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What are some very basic tips/advice to give to poor/uneducated people re: money
Posted on 4/12/17 at 10:24 am
Posted on 4/12/17 at 10:24 am
I'm thinking of starting a non-profit that will be focused on giving basic "life advice" to lower SES persons and a major focus will be basic financial literacy. essentially, teach them a way to get out from under the weight of their bad decisions but more importantly, give them the tools to teach their kids these values so the kids never get stuck
i'm thinking of buying a dave ramsey book (i know he's not the most popular guy on here but his work is tailor-made for this demographic), but i figured the combined wisdom of MT would give me some good tips (or perhaps a better example than dave ramsey)
i'm thinking of buying a dave ramsey book (i know he's not the most popular guy on here but his work is tailor-made for this demographic), but i figured the combined wisdom of MT would give me some good tips (or perhaps a better example than dave ramsey)
19
Posted on 4/12/17 at 10:29 am to SlowFlowPro
I'd tell them do NOT make an average of 71 posts a day like some guy at TD.com named SFP! get a life! unless of course those posts were helping and giving advice on MT and not the cesspool aka OT. 
Posted on 4/12/17 at 10:39 am to SlowFlowPro
Never buy anything on a credit card you can't pay for now, and pay any credit card off monthly.
This post was edited on 4/12/17 at 10:40 am
Posted on 4/12/17 at 10:47 am to BACONisMEATcandy
yeah i'm thinking of like 4-5 topics that can go about an hour. something like
1. savings, investments, debt/credit, etc generally (set up the expectation and overall goal status). go over how Americans generally don't save shite and if they can get to x-level, they're already ahead of y-% of the country (kind of like a positive reinforcement and validation setup). create the "boss level" status so they have a goal
2. credit cards and car loans. these 2 areas seem to get poor people in so much trouble and in holes they can't ever get out of. these also require some intricate discussion ad details. cars are just such a major purchase and credit cards are necessary to build credit so you basically have to set up like a monthly pattern to get people used to using them correctly
3. lifestyle luxuries. clothing, beautification, cell phones, cable tv, entertainment, gambling, etc. "small" things that add up quickly and can easily be scaled back for long-term savings. i always think of lifestyle choices as like the margins and making good choices here increases your savings margins a great deal
just trying to think of other angles/subjects or pointers
1. savings, investments, debt/credit, etc generally (set up the expectation and overall goal status). go over how Americans generally don't save shite and if they can get to x-level, they're already ahead of y-% of the country (kind of like a positive reinforcement and validation setup). create the "boss level" status so they have a goal
2. credit cards and car loans. these 2 areas seem to get poor people in so much trouble and in holes they can't ever get out of. these also require some intricate discussion ad details. cars are just such a major purchase and credit cards are necessary to build credit so you basically have to set up like a monthly pattern to get people used to using them correctly
3. lifestyle luxuries. clothing, beautification, cell phones, cable tv, entertainment, gambling, etc. "small" things that add up quickly and can easily be scaled back for long-term savings. i always think of lifestyle choices as like the margins and making good choices here increases your savings margins a great deal
just trying to think of other angles/subjects or pointers
Posted on 4/12/17 at 10:47 am to SlowFlowPro
Alternatives to pay day loans
Compounding interest
Creating a budget
Mint.com to track said budget
Setup a checking account with a reputable bank
Don't use check cashing places
Never use Rent A Center or similar for depreciating assets
Use a reputable CPA or service to file taxes
Never carry credit card debt
Only have a credit card once you have a budget and show responsibility
For those that struggle to save, use an example such as Acorns which allows someone to save without any additional effort
Don't buy an expensive car
That's what I've got off hand...
Compounding interest
Creating a budget
Mint.com to track said budget
Setup a checking account with a reputable bank
Don't use check cashing places
Never use Rent A Center or similar for depreciating assets
Use a reputable CPA or service to file taxes
Never carry credit card debt
Only have a credit card once you have a budget and show responsibility
For those that struggle to save, use an example such as Acorns which allows someone to save without any additional effort
Don't buy an expensive car
That's what I've got off hand...
Posted on 4/12/17 at 10:55 am to SlowFlowPro
Teach them about interest rates. Poor people usually have bad/no credit because they can't afford to keep up with monthly bills. If an emergency comes up and they need to put $500 on a credit card, the reality is many can't pay that off by the end of the month.
Used car dealerships absolutely railroad these kinds of people with interests rates of 15% and higher. They end up paying thousands of dollars more than the car is worth.
Used car dealerships absolutely railroad these kinds of people with interests rates of 15% and higher. They end up paying thousands of dollars more than the car is worth.
Posted on 4/12/17 at 10:55 am to SlowFlowPro
Tell them to stop having babies.
Posted on 4/12/17 at 10:57 am to BACONisMEATcandy
quote:
Never buy anything on a credit card you can't pay for now, and pay any credit card off monthly.
Poor uneducated people should probably not have a credit card to begin with. Like giving an Uzi to a toddler.
Posted on 4/12/17 at 11:09 am to SlowFlowPro
Tech them about the dangers of predatory lenders.
Posted on 4/12/17 at 11:30 am to Teddy Ruxpin
Agreed. I think a better way for poor uneducated people is to do something as old school as having cash in an envelope for each day.
Posted on 4/12/17 at 12:04 pm to Teddy Ruxpin
quote:
Poor uneducated people should probably not have a credit card to begin with.
no they need to establish credit and develop a habit of how to properly use one
Posted on 4/12/17 at 12:07 pm to SlowFlowPro
quote:
no they need to establish credit and develop a habit of how to properly use one
exactly. When I was poor and starting out I would prepay my budget for the month on my credit card. When I got down to $0 balance I couldn't spend any more that month.
They should learn to NEVER swipe their debit card anywhere but an ATM.
Also I would explain the difference between credit unions vs banks and the adavatages each offer.
Posted on 4/12/17 at 12:17 pm to BACONisMEATcandy
quote:
When I was poor
I mean, we can all admit that we had to budget in our lives, but let's not go crazy here. 
Posted on 4/12/17 at 12:37 pm to lynxcat
I like that list, a few on there I would not have considered, but I have 2 to add.
When discussing how to use credit cards to their advantage (helping credit score), also explain how to understand the reward programs so they can get the best one for them (cash back v travel).
When using a mint.com type software budget in savings as a mandatory monthly/weekly expense and teach the importance of forcing themselves to save for big ticket items (TV, Car, vacation, retirement...).
When discussing how to use credit cards to their advantage (helping credit score), also explain how to understand the reward programs so they can get the best one for them (cash back v travel).
When using a mint.com type software budget in savings as a mandatory monthly/weekly expense and teach the importance of forcing themselves to save for big ticket items (TV, Car, vacation, retirement...).
Posted on 4/12/17 at 12:57 pm to SlowFlowPro
Compounding interest/time in the market.
If more people knew how little it would take to invest at 20 years old and have a huge nest egg this world would be in much better shape.
If more people knew how little it would take to invest at 20 years old and have a huge nest egg this world would be in much better shape.
Posted on 4/12/17 at 1:04 pm to KG6
Everything is relative, I'll give you that. 
I guess I should have said poorer
I guess I should have said poorer
Posted on 4/12/17 at 1:09 pm to SlowFlowPro
Everything you teach them should be centered around the theme of "stop being a sucker". Payday loans, 100/month cell phone plans, used car dealerships, rent-to-own, among many other enterprises all profit off the stupidity of poor people. Call them out on it and put a chip on their shoulder.
If it's in a classroom setting, make each individual admit to and describe a situation where they made a dumb decision financially, and then use that to springboard discussion with the class.
If it's in a classroom setting, make each individual admit to and describe a situation where they made a dumb decision financially, and then use that to springboard discussion with the class.
This post was edited on 4/12/17 at 1:12 pm
Posted on 4/12/17 at 1:16 pm to SlowFlowPro
Also pertinent would be programs available to them due to their economic status. Not just welfare, but I'm sure there are a variety of other lesser known programs that they could utilize. Especially when it's for purposes of education, self improvement, etc.
I would be happy to help make an outline for a subject. I think your in north LA and I'm in NOLA so I couldn't teach.
It might also be worthwhile to partner with a local foundation and hold the classes there. For example, something like New Orleans Women and Childrens Shelter could host the event and you could teach their members. You could do it with other worthy groups and also make sure some are open to any and all so it's not too limited.
I would be happy to help make an outline for a subject. I think your in north LA and I'm in NOLA so I couldn't teach.
It might also be worthwhile to partner with a local foundation and hold the classes there. For example, something like New Orleans Women and Childrens Shelter could host the event and you could teach their members. You could do it with other worthy groups and also make sure some are open to any and all so it's not too limited.
Posted on 4/12/17 at 1:29 pm to lighter345
quote:
no they need to establish credit and develop a habit of how to properly use one
This is like sitting heroin in front of a heroin attic and telling them don't touch it to teach self control. Credit should not be given until sound financial principles are ingrained in a person. If not the lesson of properly using a credit card can easily end the borrower up in collections with poor credit for years.
This post was edited on 4/12/17 at 1:31 pm
Posted on 4/12/17 at 1:31 pm to SlowFlowPro
One thing that might get overlooked is TVM as it pertains to mortgages, auto loans, and retirement
I think most people are pretty clueless about it
ETA- but mostly retirement. I think most people would be shocked at how far a few thousands dollars invested in their 20s and 30s will go as opposed to waiting until their 40s and 50s.
I think most people are pretty clueless about it
ETA- but mostly retirement. I think most people would be shocked at how far a few thousands dollars invested in their 20s and 30s will go as opposed to waiting until their 40s and 50s.
This post was edited on 4/12/17 at 1:34 pm
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