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Rational and responsiblemoney management Hoint Rational and responsible money management Effective management and use of money help us make wise...

Rational and responsiblemoney management Hoint Rational and responsible money management Effective management and use of money help us make wise Etendedeaning consumption decisions. We can meet our needs without wasting money, or creating waste or shortage. Log in to the e-learning platform and watch a To manage and use money effectively, we must have a good video about the evolution, SOurces and uSes of understanding of its various uses. In addition, we must learn money. how to manage and use money rationally and responsibly. u Differentusesofmoney Below is the results of a survey of how students in Hong Kong use their money. Can you identify the areas in which they spend their money? Exploration1 How do students in Hong Kong use their money? To understand adolescents' habit of using money, the Hong Kong Institute of Certi ed Public Accountants conducted a survey in 2020 with students from Primary 4 to Secondary 3. The results were published in Teen Money Management Survey 2020. A total of 1 015 valid responses were received. Study an excerpt of the results below and answer the questions. Item Food - 72% Transport 69% Stationery 46% Entertainment 42% Clothes or 26% sports equipment Helping people 16% Others 3% Percentage 0% 10% 20% 30% 40% 50% 60% 70% 80% 'Examples: general donations, Flag Day donations A Info. 1: Items that students interviewed spent money on most of the time 3 fi  Rational and responsible money management The results of the survey show that the students interviewed generally spend their pocket money on daily necessities. Although they have the habit of saving, the main reason for them to save money is for future consumption needs. In fact, apart from consumption, money also has other uses: Consumption HA2 We spend our money on daily necessities (e.g. transport, food), or on goods and services that can satisfy our personal desires. We can put our otour money in investment Uses of pocket tools (e.g. stocks future in and bonds). money importa Proper investments expen can add value to our emerce assets. It is more blessed to give than to receive.' We can Savings Investment donate some of our money to charities or to people in need. DONATE This can help us cultivate the positive value of care for others. Donations.Interactive Zone Develop the habit of saving Get into groups of four. Discuss how you can make good use of your pocket money, allocate your daily spending carefully, and save money by developing the habit of saving. stock bond  Rational and responsible money managerment Ikey (elnt 1 The case shows what may result if we do not manage our Etendedlearning money well. To avoid the problem of not having enough pocket money for daily necessities, we must learn how to use our money Log in to the e-learning platform and watch a wisely and master the skills for good money management. video abOut 'wants' and 'needs'. Things we want' Things we 'need' Items not necessary for daily Items necessary for living. basic living. Life is not affected much without Life may become what we 'want', though our mood dif cult without what may be affected. We 'need'. When one knows the difference between spending for Extendadi 'needs' and 'wants, one can make choices accordingly. In addition, Log in to the recording personal expenditure regularly and preparing a budget platfomaxc wah video ab0ut prepaig help avoid overspending, or spending beyond one's means. budget. The trend of overspending encourages consumers to buy newer and newer products, and then abandon old products. This results in a shorter product life and a waste of the earth's resources. Buy items one 'needs' rst; and buy items Rational one 'wants if there is spare money after consumption one has considered the need. Waste Consumption Buy items one 'wants' even if there is no Overspending spare money. Financial A Knowing one's needs helps avoid overspending. problems Interactive Zone, Preparing a budget Get into groups of four. Download the Investor and Financial Education Council's IFEC Money Tracker app and prepare a budget. Compare your budget with your group members' budgets in the following aspects: Major expenditure items Amount of savings Amount of donations overspending 7 fi fi  Rational and responsible money management Key Pont1 1.3) Responsibilities,costs and risks to be borne when borrowing We have different consumption needs at diferent stages of life (e:g. further studies, starting a business, getting maried, buying a house). Savings alone may not be enough to cover our spending; and borrowing become necessary. Before borrowing, we should understand the associated responsibilities, costs and risks. Responsibility of repaying principal and interest Borrowing generally involves three components: Borrowing Principal: The amount Interest: The return that Borrowing period: At of money a lender the lender receives from the the end of the borrowing (creditor) lends to a borrower. It can also be seen period (loan period), the borrower (debtor). as the borrower's cost of borrower must return having the money earlier. It is the principal usually a speci c percentage and pay of the principal (i.e. interest. interest rate). Example of borrowing Could you lend me $1 000? U pag you back one year later. Sure, but youll need to give Principal me $1 020 after one gear. Principal Interest Borrower Lender Borrowing a Princi Interest period Interest = $(1 020 -1 000) Sum of principal and Principal = Repay after $20 interest (accumulated $1 000 one year. (Interest rate is 2% per year) amount) = $1 020 principal interest J interestrate borrowing period I B! accumulated amount I 9 fi  Risks of being unable to repay debts Lower credit scores yor orede score is In Hong Kong, anyone who has used credit products (e.g. credit card, personal CREDIT loan, car loan) has a credit record, which SCORE contains the person's credit score. dck hers or moredetois If we have made late repayments, such poor repayment history will lower our credit score, which will affect our loan applications in the future. A Delaying repayment lowers one's credit SCore. Lead to bankruptcy KNOW STO THE Filing for bankruptcy is a legal process. A CONSEQUENCES debtor who is unable to repay his / her debts AND can le for bankruptcy against himself / herself THINK with the Court, or a creditor can le for BEFORE YOU bankruptcy petition with the Court against the FILE debtor. The bankrupt's assets will be realised Debt Counselling and distributed among his/ her creditors. Services Individual Voluntary |Arangement ► The O cial Receiver's Of ce performs various statutory functions Bankruptcy relating to insolvency. offclal RecotversOffc Value-added Knowledge Restrictions for bankrupts Once declared bankrupt, the debtor will be placed under certain restrictions. For example: He/ she will not be allowed to make major purchases such as a at or a car; He/she will not be able to apply for further loans; While bankrupt, he / she cannot be a director of a company or operate a business. He/ she may also be barred from working in particular trades and professions; Public records relating to bankruptcy will be noted on his / her credit report; The Of cial Receiver will advetise the Bankruptcy Order in the Gazette and in two newspapers. 12 fl fi fi fi fi fi  Rational and responsible money monagement Cause stress When the income of debtors is not enough to repay their debts, they may feel anxious. They may worry that they would be pursued by their creditors or need to le for bankruptcy. They may also need to take up multiple jobs and reduce their everyday expenditure in order to repay the debts. As a result, their quality of life, and that of their families, suffers. In addition, debtors may think they are losers because they cannot control their nancial situation. Their self-esteem suffers. This shows that not being able to repay debts brings stress, which can affect the debtor's physical and mental well-being. Frequent Impa calls from redi creditors Dif culty in meetingdaily Debtors may expenses experience great stress due to their inability to repay their debts. Borrowing should be our last resort. If we must borrow, we should consider the following factors beforehand: Are other options Is the cause fuly considered? of borrowing (e.g. Develop reasonable? good nancial (e.g. If you are habits and avoid applying for a borrowing by government loan Responsible saving and other for university study, means) borrowing it is reasonable Can I bear the to borrow money because it is related risk of late to life planning.) repayment? (e.g. Become heavily in debt or even ls the borrowing amount appropriate? Do bankrupt) you have enough repayment capacity? (e.g. Your income is enough to repay the loan amount and interest.) 13 fi fi fi fi  1.4 General nancialservicesprovided by nancial institutions To manage our money and use it wisely, we should also consider ways to save, insure and increase our personal wealth. That is why we may need the services provided by nancial institutions. 00 ExPloration 5 What services do nancial institutions in Hong Kong provide? What services are offered by nancial institutions in Hong Kong, as shown in the information below? Fil! the boxes with the appropriate letters. A. Deposits B. Insurance C. Loan D. Investment AIOGDNOX DNOH 4,000R HKEX HKE 0.18% HKEX TOP 10 GAINERS m t S TOP ACTIVE 10 SECURITIES oNAN NORS GHKS10,000R B 44811 1350% o400 A3154 145 HKS0,.6 241 02209 n POOL 324t A21 8U6 1160 00453 A2041 193 26% 1548 492 GZS ESCONGLDING A5 60844M A1437% 4358 SA2 9aM 0016 AS4294 17 200 483 S4 O137 A13 2% T K NKEEL/5% ANSRAAN9R 14 fi fi fi fi fi  Rational and responsible money monagement In Hong Kong, banks and other nancial institutions generally provide four main types of services: Loan services Deposit services Financial \institutions Lnvestme Insurance services Deposit services Logi: Mainly provided by banks, deposit services can be classi ed into platíoriai.: two types: video abou Gereäi banking services. Savings deposits Depositors can withdraw their deposits at any time. The interest rate is relatively low. Time deposits o After making a deposit, depositors can only withdraw the money after the predetermined deposit period; or they will not receive any interest. The interest rate is relatively high. ? Interactive Zone Use of bank's deposit services Conduct a survey in class about the use of bank's deposit services. For example, do students have savings accounts? Do they use counter service or the ATM? Do they check their monthly statements regularly? 15 fi fi  Loan services In Hong Kong, there are different types of lending institutions offering a variety of loan products. Below are examples of loans relating to individuals or consumers: Credit card lending Personal loan When a cardholder uses a credit A personal loan isa loanapplied card to make a payment, although he / in the name of an individual.Th she does not have to pay the amount principal and interest must be rep CreditCard immediately, he / she is actually borrowing in xed monthly instalments wit money from the bank or the card-issuing the set period of time. company. The interest of credit cards is usually higher than that of personal loans or other forms of loan. Mortgage Overdraft When a person takes An overdraft means out a mortgage, he/ she is a person withdraws more borrowing money to pay for a home money than what is in his/ by using it as collateral. Therefore, her account. It is also a type of if the borrower fails to keep up the borrowing. The loan is subject repayments on the mortgage, to interest calculated on the -$500 his / her home may be overdraft amount, and / repossessed. or other chargeS. Regardless of the types of loan services, debtors have to bear responsibilties and risks. Therefore, we must consider our ability to repay the loan before borrowing. The threeconsiderations If it's not absolutely If you can't afford Even if you can repay, before borrowing, necessary, don't to repay,de nitely don't borow without suggested by the borow! don't borrOw! thinking twice! Investor and Financial Education Council 16 fi fi  Rational and responsible money management Insurance services There are many types of insurance products on the market. In general, they all require a person (policyholder) to pay a sum of money (premium) to an insurance company to cover damage to a person or property (e.g. house, car). Common insurance products include: Life insurance Criticci Medical insurance Common insurance products 2 Accident insurance Home insurance Travel insurance 17  Investment services Investments carry risks and can lead to losses, but proper investments can potentially lead to returns and increased wealth for asset holders. There are many types of investment products on the market. The most common ones are stocks (shares) and bonds, which can be traded through nancial institutions. Below is a comparison of investing in stocks and bonds: Stocks Bonds Investing in the shares of a company Investing in the bonds of a company makes makes a person the company's a person the company's creditor (similar to shareholder (.e. one of the company's lending money to the company). owners). A bondholders may receive regular interest A shareholder may receive a share of the payments from the company. company's pro t (known as dividends). The company will repay the principal and If the share price rises, shareholders can remaining interest to creditors on the sell their stocks fora pro t. maturity date of the bond. Reason for investment: To ght in ation The primary reason for investing is to ght in ation. In ation refers to the persistent increase in the general price level over a period of time. It can be expressed in terms of the composite consumer price index (CPI). An increasing composite CPI indicates in ation. If a person's savings do not increase over time, the purchasing power of his / her savings will decline. Therefore, appropriate investments can increase a person's wealth and avoid the erosion of purchasing power by in ation. 324 9., 7 A Food price (left) and catering price (right) can re ect the general price level. dividend R&E in ation 1HE (HE) 18 fi fi fi fl fl fl fl fl fl fl fi fi  Rational and responsible money management Key Point 1 Exploration Which type of nancial services do they need? Study the information and answer the questions. I have $100 000 in savings Iwant to buy a property but thatI do not need to use in cannot afford to pay the The older lget, the worse my the short term. How canlget full amount in onego. health will be. I think my medical relatively stable returns? expensesare going up... Miss Ng Mr Lee Ms Chan What type of nancial services do they need? Explain your answer. Type of nancial services Reason Mr Lee Ms Chan Miss Ng 19 fi fi fi  15 Investmentrisksandreturns Relationship between risks and returns Etandadleontgg The goal of investing is to generate returns, which means an Log in to the learing increase in wealth. Howevet, the actual return may not always be platfom and watch avideoaboutthe the same as cxpected. and the variable is the risk, which is the olationshp between Sks likelhood or uncertainty of loss. Take bank depoxite, bonds and ard retns stocks as examples. Theit respective ricks and retune are shown below: Stocks Corporote bonds Bank deposits S1 Expected TOTAT returns RS\s Risk uetuateswith te part Ingeneral.,people dislike risk Gaen wo investment products arcialgrodae Iingeneral, bark depoits have the owest isk and lowestexpectedretun whilestocksmayhae higher oxpected vetun, but theyalso ivoke higherik with the saneexpectedseturn but di erent risk pro les, a rational investoralwayschooses the product with lower risk Value-added Knowledge Diversifying risk Investmert risk isunavoidsbils, butt can be minimised. The hance of ioss can be reduced using sppropriate stratogies. The oimplestwayis todiversi yinvestments,that is, byinvestingin aif erert types of assets, such as stocks, bonds, time deposits, foreign currencies, gold and even properies 20 fl fi fi fl fi fl  Rational and responsible money management Key Point 1 Avoid investment frauds Exploration Why do people fall for investment frauds? Study the information and answer the question. Retired civil servant fell for investment fraud A former civil servant met a woman on a social networking site last year. The woman claimed to be an IT technician from Singapore. She said she had inside information that would guarantee easy and substantial returns in cryptocurrencies. Subsequently, the victim opened an account on a fake investment trading website and transferred a huge amount of money to an account provided by the woman. When the victim logged into the fake investment trading website on 15 January 2023, he found that his account had been frozen. He was asked to pay an administrative fee of US$19 000 (approximately HK$150 000) to reactivate it, which he ignored. When he tried logging in again on 7 February, he found that the website was no longer in operation. Adapted from a news report in Oriental Daily (15 February 2023) Write down the key information about the investment fraud illustrated above. Key information How the fraudster met the victim Investment product involved Investment returns Investment website involved Retrieving the principal 21  Investment risk and return are correlated. Therefore, when someone offers an investment product that has 'low risk, high return', or a chance to make easy money, we should be vigilant and be careful. We must also bear in mind that we must earn money in a legal and proper way. The following are some of the common investment fraud tactics: The fraudsters contacts the victims through dating apps or social Approaching networking sites, claiming to have professional quali cations and the victim have access to investment products that offer high returns but have loW risks. The fraudsters allow the victims to make some return so that they Gaining the will invest more. The fraudsters may even allow them to earn a victim's trust commission by referring their friends to the investment scheme. The fraudsters use different excuses to ask the victims to invest After deceiving more before getting back their original investments. In the end, the victim the fake trading platforms stop operating and the fraudsters disappear. The number and the total amount of losses of online investment fraud have increased rapidly in recent years. In 2022, for instance, there were 1 884 cases of online investment frauds, involving a loss of over HK$900 million. This means that each victim has lost an average of HK$500 000. No. of cases / Amount of losses ($ million) 2 500 - No. of cases Amount of losses 2 000 ($ million) T884 1 500 980 1 000 926.5- 544 472 500 338 278.1 266.3 208 167 124.5 48.6 Year 2017 2018 2019 2020 2021 2022 Hong Kong Police Force A The number of online investment fraud in Hong Kong has surged in recent years. 22 fi  Rational and responsible money management KeyPoint1 The following measures can prevent us from falling for investment frauds and prepare us for making investment decisions in the future. Stay vigilant against investment Learn about nancial management. products with low risk but high Assess investment risk by doing your return. Do not believe in claims that OWn analysis on investment products. promise easy money. 200 NEWS Seek advice from reputable and Pay attention to common investment frauds quali ed nancial experts. Do tactics. Never visit suspicious investment not trust investment advice from websites or download suspicious apps; and strangers easily. avoid entering bank account or credit card information lightly. If you suspect that you have fallen for an EC www.adcc.gov.hk P investment fraud, call the eek 13 Anti-Deception Coordination BLOCK OCK Centre of the 1822 BMC 8223 2 18222 Hong Kong Police Force for 18222 BU18222 assistance. Hong Kong Police Force Anti-Deception Coordination Centre fi fi fi  Key Point Precautions about online shopping 2 Online shopping has prevailed in recent years. Online shopping platforms have become more sophisticated, and the public have developed the habit of online shopping. Do you have these experiences while shopping online? This dress is very popular now. Buy one now to get one | bought three dresses last month, free! Grab the chance now! but this dress is on sale now. The opportunity is too good to miss. Internet celebrity The dress is different from the one l bought! Katy I've played it the wholeday! Now, I need to top up to bug This mobile game is just newly 'weapons for the higherlevels. Walter released. I don't have to top- up to play. Let me try it out! A Possible situations associated with online shopping.Interactive Zone Online shopping experience Get into groups of four. Discuss why online shopping has become increasinalv popular, and the online shopping habits of yourself or your family. Share any unpleasant online shopping experiences you or yOur family have. Ch0ose a representative to report your discussion in class. 24  Precautions about online shopping Key Point 2 The cases above show that while online shopping may be convenient, there are also risks. Some people use it to deceive consumers for their own gain. Therefore, we should learn how to avoid falling into the traps of online shopping. Information Analysis (Broken line graph Number of online shopping scam Case 9 000 8735 8 000 6 678 7 000 6 000 6 120 5 000 4 000 3 000 2 194 2 000 2 187 1 000 +669 Year 2017 2018 2019 2020 2021 2022 Hong Kong Police Force A broken line graph shows clearly the trend of the data changes over time. When studying a broken line graph, one should: Pay attention to the title, x-axis and y-axis. Compare the rst value and the last value: Does it show an increase or decrease? Analysis if the trend is continual or inconsistent. Question According to the broken line graph, what is the trend of online shopping scam in Hong Kong between 2017 and 2022? 2.1 Dealing with risks of online shopping In general, online shopping may involve these risks: Online scam on unreliable websites Product received not matching the description Personal data leaked or being stolen BUY Overspending and even geting into debt 25 fi  To avoid these risks, we can adopt the following measures Use credible online shopping platforms Etendsdsentag There are a lot of online shoppingplatforms If we visit an Lognto heeg unreliable website, or a fke shopping site set up bysca mers plao adwtoha we may suffer a loss, Our personal dta may also be stolen ee abotprectors out orieshecerg Before maling purchuses on a webite, we can do some researchonline to make sure that the website is feputable Fot esample,wecan lock p commets ndrevsewefromoehet CUstomIers Use secure payment method Online transactons uuly ailos commere peybe eedie crd orelectronicwale, ele mukingonne pemee e cantile hefollowingmees e prot ourseilves Aau Pay atertion to the surfy af thewabpage tor pavmet, Forexanple,check thee s CategoriesB animage of a padlook on thetbowsa, ard theURLstatswth ts Aäpe fo Beaesting Riegong Cuapi Useorne scorg platomsthatsuppot iemears ong aonetimepasoordserttoyou metle ghorebythe cardung bark to campitethetransactionThisheps prevertstolen redit card detais trom berg used Addfumechie f ie ad Fiacil Bdatin Cod  Precautions about online shopping Key Point 2 Protect personal data During online transactions, we should be alert to whether the online shopping platform is collecting too much personal data, what the purpose of collecting such data is, and whether we can choose not to share our personal data. We can also prevent personal data from being stolen by hackers by adopting these measures: Always log out of websites NOKIA or systems after use. 6S60-IE3B491em Use a trusted and secured computer or mobile device, and keep software (e.g. system, antivirus) up to date. Protect online user account with a strong and frequently changed password. Avoid using insecure network connections or unencrypted Wi-Fi hotspots. Pay attention to return arrangements for online purchases We should understand any return arrangements before making online purchases. Since a lot of online shopping platforms have deadlines for returns, we should inspect the goods as soon as they arrive. If there is any problem, we should initiate the return process early. A Items bought online may not match their descriptions.  Avoid becoming addicted to online shopping Why is it easy to overspend when shopping online? No geographical Unaware of the or time constraints volume purchased + % + BUY: Various offers and discounts Credit card payment not instant Online shopping Overspending To avoid becoming an online shopaholic and overspend, we can prepare a monthly budget and make a list of things we need' and 'want. We can then draft savings plans to ensure that we do not need to borrow to pay for our future purchases. ------- Information Analysis Cartoon Overspending A cartoon uses images to convey messages, explain concepts and present phenomena. When studying a cartoon, one should: Pay attention to the title. Pay attention to the details, such as the person / Repay people, object(s) and background. your debts! l just shopped online Use the title and your knowledge to infer the again! What can l do with my debts? Bank message(s) conveyed. employee Question Why is the consumption attitude of the young man in the cartoon incorrect? Whatproblemsmay his consumption behaviour bring? 28  Precautions about online shopping KeyPoint 2 22 Respectforintellectualpropertyrights Importance of protecting intellectual property Bxtendedlearning According to the Intellectual Property Department, intellectual Log in to the e-learning property is the name commonly given to a group of separate platform and watch a vídeo about intellectual intangible property rights. property rights. The brand-names logos on clothes, articles in the newspaper, TV programmes, pop songs, lms and fashion designs all have a More,about strong connection with intellectual property (IP). Protecting IP he Basic Law means protecting people's creativity. We need to protect the efforts Articles 139 and 140 of the Basic Law state of writers, artists, designers, software programmers, inventors and that the Government of other talents, and create an environment where creativity can the HKSAR shall, on its ourish and hard work can be rewarded. Own, formulate policies and laws to protect intellectual property. Online shopping and intellectual property Intellectual property issues are also present in online shopping. For example: Counterfeit goods Dishonest merchants may sell Infringing works counterfeit products on online TV programmes, lms, music, computer shopping platforms. Common software, games, e-books that are counterfeit itens include put online for viewing or downloading leather goods and jewellery. without proper authorisation are referred to as 'infringing works'. Supporting genuine goods and refusing any infringement on the Internet respect the creative efforts of others. ► We should watch only lms with proper authorisation. intellectual property rights l H 29 fi fi fl fi  2.3 Combatingcrimes relating to online shopping The risk of online shopping and related criminal activities affect individuals as well as society: Minor impact: Goods do not match their descriptions but Consumers would lose buyers do not get refunds, con dence in the online resulting in nancial loss. economy if crime related to online shopping Individuals Society happened often. Serious impact: Personal data were stolen (for IP is not respected, borrowing or shopping, hindering technological or trafering money from innovation and the bank accounts), resulting in development of the substantial nancial loss. creative industries. Apart from relying on the legislature and the judiciary to formulate and enforce relevant laws, we, as consumers, can also do our part. For example: Gain a better understanding of cybersecurity In today's era of advanced technology and information, cybersecurity is very important. It helps protect individuals, organisations, and governments Etended earning from cyber attacks and cyber crimes, thus contributing to safeguarding Log in to the e-learning national security. We can learn more about cybersecurity proactively. For platform and watch example, we can visit websites set up by the Of ce of the Government a video about the Chief Information Of cer (0GCIO), such as the 'Cyber Security Information importance of Portal' and InfoSec' to strengthen our cybersecurity awareness. cybersecurity. @ InfoSec Cyber Security Information Portal Enhance network security Avoid breaking the law unknowingly We should use secure Internet We should not take part in crimes related to online connections, update the shopping or beCome accomplices, antivirus software on such as buying or selling our devices regularly, counterfeit goods online, and and use two-factor uploading or downloading authentication, etc. infringing works. cybersecurity 30 fi fi fi fi fi  Greenconsumption KeyPoint 3 Key Point 3 Green consumption The purpose of effective money management and use, as well as rational and responsible consumption (in-store or online), is to meet our needs in a reasonable manner without wasting resources on Earth. They also underlie the model of green consumption, which is being advocated in society nowadays. 31 Greenconsumptionand sustainabledevelopment Green consumption refers to a consumption model that is environmentally friendly, such as spending moderately and Economic buying 'green products', which have a lower environmental impact. In this way, we can ensure that the next generation can continue to enjoy the natural resources we have today. Green consumption and sustainable Sustainable development are closely related. According to the UN Environmental Social World Commission on Environment and Development, sustainable development means development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It aims to balance the needs of the economy (pursuing long-term economic bene ts), society (maintaining social stability and improving the quality of life) and the environment (protecting the environment from exceeding its carrying capacity). Value-added Knowledge Sustainable consumption Green consumption is a form of sustainable consumption. The United Nations de nes sustainable consumption as the use of co services and related products to bring a better quality of life without increasing environmental degradation and without compromising the resource needs of future generations. It is not only about minimising consumption and the use of natural resources, but it is also the ECO awareness of the environmental and Social impact of services and products across their life cycle, from product design, production, consumption to waste dispOsal and re-use. greenconsumption sustainable development R 31 fi fi  3.2 Factorsto considerwhen making green consumption decisions In simple terms, green consumption incorporates ideas such as environmental protection and conservation into our daily consumption, so that resources are put to full use, and waste and pollution are minimised. Some environmental experts use the term '5R to represent this idea: Reduce alO Reduce unnecessary Consumption. Choose products that use less Example Do not use energy to produce, are less gift wrap. processed and have simple packaging. Reuse Reuse products Recycle 5R) instead of throwing them away. Buy fewer Recycle, and disposable choose products Example products. that can be Use handkerchiefs recycled. instead of tissues. Example Buy drinks in Example cans or glass Buy notebooks made bottles. from recycled pape. Re-evaluate Rescue Examples Refuse to buy products thatharm Choose products that are environmentally friendly Buy sustainable endangered species, or choose to buy products that cause the least (e.g. made from natural or seafood. Reduce the harm to the environment. recycled materials). use of plastic products. SR 5R RAU 32  Greenconsurmption Key Point 3 00ExpLoration8 How to apply 5R Celia's birthday is coming! Her parents say they will throw a birthday party for her. As Celia has just learnt about 'green consumption' and its importance to the environment, she suggests holding a 'green birthday party'. Give her some suggestions on applying 5R. Hppy Birthday Reduce Reuse (Hint: venue decorations, birthday favours) (Hint: tableware) Recycle Re-evaluate (Hint: venue decorations and accessories) (Hint: birthday favours) Rescue (Hint: food at the party) 33  ApplyingSRinourdaiyconsumptionallowsus tothinkhow ourconsunption affectssocietyandtheenvironnent.It helpsreduceneedlessspendingandwaste. Orerspendingmaynotonlyleadtođebts,but îtaso yastestheplanct'slimitedresources, Therefore weshouldpractisegreenconsumptionandconsider theaspectsbelowbefore making purchasess 2 Will l use it often? Can Is it produced and delivered Irent it or borrow it in line with the principles of from a friend? sustainable development? 3 Can I afford it? Do I realy 'need' it? 5Is it over-packaged, b Is it durable? Can the material be recycled? environmentally friendly or reusable? 1 30.*  Green consumption Key Point 3 33 Practisinggreenconsumption 00Exploration 9 How green is our consumption? 1. (a) Do you practise green consumption in everydaylife? Put a tick () in the appropriate box. Green consumption behaviour Always Sometimes Seldom Never I think twice before buying new clothes. 2 Tbuy durable clothes. 3 T buy wrinkle-resistant clothes to reduce ironing. I do not take plastic tableware when getting a 4 takeaway. l avoid buying drinks in plastic bottles or 5 cartons. I dine in to avoid getting too many takeaway 6 Containers. 7 Iavoid buying too much food to avoid wastage. 8 I buy food with simple packaging. Tbring my own container when buying food. T buy energy-ef cient light bulbs instead of 10 incandescent light bulbs. 11 Tbuy appliances with Grade 1 energy labels. 12 Tbringmy own shopping bags. 13 I walk or ride a bicycle for short trips. 14 I take public transport as much as possible. Iplan my trip wisely to reduce the need for 15 transport. (b) 'Always': 3 points; 'Sometimes': 2 points; 'Seldom': 1 point; 'Never': 0 point. Add up your score. My score is: fi  2. Collect the scores of everyone in class. Total score 0 1-10 11-20 21-30 31-40 Over 40 student(s) student(s) student(s) student(s) student(s) student(s) Low High Degree of 'greenness' 3. In each of the four categories (clothing, food, living and travelling), which consumption behaviour is the easiest? Which one is the most dif cult? Ciothing Food Easiest: Easiest: Most dif cult: Most dif cult: Living Travelling Easiest: Easiest: Most dif cult: Most dif cult: 4. Apart from the examples in Question1, can you name other green consumption behaviours? Exploration 9 shows that it is easy to practise green consumption in daily life. As long as we are willing to make changes, we can also become'green consumers' and help protect the environment and promote sustainable development. 36 fi fi fi fi fi  Green consumption Key Point 3 Below are some suggestions for green consumption: Clothing Food Select washing machines with Buy products with simple 'Grade 1' energy-ef ciency labels. packaging. Buy clothes of durable material. Be aware of the portion size when ordering Think carefully whether there is a genuine and cooking food to avoid wastage. need before buying any clothes. Minimise the purchase of takeaway Buy wrìnkle-resistant clothes to reduce food that comes in large quantities of disposable plastic containers. ironing. Living Travelling Choose electrical appliances with Travel by means of public 'Grade 1' energy-ef ciency labels. transport as much as possible. Buy items that are durable. Walk or ride a bicycle for short trips. Bring your own shopping bags. Plan trips wisely to reduce the need for Buy items made from environmentally transport. friendly or recycled materials. Buy electric cars. EValue-added Knowledge Low-carbon lifestyle Green consumption and a low-carbon lifestyle are closely related. Since the Industrial Revolution, energy consumption has increased rapidly. A large amount of carbon dioxide has been released (carbon emissions), which has accelerated global warming and increased the temperature on Earth. According to a European Union meteorological agency, June 2023 was the hottest June on record globally. To meet the challenges brought by climate change, experts suggest that we adopt a low-carbon lifestyle so as to reduce carbon emissions. Green consumption is a consumption model that is environmentally friendly and takes into account the need to CarbonWallet conserve energy and resources. It is Hong Kong's One-stop therefore an integral part of lowW-carbon Green Lifestyleo 41 AM lifestyle. Reward App CarbonWallet 4 A mobile app in Hong Kong aims to promote a low-carbon lifestyle by Welcome Back, Jamie! weekly targt St have 200g togo, keep it ip rewarding users who have reduced their My Achivements My CW Points 500g carbon emissions. o2800 37 fi fi  When we become green consumers', we can reduce consumption behaviours that harm the environment. At the same time, our behaviour can encourage producers to launch more 'green products', and even adopt production and sales practices that are more environmentally friendly. More green consumption % Producers Consumers Launch more 'green products' InformationAnalysis Photo Green consumption A photo shows a real scene to re ect a social phenomenon. When studying a photo, one should: Pay attention to the title. Pay attention to the background (e.g. date, time, location) and the subject (e.g. the person / people, such as the clothing, facial expressions and gestures; objects and their appearances) Question How does the Consumer in the photo practise green consumption? Explain. 38 fl  Green consumption Key Point StoryteLling With Cartoon Consequences of incorrect attitudes towards consumption Will incorrect attitudes towards consumption cause nuisances in our daily life? Read the story: I already bought a few T-shirts last 1 month, but these ones are offered at a discount. 'd better buy them too! Specialoffers for How did I manage to buy so mang fashionable T-shirts things? | don't have that much yhigh space in my house! There're so The many cardboard boxes! rst 50 Bob only 2) Why does my credit card debt increase so quicklg? Oh well, who cares? Iljust keep repaying the minimum payment for now. I've bought some of my favourites again! | feel so happy! Let me throw away these credit card receipts. 1 $2,44O View noW) My phone is infected! The latest movies have been uploaded. Watch them for free! ! Idon'tknowwhatwebsite it is, Your phone has been infected by a virus. but since the lms are free, I'll watch them angway! What's wrong with Bob's consumption habits? How do these habits affect his daily life? 3S fi fi fl  eniJlstesa OModule gecap 100316 159T103niio 293n9ups210 noiemu2n03 abiowot 2abuiüio ortceiun8880 Eamue00 ebswole Uses of money include consumption, Different Uses savings, investment, and donations. of moneyno1h 298 ootmsdfpud 9jed hl inuos2ik We need to identify items that we need Setting and items that we 'want Then, we make priorities and choices accordingly. budget for consumption items Three components of borrowing: principal, interest and borrowing period. Responsibilities, Rational and costs and risks The cost of borrowing is the need to pay to be borne responsible interest. when borrowing money management The risks of being unable to repay the debts include lower credit scores, bankruptcy, and stress. General Financial institutions primarily provide nancial services in deposits, loan, insurance and investment. services provided by nancial institutions The riskier an investment, the higher the Investment expected returns. risks and returns Beware of investment fraud. 40 fi fi  Risks: online scams on unreliable websites; personal data leaked or being stolen; products Dealing with received not matching the description; risks of online overspending and even getting into debt. shopping Coping strategies: use credible online shopping platforms; Use secure payment methods; protect personal data; pay attention to return arrangements for online purchases; avoid becoming addicted to online shopping. Precautions about online Intellectual property is the name commonly shopping Respect for given to a group of separate intangible intellectual property rights. property rights Intellectual property issues in online shopping: counterfeit goods and infringing works. Criminal activities related to online shopping Combating affect individuals and society. crimes relating to online Consumer's responsibilities: gain a better shopping understanding of cybersecurity; enhance network security; avoid breaking the law unknowingly. Importance of cybersecurity: It protects individuals, organisations, and governments from cyber attacks and cyber crimes, thus contributing to safeguarding national security. Green Green consumption (also known as consumption SUstainable consumption) and sustainable and development are closely related. It aims to sUstainable balance economic, social, and environmental needs. development Green Factors to 5R includes reduce, reuse, recycle, re-evaluate and rescue. consumption consider when making green consumption Consumption affects not only individuals but decisions also society and the environment. Practising Consumers practise green consumption in the green aspects of clothing, food, living and travelling. consumption 41