Oct 25 2025

WHAT TO KNOW ABOUT DEDUCTIBLES  

Here are some things to know about deductibles when deciding what policy to buy.

  1. Know the math

A deductible may be a specific dollar amount or a percentage. If a policy has a deductible that’s a percentage, make sure you know how that translates to a dollar amount. Here are two examples for homes insured for $150,000:

  • Policy A has a $500 deductible. A hail storm destroys the home’s roof, and the cost for repairs is $6,500. Policy A will pay $6,000 of the cost to repair the roof.
  • Policy B has a 5 percent deductible – or $7,500. If the home needed $6,500 in roof repairs, Policy B would not pay anything because the amount of repairs is less than the deductible.

2. Know when it applies

Deductibles for home and auto policies work differently than deductibles for health policies.

For health policies, the deductible usually covers a year.

For home and auto policies, the deductible will be applied to each claim. If you have a wreck in February and your car gets broken into in June, your insurance company will subtract the same deductible amount from the damages of each claim before paying.

3. Know what works for you

In general, the higher the deductible, the lower the cost for the policy. When deciding what deductible is right for you, think about how much you can afford to pay if your property is damaged. Remember that filing small claims may affect how much you have to pay for insurance later. Switching from a $500 deductible to a $1,000 deductible can save as much as 20 percent on the cost of your insurance premium payments.

For more information, go to: What to know about deductibles

Teaching Suggestions:

  • Ask students what deductibles they have on their automobile and home insurance.  What factors did they consider to determine their deductibles?
  • Have students talk to friends and relatives to determine methods of reducing home and auto insurance premiums.

 Discussion Questions:

  1. What are some arguments in favor of and against higher deductibles?
  2. What should be the main factors used to determine methods of reducing the cost of home and auto insurance?
Oct 11 2025

How are your auto and homeowners insurance costs calculated?

Insurance companies set prices to match the cost of future claims. To do this, insurance companies look at your personal risk factors (the type of car you drive or where you live). But they also look at how much they spend on all claims.

Insurance companies determine premiums and rates by looking at you

Insurance companies use many factors to calculate what they charge a customer. Each company’s premium formula is different.

For home insurance, common factors include:

  • Your home’s age.
  • Your home’s roof age and material.
  • Where you live.
  • The cost to replace your house.
  • Your claim history.
  • Your credit score.

For auto insurance, common factors include:

  • Your driving record and claims history.
  • Where you live and how much you drive.
  • Your age, gender, and marital status.
  • Your occupation.
  • The cost to replace the car you drive.
  • Your credit score.

If some of these factors changed since your last renewal, it could raise or lower your premium. This includes characteristics that change over time, such as how much your home or auto is worth. You may see such changes in a policy’s premium from one renewal to the next.

Most State laws require that insurance rates:

  • Be adequate.
  • Not be excessive.
  • Be based on sound actuarial principles.
  • Be reasonably related to all costs.
  • Not be based on the insured’s race, creed, color, ethnicity, or national origin.

Ask about discounts and shop around

If your auto or home insurance bill is rising, ask your company to explain the increase and ask if you’re getting all available discounts.

For more information, go to:

How are your auto and homeowners insurance costs calculated?

Teaching Suggestions:

  • Have students ask their insurance company if they are getting all available discounts.
  • Ask students to consider calling an independent insurance agent for insurance cost comparisons.

Discussion Questions:

  1. What factors do insurance companies use to calculate your auto and home insurance premiums?
  2. Why do insurance companies use your credit scores to determine your premium for your home and auto insurance?
  3. What is reinsurance and why do insurance companies buy reinsurance?
Sep 27 2025

SHOULD YOU REFRESH YOUR BUDGET?

Whether you have been budgeting for a month, a year, or longer, a regular review of your spending plan is vital.  Several situations may indicate a need for a revised budget; these include:

  • Worrying about money emergencies. Be sure your budget includes savings to create an emergency fund for unexpected expenses.
  • Using the same budget each month. Spending needs are likely to change from month to month, as a result slight changes might be necessary.
  • Not tracking expenses. A record of your actual spending is vital for budgeting success. 
  • Overspending in a budget category. Be sure your plan is realistic and helps you avoid unneeded spending.
  • Avoiding a “sharing” category. The SPEND, SAVE, SHARE framework is a recommended approach. Giving to church, charities, and worthy causes contributes to living a fulfilled life and contentment.
  • A major change in income. A raise should not result in lifestyle inflation in which you significantly expand your spending. Or, a loss of job can result in an extensive budget adjustment along with use of emergency funds. Your emphasis will likely be on spending for food, utilities, shelter and transportation.
  • Not considering inflation. Most people have been affected by rising costs of many items requiring an adjustment in budgeted amounts.
  • Overlooking annual and seasonal expenses. Planning for holidays, vacations, back-to-school expenses, and semiannual auto insurance requires setting aside an amount each month for those items. Not doing so may result in increased debt or using your emergency fund for something that is not an emergency.
  • Planning for funds from paid off debt. As you pay off credit cards and loans, those monthly payments can now be used to expand your emergency fund and other savings goals.
  • Not coordinating budget items with savings goals. If your spending and saving activities are not helping you achieve your financial goals, a revised budget may be needed.

For additional information on refreshing your budget, click here.

Teaching Suggestions

  • Have students talk to others to learn actions used for successful budgeting.
  • Have students research budgeting apps that could help them better plan their money management activities.

Discussion Questions 

  1. What features of an app might be helpful for successful budgeting activities?
  2. Describe actions that might be taken when a person needs to revise their budget.   
Sep 13 2025

Ways to save money on home insurance

Did your homeowner’s premium go up? Use these tips to see if you can get a lower rate.

  1. Shop around

Insurance companies charge different rates, and your company might have raised your rates.

You can shop around for a better price. Get sample rates at HelpInsure.com. Then contact the companies you’re interested in and use these tips.

Learn more: How to shop smart for home insurance (checklist)

2. Ask about discounts

Make sure you’re getting all the discounts you qualify for. Ask your insurance company if it offers discounts for:

  • Having a monitored burglar or fire alarm system.
  • Having other policies with the same company (like auto, home, life, etc.).
  • Not filing any claims for three straight years.

Learn more: Lower your home insurance cost by asking for discounts

3. Look at your deductible

Choosing a policy with a higher deductible can lower your premium. But remember that a higher deductible means you might have to pay more out-of-pocket if you have a claim. How much can you afford to pay if your home is damaged?

Remember: A good price is only a bargain if you also get good service. Call your State Department of Insurance  to check a company’s complaint record before buying a policy.

 For more information, go to:

Ways to save money on home insurance

Teaching Suggestions:

  • Have students suggest methods of determining how to save money on home insurance.  Also, ask for actions that can be taken to achieve the goals.
  • Have students create a system for starting and updating a home inventory.

Discussion Questions:

  1. When does a family or individual know they have enough home insurance?
  2. What type of insurance coverage is more important, property or liability?  Explain
Aug 30 2025

Will my insurance premiums go up if I file a claim?

It depends on the type of claim and how many you file. But, yes, your home and auto premiums can go up if you file claims. You could also lose any discounts you’re getting for being claim free.

  1. What counts as a claim?

Home and auto insurance companies can raise your premium for filing most types of claims. Auto companies can raise your premium if you’ve had accidents or gotten traffic tickets.

Home and auto companies can’t charge you more for:

  • Claims you file that the company didn’t pay. This includes claims the insurance company denied because your policy doesn’t cover the damage.
  • Calling your company or agent to ask questions about your policy or the claims filing process.

Home companies can’t charge you more for:

  • Claims for damage from natural causes, including weather.
  • Appliance-related water damage claims, if the repairs have been inspected and certified, unless you have three or more claims in three years.

    2. Consider your deductible
  • Before you file a claim, find out how much your deductible is. The insurance company will subtract the amount of your deductible from your claim payment. Also get repair estimates. If the cost of repairs is about the same or less than your deductible, you may decide it’s not worth filing a claim. Learn more about deductibles.

    3. Know your claims history

Insurance companies use your claims history to decide if they want to sell you a policy and how much to charge you. Most insurance companies get a report from the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history. Because most companies use CLUE, they can learn about home or auto claims you’ve filed, even if the claim was with another insurance company.

For more information, click here.   

Teaching Suggestions:

  • Ask students if they or their family members filed any home or auto claims with rheir insurance company.  If so, what was their experience?
  • Ask students if the insurance company raised their premiums or cancelled their insurance coverage.

Discussion Questions:

  1. Why is it important to consider your deductibles before filing a home or auto insurance claim?
  2. Why do insurance companies use your claims history to decide if they want to sell you a policy or much to charge you?
Aug 16 2025

A.I. PROMPTS FOR IMPROVED FINANCIAL DECISIONS

Artificial intelligence (AI) is influencing every aspect of life and learning.  A vital skill when using AI is creating prompts to obtain valid information for your specific life situation. When creating an AI prompt, be sure to:

  • specify desired length, style, format, reference dates, reading level.
  • identify intended use, purpose, and audience.
  • begin with action verbs: create, design, explain, compare, summarize
  • split complex requests into subtasks and subproblems.
  • include examples and background information for context.
  • avoid complicated or unusual words.
  • submit follow-up requests to verify, clarify, and expand results.
  • ask for references from resources consulted.

Some suggested AI prompts to guide your financial decisions include:

Budgeting: “Help me create a monthly budget. My monthly take-home pay is [amount] with these fixed expenses [list items, amounts]. I have monthly variable expenses of approximately [amount]. I plan to save at least [amount] each month for [financial goal] in [number] years. Suggest budget categories and amounts.”  

“My variable income averages about [amount] each month. I have fixed monthly expenses of [amount].  What actions are suggested to plan for taxes, savings, and variable expenses?”

Banking Services: “Suggest a bank or credit union that minimizes fees and provides appropriate payment, savings, and loan services. I am a [describe current life situation] with a monthly income of [amount].”

Taxes: “I plan to move to [state/country], my current annual income is [amount]. What factors should I consider related to potential tax obligations in this new location?”

Wise Credit Use: “Each month, I use my credit card for several purchases, and always pay off the balance. How will this affect my credit score? What additional actions would help me build my credit score?” 

Insurance: “I’m currently [age] and [marital status] with [number] dependents. My income is [amount]. What amount of life and disability insurance should I consider? What would be an appropriate amount to pay for this coverage?”

“I currently drive a [year, make, model] vehicle, and am paying [amount] a year for auto insurance. What actions should I consider to review my coverage and reduce my insurance payment?”

Housing:  “My monthly income is [amount], I pay [amount] in monthly rent, and have [amount] saved for a down payment. How should I determine if I can afford closing costs and long-term homeownership expenses?“

Buying a Car: “I’m considering a used [year, make, model]. I’m able to afford [amount] for this purchase. What factors should I consider before buying this vehicle?”

Investing:  “I’m [age] with an annual income of [amount]. I’ve saved [amount] in an emergency fund. Now I would like to start investing for [goal] to be achieved in [number of years]. What investments should I consider?” 

Retirement Planning: “I’m [age], self-employed, and earn [amount] a year. What options do I have available to save for retirement?”

Wise Shopping:  “I’m planning to buy [item, model, other details] with a budget of [amount]. What actions would result in getting the best deal, strong customer service, and a good warranty?

Avoiding Consumer Fraud:  “When researching and buying [describe product or service] online, what actions should be taken to determine if an offer is genuine and to avoid being scammed?”

Wealth Creation:  “Based on my current key skills of [list 3-5 strongest abilities],  suggest three unique actions to use my existing skills to increase my income. For each action, suggest specific steps to implement the action and estimate the potential financial benefit.”

Despite every effort to obtain valid AI responses, be aware of these potential drawbacks:

  • Responses may possess bias and include flawed logic.
  • Incorrect facts or results not based on current financial data.
  • Inaccurate calculations and erroneous predictions.

For additional information on AI prompts for personal finance, go to:

Link #1

Link #2

Link #3

Link #4

Teaching Suggestions

  • Have students create and use an AI prompt to obtain guidance for a financial decision. Compare the response received with other sources (online search, information from friends or relatives).
  • Have students talk to others to obtain ideas on how AI is being used for financial decisions.

Discussion Questions 

  1. What features of AI might be most useful to help people improve their financial planning activities?
  2. Describe actions a person might take to evaluate the validity of an AI response.   
Jul 12 2025

Your Credit History Explained

What’s my credit history?

Your credit history describes how you use money. It shows things like:

  • how many loans and credit cards you have
  • how much money you owe
  • how long you’ve had credit
  • if you pay your bills on time

The three nationwide credit bureaus — Equifax, Experian, and TransUnion — collect this information and put it in your credit report.

Read Checking Your Credit Report to learn how to order your report for free.

Why is my credit history important?

Your credit history tells businesses how you handle money and pay your bills. Your credit history can affect whether you get a job, can rent an apartment, or get a credit card or loan. It also affects how much you’ll have to pay in interest to borrow money.

Positive information helps your credit. Positive information includes things like paying your bills on time and having low credit card balances. Negative information, like paying bills late, hurts your credit.

What if I don’t have a credit history?

You might not have a credit history if:

  • you’ve never had a credit card
  • you’ve never gotten a loan from a bank or credit union

Without a credit history, it can be harder to get a job, an apartment, or even a credit card.

What’s a credit score?

A credit score is a number that’s based on your credit history. Each nationwide credit bureau creates a different score. Your credit score will usually range between 300 and 850.

It costs money to find out your credit score. Sometimes a company might say the score is free. But you might find that you signed up for a service that checks your credit for you. Those services charge you every month. Some credit card companies, such as Discover Card, provide free credit score with your monthly statement.  

Before you pay any money, ask yourself if you need to see your credit score. You might not since if you know your credit history is good, your score will be good.

For more information, go to:

Your Credit History Explained | consumer.gov

Teaching Suggestions

  • Ask students if they have a credit history.  If so, have they checked what information does it contain?
  • What actions can be taken to build your credit history?

Discussion Questions

  1. What is credit history?  What does if describe?
  2. Why is it important to know about your credit history?
  3. What might be the consequences if you don’t have a credit history?
  4. What can you do to build and maintain your credit rating?
Jun 28 2025

National Slam the Scam Day

Social Security impersonation scams impact all age groups and remain one of the most common government imposter scams reported to the Federal Trade Commission.

“I strongly urge our citizens to be vigilant and protect themselves from criminal threats,” said Lee Dudek, Acting Commissioner of Social Security. “Scammers use fear and pressure to steal money or personal information and I implore Americans to hang up, ignore the messages, and report any scam attempts to oig.ssa.gov.”

Social Security will never tell you that your Social Security number is suspended; contact you to demand an immediate payment; threaten you with arrest; ask for your credit or debit card numbers over the phone; request gift cards, wire transfer, gold, cash, cryptocurrency; or promise a Social Security benefit approval or increase in exchange for information or money.

Criminals use sophisticated tactics to trick potential victims into disclosing personal and financial information. Be skeptical and on the lookout for these red flags: Typically, they use these P’s – Pretend, Prize or Problem, Pressure, and Payment. For example, scammers pretend they are from Social Security in phone calls, texts, emails, websites, or direct messages on social media, and claim there is a problem with the person’s Social Security benefits or Social Security number. The scammer’s caller ID may be spoofed to look like a legitimate government number. Scammers may also send fake documents to pressure people into complying with demands for information or money. Other common tactics include citing “badge numbers,” using fraudulent Social Security letterhead, and creating imposter social media pages to target individuals for payment or personal information.

Social Security employees do contact the public by telephone for business purposes. Ordinarily, the agency calls people who have recently applied for a Social Security benefit, are already receiving payments and require an update to their record, or have requested a phone call from the agency. If there is a problem with a person’s Social Security number or record, Social Security will typically mail a letter.

To report a scam attempt, go to oig.ssa.gov.

For more information, go to www.ssa.gov/scam, Social Security and OIG Partner for National Slam the Scam Day | SSA  and www.ssa.gov/fraud.

Teaching Suggestions:

  • Ask students if they or their family members have been contacted by Social Security employees?  If so, what was the reason for the contact?
  • Ask students if they have ever called Social Security local office?  If so, what was their experience with the office?

Discussion Questions:

  1. What can people do to protect themselves from criminal threats by fraudsters?
  2. What are examples of tactics that scammers use to steal your money and personal information?
Jun 14 2025

Payday Loans and Cash Advances Explained

Payday loans are loans for a small amount of money for a short time. They’re also called cash advances. Payday loans can be very expensive. Before you get a payday loan, look for other ways to borrow money.

How does a payday loan work?

  • Step 1: You give the lender a check for the money you want to borrow — plus the lender’s fees. OR you give the lender permission to take the loan amount and fees out of your bank, credit union, or prepaid card account.
  • Step 2: The lender gives you cash — minus the fees.
  • Step 3: You have to pay the lender back — usually two or four weeks later. If you don’t, the lender can cash the check or withdraw the money from your account.

Lenders have to tell you the cost of the loan in writing before you sign the loan agreement.

Make sure you understand how much the loan really costs in finance charges and annual percentage rate, or APR. The finance charge shows the cost of the loan in dollars. The APR shows how much it costs you to borrow the money for one year.

If you can, borrow only what you can pay back with your next paycheck.

What happens if I can’t pay the lender back?

It could cost you a lot more money.

If you can’t pay the lender back when the loan is due, they might let you borrow the money for two or four more weeks. This is called a rollover.

But to roll over the loan, you have to pay the fee that’s due, plus a new fee to extend the due date.

If you roll over the loan a few times, you could end up paying hundreds of dollars in fees. And you’ll still owe the original money you borrowed.

What other options do I have?

Before you decide to get a payday loan:

  • Ask for more time to pay your bills.
  • Try borrowing money from family or friends, a bank or credit union, or your credit card.
  • Talk to a credit counselor to get help.

For more information, click here.

Teaching Suggestions

  • If you need to borrow money, should you borrow from a relative or a friend?  Or, from a payday Lender?
  • Make a list of sources where you can get inexpensive and medium-priced loans.

Discussion Questions

  1. How does a payday loan work?
  2. Why is it important to explore other financing options before taking out a payday loan?
  3. What happens if you can’t pay the lender back on time?
May 31 2025

Top scams of 2024

Even though the number of fraud reports is roughly the same as last year, more people lost a lot more money to fraud. One in three people who reported fraud said they lost money (up from one in four last year), adding up to $12.5 billion (up $2.5 billion from 2023). People lost over $3 billion to scams that started online, compared to approximately $1.9 billion lost to more “traditional” contact methods like calls, texts, or emails. However, people lost more money per person (a median of $1,500) when they interacted with scammers on the phone. And, once again, imposter scams topped the list of scams reported.

Here are some other things to know:

  • The biggest scam losses happened by bank transfer or payment. Among all payment methods, people reported losing more money through a bank transfer or payment ($2 billion), followed by cryptocurrency at $1.4 billion.
  • Investment scams led to big losses. A majority (79%) of people who reported an investment-related scam lost money, with a median loss of over $9,000. The $5.7 billion losses in this category are up about $1 billion from last year.
  • People reported losing money more often when contacted through social media. Most people (70%) reported a loss when contacted on a social media platform — and lost more money overall ($1.9 billion).
  • Job scams and fake employment agency losses jumped — a lot. Between 2020-2024, reports nearly tripled and losses grew from $90 million to $501 million.
  • Younger people lost money more often. People aged 20-29 reported losing money more often than people 70+. But when older adults lost money, they lost far more than any other age group.

The biggest takeaway? Reporting a fraud can make a difference. If you see a fraud or scam, the FTC wants to hear about it: go to ReportFraud.ftc.gov.

For more information, go to:

Top scams of 2024 | Consumer Advice

Teaching Suggestions:

  • Did you or someone you know report a scam to the FTC?  How do such reports help the FTC bring enforcement cases and educate people about scams?
  • Why do younger people lost money more often than people 70+?

Discussion Questions:

  1. Why is it important to report a fraud or scam to the FTC?
  2. How do you report a fraud or scam to the FTC?