Archive for financial literacy

Should a finance student have to take Personal Finance?

February 26, 2013 financial literacy No comments

I was a business major and focused in finance for both my undergraduate and graduate degree, yet I never had to take Personal Finance as part of my course requirements.  I always chose to take Personal Finance as part of my elective credits.  Does this seem right?

My experience working in the financial industry and within our organization educating people in personal finance is that those who need lessons in personal finance are not likely the ones who are going to seek it?  That’s why I’m a firm believer in putting these lessons in K-12 education requirements because then students have to be exposed to the valuable life lessons.

I am excited to join the ranks of the Portland State University School of Business faculty as an Adjunct Professor this coming spring term and teach FI 218 Personal Finance.  As it stands now Personal Finance is still an elective, but this is something PSU is considering changing in the future.

If Personal Finance became a required course who do you think should be required to take it?  Finance students, business students, everyone?

In the meantime, please spread the word about the Personal Finance units being offered at PSU this term.  My course is from 2-3:50pm on Tuesday and Thursdays.  Register now!

Over 500 high school students and young adults were introduced to the basics of personal finances

February 22, 2013 financial literacy, Press Release No comments

PORTLAND, Ore., February 22, 2013—Financial Beginnings, a Portland-based nonprofit that provides free financial education programs, introduced over 500 high school students and young adults to the basics of money through two events on February 20th.

On the morning of February 20th several of Financial Beginnings’ dedicated volunteers and a group of JP Morgan Chase employees went to Southridge High School in Beaverton. The volunteers taught 90-minute sessions in 16 different classrooms covering finance topics such as banking, credit, budgeting, risk management and investing; over 400 high school seniors participated.  The classes about money were delivered by request from the students themselves and taught during their advisory period, which covers topics that help prepare them for life after high school.

In the evening, Financial Beginnings and The Oregonian hosted Unraveling the Mysteries of Your Money at Portland State University.  This panel’s topic was entitled, Positioning Yourself for Success: Financial Planning for Gen Y.  Over 100 individuals were in attendance to ask questions that were answered by a panel of financial professionals including: William J. Bernstein of Efficient Frontier Advisors, Christopher Porter of Merrill Lynch, Josh Reich of Simple.com, and Mark Strauss of Leonard Adams Insurance.

Unraveling the Mysteries of Your Money is a series of free forums open to the general public. These forums offer expert panelists who field questions and discuss finance topics that are relevant and important in today’s economy. They are organized and hosted by Financial Beginnings in partnership with The Oregonian newspaper and Brent Hunsberger, writer of the It’s Only Money column on personal finance, and who serves as the moderator of the forums. OnPoint Community Credit Union is the  title sponsor of the Unraveling the Mysteries of Your Money 2012/13 series.

Next forum:

Positioning Your Family for Success: Financial Planning for Young Families
Wednesday April 24, 2013 6:30-8pm at the Tigard Library

Panelists:
Joyce DeMonnin, Public Outreach Director at AARP
Terry A. Donahe, Certified Financial Planner at Cascade Wealth
Nelson Rutherford, CPA and CFP at Alten, Sakai & Co.
David C. Streicher, Attorney and CPA at Black Helterline LLP

For more information about the Unraveling the Mysteries of Your Money panel series, visit: http://www.FinancialBeginnings.com/Unraveling-the-Mysteries-of-Your-Money/

About Financial Beginnings

Formed in 2005 and based in Portland, OR, Financial Beginnings is a nonprofit organization that provides free financial education programs throughout the Pacific Northwest.  Financial Beginnings’ largest program educates youth and young adults in the basics of personal finance through visits to schools or community groups.  Financial Beginnings’ courses incorporate all aspects of personal finance to provide individuals the foundation needed to make informed financial decisions. More information is available at www.financialbeginnings.org.

Paying More For Using Credit?

February 7, 2013 financial literacy, Uncategorized No comments

Wouldn’t you love to be charged more for using your credit card? I didn’t think so, but that is exactly what may begin to happen. Many people are unaware of a recent settlement between credit card companies and merchants that gives merchants and retailers the option to pass on credit processing costs to customers. It is common knowledge that merchants pay processing fees (a percentage of the total purchase) to credit card companies. Consumers have never had to worry about these fees because the cost was already built into the price of the product. Now with the new agreement these costs can be passed to the consumer by way of a 1.5%-4% transaction charge.

To most consumers this appears to be a ridiculous and unnecessary agreement designed to punish consumers. However, many analysts see this as a good thing for consumer. They say this may lower prices or retailers may give discounts for paying in cash. A number of large retailers, including Walmart and JCPenny, have already said they will not choose to pass these charges on and will continue to keep prices low for consumers. The most likely place you will see these charges implemented is in small Mom-and-Pop shops and other small specialty retailers. These retailers do not normally generate the revenues necessary to pay the processing fees and implement credit card equipment. Any retailer that chooses to implement these charges will have to disclose this information prior to taking payment on a credit card.

Will this become a nationwide epidemic costing consumers millions of dollars a year? Most likely not, but shop smart and always be aware of what you are paying for. Your money is valuable, precious, and most importantly it’s yours. Know where it is going and why.

The Lottery Account

December 17, 2012 financial literacy, Savings, Uncategorized No comments

For those of you who may not be aware, recently there was a record-breaking lottery jackpot that caused frenzy across the country. People all across America were rushing to their local convenient stores buying handfuls of lottery tickets, with the dream of becoming an overnight multi-millionaire.  However, the fleeing dreams of many millions of people were quickly smashed as the numbers were read.

Speaking with people during the week of lottery-mania, I realized how many people saw this event not as a one time fun event, but a weekly occurrence. I never realized how many people played the lottery weekly, spending anywhere from $2 up to $100, or even more, a week. I thought this was foolish. I admit I indulge in the gamble of the lottery on occasion, but I never play weekly, and I certainly never spend $100 I learned that many people view the lottery not as a game but as a fanciful retirement account. Some people feel they have more control over their money by spending it how they want rather than allowing it to sit in some retirement account managed by a stranger. In reality you may be more in control of your dollars, but the likelihood of that control transforming into any type of return is extremely unlikely.

Instead of playing the lottery and hoping I would be able to retire early, I started my retirement savings early. I began working part time at a local electronics retailer while going to college, and was surprised to learn they offered a 401K with a generous match. I quickly enrolled, knowing I would have less in my paycheck but also knowing the small amount being removed would not make or break my monthly income. I worked at that job for 3 years and watched my 401K grow along the way. After a while you do not even remember it is being taken from your check, but the nice thing is whether you remember or not it still happens. Saving is hard for some people, so having an automatic deduction is the perfect option. I continue to add to my retirement savings and have opened multiple Individual Retirement Accounts (IRA) that I add to monthly through an automatic deduction from my checking account.

I still play and check my numbers on occasion, but I always know even if my numbers don’t match, I will still be ok when I retire.

“I’m giving my two week notice”

December 9, 2012 financial literacy, managing a nonprofit, Uncategorized No comments

Every employer dreads the phrase “I’m giving you two weeks notice”. It means that change is afloat the the hunt for a new employee must begin.

Last week I heard the dreaded words above and had to immediately go into overdrive seeking a replacement. There is so much that must be done before posting for a job. I had to review our current organizational needs and determine if the position and job description of the person I was replacing was going to meet our current organizational need. From there I had to then make the changes to the position and job description and figure out how I would be be able to identify good candidates.

Financial Beginnings is seeking a full-time Program Manager to join our team. I have been posting the position on all applicable job boards (within budget) in hopes of notifying qualified candidates.

Still, I think where I am going to find the best candidates is within my networks. We have over 500 volunteers in our system and many more that are on on our mailing list. These people are already passionate about financial education and Financial Beginnings. Who better to promote the new position?

Reading Brent Hunsberger’s article How to brush up on your networking and job search during the holidays this morning, I was thinking this came at the perfect time! I posted a comment on his blog too about our open position.

Brent’s article talks about how it’s worth job seekers’ time to network because this is likely how they are going to find their next job. I’m taking the same strategy as an employer. At every meeting I attended this week I mentioned the open position and immediately was getting words of excitement from people about possible candidates they were going to tell.

And this is just one more attempt to delve into my network for qualified candidates. Please spread the word about our open position!

Job Description

Tis’ the weekend to shop

November 24, 2012 financial literacy, Uncategorized No comments

We are all familiar with Black Friday and many of us partake in the events of the day by waking up at the crack of dawn, waiting in long lines for good deals and trying to get a jump on the holiday shopping. I find it funny that the merchant term “black friday”, which derived from being the day of the year when retailers’ net income goes from red to black, has been adopted by consumers. If you think about it the term itself seems very morbid.

A new initiative started by American Express in 2010 is Small Business Saturday. Granted the term is not as creative as Black Friday, it is a great way to contribute to our local small businesses and economy. I arrived home late last night and plan to take part in Small Business Saturday by doing some Christmas shopping at Multnomah Village in southwest Portland.

And don’t forget to round out the few days of spending by taking part in Cyber Monday. Unless of course you work for me!

Is coupon clipping worth the effort?

October 28, 2012 financial literacy, Uncategorized No comments

Most Sunday mornings you can find me on the couch with my coffee and newspaper. Advertisers will be happy to know that the first thing I do is look at the advertisements before moving onto articles that have caught my interest. Part of the process of my looking through the advertisements is my clipping coupons (or in my case ripping since I’m too lazy to go get a pair of scissors).

I’ve always felt that clipping coupons was well worth the effort. On average I would image that off of a normal grocery bill I am able to save $5-10 from my coupons. For larger purchases I’ve saved hundreds by using coupons. For a steam mop I was able to save $20 by using a coupon or better yet when I bought my husband a fancy espresso maker for christmas one year I was able to save $120 by using a coupon.

Still, recently the coupon process has left me more frustrated than satisfied. I am finding the restrictions surrounding the coupons to be frustrating. It seems that though I can have several coupons from a retailer, when it comes time to check out and I provide them to the retailer it seems that my purchase does not qualify for one reason or another.

One example of this is Babies R Us. I have a seven month old and am there often purchasing items for the baby. Each time I leave the check out I am given a long strip of coupons. When I go back the next time (usually within 2-3 weeks) I pull out my huge strip of coupons and the “rewards” mailer they have sent me to find more times than not none of the coupons I have qualify. Seems like a huge waste of paper.

On the other hand one retailer I’ve found to be excellent with coupon redemption is Bed, Bath & Beyond. Most of their coupons are for 20% off an item. The nice thing is they let you use more than one (usually up to five) and they don’t mind if they coupons are expired. The examples above with the purchase of my steam mop or the coffee maker were both from Bed, Bath & Beyond.

Still, lately I’m finding on my regular shopping trips I’m not bothering to weed through the coupon pocket of my purse because it’s yielding me less and less savings and more and more frustration.

What is your coupon experience? Is it worth the time and effort?

Creating financially literate youth is a community responsibility

September 14, 2012 financial literacy, Uncategorized No comments

After Brent Hunsberger article, Oregon’s strong K-12 financial literacy standards still aren’t ideal,  last week I thought I’d expand upon the need for the entire community to embrace the need to raise money smart children.

When I was young, money was tight in our household, and my parents taught me the importance of budgeting. However, there were many areas regarding financial education in which my parents were not knowledgeable or comfortable, which led to little discussion on topics such as investing or insurance. Research confirms that the interactions I had with my family regarding personal finances were similar to many others. In a 2011 survey by T. Rowe Price entitled, “Parents, Kids & Money,” only 28 percent of parents said they felt “very prepared” to teach their children about basic finances.

My parents were not my only source for finance education. When I attended high school, personal finance was a mandatory half-credit course, but this requirement was removed in 1997. Since then, it has been difficult to track if and how personal finance is included in school curriculum and instruction. Not surprisingly, a 2010 survey by Pollinate entitled, “Teacher Attitudes and Beliefs About Teaching Financial Literacy,” found that 42 percent of teachers indicated they were “not at all confident” or only “somewhat confident” in their understanding of personal finance concepts.

The recent adoption of new Social Science Content Standards in Oregon is a step in the right direction for Oregon youth getting more instruction in personal finance. The new standards, coming this school year, include financial literacy as a standalone requirement in high school and earlier introduction to financial literacy concepts in K-8.

Still, even with improvements to the financial literacy standards, there is a gap that desperately needs to be filled. In short, young people still need personal finance education to become successful adults and knowledgeable consumers. If you’re interested in exploring strategies for securing your financial future, including how to move your 401k to gold without penalty, it should not be the sole responsibility of parents or the education system to ensure we bring up financially literate consumers. It is truly a community responsibility, and as the recent economic downturn has demonstrated, personal financial mismanagement can quickly become a community burden.

Personal finance is a constantly evolving subject. Think back to how the financial industry has changed from more than 20 years ago – when cash, and not credit, was the norm, and interest-only mortgages were unheard of. The rapidly evolving industry, coupled with the lack of a required in-school finance courses, is precisely why Portland-based Financial Beginnings was created. This organization helps parents and teachers keep up with the bevy of regulation changes and trends in the financial market.

Financial Beginnings provides free financial education to children and young adults, with local professionals from the financial services industry teaching everything from basic budgeting to investing. This partnership not only benefits the students but also the participating banks, credit unions and local businesses. Supporting such financial literacy nonprofits allows these organizations to create more informed future customers and members, and fosters a positive image for companies serving our community.

As our schools continue to face more budget cuts, and the economic climate keeps the need for financial literacy at the forefront, the demand for business involvement and support grows. Financial Beginnings is fortunate to have strong support from local businesses, banks, credit unions, CPA firms and financial advisors to meet this demand. These groups provide not just financial support but volunteers who teach our curriculum as well. These local volunteers and supporters champion the financial literacy effort and help fill this education gap.

One of our most successful models – and a model we hope to replicate – is our partnership with Bank of America. For the second year in a row, Bank of America is Financial Beginnings’ Partner of the Year because of the incredible employee volunteer model they have built with our organization – training more than 100 Bank employees to teach in community schools. In the past year, Bank of America employees served 1,546 young people at 23 schools and community groups in Portland by visiting classrooms and teaching students about the importance of financial literacy. Financial Beginnings would like to replicate this model with other companies.

Financial Beginnings is always looking for classroom volunteers and corporate partners. Volunteer training is free and an ideal way for businesses to connect with our schools and young people to ensure a thriving future local economy.

For more details on Financial Beginnings volunteer training programs or to support its programming efforts, visit www.financialbeginnings.org.

New Program and Volunteer Coordinator for Financial Beginnings and Operation HOPE

March 28, 2012 financial literacy, Uncategorized No comments

My name is Lauren McCammon and I am the new Program and Volunteer Coordinator for Financial Beginnings and Operation HOPE.  It is with great pleasure that I am able to help educate the youth regarding the importance of managing their money, so that they can make informed financial decisions. So often we find ourselves wondering why we were never able to save as much as we expected, why we spent more than we budgeted for, and why finances seem much more difficult than we ever imagined. My mission is to stop this vicious circle; to empower the youth into realizing their full financial potential and to help them not make the same mistakes that many others did before them. Education is power and it is time we put that power to good use.

I have been working with the youth for quite some time now. I worked as a gymnastics instructor and office manager at Naydenov Gymnastics for over five years, where I managed all aspects of the office as well as the activities in the gym.  I have been a nanny for over nine years, six years with the family that I currently still work with and I am also a personal assistant for that family.  I am a fitness model for various sports apparel companies, as well.  I also happen to be a student who is working to finish a degree in Business Administration with a major in Finance, from Washington State University Vancouver, and my expected graduation date is May of 2012.

My diverse background has really helped to prepare me to fulfill my mission of educating the youth regarding the importance of managing their money. Financial freedom is possible and through Financial Beginnings and Operation HOPE I know that we can empower, motivated, educate, and inspire others into creating a successful financial future.

Centennial FBLA Students teaching Financial Literacy to others within their community

March 21, 2012 financial literacy, Press Release, Uncategorized No comments

NEWS RELEASE

In January, the Centennial FBLA chapter decided to partner with Financial Beginnings/Operation HOPE a local non-profit organization that strives to expand economic education and empowerment through educational programs that incorporate all aspects of personal finance. Through these educational programs, the organizations wish to spread financial literacy in hopes of creating more financially responsible individuals. Several FBLA members participated in a cooperate training to become official Financial Beginning/Operation HOPE volunteers.
Over the past several weeks, Centennial High School FBLA members have been educating elementary and middle students within the Centennial district on the subject of financial literacy. During the presentation approximately 200 students were taught; budgeting, investing, credit, and banking. Teachers responded with positive comments about the enthusiasm of the high school educators, “They were extremely professional, on-time and very eager to teach!” said middle school teacher Shane Fisher. “I really liked the teachers because there were so many things I could relate to, it made it all more enjoyable” explained a local middle school student. Through the various activities implemented, the students were very eager to learn about creating a budget, the dangers of a credit card, and even simple investing. Students were ecstatic at the opportunity and eagerly participated in all the activities. “The presentations were very educational and students seemed to love the activities they implemented, an overall very enjoyable experience” said an enlightened Eric Perkins, elementary school teacher. “I’m extremely proud of the members, not only have they learned financial literacy concepts, they have learned teamwork, organization, scheduling, and time management…not to mention I think a few of them might have caught the teaching bug,” said Adriann Hardin FBLA adviser.

In addition to educating elementary and middle school students, FBLA members have also arranged for the Financial Beginnings/Operation HOPE business volunteers to come in and speak to the math, economics, and business classes at the high school. Overall it has been an amazing partnership for the school district and the non-profit organization. If you have any additional questions, please contact Adriann Hardin at 503.762.6180 or via email at: adriann_hardin@centennial.k12.or.us

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