Take Charge of Your Finances

Americans have a greater need to educate themselves about how to effectively manage their finances because many employers are eliminating retirement plans and offering 401K’s, 457 or 403b as an alternative. Social Security may not be available for those who are in their 50s or younger. Those who are unemployed, underemployed or retired also need adequate skills to properly manage their finances. In addition, financial products and services are more complex and perplexing. April is Financial Literacy Month that stresses the importance of financial literacy.

Without adequate knowledge about basic financial literacy concepts, consumers can make devastating financial mistakes that can take years to recover. Regularly practicing good money management habits eliminate the needs for dependency on credit cards, payday loans or title loans and cash advances.

The financial stability of families is directly linked to economic growth in America. The economy is stronger when more Americans have jobs, increases in income and an accumulation of wealth.

Financially strong families tend to have better money management skills and are more willing to make major purchases that help advance our economy. Financially successful people save more and are more able to get approval for credit cards and loans.

The average American believes all they need to do is go to work everyday and pay their bills on time. However, being a responsible consumer requires much more. Consumers need to be able to make informed decisions about how to earn, spend and grow their money.

This is where the importance of financial literacy plays a key role. The lack of financial literacy education and effective money management skills result in mounds of debt, low credit scores, denial for approval of credit and loans, increased foreclosures and bankruptcies. These factors ultimately slow economic growth.

Financial literacy increases the awareness of the benefits and risks of consumer credit and the consequences of poor money management skills. Financial literacy benefits include: accumulating wealth, planning for retirement, planning for children’s college education, starting a business, ability to make large purchases, maintain good credit and achieve financial goals. Financially literate consumers help the banking industry by purchasing products and services which results in stable banks, better customer service, lower fees, and increases in money available for lending.

The primary benefit of financial literacy is providing an improved standard of living for students, individuals and families.  Financial literacy helps individuals and families accumulate wealth and live a financially stable life. Families are also able to pass knowledge on to their children and future generations.

This month make at least one change to your spending habits to help pay down debt, create a savings account or start planning for your retirement. Make a promise to yourself and your family that starting in April you will do at least one of the following to improve your financial life. Here is a suggested list:

1. Create a budget or spending plan and track spending daily, weekly or monthly.
2. Pay bills on time or before the due date.
3. Verify financial statements each month.
4. Create an emergency fund to cover bills and monthly expenses for 9-12 months.
5. Get current on any late bills by negotiating with creditors or setup payment plans.
6. Reduce monthly spending by 30-50%.
7. Buy more of items you need instead of items you want.
8. Use credit cards for emergencies only.
9. Do not buy something if you do not have the cash to pay for it.
10. Order a copy of your credit report and dispute any errors.
11. Avoid using risky options such as payday loans, cash advance or title loans.
12. Get overdraft protection to reduce bounced check fees and find banks with little to no monthly fees.
13. Plan for your future by performing estate planning.

Celebrate Financial Literacy Month in April

Many employees have a greater need to educate themselves about how to effectively manage their finances because many employers are eliminating retirement plans and offering 401K’s, 457 or 403b as an alternative.   Those who are unemployed or retired also need adequate skills to properly manage their finances and stretch their dollar.  In addition, financial products and services are more complex and perplexing.  April is Financial Literacy Month which stresses the importance of financial literacy.

Without adequate knowledge about basic financial literacy concepts, consumers can make devastating mistakes that can take years to recover from.  Regularly practicing good money management habits eliminate the needs for dependency on credit cards, payday loans or title loans and cash advances.

The financial stability of families is directly linked to economic growth in America. The economy is stronger when more Americans have jobs, increases in income and an accumulation of wealth.

Financially strong families tend to have better money management skills and are more willing to make major purchases that help advance our economy.  Financially successful people save more and are more able to get approval for credit cards and loans.

The average American believes all they need to do is go to work everyday and pay their bills on time.  However, being a responsible consumer requires much more.  Consumers need to be able to make informed decisions about how to earn, spend and grow their money.

This is where the importance of financial literacy plays a key role.  The lack of financial literacy education and effective money management skills result in mounds of debt, low credit scores, denial for approval of credit and loans, increased foreclosures and bankruptcies.  These factors ultimately slow economic growth.

Financial literacy increases the awareness of the benefits and risks of consumer credit and the consequences of poor money management skills.  Financial literacy benefits include:  accumulating wealth, planning for retirement, planning for children’s college education, starting a business, ability to make large purchases, maintain good credit and achieve financial goals. Financially literate consumers help the banking industry by purchasing products and services which results in stable banks, better customer service, lower fees, and increases in money available for lending.

The primary benefit of financial literacy is providing an improved standard of living for students, individuals and families.   Financial literacy helps individuals and families accumulate wealth and live a financially stable life.  Families are also able to pass knowledge on to their children and future generations.

This month make at least one change to your spending habits to help pay down debt, create a savings account or start planning for your retirement.  Make a promise to yourself and your family that starting in April you will do at least one of the following to improve your financial life. 

1. Create a budget or spending plan and track spending daily, weekly or monthly.
2. Verify financial statements each month.
3. Pay bills on time or before the due date.
4. Get current on any late bills by negotiating with creditors or setup payment plans.
5. Don't buy something if you don't have the cash to pay for it.
6. Avoid using risky options such as payday loans, cash advance or title loans.
7. Use credit cards for emergencies only.
8. Get overdraft protection to reduce bounced check fees and find banks with little to no monthly fees.
9. Order a copy of your credit report and dispute any errors.
10. Pay off at least one credit card this year.
11. Create an emergency fund to cover bills and monthly expenses for 9-12 months.
12. Reduce monthly spending by 30-50%.
13. Buy more of items you need instead of items you want.
14. Plan for your future by performing estate planning.
15. Avoid filing for bankruptcy.

15 Ways to Celebrate Financial Literacy Month

                                                             

Today employees have a greater need to educate themselves about how to effectively manage their finances because many employers are eliminating retirement plans and offering 401K’s, 457 or 403b as an alternative.   Those who are unemployed or retired also need adequate skills to properly manage their finances and stretch their dollar.  In addition, financial products and services are more complex and perplexing.  April is Financial Literacy Month which stresses the importance of financial literacy.

Without adequate knowledge about basic financial literacy concepts, consumers can make devastating mistakes that can take years to recover from.  Regularly practicing good money management habits eliminate the needs for dependency on credit cards, payday loans or title loans and cash advances.

The financial stability of families is directly linked to economic growth in America. The economy is stronger when more Americans have jobs, increases in income and an accumulation of wealth.

Financially strong families tend to have better money management skills and are more willing to make major purchases that help advance our economy.  Financially successful people save more and are more able to get approval for credit cards and loans.

The average American believes all they need to do is go to work everyday and pay their bills on time.  However, being a responsible consumer requires much more.  Consumers need to be able to make informed decisions about how to earn, spend and grow their money.

This is where the importance of financial literacy plays a key role.  The lack of financial literacy education and effective money management skills result in mounds of debt, low credit scores, denial for approval of credit and loans, increased foreclosures and bankruptcies.  These factors ultimately slow economic growth.

Financial literacy increases the awareness of the benefits and risks of consumer credit and the consequences of poor money management skills.  Financial literacy benefits include:  accumulating wealth, planning for retirement, planning for children’s college education, starting a business, ability to make large purchases, maintain good credit and achieve financial goals. Financially literate consumers help the banking industry by purchasing products and services which results in stable banks, better customer service, lower fees, and increases in money available for lending.

The primary benefit of financial literacy is providing an improved standard of living for students, individuals and families.   Financial literacy helps individuals and families accumulate wealth and live a financially stable life.  Families are also able to pass knowledge on to their children and future generations.

This month make at least one change to your spending habits to help pay down debt, create a savings account or start planning for your retirement.  Make a promise to yourself and your family that starting in April you will do at least one of the following to improve your financial life. 

1. Create a budget or spending plan and track spending daily, weekly or monthly.
2. Verify financial statements each month.
3. Pay bills on time or before the due date.
4. Get current on any late bills by negotiating with creditors or setup payment plans.
5. Don't buy something if you don't have the cash to pay for it.
6. Avoid using risky options such as payday loans, cash advance or title loans.
7. Use credit cards for emergencies only.
8. Get overdraft protection to reduce bounced check fees and find banks with little to no monthly fees.
9. Order a copy of your credit report and dispute any errors.
10. Pay off at least one credit card this year.
11. Create an emergency fund to cover bills and monthly expenses for 9-12 months.
12. Reduce monthly spending by 30-50%.
13. Buy more of items you need instead of items you want.
14. Plan for your future by performing estate planning.
15. Avoid filing for bankruptcy.

13 Ways Parents Can be Financial Leaders

                                                            

February is Parent Leadership Month.  One area parents should show more leadership to their children no matter their age is finances.  Studies have shown that even those who learn about finances in school are still not fully prepared to manage their finances as an adult.  Most children don’t learn how to manage money until they become adults and some still struggle.  Most learn on their own through trial and error.

Starting early by giving your child an allowance helps them make mistakes under your guidance and they can learn from their mistakes without the painful financial consequences of mismanaging money many adults experience such as filing for foreclosure, having bad credit or filing for bankruptcy.

Some parents don’t have good money management skills and therefore can’t pass on valuable knowledge to their child.  Children develop bad habits at an early age so it is even more important to make sure your child receives good advice on how to manage their money.

  

Due to the economy many adult children and moving back home.  According to NEFE:  50% of parents are providing housing, 48% are helping with living expenses, 29% of giving money and 28% are helping with medical bills.  Moving back home is the only affordable option for many adults. Some adult children are moving back home due to unemployment, debt or divorce.

It is important to clarify expectations when helping adult children financially. Some parents don’t want to see their children suffer but in some cases parents are hindering instead of helping their children.  This is especially true if children mismanage their money or make bad life decisions.

Parents have to be cautious and prevent taking on their children’s problems and making them their own.  Parents are the first teachers or leaders in a child’s life and should set good examples for their children to help prevent them from making drastic mistakes.  Here are 13 ways for parents to be financial leaders for their children. 

1. Give guidance.  Give advice on how to manage finances and deal with problems. If you are not good with managing money sign you and your child up for free or low-cost classes in your area.
2. Discuss. Have regular family meetings to discuss household finances, mistakes made and lessons learned.
3. Show.  Show your children how you pay bills, manage money, shop for groceries and other items, use coupons, etc.
4. Set rules.  Set ground rules for how your household is run and discuss them.
5. Be supportive. Be as supportive as possible and try to see your child’s point of view.
6. Pay yourself first.  Pay your bills first to keep a roof over your head.  If you have any additional money left over you can use a portion of that to help your children.
7. See where you are. Determine if you can afford to help financially, if not, provide your children with other alternatives.
8. Provide resources.  Provide resources such as books, television shows or social organizations that can offer help.
9. Save.  Continue to save money while you are helping your children.
10. Don’t dip.  Don’t dip into your retirement or take out a loan to help children.  Don’t co-sign for a loan or open joint credit card accounts.
11. Debt.  Don’t go further into debt helping your children.
12. Set a limit.  Set a limit on how much you will help and stick to it.
13. Draw up a loan agreement.  Sign a contract if you want to ensure you will get your money back.