About a year ago we released the first post for this blog, and I’m still here, 15 posts older and more eager than ever to keep the conversation going. In those 15 posts, I touched on economics, the monthly payment mindset, budgeting, financial aid for education, personal finance terminology, insurance, reflection on my own… Uh… Experiences (mistake$), and more.

I’ll call this an accomplishment, but I’ll also note that during the past year the list of topics I still need to write about has grown. Yes, there is much to discuss, much to share, much to learn.

Financial Literacy Month

Despite the fact that it is snowing as I’m blogging, April is back, and in FAME’s world that means, among other things, Financial Literacy Month. It’s a time when organizations, educators, and financial professionals everywhere in the US are promoting the importance of financial capability. Here’s a sample of what’s going on right here in Maine.

Events, initiatives, and resources:

• Educator’s conference: Maine Jump$tart’s 16^th Annual Fostering Financial Education in Maine Schools  Conference will be held May 8-9 in Portland. This year’s event is unique as the May 8^th portion is being brought to us by VISA and the Council for Economic Education, who have put together an incredible day of training and fun including meals and a sunset cruise in Casco Bay. There is still time to register!
• For kids: FAME’s first-ever Design Your Own Dream Money contest is underway. This is for all Maine students in grades 1-6, and submissions will be accepted until April 30.
• Could it be? Personal finance becoming a graduation requirement in Maine? Well, maybe not yet, but efforts are underway during this legislative session to once again bring the conversation forward. The first hearing took place on April 1, 2025; read more about the bill here.
• A FREE summer course for high school students: FAME’s 2025 Personal Finance Summer Institute is happening July 21-25 in Portland, and registration is open.
• More from FAME: Resources to help you celebrate and promote Financial Literacy Month

It’s not just snowflakes falling

I’m not writing in a vacuum; therefore, I can’t go on without acknowledging the stock market-related pain that has been April, so far.

It’s been hard to watch, and depending on where you are on a scale of 20-something to retired, you might not want to watch, at least in the short-run. From an educational perspective, it’s critical to understand the history of stock market movements and the basis for its relative long-term success.

The stock market is ultimately based on the performance of an incredibly wide range of companies that produce and sell everything we consume. Our economy runs like no other, we consume like no others, and as a result, those companies make (and distribute back to stockholders) steady and substantial profits. This fact is, it’s not going to change based on anything that has happened or is likely to happen to our economy in 2025.

Yes, we are in or close to what is known as “correction” territory. However, “Corrections in the stock market are pretty standard fare. There have been 21 declines of 10% or more in the S&P 500 since 1980, with an average intra-year drawdown of 14%,” according to Baird Private Wealth Management. (cnbc.com)

If you are using your investments now or expect to be soon, you might need to consult a professional before taking action. But for most investors most of the time, don’t just do something, stand there! Warren Buffet knows a little about stocks and has been known to offer on-the-money advice. One of his favorite lines comes from a 19th-century poem by Rudyard Kipling; “If you can keep your head when all about you are losing theirs… If you can wait and not be tired by waiting… If you can think — and not make thoughts your aim… If you can trust yourself when all men doubt you… Yours is the Earth and everything that’s in it.”

Back to Financial Literacy Month

Once again, money lists are everywhere, and I do like a good list. I’m referring to the personal finance type – things to do, think about, start, finish, check on, cut back, increase, and just about any other verb you can connect to managing money.

I’ve perused these for weeks, boiled it all down, and have come up with my own – a Top 14 money-related menu for Financial Literacy Month.

Why 14? Because I don’t think I’ve ever seen a Top 14 list. Or we can consider it inflation’s effect on Letterman.

Top 14 Personal Finance Items Checklist for Financial Literacy Month 2025 (in no particular order, although I will highlight my personal Top 3 for 2025)

1. Create/Update Budget
2. Build/Reinforce Emergency Fund
3. Payoff/Pay Down Short-Term Debt
4. Prioritize Retirement Plan
5. Insurance Check-up
6. Boost Automated Saving/Investing
7. Increase Education Savings
8. Check Your Credit Report
9. Work on Your Credit Score
10. Set Goals
11. Check Your Tax Withholdings
12. Develop Buyer’s Remorse – BEFORE Buying!
13. Internet/Technology & Financial Security Checkup
14. Talk with Children about Money

An interesting thing I’ve noticed – when you work on one of these, others are often affected, like dominoes falling in the right direction. For example, by checking on insurance, you might change your deductibles, save $120/year, and redirect that money into building an emergency fund or into boosting savings. By paying off debt you can increase your credit score, which has benefits ranging from lower mortgage interest to better car insurance rates. So even if you can only directly work on one…

And the list(s) go on and on… Like I said in that first post a year ago (yes, I say it a lot), our financial system is complicated, slippery, and difficult to navigate. It takes constant vigilance and learning to give order to all things money.  

So, think about what Financial Literacy Month means to you? Attack a piece from that list or from others’ lists and give your future self the gift of good money decisions today.

Economic conditions are increasingly volatile and stressful, and that is the perfect time to take a deep dive into our budget, look for leaks, cut where we can, and build our financial defenses.

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OK, that’s $25/month saved by cutting one streaming service and changing another to the plan with ads. Then $2 more/month by paying my car and home insurance in full rather than monthly. Spent $100 on exercise equipment but will be saving $40/month by cancelling that rarely used gym membership. That’s about $67/month, not much but…wait a minute, that comes out to over $800/year! If we sell a few things that are gathering dust, we can raise a couple hundred more…

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Sorry, you caught me taking the family spending plan out behind the woodshed. I review my budget regularly, but this time I did it with a bit more urgency and concentration because 1) we are trying to carve out funds to put toward the next family vacation 2) food prices are moving again and 3) that uneasy feeling about the economy is hard to ignore.

I’ve been known to yammer about the connections between personal finance and economics…maybe even offering a few posts in this blog on the subject.

And it seems that econ is actively pounding on our collective doors, proclaiming its relevance and demanding to be heard. Yes, the phrase, “…in these uncertain economic times” has been beat to dust, overused and misused until it’s completely ignorable. But this time…well, it’s hard to ignore the numbers, in writing, plastered on the wall.

Is a recession imminent? It seems likely, but I’ll also say that at the beginning of 2024 most economists said we’d see a recession by the middle of last year, and that did not even come close to happening. So, right now, we don’t know.

What we do know is that we consumers are getting hit from all sides with rising prices, stock market slumps, and threats to the employment picture, both from the private and public sectors. Add it all up and GDP is likely to take a hit this year, and sooner rather than later.

So, as I always say, “when economics makes you fidget, it’s time to tighten the budget.” Honestly, I just made that up, but it’s true!

Goldilock$ Budgeting

Other than the bottom line – spend less than you make – there is not really one approach to budgeting that fits everyone. Age, income, lifestyle, stage of life, and the reasons for reviewing/adjusting a budget are all a part of deciding how to get it just right.

Let’s start with the why. Defining the problem (or opportunity) leads to best steps to get the most out of our budget. This is not a comprehensive list, but it does cover several classic situations. It’s also possible that a combination of these is a match.

• Trying to make ends meet, must make cuts and shift priorities right away
• Need to build emergency fund
• Want to begin saving/investing
• Want to increase or redirect saving/investing
• Not happy with where money is going, want to make trades

After identifying the reason for examining your spending plan, you can then take steps towards your goal(s).

There are always choices when it comes to trimming a budget. The question is whether we want to make those choices and will we change our behavior to match our goals.

Tips on squeezing a few bucks from that budget:

• Quick savings can often be found with streaming services. I recently told one provider that I was cancelling because it wasn’t worth $24/month. They said, “How about our $8/month plan? There are a few ads.” Deal. $16/month savings.
• Food: I’ve recently started grilling pineapple as an occasional meat substitute. Great taste and about half the price/pound of meat. What changes can you make?
• Gas: when tough choices must be made, cutting down on driving should be at the top of the list. Look into shorter drives, local tourism, more walking, etc.
• There is out of pocket risk by raising insurance deductibles, but if your emergency fund is in place, you can save hundreds/year with higher auto and home deductibles.
• Side gig$ & yard $ales: a friend recently told me about his four hour/week job at a local gym. He originally did it to use the gym, but after the first month he got a charge when he realized he made an extra $250 by using time that he probably would have spent watching TV.
• Stop a budget leak and immediately redirect the money into automated savings or investment account – financial and psychological benefits abound.
• Connecting to my Goldilock$ budgeting comment above, this video by Ramit Sethi is interesting in that it looks at financial strategies by income level.

Finally, feel the power in small changes.

• Make five small changes that save you an average of $7 each. That is $35/month, which can also be expressed as $420/year.
• Sell a handful of items for $75.
• Find a side gig, at 10 hours per month, that’s about $1800/year.
• Redirect that $2000/year to what you want or what you need. 

Most of us cannot affect the economic wheels spinning around us. However, most of us can affect our own mini economy, and that in turn can make a not-so-mini difference.

“Kids these days.” – said by everyone who is not a kid, in every decade since the beginning of kids.

A funny thing has happened to me during the decades that I’ve been working on personal finance – both as a teacher and a learner – I’ve gotten older! And despite my youthful glow, I now know what curmudgeon means. Sigh. But over the years I have tried to push back against the notion that younger generations just don’t understand – anything – whether it’s clothing styles, language use, or money habits.

It turns out that folks of certain ages have been trying to explain the generation gap for a very long time.

“They [Young People] have exalted notions, because they have not been humbled by life or learned its necessary limitations; moreover, their hopeful disposition makes them think themselves equal to great things – and that means having exalted notions. They would always rather do noble deeds than useful ones: Their lives are regulated more by moral feeling than by reasoning – all their mistakes are in the direction of doing things excessively and vehemently. They overdo everything – they love too much, hate too much, and the same with everything else.”

Hinton, Kerouac, or Freud, you say? Nope, go back just a bit further.

Aristotle. Yes, 23 centuries ago Aristotle.

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And examples of “Young People” doing amazing things, smart things, wise things, are all around us. This past fall I had the wonderful experience of teaching a personal finance course, Money Matters, at the Maine College of Art & Design (MECA&D), and along the way I got to work with one of these young stars, one who happens to be pursuing unicorn status as an artist and a personal finance expert.

I’d like to introduce Jaden Kyung-Moon Bauch, a current student at MECA&D and my TA for the Money Matters course this past semester. Jaden is 21 years old, will graduate from MECA&D in May with a Bachelor of Fine Arts in Painting with a Minor in Art and Entrepreneurship, has passed both the Securities Industry Essentials Exam and the Series 65 (Uniform Investment Adviser Law Exam), and has already learned as much about personal finance as almost anyone I know.

What was the moment or turning point that got you interested in personal finance?

In my sophomore year at MECA&D, I had to get a root canal, and I didn’t have dental insurance. The procedure cost over $4,000, and I simply didn’t have that kind of money. I remember when my checking account balance was negative $500. At the same time, my student loan balance kept climbing higher and higher, and I couldn’t see a financially stable future for myself after graduation. I felt like choosing a creative career meant I was destined to have less financial success than others. But I decided I wasn’t going to accept that. That’s when I started self-studying personal finance, and I realized that financial literacy wasn’t just a tool for managing money—it was a tool for regaining my confidence and taking control of my future. That realization led me to want to help others, especially artists, understand and achieve their own financial goals.

How has your increased financial education affected your college experience?

Without a doubt, increasing my financial education has significantly improved my college experience. Not only did I gain a passion and a mission, but having greater financial literacy ultimately allowed me to spend less money, make more money, and do more with it.

I also think people—especially those my age—underestimate how much financial stress weighs on their subconscious. Even if you’re not actively thinking about money, it still takes up space in your brain. But when you take control of your finances, gain confidence in your financial situation, and understand how money supports your life, a huge weight lifts off your shoulders—one you may not have even realized was there.

What are some financial challenges unique to working artists?

The biggest hurdle for artists isn’t just financial logistics such as accounting and retirement—it’s overcoming the starving artist narrative.

When you tell someone you want to be an artist, their first thought usually isn’t that you’ll be financially successful—they might even try to talk you out of it. Somewhere along the way, choosing a career in art became synonymous with choosing financial insecurity.

This mindset is incredibly discouraging. If all you ever hear is that you’re going to struggle or fail, it becomes that much harder to succeed. The starving artist narrative actively holds creative people back—not just from pursuing their financial goals, but sometimes from pursuing a creative career altogether. All too often, the stories that get amplified are those of artists who only found success after their death, artists who ended up homeless, or art school graduates who stopped making art entirely a decade later. 

Have you had the chance at MECA&D to pass on some of what you’ve learned?

Yes! I’ve had many opportunities to do so. One example was, of course, in Money Matters, where I was able to cover certain classes and contribute support in areas where I had a specialized knowledge base. I also had the opportunity to speak to the Fine Art seniors— those in sculpture, painting, photography, and printmaking— focusing on budgeting, credit, and investing.

On another occasion, I gave a lecture to the entire freshman class about personal finance for artists. Most recently, my senior thesis focuses on equipping artists with the financial tools they need to thrive. As part of my thesis, I offer free financial coaching to artists and creative professionals, using those coaching sessions as inspiration for my paintings.

I also operate a resource on Instagram called The Financial Palette, which focuses on bite-sized finance and business tips for young creatives. My goal this year is to elevate this to the next level and expand beyond Instagram.

While working with you last semester, I noticed that your views on money and investing are “old school”. I think that’s a good thing. How did someone from your generation connect with those values?

It’s probably natural to develop those kinds of values when most of the finance books I’m reading are written by people four times my age—haha. I suppose you’re right, some of my beliefs are a bit old-school. I tend to favor simple strategies like passive investing and the three-fund portfolio. I also try to avoid finance discussions on social media unless they’re coming from qualified financial professionals because there’s a lot of misinformation out there, particularly around investing. So many people are just trying to sell day trading courses.

When it comes to investing and personal finance, you should stay with the times, but I don’t think you need to reinvent the wheel. Yes, you can be creative and tailor strategies to fit your unique situation, but that’s completely different from using approaches that have no quantitative backing.

I try to approach discussions about finance with those in my age group from a “modern” perspective because things are so different now compared to when our parents were our age. I focus more on mindset and developing strong financial habits—because I believe that’s the foundation of financial success, whatever that may look like for you.

What are your career goals?

Some people think I’m dreaming, but I have an elaborate plan for my career.

Within the next 2 years, I hope to complete the education requirements, pass the Certified Financial Planner (CFP) exam, and gain the necessary hours to earn my certification. From there, I’d like to spend three to five years working in the industry, gaining experience and expertise.

After that, my goal is to start my own financial services firm dedicated to serving creative professionals. I want it to go beyond just financial planning because there are so many other areas—like financial coaching, business planning, and tax preparation—that play a crucial role in a holistic financial strategy.

How do you see your art fitting into your professional life after college?

This question comes at a great time, as it’s something I’ve been thinking about a lot while navigating my thesis. I see art remaining a significant part of my life. I’ll continue attending gallery openings and staying engaged with the art world. However, when it comes to my own studio practice, I’m not entirely sure what that will look like long term.

There may come a time when I must choose between pursuing my dream of owning a financial services firm and being a practicing painter. While I love painting, I believe I can provide more value to the creative community through my financial expertise. However, in many ways, my art serves as a gateway to conversations about my mission. I especially enjoy projects where I can sell my work and use the proceeds to support artists.

Top personal finance advice for your generation?

1. Invest in yourself more than the average person.

2. Ultimately, your ability to be financially successful isn’t determined by your age, gender, race, career, or socioeconomic status—it’s determined by you.

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Like I said, “Kids these days… are awesome.” Thank you, Jaden.

If you Google, “Personal Finance Tips for 2025”, you’ll get 800,000,000 results. Not only did I not read all 800,000,000, but I also didn’t even get through the first eight before I found contradictions. This didn’t really surprise me as I see plenty of tips and tricks from a variety of sources, and, yeah, they are all over the place.

And I recently started following another PFG (personal finance guru), enjoying his takes on money topics as well as his analysis of other advice he has seen on social media. As I was listening to him rant against reckless spending, he went on a budgeting tangent, and he said, “I don’t like budgets, I don’t use budgets, I don’t recommend budgeting to my clients.”

What?!? (needle scratches across the record…) Say it ain’t so! Later, in another video, he comes out against home ownership, saying that he rents and will continue to rent.

Foundations rattled; pillars crumbled. My all-time PFG (Dave Ramsey) would be plugging his ears or unplugging his speakers.

Personal finance is important, and there should be a standard playbook, right? Well, maybe not. While there are some fundamentals that apply almost all the time to almost all individuals, there are also different methods/tools/strategies which push us toward the same result and there are nuances within personal finance subjects which depend on age, income, stage of life, values, and more.

It can be overwhelming to decide which advice is right.

So, at the well-calculated risk of further muddying the waters, I’m offering my tips on sorting through personal finance tips.

A Few Pillars to Lean on

First, let’s cover ground absent of debate, places where respectable PFGs gather in peace.

• Spend less than you make
• Follow the law
• Buyer beware

That’s All?

There are probably more personal finance principles that most would agree on, but the list is (surprisingly?) short. It’s much easier to note where folks don’t agree.

• Coffee will make you poor
• Always save 10%
• Always save 20%
• Rent don’t own
• Own don’t rent
• Pay debt before investing
• Invest as much as possible as soon as possible ignoring debt
• Pay student loans
• Wait for government modifications to student loans & payments
• Don’t buy new cars
• Never buy a used car
• Always use cash
• Credit cards are never a good choice
• Buy term life insurance
• Buy whole life insurance
• Don’t buy life insurance at all

Quoting myself from a few paragraphs ago…

 “…there are nuances within personal finance subjects which depend on age, income, stage of life, values, and more.”

This also illustrates the difference between PFGs (personal finance gurus) and CFPs (Certified Financial Planners) and other personal finance professionals (and Certified Personal Finance Educators like me).

PFGs, even when honest and well-meaning, throw out generalizations and statements, and might be trying to attract attention (if they get paid by views and clicks).

CFPs, CPFs, ChFCs, CFEs, etc., take a global look at finances with a holistic approach to charting a path, addressing the details along the way that make the most sense for the person, time, and place.

But This, This is Just Wrong

I just saw a social media marketing post, disguised as financial advice, which lures readers with something like, “Stop Making These Financial Mistakes”. SIX of the eight items on their list included recommendations to BUY something or to BORROW.

I can’t get behind any financial wisdom which advises buying or borrowing. Sometimes, and when I say sometimes, I mean rarely, refinancing can be on the table but might be for situations involving crippling debt or other crises.

Examples of this type of “advice” are not hard to find, you’ve probably seen or heard an ad or post that says the way to improved finances can be found through:

• Home and/or auto warranties
• Another credit card (but this one has a lower introductory interest rate!)
• Invest in real estate (risk free!)
• More life insurance
• Buy cryptocurrencies
• Refinance credit cards (for a fee)
• Buy cheaper insurance (no matter if the coverage is appropriate)
• Get a credit card with bonus miles
• Pay a retail store a membership fee so you can then buy more overpriced toilet paper than a family will need this decade

Some of these sources also imbed (sort of) the idea of shopping around for the best deal on certain items, and that is generally a good idea. However, when they say to shop around but provide you a link to just one company, you are reading an advertisement, not financial advice.

When consuming personal finance articles or posts, consider this: if they are selling, they are not helping.

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It’s tricky offering advice on taking personal finance advice. One might think that the numbers don’t lie and that every decision about money is correct if made by applying experience and math. But it doesn’t work that way because the ones applying the experience and the math are people, and no two people see things the same way. So, yes, paying debts off according to interest rate might make mathematical sense, but paying debts off the Dave Ramsey Snowball Way (smallest to largest) can provide a critical psychological boost which can propel someone to greater success than math alone.

After a couple of decades of this, I have established a few unbreakable pillars, but I’m always listening to fresh viewpoints as well. However, for several years now, most “new ways” of mastering money that I’ve seen are at best gimmicky and at worst outright FOMO-driven schemes designed to separate us from our money.

I think it’s probably been this way for as long as there has been money.

So, for those of us who live in the paradox of not having enough money to pay for advice on how to have more money… Keep learning, know yourself, understand your risk tolerance, spend less than you make, and when approached by the latest trend which unlocks money’s mysteries, hold onto your wallet and back away.

Links on PFGs and other types of personal financial advisors.

Types of finance professionals from Enrich

Guru 1

Guru 2

Finally, SNL tells us all we really need to know.

“Out of college, money spent.
See no future, pay no rent.
All the money’s gone, nowhere to go.”

-The Beatles

Most of the ideas for these posts come from my personal experience with money or from my experiences teaching personal finance. However, inspiration for which topic to cover in a particular month sometimes comes from unexpected sources.

Over the Thanksgiving holiday weekend, I attended a concert – the 22^nd Annual Beatles Night concert – delivered by Spencer and the Walrus. (For Beatles fans who have not seen one of these shows… Make plans for Thanksgiving weekend 2025 and the 23^rd iteration. It’s a truly incredible experience. I think I’ve been to 15 of the 22 shows.)

I take you to a moment in the concert when the band invited a nine-year-old boy to play drums for “While My Guitar Gently Weeps.” After the song, the crowd went wild. He came to the front of the stage and bowed, drumsticks in hand. HE NAILED IT!

The boy is the son of the band’s drummer, and as he took his bow, his dad climbed back into the seat behind his kit and wiped the happy tears rolling down his face. This was followed by the others in the band (especially the guys) drying their eyes. And if that wasn’t enough, a few songs later the drummer’s young daughter led the theatre in singing “Yellow Submarine.” Are you kidding me?! It was perfect.

And the cobbler’s children have no shoes

After both of those kids made their dad proud, I looked to my 12-year-old son and said, “You should know that I get emotional any time you say that you are going to save your birthday money rather than buy something.” He laughed ‘cause he knows it’s true.

All joking aside, that moment made me think about what I have passed on to my kid from my profession.

It’s a big conversation, but right now I’ll focus on the part related to that old Spanish proverb about the cobbler. I teach personal finance, but I often wonder if I am teaching my boy enough about money. No matter what we do for a living, we all have had to learn how to manage our finances in a uniquely complicated and unforgiving system. How can we prepare our children to survive and thrive?

While some students in Maine are benefiting from school-based financial education, it is still not available to all. See the end of this post for an update on efforts to guarantee financial education basics for all Maine high school students.

“Children are great imitators. So give them something great to imitate.” —Unknown

There once was a man named Aristotle, who had a lot of things to say about … (darn it, nothing relevant rhymes with Aristotle). Well, he had a lot of things to say about a lot of things, including raising children. He felt that children learn best through imitation. Hmm… that sounds a lot like observing role models, learning by example, etc.

“Parents are the primary influence on a child’s future financial well-being because they have many occasions to communicate information, set powerful examples, and involve children in activities that teach them financial skills. Parental involvement in their children’s financial education has long lasting effects.” – Federal Deposit Insurance Corporation

I’ll add, for whatever it’s worth, that in my now decades of studying and teaching personal finance, I’ve seen no greater influence on kid’s attitudes toward money than what they have learned at home, mostly through watching and listening. And yes, that can be a good thing. But it’s too often not as we adults don’t always exhibit strong and responsible financial behavior. I can only imagine what messages I would have sent if I had children when I was, eh, struggling with my financial decision making.

And even though I think my son is learning positive money lessons through a bit of household osmosis, I know it’s not enough. I must take more proactive, age-appropriate actions to teach him how things work in the U$A. Some of these are done, some in progress, some are coming soon:

• Opening a bank account
• Paying him, if necessary, to read my blog. Hey, that gives me an idea…
• Piggy bank at home
• Looking at the bank account and explaining interest
• Talking about how much of that birthday money to save
• Opening a 529 savings account, making contributions, putting part of his money into the account, showing him how the money has grown, and having regular chats about the costs and benefits of education
• Explaining debit and credit cards while checking out at the grocery store
• Explaining unit price at the grocery store
• Explaining the stock market and letting him manage $100 in an online account
• Taking part in an online course with an essay contest
• Asking his school if they are offering any opportunities for personal finance or economics through class topics, or clubs, guest speakers (like me!), etc.
• Encouraging questions and curiosity about all things money, economics or finance
• Desperate attempts to make opportunity cost seem relevant

Resources, resources, resources

I am a personal finance educator and amateur economist, and I still often find myself saying, “I don’t know how to do that or where to find out.” So, where can we go for help? It’s a long list (of FREE stuff), but don’t try to grab it all at once. Pick one and explore a little at a time. You will find something that works for you and your kid(s). If not, please reach out to me, and I’ll help you dig for something that does work.

• FAME – financial wellness for our kids
• Claim Your Future – FAME’s career and budgeting activity, online version available to everyone, and a classroom kit for teachers & counselors
• iGrad – short courses, articles, videos, and more for high school and college students
• FDIC – teaching children about money
• CFPB – Money as You Grow
• Federal Reserve Bank of St/ Louis – for teachers, a treasure of searchable personal finance and economics lessons and activities
• Next Gen Personal Finance – for middle and high school teachers, complete curricula for personal finance with lessons, activities, and games
• And I (all of us at FAME) like visiting schools in person or virtually, so please don’t hesitate to ask or connect me with someone at your area school to see what personal finance resources we can bring to the classroom.

Update: Maine and Personal Finance Education

I appreciate this forum and the chance to talk about personal finance and lobby for all Maine students to receive financial education. However, I am even more appreciative of the folks who are actively working behind the scenes to make that happen.

Here is the latest from Samantha Drost, Vice President and Conference Coordinator of the Maine Jump$tart Coalition for Personal Financial Education, and Consumer Economics and History teacher at Caribou HS.

“Our second round of presenting the MLR social studies standards to the Education Committee is underway, and the public comment period has now closed. Maine Jump$tart proudly served as a stakeholder on the Overview Team, where we proposed enhanced personal finance standards that we believe will make a significant impact. If approved, the updated MLR social studies standards will align with the six main overarching standard topics set by the National Jump$tart Coalition for Personal Finance Education. The formal review process by the committee is scheduled to begin in January, with a decision hopefully expected by May. Maine Jump$tart remains hopeful and continues to advocate for comprehensive personal finance education for students from kindergarten through high school.”

Recently I’ve been running into “top financial mistakes” lists in the form of articles, social media posts, news stories, etc. I imagine this has something to do with my internet browsing and cookies, even though I haven’t been purposefully reading up on that exact topic. Maybe the www is trying to tell me something.

Whether it’s that or just a financially reflective time of year, it got me thinking about my own money mistakes… And then categorizing them by things like avoidable, should have known better, didn’t know better, darn capitalism, etc.

Since this is a just a blog post, I tried to narrow it down to my greatest hits, not necessarily in $$ terms, but also in terms of the impact on my future decisions and my financial journey in general.

The Classic: signing up for the CC on the CC  (credit card on the college campus).

I was barely 18 when I stepped into the student center to get a slice and a coke, but instead found a table with smiling people handing out applications for a Sears Card – along with its $250 limit, 24% interest rate, and a free t-shirt! How could I resist? I should be grateful for this bit of history because this is THE moment when my financial train went rogue, and without it I wouldn’t know the experience of having gotten back on track. Until this moment I was still more of the paper boy, wise with my pennies, turning them into dollars. But very soon after getting my t-shirt and filling out the application I had my card, my first credit card. I quickly maxed it out on whatever an 18 year old could buy at Sears in the mid-80s, got used to the comfort of minimum payments, and as Senator Elizabeth Warren described in the documentary Maxed Out, I “developed a taste for credit.”

My parents couldn’t have prepared me because they didn’t know (no one from previous generations knew) that credit cards were being handed out to us 18-year-olds. It was a relatively new thing at the time. Maybe something in my brain should have realized that getting stuff without paying for it up front was probably not good, but again, I was 18.  It’s interesting to note that the CARD Act of 2010 made it illegal for credit cards to be “sold” on college campuses.

The Verdict: I didn’t know better

The Follow-up Flub: getting store credit cards even though I already had a Visa.

After a few years of practice with my Sears card, I graduated to my first real credit card, a nice Visa with a Miami Dolphins logo. The biggest mystery today is wondering how I was ever a Miami Dolphins fan. I could use that card anywhere, and it wasn’t (always) maxed out, so why did I have to get cards from Macy’s, Eddie Bauer, etc.? Oh, this one is pretty much on me. By that time, I had some idea of the impact of paying interest, but I was a consumer peacock, flashing those cards in place of feathers. I bought stuff, and I enjoyed doing so with specific cards for various stores and their 24% interest rates.

The Verdict: should have known better and darn capitalism

U-Haul, You Learn: this one still annoys me.

I was moving from a studio apartment in Connecticut to a one-bedroom in Tennessee, and I decided to rent a small U-Haul truck for the job. The truck wasn’t the only small thing involved as it cost a small fortune for this rental. Where do I begin with how foolish a (financial) move this was? It was 30 years ago, and I am still stinging from the nearly $1,500 I spent including gas. Why was it silly? My belongings at that time were probably worth $500 at most, keepsakes could have fit easily into my Subaru wagon, and I’m sure I could have replaced that crappy desk lamp for a few bucks at Goodwill. I remember clearly that I simply did not analyze the cost or the alternatives. I was single-minded and focused on the move and lost the good sense that had recently led me to stop buying new cars (and to getting the old Subaru which, ironically was a really well spent $1,500). The U-Haul $1,500 was a ton of money for me at that time – too much money to spend so frivolously. How did I do it? Yep, Miami Dolphins Visa.

The Verdict: avoidable, I absolutely should have known better

The One Mistake to Rule All Others: not understanding opportunity cost (a top argument for requiring personal financial education in school).

I can add plenty more mistakes of various financial impact to this list (see this post about cars), and they all matter in some way. But what matters more is what ties them all together – opportunity cost.

My credit card adventures cost me hundreds in interest and thousands in overspending. Buying cars that were out of my reach but nevertheless came to me thanks to creative financing cost me thousands. Unnecessary U-Hauling cost $1,500 for one trip.

So what?

Stage one of “so what” was when I came to grips with the amount of money I recklessly spent over the years, and that was an important stage loaded with critical realizations.

Stage two, however, is where my increasing financial literacy made me begin to connect with not only what I spent, but also, and more importantly, what I could have done with that money.

Stage three, let’s say current day, is when I look at my expected retirement age and lifestyle and realize the impact of those decisions on today’s choices.

stage one + stage two + stage three = understanding opportunity cost.

Yes, that concept which in my first college economics course seemed so boring when presented in the mechanical terms of production possibilities curves, but when applied to personal finance is not boring and drives home the consequences of living beyond our means.

Decades of experience teaching OC in elective courses and clubs tells me that it does sink in, students get it, and it makes a difference.

The Verdict: I really didn’t know better. It’s not natural for humans to think about our future self, especially at 20 years old.

———-

So, come on Maine, how about we take this tool which covers choice, consequence, future self, and financial wellness, and cement it into our school curriculums. I don’t know that it would have protected me 100% from unfortunate financial choices, but even a fraction of that protection would have gone a long way.

If you’ve made or are making these mistakes, no judgement here, just a chance to reflect and/or chart a new course. Despite the costs involved, I can’t say that I regret these decisions as they led to changes and led to me wanting to share and hopefully help others on their financial journey.

Teaching is Sharing and Sharing is Teaching

In the 20 or years that I have taught and talked personal finance, I have found no better tool than sharing my mistakes with students. Is it impactful when a successful or wealthy person shares their tips? Yes. But experience has shown me that it’s even more impactful to talk about what went wrong, what was learned, and what was lost. (I’ve been told that) It feels more like teaching, rather than preaching.

Stories are emotional, emotion prints memory, and those memories can have a profound effect on our students.

What season is it? Ask most folks and of course, they will say fall, but ask high school seniors, their parents, and counselors, and they might just come back with FAFSA season. Once again, it’s time for a critical part of the higher education access process—paying for it.

FAFSA: Free Application for Federal Student Aid 

It’s been quite a year or so for the FAFSA as it underwent a thorough overhaul, a past-due winter release in January, glitches and errors, subsequent months of repair, and even an investigation by the GAO (US Government Accountability Office).

The goals of the overhaul were to make the process much easier and to make sure that federal aid was available to those who need it.

The Latest

Fortunately, FAME’s College Access Team is here, focusing on helping families through the FAFSA process as part of the bigger picture of accessing and affording education after high school. And leading that team is Mila Tappan, who I’ve asked to bring us up to date on FAFSA ’25-’26.

#1. What are some of the biggest FAFSA myths you would like to debunk?

The FAFSA has gotten so much easier to complete. Most people can complete their section of the FAFSA in less than 15 minutes! If people need additional assistance, FAME offers free help via Zoom.

I’d also like to debunk the myth that it isn’t worth the effort to file the FAFSA. The FAFSA is free, and this one application opens access to federal, state, and often institutional financial aid eligibility, including grants and scholarships that don’t have to be repaid. If students need to borrow any loans, federal student loans are best but require borrowers to file the FAFSA. Additionally, the FAFSA is required to access tuition-free community college and is also required for many scholarships.

#2. The money question: Where do things stand with updates to the FAFSA?

There is no doubt that the rollout of the updated FAFSA last year was rough. However, most issues have been resolved and any remaining glitches are being actively worked on. The 2025-2026 FAFSA will be available to everyone by December 1, 2024. From October 1 through December 1, extensive beta testing is being conducted. We are optimistic that when the FAFSA is released to everyone by December 1, it will work as intended, be glitch-free, and fully functioning.

#3. Even though last year’s rollout of the FAFSA updates was clunky, to say the least, were you able to still notice the changes to the FAFSA?  Were there some obvious improvements?

Yes absolutely! Even in the early days of the rollout, many families completed the FAFSA with relative ease. The updated FAFSA has fewer questions and pulls in required information from other sources when possible. For example, most individuals will no longer have to manually enter income information. Assuming people provide consent (a requirement), tax information will automatically be pulled over from the IRS. Those who aren’t required to file taxes are no longer required to report their income. Additionally, most people who received a means-tested benefit, like MaineCare, or who earn less than $60,000 annually will no longer have to provide any asset information. These changes make the FAFSA easier to complete and ensure that the tax information provided is accurate.

#4. If all things FAFSA was not your job, what sources would you use for information and support when looking for FAFSA help or help with financial aid in general?

I would encourage everyone to visit the FAMEmaine.com website. There they will find information on the steps to get ready and file the FAFSA and an extensive list of FAQs. They will also find resources including our PAY: Tip to Afford Higher Education booklet, our Get Ready to File the FAFSA checklists, Federal Student Aid account (FSA ID) tracking worksheets, and more.

I would also love for people to join our texting and/or e-mail list which can be done at FAMEmaine.com/join. We won’t inundate people with communications but will provide timely updates on the FAFSA and the entire financial aid process, including what happens after the FAFSA is filed. We are also active on social media and have a Facebook group for parents and caregivers called Paying for College for ME.

Outside of FAME, a good source for information is Federal Student Aid. Their website is StudentAid.gov, which is where people go to create their Federal Student Aid account and file the FAFSA. They also have good social media content.

#5. Other than filing the FAFSA, what advice do you give students/families on the topic of affording education after high school?

One of the best ways to make higher education more affordable is to include affordability as a criterion when researching and building a list of schools. We want to be sure that students have options and that the schools on the list are a good fit academically, socially, geographically, and size-wise but also consider affordability. A great place to get started is by using the Big Future College Search tool. This site allows students to search for schools based on various criteria including affordability.

It is also important for students and families to talk about expectations related to paying for higher education. Too often students and parents have unrealistic expectations of who is paying for what and the amount of money available for higher education. We have a list of conversation starters that can help ensure that students and families are on the same page. Having this conversation before spring of senior year can help make decisions related to college selection easier.

It’s also helpful if students can remain flexible. There are multiple pathways for most students to accomplish their goals. If students can keep their options open and not get their heart set on a particular school early in the process, this will allow them to make more informed decisions. We encourage students to wait until they’ve received and compared all admission and financial aid offers before making a decision. These decisions can be very emotional, but if people wait until all the information is available, they tend to make decisions they are happier with in the coming years.

There is no quick or definite answer to that question. But there are ways to analyze coverage versus cost and feel you are getting what you need at a price you can stomach.

***

“The car won’t start,” texted my wife early on a recent Sunday morning, while I was 1,000 miles away visiting my mom.

She sent me a video, and I brilliantly concluded that the battery was dead. After a few minutes of trying to determine why the battery died, we turned our attention to figuring out what to do about it. It took me a minute to remember that we had AAA. For seven years living in Spain, AAA was not a part of my life, but as soon as I moved back to Maine and got a car, I reupped as that service had towed me, jumpstarted me, and even pulled a loved one out a ditch.

And while AAA is not necessarily marketed as insurance, for me it is and a darn good-value-insurance at that. That got me thinking…

Issue #1: Why Do We Buy Insurance?

Let’s put aside all things related to legally required insurance and focus on our choices. I cannot help anyone into the insurance happy zone as it lives in the same place in our hearts as taxes. What I hope to do is offer a path to peace of mind, to know you are doing the best you can with your insurance costs and choices.

The purpose of insurance is protection against loss; partially restoring our financial position. Contrary to mass-marketing messages and popular belief, insurance is not designed to make us 100% whole after a loss. So, know that going in – we will pay for insurance protection and still have to pay more when we use the insurance.

And, not only have the upfront premiums gone up, the portion we pay in the form of co-pay, co-insurance, and deductibles, has also ballooned.

There are plenty of factors blamed when discussing why the above is true, and I can’t tackle them here. What I can say is 1) insurance companies are in business to make a profit for their shareholders/owners/policyholders 2) losses from natural disasters have increased, and perhaps more importantly, are expected to increase even more with climate change 3) there are more people living in areas affected by these disasters 4) the costs of home repair, car parts, medical care, and liability activity have gone up as fast or faster than almost everything else in our lives.

Deal or No Deal?

It is tricky to determine if your insurance is a fair deal. I say fair because Economists Rule #7 (yes, a nod to my favorite writer, the late Robert Parker) states that you can’t really expect a good deal out of any transaction. If someone is getting a good deal, that means someone else is getting a bad deal. Generally speaking, insurance companies, with their legions of actuaries and analysts, are probably not getting a bad deal when they do business with you, so better to think in terms of fair.

It comes down to premium (cost) versus potential benefit. Potential because we hope to never use our insurance. A few notes:

• This is subjective. We don’t all value the same things in the same way. This is affected by our habits, experiences, and cultural values. Ultimately, insurance decisions are personal.
• These are generic examples, aiming at what would be realistic for most folks.
• Circumstances that affect insurance costs are sometimes out of our control.
• It’s a moving target. Stay informed, review, and evaluate often.

I’ll offer analysis on a few common types of insurance with ballpark cost/benefit numbers. Thinking about insurance in this way is transferrable to other kinds of insurance and can be a great tool in your personal finance toolbox.

Term Life Insurance: $250/year for 20 years of a $200,000 death benefit for a relatively healthy 40-year-old. Peace of mind. A financial cushion for those who depend on you. A bargain.

Term Life Insurance: A $10,000 “burial” policy for someone over 70, at a cost of $600/year. While coming up with burial costs is a significant financial and emotional burden, $600/year to protect $10,000 is not a strong financial move. In this case it might be better to self-insure, put that $600/year into an investment, and try to save extra for when it’s needed. This is a case of one size does not fit all, and you have to do what feels right.

Mobile Phone Insurance: $200/year premium plus a $100 deductible in case of loss, all to protect a $750 phone. This is a bad deal for the consumer. It’s very little potential coverage for the cost. Put that $200 you would pay for the insurance plus the $100 deductible in your emergency fund and treat your phone like it’s worth $1000.

Homeowner’s Insurance: $1,200/year to insure a $500,000 home, plus $300,000 in liability protection, all with a $1,000 deductible. Sign me up every day. Yes, prices are going up, but the ratio of cost/potential benefit is good for the insured. This is what insurance is meant to do. If you paid these rates for 25 years, it would cost $30,000 plus lost investment opportunities. A lot, yes, but nothing compared to the cost of replacing, repairing, or rebuilding a home, or paying legal fees when a clumsy neighbor trips over your tulips. 

Product Insurance: I recently purchased a $30 fan at a big retailer. They offered additional insurance/warranty for $9.99 for two years of coverage. Hmmm… How do I say this clearly? It’s awful! The insurance costs a full 30% of the price of the product! And many credit cards offer an additional warranty automatically on purchases made with that card. Maybe you are saying, “Yeah, there is NO way I would buy that.” But keep in mind, they do not continue to offer it because no one is buying. A lot of folks are, and it’s incredibly profitable for the company, and the way it’s sold at checkout makes it easy to “include it in the cart” without really thinking about it. Buyer beware.

AAA Roadside Assistance: It’s how this conversation started, so I’ll finish here. My AAA plan is about $100/year. I hope it’s $100 wasted. However, chances are I will use it, just like I had to last week. There are specific benefits that can be measured against the annual AAA fee, and they can be substantial (calling for assistance, towing, jumpstart, etc.) but with this insurance it’s also about the uncountable costs incurred when you or a loved one is stuck on the side of the road in the middle of two things – the night and nowhere.

You can get affordable roadside coverage through your auto insurance as well but be careful to get the full details on what is covered. In my experience, some of those car insurance add-ons are not comprehensive.

Other Insurances: I apply the same process to all my insurance decisions. Cost analysis first, then add the uncountable.

Cost/potential benefit + intangibles = is it worth it?

Still Not Sure?

If you are facing a big increase in your insurance premiums or trying to decide whether to buy a certain insurance, shopping around and evaluating coverages and deductibles are the first steps to take. I also recommend finding a local agent to help sort through the details and shop for the best coverage/price combination.

Insurance is a necessary piece of our overall financial wellness. It’s not going away, and it’s not going to get cheaper or easier to manage. While I can’t tell anyone what kind or how much insurance they need, I can help (and I am happy to, just send me an email) with the analysis and how to evaluate the options.

Once upon a time, in a high school far enough away, I taught a full-year economics course. And in that course, I often referred to classic schools of thought and, of course, to Adam Smith, philosopher, economist, and the fellow generally considered to be the Father of Capitalism. I enjoyed playing devil’s advocate and provoking students to analyze U.S. economic policy by asking “What would Adam Smith say?” I find his invisible hand theory fascinating to look at through the lens of 21^st century economic realities and the evolution of global markets.

Fast forward to the end of one school year, final exam time, and I was excited to see a student’s (let’s call him, JT) analysis of whether our economy was truly a free market system. As he dove into his argument he referenced the Father of Capitalism, Atom Smith. Atom. Not Adam. I assumed it was a typo, it gave me a chuckle, and I moved on…on to see all references to AS were Atom-ic.

It was a good essay, and I did not take off a single point for the Adam/Atom issue. But I had to ask, and I had to wonder if or how many times I had referred to AS in writing during the year. I certainly wrote his name on the board, didn’t I?

So, I asked, “Atom Smith?”

“Well, I honestly didn’t think about it much,” JT replied. “It’s just that all year long I had this image of Smith as sort of an economics superhero, and from that I drew Atom as his name, rather than Adam.”

Did not see that coming. I remember thinking and wondering how many concepts, terms, or people might have been slightly and/or humorously misinterpreted by my students when I got on an economics roll. Which brings me to a favorite line from a favorite character from The Princess Bride.

“I Do Not Think That Means What You Think It Means”

That’s what Inigo Montoya says to Vizzini after he keeps taking liberties with the word, “inconceivable”.

I heard it used the other day to (hyperbolically) describe potential economic policy moves by The Fed, and it made me think about the many financial terms and concepts that are often misunderstood or misused. Here are just a few:

Principal and Principle

In school we learn to respect the top authority, the principal. In finance, our principal is the initial amount of money borrowed or invested. And principle is the foundation of a concept, truth, or argument.

Let’s give this a try:

The principal, while covering a class for an absent economics teacher, instructed the class that the principle of safe investing is to protect your principal.

APR and APY

APR = Annual Percentage Rate, the declared or stated rate of interest for an investment or a loan, can also include fees.

APY = Annual Percentage Yield, the actual amount of interest earned (or paid) when including the effect of compounding.

You might see a CD with an APR of 4%, but it also lists an APY of 4.07%. Interest compounded (monthly in this case) attaches to and grows the principal, so at the end of a year, you’ve earned more than 4%. See the link at the end of the post for a great APR to APY calculator.

The Federal Reserve Bank and The U.S. Treasury

The Fed is the nation’s bank and the bank of banks. It was created by Congress in 1913, and its principal function is to manage the nation’s money supply to maintain stable inflation and employment. Jerome Powell is the current Chairman.

The Treasury was created by Congress in 1789 to manage the nation’s money and pay its bills. The Treasury prints money through its Bureau of Engraving and Printing and produces coins through the U.S. Mint. Janet Yellen is the current Secretary.

Although it’s not easy to define exactly what the Fed is or isn’t, it is easy to clarify this common misconception – the Fed does not print money, the Treasury does (it is true that the Fed’s actions can directly lead to the Treasury printing money, but the Fed itself does not print money).

401(k) and 403(b)

While both are tax-advantaged employee retirement accounts, they differ when it comes to participation and investment options. Eligibility is straightforward: 401(k)s are for employees of for-profit companies while 403(b)s are for employees of non-profit institutions. As for the investing part, 403(b)s can invest in annuities and mutual funds while 401(k)s can offer additional opportunities such as bonds, individual stocks, company stock, and ETFs (What’s an ETF? Read on…).

Mutual Funds and ETFs (Exchange Traded Funds)

These are both widely used options for investors to diversify their stock market holdings. The main differences lie in the details of how they are managed and traded.

Mutual Funds are actively managed, and trades can be made only at the end of each day. There can be a performance benefit from active management, but there are fees that come along with that.

ETFs are often passively managed and shares in the funds can be traded like stocks. ETFs often track an index or an investment sector. ETF investors like the flexibility of being able to trade shares during the day, just as they can with individual stocks.

The differences between the two are not as distinct as they once were, but each still has its niche in the world of stock market investing.

ATM Cards and Debit Cards

ATM cards allow access to an account only through ATM machines.

Debit cards allow access to accounts through ATM machines and through point-of-sale transactions, just like a credit card. Debit cards with the Visa and/or Mastercard logo are processing your purchases on the same digital money highway where all the credit cards drive. So, stay in your lane!

And, yes, ATM cards still exist. Some banks have done away with them, but they are around at most banks if you ask.

***

English is tough enough on its own, with an endless number of confusing words, homonyms, idioms, Adams, and atoms. When combined with the huge and ever-expanding glossary from the financial world, it can seem impossible to keep up. So, let’s keep learning little by little, word by word. To not do so would be… Inconceivable!

I don’t currently have a TV, and I am spending a few minutes of these TV-less days thinking about whether I want to have one again. However, I’m thinking back to when I still had a TV, and a conspicuous ad caught my ear. Yes, my ear. I was cooking, not really watching the screen, cutting veggies, and listening to Captain Picard bark out commands when I heard (paraphrasing), “I just got a new car … and I know I can afford it because it fits my monthly budget.”

Ahhhhhhh! I had to look up from my work, nearly causing an unfortunate carrot-knife-finger-slicing incident.

The ad in question was from a certain car company with a cute animal mascot and is just one in an endless line of examples showing the American marketing machine at work, making (excess) spending so easy—too easy.

We are conditioned from a young age to see costs based on monthly payments. Paying for things monthly has a place in our society and is not always a bad thing. It makes sense for mortgages, utilities, and other expenses that are incurred monthly. However, thinking we can afford something because it fits a monthly budget is at least a contributor to long-term financial stress and at most an absolute drain on our ability to build wealth and maintain financial stability.

Oh, I’ve Been There, Spent That

I have “owned” new cars; I loved them. Got my first one when I was 20, financed by my 30-hour/week grocery store job and my parents’ (co)signatures. It was a four-year loan on a Plymouth, but after just three years I saw a sporty Dodge Shadow and just had to have it. Of course, thanks to my low down payment and depreciation, I was upside down on the Plymouth—owing more than the value of the car.

“We can work with that,” the sales rep told me as he leaned on the soon-to-be mine Shadow and adjusted my sunroof. “What kind of monthly payment can you afford?”

Ah, there it is. They “rolled” my unresolved debt from Car #1 right into the loan for Car #2, added another year to the term at a slightly lower interest rate, and … it fit my monthly budget. The reality was, however, that it was a financial mistake. I couldn’t afford the car—the total cost of the car. Yet I did the same thing not three years later with new Car #3, which was a little more expensive and the loan included a little more debt “rolled” in from the last car.

I found my financial footing a full decade after Car #3, and a big part of getting things together was facing and understanding the cost of those car loan decisions. How bad? Let’s just say it was thousands in interest and depreciation. The worst part was learning that I had paid interest on the debt from Car #1 rolled into my payments on Car #2, and so on. The other worst part was when I came to understand the opportunity cost; the 5-digit actual costs in dollars could have been invested or used for education or saved to buy a future car—IN CASH!

Would a basic personal finance course in high school have helped me avoid this misstep? Who knows for sure, but I know I would have liked the chance to find out.

The Inevitable One-Hand/Other-Hand Analysis

The car payment is likely the biggest-ticket depreciating asset that we tend to cram into our monthly budget rather than looking at whether we can afford the total cost. But there are others like furniture, appliances, electronics, etc.

On one hand: Buying things based on payments gives us the ability to have things now that we can’t afford now.

On the other hand: Buying things based on payments gives us the ability to have things now that we can’t afford now.

The American Monthly Payment Mindset (AMPM—can I trademark that?) extends to mobile phones, insurance, and streaming services, just to name a few. True affordability requires looking beyond the 30-day view.

Tips and Disclaimer(s)

• Count smaller monthly items as annual expenses. For example, the average American has 4.3 streaming services at an average cost of $17 each. It’s far too easy to say, “Oh, I can sign up for QuickFlix, it’s only $17/month.” Maybe the question should be, “Hmmm…I am spending about $800/year on streaming services. Can I afford that? Can I afford thousands of dollars over five years? What else could I do with part or all of that money?”
• Analyze a car purchase based on the total cost of various options over a period of years, say seven, which is now the average term for car loans in the US. Compare new and used cars looking at that total number including expected repairs, interest, taxes, and insurance. Send me an email, please. I am happy to help with that process. I’ve crunched the numbers to dust, and I can say that buying a good used car and borrowing as little as possible always wins when it comes to the Best Financial Decision. For me, eliminating car payments from my life has been one of if not the biggest factor in turning my finances in the right direction.
• Turn the monthly payment mindset into something good—use it for savings. Cut a streaming service and start putting $17/month into an IRA or into a 529 education savings account. Try this savings calculator, watch the money grow.
• Determine what can be paid annually. My auto and home insurances are discounted by about $75 by paying in full for the year (or six months for auto). That is $75 to pay for something else or to save.
• If you are a millionaire, buy any car you want, and while you are at it, buy one for a friend.
• Business tries to make it easier for us to buy, putting the unaffordable within reach. That’s their job, maximizing stockholder wealth and all that. I get it. But our job is to spend less than we make today in order to have a better financial tomorrow.

I am not preaching; I have no right to. I’ve made the mistakes listed in this post—some more than once. I was fortunate to realize that the path I was on was draining my financial stability and my ability to build wealth. I was robbing my future self, the me of today, who has found solid ground but who has also become an expert in the “If I’d only known then…” phenomenon. I’d like to see a TV ad leave us with this thought, “I can afford this car because I sacrificed, saved my money, paid cash, and have no monthly payments.”