Tips from the President's Council

So, I’ve been a slacker on adding new articles and after looking at my page counter, I’ve realized 2 things: 1)  You must add new things to keep up interest 2) Short and sweet is the best way to go! Therefore, I’ve decided to reconcile.  To fix #1, I’ll add a tool, idea, technique, etc. at least 3 times a week, and for #2……..it will be short and sweet! 

Since I work in the financial planning/education world everyday, I feel like I have to share the tidbits of information that I receive constantly.  So here it is….all yours and it’s free.  I hope that it helps and you pick up some nugget of information that might help you with your personal finances. 

In 2007, President Bush started “The President’s Advisory Council on Financial Literacy”.  This group is headed by Charles Schwab (yes, as in “Ask Chuck”….The Charles Schwab).  It runs across 2 administrations and unless renewed, expires this year.  They give some great advice.  Here’s just a few: 

 Tips to Managing Your Money in Challenging Times

1. Understand how your bank or credit union account is insured. The Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA) insures all deposits at insured banks and credit unions up to at least $250,000. To check whether your financial institution is insured visit go to FDIC or The National Credit Union Association.

2. Understand how your investments are protected. Brokerage firms are required to be members of the Securities Investor Protection Corporation (SIPC), which insures customer securities accounts up to $500,000, including $100,000 in cash claims, when a brokerage firm fails. To learn more about these protections, visit the Securities and Exchange Commission.

3. Always keep lines of communication open with your mortgage lender. As soon as you know you may have difficulty meeting your mortgage or home equity loan payments, contact a counselor to work out a payment plan at HOPE NOW or by calling 888-995-HOPE (4673).

4. Protect your credit score. Only put on your credit cards what you can afford to pay back. For other hints on improving your credit score, visit the Treasury's interactive website. Also, to protect against identity theft, get a free copy of your credit report at annualcreditreport.com.

5. Make sure you have a rainy day fund. Keep an emergency fund worth three to six months of your monthly expenses in an insured account. If you don’t have an emergency fund, try to start one. Visit the budget calculators on the Treasury's website.

6. Don’t try to cut costs by canceling your insurance. Keep up with your insurance payments, and you’ll keep in place your protection against medical costs or major loss of personal property, like your home or car. Learn more in the Life Events section on MyMoney.gov. 

7. If it sounds too good to be true, it probably is. Watch out for scams trying to take advantage of all of the recent changes in our nation’s financial markets. Educate yourself at FTC.gov.

To learn more about your money, visit MyMoney.gov. For more information on the President’s Advisory Council on Financial Literacy, visit the U.S. Treasury Department’s Office of Financial Education web site at Treas.gov/ofe.