0:00:01.380,0:00:03.660 - So one thing to think[br]about as you think about 0:00:03.660,0:00:07.290 your own financial literacy is[br]what do you do in a situation 0:00:07.290,0:00:10.290 where you try to interact[br]with some type of a business 0:00:10.290,0:00:13.620 or a financial institution[br]and they either are 0:00:13.620,0:00:16.530 misinforming you in some[br]way or they're not doing 0:00:16.530,0:00:17.760 what they said they would do? 0:00:17.760,0:00:22.230 For example, let's say that[br]you buy something online 0:00:22.230,0:00:25.620 and you give the payment,[br]you give the credit card, 0:00:25.620,0:00:26.850 and they take the money from you 0:00:26.850,0:00:28.620 but they don't send you what you thought 0:00:28.620,0:00:29.820 they were going to send you. 0:00:29.820,0:00:33.090 Or let's say you buy a product[br]and it breaks immediately 0:00:33.090,0:00:34.800 and maybe it's still in warranty, 0:00:34.800,0:00:36.540 but they don't really fix that. 0:00:36.540,0:00:38.250 Who could you turn to? 0:00:38.250,0:00:41.460 Well, the main entity in[br]the United States for that 0:00:41.460,0:00:43.170 is known as the Better Business Bureau, 0:00:43.170,0:00:45.150 sometimes BBB for short. 0:00:45.150,0:00:47.940 And it's actually an[br]independent not-for-profit 0:00:47.940,0:00:50.160 but it exists for this exact reason. 0:00:50.160,0:00:53.370 If there's a business[br]that you think is doing 0:00:53.370,0:00:55.020 not so great business practices, 0:00:55.020,0:00:58.380 you can file a complaint with[br]the Better Business Bureau 0:00:58.380,0:01:00.960 and they actually will log that complaint 0:01:00.960,0:01:05.040 and they keep track the[br]same way that businesses 0:01:05.040,0:01:08.516 or financial institutions keep[br]track of your credit score. 0:01:08.516,0:01:11.040 The Better Business Bureau[br]keeps scores or ratings 0:01:11.040,0:01:14.490 for businesses on how good[br]their business practices are. 0:01:14.490,0:01:17.370 And it's somewhat[br]measured by the complaints 0:01:17.370,0:01:19.470 that people are putting[br]in on that business 0:01:19.470,0:01:23.910 and to what degree those[br]complaints are actually legitimate. 0:01:23.910,0:01:26.280 Now, it's not just about buying a product 0:01:26.280,0:01:29.070 or whether someone fixes[br]a product or warranty, 0:01:29.070,0:01:31.800 there's also situations[br]where people might use 0:01:31.800,0:01:35.040 misinformation or maybe[br]not complete information 0:01:35.040,0:01:37.380 or not complete education[br]to take advantage 0:01:37.380,0:01:39.270 of you the consumer. 0:01:39.270,0:01:42.240 There's a lot of situations[br]if you go back into actually 0:01:42.240,0:01:45.270 just world history where[br]especially financial institutions 0:01:45.270,0:01:47.280 say, hey, give us a[br]little bit of this money 0:01:47.280,0:01:49.080 and we'll invest it in really good ways 0:01:49.080,0:01:50.940 and it's gonna come out really well, 0:01:50.940,0:01:53.160 or we'll give you this loan 0:01:53.160,0:01:55.140 and there's no strings attached, 0:01:55.140,0:01:56.640 but maybe there are some strings attached. 0:01:56.640,0:01:58.830 Or maybe it was a more of[br]a loan than you realized 0:01:58.830,0:01:59.663 you were getting into, 0:01:59.663,0:02:01.440 or there's certain aspects of the loan 0:02:01.440,0:02:03.600 that might get you in trouble. 0:02:03.600,0:02:06.420 And to help prevent that[br]there is a federal agency 0:02:06.420,0:02:08.520 called the Consumer[br]Financial Protection Board. 0:02:08.520,0:02:11.460 It came out of the banking crisis of 2011, 0:02:11.460,0:02:15.210 when there were a lot of[br]folks who were kind of 0:02:15.210,0:02:17.400 not given all the details[br]or maybe didn't have all 0:02:17.400,0:02:19.950 of the necessary information[br]to make a decision 0:02:19.950,0:02:21.270 about taking out a big loan 0:02:21.270,0:02:24.150 or maybe the interest rate will[br]change dramatically, go up. 0:02:24.150,0:02:26.070 They didn't realize the[br]risks that were involved 0:02:26.070,0:02:28.950 of taking out a big loan for an asset 0:02:28.950,0:02:30.570 that was very speculative. 0:02:30.570,0:02:32.970 Maybe the price of that[br]might go down like a house 0:02:32.970,0:02:34.920 in an area where the housing prices 0:02:34.920,0:02:35.970 have just gone up a lot. 0:02:35.970,0:02:39.480 And more extreme examples[br]there's things like payday loans 0:02:39.480,0:02:42.180 where fairly vulnerable folks[br]might go into these loans 0:02:42.180,0:02:45.000 not understanding the interest involved 0:02:45.000,0:02:49.200 which is ginormous, to[br]use a technical word. 0:02:49.200,0:02:51.540 So that's what the Consumer[br]Financial Protection Board does 0:02:51.540,0:02:53.850 is to make sure that folks are informed, 0:02:53.850,0:02:55.710 that people aren't doing misinformation 0:02:55.710,0:03:00.150 or taking advantage of[br]people's lack of knowledge. 0:03:00.150,0:03:02.550 Now, those are the two big[br]ones on a federal level, 0:03:02.550,0:03:04.740 but there's also going to be other groups. 0:03:04.740,0:03:07.830 There's groups that help[br]monitor the types of securities 0:03:07.830,0:03:08.670 that might get issued. 0:03:08.670,0:03:09.840 You might say, well, what's a security? 0:03:09.840,0:03:12.030 Well, it's things like a stock or a bond. 0:03:12.030,0:03:14.610 And as you can imagine,[br]if there's some kind of 0:03:14.610,0:03:17.100 shady company that really[br]has nothing behind it 0:03:17.100,0:03:18.540 but says, hey, here's some shares 0:03:18.540,0:03:20.670 and these shares are[br]in the newest hot thing 0:03:20.670,0:03:23.370 like it's artificial[br]intelligence, biotech, 0:03:23.370,0:03:25.470 whatever, whatever, a[br]lot of people might say, 0:03:25.470,0:03:27.390 oh, I'm just gonna buy those[br]shares without realizing 0:03:27.390,0:03:28.710 there's no company behind it. 0:03:28.710,0:03:31.650 And so you also have groups that regulate 0:03:31.650,0:03:33.060 things like securities. 0:03:33.060,0:03:35.640 You have groups that regulate[br]especially at a state level, 0:03:35.640,0:03:37.080 insurance. 0:03:37.080,0:03:38.670 It's one thing for someone[br]to say they're going 0:03:38.670,0:03:40.740 to insure you and collect your premium, 0:03:40.740,0:03:43.020 but when the bad thing actually happens 0:03:43.020,0:03:45.390 and you need to get the the payout, 0:03:45.390,0:03:47.040 are they going to be there for you? 0:03:47.040,0:03:49.530 That's why insurance is[br]pretty regulated to make sure 0:03:49.530,0:03:51.450 that the people who say[br]they're offering insurance 0:03:51.450,0:03:53.280 are actually good for it. 0:03:53.280,0:03:56.340 So you need to be wary,[br]you need to be careful, 0:03:56.340,0:03:57.870 but you should also be conscientious 0:03:57.870,0:03:59.970 that there are entities out there 0:03:59.970,0:04:03.063 that are there to help[br]inform and protect you.