Collectible coins have some historic or aesthetic value to collectors. The value of many collector coins exceeds their melt value because the precious metal content is so small. Coin collectors refer to this collectible value as numismatic value, and it is determined by factors such as the type of coin, the year it was minted, the place it was minted, and its condition—or “grade.”
Dealers who sell collectible coins often have valuable coins graded by professional services. A grader examines the coin’s condition based on a set of criteria. Then the grader assigns it a numerical grade from one to 70, and places it in a plastic cover for protection. But factors like “overall appearance” and “eye appeal” are subjective, and the grade assigned to a particular coin can vary among dealers.
Expect to hold your investment for at least 10 years before possibly realizing a profit. That’s because dealers usually sell collectible coins at a markup. In addition, the market for numismatic coins may not be the same as the market for precious metals or bullion coins. It’s possible that the price of gold can increase while the value of a gold numismatic coin decreases.
For more information click here.
- Ask Students to make a list of the risks and rewards of investing in collectible coins.
- Ask students how they can protect themselves from fraudulent practices in the collectibles market.
- What are some important questions to ask before you invest in collectible coins?
- Is it possible to make a practical decision about buying a particular coin based on a photo or conversation with the seller?
- Why is it important to get a second opinion about the grade and value of the coin you are considering to buy?
Changes are coming to your Medicare card. By April 2019, your card will be replaced with one that no longer shows your Social Security number. Instead, your card will have a new Medicare Beneficiary Identifier (MBI) that will be used for billing and for checking your eligibility and claim status.
Having your Social Security number removed from your Medicare card helps fight medical identity theft and protects your medical and financial information.
Here are some common Medicare scams relating to the new cards:
- Someone calling, claiming to be from Medicare, and asking for your Social Security number or bank information.
- Someone asking you to pay for your new card.
- Someone threatening to cancel your benefits if you don’t provide information or money?
For more on the new changes to your Medicare card, visit Centers for Medicare & Medicaid Services. And report scams to the FTC.
For more information, click here.
- How do you think this change will affect patients? You?
- Replacing Social Security number with Health Insurance Claim Number will cost millions of taxpayers dollars. Do you think it is worth the expense?
- What is the biggest reason the Social Security is taking the Social Security Number off of Medicare cards?
- How will the new system affect people with Medicare?
- Who will be the affected stakeholders?
- How does it work?
Most usage-based car insurance policies have you plug a small device into your car’s diagnostic port, which is usually under the dashboard. Others use cell phone connections or apps. All of them send information about your driving to your insurer.
- Is it a good deal?
It could lower your premium if you drive safely and don’t drive lots of miles.
- How about my privacy?
There are many privacy issues to consider related to these types of policies.
For more information, click here.
- Ask students to find out if their car insurer offers usage-based insurance.
- Under what circumstance will you consider purchasing usage-based car insurance?
- What might be the purpose of using global positioning systems and other technology in determining the car insurance premiums?
- Will younger drivers embrace the monitoring devices, especially when car chips allow parents to monitor the speed and braking habits of young drivers?
CPAs and financial advisers point out five “silent killers” that create barriers for the successful implementation of estate, retirement, and investment plans. These common mistakes are:
1. Unrealistic Expectations. A valid financial plan must be based on practical assumptions, such as an appropriate forecast of rate of return, inflation, and future cash flow needs
2. Emotional Decision Making. Feelings and personal sentiment must be identified and minimized when setting goals and planning financial projections.
3. Inflexibility. A useful financial plan must take into account unexpected events. Creation of an emergency fund and contingency plan is vital.
4. Inaction. Without a plan for action, the perfect financial plan is worthless. Common results of inaction can be not having appropriate of property and casualty insurance coverage, financial hardship of dependents due to inadequate life and disability coverage, failing to address how assets are to be distributed in an estate plan, and overlooking a tax strategy.
5. Unclear Values and Priorities. Being on the wrong path will result in an undesired financial destination. Reflection of areas of importance and priorities is fundamental for implementing a financial plan and achieving financial goals.
For additional information on financial planning silent killers, click here.
- Have students talk with others about barriers they have encountered in their financial decision making.
- Have students create situations that reflect each of the five situations. Ask them to suggest actions to overcome these difficulties.
- Explain which of these financial planning barriers you believe is the most dangerous.
- What are possible actions a person might take to avoid these financial planning barriers?
Mobile start-up companies and other organizations are working with financial institutions to assist consumers with apps and websites that address various financial tasks and concerns. These include:
- Albert (www.meetalbert.com) is a mobile app to guide your financial decisions with the assistance of various financial institutions.
- EARN (www.earn.org) is a national nonprofit to help low-income families create a habit of saving and break the cycle of financial instability.
- eCreditHero (www.getcredithero.com) is designed to fix errors that appear on an estimated 80 percent of the credit reports of Americans.
- Scratch (www.scratch.fi) helps borrowers to better understand, manage, and repay loans.
- WiseBanyan (www.wisebanyan.com) is a free financial advisor that suggests and manages investment plans for various financial goals, such as savings for retirement, creating an emergency fund, and buying a home.
For additional information on innovative financial planning apps, click here.
- Have students search for a website or app that would be of value of improved personal financial planning.
- Have students talk to others about the financial concerns they face. Ask students to propose an app or website that would address a personal finance concern.
- What personal financial planning areas provide people with the most difficulty?
- Describe potential apps or websites that might be created to assist people with their personal financial planning activities?
Based on an online survey of personal finance knowledge, 40 percent of Americans earn a grade of C or worse. Financially literate people possess a fundamental understanding of money management activities, and are able to apply them for their financial well being.
The Wallet Literacy survey is available to assess your financial literacy. This test covers a wide range of topics, including credit scores, paycheck deductions, emergency funds, car insurance, home buying, inflation, and investment risk. Respondents are encouraged to use a calculator and other resources when taking the survey.
For additional information on the financial literacy survey, click here.
- Have students take the financial literacy survey to determine the areas where additional learning is needed.
- Have students encourage others to take the survey, and then have students talk with them about their results.
- What items on the survey are topic areas for which most people need additional learning?
- How might people be encouraged to learning more about various personal finance topics?
How does a class setting influence student learning? What actions create an environment that motivates and engages students?
Some of the factors that create a productive learning environment include:
- Class begins promptly and in a well-organized way.
- Learners are able to see the significance and importance of information they are learning.
- The teacher provides clear explanations and holds attention and respect of students
- Class time includes a variety of active, hands-on student learning
- Clear, specific expectations for assignments are communicated.
- Learners are provided with many concrete, real-life, practical examples.
- The class environment is comfortable for students and allows them to speak freely.
For additional information on a productive learning environment, click here.
- Ask students to describe learning environments that were most beneficial for them.
- Have students describe an activity that would be beneficial for learning personal finance.
- What are potential benefits and concerns for various actions that teachers might take?
- What actions make be taken to enhance the personal finance learning environment?
“Currency still has its place, despite the pervasive use of plastic.”
Today, it seems that more people are using credit or debit cards to pay for everything. And yet, this article provides reasons why cash may be a better payment option. Those include
- A cashless society? Not so fast. According to a recent Federal Reserve Bank of San Francisco study, 40 percent of consumer transactions involve cash–a higher percentage than for debit cards (25%), credit cards (17%), electronic payments (7%), and checks (7%).
- Currency comes in handy. Most vending machines don’t take plastic, and cash works best for all small purchases.
- Hamiltons can’t get hacked. With data breaches of major retailers becoming common, some consumers pay by cash to protect their credit card information.
- A cash fix can cost you. If you get a cash advance from an ATM outside your bank’s network, you’ll pay more than $4, on average.
- Cash is a great budgeting tool. If you have trouble controlling your spending when you pay with credit cards, then cash or a debit card is best for your finances.
- Paying by cash may be a good option, but it won’t help build your credit history. Using a credit card now and then for routine purchases can help build a good credit history.
For more information, click here.
You may want to use the information in this blog post and the original article to
- Reinforce the concept of paying by cash.
- Discuss what happens when people use their credit cards and overspend.
- Would you prefer to pay for merchandise and services with cash or credit? Explain your answer.
- How could paying with cash help you balance your budget and control spending?