The 1-Page Financial Plan: 10 Tips for getting what you want from Life

Carl Richards, author of The One Page Financial Plan, knows the financial mistakes–including the ones he has made–that people make.  Based on his experience as a financial planner, he provides 10 tips to help people get what they want from life.  Note:  An explanation and examples to illustrate each tip are provided in this article.  His tips are:

  1. Ask why money is important to you.
  2. Guess where you want to go.
  3. Know your starting point.
  4. Think of budgeting as a tool for awareness.
  5. Save as much as you reasonably can.
  6. Buy just enough insurance today.
  7. Remember that paying off debt can be a great investment.
  8. Invest like a scientist.
  9. Hire a real financial advisor.
  10. Behave for a really long time.

For more information, click here. 

Teaching Suggestions

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

  • Illustrate how each tip provided in this article could affect an individual’s financial plan.
  • Encourage students to read the entire article to help determine what’s really important in their life.

Discussion Questions

  1. It’s often hard (or maybe close to impossible) to determine what you value and where you want to go in the next 20 to 30 years with perfect accuracy. Still, experts recommend that you establish a long-term financial plan.  What steps can you take to make sure your plan will meet your future needs?
  2. Why is it important to evaluate your plan on a regular basis and make changes if necessary?

How the Presidential Election Will Affect Your Investment Strategy

“The sky is falling!  If my chosen candidate doesn’t win, the markets are doomed and so are my investments.”

In this article, Bijan Golkar points out that a presidential election can cause excitement or despair depending on if you are a Republican or a Democrat and who the major parties nominate for the highest and most powerful office in the world.

The article discusses market returns both before and after a presidential election year and some of the underlying reasons for market volatility.  Then the article stresses the importance of a person’s long-term goals and a plan for long-term growth as opposed to “emotional investing.”  Finally, the article discusses the pros and cons of our economy that could affect investment values.

For more information, click here. 

Teaching Suggestions

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

  • Discuss the importance of a long-term investment plan that will take advantage of the time value of money.
  • Describe some of the pitfalls of “emotional investing.”

Discussion Questions

  1. What are the typical characteristics of an emotional investor? Of a long-term investor?
  2. What are the advantages of a long-term investment program when compared to “emotional investing?”

How to Find a Financial Advisor

“Finding your next financial advisor is as easy as counting from one to five.  You just need to know where to look and what to ask.”

The information in this article is provided by the National Association of Personal Financial Advisors (NAPFA) and was developed to help people find a financial advisor.  Specific suggestions include

  1. Before beginning a search for a financial advisor, have a conversation with your loved ones to determine what is important, what you value, and what you want to accomplish.
  2. To develop a list of potential advisors, talk to friends and relatives and visit websites like
  3. Narrow your list to the top three contenders then do your homework. Visit company websites and read each advisors biographical sketch, check information available on the SEC website (, and develop a list of questions that you want to ask when you meet each advisor.
  4. Request a meeting with each potential advisor. Ask questions to help assess your comfort level with each advisor.  For help, visit the NAPFA website ( and click on “Tips and Tools.”
  5. Often the key to building a relationship with a financial advisor is communication. Review your relationship with a financial advisor over time.  Don’t just look at investment results, but also determine if the advisor (and her or his firm) is helping you achieve your important goals.

For more information, click here.

Teaching Suggestions

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

  • Remind students that it is better to start financial planning earlier rather than later in life.
  • Stress that even beginning investors or investors with little money can still use a financial advisor.
  • Encourage students to visit the National Association of Personal Financial Advisors website ( There is a great deal of quality information available with a click of a mouse.

Discussion Questions

  1. Often, the first step when choosing a financial advisor begins before you actually meet a potential advisor. How can determining your goals and what you value help you start financial planning?
  2. While many investors think that financial advisors are only for the rich, beginning investing or investors with little money can benefit from professional help. What steps can you take to find the right financial advisor to help you obtain your goals?

Home Ownership Can Be A Financial Disaster

While home ownership is often promoted as part of the “American Dream” and a sound financial decision, another point of view might be considered.  Home ownership may not be for everyone when considering these drawbacks:

  • A home is not an investment. Over the past 120 years, the real return of the value of homes has been less than 0.5 percent a year,
  • Home ownership can be a money drain. Mortgage payments and other costs, such as property taxes, maintenance, repair, insurance, and utilities can add up to a significant portion of a household budget.
  • The mortgage tax deduction may not be worth it. If you do not itemize on your taxes, you will not get the benefit of this deduction.
  • Consider the “rent-price ratio.” This analysis is determined by dividing the average home sale price by the average annual rent.  A ratio of 1 to 15 is considered a range when it is better to buy than rent. Between 16 to 20, you are getting in to risky buy territory. Over 21, it may be better to rent than buy.  Be sure to also consider how much space you need. Homes are usually larger than apartments.
  • People often buy a larger house than needed, resulting in higher mortgage, insurance, energy, and maintenance costs as well as higher property taxes.

For additional information on the financial drawbacks of home ownership, click here.

Teaching Suggestions

  • Have students ask homeowners for suggestions they would offer to people planning to buy.
  • Have students create a financial analysis comparing renting and buying for comparable housing.

Discussion Questions

  1. What factors might you overlooked when deciding to buy a home?
  2. How you decide whether to rent or buy your housing?

Financial Security and Longevity

While Americans are living longer and healthier lives, they also are facing more financially fragile situations. Uncertainty related to financial health in the later years of life has become more common. Lower, less predictable incomes among those retiring within 10 years has resulted in difficulty paying their bills. This group also reports a lower net worth. In 2013, the typical 56- to 61-year-old had an average of $17,000 in retirement savings. This lower level of net worth is partially the result of higher levels of debt than the previous generation. This debt is in the form of higher mortgages and education loans, including amounts owed for their children’s education.

To address these concerns, several policy actions are proposed:

  • Requiring and supporting strategies for to build effective financial capability, including coaching and workforce development programs.
  • Tax policies and other incentives that encourage savings and investment among lower-income and lower-wealth families.
  • Policies to increase educational opportunities without excessive debt.
  • Efforts for protection from financial difficulties caused by medical catastrophe.
  • Policies for improved housing stability of both owners and renters.

For additional information on financial security and longevity, click here.

Teaching Suggestions

  • Have students interview people to determine common actions used to save for retirement.
  • Have students create a presentation to suggest action for improved financial security for various income levels.

Discussion Questions 

  1. What are some financial pressures faced by households as people approach retirement age?
  2. What actions might government and business take to reduce the financial pressures of people approaching retirement age?


BAM banned from debt collection

In late July 2016, filed as part of Operation Collection Protection, the Federal Trade Commission (FTC) charged that BAM Financial used lies, threats, intimidation, and other illegal practices to extract payments from consumers.  When obscene language, incessant calls, and harassment of family members didn’t get the results they wanted, the defendants got personal.  For instance, the defendants told the parent of one purported debtor “No wonder your daughter is in such predicament with a mother like you.”  The FTC alleges that they falsely stated to another consumer’s 84-year-old mother that they had a warrant for her daughter’s arrest and later told the consumer they were bounty hunters.

The FTC says BAM’s letters and phone calls were riddled with false threats of litigation.  The complaint also charged that in numerous instances, the defendants didn’t follow up within five days of their initial communications with proper validation notices as the law requires.

The settlement with BAM Financial, Everton Financial, Legal Financial Consulting, Luis O. Carrera, and Robert Llaury bans them for life from debt collection agency industry.

For more information, click here.

Teaching Suggestions

  • Ask students what consumer rights they have when dealing with debt collection agencies.
  • Ask students to list important provisions of the Fair Debt Collection Practices Act.

Discussion Questions

  1. Nearly 30 million Americans have their accounts in collection, and debt collectors make as many as one billion contacts with people every year. Are these contacts legal?
  2. What types of debts are covered under the Fair Debt Collection Practices Act?
  3. How can you stop a debt collector from contacting you?

Eight Measurements of Financial Health

The Center for Financial Services Innovation has identified eight indicators to measure financial health. These measurements can serve as a framework for guiding individuals and financial service providers toward an improved quality of life for consumers.

The eight indicators of financial health, presented in four categories, are:


  1. Difference between income and expenses
  2. Percent of bills that are paid on time and in full


  1. Number of months of living expenses in liquid account balances
  2. Amount of one’s long-term savings, assets, and investments


  1. Debt-to-income ratio
  2. Credit score or credit quality tier


  1. Type and extent of insurance coverage
  2. Behaviors that demonstrate future financial orientation

For additional information on financial health indicators, click here.

Teaching Suggestions

  • Have students ask people to describe what is meant by “financial health.”
  • Have students create a list of actions that might be taken to achieve financial health.

 Discussion Questions 

  1. What are additional factors that might be considered when measuring a person’s financial health?
  2. What actions are you taking to achieve financial health?

Online Shopping: Tips to keep close to your wallet

Online shopping makes it easy and convenient to search for – and buy – the must have items on your wish list.  Before you buy, follow these tips on avoiding hassles, getting the right product at the right price, and protecting your financial information.

To make sure you’re getting the best deal, compare products.  Do research online, check product comparison sites, and read online reviews.

Confirm that the seller is legit.  Look for reviews about their reputation and customer service, and be sure you can contact the seller if you have a dispute.

Pay by credit card to ensure added protections, and never mail cash or wire money to online sellers.

Keep records of online transactions until you get the goods.

Report online shopping fraud.

For more information, click here.

Teaching Suggestions

  • Ask students if they have shopped online. If so, what have been their experiences?
  • Why is it important to confirm the online seller’s physical address and phone number?
  • If you return an item, who pays the shipping costs or restocking fee?

Discussion Questions

  1. What should you do if you get an e-mail or pop-up message that asks for your financial information while you are browsing?
  2. Why is it important to read the seller’s description of the product closely, especially the fine print?
  3. Why is e-mail not a secure method of transmitting financial information, such as, your credit card, checking account, or Social Security number?
  4. Where can you file a complaint to report online shopping fraud?

What is Your Teaching Style?

Every teacher has a distinctive style that will hopefully engage students in the learning process and help them develop critical thinking skills.  As traditional teaching styles are adapted to meet the needs of varied students, consider these five main classroom strategies:

  1. Authority, or lecture style, is teacher-centered and may be appropriate for certain topics and settings. However, little or no interaction with the teacher may limit learning effectiveness.
  1. Demonstrator, or coach style, allows teachers show key concepts with the use of lectures, visuals, media, and exhibits. This approach may be difficult to implement in larger classrooms.
  1. Facilitator, or activity style, promotes self-learning and develops critical thinking skills, such as training students to ask questions and obtain skills to find answers.
  1. Delegator, or group style, provides opportunities for guided discovery and problem-based learning. The teacher serves as an observer role with students working toward a common goal.
  1. Hybrid, or blended style, offers an integrated approach to coordinate the personality of the teacher with the interests and needs of students.

Most important, is the engagement of students in the learning process along with a teaching style to address the needs of diverse students.

For additional information on teaching styles, click here.

Teaching Suggestions

  • Ask students to describe learning environments that were most effective for them.
  • Conduct a personal assessment to determine the teaching style that might best fit your situation.

Discussion Questions 

  1. What are potential benefits and concerns for various teaching styles in your class setting?
  2. How do the various teaching styles best fit your personality and your students?

Pokémon Go Can Cost You

Pokémon Go has resulted in a loss of money and other concerns.  In this popular game, users interact virtually with Pokémon characters placed in real world settings. The app is free to download, however there are in-app purchasing opportunities. Players are encouraged to pay for hints and tips for a competitive advantage.

In addition to financial losses, the Pokémon Go app has been used to lure robbery victims.  Other players have been robbed of their phones.  Police departments caution players to be aware of their surroundings.

Be warned that “free isn’t the same as no cost.”  Users may pay in the form of data use, legal confrontations, injuries, and reduced work productivity.  Higher insurance costs can also occur when playing the game while driving, which might result in an auto accident. Social concerns include disturbing church services and other occasions with players capturing creatures during the events.

For additional information on the cost of Pokémon Goclick here.

Teaching Suggestions

  • Have students suggest ways that an app game might be used for improved learning or assisting others in need.
  • Have students describe safety precautions when playing Pokémon Go.

Discussion Questions 

  1. Why are people attracted to the game, often with a personal or financial cost?
  2. What actions might be taken to avoid the financial and personal dangers of the game?