Does It Sounds Too Good To Be True?

Posted on April 22, 2017 by Melissa Hart

A current email scam invites people to take advantage of “a little known Social Security contract” which enables you to receive “little known benefits.”  Think that sounds too good to be true? It should—there is no “little known Social Security contract.”

What are some clues that scams might not be legitimate?  Scammers insist that the situation is urgent and issue warnings.  They try to convince you to act now to avoid dire consequences.  They promise a deal or secret that the public doesn’t know about.  They come from organizations unknown to you.  They offer things the government doesn’t want you to know, but they don’t come from a .gov website.

The Federal Trade Commission’s website maintains a list of scams in the news.  You can sign up to be notified by an e-mail when new scams appear.  You can also get free consumer education materials and read the latest from consumer protection experts.  Stay well informed by visiting the FTC scam alert page.  It’s in your best interest to find out about the scams and how they work so you won’t fall a victim to one yourself.  Protect yourself by learning how to avoid scams and fraud.  You can search for “identity Theft” or “phishing scam” on Social Security website, www.socialsecurity.gov to learn more about how to protect yourself.  Then you’ll be the one who knew it sounded too good to be true.

For more information, click here.

Teaching Suggestions

  • Ask students what they would do if they received such enticing offers.
  • Ask students to make a list of agencies where they can file a complaint against these scammers.

Discussion Questions

  1. How can you determine if the offer is legitimate?
  2. What can you do to protect yourself from such bogus offers?
Categories: Chapter_14, Frauds and Scams | Tags: , , | Leave a comment

FINRA’s National Financial Capability Study (NFCS)

Posted on April 15, 2017 by Melissa Hart

According to a recent FINRA study, the financial circumstances of Americans have improved over the last several years—driven in large part by an improving economy and job market.  For example, the percentage of survey respondents reporting no difficulty in covering their monthly expenses increased from 36 percent to 48 percent.  This is very significant and 12 percentage point improvement.

However, some groups are still struggling, particularly blacks and Hispanics, those without a high school education, and women.  Here are some sobering statistic: About half of respondents with only a high school diploma or no diploma could not come up with $2,000 in an emergency compared to 18 percent for those with a college degree.

Debt continues to be a problem for many Americans.  More than one-in-five Americans have unpaid medical debt.  Similarly, more than one-in-five Americans with credit cards have been contacted by a debt collection agency in the last year.

In terms of financial literacy, absolute levels are low; only 37 percent of respondents are considered highly financial literate—meaning they could answer four or five basic questions correctly on a five-question financial literacy quiz.  And, financial literacy is down slightly since 2009.

For more information,click here.

Teaching Suggestions

You may want to use the information in this article to

  • Help students understand that many minority groups are still struggling even though economy and job markets have improved.
  • Explain how people can improve their financial lives by saving even a tiny portion of their income for emergencies.

Discussion Questions

  1. What can be done to improve the financial circumstances of minorities?
  2. What might be some reasons that debt continues to be a problem for many Americans?
  3. Since financial literacy levels are so low, what can individuals, local, state and Federal governments can to improve financial literacy of all Americans?
Categories: Chapter 1, Financial Planning | Tags: | Leave a comment

Essential Career Questions

Posted on March 25, 2017 by Melissa Hart

Career planning experts offer a wide variety of guidelines for moving forward in your employment situation.  Use of the following questions can help you develop an action plan for greater career success and personal satisfaction.

  1. What do you like to learn?
  2. What do you do in your spare time for fun?
  3. Are you creating a career for your parents, for society, from your own excitement, or for money?
  4. What is your definition of work?
  5. What challenge excites you the most in your life right now?
  6. What impact do you want to have on other people’s lives or in the world?
  7. Do you feel confident that you are exceptional at something?
  8. What do you want: more joy or more power?
  9. Do you want to be like your parents? Why or why not?
  10. What do you do that builds your confidence?
  11. How often are you bored
  12. Are you proactive about sharing your ideas with your team and managers?
  13. Whom do you admire most? Are they passionate and purpose driven by their work?
  14. When you make decisions about your career, do you often consider what other people will think of your decision?
  15. What advice would you give yourself today about where you are in your career based on where you want to go?
  16. What does success mean to you?

For additional information on essential career questions, click here.

 

Teaching Suggestions

  • Have students use one or more of these questions to talk to others about their career planning activities.
  • Have students prepare answers to several of these questions to help guide their career planning activities.

 Discussion Questions 

  1. Which of these questions are most valuable to you to guide your career planning activities?
  2. What are some additional questions that you might ask yourself or others to help guide their career planning?

 

Categories: _Appendix B | Tags: | Leave a comment

Monthly Actions to Save $1,000

Posted on March 18, 2017 by Melissa Hart

Many people in our society are not able to save.  They are barely able to cover their monthly expenses.  However, there are some actions that can help you get on a path to saving.

In the first month, open an online bank account and deposit a minimum amount, such as $5.  This is a very important first step.  In month two, save $15 (or more) in your online savings account.  One way to do this is with Paribus, an online tool that searches various retailers to determine if you are owed money for past purchases as a result of a price drop.

Your goal for month three is to work toward savings $100.  This could be accomplished by signing up with market research companies to participate in providing opinions. Or, you could try selling old items online. By consistently using various ideas for earning extra money, you should be able to save $100 a month.

For additional information on starting a savings program, click here.

Teaching Suggestions

  • Have students to talk various people to determine actions they take to reduce spending or earn extra money.
  • Have students create a summary presentation describing actions that might be taken to increase a person’s savings.

Discussion Questions 

  1. Describe attitudes and behaviors that might result in people not being able to save for the future.
  2. What are actions you have taken to reduce spending and to earn extra money for savings?
Categories: Budget, Chapter 2, Chapter 6, Wise Shopping | Tags: , | Leave a comment

Top Employee Benefits

Posted on March 11, 2017 by Melissa Hart

Several companies provide benefits that go beyond the usual to serve their employees.  Some examples include:

  • IKEA offers as much as four months paid parental leave to both part-time and full-time employees after working for the company for a year.
  • Bain & Company sponsors an annual soccer tournament for employees in different locations around the world.
  • Facebook provides healthcare coverage and free housing for interns.
  • Starbucks provides full tuition reimbursement for employees for an online bachelor’s degree through Arizona State University.
  • Eventbrite offers a monthly $60 wellness stipend for use on expenses such as gym dues and juice cleanses.
  • Deloitte offers sabbatical programs. One is an unpaid one-month sabbatical, which can be taken for any reason. Another is a three- to six-month sabbatical for personal or professional growth with 40 percent pay.
  • Southwest offers employees and dependents access to Clear Skies, which provides confidential counseling and legal consultation.
  • Timberland employees can take up to 40 hours of paid time off per year to volunteer.

For additional information on unique employee benefits, click here.

 

Teaching Suggestions

  • Have students talk to others about the employee benefits they believe to be most valuable for their life situation.
  • Have students suggest employee benefits that would be of value for various household and life situations.

Discussion Questions 

  1. Describe family and life situations that would be helped by various employee benefits.
  2. What are factors people might consider when determining whether to take a job with an organization?
Categories: _Appendix B | Tags: , | Leave a comment

Overdraft Opt-in or Opt-out?

Posted on March 4, 2017 by Melissa Hart

Most financial institutions offer overdraft programs for checking accounts, which for a fee covers a transaction where there is not enough in the account.  However, this service can result in several fees before the next deposit is made.  For debit cards, an overdraft fee cannot be charged unless you have agreed (“opted in”) to these fees.

To reduce or eliminate overdraft fees, these actions are suggested:

  1. carefully track your balance; sign up for low-balance alerts
  2. check your balance when making a debit card purchase; also consider other checks that may not yet cleared
  3. do not opt-in to an overdraft program for your debit card, or opt-out if you are currently opted in; while your debit/ATM may be declined, you will avoid high fees
  4. link your checking account to a savings account to cover overdrafts
  5. contact your financial institution to determine if you are eligible for a line of credit or a linked credit card to cover overdrafts
  6. compare account fees at other financial institutions

Complaints related to overdraft fees or other financial services may be submitted at   http://www.consumerfinance.gov/complaint/ or by calling 855-411-2372.

For additional information on overdraft programs, click here.

Teaching Suggestions

  • Have students search online or contact the costs associated with overdraft fees at various financial institutions.
  • Have students prepare a creative presentation describing actions to take to avoid overdraft fees.

Discussion Questions 

  1. Describe situations that might result in overdraft fees.
  2. What are methods to take to avoid overdraft fees?
Categories: Chapter 4, Debit Cards, Financial Services | Tags: , | Leave a comment

IRS: Protect Yourself from Telephone Scammers

Posted on February 25, 2017 by Melissa Hart

Recently, there have been numerous calls from the “IRS” threatening you with lawsuits or jail sentences unless you pay up immediately.  Don’t be a victim.  The IRS doesn’t initiate contact with taxpayers by e-mail, text message or social media channels to request personal or financial information.  This includes requests for PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts.

Remember, the IRS will never

  • Call to demand immediate payment, nor will the agency call about taxes owed without first sending you a bill.
  • Demand that you pay taxes without giving you the opportunity to question or appeal the amount.
  • Require you to use a specific payment method for your taxes, such as a prepaid debit card.
  • Ask for a credit or debit card number over the phone.
  • Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.

For more information,click here.

Teaching Suggestions

  • Ask students if they have received a call from the “IRS” impersonators. If so, what was their response?
  • Have students visit irs.gov and click on Tax Scams/Consumer Alerts to learn what the agency is doing to stop these annoying calls.

Discussion Questions

  1. What should do if you get a phone call from someone claiming to be from the IRS and you know you don’t owe any taxes?
  2. Who should you contact to report such calls from the imposters?
Categories: Chapter 3, Taxes | Tags: | Leave a comment

The Credit Repair Organizations Act

Posted on February 18, 2017 by Melissa Hart

The Credit Repair Organization Act (CROA) makes it illegal for credit repair companies to lie about what they can do for you, and to charge you before they’ve performed their services.  The CROA is enforced by the Federal Trade Commission and requires credit repair companies to explain:

  • your legal rights in a written contract that also details the services they’ll perform,
  • your three day right to cancel without with any charge,
  • how long will it take to get results,
  • the total cost you will pay, and
  • any guarantees.

What if a credit repair company you hired doesn’t live up to its promises?  You have some options.  You can:

  • sue them in federal court for your actual losses or for what you paid them, whichever is more,
  • seek punitive damages—money to punish the company for violating the law,
  • join other people in a class action lawsuit against the company, and if you win, the company has to pay your attorney’s fees.

For more information, click here.

Teaching Suggestions

  • Ask students to make a list of major provisions of the Credit Repair Organization Act.
  • Ask students if there is a time limit on reporting negative information about criminal convictions.

Discussion Questions

  1. Where and how can you report credit repair frauds?
  2. Can the FTC resolve individual credit disputes? If not, why should you file the complaint with the FTC?
Categories: Chapter 5, Credit Scores | Tags: , | Leave a comment

IRS: Protect Yourself Online

Posted on February 11, 2017 by Melissa Hart

The Internal Revenue Service, the states and the tax industry urge taxpayers to take steps to protect themselves online in the fight against identity theft.  Scammers, hackers and identity thieves are stealing taxpayers’ personal information and ultimately their money.  But, there are simple steps you can take to help protect yourselves, like keeping computer software up-to-date and being cautious about giving out your personal information.

Here are some best practices you can follow to protect your tax and financial information, click here.

  1. Understand and Use Security Software. Security software helps protect computers against the digital threats that are prevalent online.  The operating system will include security software from well-known companies or Internet providers.
  2. Allow Security Software to Update Automatically. Set security software to update automatically.  Malware–malicious software—evolves constantly, and your security software suite updates routinely to keep pace.
  3. Look for the “S.” When shopping or banking online, always ensure that the site uses encryption to protect your information.  Look for “https” at the beginning of the web address.
  4. Use Strong Passwords. Use passwords of eight or more characters, mixing letters, numbers and special characters.  Don’t use your name, birthdate or common words.
  5. Secure Wireless Networks. A wireless network sends a signal through the air that allows it to connect to the Internet.  If your home or business Wi-Fi is unsecure, it also allows any computer within range to access your wireless and potentially steal information from your computer.
  6. Be Cautious When Using Public Wireless Networks. Public Wi-Fi hotspots are convenient but often not secured.
  7. Avoid E-mail Phishing Attempts. Never reply to an emails, text or pop-up messages asking for personal, tax or financial information.  Never click on links even if they seem to be from organizations you trust.  Instead, go directly to the organization’s website.

Teaching Suggestions

  • Ask students which best practices they follow to protect their tax and financial information. Make a list and share it with other students.
  • Ask students to make a list of essential software tools available to them for keeping their financial/tax information secure.

Discussion Questions

  1. Why it might be prudent to purchase security software programs from well-known companies or Internet providers?
  2. Where should you keep your passwords list and why?
Categories: Chapter 5, Identity Theft | Tags: | Leave a comment

How to Get the Best Mortgage Rate

Posted on February 4, 2017 by Melissa Hart

“Finding the right mortgage (and how to get the best mortgage rate can be a confusing process–especially for first time home-buyers.”

Buying a home is a huge financial commitment.  In this article, Deborah Kearns discusses the following six questions that can help you decide which is the right mortgage for you.

  1. Should I get a fixed- or adjustable-rate mortgage?
  2. Should I pay for points?
  3. How much should I expect to pay in closing costs?
  4. Do I qualify for any special programs?
  5. How much can and should I put down?
  6. Any other insights on how to get the best mortgage rate?

Each question provides detailed information to help you answer the question and find the right home mortgage financing needed to purchase the home of your dreams.

For more information, click here. 

Teaching Suggestions

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

  • Help students understand the importance of purchasing a home they can afford after all other home ownership costs–taxes, utilities, repairs, etc. are considered.
  • Stress the necessity of “shopping” for a home mortgage and comparing both term of the mortgage and the effect of interest rates on total financing costs.

Discussion Questions

  1. What factors affect the cost of financing a home that you would like to purchase?
  2. How important is good credit when purchasing a home? Does it really make a difference if you have a good credit score or a bad credit score?  Explain your answer.
  3. What steps can you take to make sure that you are getting the lowest interest rate when you finance your home?
Categories: Chapter 7, Financing a Home, Home Buying | Tags: , , | Leave a comment

Blog at WordPress.com.