Right now, white young people have 16 times the wealth of black young people. Baby bonds, a proposal embraced by likely presidential candidate Cory Booker, would give newborns savings accounts that would be worth tens of thousands of dollars by age 18. It’s an ambitious plan – and, according to a new study, it would almost entirely close the wealth gap between black and white young people.

Booker’s plan would offer all newborns $1,000, and then add up to $2,000 annually for children in low-income households. By age 18, that could add up to serious money; Booker’s team estimates that for kids from lowest-income families, the nest egg would average about $46,000. The median black person, by contrast, had a median net worth of $2,900. That is a ratio of 15:9: White young people were nearly 16 times richer than their black counterparts.

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As federal workers and contractors miss paychecks, consumer experts are warning them to be wary of scam artists who might seek to exploit their troubling situation.

Montgomery County Office of Consumer Protection said anyone in financial distress should watch out for bogus loans, illegal debt collection practices and work-at-home schemes.

Short term, unsecured loans – sometimes called “payday loans” because the loan is due on the next payday – are illegal in Maryland.

People should be wary of lenders who charge upfront fees, have no physical address or contact the borrower by phone. Often, payday lenders aren’t interested in credit history.

There are laws that prohibit harassment calls from debt collectors. Debt collectors may not call before 8 a.m. or after 9 p.m. and may not use the phone to repeatedly annoy or harass borrowers. Debt collectors may not misrepresent their identities.

Working from home may seem like a good way to bridge the financial divide between paychecks, but  some work-at-home offers are scams. Among the phony income generating opportunities are job offers for “mystery shoppers” and “envelope stuffers.” Beware of these schemes.

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If you had credit card debt in the past, or you have an older card you don’t really use anymore, you’ve  probably read the advice that you shouldn’t actually cancel your card, rather keep it open to boost your credit score. In theory, it’s a nice plan. But if you’re not actively using your card, your issuer may just cancel it for you. Your issuer doesn’t need to give you notice that they’re canceling your card. Creditors can close an account for delinquency, inactivity or default without notice whatsoever. If they close the account for other reasons, such as an adverse credit report, they must notify the cardholder within 30 days after taking the adverse action. Here are a few reason suggestions:

• Make (at least) the minimum payment each month by the due date
• Keep tabs on your credit card score to catch any inaccurate information
• Check online forms for cards you’re interested in to see if users complain about them being cancelled frequently.

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Financial advisors bring more to the table than investment ideas. They spot hidden risks, keep emotions in check and keep your goals in focus. These goals could include retirement, saving for college, minimizing your tax burden, giving to charity, budgeting, debt reduction, or generating income. In addition to helping achieve your goals, a financial advisor should help you understand the strategies behind these investment decisions so you are better informed. Navy Federal Credit Union is an example of a financial institution that offers financial education classes and financial advising as well to both members and non-members alike. Visit www.navyfederal.org

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Do you believe you cannot save and create an emergency savings account? Consider taking on a part-time job and place all or most of your earnings in an emergency savings account. It will build slowly or as quickly as you desire to make it your focus. Encourage your family and friends to do the same. If you suddenly lost your income, how would you pay your bills? That is the purpose of an emergency savings account and it has real life consequences. Borrowing from others will only cause you to become deeper and deeper in debt. Setting up an emergency fund means you have the cash you need in case of an emergency. You will be glad you did!

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In 2019, decide to make your goal this year to save for  emergencies no matter what. A hobby can be the means of earning more to add to your emergency savings account. If you are getting a raise, place to additional amount into your savings account. Remember to always SAVE for a rainy day!

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Some of the less glaring missteps can do more harm to your budget, especially if you make them repeatedly. Following are the three costliest money mistakes you can make at a gas station.

1. Grabbing a drink
2. Paying for gas with a debit card
3. Buying premium gas

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CareerBuilder found that 78% of U.S. workers are living from paycheck to paycheck. This number may be exacerbated by the recent federal government shutdown, which has resulted in 800,000 federal employees not receiving their paychecks. CareerBuilder, a leading job site, found some startling statistics. For example:

• Nearly one in ten workers making $100,000+ live paycheck to paycheck
• More than 1 in 4 workers do not set aside any savings each month
• Nearly 3 in 4 workers say they are in debt – more than half think they will always be in debt
• More than half of minimum wage workers say they have to work more than one job to make ends meet
• 28% of workers making $50,000 – $99,000 usually or always live paycheck to paycheck
• 32% of nearly 3,500 full-time workers usually or always use a budget and 70% are in debt

1.Use a budget,

2. Begin an emergency fund,

3. Start a side hustle,

4. Consolidate credit cards and;

5. Pay down debt.

It see an immediate result, start with paying down the smallest debts first.

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The poorest Americans pay a poverty penalty as they manage their financial lives. Check-cashing establishments, payday loans, and purchasing money orders to pay bills all have fees associated with these transactions. Solutions are limited, but include online checking accounts or credit unions, where minimum account balances are not charged a fee. Individuals with the least resources also known as the ‘unbanked’, are often targeted for payday loans which charge interest rates as high as 400 perent to 1000 percent!

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The sooner you master these financial concepts, the better. A recent Forbes report said, financial literacy is crucial to being a successful adult. A mere 17 states require high school students to take a course on financial literacy. These courses have proven to have a direct impact on a student’s financial decisions. In addition, students who have some personal finance classes under their belts are much more likely to successfully save money, budget wisely, and invest smarter. Mastering these aspects won’t always be easy but, with a little bit of practice will benefit you for a lifetime. Here are the key five components to focus on:

1. Budget basics
2. Impact of interest
3. Staying savvy by saving
4. The credit-debt roller coaster
5. Identify theft issues and financial safety topics

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