Monthly Archives: February 2020

Feb 22 2020

Kakeibo: The Japanese art of saving money

Kakeibo, pronounced “kah-keh-boh” and translates as “household financial ledger,” is a method used in Japan for managing personal finances. For over 100 years, this system has helped people make smarter money decisions.

Similar to other budgeting systems, kakeibo is designed to help you understand your relationship with money by recording all financial inflows and outflows. As proven by research, this recordkeeping method emphasizes physically writing your financial activities making you more aware of bad money habits. Kakeibo can help you become completely honest about your spending with the use of four categories: (1) needs, (2) wants, (3) culture, such as books and museum visits, and (4) unexpected – medical expenses or car repairs.

Kakeibo encourages you to ask yourself these questions before buying any non-essential items, or things you buy on impulse:

  • Can I live without this item?
  • Based on my financial situation, can I afford it?
  • Will I actually use it? Do I have the space for it?
  • How did I come across it in the first place? (Did I see it in a magazine? Did I come across it after wandering into a gift shop out of boredom?)
  • What is my emotional state in general today? (Calm? Stressed? Celebratory? Feeling bad?)
  • How do I feel about buying it? (Happy? Excited? Indifferent? And how long will this feeling last?)

In addition, to spend more mindfully, Kakeibo recommends that you:

  1. Leave the item for 24 hours.
  2. Don’t let major “sales” tempt you.
  3. Check your bank balance regularly.
  4. Spend in cash.
  5. Put reminders in your wallet – use a sticker: “Do you REALLY need this?!”
  6. Change the environments that cause you to spend.

For additional information on kakeibo, go to:

Link #1

Link #2

Link #3

Teaching Suggestions

  • Have students conduct a survey to determine reactions to this budgeting system among people in different age categories and life situations.
  • Have students prepare a visual summary of some of the characteristics of the budgeting system.

 Discussion Questions 

  1. What elements of this budgeting system might people find beneficial? What are possible drawbacks?
  2. If you were to implement this system for your life, which actions would you select to do first?
Feb 15 2020

Tips for gift card shopping

Gift cards are one quick way to get through your last-minute holiday shopping list. But before you give (and get) gift cards, here are a few things you need to know.

  • Inspect gift cards before you buy. A gift card should have all its protective stickers in place. Report the card to the store if anything looks scratched off or damaged.
  • When you buy, save the receipt. Keeping the gift card receipt can be helpful if you run into problems with the card. 
  • Treat gift cards like cash. Report a lost or stolen gift card to the card’s issuer immediately. Most card issuers have toll-free numbers you can find online to report a lost or stolen card. Depending on the card issuer, you may even be able to get some money back.
  • Buy gift cards from sources you know and trust. Think twice about buying gift cards from online auction sites, to avoid buying fake or stolen cards.
  • Read the gift card’s terms and conditions. Know the deal you’re getting with gift cards. For example, are there fees every time it gets used – or if it sits unused?

And here’s the most important gift card tip of all:

  • Remember that gift cards are for gifts, not payments. Gift cards are a scammer’s favorite way to steal your money. Anyone who demands that you pay them with a gift card, for any reason, is always a scammer. This includes calls from imposters claiming to be a family member with an emergency, calls from the IRS and Social Security, law enforcement, and utility companies. Simply, never pay with a gift card.

Report gift card scams directly with the card issuer, then report it to the Federal Trade Commission at ftc.gov/complaint.

For more information, click here.

Teaching Suggestions

  • Ask students if they have ever given or received a gift card. If so, let them describe their experience.
  • Make a list of differences between a traditional debit-card and gift cards.

Discussion Questions

  1. Why is it important to inspect gift cards before you buy them?
  2. What are some of the disadvantages of gift cards?
  3. What happens to a gift card holder when the retailer/issuer goes bankrupt?
Feb 8 2020

Paying for Long-Term Care

Paying for long-term care (sometimes called “long-term services and supports”) includes non-medical care for people who have a chronic illness or disability. This includes non-skilled personal care assistance, such as like help with everyday activities, including dressing, bathing, using the bathroom, home-delivered meals, adult day health care, and other services. Medicare and most health insurance plans, including Medicare Supplement Insurance (Medigap) policies, don’t pay for this type of care, sometimes called “custodial care.” You may be eligible for this type of care through Medicaid, or you can choose to buy private long-term care insurance.

Long-term care can be provided at home, in the community, in an assisted living facility, or in a nursing home. It’s important to start planning for long-term care now to maintain your independence and to make sure you get the care you may need, in the setting you want, now and in the future.

For more information, click here.

Teaching Suggestions

  • Ask the students if they have Long Term Care insurance since 40 percent of the 13 million people receiving long term care services are between the ages of 18 and 24.
  • Ask students to prepare a list of services that long term care insurance policy may provide.

Discussion Questions

  1. If majority of Americans will be cared for at home by family members and friends, why should anyone purchase a long-term care insurance policy?
  2. Do younger people need long-term care insurance? If so, why?  If not, why?
  3. Why long- term care insurance is very expensive? Should everyone purchase long term care insurance?