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Diane Nissen Friedman was interviewed for an article on the popular www.CreditCards.com website. Read: Credit cards and college students: How new law changes marketing, access.
How will the new Credit CARD act affect young adults?
Chachanna Simpson from Twentity.com sought advice from Diane Nissen Friedman in order to write Deciphering the Credit CARD act.
The Alexandrite Group LLC participated in a Teachers Training Teachers (T3) seminar held at Rutgers University by New Jersey Coalition for Financial Education (NJCFE). Over 130 educators, government and private business representatives shared their ideas on teaching financial literacy in the classroom.
Congratulations to The Alexandrite Group and Diane Nissen Friedman for winning fourth place with an interactive lesson plan called "How paper money circulates".
Letter to the Editor "A Perfect Time for Education" published in The Record.
March 6, 2009
Read about The Alexandrite Group LLC in The Ridgewood News -- Helping clients balance their budgets.
Financial literacy:
as basic as ABCs
I agree completely with the push to teach schoolchildren financial literacy ("Back to the financial basics," Page L-2, Feb. 8).
The current financial breakdown that affects each of us stems largely from the absence of financial literacy. We have been a nation of spenders with many years of negative personal savings. According to the Commerce Department, the personal savings rate was 2.9 percent in the fourth quarter of 2008 – far below a suggested rate of 10 percent.
Everyone, with little exception, will manage money on some level. This includes even young children who receive an allowance, gift, or are simply given money upon request. Balancing a checkbook, selecting a credit card or saving for some future purchase (rather than charging it) are skills that can be learned and must be taught; they should not be left to trial and error.
According to one survey, only about half of all parents teach their children how to budget, while only 29 percent teach their teens about the mechanics of credit card fees and interest. More than half of all college freshmen have a credit card in their name and average more than $1,500 in debt. High school students receive solicitations from credit card companies even though they cannot have cards of their own until they are 18.
I have asked parents from various backgrounds about their children's understanding of finances. Virtually all of them expressed interest in sending their children (in some cases, adult children) to any class that I would offer. Indeed, they frequently expressed interest in going themselves. I opened The Alexandrite Group LLC last year to satisfy this demand and teach how to manage money so clients can achieve personal goals.
We must push our schools to teach this same financial literacy.
Diane Nissen Friedman
Ridgewood, Feb. 11
Top of the pageI agree completely with Patricia Alex’s article entitled “Back to the financial basics”.
The current financial breakdown which affects each of us in myriad ways stem largely from the absence of financial literacy. We have been a nation of spenders with many years of negative personal savings. According to the Commerce department, the personal savings rate was 2.9 percent in the fourth quarter of 2008. This is the highest it has been since 2002. While it increased from negative savings during 2005 and 2006 – it is still far below a suggested rate of 10%.
Our schools do not emphasize teaching life skills such as managing one’s own money. Everyone, with little exception, will manage money on some level. This includes even young children who receive an allowance, gift, or are simply given money upon request.
Balancing a check book, selecting a credit card, or saving for some future purchase (rather than charging it in a knee-jerk manner) are all skills that can be learned and must be taught, and should not be left up to chance or trial and error. According to the Charles Schwab Parents & Money 2008 survey conducted by Kelton Research, only about 50% of all parents teach their children how to budget, while only 29% teach their teens about the mechanics of credit card fees and interest. More than one half of all college freshmen have a credit card in their name and on average, are over $1500 in debt. High school students receive solicitations from credit card companies even though they can not have a card on their own until they are 18 years old.
I have asked parents from various backgrounds about their children’s understanding of finances. During virtually all these conversations, the parents expressed an interest in sending their children (in some cases, adult children) to any class that I would offer. Indeed, they frequently expressed interest in going themselves. Based upon this need, my personal interest in money management, and my strong financial background and education, I opened The Alexandrite Group LLC last year. Our tag line “Empowering You Through Financial Education” states our mission. We aim for clients to understand how to manage their money so they can achieve personal goals. Teaching good spending habits early in people’s financial lives is the key to managing money effectively on an ongoing basis. We address ways to change behaviors and attitudes about money management.
We must push our schools to include financial literacy in the curriculum. As the Parents & Money 2008 survey found, 57% of all parents wished they had learned more about money management when they were teens.
Diane Nissen Friedman, CMA (Certified Management Accountant)
The Alexandrite Group LLC
115 Pine Street, Suite 7
Ridgewood NJ 07450
dwf@alexandritegroup.com
www.AlexandriteGroup.com
February 11, 2009
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Perfect time for financial education
I was surprised to see the responses to The Record's survey on the economy ("Down but not out," Page a-1, March 1).
Daily news highlights a worsening economy. In contrast, the survey paints a positive picture.
However, I was taken by the fact that 23 percent of the respondents have not made significant changes in their spending patterns, and that the size of this category rose to 34 percent of those earning more than $200,000.
Although the current economic picture is not good, it is a wonderful time for children and adults to learn money management skills. Such skills are required in both plentiful and lean times. Now, is the time for adults to learn to plan ahead and not fall into the instant gratification trap. Families should budget their money and make informed decisions as to how they spend their limited resources.
The first step in money management is to learn where your money is being spent. Then make conscious decisions on where your spending may need to be adjusted based upon your changing situation. Do not keep your children in the dark; use age-appropriate examples and make them part of household decisions. Set an example that will enable them to mature with a healthy attitude toward money management.
Managing money effectively does not mean not to spend it. It means you are financially aware that you spending $660 annually on your daily coffee. That same $660 could be spent on two plane tickets to your dream vacation. Think about how this simple example can show your children the power of a little saving can pay for something bigger.
Diane Nissen Friedman
Ridgewood, March 8
The writer, a certified management accountant, is principal of The Alexandrite Group LLC, a financial education services firm, in Ridgewood.
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