Noelle Brianne|Education Blog

Catering to individuals and businesses on the South Shore for more than 20 years, Damon, Topham & Company has further diversified their services and created DTC Financial Associates, LLC.

DTC Financial Associates, LLC provides personal financial planning which includes retirement, review of life and health insurance as well as college education financing. They also provide financial planning for small business owners, which includes review of health insurance benefits for employees; wealth management; succession planning and exit strategy consultation.

According to Michael Damon, CPA, “We’re often approached by our accounting and tax clients inquiring about financial planning services. As we are well aware of our clients’ financial and tax status, we are in the position to provide qualified financial planning counsel.”

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Over the years, Damon, Topham & Company has evolved into a full service multi-disciplined firm. In addition to comprehensive accounting, audit and tax services, the company’s division of Business Development Partners assists business owners in identifying quantifiable results which may be achieved such as increased sales and market share and reduction of overhead and operating costs.

Damon, Topham & Company’s division of Advisory Services provides such services as litigation support; computer systems analysis; executive search and recruitment; management advisory services and bank and venture financing services.

To learn more about Damon, Topham & Company, visit their website at

www.damtopcpa.com

About Damon, Topham & Company

Damon, Topham & Company, LLC, Certified Public Accountants and Business Development Advisors. Utilize the “Damon, Topham Advantage”- go beyond the traditional services of auditing, accounting and taxation. Damon, Topham & Company provides business valuation, estate, individual and corporate tax planning and savings, financial planning, consulting and financing solutions for you, your business and your family.

Damon, Topham & Company, LLC, is located just off Route 139, 475 School St., Suite 8, Marshfield, MA. For a complimentary evaluation, please contact John T. Topham at (781) 837-1993 or jttopham@damtopcpa.com. Or visit the company’s website at www.damtopcpa.com.

Capital Analysts Incorporated, a Registered Broker Dealer and a Registered Investment Advisor, Member FINRA/SIPC. DTC Financial Associates, LLC and CAI are independent non-affiliated entities.

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It is very important to get educated. Education plays a very vital role in everybody’s life. There is a lot of pain and hardwork devoted by students for their education. Finance is the biggest barrier in the education of students. Sometimes the need of sudden finance put several students under severe pressure as they might not have enough finance to deal with such urgent needs that may require an instant financial relief. It is possible that all parents don’t have sufficient funds to finance the sudden expenses on the education of their children. At such time Quick Loans UK will provide the great provision of quick student loans, which offer quick financial assistance so that they can deal with all their education related small needs on time.

The best way to finance your college education is quick student loans. Basically, these loans help covering the expenses a student incurs in college. These loans are the most beneficial loans because these loans do not support placement of collateral, credit checking, lengthy paperwork and faxing formalities.

There are several specified requirement that should be there in the student to get eligible for obtaining the loan amount from quick student loans. These are as follows:

A student must be a UK resident with the age of 18 years or more. A student must have active checking bank account A student must be pursuing his or her education on the regular basis A student must do some regular course from the reputed university A student must use the borrowed amount for the education purpose only

Quick Loans UK is the perfect medium to get quick student loans with better terms and conditions. Quick student loans are offered with small amount for meeting short term urgent expenses like buying books, paying off college fees, library fees, college tour etc. They come with a bit higher interest rate as these loans are given without any security until you get a job.

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Time has distorted and done the years education is veto more restricted to write, paper, classrooms, blackboards and so forth. Today after moment in time is deemed to be more crucial than money and associates in even in remote corners of the earth crave to attain education and its reimbursement, online education has undeniably move toward up as a desired bonus.

Online education is education via the mode of Internet with the purpose of can be gained synchronously or asynchronously. At represent online education is far superior from the predictable mode of learning (i.E. Disappearing to universities, attending classes and so forth) in many ways. Online education is not in a minute a resources to put up shrewd mistreat of moment in time but it is plus acquiring the most excellent potential degree in academics anytime anywhere.

Though merits of online education outweigh the classroom education in many respects, its peak drawback is its cost. Online education is significantly expensive in comparison to usual university education. This is in particular the good sense with the purpose of all private cannot fantasize of getting an online degree.

But with a heave in bribery in place of online education about universities imparting it comprise devised several ways to financially assist the aspirants. The foremost and ideal step in this direction is education loans and giving scholarships.

Whereas lend or arranging finance in place of online education is concerned the foremost step is to fill up your FASFA i.E. Free Application in place of Federal Student Aid. The FASFA is an claim available by the Department of Education. This claim gives the aspirant an image of the kind of funding he or she is eligible in place of. Once the claim form is accurately packed and sent, stop in place of the confirmation. Usually receiving a confirmation correspondence is a make a difference of individual or two days. The confirmation correspondence will passing you as regards the kind and total of programs you preordained in place of you. This process is quite plain and trouble-free to tag on.

After acquiring the confirmation correspondence, call the Financial Aid department of the desired college/s. The monetary aid executive in attendance will explain you the various types of monetary aid junk mail on hand with the purpose of vary from work-study programs to government aid. He will let somebody have temporarily you the requisite forms in place of singular colleges. Finally it is on your discretion which college to opt in place of though the executive will undeniably tour guide you in your selection.

Once the lend claim is fulfilled, it will be sent to the discipline in place of the process of verification and doling out. Usually banks carry out not bank the students straight but via the concerned introduction. The deposit sends the money on the commencement of the session.
This is useful to both the undergraduate and the introduction.

Apart from loans in attendance are scholarship programs such as the desire Scholarship Tax Credit with the purpose of offers a limit 100% on the number one 00 and 50% on the minute 00 spent in place of enlightening purposes. Similarly the Lifetime Learning Tax Credit, the Higher Education Tuition and Fees Deduction are other resources to save money on your online enlightening expenses.

America’s economy has taken a rather unpleasant downturn that has had significant impact on most American citizens especially those whose monthly income is limited. Single dads, who haven’t completed their high school studies, are usually working on jobs with monthly payments that aren’t sufficient to provide a reasonable standard of living for them and their children. The president has increased the educational financial aid offered to single fathers to help them get back to school and earn their degrees.

The newly increased School Grant is helping single dads to get back on track and earn their high school degrees. In addition, governmental financial aid can be available for single dads who want to go even further by earning a college degree. Presidents newly legislated bill is expected to grant 5000 thousand dollars per semester for each eligible single dad. The new federal Pell Grant will pay for 18 semesters of education. This sum of money is channeled to pay for fees, books, online educational courses and internet connection bills for single dads who prefer to earn their degrees online.

The increased educational federal fund could be exploited to finance conventional learning courses as well as online learning programs. The recent years have witnessed a marked development in the techniques of online learning (E-learning). The new era of E-learning and online tutoring have offered numerous learning solutions for single dads who want to learn but can’t leave their kids home alone. You can attend your class while you’re in your pajamas, who simple is that? Some online courses even offer virtual interactive techniques; you can raise your hand and ask a question, while you’re listening to the tutor’s live lecturing.

To receive the new Federal Pell Grant, you must first fill a free application for federal student aid (FAFSA). The FAFSA can be easily filed online through the service’s official web site. The FAFSA will have to determine the dependability of the applicants and inquire about some data that will examine eligibility for receiving federal educational financial aid. Filling the FAFSA will also help you find a suitable school or college that is accredited and accepts federal scholarships.

The Governments newly legislated bill for increasing educational financial aid for single dads is a social achievement that is aimed at helping a large sector of middle class families. If a single father can finish his high school studies, he can seize better job opportunities which can help his family climb up to a higher standard of living.

At the turn of the millennium, more people are starting to realize that the world is wealthy. The power of today’s system allows one to find ways to achieve financial freedom without the critical essence of hard work. With smart work, there is a different sense and approach to life.

Sadly, the current educational system is left with classical teaching. Most of the things that we learn in college refine us to work hard and work for money. With the number of new degrees and graduates cropping up, most of them still get stuck with 20th century thinking. Thus, people who seek financial literacy in the 21st century know what the trends are and act on it with a positive mindset.

The Scope of Literacy and Financial Literacy

As a standard, literacy is defined as the ability to read and write. Taking a step further, functional literacy is the term used to describe students with the ability to use their reading and writing abilities in a functional way. As a basic concept, literacy is learning what everyone should learn.

Financial literacy is therefore the ability of people to acquire knowledge when it comes to basic financial strategies and information. A good 90% of investors will tell you that they wish they knew more about the intricacies of finances and investments. Financial literacy is not so common after all. With 21st century education, financial reading and financial writing can be used to achieve financial freedom. Financial literacy should not be a far flung concept for people at this age. (more…)

 

If you need financial aid for your education, the best way for you to receive it is to fill out the application form for it. Unfortunately, conditions under which financial aid can be granted differ in every university and fund. Many points are taking into consideration when thinking over whether to give financial aid to a student or not.

College Scholarship Service Student Financial Statement

Under this statement, both foreign and citizen students are provided with grants for education. But the financial maintenance of the family of each student is taken into consideration. And if commission will decide that money of the family is not enough to cover all the expenses for education they can give financial aid to a student and it will last all the period of education without any need to prove the same poor condition in the family.

This kind of financial aid is very popular among foreign students and citizen students, whose families receive social relief.

Other Types of Financial Aid.

All other kinds of financial aid are given only for one education year and they are needed to be proved at the beginning of every course. It means that these financial aids are provided on competitive basis, where best students are granted with free or partially free education.

Financial aid provided by state is commonly full, and private organizations and funds usually provide partial financial aid.

Also, there are conditions, when students receive full financial aid without any competition. It concerns orphans and other people of such category. They are provided with full financial aid for all the period of education without need of confirming their level.

Financial aid is a good way out for those who cannot afford to pay for education due to many reasons. Financial aid is paid from tax money (if state aid), or from donations (if financial aid is paid by private organization).

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Getting a financial aid for education can be an easy task for some students. But, it is not the case with every student. In this respect, it is very important for students to be aware of the essential procedure and method for applying a financial aid for his/her education. Students can consider the following tips in order to understand the proper method of applying for financial aid effectively.

Some useful suggestions

The first step a student must do is to search for the financial aid providers. Also, it is must to collect information regarding students who have applied for such financial aid previously. Consider people who have successfully got the financial aid. Obtain valid guidance from those people regarding how to fill the application effectively in such a way to impress the committee.

The second step is to find a valid but true reason for which the educational financial aid is needed. When providing the reason in the application, students must make sure that they give only true reason, so that their application will not be rejected in case the committee verifies the reason.

The third step is to concentrate more deeply when writing the financial aid application. That is, the applicant must use a good language and thought organizing skills when writing financial aid essay. It is necessary to describe the reason for applying the financial aid clearly and impressively. Ensure to impress the financial aid committee with the quality essay. The financial aid essay must reveal the writing talent and financial situation of the student clearly in an impressive manner.

This article provides the essential procedure that must be considered when applying for financial aid. There are also many other useful tips, regarding financial aid application, available over the internet.

Getting a financial aid for education can be an easy task for some students. But, it is not the case with every student. In this respect, it is very important for students to be aware of the essential procedure and method for applying a financial aid for his/her education. Students can consider the following tips in order to understand the proper method of applying for financial aid effectively.

Some useful suggestions

The first step a student must do is to search for the financial aid providers. Also, it is must to collect information regarding students who have applied for such financial aid previously. Consider people who have successfully got the financial aid. Obtain valid guidance from those people regarding how to fill the application effectively in such a way to impress the committee.

The second step is to find a valid but true reason for which the educational financial aid is needed. When providing the reason in the application, students must make sure that they give only true reason, so that their application will not be rejected in case the committee verifies the reason.

The third step is to concentrate more deeply when writing the financial aid application. That is, the applicant must use a good language and thought organizing skills when writing financial aid essay. It is necessary to describe the reason for applying the financial aid clearly and impressively. Ensure to impress the financial aid committee with the quality essay. The financial aid essay must reveal the writing talent and financial situation of the student clearly in an impressive manner.

This article provides the essential procedure that must be considered when applying for financial aid. There are also many other useful tips, regarding financial aid application, available over the internet.

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When students do their higher education, they may seek out for some of educational loans to manage the money needed for their education. Particularly, students belonging to a poor financial background can be benefited with the help of financial aid. Some schools and colleges offer financial aid for bright students who are in a poor financial situation. This article provides some help for students regarding how to get financial aid for education. Need not be really poor for applying educational financial aid There is no specific qualification for applying a financial aid. Every student is eligible to apply for a financial aid for their education. But, it is not necessary that everyone will be granted financial aid. Some of the valid qualification that is needed to apply for financial aid is as follows: 1.The applicants with valid Social Security number. 2.The applicants with part-time or a full-time high school diploma student or graduate education student. 3. The applicants with education from an authorized school. 4.The applicants with good records of marks. 5.The applicants with financially poor background. All these points must be considered before applying for a financial aid. Moreover, qualified students must know the procedure required for applying a financial aid. Significance of providing valid reasons Students must provide the reason for which they are applying for the education financial aid. Only then, there will be more possibility to get the finance granted. Some of the valid reasons that can be included in the application are as follows: 1.Non-availability of potential earning person in the family. 2.Ruining of financial organization that promised to avail educational loan to the student. 3.Poor financial background of the student. 4.Presence of health problems or related problems for the student. The above reasons are just a few valid reasons. It is necessary to provide valid and true reason in the financial aid application.

CFP:Financial Planning:career scope|course|cfpindia|cfppune

CFP:CFP : FINANCIAL PLANNING TO MAKE APPROPRIATE INVESTMENT DECISION

IMS Proschool imsproschool1@gmail.com
Thus, 18 June 2009 07:54:50

Financial Planning:- 8000+ Stocks, 1000+ Mutual Fund Schemes; Equity, Debt,
Commodities and Real Estate; Investment, Insurance, Taxation and Estate planning. You can help your client sift through these ever increasing and complex choices. You can grow wealth for
your clients and for yourself by building expertise in the financial planning process. IMS Proschool has trained over 6,000 industry practitioners and emerged as the most preferred
education providers for financial planning. With the best study material, quality training
and flexible training options we are best placed to help you get qualified in Financial
Planning. Benefits of Financial Planning Education Financial Planning education imparts the
requisite knowledge and skill-set, that enables you to provide quality advice to your
client on a consistent basis and create wealth for your client’s in the long run. 1. You
would know the tax benefit opportunities for your client based on his residential status As
a financial advisor you will know how the tax liability of your client, who needs to go abroad for job requirement, would change if he travels before or after 29 September in any
year.
If he travels before the said date he would become NRI for tax purpose for the relevant AY and would not pay taxes on the income earned abroad. And in case he travels after
the said date he need not pay tax on the income earned in India and abroad. Tax planning involves utilizing exemptions, deductions, rebates and relief’s provided in the Income tax Act.

2. You would know the advantage of paying the EMI in beginning of the month viz a viz end of the month You can save lot of money for your client by a simple advice to pay EMI for a housing loan in the beginning of the month. Consider a Housing loan of 30 lakhs for 20 years at 11 %, if you choose to pay EMI at the end of the month you would pay 67000 more which is over 2 % of your loan amount ! Time value of money concepts in financial planning helps you to analyze and compare different cash flows and choose the most beneficial set of cash flows to pay or receive.
3. You will be able to calculate the exact retirement corpus that one would need for peaceful retirement. Let’s take a case of a person who has expenses of 3 lakh per annum today, he would need a retirement corpus of 1.70 crore (assuming inflation of 5 % and rate of return of 9 %). Retirement planning assumes importance because of people’s inability to earn in sunset years, inflation and lack of social security. Financial planning helps you work out how much to invest for your sunset years to be truly blissful. <BR>
4. Client’s look for growing their net worth every year, your advice would enable them to enhance their net worth year on year. With Personal Financial Planning tools like – Discipline, Diversification and Investments in accordance with clients risk appetite you can ensure your clients growth in net worth year after year and extremely satisfied clients.
5. You will be able to analyze and rank the Top 10 mutual funds out of the 1500+ schemes available? Most people select MF funds on the basis of past Month / year’s performance. Chasing recent performance could prove tricky because it could be an aberration. Financial Planning
emphasizes to track investments like Mutual funds over 5/7/10 years along with Fund managers expertise, experience and his association with the fund. Further one needs to check out if the objective and investment strategy of the fund matches the investor needs. Other parameters like
expense ratio, turnover ratio and trategy of the fund matches the investor needs. Other parameters like expense ratio, turnover ratio and standard deviation also needs to be considered.
6. Insurance is must and a necessary expense (not an investment or Tax saving instrument as projected). With Financial Planning, you will be able to help your client reduce his insurance expenses and at the same time enable him to cover all the risks. Insurance is the most misunderstood concept. It is looked upon as a tax saving or an investment tool. Insurance is an economic tool to transfer the risk. Taking Life Cover more than needed is a waste of precious resource and underinsurance could put the family of deceased to hardship. Further it needs to be assessed if insurance is required for property & other valuables and professional negligence. Financial planning teaches you “How to plan for your client’s insurance requirement”.
7. Financial Planning will enable you to make appropriate investment decisions for your client. If your client looses his sleep over investment decisions, there has been a misinterpretation of your client’s risk taking ability. Financial Planning lays a strong emphasis on appropriate risk profiling. It involves both quantitative and qualitative analysis for before zeroing on a customers risk profile.

8. One single solutions to all your clients is a disaster. Financial Planning equips you in providing different solutions to different client based on his need. Have you been trying to sell Mutual Funds or Insurance products to all your client’s – be it someone who is young and just started his career or middle aged person who has worked for ample years or a person who is retired?Well if so, you must have had low sales conversion and dissatisfied clients. There is a need to shift focus from product sales to a solution provider. You need to understand the financial goals of the client and work towards achievement of the same through a financial plan.

9. Enables you to face the challenge of ever demanding clients. Client’s today have ready access to information on financial products & services via various sources – media, television, internet & print. The awareness level of investors is increasing with respect to the working and benefits of the various products & services available in the market.

Therefore it is becoming increasingly difficult to practice on “only commission” model. Financial planning widens your scope of services and enhances your knowledge and skill set enabling you to switch to a “commission + fee” or “pure fee” model.

In this model, financial planning becomes the core of advisory services and products become the means to achieve the plan.

10. Increase your clientele – how many of your clients have recommended your service to their friends and family? If a client recommends you to others, it speaks of your quality of advice and the relationship you share with your clients. But if they don’t, you need to do a bit of self introspection and figure out where are you lacking? trategy of the fund matches the investor needs. Other parameters like expense ratio, turnover ratio and standard deviation also needs to be considered.  Requirements for CFPCM Certification There are two ways to obtain CFPCM Certification:

1.Regular Way

2.Challenge Status for professionals

Both require candidates to fulfill certain criteria for acquiring CFPCM Certification.  Requirements for Regular way

1.Education: Candidate must be atleast a 12th Std Pass/Equivalent.  The candidate should undergo the training program with FPSB India’s approved Education Providers. Education criterion demonstrates to the public that the candidate has acquired the necessary knowledge to become a Financial Planner.

2.Examination: The candidate has to pass the CFPCM certification exam i.e. he has to clear all the five papers  viz. Risk Management & Insurance Planning, Retirement Planning & Employee Benefits, Investment Planning , Tax Planning & Estate Planning and Advanced Financial Planning.  By passing the CFPCM Certification Examination, the candidate demonstrates to the public that he/she has the required level of competency to practice Financial Planning.

3.Experience: The experience criterion builds confidence in public that the candidate understands the counseling nature of personal financial planning. The candidate has to complete 3 years of work experience either pre or post Certification exam in case he/she is a graduate. In case of non graduates the criteria is six years of work experience.

4.Ethics: On completion of the education, examination and experience requirements, the candidate has to sign declaration for adherence to FPSB India’s Code of Ethics & Rules of Professional Conduct. know more Requirements for Challenge Status Students who are already professionals for example Chartered Accountants, MBAs, ICWA, etc and are interested in acquiring the CFPCM certification can do so in a shorter span. FPSB India recognizes that these professionals already have some of the skill sets that are required in a Financial Planner.

Hence, it has introduced the “Challenge Status Program” which enables professionals (both in terms of education as well as experience) to acquire the CFPCM Certification in a more time efficient manner. 1.Education: A candidate must be a CA, CFA (US), ICWA, CAIIB, CS, LLB, PhD, M.Phil, PG, Licentiate/ Associate/ Fellowship of Life Insurance, Actuary, FFSI & FLMI from LOMA, Civil Service Examinations by UPSC.

2.Examination: The candidate has to clear only Paper 5 i.e. the Advanced Financial Planning paper.

3.Experience: The candidate should have work experience of 3 years in Financial Services Industry prior to the CFPCM Certification Exam. In case the candidate is working in a Non- Financial Industry the work experience should be 5 years prior CFPCM certification exam.

4.Ethics: On completion of the education, examination and experience requirements, the candidate has to sign declaration  for adherence to FPSB India’s Code of Ethics & Rules of Professional Conduct

At IMS, our goal for the past 33 years has been simple – Build a long term successful career for our students. IMS Proschool is an extension of the same mission although the route is different. Economic growth over the past decade has created new opportunities for students and IMS Proschool is helping students tap these opportunities. IMS Proschool’s goal is to provide these industry relevant skills to its students in the shortest possible time, get them quality jobs that give them quality experience and create a long term career for them. In the process,

we will also help the industry solve its manpower issues. IMS Proschool Success Created over 1000 Associate Financial Planner’s Created over 100 CFP’s in short span of 24 months Trained over 5000 candidates on Financial Planning and Wealth Management More than 2000 CFP enrollments in last two years. IMS Proschool Programs NCFM Certification in Financial Modeling CFPCM PDP- Retail Store Operations Management What makes IMS Proschool Programs unique?

Focused, practical and relevant programs. Programs are for short duration. Range of options to choose from Course Content developed with inputs and feedback from industry. Programs are delivered by industry practitioners. Programs are available across the country. Trainer to the Industry

State Owned Banks – SBI, BOI, SBBJ Foreign Banks – CITI, Deutsche Security Houses –Kotak Securities, ICICI Direct, Motilal Oswal, Tata Securities Mutual Fund Companies – Sundaram BNP Paribas, Optimix. Insurance Companies – ICICI Prudential Institutional Tie- ups Partner of NISM, an initiative of SEBI (Security Exchange Board of India), to create Financial Planning proficiency among students across India. NSE India for Financial Modeling Certificate program Who should join IMS Proschool?

Fresh Graduates wanting to acquire job specific skills Skills required for surviving in challenging business environment is changing every year. Besides your graduation, you need these specific and relevant skills to get a job and to build a career. Working Professionals looking for enhancing skills Those of you who have joined recently, need to quickly enhance their skills and strengthen your resume, to compete effectively and build a long term career.

Professionals who want to shift Industry For most of us first job is, the first job that is offered to us. Often we find that it is not what we wanted and should spend our lives doing or it really does not offer the growth we expect. If you are looking to shift into sunrise industries like retail, KPO or financial services, then IMS programs can help you acquire skills and make the transition.

CERTIFIED FINANCIAL PLANNING:-

IMS Programs

Classroom Program – REGULAR

Classroom Program – FAST TRACK

Distance Learning Program – PLUS

Distance Learning Program – REGULAR

Teaching Methodology

The entire program will be taught with lot of examples to understand application of theoretical concepts. The classroom program as well as online sessions will be conducted by experienced faculty from the industry. The online training sessions will be conducted live by our instructor, via the web. All you need to have is a PC with the required minimum configuration. The session will be voice and presentation based and would be as efficient as the real classroom sessions.

Online reference material will be provided to students immediately on enrolment. The students will be provided user id and password to access the course content from IMS Proschool website.

IMS Certificate

All students who complete the course successfully will get a certificate from IMS Proschool.

IMS Certificate

All students who complete the course successfully will get a certificate from IMS Proschool.

In which City is the program offered?
Program is offered in Mumbai, Pune and Kolkata.

How to enrol?

Classroom Program REGULAR & FAST TRACK

Step 1: Download the Enrolment Form our website OR obtain the same from your nearest IMS Proschool centre.

Step 2: Submit the IMS Proschool Enrolment Form along with two passport size photograph and a Demand Draft of the relevant amount drawn in favour of “IMS Learning Resources Pvt Ltd.” payable in Mumbai to the IMS Proschool Centre where you would like to attend the program.

Distance Learning REGULAR & PLUS

Step 1: Download the Enrolment Form from our website OR obtain the same from your nearest IMS Proschool centre OR

Step 2: Submit the IMS Proschool Enrolment Form along with two passport size photograph and a Demand Draft of the relevant amount drawn in favour of “IMS Learning Resources Pvt Ltd.” payable in Mumbai to IMS Proschool, 67, Jayant Building, Jain Hostel Road, Near Sion Circle, Sion (West), Mumbai – 400 022.

Posted by IMS proschool ,PUNE
click here for more detail about the programmeIMS proschool
IMS Learning Resources pvt. Ltd.1229/A, Narhari,Ist floor FC road,next to sagar arcade,DECCAN PUNE:411004

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Financial literacy is important at any age in life.  Knowing how to spend and save money is a necessary expertise, especially in today’s turbulent economy.  As college students, many of us have student loans, credit and debit cards.  These economic resources, if used recklessly, can lead down a dead-end road called debt.  Financial literacy must come about now more than ever before.  The current economic conditions are frightening, and require attention immediately. The economy has reached a nerve-racking low for the first time since the 1980s.  Today people are saving less, spending more, and incurring debt at faster rates than ever before.  The American public’s lack of financial knowledge is one of the factors that have significantly contributed to the current state of the economy.  Financial education may be foreign territory to some, but its magnitude can no longer go overlooked.  The means to achieving financial knowledge is not a difficult one.  Yes, certain obstacles stand in the way, but it is nothing that cannot be accomplished.

            The lack of American’s financial knowledge is clearly evident by the mortgage catastrophe.  Homeowners were simply ill-equipped to comprehend all of the information about sub-prime loans and how they function.  Lenders never fully disclosed all of the risks associated with these loans.  If the public educated themselves with even basic financial knowledge, homeowners would have been informed of the dangers related to sub-prime mortgages.  The economic situation would look brighter and healthier because people could have made financially sound decisions.  However, we are not financially knowledgeable; it is a direct reflection on the economic instability we face today.  Banks and other financial institutions, who lent these hazardous loans to high-risked consumers, are collapsing. Once powerful and high standing banks, such as Bear Stearns and Wachovia, have now become just some of the most recent victims of the crisis.  The federal government and us, the American people, are forced to pick up the pieces we have left, and try to put them back together.

            In the past Presidential election, the economy was the top concern of the voters and the candidates.  Voters overwhelmingly chose the best man they believed would progress the nation in the right direction.  President Obama realized that the turbulent stock market has impacted everyone.  It has severely hit hardworking American’s 401Ks.  401Ks are individual retirement savings.  This creates a significant problem because so many households arrive close to retirement with little or no wealth.  He plans to take “immediate action to rescue the banking industry, stock market, and housing crisis.  He also calls for current tax code revisions to make it easier for American taxpayers to understand, plans to initiate a five-star rating system so every credit card consumer comprehends the risk associated with every credit card, and ensure that consumers understand the concepts and terms of the various loans and mortgages.  These strategies make it easier for the public to understand financial concepts, and hopefully lay a foundation towards financial literacy. 

            Obama’s competition, Senator John McCain, had similar ideas to reboot the economy.  He supported my argument about how the lack of financial knowledge and financial institution’s inconsistencies significantly contributed to the mortgage crisis.  If elected President, he would have introduced actions that would make it easier for the public to understand certain economic concepts.  These plans involved making simpler tax code and a student loan continuity plan. 

            Both candidates realized and acknowledged that the economy desperately requires repairs. When the economy suffers, the people do to.  The vicious cycle continues.  When times are good, Americans have jobs, earn an income, save money, and energize the economy.  When times are bad the opposite occurs.  Unemployment is high, workers earn less, save little, and the economy suffers.  With times being bad, the public feels the effects.  Change must happen, and one of the most empowering changes we can make is for people to obtain financial literacy. 

If not, the cycle continues.   

            In more recent years, Congress and state legislatures have acknowledged the importance of financial education in public schools.  Now several states have mandatory financial literacy programs.  Some of these educational programs include the Jump$tart Coalition.  They reported that some 31 states have approximately 156 pending bills before legislative bodies addressing financial literacy.  Another group helping to tackle financial education is the National Endowment for Financial Education.  Financial education is not only needed at the high school level, but learning the basics as early as Kindergarten has been proven effective.  The more exposure children and teens have to the information and resources, the better chance students have of absorbing and implementing the knowledge. 

Schools have put financial education on their low list of priorities.  However, trouble arises because parents at home do not provide this education either.  Parents themselves are not financial experts.  In fact, they lack vital financial knowledge as well.  According to a 2000 Jump$tart survey, it shows that young adults who spend time discussing finances with parents are no more financially literate than those who spend little time doing so.  How can children and teens receive the necessary financial education to ensure that they can make financially sound decisions?  The answer lies within the state and national governments. Programs such as the Jump$tart Coalition and the NEFE provide as much education and financial services as possible.  However, more government funding is needed to ensure that these services are available in the future.  President- elect Obama was mum about where such funding would come from.  He did place a funding emphasis at the state level.  National policy must set mandatory financial education classes at each level of schooling and provide some funding; states should be accountable for funding as well.  If the American population does not achieve financial literacy, the economic pattern of expansion and recession continues to circulate, as history has proven. 

            Endless surveys have been conducted to show the public just how little financial literacy the population has.  And somehow they provide us with the same message, that Americans lack financial education.  Each survey, given by various groups, provides questions in four general areas: income, money management, spending and credit, and saving and investing.  The samples for the survey have been drawn form a listed provided by the United States Department of Education.  Surveys are distributed in non-business related classes.  Overall, surveys are given to high school students because it is generally the last time students are compelled to learn a subject matter they may have no interest in.  Also, a large student body makes it easy to administer the survey to large group, which provides feedback.

The financial industry has become more and more complex in recent years.  It continues to reshape as financial markets change.  People need to become financial literate, but no matter how much education one receives, motivation ultimately determines a person success.  Despite the importance of financial literacy, surveys demonstrate that American youth and adults do not possess the basic knowledge needed to make good financial choices.  Why? Motivation plays a leading role in individual behavior.  Having the motivation to learn and retain the knowledge results in achievement.  Lacking motivation often results in failure.  Motivational variables significantly increase a person’s ability to explain differences in financial literacy.

             Motivation and education go hand and hand together.  To become educated, an individual must be motivated.  Therefore, the financial industry has to be motivated to provide the proper information to consumers.  The role of information in everyday lives plays an important role, especially consumer information.  Various products provided certain information.  Nutrition labels aid consumer decisions to buy certain food items, as do the consumer reports for the safety of motor vehicles. However, disclosures for financial products do not have that same affect.  Labels and disclosures on financial products and services provide information and provide regulatory compliance and liability protection for financial product and service providers.  Where they seem to come up short is increasing the awareness and knowledge of financial products and service features.  Perhaps the wrong information is on the label, or we ask if the labels are used by consumers in making financial decisions.  Obviously, different people make decisions differently, and prior research has demonstrated differential processing effects between novice and expert consumers.  A novice consumer might jump into a financial decision too quickly and irrationally, without reading the information, and end up making a costly mistake.  Some may not even know what a disclosure is. 

            Financial products and services have a certain level of risk associated with them.  Even if that requires all financial products to have different labels or disclosures, then so be it.  Too many consumers have no idea what they are getting themselves into when they sign the names to financial documents.  A perfect example of the lack of information reveled and the absence of financial understanding would be the current situation over sub-prime mortgages. 

            Like the importance of information beginning known and communicated to the public, the importance of motivation (when it comes to financial choices), is key to making an effective preference.  Motivated consumers make more educated decisions.  They seek knowledge, weigh the advantages and disadvantages, and chose a well-educated option.  When a good economic decision is made, consumers know what they are facing.  Another valuable aspect of making an educated choice is when consumers know when it is time to ask for help.  The financial industry has numerous professionals who can advise large and crucial economic decisions.  For individuals already facing economic hardships, various counselors can create a course of action to improve the situation.  Pre-purchasing counseling programs for homeowners before buying a house would decrease delinquency rates.  Today, for just about any financial need, experts exist.  These trained professionals can assist people for just about any financial situation. 

            Several factors impact financial literacy.  The lack of financial education, the withholding of needed information, and personal motivation all influence financial literacy.  America’s little familiarity with even basic economic concepts has seriously impacted our economy for the worst.  The concept of financial education and literacy is not new.  Since the early twentieth century, the idea of learning basic financial information existed.  A piggy bank served as the symbol of saving money, but if only life was that simple.  In the 1920s the notion of purchasing items on credit became the social norm.  No one knew how it worked, or its lasting impact and influence over society.

            We may only be college students, but our financial actions now factor into the rest of our lives.  In just a few short years, we will receive our diploma.  Currently, our economy is experiencing a recession.  Jobs are few to come by, and our futures could be limited in opportunities.  The future from here on out, is ours for the taking.  Possessing vital economic literacy is the key that can open the door to opportunities.  The past should no longer impact the future.  Find that inner motivation and make the steps towards achieving financial success.  Make informed financial decisions and the future will be bright.  When the public is financially educated, motivated, and inform, the key to great achievement is in our hands.