Personal Finance Lesson: Consumer Scams and Rip-offs
Lesson Background
No unit in consumer education would be complete without some discussion of the many ways in which consumers can be scammed, ripped-off, or otherwise manipulated.
Random Winner Certificate Used in Scam Lesson
As opposed to a run-of-the-mill lecture or, *gasp* a worksheet, I like to get the students out of their seats and actually simulate a few of the common scams that are going around. In order to have the element of surprise, I don’t tell the students what we are covering when the class starts (or the day before, like I normally do). I just jump right in. As you read through the plan, you will see why.
Before the students come into the room, I pick 4-5 of their seats and tape a certificate underneath them. The certificates inform the students that they have randomly been selected to win a free iPod Touch. As the students enter the room for class, they are given $5 in Monopoly money.
Once everyone is seated, and we are through with our starting off activity, I inform the class that some of them have been randomly selected to win a free iPod. If they have a certificate, all they have to do is pay $5 to claim the prize.
Most of the time I can convince at least one student to bite, and then the others will follow.
After they have made their decision, I inform them that they have been a victim of a fraudulent giveaway, and bring up a PowerPoint presentation that is used throughout the rest of the lesson.
The first few slides discuss fraudulent giveaways (like the iPod deal) and E-Mail scams, as well as how to avoid being a victim of these shady deals.
The next section of the PowerPoint covers deceptive marketing techniques. In order to set that section up, I tell the
Bait and Switch Ad Used in Scam Lesson
class that it is time for a candy break, and I put up a slide reading “Mr. Martin’s Candy Corner” (corny, I know). With my candy table set up in front of the room by the projector screen, I advertise my two specials to the class using the slide shown on the right.
When the students come forth to purchase the Reese’s (100 for $1), I use a bait and switch tactic on them and try to sell them a single normal sized cup for $5. For the Snickers, I use a fake sale tactic, placing a sign underneath the candy that shows them being marked down from an outrageous price of $10 to a slightly less outrageous price of $5 (it’s 50% off, people!).
These concepts are covered in detail on the PowerPoint after the students have made their purchases.
Finally, we take a look at infomercials by watching a commercial for ShamWow, the supposedly super-absorbent towel. For the last mini-activity in the lesson, I bring in a few ShamWow towels that I purchased from Wal-Mart and we do our own tests, comparing them to paper towels, to see just how absorbent they really are (fyi…be sure to get volunteers for the tests because for some reason the kids really like this part). I would also recommend working in other “as seen on TV” items, like the Slap Chop, if you have them readily available.
Wrapping up the PowerPoint discussion, the class reviews the red flags that accompany many scams, as well as a few ways to be a smart consumer.
Note: Obviously, this is not a comprehensive overview of all the scams going. I cover scams in investments, employment, and car repairs when we talk about those specific areas.
Lesson Materials Needed
Printed “iPod Winner” Certificates
Monopoly or other Fake Money
Small Snicker Bars
Reese’s Miniatures Bag (Empty)
Individual Reese Cups
Shamwow/Slap Chop or other “As Seen on TV” Items
Lesson Resources
PowerPoint Notes: Consumer Scams & Rip-offs
Resource: PDF Copy of iPod Winner Certificate
Resource: Snickers Candy Sale Sign
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