Chapters

Inside Warren Buffett’s Childhood Home

Posted on April 25, 2015 by Melissa Hart

“Within these hallowed halls live the memories of Buffett buying his first stock–six shares of Cities Service.” 

Warren Buffett is known for being frugal.  His conservative, frugal nature may have started in his childhood home.  This article provides a link to a video that provides a bit of history about Warren Buffett and allows you to tour the home where Buffett bought his first stock–six shares of Cities Service.  It’s also the place where he cooked up one of his first business plans to buy a six-pack of Coca-Cola for a quarter and sell sodas for a nickel each.  Take a look and enjoy a bit of history about the second-richest man in America.

For more information, click here. 

Teaching Suggestions

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

  • Explore some of the reasons why Warren Buffett has been successful not only in investing, but also in life.

Discussion Questions

  1. Warren Buffett started investing when he was very young. He purchased six shares of Cities Service stock.  From that first investment, he went on to build an empire.  What advice do you think Mr. Buffett would give a beginning investor today?
  2. Mr. Buffett is so rich that he could buy just about anything in the world. And yet, he is still known for being frugal.  How do you think this frugal nature affects his investment philosophy and his lifestyle?
Categories: Chapter_11, Investments | Tags: , | Leave a comment

Protecting Your Retirement Pension

Posted on April 22, 2015 by Melissa Hart

Pension advance lenders offer retirees and veterans a loan or cash advances in exchange for all or part of their pension payments.  Paying back the advance or loan, plus the high interest and fees that such loans typically include, could threaten older Americans’ retirement security.

If you are considering a pension advance, follow these do’s and don’ts:

  • If you are asked to sign up for life insurance with the pension advance, you could end up paying the insurance premium.
  • If you are resorting to pension advances due to financial difficulties, consider getting financial coaching or counseling from a professional.
  • Don’t be fooled by patriotic-sounding names, logos, or claims of government backing.
  • Don’t give anyone access or control over your monthly pension payments.

For additional information, and learn more, click here.

Teaching Suggestions

  • Ask students to research local non-profit credit counseling agencies and what services they provide.
  • Why is it important not to give anyone access or control over your monthly pension payment?

Discussion Questions

  1. Why do people resort to pension advance loans?
  2. What are other alternatives to pension advance loans?
  3. What recommendation should you take to protect your retirement pension when considering an advance?
Categories: Chapter 5, Retirement Planning, Savings | Tags: , , | Leave a comment

3 Ways to Diversify Retirement Savings Beyond Stocks

Posted on April 15, 2015 by Melissa Hart

“Reluctant to put more of your hard-earned money aboard the roller coaster known as the stock market?  Then it may be a good idea to diversify your retirement savings with other assets, which can reduce your overall risk.”

In this article, Cliff Goldstein suggests three different alternatives that could help you increase the diversification in your investment portfolio.  Of course each investment alternative–real estate, peer-to-peer lending, and precious metals–comes with risks that should be carefully considered before making any decisions.  Along with the potential risks for each investment, the advantages of each investment  alternative are described in this article.

For more information, click here. 

Teaching Suggestions

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

  • Reinforce why investors should use asset allocation to diversify their investments.
  • Point out the reasons why some people choose real estate, peer-to-peer lending, and precious metals in place of or in addition to more traditional investment alternatives.

Discussion Questions

  1. Pick one of the investment alternatives in this article–real estate, peer-to-peer lending, or precious metals. What are the advantages of the investment you chose?  What are the disadvantages of the same investment?

2.  Assuming you had $75,000 to invest.  Would you use one of the three investment alternatives described in this article or would you prefer a more traditional investment in stocks, bonds, or mutual funds?  Explain your answer.

Categories: Chapter_11, Investments | Tags: , , | Leave a comment

10 Life Hacks That Will Make You Richer

Posted on April 11, 2015 by Melissa Hart

“Money interviewed dozens of experts in different fields to find out which skills, tricks, and workarounds are most financially worthwhile.”

In this article Daniel Bortz and Susie Poppick describe 10 different activities that can help anyone advance their career and increase their salary.    While the list below identifies different activities, more specific information about each activity is provided in the article.

  1. Master the meeting
  2. Lend a hand at work
  3. Learn a language
  4. Get techy
  5. Write better
  6. Learn social savvy
  7. Take back your workday
  8. Sell yourself
  9. Learn to DIY (Do It Yourself)
  10. Get Organized

For more information, click here. 

Teaching Suggestions

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

  • Point out that the suggestions in this article can improve their productivity on the job and make them a more valuable employee.
  • Encourage students to read the article for specific information about each of the above activities.

Discussion Questions

  1. In today’s work environment, why is it important to “make yourself a more valuable employee?”
  2. Ask students to review the 10 different activities and pick the two they feel are the most important. How could those two activities make you a better employee?
Categories: Career, Career Training, Chapter 1, Skills Development | Tags: , , | Leave a comment

Caution: Car Title Loans Can Leave You Stranded

Posted on April 8, 2015 by Melissa Hart

Have you seen a sign offering a car title loan—also known as a pink-slip loan, title pledge or title pawn?  These loans are use your paid-off car as collateral, and you get a small, short-term loan with a high interest rate.  You usually have to repay the loan in 15 or 30 days, and the annual percentage rate (APR) is often more than 100 percent.  If you don’t pay back the loan, the company can repossess your car—and then you’re worse off than you were before.  It’s a very expensive way to get money.

Before you decide to take out a car title loan, weigh some options.

  • Can you get a small loan from your bank, credit union or a small loan company? Even a cash advance on a credit card might cost less than a car title loan.
  • Shop for the offer with the lowest cost. Compare the APR and the finance charges, and borrow only what you can repay in time.

For additional information, click here.

Teaching Suggestions:

  • Ask students how they can avoid costly loans like car title loans?
  • Why car title loans are considered risky and undesirable?

Discussion Questions

  1. What can consumers do if car title lenders fail to disclose all the qualifying terms associated with obtaining a loan at its advertised rate?
  2. What can government agencies do to protect consumers in the short-term lending and auto marketplaces?
Categories: Chapter 5, Credit Mistakes | Tags: , | Leave a comment

Reverse Mortgage Complaints

Posted on April 4, 2015 by Melissa Hart

Reverse mortgages are a special type of loan that allows homeowners, 62 and older, to borrow against the accrued equity in their homes.  Reverse mortgages can help some older homeowners meet financial needs, but they can jeopardize retirement security if not used carefully.

In February 2015, the Consumer Financial Protection Bureau (CFPB) released a report that some homeowners have experienced problems with reverse mortgages.  The most common reverse mortgage complaint is about difficulty with changing the loan terms and problems communicating with loan servicers.  Some consumers, for example, express frustration about slow, inconsistent communication from their reverse mortgage loan servicer.

If you are having a problem with your reverse mortgage or having problems getting through to your mortgage servicer, you can submit a complaint to CFPB online or by calling (855) 411-2372 or TTY/TDD (855) 729-2372.  The CFPB will forward your complaint to the company and work to get you a response within 15 days.

For additional information, click here.

Teaching Suggestions:

  • How can a person access funds from a reverse mortgage?
  • Ask students what other alternatives might be available before settling for a reverse mortgage?

Discussion Questions

  1. What is the purpose of a reverse mortgage?
  2. Can people with very low equity in their home qualify for a reverse mortgage?
  3. How can people protect themselves from dishonest reverse mortgage providers that charge exorbitant fees?
Categories: Chapter 7, Financing a Home | Tags: , | Leave a comment

THINGS NOT TO BUY

Posted on April 1, 2015 by Melissa Hart

To avoid wasting money, financial experts suggest cutting back on items that might not best serve your needs, such as:

  • cable television, since there are less expensive alternatives such as online streaming, which save a person over $800 a year.
  • name-brand razor blades costs can be reduced by using a membership program or by shopping at a discount retailer.
  • bottled water costs can reduced by using a home purification system.
  • USB drive costs can be reduced with the use of cloud storage.

For additional information on wise buying, click here:

Teaching Suggestions

  • Have students talk to others and create a list of items on which money is often wasted.
  • Have students suggest lower-cost alternatives for various items that are purchased regularly.

Discussion Questions 

  1. What actions can be taken to find low-cost alternatives for items that are purchased frequently?
  2. Explain short-term and long-term financial benefits of saving money on items that are purchased frequently.
Categories: Chapter 2, Chapter 6, Wise Shopping | Tags: , | Leave a comment

Affordable School Tips

Posted on March 28, 2015 by Melissa Hart

To help students and their families reduce the costs associated with college, AffordableSchoolsOnline.com provides information and links on various topics.  Features of this website, which was previously known as FrugalDad.com, include coverage college selection, financial aid, saving for college, and career trends for selecting a major.

For additional information on money-saving tips for school, click here:

Teaching Suggestions

  • Have students conduct online research to determine actions that might be taken to reduce education costs.
  • Have students interview various people to determine actions to take to reduce education costs.

Discussion Questions 

  1. What actions have you taken to reduce education costs?
  2. Describe attitudes and beliefs that may minimize a person’s desire to reduce their education costs.
Categories: Career, Chapter 2, Financial Planning, Wise Shopping | Tags: , | Leave a comment

Financial advice for singles

Posted on March 25, 2015 by Melissa Hart

Since they usually have fewer financial responsibilities, singles have a greater opportunity to save for a future family, advanced career training, or long-term financial security (retirement). Singles are also able to share their time (volunteering), talents (teaching others skills/knowledge they possess), and treasures (financial donations) to address local and global concerns related to education, hunger, safe water, health care, job training, and other social issues. Single people, as well as others, may take advantage of free community events, doing volunteer work, and using barter/exchange platforms to share recreational facilities, events, and experiences.

For additional information on financial advice for single, click here:

Teaching Suggestions

  • Have students talk with others who are involved in addressing various social concerns through volunteering and other community service activities.
  • Have students survey several people to determine various actions that might be considered for achieving financial goals.

Discussion Questions 

  1. How does your life situation affect your financial responsibilities and spending?
  2. What short-term and long-term financial goals are you planning for at this point in your life?
Categories: Chapter 2, Chapter 6, Financial Planning, Wise Shopping | Tags: , , | Leave a comment

Prepaid Industry Scorecard

Posted on March 18, 2015 by Melissa Hart

Millions of consumers use prepaid cards for spending, saving, and managing their money. Card issuers offer diverse products to meet the needs of users and prepaid cards vary immensely across the industry. Such diversity is beneficial to consumers, provided that the overall quality of products is high and that providers continually strive to meet the needs of consumers.

At the same time, it is important at this point in the industry’s development to take stock of the quality of products in the marketplace and to encourage prepaid card issuers to pursue policies that actively improve consumers’ financial lives. Drawing upon the framework of CFSI’s Compass Principles and the definitions of quality articulated in the Compass Guide to Prepaid, this report assesses the level of quality in the current prepaid card marketplace and provides a set of benchmarks against which future progress can be measured.

Eighteen General Purpose Reloadable (GPR) cards are analyzed in this report. These cards collectively represent approximately 90% of the total GPR card marketplace and include the largest players in the industry, as well as a sampling of smaller programs with particularly innovative cards. To develop scores for the industry as a whole, these eighteen cards were assessed against the recommendations outlined in the Compass Guide to Prepaid. Quantitative and qualitative methods of analysis were employed to generate scores that accurately capture the quality of products in the prepaid card marketplace.

For additional information on the Prepaid Card Industry Scorecard, click here:

Teaching Suggestions

  • Have students research various fees associated with prepaid debit cards.
  • Have students create a short video that communicates actions to avoid fees for prepaid debit cards.

Discussion Questions 

  1. What are the main differences between traditional and prepaid debit cards?
  2. Explain situations when people might use a prepaid debit card.
  3. Are there certain age demographics that would use prepaid debit cards more?
Categories: Chapter 4, Debit Cards | Tags: , | Leave a comment

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