How This Couple Retired in Their 30s to Travel the World

Posted on May 6, 2015 by Melissa Hart

This is a very interesting interview that describes how one young couple decided to take charge of their finances, pay off their debts, and accumulate a nest egg to fund an early retirement.    

When Jeremy graduated from college, he started working for Motorola and earned $40,000 a year.  But his desire to keep up with his friends, family, and co-workers led him to buy a new car and a three-bedroom home.  He was quickly in debt, but fortunately he realized he wanted to live debt free.

Using an interview format, this article describes the steps Jeremy (38) and Winnie (33) took to save enough money to retire while they were in their 30s.  It also describes their current lifestyle and how they spend their money and time since they retired.

For more information, click here.

Teaching Suggestions

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

  • Explore why people often feel the need to keep up with friends, family, and co-workers.
  • Discuss the specific steps that Jeremy and Winnie took to take control of their finances.

Discussion Questions

  1. What steps did Jeremy and Winnie take to get out of debt? Would you be willing to take these steps in order to live debt free?
  2. Once Jeremy and Winnie were debt free, what techniques did they use to save and invest their money?
  3. Jeremy and Winnie retired in their 30s. Does the idea of retiring in your 30s or 40s, or 50s appeal to you?  Explain your answer.
Categories: Chapter 1, Chapter_11, Investments, Opportunity Costs, Retirement Planning, Time Value of Money | Tags: , , | Leave a comment

Emergency Department for Routine Care?

Posted on May 2, 2015 by Melissa Hart

A new study, published in March 2015 in the Annals of Emergency Medicine, shows that the annual rate of emergency department visits by young adults age 19-25 decreased by 1.4 percent in 2011.  This represents 191,000 fewer emergency department visits by young people in this age group.

For this study, currently the most extensive analysis of its kind, researchers examined more than 17 million emergency department visits between 2007 and 2011 from the Nationwide Emergency Department Sample database of the Agency for Healthcare Research and Quality’s Hospital Cost and Utilization Project.

The Affordable Care Act requires health plans that offer coverage to allow young adults to stay on their parents’ plan until age 26.  This has allowed young adults to seek care in the most appropriate setting, reserving costly emergency department use for real emergencies.

For additional information, click here.

Teaching Suggestions

  • Ask students what else can be done to reduce the high cost of healthcare.
  • What can students do to reduce their own personal healthcare costs?

Discussion Questions

  1. What are several reasons for the rising healthcare expenditures?
  2. Has the Affordable Care Act reduced the costs of healthcare?
Categories: Chapter 9, Health Insurance | Tags: , | Leave a comment

Disputing an Error in Your Credit Report

Posted on April 29, 2015 by Melissa Hart

If you find an error in a report from a credit reporting agency, you may submit a dispute not only to the credit reporting agency, but also directly to the company that is the source of the information. If the company corrects your information as a result of your dispute, it must notify all of the credit reporting agencies to which it provided the inaccurate information, so they can update their reports with the correct information.

If you submit a dispute by mail, your dispute letter should include your complete name, address, telephone number, your confirmation number (if available), and the account number.  Clearly identify each mistake, state the facts, explain why you are disputing the information, and request that it be removed or corrected.

You may want to enclose a copy of the portion of your credit report that contains the disputed items and circle or highlight the disputed items.  You should include copies (not originals) of documents that support your position.  Send your letter by certified mail and ask for a return receipt, so that you will have a record that you letter was received.

For more information, click here.

Teaching Suggestions

  • Ask students to request their own credit report and check for any errors.
  • Ask students to draft a letter of complaint if they find any errors in their credit report.

Discussion Questions

  1. Where else can consumers submit a credit reporting complaint?
  2. If you suspect that error in your credit report as a result of an identity theft, what steps can you take to protect yourself?
Categories: Chapter 5, Credit Mistakes | Tags: | Leave a comment

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

What Happens If You Don’t Pay Your Student Loan Bill?

Posted on April 18, 2015 by Melissa Hart

“New data shows that 11.3 percent of student loans were delinquent at the end of 2014–double the rate just 10 years ago.”

Today many students graduate with substantial student loan debt and struggle to make payments–especially when they are just entering the workforce.   While tempting to default on students loans, there are serious long-term consequences.   For example

  1. Your credit score will tank once your payment is 45-90 days late.
  2. You could wind up in default after 270 days, and the lender can ask for the unpaid balance in full and your account could be given to a collection agency.
  3. If you default on federal loan payments, Uncle Sam can take your tax return.
  4. The federal government can take up to 15 percent of your wages if you default on student loans.
  5. If someone consigned your loan, they also suffer the consequences for late payments or a default.

For someone who has fallen behind on student loan payments, the article also provides suggestions that can help get back on track.

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 importance of making student loan payments on time.
  • Discuss the consequences of missing payments or defaulting on a student loan.

Discussion Questions

  1. Why is it important to make student loan payments on time?
  2. What are the consequences of defaulting on a student loan?
  3. Assume you are behind on your student loan payments. What steps can you take to find the money needed to make student loan payments and eventually pay off a student loan?
Categories: Uncategorized | 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

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