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Financial Education

All articles tagged with #financial education

finance22 days ago

Avoid Costly Penalties by Mastering Your RMD Strategy

Many Americans missed their required minimum distributions (RMDs) in 2024, resulting in significant penalties that could total around $1.7 billion nationally. The main issue appears to be a lack of awareness and education about RMD obligations, which are mandatory withdrawals from retirement accounts starting at age 73. Experts emphasize the importance of understanding these rules and utilizing available tools like automated withdrawals to avoid costly penalties, and highlight the role of family members and financial professionals in ensuring compliance.

via MarketWatch|
#finance#financial-education#irs
finance3 months ago

Credit Card Debt Doesn't Define Financial Skill

Being in credit card debt is often misunderstood; it doesn't necessarily mean poor money management. Common myths include the idea that debt is a sign of financial failure, that all debt should be avoided, and that getting out of debt is impossible. In reality, debt can be a useful tool, especially when used strategically and with proper planning, such as building an emergency fund and creating a repayment plan. Understanding how debt works and managing it wisely can lead to financial stability and even debt elimination.

via NPR|
#credit-card-debt#credit-score#debt-myths
business7 months ago

Gen Z Faces Judgment and Financial Struggles Amid Rising Costs

Gen Z feels judged for their spending habits, blaming a lack of financial education in schools and high living costs, while many rely on parental support for expenses and lifestyle choices. Despite criticism, they aim to save and plan for future financial independence, with some expecting to become the wealthiest generation as they inherit wealth. The article highlights the need for better financial education to help them manage money more effectively.

via Fortune|
#business#cost-of-living#financial-education
business1 year ago

"Chipotle and Walmart Lead Stock Split Trend in Record Market"

Walmart and Chipotle are splitting their stocks for the first time in decades, aiming to make shares more affordable for their employees and encourage employee stock ownership. However, benefits consultants are skeptical about whether lower-level workers will take advantage of the opportunity, citing competing financial interests and the need for robust financial education. Both companies are also focusing on providing financial education and access to discounted stock through employee stock purchase plans, but experts suggest that companies may need to enhance their offerings further to truly incentivize employee stock ownership.

via CNBC|
#business#chipotle#employee-stock-ownership
finance1 year ago

"Surge in 401(k) Millionaires: What's Behind the Trend?"

Fidelity Investments reported a 20% increase in the number of people with seven figures in their 401(k) accounts, sparking a discussion on the importance of long-term saving and financial education. Readers shared stories of early influencers, emphasized the role of employer education, and offered advice to younger workers. The consensus was to start saving early, maximize contributions, and avoid withdrawing funds from 401(k) accounts. The discussion highlighted the need for basic financial education in schools and the impact of income, education, and employer-provided retirement plans on retirement savings.

via Yahoo Finance|
#401k#finance#financial-education
personal-finance2 years ago

Generational Lessons: Boomers' Impact on Millennial Personal Finance

Millennials are more knowledgeable about personal finance compared to previous generations, and their parents played a significant role in this. A recent survey found that nearly three-quarters of millennials grew up in families that talked about money, while only 41% of boomers recalled discussing finance with their parents. The trend of discussing money with children has been steadily increasing, with younger generations starting financial conversations at earlier ages. Experts believe that boomers, who were taught little about money by their own parents, made a conscious effort to educate their millennial children about finance. This generational shift in financial education may be attributed to the significant wealth transfer from boomers to millennials.

via USA TODAY|
#financial-education#generational-differences#millennials
personal-finance2 years ago

Harnessing Fear for Financial Success: Insights from Experts at CNBC's Your Money

Personal finance expert Farnoosh Torabi believes that fear can be a valuable tool in building wealth. Rather than ignoring fear, Torabi suggests using it as an opportunity to improve financial standing. Two steps to harness fear for wealth building include getting informed about what scares you, such as investing in the stock market, and playing out the worst-case scenario, like losing your job during a recession. By educating oneself and making a plan, fear can be transformed into a roadmap for financial success.

via CNBC|
#fear#financial-education#financial-planning
personal-finance2 years ago

Gen Z's Financial Savviness: Opening Roth IRAs Pre-Voting Age

A group of teenagers have taken the initiative to open Roth IRAs, a retirement savings account, before they are even eligible to vote. These young investors are leveraging their early start to take advantage of the power of compounding and tax-free growth over time. By starting early, they are setting themselves up for a more secure financial future and demonstrating the importance of financial education for young people.

via The Wall Street Journal|
#financial-education#investing#personal-finance
personal-finance2 years ago

The Key to Retirement Success: Start Saving by the Right Age

A report from the Milken Institute suggests that Americans should start saving for retirement no later than 25 years old, saving $100 a week from then on to generate savings of over $1.1 million by age 65. The study highlights obstacles such as steep healthcare costs, social inequality, and student debt that prevent individuals from starting a retirement plan. It recommends countering "temporal bias" by getting in touch with their "future selves" and practicing visualization techniques. Financial education and the power of compound interest are also emphasized. The report supports government-facilitated retirement plans and highlights the Secure 2.0 Act, which requires auto-enrollment in retirement plans unless employees opt out.

via Yahoo Finance|
#compound-interest#financial-education#personal-finance
personal-finance2 years ago

Financial guru Grant Cardone's unconventional advice for true wealth and homeownership.

Real estate investment guru Grant Cardone believes that buying a home is the worst investment people can make, due to the additional costs that come with it. Instead, he suggests renting where you live and investing the money you would have spent on a down payment into real estate that generates passive income. Cardone advocates for residential real estate, which has maintained strong fundamentals through economic turmoil, and suggests investing in a residential real estate investment trust (REIT) or crowdfunding platform. The priority is to generate cash flow, which can be invested and grown over time until there is enough money to buy a home without financial challenges.

via Yahoo Finance|
#financial-education#homeownership#investing
personal-finance2 years ago

"Venmo's Teen Account: A Parent's Guide to P2P Payment Apps"

Venmo has launched a new linked teen account that parents can open with select features for kids aged 13 to 17 years old. While some teenagers already use Venmo, individual account holders must be at least 18 years old, or the age of majority in their state, per the app's user agreement. Peer-to-peer payment apps, also known as P2P apps, are widely in use throughout the U.S. and are used by 64% of adults, including 81% of those ages 18 to 29, according to a 2022 report from Consumer Reports. However, experts urge caution when using P2P apps and suggest that parents teach their kids how to use these financial tools wisely and educate them on how to avoid common pitfalls.

via CNBC|
#financial-education#p2p-payment-apps#personal-finance
personal-finance2 years ago

Avoid This Common Mistake When Switching Jobs to Secure Your Retirement Savings

Over 2-in-5 (41.4%) of employees are choosing to cash out their defined contribution 401(k) plans early, according to a study from the UBC Sauder School of Business. Cashing out your 401(k) early is problematic for multiple reasons: you’ll have to pay taxes and penalties, you’ll lose out on the benefits of compound interest, and ultimately, you may not save enough money to retire. Instead, you can keep the money in your employer’s plan, or you can transfer your assets to your new employer’s plan. Alternatively, you can roll your balance to an Individual Retirement Account (IRA) where you can continue growing your retirement savings tax-free until you make withdrawals in retirement. Americans still need more education on the benefits of 401(k) rollovers and the consequences of cashing out.

via Yahoo Finance|
#401k#cash-out#financial-education
finance2 years ago

Acorns expands into youth fintech with GoHenry acquisition.

Acorns, a US-based savings and investing startup, has acquired London-based GoHenry, a startup focused on providing money management and financial education services to 6-18 year-olds in an all-equity deal. The acquisition will add new backers to Acorns’ cap table and give it an opening to grow internationally, starting with GoHenry’s existing footprint across the UK, France, Italy, and Spain. The combined company will have nearly 6 million subscribers, and the executives say that the combined company will let them serve customers through all life stages – from birth to retirement.

via TechCrunch|
#acorns#acquisition#finance