Comments on: Daily Links: Little Big Edition http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/ Common sense advice on money saving tips, how to get out of debt, high interest savings accounts, cd rates, money market accounts, mortgage rates, money management and more. Mon, 20 May 2013 05:19:42 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Lilly R. http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147774 Lilly R. Thu, 11 Sep 2008 18:51:27 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147774 Friends of mine were given credit cards in high school with $200 limits on them. I'm not really sure if it taught them much - they weren't the one paying the bill, but i think it was a good idea. I know in my case, i did not have that privilege and got into a lot of trouble with credit cards right out of high school. I ended up applying for some card with a 19% APR, just because they were giving out free CD cases. Stupid, yes. But it did teach me a lesson and now i can safely say i will not make that mistake again. Luckily i am young enough that by the age of 27 none of it should affect me. The second time around i did some smart shopping and comparison before applying for my current credit card, a Capitol One. I went to the CardOffers website and read all of their reviews on cards and to Fat Wallet for a second opinion. Friends of mine were given credit cards in high school with $200 limits on them. I’m not really sure if it taught them much – they weren’t the one paying the bill, but i think it was a good idea. I know in my case, i did not have that privilege and got into a lot of trouble with credit cards right out of high school. I ended up applying for some card with a 19% APR, just because they were giving out free CD cases. Stupid, yes. But it did teach me a lesson and now i can safely say i will not make that mistake again. Luckily i am young enough that by the age of 27 none of it should affect me.

The second time around i did some smart shopping and comparison before applying for my current credit card, a Capitol One. I went to the CardOffers website and read all of their reviews on cards and to Fat Wallet for a second opinion.

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]]> By: Asha {Parent Hacks} http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147754 Asha {Parent Hacks} Thu, 11 Sep 2008 16:51:11 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147754 Thanks for pointing out the Parent Hacks post, JD. I was going to email you about it thinking you might find it interesting, but then you went ahead and found it on your own! Cheers -- Thanks for pointing out the Parent Hacks post, JD. I was going to email you about it thinking you might find it interesting, but then you went ahead and found it on your own! Cheers –

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]]> By: Adam http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147742 Adam Thu, 11 Sep 2008 15:43:36 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147742 I think in a lot of people's minds, the kind of person who would buy a multi-thousand dollar TV and watch it all the time is the exact same kind of personality that would have serious personal finance problems. The LCD is costly, and serves no real purpose. There isn't much of anything intelligent on TV, and it is an extremely expensive service (and increasing faster than the rate of inflation for quite a while now). In fact, it actively takes away from your time that you could be doing something productive. America has more TVs than people. I think in a lot of people’s minds, the kind of person who would buy a multi-thousand dollar TV and watch it all the time is the exact same kind of personality that would have serious personal finance problems.

The LCD is costly, and serves no real purpose. There isn’t much of anything intelligent on TV, and it is an extremely expensive service (and increasing faster than the rate of inflation for quite a while now). In fact, it actively takes away from your time that you could be doing something productive. America has more TVs than people.

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]]> By: Steve http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147657 Steve Wed, 10 Sep 2008 18:08:16 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147657 The 10 ways article says to get rid of your flat screen TV. I've read this a lot - apparently a flat screen TV is the new latte as the stereotypical example of consumer excess. I don't get it though - how many flat screen TVs do people buy in a year anyways? (To anwer my own question - if you buy a $1,500 TV and keep it for three years before you move it to the family room so you can upgrade, that's over $40 a month. So it's like a latte every other work day or so.) The 10 ways article says to get rid of your flat screen TV. I’ve read this a lot – apparently a flat screen TV is the new latte as the stereotypical example of consumer excess. I don’t get it though – how many flat screen TVs do people buy in a year anyways?

(To anwer my own question – if you buy a $1,500 TV and keep it for three years before you move it to the family room so you can upgrade, that’s over $40 a month. So it’s like a latte every other work day or so.)

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]]> By: Mark Nelson http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147636 Mark Nelson Wed, 10 Sep 2008 16:10:37 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147636 I believe we should be teaching personal finance to high school kids and adults. It is true that not all the students will retain what is taught (that is true in all classes) but we have to introduce kids to financial ideas and concepts. Basic money ideas should be taught in elementary school. Kids can grasp more than we think. I believe we should be teaching personal finance to high school kids and adults. It is true that not all the students will retain what is taught (that is true in all classes) but we have to introduce kids to financial ideas and concepts.

Basic money ideas should be taught in elementary school. Kids can grasp more than we think.

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]]> By: Paul http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147627 Paul Wed, 10 Sep 2008 15:08:51 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147627 One of the things kids learn from me is the difference between income and wealth. That starts a more in depth look at balance sheets and income statements, and what they might look like for a wealthy person vs a person with high income. That leads into explaining more difficult concepts (the effect of paying interest on a depreciating asset, for example) on a simple balance sheet. One of the kids had a goal of "I want to make a million dollars". We had a very good conversation about that goal, and changed it to "I want to have a million dollars when I'm 30". Kids get into that kind of thing, especially if you have a cool acronym (goals are SMART) and can relate it even to their situation. Understanding how all this stuff fits together is critical. One of the things kids learn from me is the difference between income and wealth. That starts a more in depth look at balance sheets and income statements, and what they might look like for a wealthy person vs a person with high income.

That leads into explaining more difficult concepts (the effect of paying interest on a depreciating asset, for example) on a simple balance sheet.

One of the kids had a goal of “I want to make a million dollars”. We had a very good conversation about that goal, and changed it to “I want to have a million dollars when I’m 30″. Kids get into that kind of thing, especially if you have a cool acronym (goals are SMART) and can relate it even to their situation.

Understanding how all this stuff fits together is critical.

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]]> By: Finn http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147623 Finn Wed, 10 Sep 2008 14:55:43 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147623 I have to agree with the financial education being... less useful than we would like to believe. I believe this finding has been noted many times before - very few actually change behaviour based on education. If anything, education can impede real change because it doesn't directly influence behaviour. It effectively allows us to "do" something without actually "doing" anything. However, I think there is a difference between financial education and financial training. You can change behaviour by retraining actions, although this is much easier when you are dealing with children. In the end, the kids don't even need to understand ("education"), they just need to behave in a positive way. It's the same principle as teaching your kid morality - most won't really understand why you don't do something, but they will accept it. When you are an adult, education isn't hard... but retraining is! It's one reason that the "financial breakdown" is so common in change stories... it's one of the few things that overcomes inertia and triggers behaviour change. I have to agree with the financial education being… less useful than we would like to believe. I believe this finding has been noted many times before – very few actually change behaviour based on education. If anything, education can impede real change because it doesn’t directly influence behaviour. It effectively allows us to “do” something without actually “doing” anything.

However, I think there is a difference between financial education and financial training. You can change behaviour by retraining actions, although this is much easier when you are dealing with children. In the end, the kids don’t even need to understand (“education”), they just need to behave in a positive way. It’s the same principle as teaching your kid morality – most won’t really understand why you don’t do something, but they will accept it.

When you are an adult, education isn’t hard… but retraining is! It’s one reason that the “financial breakdown” is so common in change stories… it’s one of the few things that overcomes inertia and triggers behaviour change.

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]]> By: dale http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147617 dale Wed, 10 Sep 2008 14:12:09 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147617 I think what Paul's doing is great! Why basic consumer education isn't a required course in public schools is beyond me. Let's be honest about education. Not every student will use a lot of the course that are required by the Board of Education, but every student will be a consumer after leaving school. Most students will have bank accounts, will need to borrow money and plan for their financial futures, but we don't teach these skills in our schools. I'll never understand why. I think what Paul’s doing is great! Why basic consumer education isn’t a required course in public schools is beyond me. Let’s be honest about education. Not every student will use a lot of the course that are required by the Board of Education, but every student will be a consumer after leaving school. Most students will have bank accounts, will need to borrow money and plan for their financial futures, but we don’t teach these skills in our schools. I’ll never understand why.

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]]> By: Andrea http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147616 Andrea Wed, 10 Sep 2008 14:02:25 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147616 I think that you need to teach at the level a person needs. No point in teaching about mutual funds/ETFs/capital gains to someone who can't do basic math and needs to know how much she/he is making at 7.50 an hour for 30 hours. You can teach budgeting/how a checking account/ATm works(my kids thought the money was "free" when they were little- seems like some adults do too) and keep moving to higher levels. No matter what you teach, some of the people will never get it- so hey, let's give up on education. I think that you need to teach at the level a person needs. No point in teaching about mutual funds/ETFs/capital gains to someone who can’t do basic math and needs to know how much she/he is making at 7.50 an hour for 30 hours. You can teach budgeting/how a checking account/ATm works(my kids thought the money was “free” when they were little- seems like some adults do too) and keep moving to higher levels. No matter what you teach, some of the people will never get it- so hey, let’s give up on education.

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]]> By: JezDonovan http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147615 JezDonovan Wed, 10 Sep 2008 14:01:00 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147615 JD. I have been applying your suggestions about using an allowance to teach kids about money. (http://threethinkinghats.wordpress.com/2008/09/09/pocket-money-jars-parents/) The four transparent jars (Spending, Savings, When I'm Old, and Charity) have provoked my six-year-old daughter to ask some great questions about the nature of investment, credit, frugality, and - although we have only been going for a couple of months - I can see her starting to develop good habits already! Thx for the advice. JD. I have been applying your suggestions about using an allowance to teach kids about money. (http://threethinkinghats.wordpress.com/2008/09/09/pocket-money-jars-parents/) The four transparent jars (Spending, Savings, When I’m Old, and Charity) have provoked my six-year-old daughter to ask some great questions about the nature of investment, credit, frugality, and – although we have only been going for a couple of months – I can see her starting to develop good habits already! Thx for the advice.

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]]> By: Sara http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147613 Sara Wed, 10 Sep 2008 13:23:47 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147613 I can see how high school may be too late. I think financial education starting before kids reach their teens and have access to their own money and the peer pressure to spend would be wise. Paul's program sounds great. Non-education seems counterintuitive. How will people know if the professional planner is selling them a good product if they are completely uneducated? I can see how high school may be too late. I think financial education starting before kids reach their teens and have access to their own money and the peer pressure to spend would be wise. Paul’s program sounds great.
Non-education seems counterintuitive. How will people know if the professional planner is selling them a good product if they are completely uneducated?

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]]> By: Paul http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147604 Paul Wed, 10 Sep 2008 11:49:36 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147604 I teach personal financial management to an inner city youth group, mostly 6th thru 8th grade. We focus on microeconomics, goal setting, and financial fundamentals (balance sheet, income vs. wealth, depreciation). The concepts are all the same ones I got in grad school, put in terms kids can understand. My 8 year old nephew understands opportunity cost; sometimes I think we underestimate what kids can grasp. The most effective thing we've done centered on goal setting. I teach personal financial management to an inner city youth group, mostly 6th thru 8th grade.

We focus on microeconomics, goal setting, and financial fundamentals (balance sheet, income vs. wealth, depreciation). The concepts are all the same ones I got in grad school, put in terms kids can understand.

My 8 year old nephew understands opportunity cost; sometimes I think we underestimate what kids can grasp.

The most effective thing we’ve done centered on goal setting.

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]]> By: Writer's Coin http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147599 Writer's Coin Wed, 10 Sep 2008 10:56:41 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147599 Buffett, hmmmmm... Buffett, hmmmmm…

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]]> By: J.D. http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147593 J.D. Wed, 10 Sep 2008 04:59:04 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147593 Interesting. TheStreet.com is intercepting the referrals to the /print/ page (which has everything in one block) and redirecting to the "split in four page". Rather than deal with that crap, I've linked to the Yahoo! reprint, which puts it all on a single page. Interesting. TheStreet.com is intercepting the referrals to the /print/ page (which has everything in one block) and redirecting to the “split in four page”. Rather than deal with that crap, I’ve linked to the Yahoo! reprint, which puts it all on a single page.

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]]> By: J.D. http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147592 J.D. Wed, 10 Sep 2008 04:56:04 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147592 <b>@Ken</b> Wait until you see the article about Warren Buffett I've written up for the morning: the original site has ten hints spread over <i>ten</i> pages. Also, now that I think about it, the ten hints from Strain were all on one page when I saw them. I'll have to see if I can't fix that for you guys... @Ken
Wait until you see the article about Warren Buffett I’ve written up for the morning: the original site has ten hints spread over ten pages.

Also, now that I think about it, the ten hints from Strain were all on one page when I saw them. I’ll have to see if I can’t fix that for you guys…

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]]> By: Alison Wiley http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147590 Alison Wiley Wed, 10 Sep 2008 03:28:18 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147590 I agree with the original post that we need to remember the Big Picture principles and not get lost in the weeds (little details) of money management. Loving my life as it is, is one of my core principles. I was just telling my husband at dinner tonight that if we suddenly had a lot more money, there is no particular thing about my current life I would want to change. He had trouble believing that . . . . but if you read this short piece of mine it will make more sense: http://www.diamondcutlife.org/about/ I agree with the original post that we need to remember the Big Picture principles and not get lost in the weeds (little details) of money management. Loving my life as it is, is one of my core principles. I was just telling my husband at dinner tonight that if we suddenly had a lot more money, there is no particular thing about my current life I would want to change. He had trouble believing that . . . . but if you read this short piece of mine it will make more sense:
http://www.diamondcutlife.org/about/

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]]> By: Ken http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147589 Ken Wed, 10 Sep 2008 03:27:55 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147589 Nice article about 10 tough ways to boost your bottom line, but sheesh...10 ways split over 4 pages? Looks like he's trying to boost his bottom line with ad impressions... Nice article about 10 tough ways to boost your bottom line, but sheesh…10 ways split over 4 pages? Looks like he’s trying to boost his bottom line with ad impressions…

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]]> By: Neil http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147586 Neil Wed, 10 Sep 2008 02:55:15 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147586 The comment about financial education is very telling. I work for a major bank and am always amazed at the lack of knowledge and awareness a large percentage of my client base has about their own financial matters. More education is not a bad thing in my opinion. The comment about financial education is very telling. I work for a major bank and am always amazed at the lack of knowledge and awareness a large percentage of my client base has about their own financial matters. More education is not a bad thing in my opinion.

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]]> By: Twenties Money http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147582 Twenties Money Wed, 10 Sep 2008 02:05:08 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147582 We had drama over at Twenties Money Magazine today. Our article was featured on MSN blogs and inspired over 120 comments on the MSN Blog and a few dozen on ours... Credit cards always bring out the best in everyone! http://blogs.moneycentral.msn.com/smartspending/archive/2008/09/08/top-false-beliefs-about-credit-cards.aspx http://twentiesmoneymag.com/blog/2008/09/08/tmm-top-20-dumb-credit-card-rumors/ We had drama over at Twenties Money Magazine today. Our article was featured on MSN blogs and inspired over 120 comments on the MSN Blog and a few dozen on ours… Credit cards always bring out the best in everyone!

http://blogs.moneycentral.msn.com/smartspending/archive/2008/09/08/top-false-beliefs-about-credit-cards.aspx
http://twentiesmoneymag.com/blog/2008/09/08/tmm-top-20-dumb-credit-card-rumors/

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]]> By: A. Dawn http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147579 A. Dawn Wed, 10 Sep 2008 01:46:18 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147579 This has to be a coincidence! I like to read a variety of topics ranging a wide array of subjects. That's what I expect from GRS. Totally agree with Ryan Mclean. I just posted an article on my site regarding content mixing. Why I Mix Content - http://adawnjournal.com/2008/09/09/why-i-mix-content/ Cheers. A Dawn Journal This has to be a coincidence! I like to read a variety of topics ranging a wide array of subjects. That’s what I expect from GRS. Totally agree with Ryan Mclean. I just posted an article on my site regarding content mixing. Why I Mix Content – http://adawnjournal.com/2008/09/09/why-i-mix-content/
Cheers.
A Dawn Journal

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]]> By: Kim http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147577 Kim Wed, 10 Sep 2008 01:20:55 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147577 The Money Magazine interviewee stated that research indicates that adult financial education really doesn't help very much. To a society that strongly believes in education, this is counter-intuitive. That doesn't, however, make the findings false. The Money Magazine interviewee stated that research indicates that adult financial education really doesn’t help very much. To a society that strongly believes in education, this is counter-intuitive. That doesn’t, however, make the findings false.

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]]> By: Ryan McLean http://www.getrichslowly.org/blog/2008/09/09/daily-links-little-big-edition/comment-page-1/#comment-147576 Ryan McLean Wed, 10 Sep 2008 01:01:27 +0000 http://www.getrichslowly.org/blog/?p=2044#comment-147576 I believe that GRS has grown as you have grown. At first it was kind of like "All debt is bad! Stay away from debt". But now that you know how to manange money and debt well you can talk about how to use debt effectively which is good. My blog grows with me also. As I make more money online the content of my entrepreneurs blog changes. This is a natural process. Don't bother trying to stick to the old because that is what you used to do. Be who you are and people will love it I believe that GRS has grown as you have grown. At first it was kind of like “All debt is bad! Stay away from debt”. But now that you know how to manange money and debt well you can talk about how to use debt effectively which is good.
My blog grows with me also. As I make more money online the content of my entrepreneurs blog changes. This is a natural process.

Don’t bother trying to stick to the old because that is what you used to do. Be who you are and people will love it

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