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. Certificates…
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…
Managing your finances perfectly can be difficult, if not impossible. But there are some good steps to take that will save you time and help you accumulate funds for any financial objective.
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…
Keep tax returns and supporting materials for at least three years, the time the IRS has to begin an audit. However, the IRS can begin an audit within six years if there has been substantial income omitted and there is no IRS time limit for fraud. Information on investments should be kept for as long…
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…
The Internet is definitely changing the way we live. It has quickly become the choice method of communication for many. It has also become a major factor in the financial lives of millions. Using the Internet to interact with your financial institution can help simplify your financial affairs. Here are ten reasons to consider using…
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…
There are many old sayings that are especially relevant when it comes to your finances. There is no time like the present. A penny saved is a penny earned. Take care of the pennies and the dollars take care of themselves. You can never have enough time and money. But perhaps one you are not…
When you throw away a piece of paper it’s difficult to know what happens to it. Since few people burn trash anymore, it is likely that your trash passes through several stages on its way to a landfill or incinerator. Once the trash leaves your control, there is a risk that someone will find and…
Safe deposit boxes are handle tools. They provide a safe place away from your home or office to store valuables. When renting a safe deposit box, make sure you choose the right size. Many people start by renting a small box only to discover that it quickly becomes filled. You also need to determine who…
Simplify your finances with these steps to take control of your financial future. Have your paycheck or government check deposited directly into your checking account. Establish a regular savings program by having $300 (or some other amount) transferred into a money market account each month. Have your auto loan and credit card payments automatically taken…
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…
Many life events are directly related to (or cause) financial events that are faced at the same time. Preparing for the financial aspects of these events can help to reduce the stress that often accompanies major changes. Remodeling your home or making major repairs. Home equity loans have become a major source of funds used…
Taking control of your financial future is a process. And, as with any process, it is important to monitor your progress. One of the best ways for an individual to measure financial progress is to periodically prepare a personal balance sheet. The personal balance sheet worksheet shown below helps segregate investment assets and can be…
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…
Develop a financial reserve. Being prepared (with 3 to 6 month’s living expenses) can help relieve financial anxiety. Use an automatic savings plan to save a set amount each paycheck. The fund will grow and you may end up not even missing what you save each month. Get rid of high interest rate credit card…
Household budgets are usually neither fun to prepare nor to live by. However, a spending worksheet can help you identify how you are currently spending your money and identify areas where you can reduce your spending. Here is a HouseholdSpendingWorksheet that can be used as a basis for analyzing your current spending patterns and perhaps determine…
One step to ensure that no one has stolen your financial identity or established fraudulent credit in your name is to review your credit report. There are three large credit reporting agencies – Experian, TransUnion and Equifax – that receive, store and make information available on the borrowing of most consumers. The credit agencies receive…
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…
For the past several years, inflation has been under control. The overall rate of inflation, as measured by the Consumer Price Index has been averaging less than 3% in recent years. For 2014, the rate of inflation was 1.3%. However, the prices of some items, such as food and energy, increased at a much higher…
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…
Making thoughtful and informed decisions about your finances is more important than ever. Several trends are converging that demonstrate the importance of financial literacy: More financial decision-making is landing on the shoulders of consumers. Many companies have shifted their retirement plans from traditional pension plans to those requiring employees to participate, pay part of the…
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…
If time is a precious commodity for you, here are eight ideas to save time and reduce the stress and anxiety of managing your financial affairs. Enroll for direct deposit. It eliminates trips to the bank and keeps your money working longer. Sign up for overdraft protection. By linking your checking account to a line…
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…
If you are like most Americans, your mail box is filled with offers for credit cards, mortgage refinancing and home equity loans. Many of those offers stress the benefits of moving existing balances to the new lenders. While that may sound appealing, especially if the new loan offers an attractive initial interest rate, it is…
Direct deposit of your paycheck is the fastest, safest and most convenient way to get your wages into your checking or savings account. No more worrying about lost checks, waiting in line to make deposits, or delays if you are on vacation or out of town. Direct deposit puts your money to work faster too….
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…
The prospect of developing and adhering to a financial strategy can be overwhelming. However, it does not have to be so complicated. Consider taking the following three steps: Measure your current financial status. Identify your financial objectives. Identify the steps to get you there. Measuring your current financial status can be accomplished by preparing a…
Earning competitive returns on your “cash investments” should be part of your overall financial strategy. Make sure your money is working for you now…
The foundation of most people’s finances is their checking account. It is usually the account where paychecks are deposited and from which most checks are written. Spending a little time to choose the right account can make your financial life simpler, maybe save you a little money and probably help you earn a little more…
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.
A solid credit history can be one of your most useful and powerful financial assets. A record of prudent credit use and prompt payments can enable you to not only qualify for credit when you need it, but it may also enable you to get a lower interest rate on your borrowing. There are three…
As survivors of Hurricane Katrina can attest, it is essential to be prepared for the unexpected, both physically and financially. Learn how you can be prepared if disaster strikes…
Most employers offer a number of benefit options as part of their overall compensation package. Many of these options provide insurance and other benefits at much lower costs than what you would have to pay individually. Be sure to review your options and take advantage of the ones that are right for you. Retirement Plans…
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…