I’m Young and Healthy–Is an HDHP Right for Me?

Posted on September 26, 2015 by Melissa Hart

“I’ve been told a high deductible health plan (HDHP) is a good choice for my situation and that it might save me some money.  Can you explain this to me.”

This Forbes article provides answers to the questions that many people–especially younger people–have about high deductible health insurance policies.  At the beginning, the author, Christina LeMontagne, points out that high deductible policies are a great option for healthy people, but may not be right for everyone.  She also describes what a high deductible health plan is, who can benefit  from HDHPs, and how they can save you money.

For more information, click here.

Teaching Suggestions

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

  • Reinforce what a high deductible health plan (HDHP) is.
  • Stress the fact that while an HDHP may save you money, there are risk involved if you choose this type of policy.

Discussion Questions

  1. What are the advantages of an HDHP plan?
  2. What are the disadvantages of an HDHP plan?
  3. Under what circumstances would you choose an HDHP plan?
Categories: Chapter 9, Health Insurance | Tags: , , | Leave a comment

Steps in Choosing an Investment Advisor

Posted on September 23, 2015 by Melissa Hart

The investment professional (or team of professionals) you decide to work with will depend largely on your investing goals and the types of products and services that can help you meet those goals.  Your financial needs, and the professionals you work with, are likely to change over your lifetime.  The amount of money you have to invest and your investing priorities also will likely change.  What doesn’t change, though, is the best way to find help.   FINRA (Financial Industry Regulatory Authority), an independent not-for-profit organization authorized by Congress to protect Americans’ investors, offers the following key steps for choosing financial professionals:

  1. Identify your financial needs, starting with your goals.
  2. Understand the different types of people or firms you could work with, and what each can (and cannot) offer.
  3. Search for possible candidates.
  4. Check the work background and disciplinary history of your finalists.
  5. Make sure you read and understand any paperwork you’re asked to fill out or sign.

Searching for Possible Candidates

One place to start is by talking with your friends, neighbors, relatives, and colleagues—especially those who have some experience as individual investors.  Here’s what to ask:

  • What are the names of the investment professionals you have used?
  • How long have you done business with those individuals?
  • How much or how little have you relied on their advice?
  • Have you ever had a problem with that professional? And, if so, how well and how quickly was the matter resolved?
  • How often does your investment professional contact you? Different people like to interact in different ways and on different schedules, so this question can help assess whether the relationship would work for you.

For more information, click here.

Teaching Suggestions

  • Ask students if they are working with an investment advisor. And if so, what is their experience with him/her.
  • Did students check if their investment advisor is registered with a state, the SEC, or FINRA? If so, in what capacity?

Discussion Questions

  1. Does it matter if a professional investment advisor holds relevant professional designations? Why or why not?
  2. How are the investment advisors compensated? Should you choose a fee-only advisor?  Why or why not?
  3. Is it important to ask your investment advisor for a list of clients you can contact as references?
Categories: Chapter_10, Financial Planning, Investments | Tags: , , | Leave a comment

Ticket to Work Program

Posted on September 19, 2015 by Melissa Hart

What is the Ticket to Work Program?

Social Security’s Ticket to Work program supports career development for Social Security disability beneficiaries age 18 through 64 who want to work.  The Ticket program is free and voluntary and it helps people with disabilities progress toward financial independence.

The Ticket program is a good fit for people who want to improve their earning potential and are committed to preparing for long-term success in the workforce.  Ticket to Work offers beneficiaries with disabilities access to meaningful employment with the assistance of Ticket to Work employment service providers called employment networks.  If you are ready to go to work, there are people ready and waiting to help you.

For more information, click here.

Teaching Suggestions

  • Ask students if they know someone who is disabled. Is he/she receiving any benefits from Social Security?  Have they heard of the Ticket to Work program?
  • Earning a living through employment is not something everyone can do. How does one decide whether to seek help from Ticket to Work service providers?

Discussion Questions:

  1. People are more likely to lose their incomes due to disability than death. How does the Social Security Administration define disability to qualify for benefits?
  2. More than 80 percent of working Americans don‘t have disability income insurance or are not covered adequately.  How can Ticket to Work program help these people?
Categories: Chapter 9, Disability Insurance | Tags: , , | Leave a comment

Get Help to Make Informed Financial Decisions About How to Pay For College

Posted on September 16, 2015 by Melissa Hart

It’s more important than ever for students and former students to make smart decisions about financing their college education.  Whether you are attending college soon, are a current student, or already have student loans, here are some tools and resources to help you make the best decisions for you.

For many people, how to pay for a college education is one of the first major financial decisions they’ll make.  The Consumer Financial Protection Bureau has published excellent guides on paying for college. These guides cover some of the big decisions you’ll face and will help you understand your options for financing your college education.

If you’re considering student loans to help pay for school, you’re not alone—many students need loans to cover their full cost of attendance.  If you have to take out a student loans, comparing your options can help you find the student loan best suited for your needs.

For more information, click here.

Teaching Suggestions

  • Ask students if they applied for a student loan. What steps did they take to successfully obtain a loan?
  • Ask students to prepare a list of several federal and state sources of student loans for college.
  • Ask students if they had any problems in filling the Free Application for Federal Student Aid (FAFSA) form. How was the problem resolved?

Discussion Questions

  1. If a student is eligible for a federal loan, why is it important to take subsidized loans first?
  2. If you have to borrow money for school, what are your options?
  3. What should you consider when shopping for a private loan?
Categories: Financial Planning, _Appendix A | Tags: , | Leave a comment

10 Reasons You Will Never Get Out of Debt

Posted on September 12, 2015 by Melissa Hart

“Do you feel as if you’ll be in debt forever?  You’re not alone.”

According to a CreditCards.com survey, 13 percent of Americans say they’ll never pay off all their loans, and another 8 percent say they won’t pay off what they owe until they’re 71 years old.  While the results of the survey are discouraging, this Kiplinger article describes the following 10 reasons people can’t get out of debt and also provides suggestions for getting out of debt.

  1. You don’t know how much you owe.
  2. You pay only the minimum.
  3. Your mortgage is too big.
  4. You took out too many student loans.
  5. You can’t say no to your kids.
  6. You don’t have money for emergencies.
  7. You feel a sense of entitlement.
  8. Your car loan is too long.
  9. You rack up late fees.
  10. Your interest rates are too high.

For more information, click here.

Teaching Suggestions

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

  • Explain how people get in trouble when they make financial decisions without considering the consequences.
  • Go into more detail about how each of the 10 reasons described in this article affect an individual’s financial future.

Discussion Questions

  1. How do you plan to balance your objective of creating an enjoyable and entertaining life with the objective of building a secure financial future?
  2. Based on the 10 reasons in this article, what steps can you take to improve your financial planning for the future.
Categories: Chapter 1, Chapter_11, Debt, Investments, Opportunity Costs, Time Value of Money | Tags: , , | Leave a comment

Retirement Can’t Wait

Posted on September 9, 2015 by Melissa Hart

A few decades ago, Americans had a pretty solid three-legged retirement stool.  Social Security and personal savings combined with traditional pensions led to good middle-class retirements for millions.  But today’s stool is a little too wobbly to support that lifestyle for coming generations of workers and retirees.  The Great Recession shows all of us just how vulnerable 401(k) type plans and IRAs can be, and with the savings rates dangerously low, the need to strengthen the system is clear.  Today, workers are largely responsible for their own retirement investments.  The days of a defined benefit pension that you couldn’t outlive are a thing of the past.  Today, we have to take greater ownership for starting our savings, managing and then figuring out how much to draw in retirement.

Most workers need advice on how to invest their 401(k) and IRA savings.  Too often, that advice is not delivered in the customer’s best interest.  The Labor Department is working with the financial services industry, consumer groups and Members of Congress to come up with a plan that protects retirement savings from financial conflicts of interest.

For more information, click here.

Teaching Suggestions

  • Ask students to analyze their current assets and liabilities for retirement planning.
  • Will your students’ spending patterns change during retirement?
  • What are the basic steps in retirement planning?

Discussion Questions

  1. Why is retirement planning so important for today’s workers?
  2. Can you depend on Social Security and your company pension to pay for your basic living expenses in retirement? Why or why not?
  3. Why is it important to start early for a secure retirement?
Categories: Chapter_14, Financial Planning, Investments, Retirement Planning, Savings | Tags: , , | Leave a comment

A Sick Market Is Set to Be Tested Further

Posted on September 5, 2015 by Melissa Hart

“Even after bouncing hard off last week’s lows, the stock market has appeared unwell.”

Based on current information from August 2015, Michael Santoli, the author of this article, explains some of the “big” problems that are affecting the stock market and the nation’s economy.  He cites the following major factors that account for the current downward spiral of the U.S. financial markets.

  • Economic slowdown in China
  • More realistic expectations for future economic growth
  • Lower forecasts for corporate earnings growth
  • Uncertainty about the Federal Reserve’s decisions that could impact interest rates
  • The political climate leading up to the 2016 presidential election

One final point:  The month of September is typically the worst month of the year for stocks.  September 2015 should be an interesting month to say the least–get ready and hang on for what promises to be a rough ride.

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 economic growth and the financial markets can go up or go down depending on factors like those described in this article. If you sell, what would you do with your money?
  • Stress that a long-term investment program that can even out the ups and downs in the market.

Discussion Questions

Although the stock market has been on the upswing for the last few years, the summer of 2015 has been a rough “ride” for most investors.

  1. If you are an investor and expect that it is time for a correction or downturn in the market, what would you sell some or all of your investments? If you sell, what would you do with the money?
  2. Some financial experts argue that a correction can be a buying opportunity to purchase quality stocks at lower prices. Do you agree?  Explain your answer.
Categories: Chapter_12, Investments, Stocks | Tags: , | Leave a comment

Modernize Your Resume

Posted on August 29, 2015 by Melissa Hart

Resumes continue to evolve. To have a modern-looking resume, consider these suggestions:

  • Use keywords from the job description that will allow the applicant tracking systems (ATS) to select your resume.
  • Adapt your resume to each position for which you apply. Use organization-specific keywords to help you get an interview.
  • Eliminate your photos and references from your resume.
  • Include social media links for the recruiter to obtain additional information on your background and activities.
  • Make use of callout boxes, in addition to bullet points and line breaks, to highlight key experiences, qualifications, and accomplishments.

For additional information on updating your resume, click here.

Teaching Suggestions

  • Have students talk to others to obtain suggestions for updating a resume.
  • Have students create a resume based on these suggestions.

Discussion Questions 

  1. What are common mistakes people make on resumes?
  2. How might a person improve the effectiveness of their resume?
Categories: Career, _Appendix B | Tags: | Leave a comment

Many Americans Have No Savings

Posted on August 26, 2015 by Melissa Hart

About three in ten Americans have no emergency savings, according to a study conducted by Bankrate.com. This number has increased in recent years, mainly due to the lack of growth in household income. Without an emergency fund, people tend to encounter even greater financial difficulties. A person will often use high-interest debt to cover unexpected expenses. In addition to the 29 percent with no savings, another 21 percent have less than three months worth of expenses saved.

For additional information on emergency savings, click here.

Teaching Suggestions

  • Have students ask several people who their might cope with a financial emergency.
  • Have students create a plan for creating a emergency savings fund.

Discussion Questions 

  1. What are methods that might be used to cope with a financial emergency?
  2. How might a person be encouraged to create an emergency fund?
Categories: Budget, Chapter 1, Chapter 2, Financial Planning, Retirement Planning, Savings | Tags: , | Leave a comment

Vital Financial Concepts To Teach Children

Posted on August 22, 2015 by Melissa Hart

Learning at home is the starting point for teaching children about money. These eleven key personal concepts should be explained and experienced by children as they are growing up:

  1. Saving
  2. Budget
  3. Loan
  4. Debt
  5. Interest
  6. Credit card
  7. Taxes
  8. Investment
  9. Stock
  10. 401(k)
  11. Credit score

The age at which these concepts are taught will vary.

For additional information on teaching vital personal finance concepts to children, click here.

Teaching Suggestions

  • Have students describe how they learned about these concepts.
  • Have students conduct a survey among young consumers to determine their knowledge of these topics.

Discussion Questions 

  1. What additional personal finance concepts might be added to this list?
  2. What actions might parents take to teach these concepts to their children?

 

Categories: Chapter 1, Chapter 2, Financial Planning | Tags: , | Leave a comment

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