Mike Brown of LendEDU shared the results from the survey Millennials & Credit Cards Survey & Report conducted by the company. 500 millennials were asked various questions regarding credit cards. The results were remarkable and support my ideology that financial education should start in elementary school and continue every year through kid’s senior year in high school.
Trading, also known as bartering, dates back to the beginning of time. Initially, money in the form of coins and paper did not exist. When a person needed or wanted something, they would trade something they owned or a service they knew how to do to get it. Sometimes people would trade gold or silver to obtain what they needed. For example, gold or silver might have been traded for livestock. Different objects were valuable to different people.
College is a time when most kids have one foot out the door toward independence. Once they graduate college, and obtain their first job, the hope is they will move out and become financially independent. One way to help them toward that goal is to begin preparing them before they enter their college years. The following list will get you started to that end; although, the list is not exhaustive. You may discover other financial areas where they need guidance and training.
Many people find themselves spending more than they make each month. According to the Financial Industry Regulatory Authority (FINRA), 60% of Americans spend all or more than they earn. In the past few years, there was a discussion about raising the minimum from $10 to $15 an hour, a 50% increase. The argued justification for a minimum wage increase significantly higher than the rate of inflation is that companies make huge profits and can absorb the costs. The reality is quite different, however.
Would you prefer to listen to a podcast on this topic? This week's Financial Beeswax episode discusses Managing Your Parent's Finances.
This blog is a repost from March to concide with our Podcast this week. Managing your parent’s finances may not be on your radar, yet, but many people are entering this stage of life or will be soon. The task may seem overwhelming especially when you have your finances to manage. Whether you have just begun, will start soon, or may be doing so already, here are a few suggestions to make the task easier.
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It is unknown just how early the concept of allowance was started, but we do know that one advocate, Lydia Maria Child, was rather vocal on the topic in the early 1830s. She, along with other proponents, believed that allowance was a tool that taught children financial responsibility. The idea was that allowance should be used to teach children how to manage money, which included savings, but was not focused solely on savings. Allowance advocates at the time believed that teaching children to be fiscally responsible was the same as teaching them proper hygiene practices, study habits, sleeping routines, healthy eating, etc. Essentially, they believed that financial concepts and managing money were a life skill that needed to be taught to children starting at a young age.
According to the FDIC, 7.0 percent of households or 9 million households were unbanked in 2015. This can result in a tremendous cost. Unbanked individuals will spend over $40,000 in their lifetime cashing checks. There are various reasons why people are unbanked. A few reasons why there are unbanked individuals is that some choose not to use a checking or savings account, opting to use a cash base system only; others have credit too low to qualify for a checking account; and, many think they do not have enough money to open an account. Or, some are unbanked due to the nefarious actions of someone else.
Managing your parent’s finances may not be on your radar, yet, but many people are entering this stage of life or will be soon. The task may seem overwhelming especially when you have your finances to manage. Whether you have just begun, will start soon, or may be doing so already, here are a few suggestions to make the task easier.