Protect Your Personal Information and Money

Posted on May 15, 2014 by Melissa Hart

Recent reports about thieves gaining access to sensitive personal information that can be used to commit fraud or steal money, sometimes involving major security breaches at large retailers such as Target stores.  While federal laws and industry practices generally limit losses for unauthorized transactions involving bank accounts, debit and credit cards, it pays to be proactive.

Be careful when you use social networking sites.  Scammers use social networking sites to gather details about individuals, such as their place or date of birth, a pet’s name, their mother’s maiden name, and other information that can help them figure out passwords–or how to reset them.  Even small amount of information can help them steal your identity, such as by answering security questions that control access to accounts.  According to Michael Benardo, Chief of the FDIC’s Cyber Fraud and Financial Crimes Section, “Don’t share your ‘page’ or access with anyone you don’t know and trust.  Criminals may pretend to be your ‘friend’  or relative to convince you to send money or divulge personal information.”

For additional information and tips on avoiding fraud at social media sites, go to the Internet Crime Complaint Center at

http://www.ic3.gov/media/2009/091001.aspx and http://www.fdic.gov/consumers/consumer/news/cnfall13/socialmedia.html

Discussion Questions

1.  What can you do to guard against scams involving fraudulent requests to wire money or send a prepaid card?

2.  Why should you be suspicious about unsolicited emails or text messages asking you to click on a link or open an attachment?

Teaching Suggestions

You may want to use the information in this blog and the websites to

*  Discuss the importance of regularly reviewing your transactions in your credit card and bank statements.

*  Carefully choose user IDs and passwords for your computers, mobile devices, and online accounts.

*  Periodically review your credit reports to make sure someone else has not obtained a credit card or a loan in your name.

Categories: Chapter 5, Credit Scores, Identity Theft | Tags: , | Leave a comment

Billing Errors on Your Credit Card Statement

Posted on May 11, 2014 by Melissa Hart

The Federal Deposit Insurance Corporation’s Response Center reports that billing disputes and error resolution problems and processes are the most common types of complaints it received in 2012 and 2013 related to credit cards.  And, according to the Consumer Financial Protection Bureau, many consumers are confused and frustrated by the process of challenging inaccuracies on their monthly statements.

Checking your statements periodically also can help you monitor your spending.  You may want to sign up for alerts on your mobile phone or through your email that inform you when your credit card has hit a specific balance amount or you are close to your credit limit.  Other alerts can remind you about an upcoming bill.

If you notice a billing error, such as an unauthorized charge on your statement, contact the card issuer as soon as possible.

 For additional information and guidance, see consumer information from the Federal Trade Commission at http://www.consumer.ftc.gov/articles/0219-fair-credit-billing.

 

Discussion Questions

1.  What might be some reasons for consumers to be confused and frustrated by the process of challenging inaccuracies on their monthly statements?

2.  What are advantages of checking your monthly credit card statements?

Teaching Suggestions

You may want to use the information in this blog post and the FTC website to

  • Have students make a short presentation with a summary of actions that might be taken to report billing errors to the credit card issuer and other federal consumer protection agencies.
  • Draft a sample letter to dispute a billing error.
  • Review the Fair Credit Billing Act to learn about protecting  their rights if  a billing error occurs.
Categories: Chapter 5, Credit Mistakes | Tags: , , , , , , | Leave a comment

Even the IRS Chief Says Tax Code Is Too Complex

Posted on May 7, 2014 by Melissa Hart

The nation’s chief tax collector made a rare plea for overhauling the nation’s tax laws, saying the Internal Revenue Service is eager ‘to do whatever we can’ to help Congress simplify the tax code.”

John Koskinen, who rarely discusses the nation’s tax policy, told reporters the IRS needs to be involved in tax reform discussion to make sure the “simplication really is simple.” According to Koskinen, the two issues most in need of an overhaul are the taxation of American companies doing business abroad and the alternative minimum tax.

Koskinen also said it was a mistake to attempt to reform the multitudes of tax credits, deductions, and exemptions one by one. He likened that approach to fighting a “guerrilla war” with special interests. He indicated he would prefer to tackle tax reform all at once. He said “the advantage of doing it all at once is that the lobbyists can’t all get in the door at the same time.”

The last major tax reform of the nation’s tax code occurred in 1986.

For more information go to

http://www.usatoday.com/story/news/politics/2014/04/02/irs-commissioner-urges-congress-to-simplify-tax-code/7215107/

Teaching Suggestions

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

  • Point out how complex the IRS tax code is for both individuals and businesses.
  • Help students determine if they should file their own tax return or pay a professional.
  • Discuss the need for tax reform in order to create a simpler method of collecting the money needed to operate the government.

Discussion Questions

  1. Given your current situation, would you file your own tax return or would you use a professional?
  2. While everyone agrees the U.S. tax code is too complex and too confusing, major reform is unlikely. What are the obstacles to tax reform and why can’t Congress take steps to create a simpler tax code?
Categories: Chapter 3, Taxes | Tags: , , | Leave a comment

Choosing a Credit Card? Ensure that Your Credit Report is Accurate

Posted on May 4, 2014 by Melissa Hart

Correcting inaccuracies in your credit report may help you improve your credit history and credit score, which credit card issuers consider when deciding whether to offer you a card and how they will determine your interest rate and credit limit. You also can find out if an identity thief has opened credit cards or other accounts in your name.

By federal law, you are entitled to one free copy of your credit report every twelve months from each of the three major nationwide consumer reporting agencies (also called “credit bureaus”)—Equifax, Experian and TransUnion. Each company issues its own report, and because some lender do not provide information to all three of them, it’s useful to request your report from each one in order to get a comprehensive view of you credit history.

For additional information, go to

http://www.AnnualCreditReport.com; http://www.equifax.com; http://www.experian.com; http://www.transunion.com

Discussion Questions

1. Why is it important to check your credit reports every year?

2. Why should you request a credit report from each one of the three credit bureaus?

 

Teaching Suggestions

You may want to use the information in this blog and the above websites to discuss

* What should students do if they find inaccuracies in their credit reports?

* Have students draft a letter to the credit bureau to correct the errors in their credit report.

Categories: Chapter 5, Credit Mistakes, Credit Scores | Tags: , | Leave a comment

Payday Loans

Posted on April 30, 2014 by Melissa Hart

Loans with annual interest rates exceeding 400 percent continue to occur in our society.  Payday loans are often used to bridge a cash-flow shortage between paychecks. Also known as “cash advances” or “check loans,” they are usually expensive, small-dollar loans, of generally $500 or less. They offer quick and easy access to funds for consumers who may not qualify for other credit.

A recent Consumer Financial Protection Bureau (CFPB) study revealed that four out of five payday loans are rolled over or renewed within 14 days. The majority of payday-loan borrowers renew their loans so many times that they end up paying more in fees than the amount of money they originally borrowed.  This study also reported that:

  • only 15 percent of borrowers repay all of their payday debts when due without borrowing again within 14 days.
  • 20 percent default on a loan at some point, and
  • 64 percent renew at least one loan one or more times.

These actions often create exorbitant fees and charges, and keep the consumer in perpetual debt.

For additional information and a complete copy of the payday loan report go to http://files.consumerfinance.gov/f/201403_cfpb_report_payday-lending.pdf

Discussion Questions

  1. Why does the market for payday loans exist?
  2. What actions might be taken to avoid using payday loans?
  3. Recommend actions for people who are caught in the trap of payday loans.

 

Teaching Suggestions

  • Have students visit a payday loan office or an online payday loan provider to gain additional insight into this high-cost financial service.
  • Have students make a short presentation with a summary of actions that might be taken to avoid payday loans.
Categories: Chapter 4, Financial Services | Tags: , , , | Leave a comment

The “Blended” Classroom.

Posted on April 26, 2014 by Melissa Hart

Today, many students expect a more interactive learning experience involving technology. While not all students are best served by online classes, the use of blended (or hybrid) teaching can take advantage of both the face-to-face learning setting and technology-enhanced instruction.

In a blended class, part of the content delivery and instruction is through online delivery with students having some choice over time, place, path and pace. When planning and implementing a blended teaching approach, some suggested preliminary guidelines include:

  • Have a large vision but start small. Use selected elements of technology such as an online discussion board, student blog entries, or existing web-based videos.
  • Adapt your technology use based on your growing experiences. Ask students for their suggestions to enhance the interactive learning environment.
  • Use technology to enhance your existing learning goals. Make efficient use of online materials and other resources to improve what you already do.
  • Connect virtual instructional resources and experiences to the face-to-face learning environment. Keep students accountable for their online activities with application exercises and in-class assessment.
  • Move students from being consumers of information to producers of information with assignments that require comprehensive research reports, case study analyses, visual summaries (such as infographics), and student-created video productions.
  • Take advantage of resources not available to previous generations, such as online lectures of experts in the field and virtual tours.

For additional information on a blended teaching and flipped classrooms go to:

Discussion Questions

  1. What are potential benefits of using a blended teaching approach?
  2. What concerns might be associated with a blended teaching approach?
  3. What actions might you consider taking to move toward blended teaching.

Teaching Suggestions

  • Talk with students about their experiences with blended classrooms and the use of technology to enhance the learning process.
  • Conduct online research to obtain additional information on the experiences of people who make use of a blended learning environment.
Categories: Teaching Tools | Tags: , , | Leave a comment

The Slacker’s Guide to Saving for Retirement

Posted on April 23, 2014 by Melissa Hart

Whether retirement is coming soon or feels far away, it’s something you need to think about.

This article encourages students to make retirement planning a part of their budget and one of their financial goals.   It also points out the benefits of starting early—even if students can contribute only a small amount because of other obligations that include paying off student loans and other debt obligations, paying rent, buying groceries, and establishing an emergency fund.

A very good suggestion included in this article is to start by saving just $25 from each paycheck, and then increase the amount until someone feels they have reached a limit they are comfortable with.

Other suggestions include participating in a 401(k) account at work and using bonuses and salary increases to boost the amount contributed to your retirement account.

For more information, go to

http://finance.yahoo.com/news/slackers-guide-saving-retirement-113005671.html

Teaching Suggestions

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

  • Encourage students to develop a long-term financial plan that includes retirement goals.
  • Discuss time value of money examples that show how small dollar amounts invested on a regular basis can help achieve long-term financial goals.
  • Launch a discussion about the different types of retirement accounts.

Discussion Questions

1.  Many people never begin saving or investing because there is never anything left over at the end of the month.  How can you find the money needed to begin saving and investing?

2.  Why should you begin to save for retirement now instead of waiting until later in life?

Categories: Chapter 1, Chapter 3, Chapter 4, Chapter_11, Chapter_14, Financial Planning, Investments, Retirement Planning, Savings, Taxes | Tags: , , , , , , , | Leave a comment

Stock Investing at Lower Risk: A Guide for Beginners

Posted on April 20, 2014 by Melissa Hart

Here’s a simple breakdown of key points for investing in stocks

For the beginner, stock investing can seem like an uncharted mine field because of terms, regulations, and fear. This article provides five important pieces of information that can help students understand stocks and become better investors. Here goes:

  1. Owning stock is owning a company. As an owner, you have rights and responsibilities.
  2. Stocks grow two ways because they can increase in value and they pay dividends.
  3. Stocks rise and fall in value. Keep in mind what goes up can come down.
  4. You will pay taxes unless your stocks are held inside some type of tax deferred retirement account.
  5. Stocks can be volatile. Volatility is different than the typical rise and fall in price described above because volatility occurs when an investment has major price swings in a short period of time.

For more information go to

http://www.forbes.com/sites/mitchelltuchman/2013/08/09/stock-investing-at-lower-risk-a-guide-for-beginners/

Teaching Suggestions

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

  • Provide basic information to students who are studying stock for the first time.
  • Help students understand the process of stock investing.
  • Compare stocks with savings accounts, certificates of deposit, bonds, mutual funds, and other investment alternatives.

Discussion Questions

  1. How can you profit from a stock investment?
  2. What are the risks associated with stock investments?
  3. How can you avoid paying taxes on stock and other investment alternatives?
Categories: Chapter_12, Chapter_14, Investments, Retirement Planning | Tags: , , | Leave a comment

Do You Need the Retirement Estimator?

Posted on April 16, 2014 by Melissa Hart

Are you saving enough for your retirement?  The Retirement Estimator gives you an estimate based on your Social Security earnings.  However, be aware that it is only an estimate since your earnings may increase or decrease in the future.  Moreover, your benefit amount may be affected by military service, railroad employment or pensions earned through work on which you did not pay Social Security tax.  Remember, your estimated benefits are based on current law and the law may change because by 2033, the payroll taxes collected will be enough to pay only 77 cents for each dollar of scheduled benefits.

For additional information about who can use Retirement Estimator and how you can estimate your retirement benefits go to http://www.socialsecuirity.gov/estimator/.

Discussion Questions

  1. How do you decide which calculator to choose?
  2. What are some other possible sources of income for retirees?
  3. How can the Internet assist you in your retirement?

Teaching Suggestions

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

  • What are the two primary reasons for increasing the normal retirement age?
  • What are some factors that may, or may not, affect your retirement benefits?
Categories: Chapter 1, Chapter 3, Chapter_14, Retirement Planning, Taxes | Tags: , , , | Leave a comment

Should You Worry About Estate Tax?

Posted on April 12, 2014 by Melissa Hart

The estate tax is a tax on your right to transfer property at your death.  Most relatively simple estates do not require the filing of an estate tax return.  However, if your estate is $5,340,000 in 2014, your estate’s representative must file the return.

Who should you hire to represent you, prepare and fill your return?  The answer depends on how large and complex is your estate, how many beneficiaries you have and are they cooperative?

Discuss this matter with several estate tax professionals.  Ask about their experience and referrals.  Most estates hire the services of both attorneys and CPAs.

For additional information on estate planning and estate tax matters go to http://www.irs.gov/Businesses/Small-Businesses-Businesses-&-Self-Employed/Frequently-Asked-Questions.

Discussion Questions

  1. What is included in your estate?  What is excluded?
  2. What deductions are available to reduce the estate tax?
  3. What might be advantages of hiring the services of estate attorneys and CPAs?

Teaching Suggestions

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

  • How can charitable gifts and bequests reduce estate and inheritance taxes.
  • Different types of taxes imposed on a deceased’s estate.
  • Arguments in support and against the estate tax.
Categories: Chapter 3, Chapter_14, Estate Planning, Taxes | Tags: , , | Leave a comment

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