Chapters

Payday Loans and Cash Advances Explained

Posted on June 14, 2025 by Melissa Hart

Payday loans are loans for a small amount of money for a short time. They’re also called cash advances. Payday loans can be very expensive. Before you get a payday loan, look for other ways to borrow money.

How does a payday loan work?

  • Step 1: You give the lender a check for the money you want to borrow — plus the lender’s fees. OR you give the lender permission to take the loan amount and fees out of your bank, credit union, or prepaid card account.
  • Step 2: The lender gives you cash — minus the fees.
  • Step 3: You have to pay the lender back — usually two or four weeks later. If you don’t, the lender can cash the check or withdraw the money from your account.

Lenders have to tell you the cost of the loan in writing before you sign the loan agreement.

Make sure you understand how much the loan really costs in finance charges and annual percentage rate, or APR. The finance charge shows the cost of the loan in dollars. The APR shows how much it costs you to borrow the money for one year.

If you can, borrow only what you can pay back with your next paycheck.

What happens if I can’t pay the lender back?

It could cost you a lot more money.

If you can’t pay the lender back when the loan is due, they might let you borrow the money for two or four more weeks. This is called a rollover.

But to roll over the loan, you have to pay the fee that’s due, plus a new fee to extend the due date.

If you roll over the loan a few times, you could end up paying hundreds of dollars in fees. And you’ll still owe the original money you borrowed.

What other options do I have?

Before you decide to get a payday loan:

  • Ask for more time to pay your bills.
  • Try borrowing money from family or friends, a bank or credit union, or your credit card.
  • Talk to a credit counselor to get help.

For more information, click here.

Teaching Suggestions

  • If you need to borrow money, should you borrow from a relative or a friend?  Or, from a payday Lender?
  • Make a list of sources where you can get inexpensive and medium-priced loans.

Discussion Questions

  1. How does a payday loan work?
  2. Why is it important to explore other financing options before taking out a payday loan?
  3. What happens if you can’t pay the lender back on time?
Categories: Chapter 5, Credit Mistakes | Tags: | Leave a comment

Top scams of 2024

Posted on May 31, 2025 by Melissa Hart

Even though the number of fraud reports is roughly the same as last year, more people lost a lot more money to fraud. One in three people who reported fraud said they lost money (up from one in four last year), adding up to $12.5 billion (up $2.5 billion from 2023). People lost over $3 billion to scams that started online, compared to approximately $1.9 billion lost to more “traditional” contact methods like calls, texts, or emails. However, people lost more money per person (a median of $1,500) when they interacted with scammers on the phone. And, once again, imposter scams topped the list of scams reported.

Here are some other things to know:

  • The biggest scam losses happened by bank transfer or payment. Among all payment methods, people reported losing more money through a bank transfer or payment ($2 billion), followed by cryptocurrency at $1.4 billion.
  • Investment scams led to big losses. A majority (79%) of people who reported an investment-related scam lost money, with a median loss of over $9,000. The $5.7 billion losses in this category are up about $1 billion from last year.
  • People reported losing money more often when contacted through social media. Most people (70%) reported a loss when contacted on a social media platform — and lost more money overall ($1.9 billion).
  • Job scams and fake employment agency losses jumped — a lot. Between 2020-2024, reports nearly tripled and losses grew from $90 million to $501 million.
  • Younger people lost money more often. People aged 20-29 reported losing money more often than people 70+. But when older adults lost money, they lost far more than any other age group.

The biggest takeaway? Reporting a fraud can make a difference. If you see a fraud or scam, the FTC wants to hear about it: go to ReportFraud.ftc.gov.

For more information, go to:

Top scams of 2024 | Consumer Advice

Teaching Suggestions:

  • Did you or someone you know report a scam to the FTC?  How do such reports help the FTC bring enforcement cases and educate people about scams?
  • Why do younger people lost money more often than people 70+?

Discussion Questions:

  1. Why is it important to report a fraud or scam to the FTC?
  2. How do you report a fraud or scam to the FTC?

Categories: Chapter 6, Frauds and Scams, Uncategorized | Tags: | Leave a comment

MAKING ENDS MEET

Posted on May 17, 2025 by Melissa Hart

A study conducted by the Consumer Financial Protection Bureau (CFPB) reported that overall financial stability and well-being worsened from 2023 to 2024. The findings of the surveys included:

  • Fewer households can cover a month of expenses if they lose their main source of income. If the main source of income were lost, 42 percent of households could cover expenses for a month or less; 22 percent would be able to cover expenses for less than two weeks.
  • More households had difficulty paying bills or expenses. The share of families with these difficulties increased from 38 percent in 2023 to 43 percent in 2024.  38 percent of non-Hispanic white consumers in the study had difficulty paying bills or expenses, 63 percent of Black consumers in the study had difficulty, and 51 percent of Hispanic consumers in the study had difficulty.  
  • Financial well-being measured using the CFPB’s Financial Well-Being Scale declined.  Overall financial well-being fell to 48.7 in 2024 from 51.0 in 2023. The number of consumers with low or very low financial well-being increased from 16 to 22 percent.
  • Access to credit was also difficult for some. In 2024, 40 percent of consumers in the study applied for credit. Of those who applied, 39 percent were either denied credit or approved for a lower amount than requested. In addition, 27 percent decided not to apply because they expected to be turned down.
  • The use of credit card debt fell slightly. In 2024, 80 percent of consumers in the study had a credit card. Of those consumers, the share with revolving credit card debt decreased slightly from 53 percent in 2023 to 49 percent in 2024. Meanwhile, 23 percent of consumers with a credit card reported paying a late fee, unchanged since 2023.
  • Many respondents use multiple credit sources. About half of those in the study used a payday or pawn loan in the past year and had a credit card. About four-fifths of survey respondents had an auto title loan, buy-now-pay-later loan, or experienced an overdraft, and had a credit card.

The financial deterioration reported in this study was not the result of one specific cause. Factors that may have contributed to the situation include inflation, housing costs, high interest rates, and student loan payment resumption.

For additional information on making ends meet, see the following links.

Making Ends Meet Insights
Making Ends Meet Report
Well Being Scale

Teaching Suggestions

  • Have students interview another person about the actions taken to avoid financial difficulties.
  • Have students access the full research study to obtain additional findings and to suggest actions that might address the financial difficulties.

Discussion Questions 

  1. How might a person make use of family members, friends, and community resources when encountering financial difficulties?
  2. Describe actions a person might take to avoid the financial difficulties reported in this study.
Categories: Budget, Chapter 1, Chapter 2, Credit Cards, Debt | Tags: , | Leave a comment

Tapping Your Nest Egg

Posted on May 3, 2025 by Melissa Hart

Consider how and when to take money out of your investment accounts.

Consider whether rolling over a retirement account makes sense for you. For example, it might make sense for you if you want to consolidate multiple retirement accounts for convenience but it might not make sense if you will pay more in fees after rolling over your account. Rolling over money from one retirement account to another is a very specific process. If you don’t follow the rules, you may end up having to pay taxes. Visit the IRS’s website to learn more about rollovers at Rollovers of Retirement Plan and IRA Distributions.

When you need to take money from your account – called decumulation – consider how much you need to take out and when to take it out. This can include any RMDs (required minimum distributions). Be thoughtful regarding which assets you sell. Consider how selling those assets will affect your account’s diversification and whether you will need to rebalance your investments. Also consider any tax consequences, especially when taking money out of a tax-sheltered retirement account.

Never Stop Learning Tip: Create a plan for how and when to take money out of your investment accounts. Revisit and review the plan each year after you prepare your taxes.

For more information, click here.

Teaching Suggestions:

  • Refer students to the Retirement Planning chapter:  Dipping into Your Nest Egg.  Ask students when and how should they draw money from their nest egg?
  • Is dipping into your account wrong?  Why or why not?

Discussion Questions:

  1.  Why is it important to revisit and review your plan each year?
  2. How do you decide which assets to sell?  Why is it an important consideration?
Categories: Chapter_14, Retirement Planning, Savings | Tags: , | Leave a comment

Detect Immigration Scams  

Posted on April 19, 2025 by Melissa Hart

Scammers are impersonating attorneys and law firms, offering immigration services on social media. The posts on Facebook and other platforms might be in English or your preferred language. If you press like or leave a comment, they’ll contact you and guarantee you’ll get a work permit, green card, or citizenship — but it’s a scam. How do you spot and avoid the scammers?

The elaborate scam often starts with an offer to help you with immigration paperwork. Next, scammers ask you to send them money using Western Union or Zelle. In return, they say they’ll supposedly get you an appointment with U.S. Citizenship and Immigration Services (USCIS). People who paid scammers report having virtual appointments on Zoom or WhatsApp with a “USCIS officer” in uniform — all part of the scam. The truth? Some immigration proceedings are now virtual, but applicants get their appointments by mail or through their MyUSCIS account, never on messenger apps.

To protect yourself and others from immigration scams:

  • Go to USCIS.gov for legitimate immigration information. If you have a pending application or petition, check your case status online.
  • Recognize fake government websites. Even if a page looks legit, if the address doesn’t end with .gov, it isn’t a government website.
  • Know what types of payment USCIS accepts for filing fees. Anyone who asks you pay USCIS a different way is a scammer.
  • Share what you know. Forward this alert to people in immigrant communities. Tell them to check out ftc.gov/immigration for advice on how to find real immigration help and avoid scams targeting immigrants.

Have you spotted an immigration scam or think you may have paid a scammer? Tell the FTC at ReportFraud.ftc.gov — or in Spanish at ReporteFraude.ftc.gov. To report in other languages, call (877) 382-4357 and press 3 to speak to an interpreter in your preferred language. 

For more information, click here:  

Teaching Suggestions:

  • Make a list of actions one should take to spot and avoid the scammers.
  • What would you do if you spot an immigration scam?

Discussion Questions:

  1. Why do scammers want you to send them money using Western Union or Zelle?
  2. How can you recognize fake government websites?
Categories: Chapter 6, Consumer Complaints, Frauds and Scams, Identity Theft | Tags: , , | Leave a comment

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

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