Cardless ATMs

Posted on December 10, 2014 by Melissa Hart

Bank customers may now access ATMs without a debit card. Using a smartphone app, both a cash code (an 8-digit number) and the PIN (4 digits) will be required for cash.   App customers may authorize another person from phone contacts to obtain money. The recipient will be sent a cash code to allow withdrawal of an approved amount.

Banks also offer a credit card “lock and limit” app to control security and spending.  This feature is used to block overseas transactions where the card isn’t present.  In addition, a small business app that can accept on-the-spot payments, create estimates and invoices immediately and help to manage cash flow.

For additional information on cardless ATMs go to:

http://www.theaustralian.com.au/technology/commbank-launches-cardless-atms/story-e6frgakx-1226900643013?nk=bef92ef2e3c07bd1787f1279b087e2b6

Teaching Suggestions

  • Have students research various mobile banking technology that might be used in the future.
  • Ask students to describe their experiences with various mobile banking apps.

 Discussion Questions 

  1. What are benefits of cardless ATMs for consumers and business?
  2. Describe potential problems with cardless ATMs.
  3. What other types of mobile banking apps might be developed in the future?
Categories: Chapter 4, Debit Cards | Tags: , | Leave a comment

Banking at the Post Office

Posted on December 6, 2014 by Melissa Hart

Nearly 90 million people in the United States have no bank account or rely on expensive financial services from check-cashing services, payday loan companies, or pawnshops.  To help address this situation, the U.S. Postal Service is considering a program to provide financial services to the population that is underserved by traditional banks.

The USPS, which already offers money orders to customers, plans an expanded product line that would include reloadable prepaid debit cards, mobile transactions, domestic and international money transfers, a Bitcoin exchange, and possibly, small loans. As a result of their size, USPS loan rates would be lower than pawnshops or payday loan enterprises. Post office branches in low-income neighborhoods could provide services to customers in areas no longer served by traditional banks.

Opposition to this action will occur from the banking industry. However, compelling evidence is offered that many Americans lack trust in or access to banks.

While going to the post office for financial services may seem strange in the United States, about one billion people in 50 countries bank through postal system offices.  These include India, Pakistan, Japan, Brazil, Malawi, and Kenya.

For additional information on banking at the post office, go to:

http://www.nytimes.com/2014/02/08/opinion/the-post-office-banks-on-the-poor.html?_r=0

http://www.economist.com/news/finance-and-economics/21601026-americas-postal-service-ponders-foray-financial-services-put-your-money

Click to access rarc-wp-14-007.pdf

Teaching Suggestions

  • Have students research the banking services offered by postal services in other countries.
  • Have students create interview questions that they might ask someone who does not use a traditional bank.

 Discussion Questions 

  1. What factors would influence the need for the postal service to consider offering financial services?
  2. Describe possible benefits and concerns associated with the U.S. Postal Service offering financial services.
  3. Other than the postal service, how might underserved and unserved banking consumers obtain financial services?
Categories: Chapter 4 | Tags: , | Leave a comment

Dangers of not teaching children about money management

Posted on December 3, 2014 by Melissa Hart

Financial difficulties in a household can create anxiety for children. To minimize these apprehensions, parents should begin communicating about money at an early age to help children grow up to be financially literate adults.  Rather than allowing the youngsters to arrive at their own conclusions, a proactive approach can help the children avoid the mistakes of their parents. Without an open discussion, children will likely grow up lacking financial knowledge.

Suggested actions for developing good money habits among children are:

  • teach them to budget since this is the foundation of successful personal finance.
  • develop wise spending decisions for wise choices and avoiding impulse buying.
  • create an understanding of the rewards of work with a system of work-for-pay chores, which go beyond basic required chores, such as a clean room.
  • develop an appreciation for delayed gratification with saving for a goal.

For additional information on wise money management for children, go to:

http://www.bankrate.com/finance/smart-spending/the-danger-of-not-teaching-kids-about-cash.aspx?ec_id=cmct_02_comm_PF_mainlink

http://www.bankrate.com/finance/financial-literacy/4-money-lessons-for-children-to-master-1.aspx

 

Teaching Suggestions

  • Have students research various actions that might be taken to better involve children in family money management decisions.
  • Have students create interview questions that they might ask when trying to determine if parents are teaching their children wise money management habits.

 Discussion Questions 

  1. Describe various problems associated with not involving all household members in family money management activities.
  2. What actions would you take to teach young people about wise money management?
Categories: Chapter 1, Chapter 2, Financial Planning | Tags: , | Leave a comment

Telling Your Career Story

Posted on November 29, 2014 by Melissa Hart

Communicating your career experiences with the use of stories is an effective way to promote your professional life. Jobseekers need to tell their stories in varied ways, using many tools.

Start the career story development by identifying a clear idea, mainly why someone should want to hire you. Focus on your skills. What do you have to offer that is better or different than others?  One approach is to review the position for which you are applying.  Create your story to relate your skills and experiences to the job description.

Your online presence should include a profile of your passion and expertise.  Most important is evidence that you are able to address the needs of the available employment position.

Emphasize a “CAR” or “PAR” approach to storytelling. CAR is “challenge, action, results.” PAR is “problem, action results.”  Tell stories to explain challenges or problems and how you handled them.

For additional information on telling your career story, go to:

http://www.keppiecareers.com/tell-career-story-people-will-listen/

http://www.keppiecareers.com/tell-career-story-people-will-listen/#sthash.mIT8l9zv.dpuf

http://www.jobactionday.com/2014-Job-Action-Day.html

 Teaching Suggestions

  • Have students research various approaches for communicating a person’s career skills and experiences.
  • Have students create a short video that communicates their career skills and experiences.

 Discussion Questions 

  1. What themes or story settings might be used to communicate your career skills?
  2. Explain how social media might be used to communicate your career story.
  3. What are some skills and experiences you would emphasize in your career story?
Categories: Career | Tags: | Leave a comment

Trick yourself into saving

Posted on November 26, 2014 by Melissa Hart

Saving money can be automatic with some simple actions that would reduce your monthly spending.  Some actions, which can include lowering your monthly cash outflows by as much as $400, include:

 

  • Using a programmable thermostat which can be used to automatically raise and lower the temperature in your home, resulting in energy savings.
  • Increasing insurance deductibles for your home and auto insurance which will likely result in an annual savings of several hundred dollars.
  • Practicing less aggressive driving; using a constant speed can save money on fuel costs.
  • Seeking out ways to reduce your communication bills, such as using basic cable along with streaming video on your computer. Also, using a free texting app on your phone.
  • Using a refillable water bottle can save hundreds of dollars by not buying bottled water.

 

To ensure that you actually save this money, each month, have funds automatically moved into a savings account or investment program.
For additional information on saving, go to:

http://www.bankrate.com/finance/video/saving-money/trick-yourself-into-saving.aspx#ixzz3IKDG71pN

 Teaching Suggestions

  • Have students conduct online research to determine various actions to reduce spending and increase savings.
  • Have students interview several people to determine various actions that might be considered for reducing spending.

Discussion Questions 

  1. What actions have you taken to reduce spending and increase savings?
  2. Explain short-term and long-term benefits of reduced spending.
Categories: Car Insurance, Chapter 2, Chapter 6, Financial Planning, Health Insurance, insurance, Purchasing Strategies, Savings, Wise Shopping | Tags: , | Leave a comment

Rents Are Rising . . . And So Are Evictions

Posted on November 22, 2014 by Melissa Hart

“The average renter now spends 30% of their income on rent, up from a longtime average of about 25%, according to Zillow.”

Over the past year, average salaries have increased 1.8 percent.  At the same time, the average rental cost for apartments, houses, condos, and other housing has risen 7 percent.

The Neighborhood Law Clinic at the University of Wisconsin Law School estimates that several million families a year face evictions nationwide.  In fact, for many tenants, an unexpected emergency or unexpected expense can lead to eviction.  Most often, evicted tenants face a very difficult time finding a new home that is often in a different neighborhood or a home that is not as nice as their last home.

While the major reason for a tenant’s eviction is not paying the rent, some landlords will look for minor violations like loud noise or having a pet when there is a no pet policy to evict tenants.  Then, landlords will rent to a new tenant that is willing (and able) to pay higher rent.  In some cases, the owner of the rental property will sell the property or convert the property to condos.

For more information go to http://money.cnn.com/2014/10/29/real_estate/evicted/index.html

Teaching Suggestions

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

  • Discuss the importance of choosing a housing option that you can afford.
  • Stress the importance of budgeting for housing and other major expenses and establishing an emergency fund.

Discussion Questions

  1. While most everyone wants a nice, safe place to call home.  What factors affect your choice when choosing an apartment, condo, or house to rent or buy?
  2. Does the fact that the average tenant spends 25 to 30 percent of their income on rent and that there are no tax advantages or equity buildup when you rent, encourage you to purchase your own home? Justify your decision to rent or buy.
Categories: Chapter 7, Home Buying | Tags: | Leave a comment

10 Things Rich People Know that You Don’t

Posted on November 19, 2014 by Melissa Hart

“People don’t become wealthy by accident, here’s how they do it’

This article describes 10 habits that anyone can develop that will improve their financial management skills—regardless if they want to be the world’s next millionaire or if they just want to live comfortably.  For more information about each of the 10 items below, please see the original article.

  1. Start saving and investing early in life
  2. Automate savings and investments so deposits are made automatically on a regular basis
  3. Maximize contributions to retirement and investment accounts
  4. Never carry a credit card balance
  5. Live like you’re poor and adopt a “less is more” attitude
  6. Avoid the temptation to live beyond your means
  7. Be goal oriented and know what you consider to be important
  8. Get educated and learn about investments before investing your money
  9. Diversify your portfolio and avoid the temptation to put all your eggs in one basket
  10. Spend money to make money by hiring a qualified and experienced financial adviser, accountant, and, if needed, an estate planner

For more information go to http://www.marketwatch.com/story/10-habits-of-high-net-worth-women-2014-07-02?page=1

Teaching Suggestions

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

  • Stress the importance of making smart decisions as opposed to foolish decisions.
  • Tie the suggestions in this article to material in the text.

Discussion Questions

  1. Which of the ten habits described in this article can you use now to help manage your personal finances?
  2. The first suggestion, “start saving and investing early” is a basic principle we stress in the text. What are the advantages of starting early?
Categories: Chapter 1, Chapter_11, Financial Planning | Tags: | Leave a comment

3 Simple Steps to Check Up on Your Mutual Funds

Posted on November 15, 2014 by Melissa Hart

By using three simple steps, you can evaluate when to buy, and when to sell mutual fund shares.

This short article describes three simple steps that investors can use to monitor the value of their fund investments.

Step 1:  Go to www.morningstar.com or look up funds via the Kiplinger fund finder tool at www.kiplinger.com, and check out 1-year, 5-year, and 10-year returns.

Step 2:  Compare your fund’s performance with the average returns for similar funds or with an appropriate benchmark like the Russell 2000 index for small company stock funds.

Step 3:  If your fund’s performance doesn’t match up with similar funds or with a specific fund benchmark, dig deeper to see if the fund managers have changed their strategy or if there are reasons why the fund is a poor performer.

While the above steps can identify funds that you may want to sell, the same three steps can also help you identify funds that you want to hold or even buy more shares in a top performing fund.

For more information go to http://www.kiplinger.com/article/investing/T041-C009-S002-3-simple-steps-to-check-up-on-mutual-funds.html

Teaching Suggestions

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

  • Explain how easy it is to use the Internet to obtain information from Morningstar, Kiplinger, and other sources that can help investors evaluate a fund’s performance.
  • Discuss ways investors can monitor the value of fund investments.

Discussion Questions

  1. How can a fund’s performance help you determine if you want to sell shares or buy more shares in a fund?
  2. Why should investors examine a fund’s performance over different time periods?
  3. In addition to performance, what other factors should be considered when evaluating a fund investment?
Categories: Chapter_13, Investments, Mutual Funds | Tags: | Leave a comment

Medicaid and Children’s Health Insurance Program (CHIP)

Posted on November 12, 2014 by Melissa Hart

Did you know that Medicaid and Children’s Health Insurance Program (CHIP) offer free or low cost health coverage for eligible children and other family members? Medicaid and CHIP cover:

  • Children and teens up to age 19
  • Young people up to 21 may be covered under Medicaid
  • Youth who have “aged out” of foster care can be covered under Medicaid until they reach age 26

Children may be eligible based on their family income.  Eligibility depends on your income, the number of people in your family and the rules in your state. In almost every state, children in families with income up to 200 percent of the federal poverty level ($47,700 per year for a family of four) are covered. In more than half the states, the income eligibility for children can be even higher.

Eligible children and teens can get regular check-ups, shots, doctor and dentist visits, vision care, hospital care, mental health services, needed medications and more.  All preventive services for children are available at no cost.

For more information, go to

http://www.insurekidsnow.gov/chip/index.html

Teaching suggestions

  • Ask students how can they find a health care provider (doctor, dentist or pharmacist) in their area who accepts Medicaid or CHIP?
  • Is there a special enrollment period for Medicaid or CHIP?
  • How can you apply for Medicaid and CHIP?

Discussion Questions

  1. Can working parents who may not have health coverage through their jobs cover their children under the CHIP program?
  2. Who can apply for Medicaid or CHIP for a child?

 

Categories: Chapter 9, Health Insurance, insurance | Tags: | Leave a comment

Discount Plans for Health Insurance?

Posted on November 8, 2014 by Melissa Hart

Looking for health insurance? Make sure that’s what you’re buying, or you could find yourself on the hook for big medical bills with no way to pay them.

That’s because what sounds like affordable health insurance may be a medical discount plan instead.  Medical discount plans can help some people to save money on their health care costs, but discount plans aren’t health insurance.

Although some medical discount plans provide legitimate discounts, others take your money and offer very little in return.  The Federal Trade Commission (FTC) and its state law enforcement partners also have found that dishonest marketers selling these plans have tried to make people think they’re selling health insurance, or have lied about what their plans really offer.

If you buy a health insurance plan, it generally covers a broad range of services, and pays you or your health care provider for a portion of your medical bills. If you buy a medical discount plan, you generally are paying for a list of providers and sellers who may be willing to offer “discounts” on some of their services, products or procedures. Medical discount plans don’t pay your health care costs.

“Discounts of up to 70%”–but how often will you save that much? Savings with discount plans typically are a lot less. When you consider a discount plan’s monthly premiums and enrollment fees, there may be no “discount” at all.  What’s more, if you have major health problems or an emergency, you will have to cover most, or all, of the bills if you don’t have health insurance.

For additional information go

http://www.consumer.ftc.gov/articles/0165-discount-plan-or-health-insurance

Teaching Suggestions

  • Ask student how they should react if they are pressured to sign up quickly or miss out on a “special deal”.
  • Why is it important to check with your state insurance department, your state Attorney General, and your Better Business Bureau before signing up for such discount plans?

Discussion Questions

  1. Why medical discount plans are not health insurance plans?
  2. Do medical discount plans pay for your health care costs?
  3. Are medical discount plans a good substitute for comprehensive health insurance plans?
Categories: Chapter 9, Health Insurance | Tags: , | Leave a comment

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