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.

Podio

January 15, 2013 managing a nonprofit, Uncategorized No comments

I am always looking for ways to better manage all of the projects and tasks I have. I’ve tried everything from filling a notebook I carried everywhere with dog ears and post its to managing it all on Outlook. Still, when it came to working with others on projects or keeping track of my employees’ projects and tasks I didn’t have anything that worked.

My new best friend is Podio! Podio is an online application that allows for task management, project collaboration and database management. I’m sure my team will tell you they are sick of my singing Podio so much praise, but finding this software could not have come at a better time.

The aspects that I appreciate the most include:
• Tracking tasks I assign to others
• Collaborating with those within and outside of my organization
• Integration with Evernote and Box
• Being able to very easily build applications (I am not a big techie so this is huge)
• Easy conversing (similar to how you use facebook)

You can use the basic version for free. If someone who would like to use it as a company intranet the full version is $8 per month per employee.

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

How savvy of a shopper are you?

December 1, 2012 Uncategorized No comments

With only 24 days left until Christmas it still seems as if companies are fighting harder than ever for our holiday business. Macy’s is sending out extra coupons, Kohl’s is offering 25% off everything in the store; even small second-hand stores are holding “special” promotional offers.  But are you savvy in taking advantage of their deals or are you really paying close to full price on these items?

This year I participated in Black Thursday for the first time.  Like a vicious hungry tiger pounces on an injured gazelle, I can regretfully say that I saw consumers snagging merchandise up like it was prey.  Deals seemed too good to be true that there were multiple individuals with shopping carts full to the rim. Three plasma televisions, twelve packs of socks, sixteen flannel shirts, two Dyson vacuums and plenty of other small items. Extreme shock made me put down my basket to investigate whether or not these deals were as good as they seemed. I rushed to a random display of unnecessary knick knacks (with rush and excitement) and sure enough I had followers. All I had to do was display the slightest bit of enthusiasm and before I knew it every item was in another person’s cart.

Just because there was a glittery sale price, another person wanted it and it was Black Thursday, for some reason it justified purchasing everything in sight. Be wary though, huge discounts can often be a result of companies marking up products, above their normal sale price, and then slashing the price for the holiday season. So even though you think you are getting 60% off that special item, because of high markups you may be paying close to full price and not even know it.

When venturing out these next 24 days I caution to you look at price tags and realistically ask yourself if that item is worth the price after the discount.

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!

Saving Money on School Books For Next Semester

November 6, 2012 Uncategorized One comment

College is extremely expensive, and it is getting more expensive every semester. Students forget to take into account the costs of college that go beyond tuition and room and board.  Many enter college unaware of the exorbitantly high price of textbooks. The cost of textbooks can easily surpass $200, and many courses require more than one per semester (or quarter). During my first semester I spent over $600 on textbooks for 5 courses, of which only 1 was also required for the following semester. The college bookstore told me I shouldn’t worry too much and I could trade them in at the end of the semester.  I took their advice and turned in my $100+ books for no more than $40. I was frustrated, to say the least.

In recent years many other options have become popular including buying used and renting textbooks. At the beginning of my second semester my friend suggested buying books on eBay for a quarter of the price. After looking into it I realized I could save an enormous amount of money and get the same book. I also realized I could then sell the books back to the school or online at the end of the semester for what I paid, or sometimes even more. Many students are also opting to rent their texts books from various text rental websites. This is a very convenient option. There is no need to decide what to do with the books when you are done, just simply slap on a prepaid mail label and mail the book back. Prices are about comparable to buying used but the condition is usually better and shipping is usually paid both ways.

However you decide to buy books next semester, remember there are options to save you money and not add as much to the, already, massive college cost.

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?

New Program Coordinator for Financial Beginnings

October 17, 2012 Uncategorized No comments

My name is Marcus Lathan and I am the new Program Coordinator here at Financial Beginnings. Everyone needs money and everyone uses money, but no one is educated on how to manage their money. Financial Beginnings is a great organization that does precisely that. Now, more than ever, our youth need to understand how to manage their money. I was fortunate enough to have completed college debt free with the help of my family, scholarships and a part-time job. For the majority of college graduates this is not the case. School loan debt now exceeds credit card debt in the nation, and society is beginning to think these debts are just a normal part of life. Education on the correct management of money is the key that opens the door to a  successful and debt-free life.

For the past three years I have been working retail at a Portland Best Buy store and worked several various retail and construction jobs prior to that. I am also a model and work on various television shows, fashion events, as well as video and photo shoots in the Portland area. In my spare time I play basketball and soccer in recreational leagues in Portland and Vancouver. This past spring I received my B.A. in Finance from Washington State University as well as a Professional Sales Certificate. I look forward to helping Financial Beginnings continue to thrive and educate.

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.

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