Monthly Archives: June 2018

We teach our children and grandchildren about money by how we model certain habits such as saving, spending, and giving to others. What lessons have you taught your children and what will they say they learned from you about money? Needless to say, what we observe from our parents and grandparents will become lifelong lessons that often determine their personal financial pathway. Whether it is fear, uncertainty, frugality, or decisiveness lessons about money are far-reaching. Methods such as ‘money talks or discussions’ may be helpful. However, what we show them through our attitudes and responses to monetary issues or problems speaks volumes to our children and grandchildren. What lessons have you taught others in your family and what will they say was the biggest lesson your children learned from you? Here are important messages we teach others:

1. debt is a form of slavery
2. financially successful people live below their means
3. pay yourself first
4. forget about impressing the neighbors and friends
5. save aggressively early, you won’t have to save so much overall
6. craft clear financial goals
7. don’t believe everything you hear about money
8. set your own spending limits and stick to them

https://www.moneytalksnews.com/10-things-every-high-school-graduate-should-know-about-money/

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Consumer reports offers tips to help keep your money goals on track this month. This is a way to re-evaluate your budget and to make sure your money goals are still on track for the year. Summer is here and we spend more time outdoors and spend more money. An overall checkup is the way to go. Here are some ways to reach your financial goals:

1. cut back on dining out
2. set a spending limit for your summer vacation
3. get a free credit report
4. make sure your taxes are on track
5. schedule your annual check-up

https://www.consumerreports.org/financial-planning/june-financial-to-do-list/

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Knowing about personal finance is important and knowing financial terms is a must. Financial products are constantly changing or being redefined. As a consumer knowing financial terms means you are aware of the financial products you will be engaged with that affect you financial life and well-being. It may seem like learning a foreign language but speaking personal finance grows with practice.

Banking terms

1. compound interest
2. FICO score
3. net worth

Investing terms

1. asset allocation
2. bonds
3. capital gains
4. rebalancing
5. stocks

Real estate terms

1. amortization
2. ARM
3. Escrow
4. Fixed-rate mortgage

Career terms

1. defined benefit plans
2. defined contribution plans
3. executive compensation
4. stock options

Insurance terms

1. permanent life insurance
2. premium
3. private mortgage insurance
4. term life insurance
5. umbrella insurance

Tax terms

1. AGI
2. dependent
3. itemized deduction
4. standard deduction

https://m.huffpost.com/us/entry/6571418

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A Forbes magazine article collected financial words all parents should teach their children. The online tool teaches kids about responsibility, managing money and helping charities. Parents can begin age appropriate discussions to teach financial literacy to children as described below.

1. Savings (age 4+)
2. Budget (age 8)
3. Loan (age 8)
4. Debt (age 8)
5. Interest (age 8-10)
6. Credit card (age 8-10)
7. Taxes (age 10-12)
8. Investment (age 10-12)
9. Stock (age 12+)
10. 401k (age 14+)
11. Credit Score (age 15+)

https://www.forbes.com/sites/jenniferwoods/2015/06/08/11-financial-words-all-parents-should-teach-their-kids/amp/

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Based on a recent report by the George Washington Financial Literacy Excellence Center, a large number of Americans do not have the knowledge associated with financial decisions. Less than one in five U.S. adults demonstrated a relatively high level of personal finance knowledge.  The Global Financial Literacy Excellence Center at George Washington has positioned itself to be the world’s leading center for financial literacy research and scholarship. Individuals who have participated in a financial literacy class gain more knowledge, this denotes the importance of financial education in the classroom or in the workplace.

http://gflec.org/wp-content/uploads/2018/04/TIAA-Institute-GFLEC-2018-PFinIndex-Press-Release-FINAL.pdf?x87657

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Max Diekneite recently reported that since the introduction of the new chip technology, skimmers are on the rise mostly at ATM’s and gas station pumps. Skimmers are not always easy to detect. Be aware of the ATM that you use that is outside and isolated. To check to see if your ATM is safe, touch the skimmer to see if it is loose, discolored, or is difficult to place your card into. These tell-tale signs are reasons to use another ATM and report it immediately. Weekends and holidays are times that skimmers are most often in use. Gas pumps are frequent targets for skimmers because chip technology will not be fully implemented until 2020. In addition, anytime use use the magnetic strip on the back of your card instead of chip technology you are at risk for having your personal information stolen. Take extra step not to be a victim of skimmers.

https://amp.kcci.com/article/skimmers-are-banking-on-getting-your-credit-card-information/20921158

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As computers become harder to crack, thieves are targeting USPS mailboxes to retrieve checks written to pay bills. Once the check is retrieved, thieves write a new amount on the check and your bill never arrives to its destination. Thieves find it more difficult to steal your credit card information since the chip technology in now in use. This technique is called mail fishing and it is on the rise and is happening coast to coast in the U.S. Perhaps an alternative is to pay your bills online using an online bill payer. Most banks offer online bill pay or you can pay over the phone. Online bill pay also saves you time and money.

https://www.cnbc.com/amp/2018/05/25/as-computers-get-harder-to-crack-thieves-are-pillaging-mailboxes.html

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Angela Colley of Money Talks News reported being able to save $200 by cutting the costs of going out for lunch everyday. Let’s face it eating out can be expensive and adds up when you pick up the lunch tab. If you only spend $10 per day, $50 per week, $200 per month, $2,600 per year. But most of us spend a lot more depending where we live and how much we spend. Pack a lunch and place the money you would have used for lunch in your emergencies savings account.

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The hotel chain America’s Best Value Inn was the winner in the budget hotel category. It costs around $75 per night, which is the lowest rate among the 25 budget hotel chains in Money’s analysis. America’s Best Value Inn offers low prices without forcing guests to settle for poor service. Check it out and see for yourself.

https://www.moneytalksnews.com/this-top-rated-hotel-costs-just-75-a-night/

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