Teaching Money and Credit Management - Whose Responsibility is it anyway?

In the United States, our school system requires all children to take and pass Reading, Writing, Arithmetic (I hated Geometry), a foreign language, Social Studies, Science, and in some schools they still require Physical Education.  However, it still baffles my mind that Money and Credit Management Education is NOT required. 

There may chapters that teach the denominations and how to count currency in elementary; as well as a little bit of finance education in high school.  And yes, there may be a financial management class offered in college as an elective.   Huh?  An Elective?   Yes, I use Reading and Writing every day of my life.  The other required courses … maybe on occasions or for fun, but I deal with MONEY EVERYDAY OF MY LIFE.  As a matter of fact, I dealt with money before I could read or write when my grandfather gave me a dollar bill when I was 2 or 3.

So, the question of the day is… Who is responsible to teach a child how to manage money, to leverage its potential wealth building power and to avoid ending up in tremendous debt and bad credit?

…I hear someone in the audience yell… The Parents!  OKAY…  And who taught the Parents?   

Many parents don’t teach their children about how to manage money because they either assume that the schools are doing it or because they don’t know or weren't taught themselves.  They may have “Colorful Credit” and could be drowning in debt.  They probably were never taught how to balance a checkbook properly.  “Checkbook?  Who uses checks nowadays?  We have debit cards.”  HINT: you still must balance your account when using your debit card. 

So, the second question of the day is…If the Parents don’t or can’t teach their children how to manage money & credit, who is now responsible to teach the child?

…I hear someone else in the audience screaming, “The Church!”  The Church is its people.  Most of those people have not been taught and are seeking financial counsel.

I do believe that Financial Institutions, such as banks and credit unions, are the most qualified to teach the world how to manage money.  Makes cents (sense) right?  “Herein lies the rub…”

LACK OF RESOURCES TO EDUCATE THE MASSES

IF the financial institutions teaches money management to the communities it serves, it may not have the resources to share the information to every consumer that needs and wants it.  Some financial institutions, do share money matters information to communities, organizations and schools, when they can get in there; but that is a small drop in a large bowl.  BUT…it’s a start!

CAN’T TEACH THE UNWILLING

You can only teach a person that wants to learn.  There are thousands of resources online, in the communities, independent professionals, etc. that provide some form of Financial Education.  However, reality check… the target audience may be set in their ways and probably afraid or unwilling to make necessary changes or sacrifices to help their financial situation.  Money & Credit Management should be taught before bad habits are formed. 

  

IT JUST DOESN’T PAY!

Here is the Oxymoron Answer to this million dollar questions (Pun intended):  It is frankly not advantageous for financial institutions to educate consumers on money management.  Consumer ignorance is a multi-million dollar business. Financial Institutions make money off of financial ignorance, poor money management, and financial irresponsibility of consumers.  Those consumers should take a close look at their monthly bank statements or check out the interest rate on their loan.  The less educated/informed and disciplined a consumer is with their money, the more money they will pay in fees and interest.  Simple math. So… if that is the case, is it really advantageous for financial institutions to have a massive Financial Literacy Campaign for the world?   

I believe that  1) it is the responsibility of the schools to provide the information as a core class from Elementary through Higher Education, 2) it is the responsibility of the Parents to reinforce the information by modeling the behavior of proper financial management for the child and instilling discipline, and 3) it is the responsibility of the Financial Institutions to provide the Financial Educational resources for the Parents to learn more and continue to be informed and fiscally responsible consumers.

Call me a Dreamer or Optimist!  I believe that Financial Knowledge is power. And … Hopefully one day the US Board of Education will understand the significance of and require Money and Credit Management Education as a curriculum in all schools.  Until then…Private Schools / Charter Schools…here is your opportunity to including Money and Credit Management Education to your curricula. (I'm Just Saying!)

For more information about money and credit management curriculum for your school, contact Madam Money at info@tarrajackson.com.

  

(c) 2010 Tarra Jackson Enterprises

The Grand Hotel

The Grand Hotel embodies all of the beauty and histroy that begins in the Victorian era for Mackinac Island.   In a sense, the island is trapped in this time.  It clings to the old things and puts them on a pedastle making them great.  The hotel is the center of everything beautiful and historic on the island.   It's long, white walls can be seen from the water on the ferry ride to the island.  It sits away from the rest of the chaos of the island, amidst green gardens.  There are no cars on the island and during my many visits to the island, I have travelled to the old hotel using many modes of transportation.  Whether you approach by horse and buggy, bicycle, horseback, or on foot, the elegant porch gleams in the sunlight as the first part of the hotel you see.  The hotel is a piece of my history as much as it is the island's.  My great grandfather worked at the hotel and his father before him.  My great grandfather proposed to my great grandmother in the old hotel.  I still have the ring he proposed her with. 

The land for the hotel was bought in 1886.  During this time the popularity of the island for a summer get away was exploding.  Tourists were coming from as far as Chicago to see the scenic beauty of this quiet island.  The Grand Hotel was built to cater to the wealthier tourists that came from afar to relax in peace.  It was during the construction of the hotel that an untold number of bones were unearthed.  Most of the bones were relocated, but it is said that some of these old skeletons still remain beneath the foundation of this luxourious hotel. 

In 1887 the hotel opened and it was a success from the beginning.  During the long summers every room was filled.  Of course during the winter, when the bitter Northern Michingan wind freezes the lake and burries the hotel in snow, the hotel was still mostly empty.  In the 1890's, the hotel's owners proudly announced that they had built the longest porch in the world around the beautiful hotel.   In 1895, Mark Twain came for a reading in the Hotel's grand salon.   The Hotel was often host to famous people and  a couple of movies were shot at the hotel.  The most recent film shot there was made in the 1980's and stared Christopher Reeves as a love struck playwright.  The film was called Somewhere in Time.

Despite all this activity,  the hotel has continuously been a source of paranormal activity.  As the hotel expanded, the orignal Fort Mackinac Island cemetery was moved to make room for the horse stables.  So the stables now stand on yet another collection of old bones. Those that have worked at the Grand report phantom footsteps and doors opening and shutting.  Guests staying at the hotel have reported feeling ill at ease, as if there is something else in the room with them from time to time.   The hotel groans at night and, although all old things groan, the noises from this hotel seem loader that they should.

Nikkori's Attorney

Thank you for responding to my inquiry and best of the day to you. The time difference makes it is a little bit difficult to reach you. My name is Sapphire Nikkori and I am currently in Japan for an assignment. My ex husband Gregory Nikkori and I were divorced in Singapore but he has since relocated to the United States. He is a citizen.

 The legal description of my case involved both of us agreeing under a Property and Settlement agreement incorporated, merged into and made part of the final judgment of dissolution of marriage for a settlement of child support, spousal support, and medical support of $1,035,600.00, of which $295,500.00 has been remitted by him leaving a balance of $740.100.00 to be paid. This is the reason why I contacted your firm as there is already an agreement in place. I know for sure my ex husband has the financial means to pay for balance he owes me.

Thus, I request your legal services to enforce the court order compelling him to remit balance owed me. Attached for your perusal is a copy of the Property settlement agreement, and the Court's Decree and I will be pleased to provide further information on this case on request. I expect this to be resolved in a timely manner. If you want to take up this case, kindly send me a copy of your draft agreement and if the terms are acceptable I will sign so we can commence the process without delay.

Thank you for your anticipated cooperation and professionalism.

Yours truly,

Ms. Sapphire Nikkori

2-5-15 Koraku, Bunkyo-ku

Tokyo 189-8903, Japan

Tel: +815058098190

A Gold Medal In Creativity

In my last post I mentioned the so-called Olympic legacy. This is the government's idea that, because those Lycra-clad show-offs of Team GB won a few bits of scrap metal and half a yard of coloured ribbon, we should all be joining gymnastic clubs, swimming fifty lengths before breakfast, cycling thirty miles every Sunday and entering marathons. Well – something like that.

My six-year old grandson had a different angle on the whole event. He was very taken by the medal ceremonies and likes nothing better than to re-create them. My wife bought him a small pool table last year, so every time he visits we all have to take part in a pool tournament. He likes playing the game but his real enjoyment comes at the end. I've let him have my triathlon medals to play with. (After all, they're only bits of old iron and strips of ribbon). He uses a brass one for gold, a greyish looking one for silver and the rest all pass for bronze. The winner, which is always him of course, gets the gold hung around his neck and the rest of us take what's left. He stands on a stool while we all stand either side and sing the National Anthem. I don't suppose it's quite what Lord Coe had in mind but at least it's fired the young chap's imagination.

I have several techniques to stimulate my creative thinking. Spending time with my grandson is one of them. I think it's probably the best. After all – he inspired this post.

10 Financial Freedom Commandments

Here are my 10 Financial Freedom Commandments. Enjoy!

Summary of the Texas Bar Exam and a comparison

When I came back home from the bar exam, I slept a total of 3 hours that night. And my mom told me the following morning that I was whimpering in my sleep...like a fucking puppy dog. 

This will be the second bar exam I've lived through, and I'll be the first to tell you that Texas was infinitely harder than my first exam--I think this is a combination of the fact that I had an actual Barbri class to attend while studying for Arkansas, as well as the fact that Texas-specific essays made me want to jump off a building (Arkansas only has 6 essays, and they're multistate, not specific). I also don't think that the fact that I already have a law license helped either--the pressure to pass is NOT the same and the fear of failure is somewhat lessened, because...well, you've already passed once. And I'm not sure about you, but I thrive on fear of failure. 

Texas was also a lot different in terms of security--they wouldn't even let you have WATER bottles in the room, and I felt constantly dehydrated as a result (because even though they offered you water, who the hell is REALLY going to leave the room just to get a sip of water? Absolutely stupid). Arkansas tested in a hotel; Texas set us up in an arena. We were allowed to have bookbags in our testing room in Arkansas. Texas required you to have your ID and exam ticket out at all times and got twitchy about just about everything. 

And then there is the exam itself. Although I somehow managed to control myself enough to refrain from pissing in a Ziploc bag (seriously, who the fuck does that?!?!?!?), I'm not going to pretend that the test was easy--I felt a lot better about July's MBE set, and the Texas-specific essays made me want to cry. I am thankful about the fact that they tell you what to expect on the exam, but some of the questions were distinctly different than most essays you can imagine or would expect--their oil and gas question wanted you to define terms, rather than analyze facts and reach a conclusion. 

I stayed in the Holiday Inn Express about a mile away, and I think that was a pretty solid decision on my part. It was clean, offered a bar discount, and had coffee available at all times. I wanted to kick some little kid ass for hogging workout equipment (bunch of people there for a friggin boxing tournament for children....who the hell willingly lets their kids beat the shit out of other kids and allows for their children to welcome punches to the face?!!?!.....but I digress) and the hot tub was cold, but the showers were hot, the bed was comfortable, and the location was secure. 

The first day I tested, it was only a half-day and I went straight back to my hotel. The second day I got to meet one of my twitter friends (Zillyyyyy) and she was super nice enough to drive my pitiful ass to the exam (one way streets freak me the fuck out, no lie) and even nicer to let me study in her car between the exams. The third day, I managed to leave and walk a half mile to get a friggin awesome grilled cheese sandwich. This was all good. I also got to meet another twitter friend (Amby) who was sooooo sweet and got me a delightfully awesome bar-taking gift that I lerrved and made me feel all warm and fuzzy inside. 

All in all, this post is a clusterfuck of information, misinformation, and unorganized ramblings. I'm still not feeling human yet, despite the fact that I had a few margaritas yesterday and went to bed at 6:30 and slept for 13 hours straight. The bar makes you a horrible fucking person, uses you for a few days, then sends you on your way feeling 30x worse for wear (ooh, if you could have seen some of the people taking the bar--they looked like transients who sought shelter in the arena from the cold). I'm glad I survived, but don't feel especially confident in my attempt to become a Texas lawyer. I'll probably write a post in a couple of days explaining all the things I should have done better (like, oh, I don't know, STUDIED AGENCY) and what I know now that I wished I had known then (like, oh, I don't know, ALL THE TEST QUESTIONS), lol. 

But for now, I'm going to sleep. And hopefully I've gotten past the whimpering stage. I think I'll move into bargaining next. 

Who's Afraid of the Big Bad "B" Word?

Some of us seem to be so scared of the Big Bad "B" word these days.  No...I'm not talking about BANKS, I'm talking about BUDGETING.  
 

Some of us equate Budgeting with Dieting; and the reason why we may fail at Dietingis because we feel like we are going to DIE of starvation.  But, If we "DIEt the right way by eating 5 – 6 smaller meals a day, we will always feel full.  The best advice for a new and successful Diet is to start with small changes and gradually do more to change our eating habits and execute an exercise regimen.  Next thing we know, we realize that this is not a DIEt...this is a new Lifestyle!  Congratulations!

 

This same concept is relative to Budgeting.  Budgeting is putting our Spending on a DIET.  The best and most successful Budget (Diet) is to start with small changes in our spending habits.  For example:  Instead of going to the vending machine every day for your midmorning snack, bring a small bag of wheat thins or baby carrots to snack on; or instead of going to a restaurant for lunch, make your lunch at home or pack up your leftovers from the night before and take it to work with you.  These small changes will save you a nice chunk of change and probably a few pounds if you did this for a whole week.

 

Before we start any new BUDGET or Spending Diet, here are 9 things that should be done to ensure success!!!

 

#1. Establish your Financial Goals. 

Where do you want to be financially in 30 days, 3 months, 6 months, and 12 months?  This only sounds hard but it's really not.  We do this mentally all of the time but we just don't write them down.  For example:  In 30 days, my Goal is to reduce my spending by $100 or more. In 3 months my Goal is save $300 or more. Keep your Goals S.M.A.R.T. (Small, Manageable, Attainable, Repetitive, and Timed).

 

#2. Assess where you are. 

Before you build your Budget, do a Spending Diary for up to one week. Write down everything you spend money on, regardless how small the amount. Do this on a daily basis to get an idea of exactly how much you are actually spending and what you are spending your money on. You'll be surprised how those $0.60 bags of chips, 2 times a day for a week, adds up.

 

#3. Determine areas of change. 

Look at your Spending Diary and determine what can be modified or eliminated without it feeling like you are on a Restrictive DIEt. Think BIG but start with small steps.  This is marathon not a sprint!

 

#4. Build your map towards your Goals. 

Write down the steps you need do towards reaching each financial goal. Again, be S.M.A.R.T. about it!  Sometimes we get selective amnesia, so it may help creating an electronic Financial Vision Board and place it in different areas around the house and at work. (PLUG: Make sure you sign up for my Financial Vision Board Class!)

 

#5. Take those small steps ASAP!!! 

My mother used to say, "I'm going to start my diet on Monday!"  She said that every Friday for years.  Execution is Key!  How do you eat an Elephant? ... One bite at a time.  Again, "Think BIG but start with SMALL steps."  Then, gradually do more. 

#6. Get a Budget Coach. 

Share your Goals and Plan with a financial success coach that you feel comfortable with, respect and will take their advice when necessary or required.  This person will assist in holding you accountable to meet your goals and be there to help you get back on track if necessary.  (PLUG: Contact me, Madam Money, to be your Financial Success Coach. I would love to help you with your new Money Management Diet.)

#7. Reward Yourself. 

Make sure you reward yourself at least once a month so that you won't feel deprived.  Don't overdo it with a Shopping Spree.  Rather, set aside money every paycheck for that new outfit you want or those gorgeous shoes you have to have!!!  Hint: If it is that Flat Screen TV you were about to get a loan for...STOP!!!...build it in your budget and save up for it.  Trust me; they will have more TVs when you are able to afford it.  It might even be on sale by then.

#8. Get a Credit Check Up! 

Get copies of your credit report from all three credit reporting agencies (Equifax, Experian & Transunion) to see what is being reported to make sure everything is correct. If it’s not, make sure you dispute it. Get your free copy at www.AnnualCreditReport.com.

   

#9. Don't be so hard on yourself. 

Give yourself a break!  Reaching your goals will take time and consistency.  So if you fall of the wagon ... dust yourself off, get back on, and begin again.  Trust me, it’s ok!

 

I am excited about your financial future and am available to assist you through this process!