Tag Archives: Financial Planning

Jan 14 2015

Raise a Glass and Toast the U.S. Economy in 2015

According to Mark Hamrick, Washington Bureau Chief, at Bankrate.com, “We go into 2015 and put the very bitter memory of 2007, 2008 behind us.”

With the national unemployment rate down to 5.8 percent, 2015 should be a good year for the economy.  According to Hamrick, “The economy has really done a great job of damage repair, with acceleration here recently with the quality of jobs being added.”  This trend will continue as employers are expected to continue adding workers in 2015 at a monthly pace of about 200,000 each month.

In addition to a lower unemployment rate, projected U.S. economic growth of nearly 3 percent over the next 12 months and stock prices near record highs should continue to fuel the nation’s economy.  On the down side, expect the Federal Reserve to raise interest rates around June 2015.  Also, there is the unknown factors of political and social unrest around the world and the typical global economic problems that could be a drag on the economy.

For more information, click here.

Teaching Suggestions

Note:  There is a 2 minute video that accompanies this article that you may to use as part of your classroom presentation.

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

  • Discuss the current state of the economy.
  • Explain why unemployment rates, interest rates, political and social unrest, and global economic problems can affect the U.S. economy.

Discussion Questions

  1. Although many economists and investors are enjoying the economic recovery over the last few years, many individuals do not share the same optimism. How do you feel about the nation’s economy?
  2. Are you optimistic about your own economic future? What specific steps can you take to improve your personal economic future?
Nov 19 2014

10 Things Rich People Know that You Don’t

“People don’t become wealthy by accident, here’s how they do it’

This article describes 10 habits that anyone can develop that will improve their financial management skills—regardless if they want to be the world’s next millionaire or if they just want to live comfortably.  For more information about each of the 10 items below, please see the original article.

  1. Start saving and investing early in life
  2. Automate savings and investments so deposits are made automatically on a regular basis
  3. Maximize contributions to retirement and investment accounts
  4. Never carry a credit card balance
  5. Live like you’re poor and adopt a “less is more” attitude
  6. Avoid the temptation to live beyond your means
  7. Be goal oriented and know what you consider to be important
  8. Get educated and learn about investments before investing your money
  9. Diversify your portfolio and avoid the temptation to put all your eggs in one basket
  10. Spend money to make money by hiring a qualified and experienced financial adviser, accountant, and, if needed, an estate planner

For more information go to http://www.marketwatch.com/story/10-habits-of-high-net-worth-women-2014-07-02?page=1

Teaching Suggestions

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

  • Stress the importance of making smart decisions as opposed to foolish decisions.
  • Tie the suggestions in this article to material in the text.

Discussion Questions

  1. Which of the ten habits described in this article can you use now to help manage your personal finances?
  2. The first suggestion, “start saving and investing early” is a basic principle we stress in the text. What are the advantages of starting early?
Oct 4 2014

Thinking Like A Rich Person

While thinking about getting rich will not get you there, certain attitudes (along with accompanying behaviors) can move you in that direction. In his book How Rich People Think, Steve Siebold makes these suggestions:

  1.  Leverage, the use of other people’s money to make money, is the foundation. Look for investment opportunities that will grow your wealth faster than saving part of your wages as an employee. Look for methods to solve problems to make money.  New products and services are created each day, and some will result in large fortunes.
  2.  Avoid the lottery since only a very, very small number of people will retire using that financial planning path.
  3. Worrying about money is a waste of time. Concentrate on problem solving to make money. Even as an employee, your creativity and innovations can result in a higher salary.
  4. Emphasize investing instead of spending. This action will result in higher wealth.
  5. Use credit to your advantage, not for things you don’t need and can’t afford.

 For additional information on thinking like a rich person go to:

http://www.foxbusiness.com/personal-finance/2014/09/12/5-ways-to-think-like-rich-person/

Teaching Suggestions

  • Have students talk to others to obtain additional suggestions for improving a person’s long-term financial security.
  • Ask students to propose a product or service that solves a problem in our society and could result in future income.

 Discussion Questions 

  1. What are common barriers that people face when taking the actions suggested above?
  2. Describe additional actions that might be taken to create long-term wealth.
  3. What are some examples of problems to be solved in our society that could be the basis for future products or services?
Apr 23 2014

The Slacker’s Guide to Saving for Retirement

Whether retirement is coming soon or feels far away, it’s something you need to think about.

This article encourages students to make retirement planning a part of their budget and one of their financial goals.   It also points out the benefits of starting early—even if students can contribute only a small amount because of other obligations that include paying off student loans and other debt obligations, paying rent, buying groceries, and establishing an emergency fund.

A very good suggestion included in this article is to start by saving just $25 from each paycheck, and then increase the amount until someone feels they have reached a limit they are comfortable with.

Other suggestions include participating in a 401(k) account at work and using bonuses and salary increases to boost the amount contributed to your retirement account.

For more information, go to

http://finance.yahoo.com/news/slackers-guide-saving-retirement-113005671.html

Teaching Suggestions

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

  • Encourage students to develop a long-term financial plan that includes retirement goals.
  • Discuss time value of money examples that show how small dollar amounts invested on a regular basis can help achieve long-term financial goals.
  • Launch a discussion about the different types of retirement accounts.

Discussion Questions

1.  Many people never begin saving or investing because there is never anything left over at the end of the month.  How can you find the money needed to begin saving and investing?

2.  Why should you begin to save for retirement now instead of waiting until later in life?