Tag: financial literacy

How following prediction markets can make you a better investor

You are probably familiar with stocks, crypto, and sports betting, but may be unaware of prediction markets. These markets sit at the intersection of finance, probability, and real-world events, and they’re gaining attention as tools for forecasting everything from economic trends to consumer behavior.

Even if you never trade on a prediction market platform, understanding how these markets work can help you think more clearly about risk, incentives, and decision-making—skills that directly impact you as a money manager and investor.

I’ve been closely following the evolution of prediction market platforms. Although I do not transact in these markets, I analyze information from these platforms to improve my understanding of markets for personal financial planning.

To help you better understand prediction market analysis and platforms, I’ve written two posts. This post introduces you to prediction markets and how they can be used to help you become a better investor. The second post provides an overview of how these platforms function and their differences.

Please read on if you are interested in learning more about emerging prediction markets and platforms.

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The high cost of tapping your retirement savings early

The 2025 Employee Financial Wellness Report by Payroll Integrations found that a significant portion of the U.S. workforce is experiencing financial strain, which is impacting their retirement savings. The report reveals that 38% of employees have withdrawn money from their retirement accounts, with this trend being particularly prevalent among Gen Z workers, of whom nearly half (46%) have done so. The withdrawals are primarily driven by urgent needs like unexpected emergencies and debt repayment, not discretionary spending.

This pattern is expected to continue, as one in three employees anticipates having to withdraw funds again in the next year to cover emergencies or daily expenses, indicating widespread financial fragility and a lack of sufficient emergency savings.

When bills pile up or emergencies strike, dipping into a 401(k) or IRA can feel like the easiest fix. But the real price of tapping retirement savings early is much higher than most workers realize. Between penalties, taxes, and lost compounding growth, a short-term withdrawal can snowball into a major setback for your financial future.

Here are five reasons why you may want to reconsider taking an early withdrawal from your retirement account:

Continue reading “The high cost of tapping your retirement savings early”

How to protect your credit reports

In my prior post on protecting yourself from cybercriminals, I shared steps you can take to stay ahead of fraudsters trying to use your personal data against you and steal your identity. While all of those actions should be used to protect yourself, there is one action I recommend you consider implementing now:

Create a fraud alert or freeze access to your credit reports.

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How to minimize fees to maximize your big money returns

As referenced in my new book Making Big Money Decisions and recent blog posts, transaction fees can take a big bite out of your returns. The good news is that the costs for holding investment funds and selling a house in the USA continue to decline, allowing you to keep more of your money. Since these investments are usually large, even small differences in the fees you pay can add up to significant amounts of money over time.

If you are interested in finding out more about these transactions costs and tips for ensuring you are paying the lowest fees, then please read on.

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16 online resources for making big money decisions

Statistics on the state of personal finance show that many adults, particularly young adults, struggle with financial literacy and are concerned about their ability to fund life goals like buying a house and retiring comfortably.

One way to overcome these concerns is by making the unknown known through financial planning and money management. Like many things in life, getting started is probably the hardest part. Time is an essential element in both life and personal finance, so use it to your advantage by starting your planning as early as possible.

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You don’t need a budget to manage spending

60% of people don’t use budgets to manage spending, according to the 2017 Consumer Financial Literacy Survey from The National Foundation for Credit Counseling. While that number may be surprising, what is more shocking is that this number has not changed much since the 2007 survey. For all the advances in technology, including spreadsheets and online budgeting software, people’s habits related to managing money and tracking spending have not really changed that much over the last decade.  Continue reading “You don’t need a budget to manage spending”

Don’t pay to manage your credit score

I was asked earlier this week what’s the best way to check a credit score? There are a few ways to get your credit score, but check to see what your credit card company offers first. Many credit card issuers now provide cardholders with their credit score as a free benefit.  The card issuer I use provides my FICO® score, score history, key factors affecting my score, and suggestions on how to improve my score.  Continue reading “Don’t pay to manage your credit score”

Have we declared our financial independence?

Financial literacy (a.k.a. FinLit) is the education and understanding of various financial areas, such as saving, spending, investing, insurance, budgeting, retirement and tax planning. The positive impacts of financial education on people are clear, as are the negative impacts to those that lack FinLit.

Continue reading “Have we declared our financial independence?”