According to a national survey commissioned by the Center for a New American Dream, children aged 12 to 17 will ask their parents for products they have seen advertised an average of nine times until the parents finally relent. Watching television commercials may seem like a harmless activity for children. However, companies use commercial spots and other advertising methods to promote new products to young consumers.

1. Volume 4 #8
Children & Commercialism
FDR Client Reminders • Spare Change
Credit Corner • Frugal DIY
Do You Have a Spending Personality? (Part 2)
Welcome to the Freedom Debt Relief monthly newsletter! As part of our
ongoing goal to enhance our services, we will be sending you a monthly
newsletter filled with interesting articles and helpful financial tips and
advice. We hope you enjoy this issue, and that you find the enclosed
1-800-655-6303 information helpful as you continue on the road to financial freedom.
suggest one or two toys along with savings bonds
so children can learn the importance of saving for
the future.
hildren & Be aware of how toys and
games represent money. Certain
ommercialism
toys and games on the market may give children
misconceptions about money. Pay close
attention to games that simulate a shopping
experience or include play credit cards or
money. These products may claim that they
teach children financial responsibility, but in
ou are watching TV with your child if they currently have a toy that did not live up
actuality, they may be promoting consumerism.
and they see a commercial for the latest to its expectations or was not as fabulous as the
When choosing toys, you may want to visit
toy that features their favorite character. commercial implied. This type of dialogue may
the site for the organization Playing for Keeps
Your child will more than likely become excited help children make better purchasing decisions.
(www.playingforkeeps.org), an initiative of
and say: “I want that!” Research shows that this is If you are interested in how the amount of
the Association of Children’s Museums that
how product makers want kids to react. television and other electronic media exposure
promotes creative and imaginative play. This
According to a national survey commissioned affects children, you may want to visit the web
site lists many timeless and unbranded toys
by the Center for a New American Dream, site for the Center for Screen-Time Awareness at
for various age groups. The Center for a New
children aged 12 to 17 will ask their parents for www.screentime.org.
American Dream also publishes a free download
products they have seen advertised an average of
entitled: “Tips for Parenting in a Commercial
nine times until the parents finally relent.
Culture.” You can access this publication at www.
Watching television commercials may seem The effect of television commercials newdream.org/kids/brochure.php. According
like a harmless activity for children. However, can surface when you take your children to this brochure, “Whether it’s playing games,
companies use commercial spots and other shopping. This gives young kids an opportunity cooking, reading together, or just sharing space
advertising methods to promote new products to see all of the toys and products advertised in with the TV off, remember that the best thing
to young consumers. The Institute of Medicine commercials. You are bound to hear pleas and you can give your kids is you.”
reports that advertisers spent more than $10 whines begging you to buy them stuff. Consider
billion targeting youth through TV ads, coupons, having your kids start a master list of things they
contests, and packaging designed for children. want. If they demand that you buy something
Exposure to an abundance of advertising can for them in a store, tell them they cannot have
make parent and child shopping trips stressful it now. If it is really important to them, they can
experiences and may affect the future spending add it to the list. When birthdays and holidays
habits of children. Below are some tips to help come around, tell children they can pick a certain
children make smart choices in a consumer number of items from their master list.
culture.
Limit TV time.According to As the holiday season approaches in a few
CommonSense Media, a non-profit organization Helpful Web Sites for Children
months, advertisers are gearing up now by
dedicated to improving media airing many commercials
directed towards children, the for items that children may (www.pbskids.org/
average American child views request on their holiday list. dontbuyit/buyingsmart) This site sponsored
40,000 commercials each There is nothing wrong with by PBS shows children how to “get media
year on broadcast TV. That making a child smile for a smart” and question advertising gimmicks.
amounts to approximately special occasion, but catering
100 commercials per day! to every one of their wishes (www.umsl.edu/
If you are watching TV may not always be a wise ~wpockets) This site offers younger children
with your child and they choice. Oftentimes, children online stories about subjects related to
insist that they want a toy that are showered with gifts finances.
or product shown in a from relatives on birthdays
commercial, consider having and various holidays become (www.
a conversation with them. Tell so overwhelmed that they escapefromknab.com) This site is an
them that you wonder if the may lose appreciation for the educational simulation that is intended to
product is really as wonderful items. If grandparents, aunts, teach children about daily financial choices
as the commercial claims. You and uncles insist on splurging, and budgeting.
may also want to ask them

2. Consumers Union in order to provide
additional support to our clients with respect
to creditor harassment. All FDR clients are
automatically given membership into the
American Consumers Union, and are given
the full use and support of the advocacy
group, at no additional charge. This is a
terrific benefit for our clients and we are
Client Reminders happy to be able to provide this service to
our clients at our expense. You can visit
them online at www.myacu.org.
Visit us on the web! Did you know
***
that you can view your account information
online? We have recently enhanced our
Customer Service Phone No:
web site for our clients. Go to www.
1-800-655-6303
freedomdebtrelief.com and click on the tab
“Current Clients.” Then, near the bottom of
FAX No: 650-393-6800
the page under the heading “Existing Client
Login for Account Information” click on
News, financial tips, and other the button, “Click Here.” Enter your e-mail Hours of Operation:
information regarding personal address, and then follow the instructions
Mon-Thurs: 6:00 a.m. – 6:00 p.m. PST
to create a password and validate your
financial freedom Fri: 6:00 a.m. – 5:00 p.m. PST
information. You will now be able to view
Sat: 7:00 a.m. – 11:00 a.m. PST
this information online!
Let the Wallet Buddy help you
E-mail:
make purchasing choices. American Consumers Union support@freedomdebtrelief.com
The Center for a New American Dream is
FDR has a partnership with the American
an organization that advocates consuming
responsibly to protect the environment. In order
Credit Corner
to help consumers to “think before they buy,” this
organization offers a Wallet Buddy available for
download at www.newdream.org/walletbuddy.
pdf. You can put it over a debit card or on the As you strive to settle your debts, most of you have
made a commitment to rely on cash instead of credit
cards. After you complete your debt negotiation program,
you will probably want to re-establish your credit. As you
“Do I need this and do I need it now?” and “Is it
probably know, credit cards can cause serious financial
worth the money?” This may help you stop and
problems if they are not used properly. Periodically, this
think before buying excessive purchases.
column will discuss a credit card issue and give you tips on responsible credit
card use. This month’s topic is sales tactics to make you spend more with credit.
U
Credit freeze laws are nless you are a mainly used at department offer a store credit card to
business owner, you stores or for major purchases their customers. Employees
streamlined in certain states. A
may not realize that like furniture. In today’s are usually trained to persuade
security freeze gives consumers the ability to
credit card companies charge society, consumers can use customers to complete a
businesses fees (usually 2% to a credit card to pay for their credit card application at
anyone trying to open up a new account for
4% of the total cost of the sale) morning paper or have a the checkout counter. Sales
credit or services in their name. When a security
to accept credit cards. This pizza delivered. According associates persuade customers
freeze is in place at all three major credit
information may make you to Convenience Store News, by telling them that they
bureaus, an identity thief cannot open a new
wonder why retailers would an estimated 45 million can save a certain percentage
account because the potential creditor or seller
bother with credit cards at all. Americans are willing to off of their purchase. Due
of services will not be able to check the credit
The answer is easy. Research use credit or debit cards to technological advances
indicates that consumers for purchases of $5 or less. in recent years, customers
credit, he or she can lift the freeze temporarily
spend considerably more when Consider using cash for small will know the outcome of
using a PIN so legitimate applications for credit
using credit cards. According purchases. If a store requires their application in minutes.
or services can be processed. Most states give
to Cardweb Research (www. you to make a minimum Applicants usually just need
the credit bureaus up to three business days to
cardweb.com), consumers purchase amount, you will to swipe another major credit
lift or remove the freeze after a consumer makes
spend 212% more when most likely buy more than you card along with entering some
they pay with a credit card. need. other basic information into
Arizona, Idaho, New Mexico, Utah, Wyoming,
Therefore, stores may use many a pin pad. If approved, the
and Washington, D.C., will be able to lift or
gimmicks to encourage credit cashier issues a temporary
Open an account and
card spending. Below are some credit card so the customer
save. Many chain retailers
store sales tactics that may can use it until they receive the
bureaus using a PIN. This same provision goes
persuade you to splurge with a plastic one in the mail. When
into effect in January 2009 in Delaware, Indiana,
credit card. it comes time to re-establish
Maryland, Montana, Nebraska, and Tennessee.
your credit, you may want to
The rules for using a security freeze vary
think twice about opening up
Spend at least $7.00
across the country because of different state
a store account at a register.
laws governing their use. To learn more about to use your card at a
Checkout lines and retail
convenience store. At
one time, credit cards were Continued on page 3.

3. and large appliances are notorious for offering you can pay off the balance within the deferment
Continued from page 2.
deferred payment sales. Receiving your purchase period. Consider the fact that your situation
stores are usually busy and hectic. This type of now and not paying for it for years may seem may change during this time and you may not
environment may cause you to make impulsive like a wonderful option. These sales also be able to make payments as early as you would
decisions. If you really want a credit card from promote that there will be “no interest” during like. Also, consider how long it will take to pay
a particular store, it may be best to think about the deferment period, which also may sound like off the balance if you simply pay the minimum.
the choice before you make a snap decision just a great deal. However, many consumers fail to Online calculators such as “The True Cost
to save 10 or 20 percent. Keeping a revolving read the fine print before signing the paperwork. of Paying the Minimum” on www.bankrate.
balance on the card can quickly surpass that In most cases, these contracts com/brm/calc/MinPayment.asp
amount of savings. Don’t bother telling the state that if you wait until or “The Deferred Payment” on
sales associate that you do not think you will after the deferment period to www.banksite.com/calc/defer
get approved. Many stores will still give you the start making payments, you can help you discover how
discount, but the inquiry will appear on your will be paying the accrued much interest will accrue. If
credit report. Too many inquiries may affect interest from the date of your it will take you ten years to
your credit rating. purchase, which can result pay off a piece of furniture by
in an outrageous amount of simply paying the minimum,
Buy now and make no payment money. Before agreeing to this consider what it will look like
type of contract, be sure that at that time.
for three years. Stores that sell furniture
interested in making your own natural beauty than an item purchased at the
products, visit www.mybeautyrecipes.com. This mall. For some inexpensive
site states that some of the homemade products and creative ideas, visit craft
may be less expensive than purchasing store- stores or look in magazines
bought goods. to spark your imagination.
Examples include collecting
old photographs of your
Clean your own
siblings and making a colorful
house. Busy schedules could scrapbook. You can also write a poem to your
inspire some consumers to hire
spouse and frame it. Check out the DIY network
cleaning services. According to the
at www.diynetwork.com/diycrafts and on the
U.S. Department of Commerce,
Do-It-Yourself GIFTS web site at www.do-it-
more than 10% of all U.S.
yourself-gifts.com. The holiday season is still a
Frugal
households paid a professional
few months away, but the following web site,
service to clean their homes. It
www.christmas-ideas.net may help you get a get
may be convenient, but quite
a head start on ideas for low-cost homemade
costly. Costhelper.com estimates that an average
gifts. Gift-making is often more economical,
two-story house can cost $104-$180 per session.
but plan early because some projects may be
Establish a cleaning schedule or chore sheet so
Do-It-Yourself time-consuming. If you run out of time or the
each member of the household can contribute.
completed project is not what you had in mind,
If you want to save money on cleaning products,
you may be forced to purchase a gift at the last
the Treehugging Family web site lists 25 non-
minute, which defeats the purpose of saving
toxic homemade cleaning solutions (www.
he phrase “do-it-yourself ” or DIY
T money.
treehuggingfamily.com/25-safe-non-toxic-
mostly refers to home improvement or
homemade-cleaning-supplies).
craft projects. In order to save money,
Educate yourself. There will
you may be able to apply the DIY concept to
always be some fields of study that require
other areas of your life. Below are some tips Cook at home. The formal education. But, if you have an interest
that may help you review your budget and find U.S. Department of Agriculture
in a specific topic or field of study, consider
tasks that you can do yourself instead of paying reports that Americans spent 47
alternatives to expensive classes. Take advantage
somebody else. percent of their food budget on
of the resources at your local library. If your local
eating out. You can usually cook
branch does not stock a particular book, many
Beautify meals at home for a fraction of
libraries can locate the item via inter-library loan.
a cost. If you are short on time,
yourself. According One way to find interesting reading material
consider preparing food in large
to Beauty Store Business is to visit shopping sites such as www.amazon.
quantities and freezing it so it will
Magazine, an average com and www.barnesandnoble.com. Instead
be ready throughout the week. “Brown-bagging”
retailer that offers both of always buying the book, contact your local
or taking your lunch to work can also be less
salon and beauty products library to see if they can find it with the ISBN
expensive than dining out or ordering take out.
can generate $400,000 per number. You can also visit bookstores and peruse
You may also want to keep staples such as peanut
year. If you have become accustomed to frequent the aisles of topics that spark your interest. Many
butter, bread, and dry soups at work instead of
visits to the salon or spa, this luxury can start to stores also have quiet reading areas that allow
remembering to pack a lunch. You can check out
seem like a necessity that is difficult to eliminate you to browse through books to see if you want
the “Brown Bag Calculator” on the Community
from your routine. As you strive to settle your to purchase it. Again, rather
Bank web site. It estimates how much interest
debts, you may consider forgoing a manicure than always buying it, see if
you can earn if you invest the money that you
or pedicure appointment and perhaps doing you can get a copy through
save on lunches. To access this online calculator,
your own nails at home. Visit this site: www. your library. As you may know,
visit www.dodcommunitybank.com and then
nailcareguide.com/nail_care_yourself.htm for you can also find vast amounts
click on “Calculators” followed by the “Brown
tips on DIY nails. You can read about frugal hair of information online as long
Bag Savings” link.
care tips at www.thehappyhousewife.com/frugal- as you consider the source.
hair-care, courtesy of the Happy Housewife, Remember that education is
which is an online community that offers tips Make your own gifts. A priceless a lifelong process! We learn
for families living on one income. If you are homemade treasure may bring more happiness something new everyday.

4. Do You Have a Spending
Personality? (Part 2)
Many people have a primary spending personality that may affect how they use money. J. Grady Cash wrote a
book entitled Seven Deadly Money Mistakes in which he identifies seven spending personalities. Last month, we
featured three of them. In this newsletter edition, we include three more spending personalities. Here is some
information about avoidance shopping, esteem buying, and overdone buying.
Esteem Overdone
Avoidance
Buying Buying
Shopping
Causes: Peer pressure, desire Causes: Usually related
Causes: Shopping instead
to appear successful, wants to to an excessive hobby or
of dealing with problems or
gain self-esteem by shopping behavior; can be a dependency
shopping to get even
Solutions: Face underlying problem, be Solutions: Separate self-worth from Solutions: Acknowledge the behavior,
honest with yourself possessions, gain self-esteem in other ways avoid situations that encourage the spending
Esteem buying is the second most common Overdone buying is typically related to a hobby
You may have heard the phrase, “When the
spending personality after impulse buying. or behavior. The problem of this personality
going gets tough, the tough go shopping.”
It is common among those influenced by arises when one becomes infatuated with a
Avoidance shoppers use shopping as a way to
their peers (teens, social climbers, etc.). habit or hobby to the point where it causes
escape the stress of life. Unfortunately, this
Possessions may make esteem buyers feel financial problems. Overdone buying may
spending personality can cause a downward
happy and successful. They also tend to include classic examples such as drugs, alcohol,
spiral and lead to excessive spending. When
imitate the behavior of individuals that they eating, gambling, etc. These habits may cause
shopping in an emotional state, it is difficult to
admire. “Keeping up with the Jones” is one a double whammy. They not only ruin your
spend smart. If this avoidance becomes a habit,
of the major contributing factors to exploding financial situation, but may also cause health
the underlying problem does not disappear, it
consumer debt. problems as well.
may only fester and becomes worse.
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Phone: (800) 655-6303
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