Author Archives: Melissa Hart

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About Melissa Hart

Clinical Associate Professor at University of North Carolina-Chapel Hill, Kenan-Flagler Business School. I teach Personal and Corporate Finance.

STRATEGIES FOR CAREER ADVANCEMENT

Posted on April 5, 2025 by Melissa Hart

For your career development and employment advancement, consider these actions:

  • Show your flexibility. People often believe that being indispensable and irreplaceable will guarantee job security. However, this approach can limit your career potential and opportunities. The key to success is to make yourself valuable but not indispensable. Being vital in doing one specific thing might result in your supervisors not wanting to move you from that position. You need to be very good at your job and willing to teach others the skills you have developed.
  • Take on new challenges. Your ability to adapt to new responsibilities shows your career potential. Seek opportunities beyond your usual job, especially those at the next level of the organization. Going above and beyond expectations may involve taking the initiative to support your manager’s workload or suggesting a plan to address an ongoing company concern.
  • Communicate your ambitions. Discuss your ambitions and abilities with those who make the hiring decisions. Get comfortable talking about your skills, experiences, and accomplishments that set you apart from others. This strategy can help you be considered for a position even before the job becomes available.
  • Use internal networking. Go beyond impressing your direct supervisor or hiring manager. Connect with others within your organization to talk about current projects, industry trends, and personal interests. Consider informational interviews with supervisors and others you don’t work with regularly. These interactions will make you known within the company and provide a better understanding of the overall organization.
  • Understand your personal motivations. Before seeking a promotion, consider what you want in your career. Carefully assess if a promotion is the next appropriate step to your long-term career aspirations and personal satisfaction. Moving from work you enjoy may not be in your best interest.

For additional information on job promotion strategies, click here.

Teaching Suggestions

  • Have students talk to others to learn about the actions they have taken to improve their career opportunities.
  • Use an AI platform to seek guidance for a career development plan. Enter your abilities, interests, and career aspirations and ask for actions for your career path.

Discussion Questions 

  1. Which actions in the article might you consider using in the future?
  2. Describe an action plan you might take for your future career advancement.    
Categories: Career, Chapter 2 | Tags: | Leave a comment

Protect Your Social Security Number

Posted on March 15, 2025 by Melissa Hart

Identity theft is one of the fastest growing crimes in America. Scammers use your Social Security number (SSN) to get other personal information about you. They can use your SSN and your good credit to apply for more credit in your name. Then, when they use the credit cards and don’t pay the bills, it damages your credit. You may not find out that someone is using your SSN until you’re turned down for credit, or you begin to get calls from unknown creditors demanding payment for items you never bought.

 Your SSN is confidential.  The agency protects your SSN and keeps your records confidential and it does not give your number to anyone, except when authorized by law. You should be careful about sharing your number, even when you’re asked for it. You should ask why your number is needed, how it’ll be used, and what will happen if you refuse. The answers to these questions can help you decide if you want to give out your SSN.

How might someone steal your SSN? Scammers get your personal information by:

• Stealing wallets, purses, and your mail (bank and credit card statements, preapproved credit offers, new checks, and tax information).
  • Stealing personal information you provide to an unsecured site online, from business or personnel records at work, and personal information in your home.
• Rummaging through your trash, the trash of businesses, and public trash dumps for personal data.
• Buying personal information from “inside” sources. For example, a scammer may pay a store employee for information about you that appears on an application for goods, services, or credit.
• Posing by phone, email, text, or direct messages in social media as someone who legitimately needs information about you, such as employers, landlords, or government agencies.

For more information, click here.

Teaching Suggestions

  • Ask students to make a list of actions they can take to protect their Social Security number.
  • Ask students if they or their family members have their Social Security number stolen.  What was the outcome and how they might be protecting their number now?

 Discussion Questions

  1. Why is it important to protect your Social Security number?
  2. How most people discover that their Social Security number has been stolen?  What should they do?
Categories: Chapter 4, Chapter 5, Identity Theft | Tags: , , | Leave a comment

IS AN ADD-ON CD RIGHT FOR YOU?

Posted on March 8, 2025 by Melissa Hart

An add-on CD (certificate of deposit) is a specialty CD that allows you to add more money to the account after the initial deposit. Similar to a standard CD, the additional deposits earn the fixed rate until the CD matures. Add-on CDs are offered by some banks, credit unions, and online financial institutions.

The main benefits of add-on CDs are: (1) a fixed interest rate, especially important if market rates decline; (2) a lower initial deposit may be required than with a traditional CD; (3) additional deposits can be made to grow your long-term savings.

Potential drawbacks are: (1) the fixed rate will be lower if interest rates rise during the term of the CD; (2) a traditional CD may have a higher rate; (3) early withdrawal penalty may apply; (4) add-on CDs may not be available at many financial institutions.

For savings flexibility, consider a CD ladder.  With this plan, instead of buying one large CD, buy several smaller CDs with varied maturity dates. For example, instead of buying a one-year, $4,000 CD, buy four separate $1,000 CDs maturing in three, six, nine, and twelve months. This action provides flexibility to be able to access funds when needed without paying an early withdrawal penalty. Then, you can use the funds as needed or renew the CD. If interest rates are high, you might consider a longer-term CD to lock in the higher rate.

To open an add-on CD, search online for financial institutions that offer this savings plan, which will be especially beneficial if you don’t initially have all the funds necessary for a traditional CD.  CDs are most recommended when interest rates are high, to lock in a good rate for a longer period. Also consider deposit amount requirements and penalties when comparing CDs and other savings plans.

Your emergency fund should be kept in an account with more liquidity than a CD.  Also, once you have an adequate savings amount, be sure to consider higher return investments such as mutual funds and stocks.

For additional information on add-on CDs, go to:

Add-on CD Information
CD calculator

Teaching Suggestions

  • Have students talk to others to learn about actions they take regarding their savings programs.
  • Have students create a visual (poster, video, or slide presentation) that communicates factors to consider when comparing CDs.

Discussion Questions 

  1. What features of a savings account do you consider to be most important in relation to your financial goals?
  2. Describe situations when an add-on CD may be an appropriate savings instrument for a person’s financial goals.   
Categories: Chapter 4, Savings | Tags: | Leave a comment

USE THE NUDGE THEORY TO CUT SPENDING

Posted on March 1, 2025 by Melissa Hart
  • Useless spending can crush your savings goals.
  • The easier it is to spend money, the more likely you will spend it. 
  • Making things difficult can actually be a good thing.
  • Small changes can result in significant improvements over time.

These principles make up the nudge theory, which suggests that behavior can be shaped through small, subtle changes. Making spending harder can discourage spending and increase your financial awareness to achieve savings goals.

Adding friction to your spending activities can force you to make more deliberate purchases. To nudge your savings by reducing spending, consider the following actions:

  • Only pay cash for several weeks or months. The inconvenience of obtaining cash and keeping track of it for payments can reduce spending on frivolous items. Seeing cash in your hand can also make you more aware of its value.
  • To be more disciplined, write out a list of purchases on paper or using a notes app. While this can be annoying, it can result in immediately having more money for savings.
  • Account for all spending to avoid wasting money on silly and useless things such as empty calories and products you may not use.
  • Before making a credit card purchase, check your current account balance to help deter unneeded purchases and increased debt. 

These strategies are useful for those who are concerned about their spending and who live paycheck to paycheck. While companies make every effort to remove barriers for your spending, don’t make it simple for your money to leave you…put up obstacles.

This approach may not be for everyone. However, taking some action might save you $1,000 a year, which over ten years could be worth over $15,000 when the money is placed in an index fund or other stable investment.

For additional information on the nudge theory, click here.

Teaching Suggestions

  • Have students talk to others to obtain suggested actions for controlling their spending.
  • Have students create a podcast to communicate actions to control spending.

Discussion Questions 

  1. What aspects of the nudge theory might be useful for your money management activities?
  2. Describe actions a person might take to place barriers on their spending.   
Categories: Budget, Chapter 1, Chapter 2, Chapter 6, Financial Planning | Tags: , , | Leave a comment

FREE TAX FILING SERVICES FOR TAX YEAR 2024

Posted on February 22, 2025 by Melissa Hart

Millions of taxpayers with an uncomplicated financial situation can qualify for free online tax filing. However, be cautious of companies that advertise “free” tax filing, as not everyone may qualify.

You might qualify for free tax filing with one or more of these services:

  • IRS Free File (https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free) is for taxpayers with an adjusted gross income (AGI) of $84,000 or less. This site can also guide you to the best free filing software for your situation. Remember, some of the suggested websites have a fee for filing a state tax return. If your AGI is over $84,000 you can still use the IRS Free File; you will have to fill out the online forms on your own.
  • H&R Block (https://www.hrblock.com/online-tax-filing/) offers a free online tax filing service for low-to-moderate income taxpayers and students that includes your state tax return. This site is appropriate for taxpayers with W-2 and unemployment  income, parents who claim the Child Tax Credit as well as students and first-time filers. The H&R Block app can also be used for filing online. More complex tax situations will require the Deluxe version costing $35.
  • Cash App Taxes (https://cash.app/taxes) is for anyone filing a simple federal tax return with only one state tax return. No additional charges are involved, which includes audit defense if your return is questioned by the IRS.
  • TurboTax Free Edition (https://turbotax.intuit.com/best-tax-software/why-its-free/) is an option for which over 35 percent of taxpayers are eligible. You must have a simple Form 1040 (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest). Those who contributed to a traditional IRA or HSA won’t qualify for the free version. 
  • TaxSlayer (https://www.taxslayer.com/) is for taxpayers under age 65 with a simple return (no dependents, claim standard deduction) and one state tax return, not claiming a Child Tax Credit and no IRA or HSA contributions, and a maximum taxable income from wages or unemployment of $100,000. Allows deduction of student loan interest and educational expenses, which is especially beneficial for current and former students. Members of the military are eligible for a free return with more complicated situations – tax credits, deductions, self-employment (https://www.taxslayer.com/products/taxslayer-military/)
  • AARP (https://taxaide.aarpfoundation.org/) for taxpayers over age 50 (and active- duty military members) with an AGI under $84,000. Offers in-person and online free tax-filing assistance.
  • FreeTaxUSA (https://www.freetaxusa.com/) is free for those with a simple tax situation but is affordable for complex tax returns ($7.99), and requires a $14.99 fee for each state tax filing. The Deluxe Version includes live chat support.
  • TaxAct (https://www.taxact.com/) is beneficial for tax filers with simple returns. Those with more complex tax situations can upgrade to a Deluxe Package. Filing a state tax return has a $39.99 fee.

Final note: IRS Free File allows you to compare free tax filing options. And, if you are not eligible for a free tax return, FreeTaxUSA and TaxAct offer affordable tax filing options.

For additional information on free tax filing services, go to:

Free-tax-filing-services
Free Filing Handout

Teaching Suggestions

  • Have students talk to others about their experiences when filing federal and state income tax returns.
  • Have students visit the website of one or more of the tax services in the article to obtain additional information related to their personal tax filing situation.

Discussion Questions 

  1. What features of free tax filing websites might be beneficial for your tax situation?
  2. Describe actions a person might take to evaluate the benefits of various free tax filing websites.   
Categories: Chapter 3, Taxes | Tags: , | Leave a comment

Plan ahead for the New Year

Posted on February 15, 2025 by Melissa Hart

For many, December means spending lots of money on presents, food, travel, and other things to get you through the end of the year. And after we stretch our wallets, January’s often for taking stock and planning for the year to come.

If that’s true for you, here are some things to hopefully save you time as you transition from holiday festivities to financial goals in the New Year.

Are you:

Looking for more? The FTC’s consumer.gov site has tools to help you in the New Year and beyond. Get the basics on these and other topics like avoiding scams and identity theft at consumer.gov in English, Spanish, Chinese (Simplified), Korean, and Vietnamese. You’ll also find videos and free, one-page handouts to share in your community. 

For more information, click here.

Teaching Suggestions:

  • Ask students to get their free credit reports from Equifax, Experian, and TransUnion, and sign up for free credit monitoring with Credit Sesame or Credit Karma.
  • Ask students to list the main steps in creating a budget.  What are commonly recommended qualities of a successful budget?

Discussion Questions:

  1.  Why is it important to check your credit reports regularly?
  2.  What are the most frequent reasons for indebtedness?
  3.  What are common danger signals of potential debt problems?
Categories: Budget, Chapter 2, Chapter 5, Credit Cards, Credit Scores, Debt | Tags: , , , | Leave a comment

MINDSETS AND HABITS FOR IMPROVED FINANCIAL WELLBEING

Posted on February 8, 2025 by Melissa Hart

Warren Buffet, a renowned investor, offers five mindset actions that can contribute to your financial wellbeing and long-term wealth.  These are:

1. Invest in Yourself.  You are your most valuable asset. Critical to financial and professional success is self-improvement and personal growth.  Obtain further education, specialized certifications, and new career skills for increased marketability and earning power.  This can be achieved through online courses, workshops, or working with a mentor.

2. Think Long-Term.  Avoid a get-rich-quick belief, which is very often destructive. Instead, identify investments with the potential to grow steadily over time. Expect market values to fluctuate in the short term so resist the temptation to be concerned about these ups and downs. Focus on your long-term plan to achieve your goal of financial wealth.

3. Develop Financial Discipline. Too often people save what is leftover. Instead, develop good financial habits with a budget that avoids unnecessary spending and emphasizes saving and investing. Live below you means, even as your income increases. Automate your savings with a set amount transferred to an investment account each month.

4. Surround yourself with wise, informed individuals.  You tend to become like those with whom you associate.  Seek those who will motivate you, reveal new ideas and opportunities, and help you develop positive financial habits.

5. Be patient.  Building wealth requires patience, persistence, and staying with your plan despite short-term difficulties.

In addition to these mindsets, other habits that contribute to financial wellbeing include:

  • Set clear goals in writing with action steps and deadlines to achieve savings targets and other financial success.
  • Develop a growth mindset in which you seek feedback, learn from failure, and maintain a desire to improve.
  • Plan for continuing education. Read extensively, take courses, and develop new skills. 
  • Connect with a mentor who can provide guidance based on their experiences.
  • Practice wise money management by tracking spending, using a budget, and maintaining detailed financial records.
  • Start investing early, even with only a small amount. Be consistent with your deposits. 
  • Build a network of successful individuals who can provide financial and career guidance.
  • Volunteer in your community to make connections and gather business opportunities.
  • Consider starting a side business while working full time. 
  • Practice wise time management to prioritize high-value activities and to eliminate time-wasting activities. 
  • For physical and mental wellness obtain adequate sleep, regular exercise, proper nutrition, and stress management. 
  • Stay informed about industry trends, new technology, and economic conditions to adapt to new investment and career opportunities. 

Bottom of Form

For additional information on improved financial mindsets and habits, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students talk to others to obtain suggestions for successful investment and wealth-building actions.
  • Have students create a visual (poster, slide presentation, or video) that communicates wise mindset habits for obtaining financial wellbeing.

Discussion Questions 

  1. Which of the mindset actions are you currently using? Which ones might you implement in the near future?
  2. Describe barriers that people might encounter to prevent them from achieving long-term financial wellbeing.   
Categories: Career, Chapter 1, Chapter 2, Financial Planning | Tags: , | Leave a comment

Annuity or Lump Sum

Posted on February 1, 2025 by Melissa Hart

Many people with a retirement plan are asked to choose between receiving lifetime income (also called an annuity) and a lump-sum payment to pay for their day-to-day life after they stop working. An annuity provides a lifetime steady stream of income while a lump sum is a one-time payment.

Because this decision will affect your financial future, here is some information to help you make an informed choice. Deciding which option works best for you takes careful consideration because there are many factors to think about, such as your health, cost of living, assets and savings, and any other income you may have.

Why is this important?

Your employer may ask you to choose between an annuity and lump sum. For example, your employer may ask you to make this choice (1) if you change jobs, (2) when you stop working, or (3) even after you have begun to receive monthly annuity payments.

When making this decision, explore the benefits and risks because whichever option you choose will affect your financial future.

What are the benefits and risks?

 AnnuityLump Sum
Benefits-You will receive a steady income for the rest of your life, like keeping a part of your paycheck for life
-You may be able to provide a lifetime income to your spouse or to another beneficiary		-You can use the money to pay off large debts
-If you don’t spend all of the lump sum, you can pass it on as an inheritance
Risks-Annuities may give you less financial flexibility and may not pay benefits to your survivors
-If you are in poor health, an annuity may not provide enough money to cover medical bills		-You may outlive your retirement funds
-It’s your responsibility to manage the money to provide you

Factors you should consider:

  • Your health (and your spouse’s)
  • Your investment skills (and your spouse’s), and how they may change as you age
  • Your living expenses (now and future)
  • Your savings (and your spouse’s)
  • Other steady income (Social Security, pensions from other employers)
  • Debt (mortgage, car, credit cards, student loans, child support payments)
  • Taxes on the annuity or lump sum

For more information, click here.

Teaching Suggestions:

  • Ask students what type of annuity would best fit their financial situation and what payout option would they choose.
  • Ask students to discuss all of their possible options with an insurance agent.

Discussion Questions:

  1. Why should you consider your health in making a choice between an annuity and a lump sum payment?
  2. What are the possible benefits and risks of making “annuity versus lump sum” decision in your own financial situation?
Categories: Chapter_14, Retirement Planning | Tags: , | Leave a comment

DYNAMIC PRICING

Posted on January 18, 2025 by Melissa Hart

As you read this, prices are changing and can vary several times today. Dynamic pricing makes use of machine learning and artificial intelligence to determine changes in the costs of goods and services.

Setting prices for a product of service is an economic art to ensure a profit from the sale of each item. However, a fair price as perceived by customers is also necessary for attracting repeat sales.

Dynamic pricing differs from price gouging, which involves exploitation often because of a natural disaster (hurricane, tornado, earthquake). When an extreme need for water, food, batteries and other necessities exists, a business may radically raise prices on those items: that’s price gouging and is prohibited in many states.

Examples of dynamic pricing include:

  • Online retail prices can vary several times during a day. These variations are based on supply, demand, prices charged by competitors, the season, and clicks for an item.  The price may also vary if purchased on your phone or on your computer.
  • Fast-food businesses and other restaurants may adjust prices based on customer tracking data, demand and peak times.  Dynamic pricing can encourage customer visits on less popular days and slow times.  A backlash can occur when customers know they are being charged more during lunch than at other times of the day.
  • Ticket prices for sporting events, concerts, and Broadway shows in great demand are often higher than other events.
  • Airlines are a major user of dynamic pricing. Weekend airfares are often more expensive than weekdays as are holiday travel prices.  The fare can vary by day, location, weather, and other factors.  Flexibility of travel dates, checking online sites at different times, and viewing online calendars provided by airlines can result in savings.  
  • In addition, dynamic pricing is used by hotels, local stores, supermarkets, gas stations, car rental companies and others.

In the future, expect companies to continue to use technology to change prices many times each day. Consumers need to be smarter, shop around, and be diligent. Bottom of Form

For additional information on dynamic pricing, click here.

Teaching Suggestions

  • Have students monitor prices several times over two weeks to determine changes in an item in a store or online.
  • Have students identify online sites and apps that monitor prices to assist consumers in getting the best prices for various items.

Discussion Questions 

  1. What factors commonly affect price changes for items you buy regularly?
  2. Describe actions a person might take to get the best prices.   
Categories: Chapter 6, Wise Shopping | Tags: , | Leave a comment

PERSONALITY HIRES AND MAD SKILLS

Posted on January 4, 2025 by Melissa Hart

Hiring managers often seek candidates who enhance the work environment to reduce on-the-job stress. A “personality hire” is an employee with strong interpersonal skills who strengthens relationships among clients, customers, and coworkers. They also enhance the work culture, boost morale, and contribute to a productive job setting.

Personality hires are offered positions based on their likeability. During the interview, a sense of humor and enthusiasm can overcome experience limitations. An ability to enhance relationships within the organization and get along with anyone is viewed very favorably. Possessing personality skills does not have to be mutually exclusive of technical ability. An ideal candidate will have both job competency and be the right cultural fit.

Traditional hires sometimes resent the personality hire, who is viewed as inexperienced or too sociable for the work setting.  Also, introverts who contribute to a positive environment and high morale may be overlooked for promotions and advancement.

Another job search factor that can be to your benefit are “mad skills,” which are unusual hobbies and experiences. Examples of these rare soft skills might include knowing an indigenous language or participating in a sport played in ancient times.

Mentioning these items during a job interview can help a person stand out from other applicants while also bringing something new to an organization that no one else has, resulting in a more diverse talent pool. Obtained as an entrepreneur, through volunteering, hobbies, travel, or sports, mad skills can reflect a person’s desire for professional development or an ability to quickly make decisions in a crisis.

Hiring managers still recommend only listing hobbies and other interests on a resume if they relate to the job for which you are applying. Mad skills might not be mentioned until an appropriate time during the interview. While soft skills and technical ability are still the foundation for obtaining employment, mad skills can be a decisive factor in the hiring process.

For additional information on personality hires and mad skills, go to:

Link #1

Link #2

Link #3

Teaching Suggestions

  • Have students talk to others to learn about successful interview actions they have used.
  • Have students create a video or other visual (poster or slide presentation) with tips for success in a job interview.

Discussion Questions 

  1. What actions are you taking to better prepare your skillset for a career?
  2. Describe hobbies or experiences you have that might enhance your success on the job?
Categories: Career, Chapter 2 | Tags: | Leave a comment

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