2.02 – Understand Threats to Financial Security Gwishiri

 Failure to plan  Not comparing job offers carefully in light of expected expenses  Shopping without a list, which often leads to impulse buying  Spending without using a spending plan, which often leads to overspending  Failure to protect  Making personal information available that can lead to identity theft  Not securing life, health, and property to minimize risks of crimes and emergencies  Not following Internet safety practices

FAILURE TO BE INFORMEDFAILURE TO COMMUNICATE  Not reading the fine print in sales agreements, product labels, contracts  Not researching sales offers in depth before making a commitment  Not separating facts from opinions in considering advertisements  Not asking sufficient appropriate questions to inform financial decisions  Not discussing financial decisions with all parties/family members involved  Not taking enough time to make a careful decision because of sales pressure  Not saying “no” when needed

 Lying---e.g., accepting money for a stated purpose, then using it for a different purpose;  selling a product or service that will not perform as promised  Concealing information---e.g., sellers not willing to state their physical addresses  Deals that are too good to be true---e.g., a PYRAMID SCHEME,  An illegal scheme that influences people to contribute money based on the false promise that they will get rich quickly; the pyramid collapses and money is lost, not gained  Chain letter---a variation of the pyramid scheme that involves postal correspondence, also illegal

 High-pressure sales approaches---e.g., claiming the offer is only good for one day  Vague offers---e.g., expecting you to pay up front in order to receive full information about a product or service  Sweepstakes letter---states that you have won a valuable prize, but need to pay a processing fee to claim the prize  Lotteries---prizes awarded by chance after purchase of ticket; very small chance of winning  Earn-money-at-home offers---on the condition that you purchase software, etc.; once paid for, nothing arrives  Winning bid in auctions---you pay the bid amount, but never receive the item bought  Identity theft---stealing one’s personal information

 Communicating with fellow consumers  Use available communication media---live conversation, telephone, texting, s, etc.  Be specific, include key details  Reporting to government agencies and other consumer advocates  Go to the Federal Trade Commission (FTC) website; complete a Consumer Complaint Form  Call or visit the website of the National Fraud Information Center of the National Consumers League  Contact local consumer protection agency  Contact Better Business Bureau  Contact State Attorney General’s office  Contact the post office if you receive a fraudulent offer by mail  Contact the local media