3 Key Money Math Skills
Key Takeaways Compound interest, computational skills and amortization are the three key money concepts we all need to master. As Einstein observed, compound interest is a saver/investor’s greatest friend and a debtor’s greatest enemy. Creating a budget and sticking to it are essential to building wealth and a secure financial future. Budgeting just takes discipline […]
The State of Student Debt
Key Takeaways More than 70 percent of college graduates have outstanding student loans—with an average balance of $37,000—when they graduate. Studies show millennials are far more concerned about paying off student debt and increasing their savings than they are about their retirement. The sooner you can pay off student debt, the sooner you can start […]
The American Dream —Your First Home
Key Takeaways Before you embark on the dream of owning your own home, make sure there are no errors in your credit score or financial history. If you can’t come up with a 20 percent down payment, you can often still buy a home—but you’ll typically need mortgage insurance. Many new homebuyers underestimate how much […]
Know Your Loan Basics
Key Takeaways Four basic components of any type of loan are time, interest rate, loan amount and payment. Young adults tend to have four types of loans: student, auto, credit card and mortgage. A good credit score will give you much better terms on any type of loan—and save you thousands of dollars over your […]
When Funding Your Child’s Education, Let’s Not Repeat History
Key Takeaways Student debt has doubled over the past seven years. Newly minted 2016 graduates have an average of $37,000 in debt—some have debt loads in the six figures. 529 plans are excellent, tax-advantaged ways for most parents and grandparents to save for a child’s education. Start saving as early as possible in the child’s […]
Used Car—Double the Benefits!
Key Takeaways Don’t tie up your cash when you’re young, but you have to be smart about your loan terms. Making slightly larger, or more frequent, payments than you’re required to can add up to HUGE savings down the road. A used car is often better than new when you’re young—especially when the savings is […]
Side Gigs
Key Takeaways Stagnant wages and large student loans have made it difficult for many young people to move down the road toward full financial adulthood. But there have never been more ways to supplement your income with freelance, independent contractor work. Freelance, independent contractor networks can be a great backstop for sudden job loss and […]
To Rent or Buy?
Key Takeaways Owning a home gives you great peace of mind, but it comes with a lot more responsibility than renting. Budget 1 percent of your home’s value each year for routine maintenance. Using a rent versus buy calculator is a good start, but it won’t account for the emotional satisfaction (or stress) of being […]
Good Debt—Bad Debt
Key Takeaways When it comes to taking on debt, always think about what it will give you in the end. Fund appreciating assets; don’t fund instantly consumed or depreciating goods. Credit cards are not evil if paid off in full. Loans for tuition, homes and businesses should help you build lifelong wealth if managed intelligently.