How to Spot a Pyramid Scheme

This How to Spot a Pyramid Scheme video also includes:

New Review

Easy money or pyramid scheme? Help young economists learn the difference with an explanatory video about the ways pyramid schemes take advantage of those who have big dreams for independent wealth and financial freedom.

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CCSS: Adaptable
Instructional Ideas

  • Research current examples of businesses and ask learners to discern whether the business is legitimately selling goods or taking advantage of its participants
  • Show the video in a consumer economics class or when discussing careers in business and/or finance
  • Role play the ways pyramid schemes multiply numbers with a fictional scenario involving classmates
Classroom Considerations

  • Concept is complex and may need further explanation
Pros

  • Differentiates between pyramid schemes, Ponzi schemes, and multi-level marketing businesses
  • Includes links to other videos that lend the same critical eye to popular institutions
Cons

  • None
Common Core