Chapters

Ways to save money on home insurance

Posted on September 13, 2025 by Melissa Hart

Did your homeowner’s premium go up? Use these tips to see if you can get a lower rate.

  1. Shop around

Insurance companies charge different rates, and your company might have raised your rates.

You can shop around for a better price. Get sample rates at HelpInsure.com. Then contact the companies you’re interested in and use these tips.

Learn more: How to shop smart for home insurance (checklist)

2. Ask about discounts

Make sure you’re getting all the discounts you qualify for. Ask your insurance company if it offers discounts for:

  • Having a monitored burglar or fire alarm system.
  • Having other policies with the same company (like auto, home, life, etc.).
  • Not filing any claims for three straight years.

Learn more: Lower your home insurance cost by asking for discounts

3. Look at your deductible

Choosing a policy with a higher deductible can lower your premium. But remember that a higher deductible means you might have to pay more out-of-pocket if you have a claim. How much can you afford to pay if your home is damaged?

Remember: A good price is only a bargain if you also get good service. Call your State Department of Insurance  to check a company’s complaint record before buying a policy.

 For more information, go to:

Ways to save money on home insurance

Teaching Suggestions:

  • Have students suggest methods of determining how to save money on home insurance.  Also, ask for actions that can be taken to achieve the goals.
  • Have students create a system for starting and updating a home inventory.

Discussion Questions:

  1. When does a family or individual know they have enough home insurance?
  2. What type of insurance coverage is more important, property or liability?  Explain
Categories: Chapter 8, Home Insurance, insurance | Tags: | Leave a comment

Will my insurance premiums go up if I file a claim?

Posted on August 30, 2025 by Melissa Hart

It depends on the type of claim and how many you file. But, yes, your home and auto premiums can go up if you file claims. You could also lose any discounts you’re getting for being claim free.

  1. What counts as a claim?

Home and auto insurance companies can raise your premium for filing most types of claims. Auto companies can raise your premium if you’ve had accidents or gotten traffic tickets.

Home and auto companies can’t charge you more for:

  • Claims you file that the company didn’t pay. This includes claims the insurance company denied because your policy doesn’t cover the damage.
  • Calling your company or agent to ask questions about your policy or the claims filing process.

Home companies can’t charge you more for:

  • Claims for damage from natural causes, including weather.
  • Appliance-related water damage claims, if the repairs have been inspected and certified, unless you have three or more claims in three years.

    2. Consider your deductible
  • Before you file a claim, find out how much your deductible is. The insurance company will subtract the amount of your deductible from your claim payment. Also get repair estimates. If the cost of repairs is about the same or less than your deductible, you may decide it’s not worth filing a claim. Learn more about deductibles.

    3. Know your claims history

Insurance companies use your claims history to decide if they want to sell you a policy and how much to charge you. Most insurance companies get a report from the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history. Because most companies use CLUE, they can learn about home or auto claims you’ve filed, even if the claim was with another insurance company.

For more information, click here.   

Teaching Suggestions:

  • Ask students if they or their family members filed any home or auto claims with rheir insurance company.  If so, what was their experience?
  • Ask students if the insurance company raised their premiums or cancelled their insurance coverage.

Discussion Questions:

  1. Why is it important to consider your deductibles before filing a home or auto insurance claim?
  2. Why do insurance companies use your claims history to decide if they want to sell you a policy or much to charge you?
Categories: Car Insurance, Chapter 8, Home Insurance, insurance | Tags: | Leave a comment

A.I. PROMPTS FOR IMPROVED FINANCIAL DECISIONS

Posted on August 16, 2025 by Melissa Hart

Artificial intelligence (AI) is influencing every aspect of life and learning.  A vital skill when using AI is creating prompts to obtain valid information for your specific life situation. When creating an AI prompt, be sure to:

  • specify desired length, style, format, reference dates, reading level.
  • identify intended use, purpose, and audience.
  • begin with action verbs: create, design, explain, compare, summarize
  • split complex requests into subtasks and subproblems.
  • include examples and background information for context.
  • avoid complicated or unusual words.
  • submit follow-up requests to verify, clarify, and expand results.
  • ask for references from resources consulted.

Some suggested AI prompts to guide your financial decisions include:

Budgeting: “Help me create a monthly budget. My monthly take-home pay is [amount] with these fixed expenses [list items, amounts]. I have monthly variable expenses of approximately [amount]. I plan to save at least [amount] each month for [financial goal] in [number] years. Suggest budget categories and amounts.”  

“My variable income averages about [amount] each month. I have fixed monthly expenses of [amount].  What actions are suggested to plan for taxes, savings, and variable expenses?”

Banking Services: “Suggest a bank or credit union that minimizes fees and provides appropriate payment, savings, and loan services. I am a [describe current life situation] with a monthly income of [amount].”

Taxes: “I plan to move to [state/country], my current annual income is [amount]. What factors should I consider related to potential tax obligations in this new location?”

Wise Credit Use: “Each month, I use my credit card for several purchases, and always pay off the balance. How will this affect my credit score? What additional actions would help me build my credit score?” 

Insurance: “I’m currently [age] and [marital status] with [number] dependents. My income is [amount]. What amount of life and disability insurance should I consider? What would be an appropriate amount to pay for this coverage?”

“I currently drive a [year, make, model] vehicle, and am paying [amount] a year for auto insurance. What actions should I consider to review my coverage and reduce my insurance payment?”

Housing:  “My monthly income is [amount], I pay [amount] in monthly rent, and have [amount] saved for a down payment. How should I determine if I can afford closing costs and long-term homeownership expenses?“

Buying a Car: “I’m considering a used [year, make, model]. I’m able to afford [amount] for this purchase. What factors should I consider before buying this vehicle?”

Investing:  “I’m [age] with an annual income of [amount]. I’ve saved [amount] in an emergency fund. Now I would like to start investing for [goal] to be achieved in [number of years]. What investments should I consider?” 

Retirement Planning: “I’m [age], self-employed, and earn [amount] a year. What options do I have available to save for retirement?”

Wise Shopping:  “I’m planning to buy [item, model, other details] with a budget of [amount]. What actions would result in getting the best deal, strong customer service, and a good warranty?

Avoiding Consumer Fraud:  “When researching and buying [describe product or service] online, what actions should be taken to determine if an offer is genuine and to avoid being scammed?”

Wealth Creation:  “Based on my current key skills of [list 3-5 strongest abilities],  suggest three unique actions to use my existing skills to increase my income. For each action, suggest specific steps to implement the action and estimate the potential financial benefit.”

Despite every effort to obtain valid AI responses, be aware of these potential drawbacks:

  • Responses may possess bias and include flawed logic.
  • Incorrect facts or results not based on current financial data.
  • Inaccurate calculations and erroneous predictions.

For additional information on AI prompts for personal finance, go to:

Link #1

Link #2

Link #3

Link #4

Teaching Suggestions

  • Have students create and use an AI prompt to obtain guidance for a financial decision. Compare the response received with other sources (online search, information from friends or relatives).
  • Have students talk to others to obtain ideas on how AI is being used for financial decisions.

Discussion Questions 

  1. What features of AI might be most useful to help people improve their financial planning activities?
  2. Describe actions a person might take to evaluate the validity of an AI response.   
Categories: Chapter 1, Chapter 2, Financial Planning Topics | Tags: , | Leave a comment

Your Credit History Explained

Posted on July 12, 2025 by Melissa Hart

What’s my credit history?

Your credit history describes how you use money. It shows things like:

  • how many loans and credit cards you have
  • how much money you owe
  • how long you’ve had credit
  • if you pay your bills on time

The three nationwide credit bureaus — Equifax, Experian, and TransUnion — collect this information and put it in your credit report.

Read Checking Your Credit Report to learn how to order your report for free.

Why is my credit history important?

Your credit history tells businesses how you handle money and pay your bills. Your credit history can affect whether you get a job, can rent an apartment, or get a credit card or loan. It also affects how much you’ll have to pay in interest to borrow money.

Positive information helps your credit. Positive information includes things like paying your bills on time and having low credit card balances. Negative information, like paying bills late, hurts your credit.

What if I don’t have a credit history?

You might not have a credit history if:

  • you’ve never had a credit card
  • you’ve never gotten a loan from a bank or credit union

Without a credit history, it can be harder to get a job, an apartment, or even a credit card.

What’s a credit score?

A credit score is a number that’s based on your credit history. Each nationwide credit bureau creates a different score. Your credit score will usually range between 300 and 850.

It costs money to find out your credit score. Sometimes a company might say the score is free. But you might find that you signed up for a service that checks your credit for you. Those services charge you every month. Some credit card companies, such as Discover Card, provide free credit score with your monthly statement.  

Before you pay any money, ask yourself if you need to see your credit score. You might not since if you know your credit history is good, your score will be good.

For more information, go to:

Your Credit History Explained | consumer.gov

Teaching Suggestions

  • Ask students if they have a credit history.  If so, have they checked what information does it contain?
  • What actions can be taken to build your credit history?

Discussion Questions

  1. What is credit history?  What does if describe?
  2. Why is it important to know about your credit history?
  3. What might be the consequences if you don’t have a credit history?
  4. What can you do to build and maintain your credit rating?
Categories: Chapter 5, Credit Cards, Credit Mistakes | Tags: | Leave a comment

National Slam the Scam Day

Posted on June 28, 2025 by Melissa Hart

Social Security impersonation scams impact all age groups and remain one of the most common government imposter scams reported to the Federal Trade Commission.

“I strongly urge our citizens to be vigilant and protect themselves from criminal threats,” said Lee Dudek, Acting Commissioner of Social Security. “Scammers use fear and pressure to steal money or personal information and I implore Americans to hang up, ignore the messages, and report any scam attempts to oig.ssa.gov.”

Social Security will never tell you that your Social Security number is suspended; contact you to demand an immediate payment; threaten you with arrest; ask for your credit or debit card numbers over the phone; request gift cards, wire transfer, gold, cash, cryptocurrency; or promise a Social Security benefit approval or increase in exchange for information or money.

Criminals use sophisticated tactics to trick potential victims into disclosing personal and financial information. Be skeptical and on the lookout for these red flags: Typically, they use these P’s – Pretend, Prize or Problem, Pressure, and Payment. For example, scammers pretend they are from Social Security in phone calls, texts, emails, websites, or direct messages on social media, and claim there is a problem with the person’s Social Security benefits or Social Security number. The scammer’s caller ID may be spoofed to look like a legitimate government number. Scammers may also send fake documents to pressure people into complying with demands for information or money. Other common tactics include citing “badge numbers,” using fraudulent Social Security letterhead, and creating imposter social media pages to target individuals for payment or personal information.

Social Security employees do contact the public by telephone for business purposes. Ordinarily, the agency calls people who have recently applied for a Social Security benefit, are already receiving payments and require an update to their record, or have requested a phone call from the agency. If there is a problem with a person’s Social Security number or record, Social Security will typically mail a letter.

To report a scam attempt, go to oig.ssa.gov.

For more information, go to www.ssa.gov/scam, Social Security and OIG Partner for National Slam the Scam Day | SSA  and www.ssa.gov/fraud.

Teaching Suggestions:

  • Ask students if they or their family members have been contacted by Social Security employees?  If so, what was the reason for the contact?
  • Ask students if they have ever called Social Security local office?  If so, what was their experience with the office?

Discussion Questions:

  1. What can people do to protect themselves from criminal threats by fraudsters?
  2. What are examples of tactics that scammers use to steal your money and personal information?
Categories: Chapter 6, Frauds and Scams | Tags: | Leave a comment

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

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