April is National Financial Literacy Month, where we can all take a few minutes to learn how money really works and apply simple lessons to our financial lives.
This movement (follow on Twitter using #FLmonth) is all about educating people to establish and maintain healthy financial habits.
Thanks to Steve from MoneyPlanSOS (who interviewed me on his podcast), a 2 minute video will be posted every weekday during April.
Last week, I made my first YouTube video debut, and talked about Being Self-Employed. I’ll be recording another one towards the end of the month!
Week 2
April 9th – 10 Roth IRA Questions
Phil Taylor from PT Money (and organizer of last year’s Financial Blogger Conference) shares 10 quick questions about the powerful investment vehicle, the Roth IRA.
(Check out my post for a more in-depth look at the basics of a Roth IRA)
- What is a Roth IRA?
- Is a Roth IRA an investment?
- How does it all work?
- Who should open one?
- Can I contribute to both a 401k and a Roth IRA?
- How do I open one?
- How much can I contribute into a Roth IRA?
- What type of investment should I put in my Roth IRA?
- Can I rollover an old 401k into a Roth IRA?
- Do you have a Roth IRA?
Watch the video on YouTube
Phil’s contact info:
April 10th – 4 Ways to Communicate About Money in a Relationship
- Communication has to be a 2-way street. Both partners know where the money is going and have a say in how the money is going to be spent
- Communication has to be honest. Deal with the true state of personal finance.
- Communication has to be consistent. Check in regularly. Example: Once before the beginning of the weekend, when many of the discretionary income purchases are made and again at the beginning of the week to see how well the money was handled over the weekend.
- Talk about money A LOT. Don’t get an “F” in communication about money (which is the #1 reason for divorce).
Good communication will get you and your partner on the same page with respect to a couple’s finances and get a lot of positive results such as:
- Living within your means
- Prevent accumulating debt
- Enjoying life
- Strengthen your relationship
Watch the video on YouTube
Travis’ contact info:
April 11th – Building up Your Emergency Reserve (Fund)
José Figueroa from Figueroa Financial Counseling in DFW area, talks about building up an emergency reserve.
First let’s define what an “emergency” situation is with regard to your finances. This would be an unexpected expense outside of your monthly cash flow plan (budget). Some examples include:
- Major Car Repairs
- Home Repairs (Garage Door, Electricity, Plumbing)
- Appliance Replacement (Water Heater, Washer/Dryer)
- Uncovered Medical Expense
So how much money do you need in your emergency reserve? Here is what I would recommend:
- Beginner’s emergency fund: $1,000 (or $500 if annual household income is less than $20,000.) Do this before you start paying down on your consumer debt. Most typical “emergencies” can be handled with a beginner’s fund.
- Full emergency fund: 3 to 6 months of monthly expenses (based on your monthly budget). Do this after you pay off your consumer debt.
And remember: there is Help and Hope for Your Finances!
Watch the video on YouTube
José contact info:
April 12th – Time Value of Clipping Coupons
Jenny from TheJennyPincher discusses the Time Value of Clipping Coupons. Clipping coupons is not a necessary part of getting out of debt as it doesn’t work for everyone.
It takes a lot of time, effort and money to get the best deals so when thinking about if its right for you here are three questions to ask yourself:
- How much time does it take each week?
- Could I be doing something better with my time?
- What is my return? What am I getting out of it?
Each situation will be different so you have to decide what works for you!
Watch the video on YouTube
Jenny’s contact info:
April 13th – The Importance of Saving for a Vacation
Jackie Walters from TheBudgetWorks produced this humorous video created by her daughter to exemplify the importance for us to save for a vacation.
Woven into the background of this drama skit are four important points to consider when planning a vacation:
- Pay for your vacation with CASH (Debit, check, or paper money)
- If taking a vacation is a priority, put it as a line item in your budget and start saving for it
- Make sure you can afford your vacation and do your research
- Don’t let your vacation follow you home because you charged it
Watch the (funny) video on YouTube
Jackie’s contact info:
I hope you’re enjoying the 2 minute Financial Literacy Month videos. You can find them all at YouTube.com/MoneyPlanSOS.
Check back next week for another set of daily videos.
Photo Credit: breahn
