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Monthly Archives: March 2014

Financial Tips for Teens

Whether they realize it or not most teens need help with their financial future. Too many of them feel that they are too young to deal with it now, and that they can worry about it later in life. If they can get a start on saving money and learning how to be smart financially it will really pay off for them in the future.

The first thing teens need to do is to realize that they need to start saving now even if it is just a small amount at a time, every bit adds up. The younger they start the better off they will be. Even if they do not have a bank account yet, for whatever reason, they can still save money. They can put it into a jar and then when they do get a savings account, they can put it all in right away. Starting young is the best thing you can do for savings, especially if you have a bank account, the interest will add up quickly.

The next thing that teens need to do is to understand credit cards and how they work. They should understand why it is a good idea to stay away from them. They should also know how to use them properly if they do have one for emergencies. Too often a teen will get a credit card and not have been educated enough about it and use it too much. This leaves them with debt before they really get started with their life.

Every teen should be taught how to create a budget, how to review it, and how to revise it. They should also understand the importance of not only knowing how to do this, but why it is so important to have one. The younger they can get started working with a budget the easier it will be when they become adults. Using a budget will be like second nature to them.

Financial education is an important thing for all teens. They should look for ways that they can learn more about the world of finance so that they are better prepared for their future. There are many banks and credit unions that will teach teens about finances. Take advantage of the places that are willing to educate the teens, the sooner they learn about this stuff the better off they will be down the road.

You can never say what the future holds. You do not know what the economy will be like in ten years, five years, or even next year. It is better to educate teens while they are still young so they are able to handle whatever happens. Investing in their financial education is an investment in their future.

The FDIC’s Unbanked and Underbanked Survey

Just last month the FDIC released a new survey about the homes in the United States that were considered underbanked and unbanked in the year 2011. This survey shows how many homes were considered to be underbanked and how many homes were considered to be unbanked. The point of the survey is for policymakers to gather data to support evidence that they use in policy making.

The FDIC’s survey shows that in the year 2011 about ten million household were without a checking account and a savings account. This works out to be about 8.2 percent of the households in America today. This survey also showed that 20.1 percent of the homes in this country have a bank account of sometime but choose to use other financial institutions than their banks. These are the underbanked of the country.

Experts agree that the results of this survey show that banks have more work to do to get customers back and to bring new ones to their institution. This also shows that there is a real demand for check cashing services. These non-bank financial institutions are meeting the needs of people where banks are falling short.

Where the banks are charging fees that are getting higher and higher by the year, and more and more are popping up, check cashing services have straight forward flat fees that make it much easier for the consumer to understand and follow. Banks are adding fees to services that were previously free; they are upping the fees on the services that have fees already.

When all is said and done, check cashing companies are not hiding fees and charging their customers fees that they are unaware of and do not understand. With payday companies you are given the fees upfront. There is nothing that is hidden from the customer, they know the amount that they will get, the exact amount that they will have to pay back, and when exactly they have to pay it back.

It is easy for one to see when they look at the FDIC’s latest survey that banks do have quite a bit of competition now. They have their work cut out for them if they plan on keeping the customers they have, bring back the ones that they lost, and to bring in new customers. Payday lenders are not going to give up easily though. Customers have decided they like what check advance loan companies have to offer and are not looking to turn away from that.

We can learn a lot from the FDIC’s survey. More importantly banks can learn a lot from the survey. This shows the changes that have taken place in the banking industry and what changes may come. If you compare the surveys that the FDIC has put out it will show trends in the underbanked and unbanked. Looking at these trends from the past can help to predict the trends of the future.