February | 2024 | Focus on Personal Finance, 2024 Release

Monthly Archives: February 2024

BETTER CUSTOMER SERVICE

Posted on February 17, 2024 by Melissa Hart

Every purchase experience is enhanced by strong customer service. When unsatisfactory service is encountered, the following actions are suggested:

Be brief, clear, and concise about the problem and be reasonable about what actions you would like.
Consider posting your concern on the company’s social media site. Many companies monitor social media for customer dissatisfaction.
If your complaint involves a bank, credit card company or other financial service provider, file a complaint with the Consumer Financial Protection Bureau at ConsumerFinance.gov/complaints. For other complaints, especially from local companies, the Better Business Bureau might be of assistance.
Elliott Advocacy, a nonprofit organization, provides resources and suggests actions to resolve issues. Their website (www.elliott.org/company-contacts) has the names and contact information for customer service managers of most major companies.
Another nonprofit advocacy organization is the Consumer Action Center (https://clark.com/about-consumer-action-center/), which helps with consumer problems for free. Phone number is 636-492-5275.
For more extensive problems, especially those related to real estate or motor vehicles, Karens for Hire (www.karensforhire.com) is a paid service usually costing less than $100.

When seeking action, be sure to avoid these behaviors to obtain better customer service:

Do not communicate anger or hostility, which can result in you being viewed as the problem rather than your legitimate concern.
Do not contact the CEO; instead, consider a manager or vice president at the operational level.
Do not threaten with not doing business with the company in the future. Saying that could remove the incentive for the organization to address your complaint.

You may need to use an array of tactics to obtain the satisfaction you desire. Remember, not every action will be effective in every situation. Most important, to improve your chances of success, be kind even when you are frustrated. “Polite persistence” is the key.

For additional information on obtaining better customer service, click here.

Teaching Suggestions

Have students talk to others to learn about actions they have taken to resolve consumer problems.
Have students create a video, poster, or slide presentation with recommendations for wise shopping and to avoid consumer problems.

Discussion Questions

What actions do you believe are most effective for obtaining strong customer service when encountering a consumer problem?
Describe a potential consumer problem situation. What actions would you suggest to resolve this concern?

Do you need life insurance?

Posted on February 3, 2024 by Melissa Hart

Think about your age, your financial situation, and if you have loved ones who depend on your income. If you do decide to shop for life insurance, here are some things to consider.

How much life insurance do you need?

Life insurance helps your loved ones with financial needs when you die. Consider your mortgage and other debts, how much income would need to be replaced, money to cover a funeral, and college for the kids. Add those up, and you’ll have a good idea of how much insurance you’ll need.

2. Term or permanent?

There are two main categories of life insurance:

Term life insurance is the simplest and least expensive option. It covers you for a set period of time. You might consider term life insurance when you have a family that depends on your financial support or while you have a mortgage. For example, you may want a term life policy that lasts until your children are out of school.

Permanent life insurance provides coverage for your entire life as long as you keep up the payments. Because of the length of coverage, it costs more than term life insurance. These policies may have features that offer a cash value that can be used to invest or pay some of the premiums later in life. Permanent life policies are complicated so it’s best to talk to a financial planner when deciding if one is right for you. If you do buy a permanent life policy, make sure to check with your agent each year to see how the policy is doing and if you need to adjust your payments.

3. How much will it cost?

Insurance companies consider things like your age, health, job, and tobacco and alcohol use when setting prices. It will cost more to purchase life insurance as you get older and if you have health problems. Some companies may require a medical exam before selling you life insurance.

4. Who will benefit?

You can leave money to a spouse, children, other family member, or friend. This is known as the policy’s beneficiary. You can also name an institution as your beneficiary, such as a business or charity. And you can choose more than one beneficiary and specify how the money will be divided.

For more information, click here.

Teaching Suggestions:

Have students create situations which point out the different reasons for buying Life Insurance.
Have students survey several other people to determine their reasons for buying Life Insurance.

Discussion Questions:

What is the relationship between age and the amount a person pays for life insurance?
What personal, social, and financial factors should influence the amount of life insurance a person might desire?
Why might many insurance agents dissuade you from buying low-cost-term insurance?