Chapters

Your Path To Success

Posted on August 8, 2015 by Melissa Hart

What separates successful people from others?   While favorable timing, personal connections, wealth or other advantages can lead to success, a person must also possess various success-oriented attitudes, behaviors, and skills. Some of the actions that can lead to academic, career, and personal success include:

  • Display poise and confidence in your ability.
  • Assess existing skills and knowledge.
  • Set personal and career goals that align with your abilities.
  • Develop a habit on ongoing learning.
  • Take risks that allow you the opportunity to achieve at a higher level.
  • Persevere in your work efforts
  • Be prepared to face and go beyond obstacles.
  • Rejection and criticism can lead to future success.
  • Develop effective interpersonal skills. Your ability to interact, gain support of others, and develop trust is critical.

 For additional information about a success path, click here.

Teaching Suggestions

  • Have students ask people to describe their definition of “success.”
  • Have students obtain suggested actions for personal and career success using online research.

Discussion Questions 

  1. What are common mistakes people make in their personal financial planning and career planning activities?
  2. What actions do you plan to take to improve your personal and career success?
Categories: Career, Career Training, Career_Appendix, Chapter 1, Financial Planning, Skills Development, _Appendix B | Tags: , , | Leave a comment

A Boost To Your Credit Score?

Posted on August 5, 2015 by Melissa Hart

Your credit score, which is mainly based on your history of repaying loans, can determine your ability to borrow money and how much you will pay for it.  Here is good news for some consumers: Your score may improve as a result of changes in how credit reports and scores are compiled.

FICO, a company that provides software used to produce many consumer credit scores, announced that unpaid medical debt will not have as big an impact on the new version of its most popular credit score.  And the Consumer Financial Protection Bureau (CFPB) announced that it will require the major consumer reporting agencies to provide regular accuracy reports to the Bureau on how disputes from consumers are being handled.  The CFPB said medical debt in particular is a source of numerous complaints because billing process can be complicated and confusing to consumers.  The CFPB noted that the accuracy reports will help it hold credit reporting companies accountable for ensuring that erroneous information does not damage your credit score.

These changes may help raise some consumers’ credit scores and reduce their borrowing costs.  In general, though, to build or maintain a good credit score, consumers need to manage their money carefully, and that includes using caution when taking on additional debt.

For more information, click here.

Teaching Suggestions

  • Ask students if they have requested copies of their credit reports and if the information was correct?
  • Have you applied for new credit recently, and it so, what was the outcome?

Discussion Questions

  1. What is the best strategy to maintain or improve your credit score?
  2. What are the legal steps to take to improve your credit report?
  3. If you apply for too many new credit cards, how it might affect your credit score?
Categories: Chapter 5, Credit Scores | Tags: , | Leave a comment

The Retirement Number Secret No One Wants to Tell You

Posted on August 1, 2015 by Melissa Hart

There’s a substantial gulf between the amount of money Americans have actually saved for retirement and what they might need to last throughout their golden years.”

This article reports the results of a survey conducted by the Employee Benefits Research Institute which discovered that nearly three in five people surveyed had saved $25,000 or less for their retirement.  Even worse—more than a quarter of those surveyed had saved less than $1,000.

To help plan for retirement, many financial experts suggest that you need between 70 and 85 percent of whatever yearly income you had during your career in order to sustain the lifestyle you enjoyed prior to retiring.  While these calculations provide a recommended dollar amount to provide retirement income, the same calculations often create two problems.  First, there is often a big gap between what people have saved and what they need for retirement.  Second, the amount of money you need in retirement is based on what’s important to you and the standard of living you want in retirement.  And the you may be the most important part of retirement planning.

For more information, click here.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Explain why you should plan for retirement early in your career rather than waiting until you are about to retire.
  • Reinforce the concepts of the time value of money and a long-term saving and investing program.

Discussion Questions

  1. Many financial experts suggest you begin retirement planning as soon as you begin your career. What are the benefits of planning for retirement planning sooner rather than later?
  2. How is the time value of money related to a long-term investment program and retirement planning?
Categories: Chapter_11, Chapter_14, Investments, Retirement Planning, Time Value of Money | Tags: , | Leave a comment

Free Financial Coaches Give the Working Poor a Second Chance.

Posted on July 29, 2015 by Melissa Hart

“. . . Financial coaching initiatives that target the working poor have sprung up in communities across the country.”

For low-income wage earners, the idea of paying hundreds of dollars for professional financial help can seem about as far-fetched as buying a winning lotto ticket.  And yet, help is available in a number of the nation’s larger cities including Chicago and New York.  In most cases, the financial coaches volunteer their time and have a background in personal finance or have received financial and investment training.  The participants receive specific suggestions geared to their individual situation that are designed to improve their credit score and help them build a sound financial future.  According to Richard Cordray, the director of the Consumer Financial Protection Bureau, “Having a trusted, well-informed financial coach can increase your odds of financial success.”

For more information, click here.
Note:  There is a short video that accompanies this article.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Point out that often low wage earners don’t have the money to pay a financial coach to help them manage their finances.
  • Describe different situations where the advice from a financial coach could make a difference in someone’s financial future. For example, a coach’s suggestions on how to improve someone’s credit score could lead to obtaining a credit card for emergencies or a short-term loan to bridge the gap between unemployment and employment.

Discussion Questions

  1. Assume you are unemployed and have exhausted your emergency fund.  You are behind on monthly payments including your rent and utilities.  What steps can you take to improve your financial situation?
  2. In the above situation, what suggestions do you think a financial coach could provide that would help you work through this difficult situation?
Categories: Chapter 1, Chapter_11, Financial Planning, Financial Services | Tags: , , | Leave a comment

The Supreme Court, Health Care, and You

Posted on July 25, 2015 by Melissa Hart

On June 26, 2015, the Supreme Court made an important decision about the Health Insurance Marketplace keeping           quality, affordable coverage for millions of Americans.  The Supreme Court’s decision confirmed that if you qualify, you can receive financial assistance, including premium tax benefit to make coverage more affordable no matter where you live.

On average, consumers enrolled in the Marketplace are receiving $3,260 per year in tax credit, or $272 each month.

About 8 in 10 consumers could find coverage for $100 or less with tax credit through the Marketplace.

If you don’t have health insurance, see if you can get health coverage for 2015.  You may qualify for a Special Enrollment Period due to life change, such as marriage, having a baby, or losing other coverage.  Open enrollment for 2016 starts on November 1, 2015.

For more information, click here.

Teaching Suggestions

  • Ask students if anyone in their family is affected by the Supreme Court ruling, and if so, how?
  • Ask students to prepare a summary of the major provisions of the Affordable Care Act.

Discussion Questions

  1. Why is it important to inform the Marketplace about any changes to your household, income, and insurance status?
  2. If you have health insurance through your employer or purchased it on the individual market, does the Supreme Court ruling impact you?
Categories: Chapter 9, Health Insurance, insurance, Wise Shopping | Tags: , , | Leave a comment

How to Open a Mutual Fund Account at a Brokerage Firm

Posted on July 22, 2015 by Melissa Hart

“It’s easy to figure out the right type of account—just start with what you’re saving for.”

Too often, investors want to invest, but they don’t know where to start.  While most investment companies and brokerage firms make it as easy as possible to open an account and begin investing, for many would-be investors opening an account is confusing and often traumatic.

The link below describes a practical approach that helps would-be investors to begin investing at Vanguard—one of the largest and most successful companies in the investment world.  Note:  The link below provides information for Vanguard, but other investment companies and brokerage firms provide similar information on their websites.  At the Vanguard site, there is basic information about mutual funds.  Then specific information about fees and no-load funds is included in the section “Discover Vanguard’s Advantages.”  Next, there is a section on choosing the right fund.  Then, information about different types of investment accounts is provided.  Finally, there is a 3-step process that can be used to open an account.

For more information, click here.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Remind students of the advantages of beginning to invest sooner rather than later.
  • Visit the Vanguard (or other investment or brokerage firm websites) for more information.
  • Encourage students to open a mutual fund investment account when they have saved the money needed to begin an investment program.

Discussion Questions

  1. Why do you think people are reluctant to begin investing?
  2. Even though investment companies and brokerage firms make the process as easy as possible, people are often “afraid” to open an account and begin investing. How can you overcome this fear?
Categories: Chapter_13, Investments, Mutual Funds | Tags: , | Leave a comment

Bitcoins or a Credit Card?

Posted on July 18, 2015 by Melissa Hart

Do you shop online?  Have you seen websites that allow you to pay with bitcoins?

Beware of the Bitcoin (virtual currency) risks!!

  • Values go up and down based on demand.
  • Payments made with virtual currencies aren’t reversible.
  • You do not have the same legal protections as more traditional payment methods.

For more information, click here.

Teaching Suggestions

  • Ask students if they have purchased products or services with bitcoins and what has been their experience.
  • Ask students if they check out the seller’s reputation before a purchase with bitcoins.

Discussion Questions

  1. Should the payment with bitcoins go directly to the seller or a payment processor?
  2. Does a payment through a payment processor offer any protections?
  3. If you receive damaged merchandise, will you get a refund in virtual currency, U.S. dollars, or store credit?
  4. If you have a problem with bitcoin-related product or service, where should you file a complaint?
Categories: Chapter 4, Chapter 5, Wise Shopping | Tags: , , | Leave a comment

House Rich, Cash Poor: How One Couple’s “American Dream” Home Nearly Tanked Their Finances

Posted on July 15, 2015 by Melissa Hart

“While our original $150,000–$170,000 price range would have put our housing costs at a manageable 30% of our total income, springing for a $200,000 loan shot that number up to just shy of 50%.“

For many people, a logical step after completing college is often purchasing a home and inching closer to the American dream.  And yet, there are pitfalls to obtaining a home that can lead to financial stress and the inability to reach important short-term and long-term financial goals.

This article describes how one couple took all the right steps to prepare for a home purchase, but eventually decided to purchase a home that cost more than they planned to spend on housing.  The reason was simple:  They fell in love with a home that was too expensive when compared to their total income.  The article continues to describe what happens next in their attempt to regain their financial health.

For more information, click here.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the necessity of preparing a realistic budget that reflects mortgage payments, insurance, taxes, repairs, etc when purchasing a home.
  • Share the advantages and disadvantages of owning versus renting a home.

Discussion Questions

  1. Given your goals and lifestyle, how important is home ownership to you?
  2. What steps should you take to prepare for purchasing your dream home?
  3. Assume you have found your dream home and you can afford the payments, insurance, taxes, repairs, etc. What steps are necessary to negotiate the purchase and obtain financing?
Categories: Chapter 7, Home Buying, Purchasing Strategies | Tags: , , | Leave a comment

CMS Proposes Rule to Strengthen Managed Care for Medicaid and CHIP enrollees

Posted on July 11, 2015 by Melissa Hart

On May 26, 2015, the Centers for Medicare and Medicaid Services (CMS) proposed to modernize Medicaid and Children’s Health Insurance Program (CHIP) managed care regulations to update the programs’ rules and strengthen the delivery of quality care for beneficiaries.  This proposed rule is the major update to Medicaid and CHIP managed care regulations in more than a decade.  It would improve beneficiary communications and access, provide new program integrity tools, support state efforts to deliver higher quality care in a cost-effective way, and better align Medicaid and CHIP managed care rules and practices with other sources of health insurance coverage.  Overall, this proposed rule supports the agency’s mission of better care, smarter spending, and healthier people.

For more information, click here.

Teaching Suggestions

  • Ask students to visit the CMS.gov website to learn how the healthcare delivery landscape has changed and grown substantially since 2002.
  • Ask students how CMS might strengthen the quality of care provided to beneficiaries.

Discussion Questions

  1. Why is the CMS proposing new rules to strengthen managed care for Medicaid and CHIP enrollees?
  2. How does the CMS plan to modernize Medicaid and CHIP regulations?
Categories: Chapter 9, Health Insurance | Tags: , , | Leave a comment

5 Ways To Become An Informed Medicare Consumer

Posted on July 8, 2015 by Melissa Hart

Each day, you make important choices about your finances, health, privacy, and more.  Medicare has 5 things you can do to help you become an informed Medicare consumer.

  1. Know your rights. As a person with Medicare, you have certain rights and protections designed to help protect you and make sure you get the health care services the law provides.
  2. Protect your identity. Identity theft happens when someone uses your personal information without your consent to commit fraud or other crimes.  Keep the following information safe:
    • Your name
    • Your Social Security Number (SSN)
    • Your Medicare Number (or your membership card if you’re in a Medicare Advantage or other Medicare health plan)
    • Your credit card and bank account numbers
  1. Help fight Medicare fraud. Medicare fraud takes money from the Medicare program each year, which means higher health care costs for you.  Learn how to report fraud.
  2. Get involved with other seniors with the Senior Medicare Patrol (SMP). The SMP educates and empowers people with Medicare to take an active role in detecting and preventing health care fraud and abuse.
  3. Make informed Medicare choices. Each year during the Fall Open Enrollment Period (October 25-December 7), review your plan to make sure it will meet your needs for the following year.  If you are not satisfied with your current plan, you can switch during the Open Enrollment Period.

For more information, click here.

Teaching Suggestions

  • Ask students to prepare a list of medical expenses that Medicare does not cover.
  • Ask students to check out the Centers for Medicare and Medicaid Services (CMS) videos for tips on preventing Medicare fraud and see how seniors are learning to stop, spot, and report fraud.

Discussion Questions

  1. Why is it vital to fight against Medicare fraud?
  2. Why is it important to review your health care plan during the Fall Enrollment Period?
Categories: Chapter 9, Frauds and Scams, Health Insurance | Tags: , , | Leave a comment

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