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Earn Your Future ®

Digital Classroom
Level 2: Too Good to
Be True?

Module Resource
Guide
Table of contents
“Too Good to Be True?” Module Resource Guide......................................................................................................... 3

Background information about the topic ..................................................................................................................... 4

Teaching the module .................................................................................................................................................... 6

Assessing student learning .......................................................................................................................................... 11

Extending student learning ......................................................................................................................................... 17

National standards for financial literacy .....................................................................................................................18

Related resources for students ....................................................................................................................................19

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“Too Good to Be True?” Module
Resource Guide
Topic: Financial Responsibility

Suggested grade level

Although this module may be used for all grade levels, the content was designed for grades six through eight.

Hardware recommendation
All Earn Your Future (EYF™) Digital Classroom modules are accessible on any device, however, for optimal
user experience it is recommended modules are accessed via desktop or tablet. Please note, the EYF Digital
Classroom modules are not optimized for use on mobile devices (iOS and Android).

Technical Specifications
While the EYF Digital Classroom modules will function in all browsers, including Internet Explorer, Safari,
Chrome, and Firefox, browser load speeds will vary. For best performance, it is recommended that the most
current version of your browser of choice is used when accessing the modules. Please note, connection
speeds may be impacted by factors such as highly trafficked shared WiFi access, public WiFi, and accessing
modules behind a firewall.

Module summary
In “Too Good to Be True,” students will learn about making responsible spending choices. They begin by
meeting Christopher, a young man who bought a pair of headphones online that do not meet his
expectations. Students investigate why Christopher made an unsatisfactory purchase by examining ads for
the headphones, reviewing Christopher’s research, and considering opportunity costs. They learn how
Christopher could have made a better-informed spending decision by viewing multiple products and
carefully evaluating information sources.

Key learning objectives

• Students will understand key terms and concepts associated with advertising
• Students will analyze claims used by advertisers to entice consumers
• Students will analyze the strengths and weaknesses of various sources of product information
• Students will understand that considering the opportunity cost is part of making good purchasing
decisions

Procedure
This module is designed to be flexible to meet the needs of many different learning environments.

• One-to-one environment – Students using the module for independent, self-paced learning, can
simply move through the module at their own pace.
• Working in pairs or at centers – Students can take turns answering the questions throughout the
module and in this guide, or they can work together to answer the questions. As students may have

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 different reading levels, you will want to guide them to to provide each group member with an
opportunity to read and comprehend the information before moving on.
• Class environment – If you are leading a group in a one-to-many environment, you can use a
projector and screen or whiteboard to make the module the focus of instruction and discussion. Use the
questions in this guide and a show of hands during each topic to gauge student comprehension.
• Customized instruction – You may also choose to use discrete elements from the module (e.g., video,
activity, assessment) that fit your timeframe and curriculum. The navigation at the upper left corner of
the module can help you select specific parts once you have reviewed the module. Keep in mind that
many modules take students through a storyline about a character or event. If you start in the middle of a
module, you may want to provide students an overview such as the Module Summary above.

Background information about the

topic
Investigation 1 — Advertising Techniques
Businesses create advertisements and place them in a variety of settings so that
people know about the products and services they offer. Advertising (ads) often
introduce a new product or an update to an existing one. They include important
information consumers need to know about the product or service. If people did
not know about a business’s goods or services, they would not buy them, and the
business could fail. Ads are necessary to keep businesses open and the economy
growing.

Businesses use a variety of techniques in their ads to make the product or service they are selling sound as
appealing as possible. For example, ads often feature a scientific claim about a product’s features or
qualities, a celebrity endorsement, or a claim about a product’s worth. Some ads use rhetorical questions to
draw in the audience and get them thinking about how they would use the product or service. Ads appear on
TV, the Internet, social media, magazines, and in many other locations.

Advertisers are primarily interested in creating a favorable impression of their products rather than
providing comprehensive information. For example, a claim about a product’s value can be exaggerated, or
some statements may be misleading. It is up to the buyer to be an informed consumer, to examine the facts
about a product or service and ask questions about advertising claims.
In fact, many claims made in ads sound impressive but have little meaning. An example is the commonly
used “unfinished claim,” in which a product promises to “give you more” or “perform better” than some
unidentified competitor. Ads also often make “so what?” claims that trumpet a benefit that, upon
examination, has little real value. The “unique” claim asserts a product is “like no other”; a vague claim
makes an unclear comment about a product. A “water is wet” claim tries to make something ordinary sound
impressive, and weasel words give the impression of meaning without the substance.

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Investigation 2 — Analyzing Ads
Ads can sometimes be misleading. Some even include fraudulent claims, or
statements that deliberately deceive people to buy something. To avoid being
misled, consumers can use the AEIOU strategy: Ask questions, Evaluate claims,
Investigate further, look for what the ad Omits, and Understand the incentives of
those providing the ads.

Ads are not the only source of information for consumers. Buyers can use
customer and/or expert reviews of goods and services. Peers can also be very
helpful in sharing their experiences of different products. However, people need to be aware of the power of
peer pressure. Sometimes, the desire to fit in with people of a similar age—to be like them and appear to like
the things they like—can lead to bad purchasing decisions.

Investigation 3 — Comparing Products and Sources

Savvy consumers make informed decisions. Considering the opportunity cost is
part of making good purchasing decisions. Buyers have different options for
spending a specific amount of money. The opportunity cost is the next best
alternative that a buyer gives up when making a purchase. In other words, a buyer
who chooses one item for purchase gives up whatever benefits he or she may have
gained using the money in the next best way. That foregone benefit is thought of as
a cost—the opportunity cost.

Consumers should also try not to act impulsively. Buyers should take the time to examine their decisions and
gather information on goods and services—such as price, return policy, and features. Comparing similar
products can help consumers to find the smart buy.

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Teaching the module
Preparation
It is recommended that you complete the module yourself prior to sharing it with students. This will allow
you to build your background knowledge and experience what students will experience so that you are better
able to anticipate their reactions, questions, and misconceptions.

Key vocabulary

A print, online, or broadcast announcement designed to promote interest

Advertisement
in and desire for a product.

A strategy for evaluating advertisements and other sources of consumer

AEIOU information—A = ask questions; E=evaluate claims; I=investigate further;
O=what is omitted; U=understand who’s talking.

Celebrity An advertising technique in which a famous person offers support for a

endorsement product or service.

A statement used in advertising a product that focuses on a positive aspect

Claim of the product’s performance or a benefit that will be gained by using the
product.

Consumer A person who buys products and services.

Fraud Deception for the purpose of personal or financial gain.

Something that motivates or encourages a person or business to act in a

Incentive
certain way.

The money and other benefits you give up in order to acquire or achieve
Opportunity cost
something else.

Pressure on a person to change attitudes, beliefs, or opinions in order to fit

Peer pressure
in with friends and others in his or her social group.

An advertising technique that identifies a benefit of a product that is not

“So what?” claim
useful to consumers—such as “this product keeps working at –200°F.”

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 An advertising technique that uses an incomplete thought to make a
“Unfinished” claim
comparison—such as “this product gives you more.”

An advertising technique that claims the product is different from all

“Unique” claim
others—such as “this product is like no other.”

An advertising technique that makes an unclear or unexplained statement

Vague claim
about a product—such as “this product is awesome.”

Words meant to get you excited about something that is not exciting at all—
“Water is wet” claim
such as “this product is available in fine stores.”

Words that seem to say something solid but have no real meaning—such as
Weasel words
“This product is better than others.”

Pre-module guiding questions

The following questions can be used to activate students’ prior knowledge and extend their learning
throughout the module.

1. Do you pay attention to advertising? Do you think it affects your buying decisions?
2. What are some of the ways that ads try to make products look good and appealing?
3. Do you ever see ads that seem dishonest or inaccurate? What are some misleading tricks you have seen
in ads?

Discussion questions/writing prompts

Consider pausing at the end of each module topic to pose questions to students. Suggested questions and
prompts are provided below.

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Investigation 1: Advertising techniques
In this investigation, students learn about a range of techniques and claims that advertisers use to make
their products seem attractive to consumers.

Investigation 1 questions/prompts

1. Remember the ad for the HardtoBeat Noise Erasers that Christopher saw. Who benefited from this ad—
Christopher? The company selling the headphones? Both? Explain your response.
Possible answer: The ad did not really benefit Christopher because, as it turns out, he was misled by the
ad’s claims. The ad benefited the company that makes the headphones because it helped cause
Christopher to buy their product.

2. What was the goal of the ad for HardtoBeat Noise Erasers? Do you think Christopher was aware of this?
Possible answer: The ad was trying to create a favorable impression for the headphones among people
like Christopher—even by making claims that had little real meaning. Christopher clearly did not think
the ad was making claims that had no meaning and believed the ad provided solid, useful information.

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Investigation 2: Analyzing ads
In this investigation, students learn a strategy they can use to analyze advertisements – and other sources of
information – and become informed consumers.

Investigation 2 questions/prompts

1. Think again about the ad for HardtoBeat headphones. What was Christopher’s “mistake” when he saw
this ad?
Possible answer: Christopher did not take action to evaluate the ad. He didn’t ask questions about its
claims or try to evaluate them; he didn’t do any further investigation to find out what information had
been left out or to question the role of the advertiser.

2. One source of information Christopher could have used to learn more about headphones is his friends.
When it comes to making purchasing decisions, what are the strengths and weaknesses of the opinions of
peers?
Possible answers: Peers are likely to give you honest opinions and information. At the same time, peer
pressure may lead you to make unwise decisions.

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Investigation 3: Comparing products and sources
In this investigation, students learn that informed consumers compare products and information sources in
order to make sound purchasing decisions.

Investigation 3 question/prompt

1. What was Christopher thinking about when he made the decision to buy the headphones, and how did
that affect his decision?
Possible answer: Christopher was frustrated with his sister and anxious to correct the problem. This
caused him to act on impulse. An impulsive purchase is made quickly and without taking the time to
gather and examine information relevant to the purchase.

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Assessing student learning
Post-test questions, answers, and scoring
Students answer assessment questions that measure their understanding of, and ability to apply, the module
content. Each question is crafted to reveal complete understanding, partial understanding, or very little to no
understanding of the financial literacy skill being measured. Points, ranging from zero to two, are earned
based on answer selections.

In this module, the post-test consists of six questions for a total point value of 10. Students who achieve a
minimum score of six points will earn a badge reflecting their mastery of the module content. Students who
earn five or fewer points will have the opportunity to retake the test to try to increase their score and earn a
badge.

In Question 1, students understand key terms associated with advertising (advertising,

consumer, claim, and fraud). These answers are correct because they accurately represent
the relationship between each term and description. If students answer incorrectly, refer to
Investigations 1 and 2,. and the Glossary.

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 In Question 2, students identify claims used by advertisers to entice consumers. These
answers are correct because they accurately identify the type of advertising claim used in the
ads. If students answer incorrectly, refer to Investigation 1.

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 In Question 3, students identify types of online ads found on websites. Option D is correct
because it is the only ad that states specific information about the product (three color
choices). The other options contain vague or misleading claims. If students answer
incorrectly, refer to Investigations 1 and 2.

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 In Question 4, students list the strengths and weaknesses of various sources of product
information. Students evaluate sources and determine whether each would lead to a wise or
poor spending decision. These answers are correct because they accurately interpret the type
of information found in each source. If students answer incorrectly, refer to Investigations 2
and 3.

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 In Question 5, students identify the opportunity cost of a buying decision. Option A is
correct because in a decision between two items, the one not chosen is the opportunity cost. If
students answer incorrectly, refer to Investigation 3.

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 In Question 6, students analyze a salesperson’s behavior to determine the usefulness of the
salesperson’s advice. Students evaluate statements a salesperson might make. These
answers are correct because they accurately interpret the trustworthiness of the advice. If
students answer incorrectly, refer to Investigation 2.

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Extending student learning
The following activities are designed to help students continue their exploration of key concepts. They
are intended to be used after students have completed the module.

Writing Prompts/Projects
1. Students see advertisements for goods and services in many places. Have students find two ads for
the same kind of product. Students can list the information provided by each ad, identify any claims
used by the advertisers, provide a comparison of the ads, and then explain which ad is more useful
for consumers.
2. Students have learned about the AEIOU strategy for making well-informed purchasing decisions.
Have students investigate further by selecting a product, finding at least two product reviews from
different sources, explaining the incentives of these sources, and describing how these reviews might
help consumers.

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National standards for financial
literacy
This module is correlated to the National standards for financial literacy from the Council for Economic
Education. Standards are classified as primary or secondary. Primary standards are addressed directly
and thoroughly. Secondary standards are addressed indirectly or partially.

Primary

Buying Goods and Services – Grade 4: Whenever people buy something, they incur an opportunity
cost. Opportunity cost is the value of the next best alternative that is given up when a person makes a
choice.

Buying Goods and Services – Grade 4: People’s spending choices are influenced by prices as well as
many other factors, including advertising, the spending choices of others, and peer pressure.

Buying Goods and Services – Grade 8: When making choices about what to buy, consumers may
choose to gather information from a variety of sources. The quality and usefulness of information
provided by sources can vary greatly from source to source. While many sources provide valuable
information, some sources provide information that is deliberately misleading.

Buying Goods and Services – Grade 8: By understanding a source’s incentives in providing

information about a good or service, a consumer can better assess the quality and usefulness of the
information.

Secondary

Buying Goods and Services – Grade 4: Informed decision-making requires comparing the costs and
benefits of spending alternatives. Costs are things that a decision maker gives up; benefits are things
that a decision maker gains.

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Related resources for students
These resources can be used to reinforce or expand upon students’ understanding of key concepts in the
module.

Resource: You Are Here

Source: Federal Trade Commission
Description: Online environment in which students can explore concepts such as the impact of
advertising and how to be a smarter consumer
Link: http://www.consumer.ftc.gov/sites/default/files/games/off-site/youarehere/index.html

Resource: Admongo.gov
Source: Federal Trade Commission
Description: Online game that helps teach young people how to decode advertising.
Link: http://www.admongo.gov

Resource: The Merchants of Cool

Source: Frontline
Description: Television program, most suitable for older children in this age group, about media
efforts to market to teenagers—site also includes a panel discussion of young people reacting to the
program
Link: http://www.pbs.org/wgbh/pages/frontline/shows/cool/

Resource: Don’t Buy It—Get Media Smart!

Source: Corporation for Public Broadcasting
Description: Website in which students can explore topics such as advertising and other influences and
learn tips for being smarter consumers
Link: http://pbskids.org/dontbuyit/

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contributions to the people of PwC in times of financial hardship, and to nonprofit organizations that promote education and humanitarianism.

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