Consumer education is a form of education that focuses on instructing consumers, or the general public, in numerous financial matters. These matters are those that would be of interest to consumers and better enable people to make informed and intelligent decisions with regard to various fiduciary matters. This can include understanding various business models, marketing techniques, credit management, budgeting for living, and professional business practices. Consumer education has become increasingly common and seen as quite important for many people, especially teenagers who will be dealing with these types of issues once living on their own.
As a form of financial education, consumer education is truly an interdisciplinary field of study that seeks to merge economic theory and practices with financial understanding and practical advice for living. Rather than focusing on various aspects of business in ways that would be beneficial for those who may seek to become managers or owners of a business, this type of education is targeted at those who utilize the goods and services provided by business. The basic idea behind consumer education is that an informed and savvy consumer is more likely to make choices that are best for him or her, as well as beneficial for the economy in general.
One of the oldest sayings in business is caveat emptor, which has often been translated as “let the buyer beware.” In other words, it is often seen as the responsibility of the person purchasing a product or service to ensure he or she is making an intelligent decision. Consumer education seeks to ensure that someone has the opportunity to learn what is needed to make this type of decision, and to be cautious as a consumer. Students in consumer education learn about how businesses advertise and appeal to them, so that they can see through the advertisement and understand the merits of the product itself.
Consumer education also focuses on personal finances and responsibility in handling money. This has increasingly focused on the use of credit and credit cards, and the kinds of purchases a person should be making to live responsibly. Students in consumer education are also taught how to properly budget themselves and manage their finances on a daily basis. This is often seen as important for the present, to ensure someone is able to pay his or her bills, and the future, for investments a person can make toward a more comfortable retirement.
