Financial literacy report suggests changes
The President’s Advisory Council on Financial Literacy has produced a report (.pdf file) listing the group’s accomplishments and a laundry list of recommendations. I’m all for financial literacy. A lack of basic financial knowledge leaves consumers vulnerable to bad loans, scams and just plain bad spending habits. But I found a few of these recommendations to be eye-openers.
Here’s a sample:
The President should direct the United States Department of the Treasury and the United States Department of Education to take the necessary steps to require college students to take a more comprehensive course in financial literacy (or pass a competency test) than the present entrance and exit counseling requirements, as a condition of receiving Federally funded or Federally guaranteed student loans.
The United States Congress should require financial institutions to provide every adult American with access to an electronic, debit card-accessible depository account protected by the Federal Deposit Insurance Corporation or the National Credit Union Administration.
The United States Congress should provide Federal funding for any non-profit organizations working on community-based financial literacy programs and for state and local governments demonstrating leadership in financial education for their residents.
Don Mecoy
Business Writer
The meaning of thrift
A thrift initiative has created a quiz to gauge what thrift means to people. Among the questions (all to be answered in five words or less):
Thrift is ________
The opposite of thrift is ___________
Best all-time thrift movie ____________
Best all-time anti-thrift movie ___________
All-time most admirable U.S. millionaire ____________
All-time most destructive anti-thrify U.S. institution ____________
Most valuable current pro-thrift idea ____________
The author’s answers can be seen here. But answer at least a few of the questions before clicking through. The author and I agreed on the best all-time thrift movie and most notorious U.S. anti-thrift millioniare.
Don Mecoy
Business Writer
Phishing: don’t get caught
Commoncraft.com has produced an easy-to-understand video that explains what Phishing is, how to avoid being a victim of this scam and what to do if you think you might have provided sensitive personal information to a scammer.
Don Mecoy
Business Writer
Accountability in the age of financial insanity
My friend Dan admits he’s no financial expert.
But even a high-finance novice could smell something rotten in the advertising come-ons the last few years that urged homeowners to refinance their mortgages for up to 120 percent of their equity. After all, what’s the financial logic behind an invitation to refinance my mortgage beyond its original value?
Then when the homeowner defaults on the mortgage the fallout cascades down the line. Dan wants to know: who’s going to be held accountable for this?
Read Dan’s incisive analysis of the whole sorry situation that has brought down some of the nation’s biggest banks and required a government bailout of almost a trillion dollars. That’s a lot of zeroes.
Jim Stafford
Business Writer
The richest Oklahomans
Forbes has issued its annual list of the wealthiest Americans, and, just like last year, six Oklahomans made the cut. Again, Tulsa oilman, investor and banker George Kaiser (seen at left) leads the way with an estimated fortune of $12 billion.
The local rankings are little changed from last year. But tracking the fortunes of rich folks, particular rich folks who reside nearby, is always interesting. A stock market slump combined with sliding energy prices may have taken a bite out of some of these fortunes.
This shows the overall ranking, name, age, and origin of wealth:
20. George Kaiser, 66, $12 billion (oil & gas, banking).
42. Harold Hamm, 62, $7 billion (oil).
134. Aubrey McClendon, 49, $3 billion (natural gas).
155. Tom Ward, 49, $2.7 billion (natural gas).
163. Lynn Schusterman, 69, $2.5 billion (oil & gas, investments).
281. David Green, 66, $1.7 billion (Hobby Lobby).
Don Mecoy
Business Writer
Losing money where money never has been lost before
As I walked off the elevator this morning, a photographer looked up and greeted me with a hearty “The economy is really messed up, huh?” To which, I smartly replied, “Pretty much, yeah.” That’s just the kind of snappy repartee we mainstream media types engage in here at the dark tower.
But here’s something that demonstrates that maybe I know what I’m talking about — a money market fund that has lost money. Just when you think things can’t get any more “messed up,” they go and do.
The fund said that because the value of some investments had fallen, customers now have only 97 cents for each dollar they had invested.
This is only the second time in history that a money market fund has “broken the buck” — that is, reported a share’s value was less than a dollar.
My favorite part is the last graf: “We’re really in uncharted territory here,” said Peter Crane, the president of Crane Data, a fund industry newsletter.
You said it, Pete.
Don Mecoy
Business Writer
Black Friday deal forecast
Dealnews.com, an online site that links to sale items at Internet retailers, has issued some predictions about the low, low prices we can expect on Black Friday, the traditional post-Thanksgiving shoppying frenzy day. Some of these predicted prices are eye-popping.
How does a well-equipped laptop for $399 sound? Well, then, how about 42-inch plasma TV for $499?
Dealnews expects a slew of electronic geegaws, such as thumb drives, routers and memory cards, will be available for $0 (after rebate).
If you like to plan your shopping in advance, Dealnews is a must-read.
Don Mecoy
Business Writer
An expensive credit card
Consumer Reports is issuing a list of what it considers to be the best and worst credit cards. One the magazine says to avoid is the First Premiere Bank card. I decided to look at the company’s Web site to evaluate its offer.
The card appears to be aimed at consumers who need to build a credit history. But look at what appears on your very first bill:
- Annual Fee of $48
- Account Set-Up Fee of $29
- Program Fee of $95
- Monthly Servicing Fee of $7
- An Additional Card Fee of $20 per card (if applicable).
A $25 fee is levied to increase your credit limit. The company charges a $3.95 Internet access fee. You will pay an $11 charge each time you pay your bill through an autodraft. Express delivery of a lost, stolen or destroyed card will cost $25.
And here is First Premiere’s privacy policy:
We may collect “nonpublic personal information” about you from various sources including applications, account forms, transactions with us or affiliates, or consumer reporting agencies.
We may disclose all of the information about you that we collect.
I’ll pass.
Consumer Reports recommends the following low-rate/low fee credit cards: Capital One Platinum Prestige, Clear from American Express, and Iberiabank Visa Classic.
The best cash-back cards included Capital One No Hassle Cash Rewards, Chase Freedom Visa, and Discover More.
Among the best gas cards were Chase PerfectCard MasterCard, Discover Open Road, and Hess Platinum Visa.
Don Mecoy
Business Writer
Sharing a credit card — love or folly?
Most consumers have shared a credit card account with another person, with varied results, according to a recent survey commissioned by creditcards.com.
Nine percent of respondents said sharing a credit card made them feel closer to the person.
But nearly one in five people who have shared an account report that the arrangement has sparked arguments. And seven percent said they have canceled a credit card because of personal conflicts.
Most shared accounts involved a spouse or partner, but about 20 percent of those surveyed said they had shared an account with a child or adult child.
My wife and I share a credit card account, mainly because I fear that I wouldn’t be able to keep up with separate accounts. But I have to admit some squeamishness with the prospect of sharing my credit with one of my kids.
Don Mecoy
Business Writer
Final word on poverty stats
The U.S. Census Bureau’s voluminous statistics on poverty, income and the uninsured produced a lot of stories, including here at NewsOK.com. But the Oklahoma Policy Institute has extracted a lot of local data.
Check out the group’s Web site for a lot of pertinent information.
Don Mecoy
Business Writer
