Earlier this week, American Express published my second article for the company’s new community website, Currency. I used to think that philanthropy was an activity for the rich. Though anyone can donate a portion of income to charity regardless of their financial health, starting a foundation requires at least a million dollars. Some services offer similar benefits of a charitable foundation without the need for paying staff salaries or excessive administrative fees. Read about it here.
Also, on US News & World Report, I share 5 budgeting myths that prevent financial success.
Here are some more articles for your reading enjoyment.
Donna Freedman asks why physical education is mandatory in schools while personal finance education is not? Phys. ed. is required for a number of reasons:
- to develop psychomotor skills
- to encourage physical health, which is good for
- society as a whole
- building a strong national defense
It is in the country’s best interest to have a healthy and active populace. The same may not be true with financial responsibility. While saving money rather than spending recklessly may be a good plan for any individual person, it is sure to derail an economy on the larger scale. As we’ve seen with various personal economic stimuli over the past decade — in which the government sends its citizens checks or tax credits with the directive to spend, spend, spend — economists believe spending, even beyond your means, is how the economy expands.
While some may argue that saving money in a bank also expands the economy because banks lend out a multiple of every deposit they receive, that’s only true if banks approve loans and if the companies they lend to actually spend that money rather than using it to strengthen their balance sheet.
Furthermore, a full curriculum makes it difficult for schools to cover all the topics they should be covering without extending the school day or extending the school year. I’d like to see classes in personal finance management available as electives in middle school and high school, with some concepts of basic financial responsibility incorporated into other classes like home economics.
Lastly, Darwin’s Money takes a look at why there will be no cost of living adjustment for Social Security payments in 2011 and what this means for people relying on Social Security to pay their expenses. The CPI indicates cost of living has been steady and seniors have received bonuses recently, but real expenses may be increasing.
The Festival of Frugality included my recent article about the benefits of drawbacks of being an ambivalent person. For more articles about personal finance, check out the Yakezie list of personal finance blogs and pfblogs.org.
Updated February 6, 2012 and originally published October 17, 2010.