered survivors of a deceased breadwinner and for disabled Life Underwriter. workers. Ask that copies of "Your Social Security" be From a life insurance rate book, compare prices of life provided for each class member. insurance policies for several companies. To determine the amounts of life insurance coverages Survey the local community and.obtain a list of insur- needed upon the death of the breadwinner, use the plan- ance brokers who are permitted to sell life insurance for ning work sheet in the Consumers Union Report on Life more than one company. Insurance, the work sheet in Everybody's Money, Fall, Invite a life insurance agent to speak to the class on the 1971, or prepare a work sheet that can be used for the various types of annuities and their uses in family finan- specific class being taught. cial planning. Use life insurance rate charts (obtain copies of last Obtain a copy for each student of "A Family Guide to year's life insurance rate bookssuch as Little Gem or Property and Liability Insurance." Obtain also the record Best's Flitcraft Compend) to compare rates, for term, and filmstrips that accompany the pamphlet. Use these straight life, limited payment life, endowment, and spe- materials as the basic textbook for property and liability cial policies. insurance. Obtain copies of homeowner's and tenant's policies for Invite a life insurance agent to come to class and to in- students to analyze or show parts of the policies on the terview one of the boys to help him plan the type of life overhead projector for analysis purposes. insurance coverage he needs. Invite a casualty insurance agent to the class to discuss Discuss the circumstances under which a family would coverages and costs for property and liability insurance. be advised to purchase each type of life insurance poli- Work several problems using the co-insurance factor cy. 48found in property insurance policies. 43 Ask students to take an inventory of the personal proper- The Consumers Union Report on Life Insurance. Consum- ty and the values of the property in one or more rooms of ers Union of U.S., Inc., Mount Vernon, New York, distri- their homes. From a discussion of these lists, establish buted by Harper and Row, 49 East 33rd Street, New the need for keeping such an inventory. York 10016, 1967. Collect and discuss articles from the new.'s.per report- A complete ante accurate discussion of life insurance ing on liability suits. needs and types of coverages available, including Discuss the dollar amounts of coverage that most auto- comparison of costs. mobile owners should have. Use articles from Changing A Family Guide to Property and Liability Insurance. Insur- Times, from Evr rybody's Mon 3y, or use tables from text- ance Information Institute, 110 William Street, New books to show the relationship between increased liabili- York 10038. ty coverages and increased premiums. A pamphlet, two records, and two filmstrips available. Discuss the relationship between the amount of the de- A complete teaching package that can serve as total ductible and the amount of the premium for automobile, resource materials for property and automobile insur- property, and health insurance. ance. Multiple copies of pamphlet may be requested. Show on the overhead projector the actual policies of Sample policies of homeowner's insurance and of some of the students or their parents, and discuss the automobile insurance are also available from the In- cost of coverages for automobile insurance in the local stitute. Filmstrip and records entitled, "Patterns for community. Protection" and "Automobile Insurance," are also available. Invite an autombile insurance agent to the class to dis- cuss the provisions and costs of no-fault insurance. Changing Times. Editors Park, Maryland 20782. Survey several automobile insurance companies and A monthly periodical with frequent articles on insur- make a comparison of the costs of the specific cover- ance coverages and comparisons of cost for various ages from each of the companies. types. Everybody's Money. CUNA International, Madison, Wis- consin. Instructional Materials A periodical published four times a year containing Programmed Learning Instruction in Making Use of Insur- easy-to-read material on all aspects of consumer ance. Delta Pi Epsilon National Office, Gustavus Adol- education. phus College, St. Peter, Minnesota, 1971. Your Social Security. Social Security Administration, U.S. Linear programmed test material that permits individ- Government Printing Office, Washington, D.C. ual study of insurance ideas. An instructor's manual A summary of eligibility requirements for receiving is available for all units. 49 social security benefits and sample illustrations of the 44 benefits that would be received under specified con- self; that budgeting money to income-producing as- tribution levels. Local social security offices usually sets is investing, hopefully, to product additional in- have multiple copies of this pamphlet. come; and that purchasing durable goods is an in- Policies for Protection. Institute of Life Insurance and vestment in living Health Insurance Institute, 277 Park Avenue, New York, * recognize the obstacles and pitfalls in savings and New York 10017. investments Sample life and health insurance policies. * develop the ability to evaluate valid and reliable in- vestment and savings information resources Savings and Investments * to become acquainted with the different ways of sav- The youth of today contribute significantly to the produc- ing and investing money, and to gain knowledge anC tion of income in this nation. Their economic importance is insights into the various types and kinds of savings even greater as consumers. Much of the income which this and investment outlets group spends may be thought of as discretionary. That is, it * understand and appreciate the importance of ex- is income used to purchase goods other than necessities. pressly establishing goals in establishing savings and It is also out of discretionary income that a savings and investment program investment program must evolve. It has been said that what a person accomplishes at a par- Outline of Content ticular stage of his life cycle will depend in large measure on 1. The importance of' savings and investments his accomplishments at earlier stages. The accumulation of To the individual and his family wealth the possession of a variety of goods and services con- To the economy tributing to a comfortable level'of living, and the attainment of financial security will be determined largely by the individual's 2. Obstacles and Wfalls in savings and investments successfulness in his savings and investment program. The Personality and attitudes individual's assumption of the responsibilities of adulthood in Criteria for evaluating savings and investments: an able, confident, and resourceful manner can be greatly Safety facilitated by an understanding of the role, importance and Rate of return implementation bf savings and investments. Liquidity or availability 3. Savings and investments media Objectives Investing in yourself To help students: Economics of an education * understand the importance of savings and investing, 5 Financing an education recognizing that education is an investment in your- Government training 45 Savings accounts savings and investment decisions? Banks What are the advantages and disadvantages of dif- Savings and loan associations ferent savings and investment media? Credit union What is financial security? Investing in securities Prepare a written or oral report on the reasons for, pur- Real estate as an investment pose of, and advantages of saving and/or investing. Mutual fund investments In Vesting in a business Utilizing all possible sources of information, prepare a Government bonds written report on one of the following: Insurance policies Savings account, government bonds, credit union Annuities shares, common stocks, preferred stocks, corporate Investing in goods and commodities bonds, municipal bonds, mutual funds, investment 4. Savings and investment information companies, pension plans, insurance policies, Brokerage services straight and variable annuities. Periodicals Include type, coverages, and sources, where appro- Books priate; evaluation of information available; advan- Advisory services tages and disadvantages of each. 5. Stages in the life cycle as they apply to objectives or Newspapers and magazines frequently have articles goals for use of income about securities, companies, or industries. Make a collection of those articleseither for a scrapbook or a Suggested Activities bulletin board displaywhich will give a greater insight Discussion: into the operation of the stock market. How is net worth determined? Investigate the statement, "All persons should not invest What is the purpose of savings? or save in the same way," by asking family and friends Why is the establishment of a savings program diffi- about their attitudes, opinions, and beliefs about the var- cult.for some individuals and families? ious types of savings and investment media. Relate this What does investing mean? information to stated short-and long-term financial goals Why should money be put aside for future possible of these persons. Prepare a written report on the find- use? ings. What is the relationship between safety and rate of Public school buildings are often financed by bonds. return in savings and investments? Check with the superintendent of schools, the boa d of How are information resources evaluated in making education secretary, school district clerk, or somECt:rther 46 local school official for answers to the following ques- changes, stock brokers, or film services for showing to tions:Why were the bonds issued? When? What per- class. Films are available on stock exchange operations mission was needed to issue them? What is the interest and to portray individual and family investment situa- and interest rate on them? When will they become due? tions. Is the money being set aside to pay for the bonds and Use games in classroom for simulating career and living interest? How much? Where does the money come conditions experiences with simulation games such as from? Ghetto and Life Career, both available fr,oi-n Western Through a program called Junior Achievement, students Publishing Company, Inc., School and Library Depart- can get a real experience in forming and operating a ment, 85p Third Avenue, New York, New York. business, at the same time, perhaps make some money. If you cannot locate people locally in this program, write to: Instructional Materials Junior Achievement, Inc. Wall Street Journal. 915 Hemlock Street, Highland, Illinois 909 Third Avenue 62249. New York, New York 10022 National Business. Daily, $35.00 per year. Establish and operate a credit union in the class through Barron's. Dow-Jones and Company, 200 Burnett Road, either actual student participatidn in savings and lending Chicopee, Massachu._ ins 01020. or role-playing. Weekly, $18.00 per year. Adapt commerical games, such as Stocks and Bonds, Business Week. 330 West 42nd Street, New York, New 3M Company, Box 3350, St. Paul, Minneosta 55101, for York 10036. class use. For instance, allocate to each student an Weekly, $12.00 per year. imaginary sum of money for investment in a selected Forbes. 60 Fifth Avenue, New York, New York 10011. group of actual stocks for a 3-, 4-, or 5-month period. Twice monthly, $9.50 per year. Permit transactions an'dport prices on a weekly basis. Changing Times. 1729 H Street, NW, Washington, D.C. Have each student prepare a report summarizing his 20006. experience. Monthly, $6.00 per year. Assign different groups responsibility for a report on a The Exchange. New York Stock Exchange, 11 Wall Street, savings and investment program for a college student, a New York, New York 10005. newly married couple, a family with two young children Monthly, $2.50 per year. and a retired couple. Present these to class for sugges- ,Journal of Commerce. 99 Wall Street, New York, New tions, recommendations, and comment. G York 10005. Obtain one or more films on investing from stock ex- Daily, $36.00 per year. 47 Doane, C. Russell. How to Invest Wisely. American Insti- Fact Book. Savings and Loan Institute, 221 North LaSalle tute for Economic Research, Great Barrington, Massa- Street, Chicago, Illinois 60601. chusetts. 1970. International Credit Union Yearbook. CUNA Interna- Background information, principal types and classifi- tional, Inc., 1617 Sherman Avenue, P. 0. Box 431, cations of investments and discussion of individual's Madison, Wisconsin 53701. program. Taxes Doane, C. Russell, and Edward J. Hills. Investment Trusts and Funds from the Investor's Point of View. American Consumers today are deeply concerned over the rela- Institute for Economics Research, Great Barrington, tionship of tax costs to economic and social benefits. Massachusetts, 1970. Heavy tax liabilities and differing views on the use of tax Discussion of these media from investor's viewpoint. dollars bring about a need for careful, critical analysis of tax structures at all levels. These structures involve laws Engel, Louis. How to Buy Stocks. Bantam Books, New used as tools by government officials to collect and distrib- York, New York, 1969. ute revenue. Since consumers provide tax revenue, they Leads to a basic understanding of stocks, bonds, the should expect it to be used to promote mass economic and securities markets, and the meaning of investments social benefits which facilitate their well-being. Consumers in easily understood language. should understand tax laws well enough to engage in a Money Management, Your Savings and Investment Dollar, continual evaluation and comparison of dollar costs versus Your Guide for Teaching Money Management. House- benefits. An u'hderstanding of taxation should lead to ap- hold Finance Corporation, Money Management institute, propriate action with respect to solution of personal tax Prudential Plaza, Chicago, Illinois 60601. problems as well as intelligent appraisal of governmental "Concept 6" Savings, Insurance, and Investments- policies at the local, state, and Federal levels. gives specific generalizations and learning experi- Objectives ences for this area. Portfolio of Teaching Aids. New York Stock Exchange, To help students: School and College Relations, 11 Wall Street, New York, * realize that intelligent participation in the system is New York 10005. based on the knowledge that consumers ultimately A copy of licit and the Investment World may be ob- pay all taxes; therefore, they should have deep con- tained for each student. Order in advance. cern for the tax laws under which dollars are collect- Fact Book. Investment Company Institute, 61, Broadway, ed and the policies used to distribute those tax dollars New York, New York 10006. * understand that public facilities and services at all Current information on mutual funds and investment levels are provided and maintained through expendi- companies. J3 tures of monies received from taxes 48 * recognize the necessity of the maintenance of accu- Uses rate, complete records and legal responsibilities Administration of local government units placed on consumers by Federal, state, and local tax and services such as police, fire, laws recreation, welfare, and other ancillary * recognize the necessity for analyzing both costs and services benefits of taxation and if necessary, to initiate polit- Development of educational facilities and ical action which will minimize costs and enhance services benefits Provision of locally owned utility services * understand that government in a basically free order 3. State tax revenue should be responsive to those governed by providing Sources these goods and/or services that either cannot or are Personal income tax not available through the private sector or make pos- Fees, licenses, and tax on motor vehicles and sible economics of a magnitude greater than other- fuel wise available Fees and licenses on sportsmen Fees, licenses, and tax on distributors and users of liquor Outline of Content Occupational tax on retailers 1. Taxation as a sharing process State service taxes such as utility Common needs for goods and services State insurance fees and social taxes Sources of tax revenuewho will pay? Illinois racing fees and licenses Enactmentof tax law Other Redistribution of tax revenuewho will share? Uses Influences of taxation on social and/or fiscal poli- Administration of state governmental units cies and services such as education and welfare 2. Local and county tax revenue State highways and other services such as po- Sources lice Real property and personal property tax organization, regulation, and services of Industrial property tax state game and fish commission Retail sales and excise tax State agencies and services such as police Local service taxes such as utility Provision for group insurance such as health Personal income tax 5 and life for state employees Other Administration and control of racing industry 49 4. Federal tax revenue city or state budget which has been submitted for ap- Sources proval. Assume that a one million dollar tax revenue bill Personal income tax has just been voted down by the public; therefore, this Corporation income tax amount must be cut from the budget under consider- Excise tax ation. Allow each group of students to determine what Inheritance and gift tax they would cut from the budget, supported by the justifi- Other cation for their proposed cut(s). Following discussions Uses and formulation of policy, each small group could review Administration of Federal governmental their decision with the entire class. agencies For a variation, assume that a one million dollar tax bill Federal regulation and services such as has just been passed and additions may be made to the defense, health, education, and welfare, budget. Permit students to create and justify proposals social insurance, court systems, and for new or extended budget. other related services Develop a list of benefits provided from tax dollars now 5. Consumer tools for analysis of tax structure being spent. Calculate the individual and/or public cost Effect of tax structure on personal incentives of each benefit and compare that cosi with the estimat- .lersonal economic costs versus corresponding ed private cost for the same benefit. personal benefits Allow individuals to calculate their own tax liability Social economic costs versus corresponding through the use of resource materials found in "Teach social benefits ing Taxes." Use both a short and long form and compare Effects of regulatory functions on growth and the difference. Calculate the per hour rate for personal stability recordkeeping in terms of tax dollars saved. Costs of collection compared to yield efficiency. Have a panel discussion on the following subjects: (1) Criteria useful in determination of the equity of Identify three government services now provided for tax burdens consumers and demonstrate how private industry might Criteria useful in determination of the equity, of provide these services at a lower cost and/or with great- tax redistribution er efficiency. (2) Select one or two services now provid- Cause-effect relationship of surpluses and/or ed privately by business P id demonstrate how govern- deficit spending mental provision of these services could be handled more economically and/or efficiently. Suggested Activities 5 Discuss the following topics: Invite small groups of students to work with a current 1. Should private, nonprofit institutions be required to 50 pay taxes on income? sectors of the economy. 2. Should the law allow "business expense deduc- Teaching Taxes. Internal Revenue Service. (Available from tions" when money is spent primarily for personal local office.) pleasure? Are there ethical considerations which Packet of instructional aids including wall charts, stu- go beyond the law? How do these deductions af- dent materials, teachers solution manual, and re- fect other consumers? sume of income tax laws. 3. Could a person's tax liability become heavy enough that he will refuse to work as hard or earn The Consumer in Society as much? Assuming his production falls because The consumer is the foundation of economic activity in incentive has been reducedhow does this affect the United States. It is important that young people in our other consumers? country be knowledgeable regarding the consumer move- 4. Do taxpayers receive fair dollar value in the form ment and be aware of the rights and responsibilities of the of facilities and services for tax dollars spent? consumer. To meet the often conflicting goals of Justice, Freedom, Stability, Security, and Growth, it is necessary to Involve students in consideration of taxpayer responsibili- have a well-informed consuming public. Attainment of ties for care and maintenance of public facilities as well these goals depends largely on effectively teaching young as wise consumer use of public services. Could tax sav- consumers how to convert their resources into goods and ings be realized through responsible consumer action? services which will lead to a better quality of life for them. Are ecological issues important to the consumer? It is afro crucial that the consumer become fully aware of the ir.,pact of public policy decisions on the purchasing Instructional Materials power of his own resources. The following list of suggested resources may provide teacher background and/or student, information useful to Objectives those who study taxation. Consideration should also be To help students: given the extensive listing of resource materials in the last * understand the effect of consumer in the marketplace section of this publication. on the national economy Illinois. Illinois Information Service, Room 406, State Capi- * understand the effect of economic conditions on the tol, Springfield, Illinois. consumer Resources pertaining to Illinois Tax Laws. Road Maps of Industry. National, Industrial Conference * understand the importance of government participa- Board, Inc., 845 Third Avenue, New York, New York tion in the economy 10022. 5 tj* understand the development and progress of the con- Monthly color graphs illustrating changes in various sumer movement 51 * learn how to make use of the aid and protection af- Tax policy forded the consumer by business, government, and Price and wage controls independent agencies and organizations 2. The consumer movement * become aware of the social and economic costs History of consumer movement * understand the impact which governmental controls Growth of consumer interest have on the consumer and how these should effect Consumer interest in the major political parties the consumer's decision-making process Consumer organizations and their political Outline of Content influence Consumer Federation of_Illinois 1. The consumer in the economy Consumer Federation of America Economic activity 3. Consumers and the legal framework Circular flow consumer-producer-marketer-consumer Legislation affecting consumer interests Federal legislation Consumer State legislation User of goods and services Pros and cons of legislation currently Income earner before state and national bodies Investor Government protection of the consumer Consumer's role in determining the nature The need for government protection of and level of economic activity of consumers Products-services mix of the overall economy The extent of Federal and state consumer Profitability protection activities Conglomerates - (multinational corporation) Federal government agencies Production planning Federal Trade Commission Productivity Food and Drug Administration Economic conditions affecting consumers Other Federal agencies Income distribution State and local government agencies Discriminatory practices Illinois Attorney General's Office racial Chicago City Department of Scales sex Other agencies other r,` Inflation 5 4. The social costs of consumption - Ecology Deflation Determining who should pay 52 Determining who benefits most from cleanup "Little Bill" says in the ads than it did twenty years Determining who contributed most to pollution ago? of environment Why can wages go up while the prices of many mass- Determining who benefited most from pollution produced items are decreasing, such as watches, of environment television sets, washers, and refrigerators? Figuring what a person who pays should pay Why is the U.S. one of the richest nations in the The high cost of correction may raise questions world, and how rich are we? as to the efficiency of cleanup Why are people reluctant to borrow in order to go to Suggested Activities _school for further education past high school, while Write an essay on one of the two following topics: almost anyone will borrow for a new car? "How Consumer Decisions Affect Business Policies," or It has been said that money and time invested in an "How Do Government Economic Policies Affect the education is the most valuable capital asset owned by Consumer." most individuals. Explain Conduct a class discussion dealing with the question of Poster Projects to be done large enough to be seen from what consumer protection should be provided by the the back of the classroom. government and what responsibilities should be left to Put up poster board and print the following on them the consumer. with a large felt pen. Assign committees to report on current consumer issues GROWTH - the desire for an increasing standard related to prices, advertising, unions, and government of living for an increasing population regulations. STABILITY - the desire for a high level of employ- Have a student draw the "circular flow" and explain to ment without inflation the class how the flow chart illustrates an economy SECURITY - the desire for continuity of income in which is dynamic; has income and production sides; that the face of physical and economic money is a claimcheck for a contribution to production; hazards one man's income is another man's expense; and the FREEDOM - the desire of producers to select importance of savings and investment. their occupations and of consumers Discuss the difference between what an economist to dispose of their income knowl- means by the word economize and what the average edgeably man on the street would think of the word economize. JUSTICE the desire to minimize inequalities of Have a panel of students discuss one of the following: 5 (1 opportunities and inequalities of in- How is it possible for electricity to cost less today, as come 53 These often conflicting goals help to point out the Instriictional Materials choices economics help us to make. Reproduce the Flow Chart on a larw: shfM of poster The New Poverty. Federal Reser've Bank of Philadelphia, board. Be sure that the letters are enough Public Information Department, Philadelphia, Pennsyl- so they can be read from the bark of the classroom. This vania 19101. is the Economic equivaleht of Chemistry's Periodic Ta- This series covers the problems of the economy and ble. Plan it out in pencil and then use felt pen to darken National Policy-making. the lines. Be sure it is properly proportioned. Two Faces of Debt. Federal Reserve Bank of Chicago, Identify ways in which consumers can accept responsi- Chicago, Illinois. bility in regard to legislation, unfair business'practices, An informative look at the concept of debt when it is or use of customer services provided by business. not a problem. Particular emphasis on the National Debt. Invite a speaker from one of the local offices of a state or Federal consumer protection agency. You, Money and Prosperity. American 'Bankers Associa- Take a survey of the public as to what they would be will- tion, Banking Education Committee, 90 Park Avenue, ing to give up in order to fight pollution of air, water, and New York, New York 10016. land. A study of the role of money and the consumer in the economy. Special emphasis is placed on the effect of Ask a local elected official to speak to the class about spending on inflation or deflation. the problems of pollution and the efforts being made in the community to solve pollution problems. Invite the Consumer Alert. Federal Trade Commission, Washington, mayor or city manager, or other local official to discuss D.C. 20530. with the class the impact of consumer activity or the This publication comes out periodically and notifies lack of consumer activity on the economy of the area. the public of illegal activities which the Federal Trade Commission is investigating.' Gather together Federal, state, and local antipollution A Primer on Good Spending, by Robert L. Heilbroner and laws and investigate the degree to which they are being Peter L. Bernstein. Second edition. Random House, New enforced. In the cases where they are not being en- York, New York, 1971. forced talk to the violator and the enforcer to determine This book was written to defend the Keynesian eco- why they are not enforced or why the violator will not nomics of the Kennedy Administration. It has since obey the laws. been updated and is an excellent discussion of the Research and discuss the current projects of consumer use of fiscal and monetary policy to stablize the econ- advocates. 5 omy. 54 A Primer on Employment and Wages, by Walter Galen son. The Making of Economic Society, by Robert L. Heilbroner. Second edition. Random House, New York, New York, Prentice Hall, Inc., Englewood Cliffs, New Jersey, 1968. 1970. Discussion of the evolution of Economics System and A concise discussion of the problems of manpower the U.S. economy. economics, welfare and poverty in the United States.

60 55 RESOURCES This section contains listings of selected bibliographies program. Students will gain valuable experience in being and other sources of consumer education information and responsible for selection and arrangement of speakers. materials from which additional resources may be ob- Colleagues, administrators, and parents serving as re- tained. It is suggested that a variety of resources be incor- source personnel and guest speakers will give variety and porated into the instructional program for a multimedia dimension to the program. Representatives of consumer- approach. related agencies and associations will serve as guest Consideration should be given to the many human re- speakers in addition to disseminating information in the sources which are available. Students may provide numer- form of films, filmstrips, brochures, and pamphlets in ous illustrations, personal experiences, and news clippings classroom quantity. which will enrich classroom discussion E s well as the total

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57 SELECTED BIBLIOGRAPHIES AND OTHER SOURCES OF INFORMATION IN CONSUMER EDUCATION

ANNOTATED BIBLIOGRAPHY, Ohio Council on Economic CATALOG OF TEACHING AIDS ON LIFE AND HEALTH Education, 69 Bentley Hall, Ohio University, Athens, INSURANCE AND MONEY MANAGEMENT, Educational Ohio 45701. Division, Institute of Life Insurance, Health Insurance ANNOTATED BIBLIOGRAPHY OF MATERIALS IN ECO- Institute, 277 Park Avenue, New York, New York 10017. NOMICS EDUCATION, Joint Council on Economic Edu- cation, 2 West 46 Street, New York, New York 10036. CATALOGUE ON CONSUMER INFORMATION, Public Af- fairs Committee, 381 Park Avenue South, New York, ASSOCIATED CREDIT BUREAUS ORDER FORM, Asso- New York 10016. ciated Credit Bureaus, Inc., 6767 Southwest Freeway, Houston, Texas 77036. CHANGING TIMES MAGAZINE AND TEACHER'S JOUR- BIBLIOGRAPHY OF PUBLICATIONS, National Canners NAL, Changing Tir es Education Service, 1729 H Street, NW, Washington, D.C. 10006. Association, 1133 20th Street, NW, Washington, D. C. 20036. CONSUMER EDUCATION BOOKLETS, PROGRAMS AND BIBLIOGRAPHY OF RESEARCH ON CONSUMER AND SPECIAL SERVICES FOR: EDUCATORS, CLUB LEAD- HOMEMAKING EDUCATION, Anna M. Gorman, Joel H. ERS, COMMUNICATIONS, The Sperry and Hutchinson Magisos, ERIC Clearinghouse on Vocational and Techni- Company, 3003 East Kemper Road, Cincinnati, Ohio cal Education, Center for Vocational and Technical Edu- 45241. cation, Ohio State University, Columbus, Ohio. CONSUMER EDUCATION BIBLIOGRAPHY, Office of Con- BIBLIOGRAPHY ON MARKETING TO LOW-INCOME sumer Affairs, Executive Office of the President, Super- CONSUMERS, U.S. Government Printing Office, Wash- intendent of Documents, U.S. Government Printing Of- ington, D.C. 20402. fice, Washington, D.C. 20402. BUREAU OF LABOR STATISTICS CATALOG OF PUBLI- CATIONS, U. S. Department of Labor, Superintendent of CONSUMER EDUCATION PROGRAMMED LEARNING Documents, U.S. Government Printing Office, Washing- INSTRUCTION BOOKLETS, Delta Pi Epsilon National ton, D. C. 20402. Office, Gustavus Adolphus College, St. Peter, Minnesota 56082. A CATALOG OF SEARS LEARNING AIDS, Consumer In- formation Services, Department 703-Public Relations, CONSUMER INFORMATION MATERIAL PRICE LIST AND Sears, Roebuck, and Company, 303 East Ohio Street,6 2 ORDER FORM, Bay Area Neighborhood Development, Chicago, IllinoiS 60611. 4801 Central Avenue, Richmond, California 94804. 58 CONSUMER INFORMATION PRICE LIST #86, U. S. Gov- Dow-Jones Company, P.O. Box 300, Princeton, New ernment Printing Office, Division of Public Documents, Jersey 08540. Washington, D. C. 20402. LIST OF MATERIALS ON MONEY AND BANKING FOR CONSUMER PRODUCT INFORMATION-AN INDEX OF ELEMENTARY AND SECONDARY SCHOOLS, Banking SELECTED FEDERAL' PUBLICATIONS OF CONSUMER Education Committee, The American Bankers Associa- INTEREST, Consumer Product Information Distribution tion, 12 East 36 Street, New York, New York Center, Washington, D. C. 20407. A CONSUMER'S GUIDE TO USDA SERVICES NO. 959, 1970-1971, CATALOG OF TEtI.CHING AIDS ON LIFE AND U.S. Department of Agriculture, Superintendent of Doc- HEALTH INSURANCE AND MONEY MANAGEMENT, uments, U.S. Government Printing Office, Washington, Educational Division, Institute of Life Insurance, Health D.C. 20402. Insurance Institute, 277 Park Avenue, New York, New York 10017. CURRICULUM PUBLICATION LISTINGS, Bureau of Cur- riculum Development, Board of Education of the City of 1970 PUBLIC AFFAIRS PAMPHLETS, Public Affairs Com- New York, Curriculum Center, 131 Livingston Street, mittee, Inc., 381 Park Avenue South, New York, New Brooklyn, New York 11201. York 10016. DEVELOPING A RESOURCE CENTER IN CONSUMER PUBLICATIONS CATALOG 1969-1970 AMERICAN STOCK EDUCATION: AN ANNOTATED BIBLIOGRAPHY, by EXCHANGE, American Stock Exchange, 86 Trinity Garman, Crank, Cochran, E. Thomas Garman, Business Place, New York, New York 10006. EducationDepartment,NorthernIllinoisUniversity, DeKalb, Illinois 60115. SELECTED AND ANNOTATED BIBLIOGRAPHY OF REF- ERENCE MATERIALS IN ...CONSUMER FINANCE, EDUCATIONAL ACTIVITIES AND TEACHING AIDS, Asso- Educational Service Division, National Consumer Fi- ciation of Home Appliances Manufacturers, 20 North nance Association, 1000 - 16th Street, NW, Washing- Wacker Drive, Chicago, Illinois 60606. ton, D.C. 20036. FREE AND INEXPENSIVE MATERIALS, Council for Family Financial Education, 1110 Fidler Lane, Suite 1616, Silver SUGGESTED GUIDELINES FOR CONSUMER EDUCA- Springs, Maryland 20910. TION, Grades K-12, Superintendent of Documents, HELPFUL TAX LITERATURE (Publication 610)Internal Government Printing Office, Washington, D.C. 20402. Revenue Service, Department of the Treasury, Washing- SUGGESTED LEARNING: CONSUMER AND HOMEMAK- ton, D. C. 20224, or local Internal Revenue Office. ING EDUCATION, Special Programs Unit, Division of LIST OF FREE MATERIALS AVAILABLE TO SECONDARY Vocational and Technical Ed' tion, 1035 Outer Park SCHOOL INSTRUCTORS, Educational Service Bureau, Drive, Springfield, Illinois 6270b. 59 SUPPLEMENTARY CONSUMER BIBLIOGRAPHY, Stewart of New York at Albany, 135 Western Avenue, Albany, M. Lee, American Council on Consumer Interests, Ge- New York 12203. neva College, Beaver Falls, Pennsylvania 15010. TEACHING CONSUMER EDUCATION AND FINANCIAL PLANNING, Council for Family Financial Education, TEACHING AIDS IN CONSUMER ECONOMICS, New York 1110 Fidler Lane, Suite 1616, Silver Springs, Maryland State Council on Economic Education, State University 20910.

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60 SELECTED SOURCES OF CONSUMER EDUCATION INFORMATION AND MATERIALS

AFL - CIO ASSOCIATION OF HOME APPLIANCE 815 16th Street, NW MANUFACTURERS Washington, D.C. 20006 20 North Wacker Drive AMERICAN BANKERS ASSOCIATION Chicago, Illinois 60606 Order Processing Department or Banking Education Committee BAILEY-FILM ASSOCIATES 90 Park Avenue 11559 Santa Monica Boulevard New York, New York 10016 Los Angeles, California 90025

AMERICAN COUNCIL ON CONSUMER INTERESTS BENEFIC PRESS (Formerly Council on Consumer Information) 10300 West Roosevelt Road 238 Stanley Hall Westchester, Illinois 60153 University of Missouri Columbia, Missouri 65201 BETTER BUSINESS BUREAU AMERICAN HOME ECONOMICS ASSOCIATION 430 North Michigan Avenue 2010 Massachusetts Avenue, NW Chicago, Illinois 60611 Washington, D.C. 20036 CENTER FOR CONSUMER EDUCATION SERVICES AMERICAN MEDICAL ASSOCIATION State Department of Education Department of Health Education New Jersey Residential Manpower Center 535 North Dearborn Street Building 871, Plainview Avenue Chicago, Illinois 60610 Edison, New Jersey 08817 ASSOCIATED CREDIT BUREAUS, INC. Director of Public Relations CHAMBER OF COMMERCE OF THE UNITED STATES 1615 H Street NW 6767 Southwest Freeway Washinaton, D.C. 20006 Houston, Texas 77036 ASSOCIATED FILMS, INC. CHANGING TIMES EDUCATIONAL SERVICE 600 Madison Avenue 1729 H Street NW New York, New York 10022 Washington, D.C. 20006 61 CHICAGO CONSUMER PROTECTION COMMITTEE FEDERAL RESERVE BANK OF PHILADELPHIA Room 486 Phiiadelphia, Pennsylvania 191t.;) U.S. Court House and Federal Office Building FEDERAL TRADE COMMISSION 219 South Dearborn Street Room 486 Chicago, Illinois 60604 U.S. Court House and Federal Office Building CONSUMER FEDERATION OF AMERICA 219 South Dearborn Street 1012-14th Street, NW Chicago, Illinois 60604 Washington, D.C. 20005 FOLLETT EDUCATION CORPORATION CONSUMERS RESEARCH, INC. 1010 West Washington Boulevard Washington, New Jersey 07882 Chicago; Illinois 60607 CONSUMERS UNION OF U. S., INC. GROLIER EDUCATION CORPORATION Educational Services Division 845 Third Avenue 256 Washington Street New York, New York 10022 Mount Vernon, New York 10550 HOLT, RINEHART AND WINSTON, INC. COUNCIL FOR FAMILY FINANCIAL 645 North Michigan Avenue EDUCATION, INC. Chicago, Illinois 60611 1110 Fidler Lane Suite 1616 HOUGHTON MIFFLIN COMPANY Silver Springs, Maryland 20910 1900 South Batavia Avenue Geneva, Illinois 60134 C.U.N.A. INTERNATIONAL, INC. P.O. Box 431 HOUSEHOLD FINANCE CORPORATION Madison, Wisconsin 53701 Money Management Institute Prudential Plaza DEPARTMENT OF CONSUMER SALES AND Chicago, Illinois 60601 WEIGHTS AND MEASURES City Hall ILLINOIS BANKERS ASSOCIATION 121 North LaSalle Street 188 West Randolph Street. Chicago, Illinois 60602 Chicago; Illinois 60601 ENVIRONMENTAL PROTECTION AGENCY ILLINOIS COUNCIL ON ECONOMIC EDUCATION One North Wacker Drive r 1740 Orrington Avenue Chicago, Illinois 60606 0 .) Evanston, Illinois 60201 62 ILLINOIS FEDERATION OF CONSUMERS* MODEL CITIES COMMUNITY CONSUMERS Room 1626 PROTECTION PROGRAM Monodnock Building Fellowship House 53 West Jackson Boulevard 1521 West Girard Avenue Chicago, Illinois 60604 Philadelphia, Pennsylvania 19130 ILLINOIS LIFE UNDERWRITERS ASSOCIATION NATIONAL ASSOCIATION OF MANUFACTURERS 612 South Second Street 277 Park Avenue Springfield, Illinois 62706 New York, New York 10017 ILLINOIS STATE BAR ASSOCIATION NATIONAL CANNERS ASSOCIATION Director of Information 1133-20th Street, NW Illinois Bar Center Washington, D.C. 20036 Springfield, Illinois 62701 NATIONAL CONSUMER FINANCE ASSOCIATION INSTITUTE OF LIFE INSURANCE Educational Services Division 277 Park Avenue 1000 - 16th Street, NW New York, New York 10017 Washington, D.C. 20402 INSURANCE INFORMATION INSTITUTE Education Division NATIONAL FOUNDATION FOR CONSUMER CREDIT 110 William Street 1819 H Street, NW New York, New York 10038 Suite 510 Washington, D.C. 20006 INTERNAL REVENUE SERVICE 35 East Wacker Drive NEW YORK STOCK EXCHANGE Chicago, Illinois 60601 11 Wall Street J. C. PENNEY COMPANY, INC. New York, New York 10005 Manager of Educational and Consumer Relations OCEANA PUBLICATIONS, INC. 1301 Avenue of the Americas Dobbs Ferry, New York 10522 New York, New York 10036 OFFICE OF CONSUMER AFFAIRS JOINT COUNCIL ON ECONOMIC EDUCATION Executive Office of the President 2 West 46 Street The White House New York, New York 10036 Washington, D.C. McGRAW HILL OFFICE OF THE ATTORNEY GENERAL Manchester Road 160 North LaSalle Street Manchester, Missouri 63011 67 Chicago, Illinois 60602 63 OFFICE OF THE SUPERINTENDENT SPERRY AND HUTCHINSON OF PUBLIC INSTRUCTION 3003 East Kemper Road 316 South Second Street Cincinnati, Ohio 45241 Springfield, Illinois 62706 SUPERINTENDENT OF DOCUMENTS OLCOTT FORWARD, INC. U.S. Government Printing Office 234 North Central Avenue Washington, D. C. 20402 Hartsdale, New York 10530 U. S. DEPARTMENT OF AGRICULTURE Consumer and Marketing Service PHARMACEUTICAL MANUFACTURERS ASSOCIATION Washington, D.C. 20250 Consumer Information Specialist 1155-15th Street, NW U.S. DEPARTMENT OF COMMERCE Washington, D.C. 20005 14th Street & Constitution Avenue, NW Washington, D.C. 20230 PITMAN PUBLISHING COMPANY U.S. DEPARTMENT OF HEALTH, EDUCATION 6 East 43 Street & WELFARE New York, New York 10000 Public Health Service PRENTICE HALL, INC. Food & Drug Administration Route 9W Room 122 Englewood Cliffs, New Jersey 07632 Post Office Building 433 West Van Buren Street PUBLIC AFFAIRS COMMITTEE Chicago, Illinois 60607 Publisher of Public Affairs Pamphlets U.S. DEPARTMENT OF LABOR 381 Park Avenue South Bureau of Labor Statistics New York, New York 10016 441 G Street, NW SEARS, ROEBUCK AND COMPANY Washington, D.C. 20213 Consumer Information Services U.S. SAVINGS AND LOAN LEAGUE Public Relations 221 North LaSalle Street 7401 Skokie Boulevard Chicago, Illinois 60601 Skokie, Illinois 60076

SOUTH WESTERN PUBLISHING COMPANY Printed by Authority of the State of Illinois 5001 West Harrison Street Chicago, Illinois 60644 (41854-7500-7-72) 64 CURRICULUM REVISION COMMITTEE Chairman: Marilyn Metcalf, Supervisor of Consumer Edu- cation, Office of the Superintendent of Public Instruction, Springfield Gladys Bahr, Assistant Professor, De Paul University, Chi- cago Gerald F. Bober, Business Education Consultant, Chicago Board of Education, Chicago Thomas M. Brooks, Dean, School of Home Economics, Southern Illinois University, Carbondale Catherine A. Carter, Consultant, Consumer and Homemak- ing, Special Programs Unit, Division of Vocational and Technical Education, Springfield Floyd L. Crank, Professor of Business Education, Northern Illinois University, De Kalb Carl Hall, Professor of Business Education, Southern Illi- nois University, Edwardsville Avadner Mc Glory, Associate Director, Consumer Informa- tion Services, Sears, Roebuck and cpmpany, Chicago Melvin H. Smith, Social Studies Department, Larkin High School, Elgin Mary Beth Stine, Home Economics Department, Flora Township High School, Flora Bettye Swanson, School of Home Economics, Western 11117 nois University, Macomb

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