LifeSmarts Consumer rights and Personal finance

Consumer Bill of Rights

A set of rights that protects consumers, including safety, information, choice, being heard, redress, education, and a healthy environment.

Safety

The right to protection from hazardous goods.

Redress

The right to compensation for misrepresentation or harm.

50/30/20 Rule

A budgeting guideline suggesting allocating 50% to needs, 30% to wants, and 20% to savings or debt.

Checking Account

An account used for day-to-day expenses, generally offering low or no interest.

Credit Score

A numerical representation of a consumer's creditworthiness, ranging from 300 to 850.

Fair Credit Reporting Act (FCRA)

A law that protects the accuracy and privacy of credit reports.

Deductions vs. Credits

Deductions reduce taxable income, while credits reduce the tax owed directly.

Premium

The cost paid for an insurance policy.

Diversification

Spreading investments across various assets to reduce risk.

APR (Annual Percentage Rate)

The yearly interest rate charged on borrowed money.

Phishing Scams

Fraudulent attempts to obtain sensitive information through deceptive emails or calls.

Consumer Product Safety Act (CPSA)

A law that governs product safety standards.

Interest Rates

The cost of borrowing money expressed as a percentage of the loan amount.

Consumer Financial Protection Bureau (CFPB)

An organization that enforces financial laws to protect consumers.

Compare Prices

A smart shopping tip to ensure consumers are getting the best deal.