What is a financial cheat day? Similar to a diet cheat day, you select one day out of the week where you allow yourself some leeway. A financial cheat day can mean a meal at a restaurant. Be careful no to overdo it. Overdoing it can be a setback if not planned properly. When that day is over, you must be disciplined to return to the task at hand and be as frugal as usual. This is the financial reward for doing a great job, being diligent and living a little. I recommend a financial cheat day after you have accomplished at least (3) financial goals, paid of a debt, or restructured your bills. Planning is always key. A financial cheat day works best after you received a bonus, income tax check or a raise. So go out and splurge on yourself! Just don’t go overboard!
https://twocents.lifehacker.com/have-a-fanancial-cheat-day-1826567046/amp
The May 2018 issue of Financial Workshop Newsletter reported that every day 20,000 calls are placed to domestic hotlines. An average of 20 people per minute are physically abused by an intimate partner in the U.S., which equals to more that 10 million women each year. But abuse is not only physical. It appears that 94-99% of domestic violence survivors also experience economic abuse. Economic abuse is a term that describes a situation when finances are restricted and withdrawn as a means to control another person. The elderly may also experience economic abuse. At times, economic abuse is coupled with physical, psychological, or emotional abuse. Forms of abuse include:
- Preventing a victim from going to work
- Sabotaging the victim’s time so their job is threatened
- Forcing the victim to take on credit or loans
- Limiting the victim’s access to cash or other assets
- Demanding that mortgage or lease assets be placed in the abuser’s name
These words depict our personal financial life and goals. Can you add others?
money savings checking accounts bills auto loans credit cards mortgage loans 401k Roth-IRA FICO score debt budget payday loans credit report creditor balance investment interest rates minimum balance credit union insurance premium penalty lending bonds stocks bitcoin personal loan student loan vested retirement social security autonomy salary bonus earnings equity finance underwater loan value joint account heirs wills paid-in-full business loan calculated mutual funds annunity planning yield goals income capital gains IRA employer-defined benefit compound interest taxes portfolio diversify
You need to know that Renae Merle of the Washington Post reported…federal regulators voted to approve a broad proposal easing financial crisis-era regulations on risky trading, delivering Wall Street one of the biggest victories in recent years. Profits reached $56 billion during the first three months of the year. The previous regulations protected taxpayers from another bailout. Banking consumers need to be aware of new banking regulations and how it affects their deposits. Remember credit unions are more careful in risky investments. Be aware of how these new banking regulations affect you and your family.
Do you have a saying about money? Here are a few sayings you may have heard before…
- “It’s not your salary that make you rich it is your spending habits”…
- “If it sounds to good to be true it probably is”…
- “Money doesn’t grow on trees”…
- “You have to spend money to make money”…
- “The best things in life are free”…
- “A penny saved is a penny earned”…
- “You can’t take it with you”…
- “Money can’t buy a piece of mind’…
- “Early to bed and early to rise makes a person healthy, wealthy, and wise”…
We teach our children and grandchildren about money by how we model certain habits such as saving, spending, and giving to others. What lessons have you taught your children and what will they say they learned from you about money? Needless to say, what we observe from our parents and grandparents will become lifelong lessons that often determine their personal financial pathway. Whether it is fear, uncertainty, frugality, or decisiveness lessons about money are far-reaching. Methods such as ‘money talks or discussions’ may be helpful. However, what we show them through our attitudes and responses to monetary issues or problems speaks volumes to our children and grandchildren. What lessons have you taught others in your family and what will they say was the biggest lesson your children learned from you? Here are important messages we teach others:
- debt is a form of slavery
- financially successful people live below their means
- pay yourself first
- forget about impressing the neighbors and friends
- save aggressively early, you won’t have to save so much overall
- craft clear financial goals
- don’t believe everything you hear about money
- set your own spending limits and stick to them
https://www.moneytalksnews.com/10-things-every-high-school-graduate-should-know-about-money/
Consumer reports offers tips to help keep your money goals on track this month. This is a way to re-evaluate your budget and to make sure your money goals are still on track for the year. Summer is here and we spend more time outdoors and spend more money. An overall checkup is the way to go. Here are some ways to reach your financial goals:
- cut back on dining out
- set a spending limit for your summer vacation
- get a free credit report
- make sure your taxes are on track
- schedule your annual check-up
https://www.consumerreports.org/financial-planning/june-financial-to-do-list/
Knowing about personal finance is important and knowing financial terms is a must. Financial products are constantly changing or being redefined. As a consumer knowing financial terms means you are aware of the financial products you will be engaged with that affect you financial life and well-being. It may seem like learning a foreign language but speaking personal finance grows with practice.
Banking terms
- compound interest
- FICO score
- net worth
Investing terms
- asset allocation
- bonds
- capital gains
- rebalancing
- stocks
Real estate terms
- amortization
- ARM
- Escrow
- Fixed-rate mortgage
Career terms
- defined benefit plans
- defined contribution plans
- executive compensation
- stock options
Insurance terms
- permanent life insurance
- premium
- private mortgage insurance
- term life insurance
- umbrella insurance
Tax terms
- AGI
- dependent
- itemized deduction
- standard deduction
A Forbes magazine article collected financial words all parents should teach their children. The online tool teaches kids about responsibility, managing money and helping charities. Parents can begin age appropriate discussions to teach financial literacy to children as described below.
- Savings (age 4+)
- Budget (age 8)
- Loan (age 8)
- Debt (age 8)
- Interest (age 8-10)
- Credit card (age 8-10)
- Taxes (age 10-12)
- Investment (age 10-12)
- Stock (age 12+)
- 401k (age 14+)
- Credit Score (age 15+)
Based on a recent report by the George Washington Financial Literacy Excellence Center, a large number of Americans do not have the knowledge associated with financial decisions. Less than one in five U.S. adults demonstrated a relatively high level of personal finance knowledge. The Global Financial Literacy Excellence Center at George Washington has positioned itself to be the world’s leading center for financial literacy research and scholarship. Individuals who have participated in a financial literacy class gain more knowledge, this denotes the importance of financial education in the classroom or in the workplace.
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