In Financial Literacy I learned a lot of things about life and how everything works financially. My favorite things I learned was how to avoid scams, endorsed checks, effective complaining, investments, and the Consumer Rights.
Learning about how to avoid scams was really helpful. There are three types of scams: Rocks in the Box, The mattress scam and 3 card monte. The Rocks in the box scam is when people camp outside of stores and try to sell you things inside of the store for a cheaper price. Once you buy the item and open it up, there will be nothing but rocks in it. The rocks trick you into thinking something is in the box. The mattress scam is the dirties one to me. Some mattress companies will use old mattress cushions and springs and put them in new mattresses to save money. Three card Monte is a simple card game. There are three cards choose the right one and you win, except for the fact that you can't win. Another one is the Lucky day (lotto) scam. This one is where an immigrant wins the lottery and they say they will split the money with you but don't. There is also the stolen cars scam which is where people have their cars stolen so they can get the insurance money. The last scam is the Pigeon drop. This one is probably the one that hurts you the most. You give some one money to get more money but in reality you are getting nothing.
Another thing we learned about was investments. This was also another really useful and informative thing that I learned. We learned how to read an income statement which shows a companies' income and total earnings. We also learned how to make money off of stocks with dividends and buying low stocks and selling them for a higher price. Dividends are your share in the company's profit.
The Consumer Rights are the rights you have as a consumer. A consumer is a someone who uses goods and or services. There are seven consumer rights. One of them is safety and that is the right of protection from hazardous products. Another one is the right to be informed which means that there cant be any false advertising and you have to get facts about a product, but its up to you to read responsibly about the product before you buy it. There is also the right to choose which is just the right to choose which product you want. Another one is the right to be heard by the government and say what you want. There is also the right to redress which is to say what was done wrong to you by a product. The Consumer Ed act is the right to be a consumer, but its up to you to learn how to be a good consumer. Lastly there is the right to have good service and its up to you to reward that good service.
Learning about Endorsing your checks was really important to me. It's a skill everyone should know how to do and I am glad I learned it. There are three types of checks: Blank, Special, and Restricted. A Blank check is a check that anyone can write their name on it. For example, if you wanted to cash your check at the bank. Another type of check is a Special check. That is when someone writes a check to you and you use the money and transfer it somewhere else. The last type of check is the Restricted check. You would use this check when you send a check to be deposited to your bank account.
We also learned about effective complaining. This is extremely useful and will help when your not satisfied with a product. Before you buy a product you should read the advertisement and determine if it was a want or a need. Once you buy the product and if you find that you don't want it you can write a complaint letter. To do this you have to write a letter to the manufacturer and talk about your complaint, give your facts and make sure you let the company know what you want whether it be a repair, a refund, or a replacement.