Monthly Archives: November 2018

If financial literacy is not required at most high school levels, then it’s certainly not a focus at the middle and elementary school level. Which is a shame because that is exactly when it should be taught. According to a report by the Consumer Financial Protection Bureau (CFPB), childhood financial attitudes, habits, and norms develop between 6-12 years old.

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After graduation every step our kids take from college through retirement will be directly influenced by their ability to manage their finances: student loans, credit cards, jobs, mortgages, savings, etc. Once they hit 18 years old, they are required, and able, to make decisions that could affect their life, often without the necessary financial knowledge and skills. The point being, understanding finance is a critical skill needed as an adult, yet it is not a mandatory high school course in most states.

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New Jersey requires financial literacy courses in middle school. Other states should consider doing the same. Although, the new law goes into effect September 2019. New Jersey has actually been ahead of the financial literacy curve for years now. Only five states received an “A” grade for their financial education efforts they are:

1. Alabama
2. Virginia
3. Tennessee
4. Utah
5. Missouri

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Get professional help if you need it. Finally, don’t be afraid to seek help getting your financial ducks in a row. Few of us every learn much about money management in our lives, and retirement planning is so critical that it’s worth tapping the services of a good professional. Ones designated as fee-only won’t  be looking to earn commissions from selling you products, and you can seek one at www.napfa.org Yes, you may pay several hundred dollars or more, but a good professional might save you much more than that.

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Don’t make Social Security decisions without reading up on the topic and weighing your options. It’s very much in your power to increase your Social Security benefits, if you strategize a little. You can make your checks bigger (or smaller) by starting to collect them earlier or later than your ”normal” (in the eyes of the Social Security Administration) retirement age. There are also other income-maximizing strategies to consider, especially if you’re married and coordinate with your spouse.

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Let your retirement accounts grow and remain in place until retirement. About one in three investors cashed out their 401(k) before reaching age 59 1/2, per data from Fidelity Investments. When you change jobs, instead of cashing out a 401(k) account, just roll it over into an IRA. Don’t borrow from your 401(k) plan, either, unless it’s an emergency and you really have no better option. That’s another way of stealing from your financial future.

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Teach your children about the value of a dollar and about investing. The earlier they start putting money away, the longer it will have to grow. This personal finance rule is very powerful, as it can cascade down generations of your family. It also costs you little to nothing to do, and can result in your kids being financially self-sufficient throughout their lives, not needing support from you in their adulthood.

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Maintaining a solid credit score, which is important throughout much of your life, as it can get you lower mortgage interest rates, saving you tens of thousands of dollars and can also get you approved for the best credit cards –ones with great terms, great benefits, and more. Too keep your credit score high, pay off your bills in full and on time. Avoid maxing out your credit limits on your credit cards.

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Pay close attention to fees all over your financial life — in your investment accounts, bank accounts, mutual funds, retirement accounts and so on. Spend a little time taking inventory of them and see whether you might switch to some lower-cost options.

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Invest effectively as you can. If you are socking away huge sums buy keeping them all in money market-like investments, those sums won’t grow very quickly. Don’t settle for default settings. Be sure to find out what kinds of fees you’re being charged in your 401(k), too, and give extra consideration to choices with low fees.

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