Hacks – skills and shortcuts – are used in many life settings. For personal finance, here are some tips that can help stop money leakages:
- Only use credit cards with financial advantages, such as cashback; always pay off credit card balances on time.
- Making weekly payments, instead of monthly, helps to save interest and reduces the amount owed faster.
- Pay off loans/debts with the highest interest rates first.
- You might consider paying off a debt with another loan if the new loan has a much lower interest rate.
- When shopping online, leave the item in the cart for several days or weeks; the price may be lower or you may decide you don’t really need the item.
- Consider bulk purchases with friends to qualify for free shipping.
- Take advantage of seasonal sales.
- Unsubscribe from email offers.
- Avoid household clutter to save time and money.
- Cook your own meals; online videos and recipes offer fast, easy meals.
- Talk to others for investment advice.
For additional information on personal finance hacks, click here.
- Have students tell their personal experience with tech, travel, or personal finance hacks.
- Have students create a video to dramatize various personal finance hacks.
- How would you decide if a personal hack will be of value to you?
- Describe actions that might be used to communicate personal finance hacks to others.
The most popular reverse mortgage program is the Home Equity Conversion Mortgage (HECM), which is insured by Housing and Urban Development (HUD).
New rules from HUD add protections for certain surviving spouses after the death of a reverse mortgage borrower. Until recently, if the non-borrower spouse was not on the loan, he or she was not entitled to remain in the property following the death of the borrower. But under HUD’s new rules, non-borrowing, surviving spouse can remain in the home if specific conditions are met. These changes apply to reverse mortgage loans in which the borrowing spouse applied for a reverse mortgage before August 2014. In addition, the couple must have resided in the property as their principal residence throughout the duration of the HECM, and taxes, property insurance and any other special assessments that may be required by local or state law must have been paid.
The concern regarding non-borrowing spouses has been a source of many reverse mortgage issues. Here’s why: The amount of money a reverse mortgage borrower can draw is based in part on the age of the youngest borrower—and unless all borrowers are 62 or over, they would not qualify for a reverse mortgage.
For more information:
Reverse Mortgage Information
- Ask students to comment on the statement: “While a reverse mortgage can be used to supplement monthly income, some borrowers may face unintended obstacles and consequences”. What might be those consequences?
- Are the new rules from HUD effective in protecting senior citizens? Why or why not?
- Why should you talk to a qualified professional before deciding to get a reverse mortgage?
- Where can you find HUD-approved HECM Counseling Agencies near you?