The Case for Personal Financial Education in Schools: Conclusion

Millennials are a high-impact generation poised to shape the national and global economy in new and significant ways—and their economic influence is expected to grow over the next decade. But the platform from which they will wield this influence is a troubling one. Millennials carry too much debt. They engage in expensive credit card behaviors, stand at the forefront of the growth of student loan debt, and many are already raiding their retirement accounts. Millennials’ financial practices are of concern because of the potential for these behaviors to become firmly established. Indeed, the research has documented that the gap between the amount of financial responsibility given to young Ame

The Case for Personal Financial Education in Schools: Part 7

Millennials Don’t Seek Professional Financial Help Although the majority of Millennials have inadequate financial knowledge, they are not consulting financial professionals to compensate for that deficit. Case in point: • Only 27% had sought professional financial advice on savings and investments within the past five years • Only 12% had sought professional advice on debt management. If Millennials don’t ask for help, their financial problems could extend or worsen in the future.

DID YOU KNOW??? Student Loan Forgiveness Programs

Did you know that there are five different ways to qualify for student loan forgiveness? As long as you make your required payments on time, your credit score will not be hurt by entering into one of these plans. Each program has its own rules and regulations, so we've provided a quick list for you to start your investigation. If you are a teacher or education professional who has taught for five consecutive years in a high need fields, or a school that serves low-income students you may qualify for a Student Loan Forgiveness Program for Teachers. If you work full time for a government office (not a political party or lobbyist), OR for a certified nonprofit organization, OR for a for-profit

BUSINESS CREDIT 101: Establishing and Maintaining Your Business Credit

HOW DO I ESTABLISH BUSINESS CREDIT WHEN I AM STARTING OUT? Getting your business credit profile started can be tricky when you are just starting out. But there are some ways you can start. Completing the above steps is the first step since it establishes your business as a separate and legal entity. If you have any money in savings, use it as collateral for a small business loan from your bank. Be sure to ask that the bank report your payments to the business credit reporting companies. Transfer all your regular bills for your business (like water, phone, electricity, or internet) into your business’ name. Get a business credit card. Just make sure it is one that is not tied to your personal

BUSINESS CREDIT 101: Separation of Business and Personal Credit

KEEPING BUSINESS AND PERSONAL FINANCES SEPARATE IS CRITICAL If there are blurry lines between your business and personal finances, you risk being held personally responsible for business debts. To best protect your personal assets, follow these steps: File your business as an LLC or Corporation – this creates a legal situation called the “corporate veil” that protects your personal assets from business defaults. But if you do not keep your business and personal accounts separate, you can “pierce” your corporate veil and be held personally liable anyway. Make sure everyone you do business with knows you are an established business entity by putting LLC or Inc. on all your business materials.

MONEY HACK: Pay those debts off FAST!

Debt accelerator. Debt snowball. Debt avalanche. Whatever you want to call it… it works! If you seriously want to pay off debt fast, building up a better credit score, and starting a brighter financial future, here’s what you need to do: Step 1: Gather all your most recent bills from your credit cards, car loans, student loans, and anything else you are paying interest and finance charges on and want to pay off. The best way to do this is grab them as soon as they come in the mail and put them in a brightly colored envelope you clip to your fridge with a big magnet. Step 2: Make a list of all your debts in order of how much you owe, lowest first. Once your stack is complete, write down the


In most situations, federal benefits, like social security and disability income, are exempt from garnishment actions for debts you owe. Some protections are automatic, but some aren’t. If you receive federal benefits and are facing a garnishment action, here are the important facts you need to know: Federal Benefits Exempt from Garnishment include: Social Security benefits Supplemental Security Income (SSI) benefits Veteran’s benefits Civil service and federal retirement and disability benefits Servicemember pay Military annuities and survivor benefits Federal student aid Railroad retirement benefits If the courts send your bank an order for garnishment, federal benefits are automat


HOW BUSINESS CREDIT WORKS Your personal credit score is based on how much money you owe, how many lenders you owe it to, and how well you pay those debts. For your business, these things matter, too. Except, they are based only on what your business pays to and borrows from suppliers and vendors. But there’s a lot more that goes into calculating a business credit score, like the number of years you’ve been in business, how many employees you have, your yearly revenues, and the industry you’re in. Your business’ credit score will be negatively affected if your business has defaulted on any lines of credit, lost a lawsuit over a debt, has liens on any business-owned property, or has filed bank

The Case for Personal Financial Education in Schools: Part 7

Millennials deal with short-term sources of debt including Alternative Financial Services (AFS), such as payday loans and pawnshops. In the past five years, a large number used AFS: • 50% with a high school degree or less • 28% with a college degree • 39% who have a bank account • 35% of credit-card users AFS is widespread among this generation, common even for households generally referred to as “middle-class.”

The Case for Personal Financial Education in Schools: Part 6

Debt Crosses Economic and Educational Lines and millennials are over-indebted regardless of education levels. • 2/3 of all Millennials, and 80% of collegeeducated Millennials, carry at least one source of outstanding long-term debt • 31% of all Millennials, and 44% of college educated Millennials, carry more than one source of outstanding long-term debt Liabilities are particularly common among Millennials who are college-educated. A college degree may no longer be a guarantee of a better financial future.

The Case for Personal Financial Education in Schools: Part 5

Millennials are at the start of their work lives, yet they are already tapping into their retirement accounts - if they've even started one: • Only 36% have a retirement account • 17% with an account took a loan in the past 12 months • 14% took a hardship withdrawal in the past 12 months Millennials are sacrificing their retirement accounts, and this trend is especially worrying because it can compromise long term financial security.

3 ?'s Every Home Buyer Should Ask Themselves

If you are debating purchasing a home right now, you are probably getting a lot of advice. Though your friends and family will have your best interest at heart, they may not be fully aware of your needs and what is currently happening in the real estate market. Answering the following 3 questions will help you determine if now is actually a good time for you to buy in today's market. 1. Why am I buying a home in the first place? This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money. For example, a recent survey by Braun showed that over 75% of parents say "

The Case for Personal Financial Education in Schools: Part 4

Millennials face a spectrum of financial challenges and fear that they have little maneuvering room in case of an emergency. • Nearly 50% don’t believe they could come up with $2,000 if an unexpected need arose within the next month • Nearly 30% are overdrawing on their checking accounts • 53% carried over a credit card balance in the last 12 months Millennials, in general, are financially fragile, meaning that they do not possess the tools to cope with even midsize financial challenges.

The Case for Personal Financial Education in Schools: Part 3

Millennials Worry About Student Loans. Student debt is common across demographic characteristics. Millennials are heavily leveraged on their educational investment, and many student-loan borrowers are troubled by this debt. • 54% are concerned about their ability to repay their student loan debt • 34% with annual household incomes above $75,000 are concerned they may not be able to repay their student loans Debt obligations weigh on Millennials’ economic success.

Using Rent Payments to Build and Increase Credit Scores

Until recently, rent payments were not factored into your credit score. But in 2010, Experian acquired RentBureau, a specialty rent credit reporting agency that focused solely on rent payments. In 2011, Experian announced that rent data would appear on a consumer’s credit report. RentBureau allows property managers and other third parties to upload rent payment information – both positive and negative – directly to Experian. TransUnion also now includes rent history on credit reports when the data is available. Rent appears as a “trade line expense” on your TransUnion credit report. Most people see great potential for reported rent to help people build credit. Rent is not considered “late”

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