Students are certainly tech savvy these days.  They tweet and text and surf with great confidence, secure in their know-how about the joys of connectivity.  But how secure is their knowledge about being safely connected when it comes to online money management? 

For example, what would your student do if they received an email from their bank asking them to update their account information?  Would they confidently click on the attached link and update their records?  Wrong decision!  They would be giving identify thieves direct access to their money.  But if they’d played a new, interactive financial literacy board game called Wi$eMoney – they would know that banks don’t ask customers for account information via e-mail. 

Wi$eMoney teaches students about banking, credit, investing, budgeting and identify theft.  It was created by The Learning Key, a company that creates games to transform learning into action (www.thelearningkey.com) .  It has been tested with students and teachers in nearly two dozen states and complies with school board approved curricula. 

The information that’s shared while playing Wi$eMoney is priceless. And, it’s desperately needed because U.S. students are graduating without basic financial education.  They’re graduating without the ability to manage their money.  In fact, in a recent survey of educators across the country who belong to the Business Professionals of America teachers said:

• only a third of students who graduate from high school are financially literate
• 93% need education on how to manage a budget 

But the other disturbing fact that was identified in the survey is that more than half of the teachers (51%) said they are only somewhat qualified to even teach students in financial matters. 

That’s why parents and teachers must find ways to make learning about money fundamental and help students understand the importance of the mindset:  It’s your money so take it personally ™.

How better to do that than with a game that makes become financially smart fun and mental?

Here’s to your health and wealth. 

TAGS: Generation Y, Women and Money

 Is your child money smart when they graduate from high school? 

Being financially literate is not the grade most teachers give the nation’s high school students.  More than half say today’s kids have not been adequately educated about money matters by the time they receive their high school diploma. 

According to a recent survey of teachers nationwide who are members of Business Professionals of America, 51% said students are either somewhat or very illiterate when it comes to money matters regarding managing a budget, saving and investing money, credit cards and paying bills.  Only 2% of these educators felt that graduating seniors were very well-versed in financial matters. 

The survey was done for an interactive financial literacy board game called Wi$eMoney – a product of the Learning Key – a company that designs learning tools (http://www.thelearningkey.com/index.php).  I provided content for this board game and focused on challenging juniors and seniors to test their money skills and knowledge.  Wi$eMoney helps them understand early on why It’s your money so take it personally ™ should be their mindset. Wi$eMoney’s goal is to stimulate student awareness of their financial responsibilities and make the process fun! 

Many of the nation’s teachers – in fact, one in five of those asked –  who felt that students are very financially illiterate – don’t think their schools are doing enough to prepare students for the real world of money – how to make it, spend it, save it and invest it. 

Elizabeth Treher is founder, president and CEO of The Learning Key.  She says:  “Teachers, in general, are concerned that students are not aware of the financial responsibilities they will encounter when they become independent of their parents.”  Treher adds:  “Many educators feel that basic financial education should be introduced to students as soon as they enter high school and become involved until they graduate”. 

Financial education like reading should be fundamental as well as fun and mental.  What better way to engage students in learning to become money savvy than to make a game of it?   

Here’s to your health and wealth. 

If you’re interested in learning more about the Wi$eMoney board game and/or sponsoring financial education in your local school district, go to http://www.thelearningkey.com/PDF/Sponsorship_Promo_06092010.pdf.

TAGS: Generation Y, Women and Money

What happens if the IRS comes calling, wagging a finger at you for a mistake on your tax return – but the error was made by your tax preparer? Tax specialists say it totally depends on the mistake and the person who made it. 

The rule of thumb is if (regardless whose fault) you have short-changed Uncle Sam, you’re probably going to be responsible for the taxes you owe.  Your preparer, however, might/should offer to pay whatever penalties and interest you incur.  The best suggestion I can give you on this:  always ask.  Some companies like H&R Block, cover those costs and will even pay the difference in your tax bill up to $5000 if you want to ante up upfront an extra $30 to $50 for protection. 

How do you find a qualified professional tax preparer?  There are only two states – California and Oregon – that regulate them.  Ask for referrals from people you know and trust.  Look for members of the National Association of Tax Professionals (http://www.natptax.com/) or the American Institute of Certified Public Accountants (http://www.aicpa.org/) in your area.  

Remember my mantra?  It’s your money so take it personally.  You’re getting ready to hire someone to assist you in verifying to the government what your income is and what your tax responsibilities are. It’s your money so be sure the preparer is experienced with returns like yours and that you ask good questions.   

• How many years has the preparer been in business?  Your comfort level increases when you know the person has extended experience in the tax law.
• Is the preparer a CPA (certified public accountant)?  Different states have different requirements.
• What’s the focus of the preparer’s practice?  If you have specialized needs, such as real estate or small business, you’ll want to find a preparer who is familiar with your industry’s specific tax protocols.
• How does the preparer stay current?  There are 500 to 1000 changes to the tax code every year.
• How aggressive is the preparer regarding claiming deductions?  You’ll want someone whose philosophy is similar to your own.
• How available is the preparer to assist you?  In the event there’s a question or if you get a call from the IRS, you’ll want to know the preparer is available to help you year round.
• Has the preparer successfully negotiated with the IRS?  You’ll want to know the preparer has experience in the trenches in the event of an audit.
• Cost?  A simple return will be relatively inexpensive but more involved taxes take more time and cost more but could ultimately save you money down the line. 

When speaking with a tax preparer whose services you might be considering, never hire a paid preparer who:

• won’t sign your return (which they’re required to do by law);
• sets a fee for services depending on the amount of your anticipated return; or
• guarantees you a refund before even learning of your specific tax situation. 

Thursday, April 15^th is Tax Day this year.  Remember, even if you don’t have all the paperwork gathered and plan to file for an extension – you must pay whatever you owe on or before this date in order to avoid penalties.

Here’s to your health and wealth.

TAGS: choosing a certified tax preparer, Income taxes, questions to ask when choosing a cpa

In addition to the fantastic financial advice Valerie provides on this blog, this week I’m excited to share a podcast interview I recently conducted with Manisha Thakor, financial literacy expert and co-author of two great books on personal finance, On My Own Two Feet and Get Financially Naked.

In this 15-minute segment, Manisha answers the questions on the minds of today’s college students and recent grads, such as:

- What are the most important financial steps to take in your 20s?

- What are the biggest mistakes to avoid in your 20s?

- How can college students make good decisions about how much student loan debt to take on?

- What are the best ways to save money and live on a budget?

- What are the important financial steps to take when starting a new job?

Don’t miss this essential information for you and your wallet! Listen to the podcast now.

TAGS: 20 to 29 year old women and money, Generation Y, Money Basics

Debit cards are great as long as you do the math – regularly.   

When it comes to debit cards – it’s important to stay in check.  By that I mean be disciplined and always record in your check register the amount you just spent from your checking account.  The concept is basic but many people find themselves in a debit dilemma because they forget to do that. 

It’s a good mindset/discipline to always think of debit cards this way:  you’re paying now – unlike with credit cards where you’re paying later.  To use your debit card means you have to have money in the bank right now to cover your purchase.

In the event your debit card is lost or stolen, the Federal Reserve (http://www.frbsf.org/publications/consumer/plastic.html) – says:

• Your liability is limited to $50 if you notify the financial institution within two business days of discovering the loss or theft. 
• However, you could lose as much as $500 if you delay. 
• And if, within 60 days after receiving your statement on which the unauthorized charge appears, you don’t report it, you risk unlimited loss – meaning you could lose all the money in your account (plus anything in your maximum overdraft line of credit.)

Debit cards can share some of the same features and protections of credit cards:

• Zero liability:  (as mentioned above) you’re generally not liable for unauthorized purchases as long as you notify the lender immediately. 
• Fraud protection:  the law requires financial institutions to replace funds within ten business days of notification (though sometimes sooner) for losses resulting from fraudulent card use. 
• Disputes:  you may have dispute resolution options if an issue arises from a debit card purchase. 

Debit cards are hugely popular these days.  But given the potential risk due to the direct access to your checking account, here are some suggestions on how to wisely and mindfully use yours:

• Protect your ATM/debit card as you would cash.
• If your card’s lost, stolen or you suspect it is being used fraudulently, report it immediately to your bank.
• Save your debit transaction receipts for better oversight of your account and be sure to always shred them when disposing of old receipts.
• Choose and memorize a safe PIN which means avoiding obvious numbers such as your birthday or address and share it with no one.
• Always know how much money you have in your account, and review bank statements carefully.
• Remember – your debit card may allow you to access money that you have set aside to cover a check that has not yet cleared your bank.

It’s a good idea to always notify your financial institution before traveling out-of-state (and certainly when out of the country) if you plan to use your debit card.  Some banks will even send you alerts when your card is being used outside of its normal usage area – which is an attempt to prevent suspected fraud or theft.

And finally, know your card’s limits.  Your debit card will have a “purchase limit” and also a “withdrawal (such as via your ATM) limit”. Usually they are not the same amount. If you don’t know what those limits are – find out!  It’s your money, so take it personally.  Mind over your money matters because mind over money – matters. 

Here’s to your health and wealth.

TAGS: Debit cards, features, liability, protections