Financial Literacy – For Kids and Adults

Despite the current foreclosure crisis that seems to be the topic of virtually every newspaper these days, the need for personal financial education (financial literacy) is not a new concept. Indeed, the fact that the U.S. savings rate is at an all-time low, while the personal debt rate is at an all-time high, demonstrates just how important financial education is to our future (and the future of our kids). A large number of parents (myself included) are hoping to be able to either leave their children with a legacy (a small financial cushion at a minimum), or to at least be able to provide them with the means with which they can obtain the tools to help them along in life (money for college, education or business funding). But the ultra-consumptive mindset of many in my generation has led to bad financial decisions in which there was often times no thought of a “rainy day” much less tomorrow.

For many, it is now raining, and raining hard. That’s not really the unfortunate part… because rainy days are always ahead of us. What is unfortunate is that the same reason that some people are in the crisis that they are finding themselves in is the same one that got them there in the first place.

It seems that no one wants to talk about financial literacy. The word literacy seems to imply “illiterate” for folks, bringing forth images of being somehow “less-than”. You can see it even within the financial literacy movement itself, where folks are changing the name to “personal financial education” in order to not offend (and in my opinion, to sugar-coat so that people will be more receptive to hearing the message of financial education).

While my generation is busy trying to figure out what is the politically-correct way to phrase the fact that they didn’t learn as much as they should have about the financial sector of their lives, the next generation is set and poised to make the same mistakes or worse. Let me be the adult that my son needs to see and hear. Let me raise my hand, stand up, and say that I made some horrible financial mistakes in my younger years, I wasn’t taught anything about finances by my teachers in school, and my parents, though they told me that I should “save”, didn’t tell me why I may need to (and therefore I didn’t). I left school and home with all of the A’s and B’s in math, reading, science, etc., and then turned around and failed miserably in my personal financial life. I’ve been spending the better part of the last 13 years correcting those mistakes, turning my financial life around, and learning and living a healthier financial lifestyle.

While I don’t place blame on my parents for my lack of financial education (challenging to teach what you don’t know yourself), they did play their part in a story that is probably all too familiar to many people, regardless of which generation they belong. It’s the silent movie everyone can clearly see that financial transactions are occurring, but no one opens their mouth to talk about them, what they mean, or about their significance. This article isn’t designed to address the money messages that I observed, made assumptions about, and carried forward into my own adult life. That’s a whole other topic entirely. What this article is designed to do is to encourage everyone to start talking about personal financial education or financial literacy (your choice, same topic), start asking questions about things that you don’t understand, start seeking the assistance and answers to issues that are even remotely applicable to your life, and to then be a source of information and inspiration for someone else that you know or who is watching your financial moves with interest (your kids perhaps).

Don’t be na├»ve in thinking that you NOT TELLING your kids about personal finance means that you’re not teaching them anything. Your kids are learning from you, from your friends and theirs, and from magazines, tv shows, movies, sports stars and celebrities. Have you taken a look lately and really seen what kind of financial education they are getting from you and others? The saying “it’s never too late” applies to everyone who could use a good tune-up (or even a complete overhaul) of their financial know-how. “It’s never too early” applies to the children, tweens, and teenagers in your life. Do something now to help yourself, and do something now to help someone else. Your financial future depends on it.

Got Financial Intelligence?

For years, I have heard people say, “money is the root of all evil.” Then I learned that the actual biblical quote made more sense – “for the love of money is the root of all evil.” And it is that same love of money that is now part of the root of our current “evil economic crisis.”

Though most of the blame for our current economic condition has been placed on greedy Wall Street investment banks for the housing market collapse, and on Congress and President Bush for the overwhelming increase in food and gas prices, what we must understand is that a lack of financial intelligence on behalf of American citizens is also partly responsible for the country’s current financial and economic crises.

According to a recent U.S. Department of Housing and Urban Development survey, nearly 12% of sub-prime borrowers stated they were not familiar with basic financial terms such as interest rates, principal, and down payment, and roughly 33% were not aware of the different types of mortgages available. How well do you know these things? Ask yourself, are you financially educated, financially literate, or financially intelligent? It’s not a trick question. Please allow me to school you on the differences between the three.

Financially Educated: A person who has learned and knows basic business ideas and financial facts. Financial education is simply obtaining business and financial knowledge. A person can read and memorize the words in a personal finance textbook and declare that they are financially educated. If you can define and explain how a credit card, mortgage, and bank works, then you can say you are financially educated.

Financially Literate: A person who is financially educated, but also knows how to read, write, and speak about basic business ideas and financial documents. If you can read and understand loan agreements, bank and credit card statements, and can successfully explain and calculate compound interest, congratulations, you are financially literate.

Financially Intelligent: A person who is financially educated and literate, but also understands how to use financial knowledge to make money, save money, and create wealth. If you know and understand how to borrow money from a credit card at 5% interest and re-loan that same money to someone charging 12% interest, you are financially intelligent.

If you know and understand how to transfer debt that is being charged at 12% interest to a 0% interest credit card and repeat the process until you have paid zero interest on your debt, then it is my honor again to award you the financially intelligent distinction.

How do you become financially intelligent? You must read business articles, study economic and financial concepts, ask yourself questions about how you can profit from that information, and most importantly practice your financial lessons. You can spend an entire day reading a recipe on preparing a particular meal, but until you actually go into the kitchen and start working, you will not learn how to mix and measure ingredients, properly use cooking utensils, and ultimately prepare a delicious meal.

This same advice is true for business and money. Until you start creating financial spreadsheets, calculating compound interest and return on investment (ROI), and actually start a side business, you will continue to be what I call an “academic entrepreneur.”

It’s no secret, the majority of Americans live paycheck to paycheck, carry approximately $9,000 in credit card debt and do not know the current interest rate on their credit cards or other debt such as that for student loans. If you are “financially fooled” once, then shame on the person or financial institution responsible for the fooling. If you are “financially fooled” twice, then shame on you for not being, or attempting to become, financially intelligent!

How to Get Certified Financial Planning Certificate

Globalization has changed the total scenario, now everyone is concerned about the financial resource settlement and savings. In day to day life we deal with lots of cost effective issues that imbalance the monthly budget. Get rid of this stress. Best possible source to sort this issue is to get a certified planner. The demand of Certified financial advisor is at boom. Everyone wants to allocate their assets and financial resources in best possible utilization. Only expert guidance is preferred.

Degree of certified financial advisoring is a tough nut to crack, yet it opens all the doors for success and capability evaluation. To seek certificate of CFP is served under many licensed course providers yet need to take care of certain things before proceeding with any course provider. The list discussed under entitles the source selection process as well as benefits annexed with CFP certificate:

Degree must be enrolled in an accredited university; an “accredited university” is one that has been accredited by an accrediting agency recognized by the Ministry of Education also said as Licensing, check the course material with affiliated on-line subscription, compare the education cost, revive the education style and after analyzing and comparing on all basis select the best suitable source and proceed the CFP certification.

Instant credibility and respect of clients, employers and colleagues is offered. Serves the same competitive advantage over other financial planners impressive. In-depth analysis of the skills and knowledge of complex financial planning. Belonging to a global network of professionals in the certified financial advisor degree. These are all united to become certified financial advisor heavenly facts.
Certified financial planners have different roles, not only basic financial planning also includes planning for the management of employee benefits, pensions, property and tax planning, insurance planning and risk. Everything strengthen the immense scope for growth and huge profits.

Educating family physicians can take your career to great heights. The correct choice is the key to some points to remember evaluation help in the selection and certification of their education financial planner.

The benefits of a certified financial planner depends on many factors such as education, skills, certifications, customers, the stock market and other investment vehicles, experience and desire.

Anyone can sell insurance and annuities, stocks, bonds and mutual funds – but only a global financial planner can add value to their financial security through various tactics.

A better understanding of the formation of CFP can make you understand the logic and the importance of proceeding in this way. Enter all the necessary information through online access to several sites and with long experience available 24 / 7 for the address.

The designation of Certified Financial Planner certification is valuable for financial planners conferred by the Certified Financial Planner Board of Standards in the U.S. and recognized globally with other organizations affiliated with world wide financial planning matching with company’s expectation.

Proceeding ahead to get the certificate of CFP taking care of all above points and making a better utilization in career prospects can lead you at top. Acquire best of CFP certificate education and excel with bright progressive future.

Stimulus and Educational Financial Aid For College

There are many options that you can choose from when you choose to go to college. You can take out school loans. You can also apply for work study programs. There are also many scholarship programs that are available for people that are in need. Here are a few ways that you can apply for stimulus and educational financial aid for college today.

Many people are not independently wealthy. Many that are independently wealthy are not really motivated to go to school. If it is a family tradition to become a lawyer or a doctor, typically this is more of the motivation and these types of families tend to have more money to send their children to the better schools.

However, if you do want to go to college to change your current financial situation, there is a great deal of stimulus package money available for those that want to go back to college. Financial aid can be easy to come by but you must have a definite direction and know that going to college is the right choice for you.

So whether you have been out of school for a long time, or if this is going to be your first year, dealing with the stress of taking classes should not be compounded with wondering if you’re going to be able to pay for school or not. Likewise you should not have to worry about school loans that need to be paid a few months after your degree has been achieved.

The new stimulus package provides grants for those that are in need of financial aid. They are looking for people that want to go to a university and attend college whether physically or online over the Internet. You can also choose to do work study programs in your local area if you are near your college campus. I know of many people that attend classes over the web and yet also go to school to earn a little extra money through these programs.

The early bird gets the worm is a phrase that has been around for many years. It means that, in regard to her college education, if you apply for financial aid or grants early enough in the year prior to your fall classes, you will more than likely receive a large portion of the grant money that is available to pay for your tuition, books, and other supplies that you will need to earn your degree.

Stimulus and financial aid for college is not that hard to get. You just need to have already chosen to college you wish to go to, applied to the FAFSA, have all of your financial paperwork in order and ready so that when you begin filling out the paperwork for scholarships or student loans, you can get it done quickly and efficiently so that there are no holdups to receive your college financing.