Tag Archives: financial education

Credit and Young Adults, aka Millennials

Credit - Red Billboard on Sky Background. Business Concept.

When it comes to those preapproved credit card applications, remember, what the big print giveth, the small print taketh away.

This is one of my favorite quotes about credit cards from Mary Hunt and it is mentioned in my book, Financial Freedom Party for Women, A Little Book about Money for Women.

I am never sure who is teaching younger people about the use of credit and credit cards, except the credit industry.  Not always a good idea to learn from those whose main interest is in making money by you purchasing what they offer!

So, I thank yahoo.com for a wonderful article titled: What real millennials want to know about credit.   Millennials are described as those in their 20s and 30s.

Please click here to enjoy the article, learn and share with your friends.  Even this one simple educational piece can undo a lot of bad habits learned by buying in to the very powerful marketing activities of those in the lending business.  As with any product, credit can be a valuable tool when used appropriately.  It’s just not for everyone.

 

 ffpluluthumbnail

 

 

 

Financial Freedom Party for Women, Workbook Edition for 2016 Now Available

ffpluluthumbnail

I often say that I agree with a well-known author who says she likes                          I wrote better than  I write.

Once something is written, published and out into the world it is a relief and an accomplishment.  For me, going back and updating is something that is really important and a luxury these days because of on-line publishing, but it takes focus and commitment.  This is true for all of us in so many important things we do in our lives.  Focus and finish.

So, I am very excited to tell you that a spiral bound version of Financial Freedom Party for Women, A Little Book about Money for Women, Workbook Edition 2016  is now available.  This version has some updates,  is easier to use as a workbook,  has a new cover to make it more fun, and a tagline of Party with a Purpose!

Just click here to access the private link to purchase the book, or click on the area above on the side of the webpage at the small x.  It will pull up the Lulu tab.

Please consider having a Financial Freedom Party and also ordering a book for your personal use.  This book  makes a great high school and college graduation gift and is a good resource for those getting married or in relationships which involve joint money decisions.  After working with girls and young women and teaching life skills over the last six year, I have learned that it is never too early to teach financial fundamentals.  The audience is pretty limitless!

We women, our families and friends work hard to earn money and spend it.  As Mary Hunt says, The degree of a woman’s financial  confidence greatly determines her success.  Let’s be part of leading women to financial confidence and financial freedom, even in these challenging financial times!

Debra

 

Women and Money, The Prospectus

questionmark

Have you been in this situation?  You pick up the prospectus for an investment and wonder, what is this?  It looks so boring, why should I even bother reading it?   How can it help me?

This post is to help you find some value in those printed pages and keep from being be overwhelmed by the information provided there.  Yes, it is more fun to look at magazines and catalogs which are colorful and clearly designed to attract our attention to buy, buy, buy.  Just think of the prospectus as part of the process for purchasing a specific investment and try to overlook the lack of pizzazz in the presentation.  Once again, this is an educational blog and not a recommendation to make a buying decision of any particular investment or product.  You may use a prospectus from any fund you wish as a tool to learn more about the investment.

Since my earlier posts were about a mutual fund which offers an investment option called gender lens investing, I’m going to refer to mutual funds as the type of investment—or security—for this discussion. There are, of course, other investments, such as individual securities like stocks or bonds, but mutual funds have evolved into a popular investment choice.   The prospectus for the Pax Ellevate Global Women’s Index Fund  is as good as any to use as an example and was mentioned in my  series about gender lens investing.

First, it is important to remember that the securities industry is highly regulated. The government organization with the main responsibility for setting rules and regulations is the Securities Exchange Commission (SEC). The organization which is responsible for setting a framework for firms (such as broker/dealers) and registered representatives (licensed individuals who work in the industry and serve clients), is called the Financial Industry Regulatory Agency (FINRA). Previously it was called the National Association of Securities Dealers (NASD). FINRA is not a government agency, but is referred to as a Self- Regulating Organization.  The SEC makes the rules and FINRA members (firms and individuals) implement them through more rules and regulations.  This is a simple explanation.  To learn more, please click here for the SEC website   and  click here for the FINRA website.

When you, as the client, make an investment in a mutual fund, you are given a prospectus. This is a regulatory requirement. The prospectus is supposed to be presented at the time of the investment, but there are some other guidelines which allow a slight delay. For your purposes, you should expect to receive the prospectus when you meet with your representative. It is pretty easy these days as the prospectus is usually readily available on-line.

So what is a prospectus? It is the story of the investment, in this case a mutual fund.  Some companies issue a separate prospectus for each fund.  Others, offer a booklet listing information about more than one fund.  The Pax Ellevate Global Women’s Index Fund  is one of seven funds listed in the prospectus we will be reviewing.  So when you look at the prospectus, please go to the index and you will see that  information about the Pax Ellevate Global Women’s Index Fund starts on page 49.

The prospectus contains a lot of information, but a good way to start is to locate the following information:

  1. The name of the company that manages the fund.
  2. The goal of the fund.
  3. The minimum investment for a lump sum and/or a periodic automatic investment.
  4. When the fund originated.  Information showing the long-term performance of the fund.
  5. Fees. What is the initial front load (cost to the investor) or a back-end load (cost to the investor)? What is are the annual operating expenses paid each year as a percentage of the value of the investment? Are there other fees and restrictions?

The best way to learn is to explore a prospectus and identify the items described above. Please link to the prospectus at   Pax Ellevate Global Women’s Index Fund and review pages 49-58 and page 89.  You probably commit a lot of time to making money and spending money.  So, please make a small commitment of time to understanding how to gain some value from a prospectus when considering an investment.

Next time–a review of the details provided by the  prospectus for the Pax Ellevate Global Women’s Index Fund.

 

 

(This information is designed to educate you about basic financial management concepts. Questions relevant to personal finances specific to the individual should be address to an appropriate professional to ensure that the situation has been evaluated carefully and appropriately. The Authors and Publisher specifically disclaim any liability loss, or risk which is incurred as a consequence directly or indirectly from the use and application of any contents of this work.)

Copyright2014©by Debra Hadsall

 

 

 

 

 

Financial Freedom Party for Women Reading List

booksclipart1

  • Reading is really important to me.  If you read blogs, it  is probably important to you also.  I find that reading is an investment in time which gives my life balance and provides an outlet for intellectual curiosity,   Reading is relaxing, challenges my belief systems, and expands my horizons.  I acknowledge that not everyone likes to read, so my book Financial Freedom Party for Women, A Little Book about Money for Women is short (78 pages total), fun, and covers financial management basics.  Hoping the reader will be inspired to learn even more, my book includes a short reading list of books I have enjoyed and which relate to the mechanics and emotions of the world of money.
  • The first book on the list is by Robert Kiyosaki and is titled Cash Flow Quadrant.  Personally, I am a fan of Kiyosaki and appreciate how he gives the reader a way to think about what I always described as “rich people”.   I mention his Cash Flow Quadrant in my book.  I like the way he describes the four ways of making money.
  • Sometimes I feel we all spend so much time thinking about what kind of job we will get and the education needed to reach that position, that we skip the first part of the conversation.  Logically the conversation should start with determining, what type of lifestyle, level of income, and accumulation of assets we are trying to create.  A lot of folks talk about “getting rich”, but do they understand how that differs from being financially comfortable, middle class, or even what is referred to as the “new affluent”?  Kiyosaki’s writings give us an idea.  He even created a cash flow board game.  Some years back, I played it with group of friends and we had a great time while learning about the value of getting into the part of the game where the cash was flowing.  Oh, if it had only been real life and not a game.I noticed the Kiyosaki has a new book out which became available in April 2013.
  • Will you appreciate Kiyosaki’s writings, I don’t know.  But then you won’t know either, unless you try.
  • Hope you will read my book first and then pick some from the reading list.
  • Until next time.

Debra Hadsall

logownedy (2)

www.financialfreedomparty.com

www.ffptalk.com