AFFLUENZA

AFFLUENZA LAB OBJECTIVES (Updated 11/16):

1. The students will be able to define affluenza.
2. The student will be able to list ways the American lifestyle degrades the environment.
3. The student will be able to list ways affluenza impacts families, relationships and happiness.
4. The student will understand alternative lifestyles to affluenza, like voluntary simplicity.
5. The student will gain an appreciation for how advertising influences purchase decisions.
6. The student will compare differences between credit cards using simple calculations.
7. The student will be able to define the following terms: finance charge, minimum payment,
APR, fixed and variable rates.
8. The student will understand the concepts and ideas shown in the DVD “Affluenza”.

An Introduction to Affluenza
Affluenza is the problem of our fixation with wanting and buying more “stuff” and it’s
reaching epic proportions in the US. We will watch the film “Affluenza” which defines the
term as “a painful, contagious socially transmitted condition of overload, debt, anxiety, and
waste resulting from the dogged pursuit of more”. The film shows the connection between how
what we buy affects our life and our planet. While Americans enjoy the highest standard of
living in the world, our habits are having very negative effects on the planet and our society.
Our obsession with acquiring material goods creates mountains of trash, pollutes our air and
water, and destroys our natural resources and habitats. The harmful effects on our society
include stress, depression, and increasing rates of divorce, bankruptcy and crime.

In his book, “Voluntary Simplicity”, Duane Elgin looked at simple changes people can make in
their daily lives to create a more sustainable way of living. Voluntary simplicity doesn’t mean
living in poverty. It means living a simple, more balanced life that results in greater happiness.
The idea of voluntary simplicity continues to grow and gain acceptance. Today you can find
numerous blogs and websites on the topic. The website “Simplicity Collective” defines
voluntary simplicity this way:
Voluntary simplicity is a way of life that rejects the high-consumption, materialistic
lifestyles of consumer cultures and affirms what is often just called ‘the simple life’ or
‘downshifting.’ The rejection of consumerism arises from the recognition that ordinary
Western-style consumption habits are degrading the planet; that lives of high
consumption are unethical in a world of great human need; and that the meaning of life
does not and cannot consist in the consumption or accumulation of material things”.

Some of the changes people can make in their lives include ecological awareness, personal
growth and frugal consumption.
- Ecological awareness means waking up to the beauty of the world around us. An example
might be meeting friends at Harbison forest for a walk in the woods rather than meeting them
at the mall to shop.
- Personal growth means finding happiness by volunteering and sharing with the people in our
communities rather than only thinking of ourselves.
- Frugal consumption means buying what you need rather than buying what you want.
Advertising
The way we choose to spend our money is heavily influenced by marketing. Advertising is
everywhere and its goal is to make you want material things even if you don’t need them.
Sometimes the message is clear and direct in an ad and sometimes it is subtle or even hidden.
In the 1920’s, cigarette manufacturers discretely targeted women by promoting cigarettes as
“mild” and using ads with a woman’s feminine hand reaching for a cigarette. By the 1950’s,
the first concerns about lung cancer from smoking were raised. Subsequent ads included the
“Marlboro Man”, a cowboy who represented a strong, independent outdoor man worthy of our
respect. Perhaps the most controversial marketing was in the 1980’s with “Joe Camel”. He was
a cartoon animal designed to appeal to younger smokers. Almost instantly, children recognized
this character just as often as they did Mickey Mouse.

The easiest way to free yourself from advertising’s influence is by asking “Do I really need this
or do I simply want it?” before you purchase a product. You can also ask yourself “How many
hours will I have to work to pay for this?” If you want a $400 iPhone and you make minimum
wage ($7.25/hour in SC) you will have to work 55 hours to pay for that phone. If you work 8
hour days, that’s about 7 days out of a month. Now add that to the cost of your cell phone
service along with all the other monthly expenses you have to pay for. When you look at the
cost of things in terms of the amount of time they will take from your life, you may start to see
products differently.

In some situations, voluntary simplicity and frugal consumption actually encourage us to buy
certain products. We should buy products that will last a long time and are reusable, like a
Nalgene water bottle instead of disposable water bottles that end up in the trash. We should
buy things made from recycled materials because they save energy and natural resources. We
should buy things grown or produced locally to reduce the fuel needed to get a product to
market and also to support our community.

Buying with Credit Cards

Both advertising and credit cards heavily influence the purchases we make. Today people can
obtain multiple credit cards and at increasingly younger ages. While credit cards can be useful,
they can create a false sense of wealth by allowing people to buy things they can’t afford. Too
often credit card users don’t read the fine print and if they do, they don’t understand what it
means. They aren’t aware of the fees associated with their cards and the fines applied to late
payments. A credit card is simply a loan to buy something, and that loan must be paid back.
In addition, you must pay fees to be able to borrow that money and if it’s not paid back on
time, fines are charged. The book “Affluenza” notes that in 2000, the average American
household had $7,564 in credit card debt. Even college students averaged $2500 of debt.
Younger and younger people are going into greater debt because of the use of credit cards.
DIAGNOSING AFFLUENZA
Take the following quiz to “diagnose” whether you have affluenza or not.

Yes No
___ ___ Do you get bored unless you have something to consume (goods, food, media)?
___ ___ Do you try to impress your friends with what you own or where you vacation?
___ ___ Do you ever use shopping as “therapy”?
___ ___ Do you sometimes go to the mall just to look around with nothing specific to
buy?
___ ___ Do you buy home improvement products in a large chain store rather than in the
neighborhood hardware store?
___ ___ Have you ever gone on a vacation primarily to shop?
___ ___ Do you volunteer your time less than 5 hours a week to help other people?
___ ___ Do you routinely compare the appearance of your lawn and home with others in
your neighborhood?
___ ___ Does each person in your house (or apt.) occupy more than 500 ft.2 of personal
space?
___ ___ Do you routinely gamble or buy lottery tickets?
___ ___ Do you check your investments at least once a day?
___ ___ Are any of your credit cards “maxed out”?
___ ___ Do worries about debt cause you physical symptoms like headaches or
indigestion?
___ ___ Do you spend more time shopping every week than you do with your family?
___ ___ Do you frequently think about changing jobs?
___ ___ Have you had cosmetic surgery to improve your appearance?
___ ___ Do your conversations often gravitate toward things you want to buy?
___ ___ Are you sometimes ashamed about how much money you spend on fast food?
___ ___ Do you sometimes weave back and forth in traffic to get somewhere faster?
___ ___ Have you ever experienced road rage?
___ ___ Do you feel like you’re always in a hurry?
___ ___ In general, do you think about things more than you do about people?
___ ___When you pay utility bills do you ignore the amount of resource consumed?
___ ___ Given the choice between a slight pay raise or a shorter work week would you
choose the money?
___ ___ Do you personally fill more than one large trash bag in a week?
___ ___ Have you ever lied to a family member about the amount spent for a product?
___ ___ Do you frequently argue with family members about money?
___ ___ Do you often throw away recyclable materials rather than take the time to
recycle them?
___ ___ Do you spend less than an hour a day outside?
___ ___ Are you unable to identify more than 3 wildflowers that are native to your area?
___ ___ Do your replace sports equipment before it’s worn out to have the latest styles?
___ ___ Does each member of your family have his/her own TV?
___ ___ Is the price of a product more important to you than how well is it made?
Yes No
___ ___ Has one of your credit cards ever been rejected by a salesperson because you
were over the limit?
___ ___ Do you receive more than 5 mail order catalogues in a week?
___ ___ Are you one of those consumers who almost never takes a reusable grocery bag
to the store?
___ ___ Do you ignore the miles per gallon of gasoline your car gets?
___ ___ Did your choose the most recent car you bought partly because it enhanced
your self image?
___ ___ Do you have more than 5 active credit cards?
___ ___ When you get a raise at work do you immediately think about how you can
spend it?
___ ___ Do you drink more soft drink by volume than tap water?
___ ___ Did you work more this year than last year?
___ ___ Do you have doubts that you’ll be able to reach your financial goal?
___ ___ Do you feel “used up” at the end of your workday?
___ ___ Do your usually make just the minimum payment on credit card bills?
___ ___ When you shop, do you often feel a rush of euphoria followed by anxiety?
___ ___ Do you sometimes feel like your personal expenses are so demanding that you
can’t afford public expenses like schools, parks and transit?
___ ___ Do you have more stuff than you can store in your house?
___ ___ Do you watch TV more than 2 hours a day?
___ ___ Do you eat meat nearly everyday?

Scoring: Each “yes” answer is worth 2 points. If you’re uncertain in your answer, or if it’s too
close to call, give yourself 1 point.

If you score:
0-25 pts - You have no serious signs of affluenza.

26-50 pts – You are already infected.

51-75 pts – Your temperature is rising quickly. Take two aspirin.

76-100 pts - You’ve got affluenza big time!

HOW TO BE AN ADBUSTER
Ads are often designed to play on our emotions. Ads can make you feel happy, jealous,
worried or even confused in order to make you want to buy a product. An example of this was
ads that used babies sitting in the middle of auto tires. The emotional message was if you want
to keep your baby safe, you will buy this brand of tire. Car commercials touting safety and a
quiet ride often show kids in car seats in the back. These ads are often designed to make us
think that if we buy this product we can keep our family safe. Other ads suggest if we buy a
product we will be happier, more successful or more attractive. This usually isn’t the case.
When you understand how ads work, they have less power over you and how you spend.

Together with your lab group, look at several ads and consider the following questions. Be sure
to record your thoughts in Table 1. We will discuss the results as a group.
1. When you look at the ad, what is the first emotion you feel? Don’t think about it - just
respond to your first impression.
2. What is the product being sold? Can you even tell initially? Do you have to hunt for it?
3. What is the direct message in the ad? These will often be in writing at the top.
4. What are more indirect or subtle messages? These can be found by noting what type of
people or images are being shown. Are the people young or old? Rich or poor? What does their
setting tell you about them?
5. Are there any totally hidden messages? Look hard!
6. Who is the ad trying to reach?
7. Would this ad work for you? Why or why not?

Table 1. Learning to be an Adbuster

Advertisement 1 Advertisement 2

Emotional response to ad

Product being sold

Direct message of ad

Indirect messages

Hidden messages

Target audience

Success of ad for you

THE MATHEMATICS OF CREDIT CARDS
If you use credit cards, BE CAREFUL and BE INFORMED! The following terms will help
you understand some of the additional charges and fees you pay when using a credit card.

Annual Fee – most cards charge an annual membership or participation fee. These can range
from $25 to $50 a year and even more ($75 to several hundred) for “gold” or “platinum” cards

Minimum payment – this is the smallest amount you are required to pay on your card each
month. It usually equals about 2% of your balance, so if you owe $1,000, your minimum
would be $20. (*Smart tip: paying a small amount sounds good but while you pay your 2%,
they will charge you 18-20%! That is how they make money off you).

Finance charges – this gets confusing – this is the interest you pay on the money you owe, but
there are different ways they can calculate it. Some cards will use your average daily balance
but some use average daily balance plus past purchases and/or new purchases. (*Smart tip: a
card that charges based on your average daily balance only will be the best for you).

APR or Annual percentage rate – this is how they calculate the interest they will charge you
and it’s usually between 5% and 21%. It can be variable and fluctuate with the economy or
fixed and stay the same unless the credit card company changes it in writing. (*Smart tip: a
fixed rate will usually be the best, especially if it is low to begin with).

Grace period – this is the amount of time from when you make the purchase to when the
credit company starts charging you interest. Without a grace period, you’ll be charged interest
immediately. (*Smart tip: A grace period of 25 days or more is your best bet).

The following exercise will help. Split each lab table into 2 groups. Using 2 different credit
card applications fill out the following information in Table 2.

Table 2. Credit card mathematics

Card 1 Card 2
Name of lender

Annual fee

Minimum payment

Interest rate on transferred

balances
Interest rate on purchases

Interest rate on cash

advances
Grace period

Late fees

Over the limit fees

Cash advance fees

Getting Smart about Credit Cards

Okay, think the differences in interest rates and fees don’t matter? Table 3 below shows how
long it would take to pay off a debt of $1,000 if you only paid the minimum of $20 a month. It
also shows the total amount you would eventually pay with interest added. As the interest rate
goes up, so do the totals. After looking at the results, go back to Table 2 and decide which of
the 2 credit cards would be a better choice.

Card Card 1 Card 2 Card 3

Interest rate charged 11.99% 18.24% 20.24%
Balance owed $1,000 $1,000 $1,000
Minimum payment $20 $20 $20
Time to pay off debt 70 months 95 months 111 months
Total amount paid $1,400 $1,900 $2,220
AFFLUENZA DVD GUIDE
1. What % of American homes have a dishwasher?

2. What % of American homes have TVs?

3. What % of American cars have air conditioning?

4. We shop an average of ____ hours a week yet we only play with our kids for _____ minutes.

5. The % of Americans saying they were “very happy” reached its peak in what year?

6. By age 20, the average American has seen _____________________ commercial messages.

7. Advertising takes up ________ of the space in our newspapers and ________% of our mail.

8. On average, each of us will spend _______________ of our life watching TV commercials.

9. Students must watch channel 1 in schools. Companies will pay up to $______________ to

place a single ad on channel 1.

10. In 90% of divorce cases, arguments about ___________________ play a prominent role.

11. In 1996, more than ___________________ Americans declared personal bankruptcy, more
than graduated from college.

12. Our personal savings rate is now___%. By contrast the Japanese save ___% of their wages.

13. Since 1950, Americans alone have used more resources than everyone who ever lived
before them. Each of us uses up ______________________ of basic raw materials annually.

14. How many cars do we throw away a year?

15. Families were encouraged to buy a new car every year with planned obsolescence.
Products became obsolete because they were________________________________ whether
they worked or not.
16. (Pig uncommercial) The average North American consumes:
__________ times more than a Mexican.
__________ times more than a Chinese person.
__________ times more than a person from India.

17. What does GDP stand for?

18. What does GPI stand for?

19. Voluntary simplicity – In 1996, estimates were about _______% of the Baby Boom
population were practicing voluntary simplicity. By the year 2000, estimates were up to
_________%.
FUTHER THOUGHTS ON AFFLUENZA
After viewing the film and working through the lab exercise, consider the following questions.
Reflect on your attitudes about money, shopping and happiness and write down your thoughts.

1. What is most important to you in your life?

2. How do material things and money issues create conflict in your family?

3. What are the different reasons for why you shop?

4. How does advertising influence your life and shopping habits?

5. How do you decide between what you “need” and what you “want”?

6. What kinds of “pressures” influence your shopping habits?

7. What are some obstacles that might stop you from consuming less?

8. Imagine not having credit cards. How would it affect your spending?

9. How does affluenza affect your life?

10. What personal changes might you be willing to make?

11. What changes do you think society might be able to make?

Simple changes you can make in your life

Before you buy something, ask yourself: Do I really need it? Can I afford it?
How many hours or months will I have to work to pay for it?
Can I borrow one from a friend or neighbor? Do I have an old one I can fix up or repair?
How long will it last? Is it worth the price?