Monthly Archives: July 2022

SECOND CHANCE BANKING

Posted on July 30, 2022 by Melissa Hart

Several groups in our society are unable to open a checking account and access other banking services because of past life circumstances.  To help address this situation, financial service providers are offering second chance banking. This program is designed to provide financial opportunities to unbanked individuals and formerly incarcerated people.

Second chance banking involves a special checking account that doesn’t require a background check of a person’s past banking history. This account has limited features to minimize potential fees and no minimum balance. For those who lack a US ID or Social Security number, a foreign ID or passport is accepted to access this service.

A major goal of second chance accounts is to build banking credibility.  Once reliability is demonstrated over time, a person is then able to open a regular checking account. These accounts have a positive impact in low-income communities, where customers traditionally pay higher bank fees resulting in their account often being closed by the financial institution due to overdrafts.

In addition to making banking available to unbanked and underbanked consumers,

second chance banking also serves as an important step in financial freedom for formerly incarcerated people. A high percentage of these individuals were unbanked prior to their confinement, lack proper identification, or denied banking services due to their criminal history. Some who previously had an account may have had it closed due to inactivity or extensive fees.

The program also involves financial education to help a person build credit, save money, and achieve financial independence. A wide variety of banks, credit unions, community development financial institutions, minority depository institutions, and community-based non-profits are involved in second chance banking.

For additional information on second chance banking, click here.

Teaching Suggestions

  • Have students talk to others to learn about difficulties they may have encountered with banking services.
  • Have students create a visual summary (poster or slide presentation) to communicate how banking services are related to successful money management and financial planning.

Discussion Questions 

  1. What are benefits of second chance banking for individuals, their community, and society?
  2. Describe actions you would recommend to a person in need of obtaining a bank account. 
Categories: Chapter 4, Financial Services | Tags: , | Leave a comment

OVERCOMING INFLATION

Posted on July 16, 2022 by Melissa Hart

With inflation, you will not be able to avoid higher prices. However, there is one action you can take that will not be affected by inflation. As advocated by legendary investor Warren Buffet, one of the strongest protections against inflation is investing in yourself. Obtaining additional career skills and improving existing ones will keep you in demand.

These added skills, unlike a lower value of the dollar, are inflation-proof. Various career abilities will be in demand no matter what the dollar is worth. These competencies can’t be taken away from you, and this investment in yourself is not taxed.

As a business owner or investor, the advice is similar. Offer a top-level product or service that will be in demand even in times of inflation. As noted by Buffet: when inflation is high the best thing you can do is be exceptionally good at something.

For additional information on an inflation strategy, click here.

Teaching Suggestions

  • Have students talk to others to learn about the actions they have taken in their lives to enhance and expand their career skills.
  • Have students research online sources available for free and low-cost classes and certification programs to enhance a person’s career skills.

Discussion Questions 

  1. What actions are you taking to enhance or expand your career skills?
  2. What are examples of exceptional products or services that might be in demand even in times of inflation?
Categories: Career, Chapter 1, Chapter 2, Financial Planning, _Appendix A, _Appendix B | Tags: , , | Leave a comment

MORE HAPPINESS FROM YOUR FINANCES

Posted on July 2, 2022 by Melissa Hart

At some point, most people realize that “money can’t buy happiness.”  However, through wise use of your financial resources, reduced stress and increased joy are possible.

To enhance your personal enjoyment and satisfaction of life, consider these questions and actions:

  • What spending from the past year do you remember with a smile? Which did you regret? Use those memories to guide current spending.
  • When during your life were you happiest? Think about what made you happy, and if money was needed for those times.
  • What household chores do you dislike? Paying others to mow the lawn, clean house, or make dinner can increase happiness.
  • Should you consider spending more time with family and friends?  Most activities and experiences provide greater joy when you do them with others.
  • Do you live near or associate with people who make you feel poor?  Avoid comparing your spending and possession to others. Trying to spend to keep up with others will likely reduce your happiness.
  • Are you grateful for things that don’t cost money?  Emphasize an attitude of gratitude for your family, friends, community activities, and other relationships. Instead of thinking about what you don’t have, stress the opportunities available for your enjoyment of life.

For additional information on happiness and money, click here.

Teaching Suggestions

  • Have students talk to others using the questions above to learn more about the connection between money and happiness.
  • Have students create an audio or video drama to communicate the positive and negative aspects of money trying to buy happiness.

Discussion Questions 

  1. How do enjoyment, satisfaction, and purpose in your life connect to your spending habits?
  2. Describe actions a person might take to better understand the connection between money and happiness.
Categories: Budget, Chapter 1 | Leave a comment

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