As featured in The Wall Street Journal, Money Magazine, and more!

Uncategorized

Last week, I walked into a hip coffee shop nestled between Ann Taylor Loft and Urban Outfitters. Located in a family-friendly Chicago neighborhood on a cheerful, bustling street, the cafe didn’t appear to be anything other than typical. However, I soon learned that Next Door Cafe was offering a lot more than your run-of-the-mill espresso.

ndcWalking in, I saw a long wooden bar flanked with a case of fancy pastries. The 25-year-old hipster barista casually asked if I wanted to open a tab, assuming that I was going to stay for more than one latte. I took out my laptop and settled into a picnic table on wheels (all the furniture is on wheels so that the layout can change week to week).

The wall behind me showcased paintings by local artists, all of which appeared to be on sale. Other whiteboard-covered walls were everywhere, filled with inspirational quotes and goals for a community winter coat drive. Everything in the store was temporary and configurable; perhaps as a reminder that ndc2we should always be evolving.

A hostess sat near the front door like a hotel concierge. Her job was to greet guests and coordinate walk-in appointments. Wait… appointments? At a coffee shop? You bet — Next Door Cafe is doing something really unique to help Chicagoans with their money.

Two full-time, on-site financial planners hold office hours during the week, as well as a few weekends a month. Appointments are held in pods, or giant cubes outfitted with two couches and a table (also on wheels). In the privacy of a pod, anyone can discuss personal financial goals such as budgeting, understanding car loans, paying off debt, and saving for retirement. Some topics are handled in a single session, while others take multiple visits. Everything is tailored to an individual, and unlike a traditional advising appointment, every session is free. It’s approachable and it’s inclusive.

More than just money

It’s not just for people seeking financial help, either. A woman sitting at my table was sketching in her journal while she waited for the How to Self-Publish a Book lecture to start. She comes to many events because she likes networking with other authors. Do so has shown her new ways to make her business more efficient; “Artists and entrepreneurs like me need help,” she explained.

Several days out of the week, the café holds lectures about money. Aside from that, local volunteers teach about entrepreneurship, social media, and self-development. I heard there has even been a yoga class. The classes are diverse because they are led by local professionals. These volunteers submit their ideas and agree to share their expertise for free.

Those who prefer more personalized attention can schedule appointments online for one-on-one advice. They can cover any topic in which they have a need, including setting up businesses, writing resumes, configuring WordPress, and even life-coaching — just to name a few. The café seems to understand that personal finance is more than just budgeting. Being financially successful encompasses knowledge, business skills, and the ability to manage stress.

People of varying ages and industries come together to learn from one another. For example, the coffee shop is also a pitstop for students. I spoke with a young PhD candidate who has been coming to the cafe several days a week, simply because she enjoys the staff and the atmosphere. She explained, “Most of the time, I just study. But, sometimes I reserve the conference rooms in the back for group meetings and study marathons. It’s really convenient.” Like everything else, the rooms are free and temporary walls can adapt from one large room to two smaller ones.

The café also uses this space to hold group sessions. Here, groups meet regularly to learn and support each other in reaching their individual financial goals, such as debt reduction and combining finances. The store manager told me that attendees often become good friends. They tend to have a lot in common, so they continue to hang out after the classes meet.

The café seems to believe that support is a foundation of success. They embrace the sharing economy and have found a way to create self-sustaining communities that continue outside of the café.

What’s the catch?

By now, you may be wondering how this is all possible. How can everything — except the coffee — be free? Well, Next Door Café is a marketing and research experiment funded by State Farm. In exchange for the space, baristas, and financial coaches, they collect endless insights about future customer needs and have an environment to float concepts and ideas.

While there is only one location and no public plans for expansion, the financial industry should take notice. For mainstream financial education and support, this model is working. Next Door Café is speaking to Millennials in a way that resonates with their values and appeals to their norms. They have made financial wellness approachable, holistic, and community-driven. I suspect that more companies will replicate the fundamentals of this model as a way to develop deeper relationships with their customers.

What do you think about the Next Door Cafe? If you’re in the Chicago area, have you visited yet?

{ 0 comments }

The idea of prepaid card being used as financial tools can be a cringe-worthy concept, particularly to savvy financial experts. For most Americans, prepaid cards aren’t really part of the tool set. The benefits of a credit card are much stronger than prepaid cards, and with most people qualifying for credit cards, even through the recession, prepaid cards don’t get a lot of respect. The drawback of prepaid cards are the varieties of fees. For consumers without choices due to bad credit or no credit, prepaid card issuers really have an advantages. These fees can be exorbitant like those for the RushCards.

There are much better deal available. One such card with reasonable fees — keeping in mind it is still more expensive to own a prepaid card than most credit cards – is the Mango™ MasterCard® Prepaid Card. In addition to the low fees, this card provides a 6% APY on money deposit. In today’s interest rate environment, where banks are offering 1% APY or much less on savings, this is a compelling option. The money you deposit with the prepaid card is FDIC insured, too, so your money is never at risk.

Mango<sup/>TM MasterCard® Prepaid Card” width=”240″ height=”159″ border=”0″ /></a>With an interest rate offer this good, as you’d imagine, there is a catch. The six percent interest rate provided to all <a rel=Mango™ MasterCard® Prepaid Card members has the following stipulations:

  • Customers must open a Mango Money bank account, which can easily be done online.
  • Card holders must initiate a direct deposit, also easily completed online. Without direct deposit, the interest rate would be 2%.
  • The 6% only applies to the first $5,000 deposited, with anything above $5,000 receiving a 0.10% APY.

Consumers expecting to transfer hundreds of thousands of dollars to their new Mango online savings account will be disappointed to see that only the first $5,000 will qualify for the six percent interest rate, but this prepaid card is designed for people in need of a payment method, struggling to make ends meet. The Mango™ MasterCard® Prepaid Card is able to provide such a high interest rate because it does very little marketing and print advertisements, passing the money on to the consumer with this offer.

While the above deal sounds quite good, particularly for people who don’t have other options available, but there are drawbacks. The Mango™ MasterCard® Prepaid Card charges just a few general fees, the largest of which can be easily avoided. Card holders can expect to pay these fees:

  • $5 monthly fee. This fee can be waived if the card holder loads at least $500 onto the card during the month.
  • $2 ATM withdrawal fee. Keep in mind that this fee would be in addition to any fee the ATM charges.
  • $0.50 ATM balance inquiry fee. There is no fee to check your balance online, however.
  • $4.95 cash load fee using Green Dot. Direct deposit and the first six electronic transfers each month are free of charge.
  • $10 account closing fee.

There are no application fees, sign-up fees, one-time account opening fees, or any other tactics prepaid cards often take advantage of consumers. For a limited time, when a new account holder makes two direct deposits, the issuer will add a $20 credit to the Mango Money savings account.

The Mango™ MasterCard® Prepaid Card does not report to the major credit bureaus and is not designed to be used by anyone who has good to excellent credit. Prepaid credit cards help consumers with poor credit in need of a safe and secure way to pay for everyday purchases as an alternative to using cash. This one just happens to have a head-turning interest rate, and it’s quite possible for card holders to avoid paying fees. Prepaid cards prevent holders from spending money they don’t have, but so does a cash-only approach. If it weren’t for the 6% APY interest rate, I might not even mention this card.

Saving money has become quite depressing these days. Almost every day, I need to update the best online savings account page by reducing the interest rates. After another flurry of rate decreases this week, the best rate available today is a sad 1%. Just three years ago, banks were attracting customers with rates of 3% or 4%. With current Federal Reserve policy, there’s no telling just how low deposit interest rates will go.

If you find yourself in need of a prepaid card or are looking to maximize the return of $5,000 in a safe and secure way, consider applying for the Mango™ MasterCard® Prepaid Card and earn a return of up to $300 a year on your money.

{ 13 comments }

The offer you are interested in has expired. Read our review of the best airline miles credit cards
.

{ 3 comments }

The offer you are interested in has expired. Read our review of the Citi® Platinum Select / AAdvantage Visa Signature Card.

{ 4 comments }

Last Chance: 25,000 American Express Points Sign-Up Bonus

by Luke Landes

The offer you are interested in has expired. Read our review of the American Express Premier Rewards Gold Card.

5 comments Read the full article →

Review: I Will Teach You to Be Rich by Ramit Sethi

by Luke Landes

I’ve been in touch with Ramit Sethi since not long after he began writing on his blog, I Will Teach You to Be Rich, almost five years ago. It is no surprise to me that Ramit, after enhancing his writing with years of practice on his rapidly-growing website, has published I Will Teach You to […]

17 comments Read the full article →

Ask Any Question and Ramit and I Will Discuss the Answers

by Luke Landes

Ramit Sethi from I Will Teach You to Be Rich is currently putting the final touches on his first published book, aptly named, I Will Teach You to Be Rich. He’s probably tweaking the final paragraphs as I write this. Ramit’s new book, which will be released on March 23, includes a few pages I’ve […]

20 comments Read the full article →

Get a $25 Bonus With the Amex True Earnings Card

by Luke Landes

The offer you are interested in has expired. Read our review of the True Earnings Card From Costco and American Express.

28 comments Read the full article →

Why I Have No Money

by Smithee

Near the end of my college career there was a sort of “Psychic Fair” on campus. As I recall, nobody charged us anything, so I got a reading from a Numerologist. She basically had me fill out a form with some information about myself. I remember “full name” and “birthdate”, for example. Multiple calculations later, […]

5 comments Read the full article →

Back From D.C. (and Blog Roundup)

by Luke Landes

I took a vacation from work this past week to coincide with my girlfriend’s winter break (she’s a teacher). We traveled to Washington, D.C. to see the sights and meet up with some friends. Thanks to the snow, the exhibits were not very crowded. Unfortunately, the weather had a negative effect on our health, and […]

10 comments Read the full article →
Page 1 of 1112345···Last »