1. The inflation rate for the past 10 years has averaged: a. less than 3% b. about 5% c. about 7% d. about 10% a) The average inflation rate for the past 10 years has been less than 3%. It was in the late 70s and early 80s that inflation was above 10%. 2….
Click here to download the Personal Financial Life Skills slides. Introduction Objectives • Discuss some of the issues that you will face as you begin your independent financial life. • Continue the conversation discussing some more general intermediate and longer term issues. • Provide tools for immediate and longer term use. o Enhance your…
Spend less than you earn. Develop a savings plan and pay yourself first. Understand the power of compounding interest. Be mindful of the future. Save and invest regularly for the short and long term. Take measures to prevent identity theft and recognize fraud. Protect yourself against large losses. Follow prudent financial practices, such as paying…
The term “probate” is associated with estate planning and describes the legal process by which a decedent’s will is processed by a special court. An executor of the estate is named to handle the decedent’s affairs and administer the estate throughout the probate process. Assets that are distributed under a will (or all assets in…
Interest rates are at historic lows. In many cases, savings account rates and short term certificates of deposit rates are below 1%. Rates for borrowing, such as for long term mortgages are also levels not seen for many decades. What these low rates mean and how to react to them are questions we are all…
Compound interest is sometimes called one of the wonders of the financial world. Very simply, compound interest just means you earn interest on your interest. The terms “compounded daily”, “compounded quarterly” or “compounded annually” simply refer to when the interest is added to the balance and begins earning more interest. The RULE OF 72 is…
Few financial issues receive more attention in the press than the Federal Reserve Board’s actions with interest rates. It seems there is always some mention of what the Fed’s chair, Janet Yellen, is saying or might say about the economy, interest rates or the markets in general. The Federal Reserve is the independent central…
Behavioral economics or understanding how consumers make financial decisions has become a very popular topic recently. Companies as varied as brokerages, auto manufacturers and fast food restaurants are all trying to better understand how their customers make buying decisions. With this understanding, they hope to be more able to design products and set pricing policies….
The financial environment can be confusing, even in the best of times. It seems even more so today in light of the financial crisis of 2008, the recession, the housing market, low interest rates, volatile markets and uncertainty over potential future government actions. Even with all the uncertainty, there are some actions that are…
It seems that changes in the financial markets happen more often, and that market swings are larger than they were a few years ago. Risk is the term often associated with changes in values of stock prices and interest rates. But, there are also other types of risk. Understanding various risks can help you…
It is easy to procrastinate when it comes to your finances. However, low interest rates, uncertain financial markets and geo-political tensions make now an ideal, if not critical, time to review your finances and your financial relationships. Your borrowing and investments should be at the top of your review list. Here some other ways to…
There are always things you want to buy in addition to your normal living expenses. It may be a new computer, a gift for a special person, some clothes, a nice vacation or something for your home or apartment. All of these things cost money and you will be faced with a decision – “should…
Summers can be relaxing with family activities, travel and vacations. While you may be looking forward to enjoying a slower pace this summer, it is not a time to neglect your finances – especially this year. Before you slip into your summer routine, here are some issues to consider: Low Interest Rates on Borrowing With…
Taking control of your financial future is a process. As with any process, it is important to monitor your progress and measure results. Doing so will help you to understand how well you are doing and to determine if the financial strategies you are using are working. A balance sheet provides a business with…
Few individuals take the time to adequately prepare a list of household items. If there is a fire, flood, or theft, having an inventory is essential in making an insurance claim.
Interest rates play an important role in our financial lives and our financial decision making. Having a better understanding of what different rates mean can help you make better decisions. Here are some definitions and explanations to help you understand what the different rates mean. Prime rate – This is the often quoted rate…
Being prepared for the unexpected is part of a sound financial plan. Insurance can help protect your home, health, auto and life. But what about having a list of important people available in case something happens to you? If you were to die or become disabled and unable to communicate, would your loved ones be…
Most financial and retirement planning efforts focus on analyzing how much money you will need at retirement or want to accumulate by a particular date. If you save enough on a regular basis and earn some level of returns, your funds will grow to a certain level over a specified period of time. This can…
It seems that the financial world has become more sensitive to international events. Terrorism, the war in the Mideast, higher energy prices and politics in general all seem to be affecting the financial markets and our economy more than ever. In these volatile times, here are some ideas to help you be prepared for whatever…
What does it mean? Over the past few years there has been a growing trend for consolidation in the financial services industry. Banks are buying other banks. Banks are buying brokerage and mutual fund companies. Banks and investment banks are merging. Economies of scale, expanded product offerings and more complete financial service to customers are…
We all tend to develop habits that provide a rhythm or structure to our daily lives. Once these habits are developed, they can be hard to break. Building good financial habits can provide a rhythm, or sense of control, for your financial life. Here are ten good financial habits that can help you build a…
Starting your financial life and making the decisions that go with your independence can be intimidating. The issues can be complex, the consequences of your decisions can be profound and it can be difficult to find someone to rely on. You can turn to your friends or your family for some help and guidance, but…
Properly established share accounts at a credit union are insured. In recent years the insurance limit was $100,000. In October 2008, the insurance limit was raised to $250,000. (These higher limits are scheduled to remain in effect until December 31, 2013.) In addition, certain retirement accounts, such as traditional and Roth IRAs, are insured up…
The Federal Deposit Insurance Corporation (FDIC) insures properly established accounts at a bank or savings and loan. In recent years the insurance limit was $100,000. In October 2008, the insurance limit was raised to $250,000. (These higher limits are scheduled to remain in effect until December 31, 2013.) In addition, “self-directed” retirement accounts, such as…
Certificates of Deposit (CDs) can be ideal vehicles for investing funds that you do not need in the near term. CDs are promissory notes issued by banks, credit unions or thrift institutions. They are time deposits usually having maturities ranging from 30 days to as long as ten years. The most popular terms are from…
Saving doesn’t have to be impossible.
Unexpected expenses or the temptations of shopping can make even the best plans unsuccessful. Yet having a financial cushion is one of the most important things you can do to feel financially secure. Learn some key ideas to help.
The changing interest rate environment has prompted many individuals to examine their borrowing and take advantage of lower rates. The affect of the current lower rates has also been felt as individuals invest in or renew CDs. Lower borrowing rates have been coupled with lower rates being paid on savings accounts and CDs. Borrowers have…
For many, using credit is a normal part of handling their finances. For others, using credit can lead to uncontrolled spending, anxiety, unpleasantness or even bankruptcy. If you want (or need) to reduce your debt, here are some ideas that may help. Strategy Develop an overall debt strategy. Borrow money for things that provide long-term…
Interest rates have become a highly visible issue with news stories about rate changes almost everyday. Much of the press coverage concerns the Federal Reserve and its chairperson, Janet Yellen. Janet Yellen became chairman when Ben Bernanke retired in early 2006. The Federal Open Market Committee (Fed) monitors the economy and makes changes to the…
One of the simplest and most effective tools you can use for almost any saving goal is an automatic savings plan. Automatic saving programs generally come in two forms – either your employer deducts a certain amount from each paycheck and deposits it into a specific account or your financial institution moves a certain amount…