Monthly Archives: August 2015

Aug 29 2015

Modernize Your Resume

Resumes continue to evolve. To have a modern-looking resume, consider these suggestions:

  • Use keywords from the job description that will allow the applicant tracking systems (ATS) to select your resume.
  • Adapt your resume to each position for which you apply. Use organization-specific keywords to help you get an interview.
  • Eliminate your photos and references from your resume.
  • Include social media links for the recruiter to obtain additional information on your background and activities.
  • Make use of callout boxes, in addition to bullet points and line breaks, to highlight key experiences, qualifications, and accomplishments.

For additional information on updating your resume, click here.

Teaching Suggestions

  • Have students talk to others to obtain suggestions for updating a resume.
  • Have students create a resume based on these suggestions.

Discussion Questions 

  1. What are common mistakes people make on resumes?
  2. How might a person improve the effectiveness of their resume?
Aug 26 2015

Many Americans Have No Savings

About three in ten Americans have no emergency savings, according to a study conducted by Bankrate.com. This number has increased in recent years, mainly due to the lack of growth in household income. Without an emergency fund, people tend to encounter even greater financial difficulties. A person will often use high-interest debt to cover unexpected expenses. In addition to the 29 percent with no savings, another 21 percent have less than three months worth of expenses saved.

For additional information on emergency savings, click here.

Teaching Suggestions

  • Have students ask several people who their might cope with a financial emergency.
  • Have students create a plan for creating a emergency savings fund.

Discussion Questions 

  1. What are methods that might be used to cope with a financial emergency?
  2. How might a person be encouraged to create an emergency fund?
Aug 22 2015

Vital Financial Concepts To Teach Children

Learning at home is the starting point for teaching children about money. These eleven key personal concepts should be explained and experienced by children as they are growing up:

  1. Saving
  2. Budget
  3. Loan
  4. Debt
  5. Interest
  6. Credit card
  7. Taxes
  8. Investment
  9. Stock
  10. 401(k)
  11. Credit score

The age at which these concepts are taught will vary.

For additional information on teaching vital personal finance concepts to children, click here.

Teaching Suggestions

  • Have students describe how they learned about these concepts.
  • Have students conduct a survey among young consumers to determine their knowledge of these topics.

Discussion Questions 

  1. What additional personal finance concepts might be added to this list?
  2. What actions might parents take to teach these concepts to their children?
Aug 19 2015

Revising Dave Ramsey’s Baby Steps

Dave Ramsey has taught and encouraged millions to get out of debt and to achieve an improved financial situation through his “seven baby steps,” which are: (1) establish a $1,000 emergency fund; (2) pay off debt; (3) save three to six months of expenses; (4) invest 15 percent of income in pre-tax retirement funds; (5) plan for the funding of the college education of children; (6) pay off mortgage as soon as possible; (7) build wealth and give.

An alternative perspective to this approach might be:

  1. Create a larger initial emergency fund.
  2. Instead of paying off the smallest debts first, pay off the ones with the highest interest.
  3. A minimum of six months for expenses is needed, with twelve months more realistic.
  4. Take advantage of any 401k matching offered by employers.
  5. College may not be the right educational choice for everyone. Also, those who go to college should be responsible for a portion of education costs.
  6. Home ownership may not be appropriate for everyone. When buying a home, paying off a mortgage may be a higher priority than saving for college to reduce the amount of interest paid.
  7. Making money, saving money, and donating to charity should be the main focus.

For additional information on personal financial planning actions, click here.

Teaching Suggestions

  • Have students survey others regarding their use of these personal financial planning suggestions.
  • Have students obtain additional financial planning suggestions using online research.

Discussion Questions 

  1. What do you believe are the most important actions that should be taken regarding wise personal financial planning?
  2. How would you communicate these financial planning actions to others?
Aug 15 2015

Auto Insurance Resources

Having adequate auto insurance and determining what coverages are needed are fundamental for avoiding financial difficulties. Consumer Action (www.consumer-action.org) offers a variety of materials related to shopping for auto insurance, managing auto insurance costs, and obtaining assistance when encountering trouble when filing a claim.

These resources includes downloadable publications on the basics of auto insurance in English, Spanish, Korean, and Vietnamese. Also available are PowerPoint slides and lessons plans.

For additional information on auto insurance resources, click here.

 

Teaching Suggestions

  • Have students develop actions that can reduce the cost of auto insurance.
  • Have students create a video that demonstrates financial problems associated with not having adequate auto insurance.

Discussion Questions 

  1. What are information sources that might be used to become better informed on auto insurance?
  2. How might a person reduce the cost of auto insurance?
Aug 12 2015

Avoiding Banking App Errors

While smartphone apps have made banking easier than ever, threats to financial security continue to grow.  However, some simple actions can be taken to avoid banking app mistakes.

1.    Don’t conduct banking transactions on public Wi-Fi networks since they are vulnerable to hackers. Use a virtual private network (VPN), which provides added security and encryption.
2.    Log out after your session to prevent a thief from getting access to your bank account.
3.    Select a not-so-obvious username. Create password recovery questions with responses that are difficult to obtain from public records.
4.    Update your app when a new version is available to take advantage new security features.
5.    Create a strong password with special characters, and it should be at least 12 characters long. Change your password every 90 days.

For additional information on banking app errors, click here.

Teaching Suggestions

  • Have students talk with others about their experiences using banking apps.
  • Have students locate online information about the latest security features fof banking apps.

Discussion Questions 

  1. What are benefits of costs of banking apps?
  2. How might banking apps be improved for increased financial security?
Aug 8 2015

Your Path To Success

What separates successful people from others?   While favorable timing, personal connections, wealth or other advantages can lead to success, a person must also possess various success-oriented attitudes, behaviors, and skills. Some of the actions that can lead to academic, career, and personal success include:

  • Display poise and confidence in your ability.
  • Assess existing skills and knowledge.
  • Set personal and career goals that align with your abilities.
  • Develop a habit on ongoing learning.
  • Take risks that allow you the opportunity to achieve at a higher level.
  • Persevere in your work efforts
  • Be prepared to face and go beyond obstacles.
  • Rejection and criticism can lead to future success.
  • Develop effective interpersonal skills. Your ability to interact, gain support of others, and develop trust is critical.

 For additional information about a success path, click here.

 

Teaching Suggestions

  • Have students ask people to describe their definition of “success.”
  • Have students obtain suggested actions for personal and career success using online research.

Discussion Questions 

  1. What are common mistakes people make in their personal financial planning and career planning activities?
  2. What actions do you plan to take to improve your personal and career success?
Aug 5 2015

A Boost To Your Credit Score?

Your credit score, which is mainly based on your history of repaying loans, can determine your ability to borrow money and how much you will pay for it.  Here is good news for some consumers: Your score may improve as a result of changes in how credit reports and scores are compiled.

FICO, a company that provides software used to produce many consumer credit scores, announced that unpaid medical debt will not have as big an impact on the new version of its most popular credit score.  And the Consumer Financial Protection Bureau (CFPB) announced that it will require the major consumer reporting agencies to provide regular accuracy reports to the Bureau on how disputes from consumers are being handled.  The CFPB said medical debt in particular is a source of numerous complaints because billing process can be complicated and confusing to consumers.  The CFPB noted that the accuracy reports will help it hold credit reporting companies accountable for ensuring that erroneous information does not damage your credit score.

These changes may help raise some consumers’ credit scores and reduce their borrowing costs.  In general, though, to build or maintain a good credit score, consumers need to manage their money carefully, and that includes using caution when taking on additional debt.

For more information, click here.

Teaching Suggestions

  • Ask students if they have requested copies of their credit reports and if the information was correct?
  • Have you applied for new credit recently, and it so, what was the outcome?

Discussion Questions

  1. What is the best strategy to maintain or improve your credit score?
  2. What are the legal steps to take to improve your credit report?
  3. If you apply for too many new credit cards, how it might affect your credit score?
Aug 1 2015

The Retirement Number Secret No One Wants to Tell You

There’s a substantial gulf between the amount of money Americans have actually saved for retirement and what they might need to last throughout their golden years.”

This article reports the results of a survey conducted by the Employee Benefits Research Institute which discovered that nearly three in five people surveyed had saved $25,000 or less for their retirement.  Even worse—more than a quarter of those surveyed had saved less than $1,000.

To help plan for retirement, many financial experts suggest that you need between 70 and 85 percent of whatever yearly income you had during your career in order to sustain the lifestyle you enjoyed prior to retiring.  While these calculations provide a recommended dollar amount to provide retirement income, the same calculations often create two problems.  First, there is often a big gap between what people have saved and what they need for retirement.  Second, the amount of money you need in retirement is based on what’s important to you and the standard of living you want in retirement.  And the you may be the most important part of retirement planning.

For more information, click here.

Teaching Suggestions

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

  • Explain why you should plan for retirement early in your career rather than waiting until you are about to retire.
  • Reinforce the concepts of the time value of money and a long-term saving and investing program.

Discussion Questions

  1. Many financial experts suggest you begin retirement planning as soon as you begin your career. What are the benefits of planning for retirement planning sooner rather than later?
  2. How is the time value of money related to a long-term investment program and retirement planning?