BUS 141: Financial Literacy : In Class Scenarios

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Read through the scenarios below. Think about if you would trust the source of information. Why or why do you not trust the information provided by the source of information? Is there more information you would need to trust the source more?

Starting Information: Librarian Jane wants to buy a new kitchen mixer with some specialty attachments. Her cousin Eddie tells her all about this mixer he heard about and saw some videos about it on TikTok.

Do you trust the information Cousin Eddie gave about the mixer?

Now what if you learned: Eddie doesn't own the mixer, but he has heard some really great things about the home baker functionality of the mixer.

Does this make you trust the recommendation more or less? Do you need more information to trust or not trust?

Finally, what if Librarian Jane said: Eddie owns a custom cake shop, and has won multiple awards for his great tasting cakes (they have been said to be the fluffiest in town).

What is our trust level in the information that Cousin Eddie gave? Should Librarian Jane go out and buy the mixer? Or should she pass on the information?

Starting Information: You want to start saving money and building up your personal wealth. A YouTube video comes across your For You Page and it has over a million views.

Do you click into the video and learn about the tips and tricks given in the video?

Now what if you learned: The title of the video is "How to Build Wealth with $0 - the easy way".

Does this make you trust the video more or less? Do you need more information to trust or not trust?

Finally, you notice the following: The video was created by Graham Stephan who has over 3.9 million subscribers just on YouTube. His videos average around 280,000 views, and over all he has over 400 million total views of YouTube.

What is our trust level in the information that Graham Stephan's video gives? Should we listen to the information presented in the video or should we pass?

Starting Information: Your friend is a bit unsure about their student loans and how much money they should take out each semester. Their brother tells them that they should take out as much as is offered, because the bank is offering a reasonable amount of money.

Should your friend trust their bother?

Now what if you learned: Their brother has 4 degrees. In undergrad, their brother double majored in Business and Marketing. And after he graduated, he went on to get two masters - one in Business Administration and the other in Digital Marketing.

Does this make you trust their brother's advice more or less? Do you need more information to trust or not trust?

Finally, you learn the following: Your friend's brother has over $300,000 in student loan debt. Also, he has yet to enter the workforce, and in fact, he is still in school - working on yet another degree. Right now, he is still getting deferments on his loan payments - needing only to pay off the interest that is accruing.

What is our trust level in your friend's brother? Should we listen to their advice to accept the full loan amount, or should we pass on the suggestion?