Prepaid Debit Card Reviews, Complaints, Etc

Tag: financial literacy

  • Nature vs. Nurture Which Affect Your Spending Habits?

    Nature vs. Nurture Which Affect Your Spending Habits?

    This is an interesting item on the topic of nature vs nurture and how they may affect your spending habits. Although the study came out in 2013, it does not appear the information has changed. For those who are curious, read on.

    Which affects your spending and borrowing habits more, nature or nurture?  Does it matter?  Well Dr. Hersh Shefrin, Chair in the Department of Finance at Santa Clara University’s Leavey School of Business seems to think so.  In a recent paper for Chase Blueprint’s Resource Center for Mindful Spending, Dr. Shefrin, takes a deeper look into the psychology of why we spend and borrow the way we do.[pullquote_right]…financial education has largely been ineffective in increasing our degree of financial literacy …[/pullquote_right]]

    Some would argue it is due to a genetic predisposition, while others would say it is a matter of financial literacy.  Well, you would be surprised to find it is actually a little of both.  While nature and instincts play a part, a strategic, well-educated thought process (nurture), can override habits and knee-jerk reactions for instant gratification.

    According to Dr. Shefrin, Traditional financial education has largely been ineffective in increasing our degree of financial literacy because traditional methods fail to take into consideration the importance of psychology and the knowledge of how our brains make decisions.  A recent study showed those with financial literacy training fared no better on tests than those who did not take the class.

    Dr. Shefrin suggests the key to better financial literacy would be a two-fold approach. First, identify what motivates us, then design programs aimed at helping develop and maintain strong spending and borrowing patterns.  Some ways to do this would be by designing smart, nurturing programs that help people carry out the basics of managing spending and borrowing.  Another way would be with the use of modern technology, such as personal financial management tools aimed at providing consumers with their spending data in a straight forward way.  Finally, turning finances into fun with the use of games would go a long way to help instill better spending and borrowing habits in children, particularly during the K-12  years.

    “There is a high cost to making bad financial decisions,” says Dr. Shefrin.  To make real progress, we should harness innovations that can make it possible for people to overcome poor spending and borrowing habits.”

    Why do we spend this way?
    Why do we spend this way?

    For more information on the role nature and nurture plays in our spending habits, visit:  https://www.chase.com/online/chase_blueprint/document/JPMC_Chase_BornToSpend_FINAL.pdf

    For more information on the Resource Center for Mindful Spending, visit:  https://www.chase.com/online/chase_blueprint/resource-center.htm

  • Sing A Song For Financial Literacy

    Sing A Song For Financial Literacy

    From its origins as a quirky way to raise money to start a business, crowdfunding has quickly become one of the go-to methods for entrepreneurs who need cash to turn their ideas into reality. Crowdfunding has become so sufficiently mainstream that Entrepreneur now has an annual listing of the top 100 crowdfunded companies, which includes a business (Ouya, a video game console maker) that raised a staggering $8.6 million on the crowdfunding site Kickstarter. Now crowdfunding is being tapped to promote financial literacy in young children.

    Last month author and entrepreneur, Sam Renick, launched an effort on Indiegogo.com to raise $85,000 to develop an interactive website that uses music to teach kids four and older good financial habits. Renick says the website, which will be called the Dream Big Set Goals Resource Center and will feature the cartoon character Sammy Rabbit, will include videos, activities and games. Renick says that his website, should it get the necessary funding, will be the first to use music to teach young kids good financial habits.

    Renick says he was inspired to launch a website designed for young children, at least in part, because of research that underscores the importance of starting financial education very young. Indeed, Renick points to a study released last year by University of Cambridge researchers that concluded that adult money habits are largely formed by the age of seven.  This includes the important ability to delay gratification and plan ahead for purchases.

    The website’s focus on music as a learning tool is inspired by the effectiveness of campaigns such as Schoolhouse Rock, which used music and animation to teach children about subjects as complicated as how a bill becomes a law. Besides the website, Renick says that if he raises $85,000 he will also distribute 10,000 CDs to kindergarten through third grade classrooms worldwide. With 18 days remaining in the fundraising effort, Renick had raised a little over $1,500.

     

     

     

     

     

     

     

     

     

     

     

     

  • Experian Snags Award

    Experian Snags Award

    Credit bureau Experian recognized for efforts to promote financial literacy

    by Shane Tripcony

    One of the first lessons people interested in becoming savvy with their personal finances learn is to keep a close eye on their credit scores. In a nutshell, credit scores are a number meant to represent just how well someone pays their bills. Banks, mortgage lenders and automobile dealerships use the score to determine whether they will lend money to you and what interest rate to charge. Knowing what a credit score is and monitoring it routinely to make sure it doesn’t include faulty information, such as attributing someone else’s overdue mortgage to you, is an essential part of maintaining a solid financial life.

    One of the companies that calculates credit scores and maintains the credit reports that document how people do in paying off credit card, mortgage and student loan debts is Experian. Based in Costa Mesa, California, Experian is, along with TransUnion and Equifax, one of the nation’s three major credit bureaus.

    Along with maintaining all of this vital financial information, Experian also offers the general public a wide variety of educational tools, including a consumer education website. Recently, Experian was recognized for its advocacy and educational efforts geared towards boosting financial literacy by the National Foundation for Credit Counseling (NFCC). NFCC presented its Making the Difference Partner award to Victor Nichols, Experian’s North American CEO, at the nonprofit organization’s annual leaders conference in Denver in October.

    The award, which has been handed out annually since 2005, recognizes individuals who have helped further NFCC’s mission of helping consumers become more financially educated. “Experian’s commitment to consumer education aligns with the NFCC’s mission of creating a national culture of financial responsibility, making Experian an obvious choice for this award,” says Gail Cunningham, Vice President of Membership and Public Relations at NFCC.

    This isn’t the first time Experian has received this award. Last year’s recipient was Maxine Sweet, Experian’s Vice President of Public Education. In accepting the award Nichols vowed to continue working to promote financial literacy. “We understand what an impact education has in helping consumers manage their financial lives, and we will continue to make financial literacy a priority along with our commitment to always put the consumer first,” he says.

  • A Personal Finance Teacher’s Aide

    A Personal Finance Teacher’s Aide

    Scholarships are available to this November’s Jump$tart National Educator Conference in Washington, DC

    by Shane Tripcony

    The statistics paint a grim picture. According to the 2012 “Financial Literacy Survey of Adults,” two in five Americans gave themselves a grade of C, D, or F on their knowledge of personal finance topics. And if anything, the survey results indicate that those marks may have been too generous.

    Indeed, 56 percent of those surveyed conceded that they don’t have a household budget and 39 percent reported not having any non-retirement savings. Ensuring that today’s young people don’t eventually find themselves in the same financial predicament as their elders is one of the main goals of the Jump$tart Coalition’s National Educator Conference, which will be held in the nation’s capital this November 1 through November 3.

    Now in its fifth year, this annual conference is devoted to providing Pre-K through grade 12 teachers with the knowledge and resources they need to effectively instruct students about a wide range of personal finance topics. Designed with classroom teachers in mind – both those who lead stand-alone courses in personal finance or who incorporate it into other classes – this year’s gathering will include sessions on everything from curriculum development to what constitutes smart college borrowing for high school students to Federal Reserve Bank resources available to secondary educators.

    The credit bureau Experian recently announced that it would provide 20 scholarships to teachers that have not attended the conference before. Experian, one of the underwriters of this year’s conference, will cover attendees’ registration fee of $395, all conference meals and receptions as well as two nights in a hotel; travel and incidental expenses are not included. Anyone interested in applying for the scholarship should email [email protected] and include the following information: the teacher’s full name; the full name and address of the school or school district where the teacher is employed; and a short description of the course or unit in which the applicant teaches personal finance.

    All applicants must be full-time, licensed and certified teachers currently employed by a school district. Although there is no deadline to apply, scholarships will be awarded on a first-come, first-served basis.

  • Study: Post Recession Changed Behaviors and Attitudes

    Study: Post Recession Changed Behaviors and Attitudes

    New research by Chase and Aite Group reveals how the worst economic downturn since the Great Depression has affected Americans

    by Shane Tripcony

    The so-called Great Recession may have officially ended in June of 2009, but its impact has proved to be longer lasting. That is the main finding of a recent study conducted by Aite Group on behalf of Chase Blueprint.

    The study’s results, released in August, were drawn from interviews of over 1,200 American consumers.  Participants were asked how they have managed their finances since the end of the economic downturn and how their experience during the recession has changed their approach to money management. According to the study’s findings, the summer of 2009 was by no means the beginning of rosy economic times for many people. While it’s true that the number of respondents who rated their economic health as “excellent” grew from 18 percent in 2010 to 22 percent in 2013, the percentage of those deemed their finances “very poor” also spiked, from seven percent to ten percent.

    A sizable chunk of survey respondents also reported losing financial ground since the start of the economic recovery. Among those who declared their financial life either “excellent” or “decent” in 2010, 25 percent said it had deteriorated in subsequent years.

    Even though better economic times have not benefited everyone, the study offers proof that many Americans are more in control of their personal finances today. In 2010, only 41 percent of those polled considered themselves financially literate. Today, that number has risen to 55 percent. The biggest improvement was seen in the Generation Y demographic, largely people in their twenties and a segment of the population especially hard hit by the recession. Among that group, there was a 78 percent increase in those who consider themselves financially literate, from 28 percent in 2010 to over 50 percent today.

    Improved financial savvy also appears to be translating into better habits. For instance, survey respondents reported saving more money and spending less today than in the past. Additionally, those who have seen their financial health improve since the end of the recession are also far more likely to pay off their credit card bills in full every month than before the downturn. In 2008, only 43 percent of that group would completely erase their credit card debt monthly. Today, that number is closer to 60 percent.

  • Chase Blueprint Presents the Resource Center for Mindful Spending

    Chase Blueprint Presents the Resource Center for Mindful Spending

    As more optimism sets in concerning consumer finances, Chase Blueprint releases its new initiative aimed at helping consumers reinforce positive spending habits.  The Resource Center for Mindful Spending was unveiled at Washington Post Live’s “Kitchen Table Economics” forum and is focused on helping customers take steps toward a better financial future.  The new initiative comes in the wake of Chase’s Pulse of the Consumer Survey revealing that more than seventy-six percent of Americans are more optimistic about their finances; up 11 percent from last year.

    The survey takes a comprehensive look at Americans’ financial habits and attitudes toward the economy.  Forty-five percent of those surveyed believes their personal finances have already bottomed out and are getting better, a fourteen percent increase from last year.  More than sixty percent believe the national economy has bottomed out and is stable or improving.  In addition, consumers are even more optimistic about economic conditions around them, with sixty-seven percent believing their local economy is stable or improving.

    The Resource Center for Mindful Spending draws upon the expertise of Chase and respected experts in areas ranging from finance to psychology.  Consumers can delve into a wealth of resources and tools to help them better understand how why they borrow and spend the way they do will help them use their resources wisely.

    “As consumers begin to feel more optimistic about their financial situation, it’s more important than ever that we help them maintain good spending habits,” said Florian Egg-Krings, general manager, Chase Blueprint.  “That’s why Chase Blueprint is launching a new initiative that provides research and information to help nurture a mindful spending movement.  Together, we can help consumers strengthen the responsible spending and borrowing habits developed over the last few years.”

    “Few question the importance of financial literacy, but we would benefit from a better understanding of how the human mind actually develops habits around spending and borrowing,” said Dr. Shefrin, the author of the paper and Mario Belotti Chair in the Department of Finance at Santa Clara University’s Leavey School of Business.  “Based on a deep investigation of how people spend and borrow, this paper identifies three specific pathways for developing better financial habits.”

    1. Make budgeting as easy as possible by designing smart, nurturing programs that help people carry out the basics of managing spending and borrowing.  This can involve things like: setting goals, developing budgets, tracking expenses, identifying ways to increase income, choosing appropriate lenders, matching a person’s credit cards to their specific needs and paying balances down intelligently.
    2. Use modern technology, specifically personal financial management tools to provide consumers with their current spending data in a straightforward method.  Collecting spending data in one place can help consumers recognize spending patterns and correct bad behavior before it gets out of control.
    3. Turn finances into fun by using games to help instill better spending and borrowing habits in children, particularly during the K-12 years.  Electronic games motivate students’ competitive instincts and activate the reward centers of their brains, all of which helps to make teaching them about mindful spending easier.

    About the Survey

    The 2013 Chase Blueprint Pulse of the Consumer Survey is an online omnibus poll of a nationally representative, randomly selected sample of 1,208 adults.  It was conducted March 5-7, 2013.  The margin of error is ± 2.8 percentage points.

    About Chase Blueprint

    Blueprint is available free of charge to new and existing Chase credit cardholders.  It’s simple to set up, easy to use and customizable.  With Blueprint, cardholders can save money and pay down balances faster.  More information is available at www.chase.com/blueprint.

    About Chase

    Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading global financial services firm with assets of $2.4 trillion and operations in more than 60 countries.  Chase serves more than 50 million customers and small businesses through more than 5,500 bank branches, 17,500 ATMs, credit cards, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships.  More information about Chase is available at www.chase.com.

     

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