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jerryking : financial_literacy   50

Five unpopular personal finance truths
November 15, 2017 | The Globe and Mail | by RYAN MODESTO SPECIAL TO THE GLOBE AND MAIL.

* You need to invest!!!! This element gets overlooked--Saving alone won't cut it. If saving is the workhorse to get you somewhere, investing is at least the reins that help to steer you to your destination. .... Investing is only going to become more important as pensions get leaner and less prominent and living costs rise while wages stay stagnant. Investing those savings is how one can bridge the gap. So if you are saving money, give yourself a pat on the back, but don't stop there – you are only part of the way through the journey.

* You need to be able to save. Spending is fun; saving usually less so. The issue is one of delayed gratification. really is the crux of why people prefer to spend today than save for tomorrow.... trim unnecessary costs....and remember the power of compound interest.

* Personal finance is not fun (for most). Personal finance is boring....even a daunting topic.

* Personal finance is rarely black and white.....Different financial strategies work for different people. ...While the numbers can offer a guideline, the answers to personal finance questions are rarely black and white....The second part of this is the willingness to save, which is more psychological. You need to be both willing and able to save money to be able to help yourself in the first place. There are no silver bullets when it comes to finance. At the end of the day, you need to be willing and able to save money for anything else to matter.

* You have to treat yourself. At the end of the day, we make money so we can provide for those who rely on us, live a particular lifestyle and hopefully have a bit of fun. .... Personal finances are a life-long grind, and as long as the little things stay under control, they are not going to be what makes the difference in 80 years..... you can't take the money with you, so you have to spend some of it....But just some of it.
* A sixth rule might be: Don't blame "the world" for being not able to save. Look at what you are currently spending money on and think about whether you actually "need" to (vs "want") and also if there is any way to change to something that is less expensive.
* A seventh rule: Plan for financial shocks/emergencies. Keep some money in the bank (and invest it in something, of course) so if your car breaks down or you get laid off, you can keep the wolf from the door for at least a couple of months.
* An eight rule: If you go out shopping to 'cheer yourself up', stop doing it.
* A ninth rule : Just because a bank offers to give you tons of money doesn't mean it is a good idea for you to take it.
personal_finance  financial_literacy  investing  delayed_gratification  boring  personal_savings_rate  financial_shocks  emergencies 
november 2017 by jerryking
Racial Wealth Gap Persists Despite Degree, Study Says - The New York Times
By PATRICIA COHEN AUG. 16, 2015

The lack of family wealth is pivotal to understanding the racial economic gap, he argues.

While the researchers from the St. Louis Fed, when asked, played down the importance of financial support from family when explaining their results, Mr. Darity said he believed that family aid helped individuals avoid the type of risky big-ticket borrowing that ensnared so many Hispanic and black graduates.

“Prior family wealth is the key,” Mr. Darity explained in an email, noting that it “shapes both income-generating opportunities and the capacity to allow wealth to grow more wealth.”
African-Americans  downward_mobility  financial_literacy  generational_wealth  personal_finance  racial_disparities  self-perpetuation  social_classes  social_mobility  wealth_creation  wealth_management 
august 2015 by jerryking
What Explains the Racial Wealth Gap? - Real Time Economics - WSJ
February 27, 2013| WSJ| By Neil Shah.

What Explains the Racial Wealth Gap?

Differences related to inheritances, college education and unemployment also play a role. Whites are five times more likely to inherit, while 80% of black students graduate with debt compared with 64% for whites. “Similar college degrees produce more wealth for whites,” Shapiro said.
wealth_creation  personal_finance  financial_literacy  racial_disparities  generational_wealth  college-educated 
february 2013 by jerryking
Class project: Making sense of dollars and cents - The Globe and Mail
MARTIN MITTELSTAEDT

TORONTO — The Globe and Mail

Published Thursday, Jan. 24 2013
financial_literacy 
january 2013 by jerryking
A Crash Course On Staying Wealthy - WSJ.com
March 23, 2005 | WSJ | By ROBERT FRANK
A Crash Course On Staying Wealthy
Financial Training Programs For Kids Are Proliferating; Cultivating Future Clients
children  youth  financial_literacy  wealth_management  training  Robert_Frank  high_net_worth  training_programs 
august 2012 by jerryking
'Boot Camp' Offers the Young Rich Lessons in Handling Their Wealth - WSJ.com
December 27, 2006 | WSJ | By SCOTT STEARNS .
'Boot Camp' Offers the Young Rich Lessons in Handling Their Wealth
parenting  high_net_worth  affluence  wealth_management  training  youth  personal_finance  financial_literacy 
august 2012 by jerryking
Raising Financially Savvy Kids - WSJ.com
July 31, 2007 | WSJ | By JACLYNE BADAL.
Chances Abound To Teach Children About Money
wealth_management  parenting  high_net_worth  financial_literacy  UFSC 
august 2012 by jerryking
Upper Class: Why the Rich Are Heading Back to School - WSJ.com
January 17, 2007 | WSJ | By RACHEL EMMA SILVERMAN.
Upper Class: Why the Rich Are Heading Back to School
As Managing Wealth Grows More Complex, Many Seek To Sharpen Financial Savvy
high_net_worth  wealth_management  estate_planning  Wharton  family_office  education  financial_literacy  personal_finance 
august 2012 by jerryking
Financial literacy: Getting it right on the money | The Economist
Financial literacy
Getting it right on the money
A global crusade is under way to teach personal finance to the masses

Apr 3rd 2008
financial_literacy  uFSC  personal_finance 
june 2012 by jerryking
Investing Ideas That Stand Test of Time
April 25, 2000 | WSJ | Jonathan Clements

These days I find I am left with just three core investment ideas:
(1) Financial Success is a Sense of Control
If you ask folks about their financial goals, they will likely offer a laundry list of goods they want to buy or announce they want to accumulate as much money as possible. But in reality,
both goals are a prescription for unhappiness.
Sure it might be nice to purchase everything that catches your fancy. But nobody has unlimited wealth, so a focus on endless consumption inevitably results not in happiness, but in frustration and financial stress. Yeah, it would also be great to have heaps of money. But if all you want is an even bigger pile of cash, you will never be satisfied, because you will never reach your goal. So what should you
shoot for? A far more worthy goal, I believe, is eliminating the anxiety that comes with managing money. You want to reach that sweet spot where you feel your finances are under control, no matter what your standard of living and level of wealth.

(2)Investing is Simple
No doubts about it, there are lots of investments and investment strategies that are mighty complicated. But complexity usually means investors are running the risk of rotten results and Wall Street is getting the chance to charge fat fees. Investing is best when it is simple. In fact, if you want to accumulate a healthy nest egg, there
isn’t much to it. First, you have to save a goodly amount, preferably at least ten percent of your pre-tax annual income. Second, you should consider investing at least half of your portfolio in stocks, even if you are approaching retirement. Third, you should diversify broadly, owning a decent mix of large, small and foreign stocks. Fourth, you should hold down investment costs, including
brokerage commissions, annual fund expenses and taxes. Finally, you should give it time. A little humility also helps. Don’t waste effort — and risk havoc — by trying to pick the next hot stock, identify the next superstar fund manager or guess the market’s next move. Instead, your best bet is to buy and hold a few well-run mutual funds.

(3) We are the enemy
If successful investing is so simple, why do so many people mess up? It isn’t the markets that are the problem, it is the investors.
We make all sorts of mistakes. We fret about the performance of each investment that we own, so we don’t enjoy the benefits of diversification. We are often overly self-confident, which
prompts us to trade too much and bet too heavily on a single stock or market sector. We
extrapolate recent results, leading to excessive exuberance when stocks are rising and unjustified
pessimism when markets decline. We lack self-control, so we don’t save enough.

[All the points made immediately above are analogous to Jason Zweig's article on personal finance & investing. From Benjamin Graham --investing is often portrayed as a battle between you and the markets. Instead, “the investor’s chief problem — and even his worst enemy — is likely to be himself.”

Similarly, Nobel Laureate Daniel Kahneman wrote in his book Thinking, Fast and Slow. [that]evaluating yourself honestly is at least as important as evaluating your investments accurately. If you don’t force yourself to learn your limits as an investor, then it doesn’t matter how much you learn about the markets: Your emotions will be your undoing.... ]

If you are going to truly be a successful and happy investor, it isn’t enough simply to devise
strategies that allow you to meet your investment goals. Your strategies also must give you a
sense of financial control and fit with your risk tolerance, so that you stick with them through the
inevitable market turmoil.
That may mean keeping more of your money in bonds and money-market funds. It could mean
paying for an investment advisor. It might mean scaling back your financial goals and accepting
that the kids won’t be heading to Harvard and that you won’t be able to retire early.
These sorts of choices aren’t foolish. What’s foolish is settling on investment strategies without
considering whether you can see them through.
personal_finance  investing  howto  ideas  goal-setting  Nobel_Prizes  money_management  Jonathan_Clements  financial_literacy  biases  humility  mistakes  self-awareness  self-control  proclivities  overconfidence  financial_planning  delusions  self-delusions  emotions  human_frailties  Jason_Zweig  extrapolations  risk-tolerance  recency  unhappiness  human_errors  bear_markets  sense_of_control  superstars  Daniel_Kahneman 
may 2012 by jerryking
Rob Carrick - The Globe and Mail
ROB CARRICK

Last updated Thursday, Apr. 14, 2011
Rob_Carrick  financial_literacy 
april 2011 by jerryking
Too Young for Finance? Think Again |
April 16, 2011 | HeraldTribune.com | RON LIEBER
financial_literacy  children 
april 2011 by jerryking
Today’s lesson: Home-school the kids in financial literacy - The Globe and Mail
ROB CARRICK | Columnist profile | E-mail
From Thursday's Globe and Mail
Published Wednesday, Apr. 13, 2011
Rob_Carrick  financial_literacy  children  personal_finance 
april 2011 by jerryking
James Surowiecki on Financial Illiteracy - NYTimes.com
June 29, 2010, 9:45 am
James Surowiecki on Financial Illiteracy
By FREAKONOMICS
financial_literacy  James_Surowiecki 
november 2010 by jerryking
DeForest B. Soaries Jr.: Black Churches and the Prosperity Gospel - WSJ.com
OCT. 1, 2010 |WSJ| by DEFOREST B. SOARIES JR. Traditionally,
black churches emphasized spiritual renewal, social justice, educational
uplift, community improvement & civic engagement in addition to
individual achievement. That the church was the locus for community
& personal advancement made it a powerful force for hope &
survival. Leaders like the late Dr. Samuel Proctor, pastor of the
Abyssinian Baptist Church, emphasized religious & secular education
as keys to economic progress. Proctor & others like him produced
strong institutions, not just a few fabulously wealthy individuals.
Given today's weak economy, the prosperity movement might consider
focusing on financial literacy, personal discipline & saving for the
long term, rather than emphasizing supernatural possibilities.
Depending on miracles as a financial strategy is a dangerous way to
live. Churches can be effective in teaching people how to convert from a
culture of borrowing & spending to a culture of saving &
investing.
African-Americans  churches  leadership  institutions  savings  financial_literacy  pastors  self-discipline  investing  weak_economy  prosperity_gospel 
october 2010 by jerryking
School Finds Economics of Success - WSJ.com
JULY 6, 2010 | Wall Street Journal | By BARBARA MARTINEZ .'Financial Literacy Is the Fourth "R"'
financial_literacy  ufsc  schools 
july 2010 by jerryking
Forget the House | The American Prospect
Homeownership programs that focus on financial literacy can still serve as a means to build assets for low-income families.
Monica Potts | April 27, 2010
financial_literacy  ufsc  home_ownership 
may 2010 by jerryking
A Type of Learning That Pays Dividends
April 15, 2010 | BusinessWeek | By John Hope Bryant. Making
financial literacy a new civil right will give millions of Americans a
shot at prosperity and do the U.S. economy a world of good.
financial_literacy  ufsc  John_Hope_Bryant 
april 2010 by jerryking
The 15 Money Rules Kids Should Learn - WSJ.com
MARCH 28, 2010 | Wall Street Journal | by JEFF D. OPDYKE.
Adapted from "Piggybanking: Preparing Your Financial Life for Your Kids,
and Your Kids for a Financial Life." Copyright 2010 by Jeff D. Opdyke.
Published by Harper Business, an imprint of HarperCollins Publishers.
financial_literacy  book_reviews  children 
march 2010 by jerryking
Why now? Making financial literacy a priority - The Globe and Mail
Donald A. Stewart and L. Jacques Ménard

Special to Globe and Mail Update Published on Monday, Mar. 15, 2010
ufsc  financial_literacy 
march 2010 by jerryking
Put Money 101 on the curriculum
Nov. 05, 2009 | Report on Business | by Rob Carrick. The
Ontario government said this week that kids in grades four through 12
will learn about money management starting in 2011, and a federal task
force was launched last summer to find ways to improve financial
literacy. Research commissioned by the Investor Education Fund (IEF), a
not-for-profit offshoot of the Ontario Securities Commission. The point
of the study, which involved about 850 people aged 20 to 34, was to
figure out how young adults learn in an online world. An emphasis was
placed on how they learn what they need to know to handle life events
like having a child or buying a home.
UFSC  financial_literacy  research 
november 2009 by jerryking
Black Folks' Guide to Making Big Money in America -
1982| by TROWER-SUBIRA, George | published by Very Serious Business Enterprises.
African-Americans  books  financial_literacy 
april 2009 by jerryking
Deep in Debt, and Now Deep in Worry
January 24, 2009 |New York Times| By BEN STEIN
Advice about money: do not act like typical Americans. Do not fail to
save. Do not get yourself in debt up to your eyeballs. Work and take
pride and honor from your work. Learn a useful skill that Americans
really need, like law or plumbing or medicine or nursing. Do not expect
your old Ma and Pa to always be there to take care of you. Learn to be
self-sufficient through your own contributions. “Be prudent.”
Ben_Stein  financial_literacy  personal_finance  self-sufficiency  prudence  personal_economy  savings  frugality  debt 
march 2009 by jerryking
Push for financial literacy spreads to schools | csmonitor.com
By Amy Green | Correspondent of The Christian Science Monitor

from the March 9, 2009 edition
schools  financial_literacy  ufsc 
march 2009 by jerryking
Toys to Teach Saving Savvy - WSJ.com
MARCH 18, 2009, | The Wall street Journal| by WILLA PLANK
financial_literacy  children  toys  ufsc 
march 2009 by jerryking
Schools have failed on the financial literacy front
February 23, 2009 | Globe and Mail Update | by TOM HAMZA AND PAUL BATES EST
UFSC  financial_literacy  schools 
february 2009 by jerryking
The Green Machine Hal Harvey spends his environmental war chest with one guiding principle: winning
FEBRUARY 12, 2007 WSJ article by JEFFREY BALL. Global warming
is tougher than localized environmental threats such as smog. That, Hal
Harvey argues, requires environmentalists to focus less on fiery
rhetoric and more on hashing out economically efficient policies that
have political legs. In doling out the dollars at his disposal, Mr.
Harvey uses much the same strategy as the other venture capitalists in
Silicon Valley. He invests where he thinks he'll get maximum return. In
his parlance, he looks for the political "pinch points" likely to
promote technologies that will deliver the most "tons of carbon avoided
per philanthropic dollar invested." He and his colleagues try to compute
that using spreadsheets.
green  environment  philanthropy  lobbying  policy  strategy  UFSC  financial_literacy  pain_points  bottlenecks  leverage  return_on_effort  investors  climate_change 
february 2009 by jerryking

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