Boston, Spring of 2012

Waynflete School’s team has made it to the finals of the Boston Federal Reserve Cup Challenge for Economics and Personal Finance, and we wouldn’t have gotten that far without Alysa, who was the team’s default personal finance expert, successfully fielding questions on credit score, insurance, banking, and more.

And…we won!

Fast forward to 2025, and here I am once again turning to Alysa – this time for professional help on a critical topic: cyber hygiene (her phrase, not mine, and I love it). Who knew that she’d continue to do great things? I did!

Alysa, tell me about your work at Avalara.

During the pandemic, I was hired as an Operations Analyst by DAVO Sales Tax, which has since been acquired by Avalara Inc. Avalara is a B2B tax compliance company, serving all sizes and types of businesses in the business-tax space. I am just about to start my fifth year with this organization and am currently an Analyst of Global Client Payments (I work on the Treasury team). I manage company and customer funding and payments, bank reconciliations, customer refunds, and merchant account balances. I also audit sales tax filings and bank transactions for fraudulent or inaccurate payments and work closely with our tech engineering team to make product improvements to our funding processes.

It seems that our financial security is being compromised daily through cyberattacks and scams. Is there more danger more often, or does it just seem that way because it is so highly reported?

There is no nice way to say this, so I will give it to you straight. Yes, the danger is growing and growing at an exponential rate. Cyber-attacks, especially financially motivated ones, are increasing in volume, sophistication, and impact.

Everything is digital now. We are quickly moving out of the analog world where we pay with cash and transact in person. I can’t think of a single bill or purchase that requires you to pay with physical money or a check. Everything from mortgage payments to movie tickets is paid online. This rapid increase in digital transactions creates more opportunities for cyber attackers.

Then we must consider advances in technology, which benefit us as consumers, but also benefits the scammers.

Sure, there is some cognitive bias at play. When the media and headlines show a constant stream of cyberattacks and scams, it is to be expected that this adds to our perception of a growing danger.

What are the most common threats in 2025?

The big three attacks that everybody should know about are phishing, ransomware, and credential stuffing.

Phishing is the most experienced type of attack on a day-to-day basis. Phishing, and its many subcategories such as targeting phishing, whaling, smishing, vishing, business email compromise, etc., all fall under the umbrella of social engineering. In this type of attack, the scammer impersonates a trusted party to trick victims into revealing sensitive information such as login credentials, credit card numbers, or other personal data. Usually, this involves playing on the victim’s emotions by creating a false sense of urgency, which causes them to overlook their logic and better judgment and then take action by divulging personal information. This can be done via email, text, call, social media messaging, QR codes, or malicious websites.

A perfect and recent example of this in Maine and surrounding states was the EZ Pass toll scam text. A text was sent to thousands of people saying that they had unpaid tolls and that unless they took immediate action an additional fee would be charged. Of course, this was not true. The attacker played on people’s desire to be law abiding citizens, and a fear of incurring additional charges to get the information they wanted.  

Phishing is often accompanied by ransomware—malicious software that encrypts a victim’s files or systems, demanding a ransom payment to unlock them. Ransomware is generally delivered via a phishing email, manipulating the victim’s emotions to click a link or download the software. While ransomware attacks are more common for businesses, individuals can also be impacted.

Credential stuffing is a little different than phishing and ransomware in that it does not require any action to be taken by the victim. In this type of attack, cyber criminals obtain login credentials from past data breaches, which are easily found on the dark web, and then use them to attempt to gain access to multiple accounts. It is an automated process, requiring little manual work for the fraudster and allowing them to target a wide audience of victims.

How does, or will, AI factor into this world, for the attackers and for the defending public?

I alluded to this earlier, but AI is the next frontier in the technology space and will continue to create areas of increased risk of, and improved protection from, cyberattacks. 

Hackers are now using AI to make their attacks smarter, faster, and harder to spot. They can create super convincing phishing emails or even fake a voice or video call from a trusted party, including family and friends, to trick someone into handing over sensitive info. AI tools also help them scan huge networks to identify weak spots much more efficiently than a human ever could. With AI, even less experienced attackers can launch advanced scams. That’s what makes it so dangerous, the attacks are getting more believable, more targeted, and a lot more frequent.

Luckily, AI is doing a lot of good on the defensive side, too.  It’s like having a super smart security guard that never sleeps. It can spot unusual behavior quickly; like if someone logs into your account from a strange location or suddenly downloads a ton of files. It also helps filter out phishing emails, detect malware before it spreads, and even predict where attacks might happen next by analyzing patterns and past incidents. And AI can respond in real-time, isolating infected devices, blocking suspicious traffic, or locking down accounts automatically before things get worse.

So, while attackers are using AI, so are the defenders. At this point, it is a matter of who uses it better, sooner.

I recently heard you use the phrase, “practice good cyber hygiene”. I love it! What are some of the specifics to that end?
I love it, too! Let’s talk cyber hygiene and how we can improve our own.

Cyber hygiene is the digital equivalent to personal hygiene. It’s the habitual practices and behaviors that we follow to maintain health, prevent infections, and minimize vulnerabilities. The same way we wash our hands to decrease the risk of spreading germs or contracting an illness, there are things we can do in the digital space to decrease our risk or impact of cyberattacks. Cyber hygiene can be boiled down to good password practices, smart cyber use, and responsibly managing devices.

• Check out these password tips from Alysa

Social media platforms are a cesspool for cybercrime. They are an open door to your personal information, and the scammers don’t even have to try hard. People proudly broadcast their personal lives and information. It is so imperative that we are highly selective with what we relay to the world. While reusing passwords is more prevalent with older generations that only needed one password to survive, the younger generation lives almost entirely online and opens themselves up to a more targeted type of attack.

Presenting yourself on social media is the same as presenting yourself to the entire world, scammers included. What you do, where you go, who you talk to, what you like… It can all be used against you. Remember a few minutes ago when I said that phishing, the most common form of attack, is a type of social engineering? This is where the scammers get the ammo.

• For more advice on social media safety, head to Alysa’s Cyber Hygiene Tips

Lastly, responsible physical device use. Boring, but classic and effective.

• Lock your computer when you aren’t using it. Lock your phone when you aren’t using it. Don’t leave your things in public places. Know where your technology is at all times.

I want to emphasize that cyber hygiene is not a one-and-done thing. It is an ongoing practice. Just like washing your face only makes it clean until you sweat or get dirty, cyber hygiene is only as good as its maintenance. The more we live online, the more we need to treat digital decisions as the real-life decisions that they are.

Alysa is my former student and advisee from Waynflete (Class of 2012). I was lucky enough to have taught Alysa several times, including Personal Finance. She attended Southern Maine Community College and earned an associate’s degree in hospitality management and business administration. That is where she discovered a love of accounting. After SMCC, Alysa transferred to Ohio Wesleyan University, where she earned a BA in Accounting with a Business minor. She works from home with her two dogs and in her free time rides her horse, reads, and, of course, investigates recent cyberattacks.

There are many definitions of interest, but this one has been my go-to for a long time. Short. Simple. Strong.

in · ter · est

1. the cost of money

The cost of money. Let that sink in. It means that there is a cost associated with money’s existence; not just for borrowing or lending. There is also a cost to holding on to money. You know, the old shoe box, mason jar, or mattress-style storage facility. What’s the cost with the jars or boxes? Opportunity cost – the money can’t earn interest; it can’t work for you.

Our bank accounts are in play here as well. If money is in the bank, we aren’t using it, and that is our cost. We make up for that cost by asking the banks to pay us interest.

But most of the time, we think of the cost of money in the form of paying interest–it’s a real cost and a major factor when we borrow.

However, although interest rates are highly marketed as the starting point for borrowing decisions, they shouldn’t be. The borrowing decisions should always start with how much is being borrowed, why it’s being borrowed, what it’s going to buy, and whether we can afford the entire amount rather than just a monthly payment with “low low LOW” interest.

#1 on the list

Car loans. There is no better example of how debt is marketed through interest rates than the car loan. When I see a $40,000 vehicle sold as “only $550/month for 72 months at our LOW 2.9% APR” it triggers a sort of personal finance trauma, reminding me of when I put myself into the car debt cycle, all the while convincing myself that I got a “deal” based in the interest rate.

A quick analysis based on 2024 data:

Average new car price $48,000
Average interest rate 7%
Average term 68 months
Average down payment + trade-in $12,000
Monthly payment $645
Total interest paid $7,700  (11% of price of car)

Now apply the “limited offer” of 2.9% APR (only the best credit scores get this, by the way):

Monthly payment $574
Total interest paid $3,100 (6% of price of car)

Did interest rate matter? Yes, to the tune of $4,600 over 68 months or about, coincidentally, $68/month.

The bigger personal finance issue here is that the interest was based on a loan of $36,000 (after trade and down payment) for a $48,000 ride.

What’s more likely, that we find ourselves in a pinch because of $68/month in interest or because of a $48,000 purchase (which is losing value by the mile)? And don’t forget all the other costs of a $48,000 car; higher property tax, MUCH higher insurance costs, higher sales tax.

Again, interest rates must be considered, but not as much as the amount borrowed. Transportation is important, cars are the reality for most of us, and prices are staggering. But there are ways to mitigate those costs – the overall cost of a car and its impact on our financial well-being.

The bottom line: minimize borrowing for a car and interest rate will be an afterthought.

Plastic problems

When we find ourselves concerned about the interest rate on our credit card, we have a bigger issue to address – credit card debt period. Pay off the debt and only use cards for budgeted expenses, and the interest rate won’t matter. Furthermore, signing up for a new, lower-interest card to transfer a balance is often a symptom rather than a cure. This is not ‘never do that’ advice, but a caution that these card offers exist because, statistically speaking, most people will end up using the new card and, ultimately, find themselves further in debt instead of improving their financial situation.

The best plans for managing credit card debt include 1) not using the card 2) using a budget with a payoff plan and/or 3) contact a free credit counseling service if the debt is overwhelming your finances.

But what about student loans?

From a numbers and interest rate perspective, I could just copy and paste from the first section on car loans. The math is what it is and, once again, interest rates don’t matter in comparison to the amount borrowed. The big difference here is that an education is not a depreciating asset, so the calculus on how much to spend/borrow includes other (and not always quantifiable) variables.

The bottom line is the same – minimizing borrowing comes before worrying about rates.

There is a lot to consider – FAME is here to help. Check out this link and the resources on the side menu.

Date the rate, marry the home

Similar theme for houses, but the stakes are higher. Yes, it’s easy to see that a 1% rate difference on a 30-year loan could mean $100,000 in interest, but since the rates are determined by credit score and market conditions, it’s largely out of our hands when we sit down to sign the papers. What is not out of our control is how much down payment we’ve saved, how much we borrow, and ultimately, whether we are choosing a home we can truly afford.

This is an excellent tool from Enrich on determining how much home you can afford, considering income, location, down payment, and other debts. Enrich: Home Affordability Analyzer

It took me a while to get here but it was worth the effort

For me, it took many years to reestablish a financial foundation, and one of the key pieces of the puzzle was eliminating non-house debt and paying cash for just about everything – including cars.

So…

• I have no idea what rate my credit card charges because I haven’t paid a dime of interest in a couple of decades. I use it for budgeted expenses and pay in full every month. Emergencies are paid for from my emergency fund. The credit card provides convenience and reduces exposure to theft/fraud compared to a debit card.
• I paid cash for a used car.
• I don’t love the interest rate on my home, but the house is affordable based on our down payment and how the overall mix of mortgage, home value, income, and budget is in my favor. And refinancing at a lower rate is often worthwhile for an appreciating asset like real estate.

Finally, if debts are paid, then the only interest you need to think about is the type you are earning. What’s the cost of your money?

“The first principle is that you must not fool yourself — and you are the easiest person to fool.” – Richard Feynman, Nobel laureate and physicist, from his speech to the Caltech Class of 1974.

*****

Wow, all I had was, “Graduates, as you head out into the world, remember to be good to one another… And remember to spend less than you make.”

I don’t think Dr. Feynman was referring to personal finances, but I could argue that right there, he offered some of the best money advice you can find. I say that because so much of “adulting with money” comes down to making sensible decisions, yet it’s too easy to get off that track and fool ourselves with “I need that new car, a higher credit card limit, a sports betting account, the XYZ streaming service,” etc.

What should be on the financial radar for new college grads? It can’t all be done in a day, but it all can be done. This isn’t really life advice – it’s personal finance advice – but there is probably significant overlap.

First, get to work. Whether you are diving right into the “grown-up” job related to your education or just trying to earn while you look, it’s critical to get the earnings flowing. All work experience is valuable, even some of those awful jobs we hold as we move down the career path. I’ve had a lot of jobs. Maybe I even have a spreadsheet listing them to share with my son someday. Maybe it’s a couple of pages long. Learning what you don’t like or don’t want to do has value. I am now doing the best work of my life, and even the worst work experiences from my resume have contributed to the skills I use today.

Take advantage of time. I put this high on the list for a reason. There are a lot of reasons but let’s focus on opportunity cost or the cost of decisions. When it comes to retirement savings and the cost of missed opportunities, I know what I’m talking about. A 25-year-old let’s say YOU, who saves $200/month until age 65 will have accumulated approximately $525,000 (based on 7% returns and average inflation). Someone else, let’s say ME, who waits until age 40 will have to put away $700/month to reach that same amount of savings by age 65. There is no better formula for reaching your financial goals than time + steady habits. Check out Vanguard’s take on this topic and/or try out this calculator and run some numbers for yourself.  

Learn to budget. No matter how much you are making, learn now how to plan and account for your spending. Many banks offer budgeting features, there are plenty of free apps and websites, and, of course, there is the old-fashioned but most effective spreadsheet.

Make saving a habit and build an emergency fund. If you are collecting a regular paycheck, consider automating your savings and build up a $1,000 emergency fund as quickly as possible (before investing, before the long ski trip, before anything considered a “want”).

Manage your housing costs. Housing is and will be your largest expense, so it’s best to get used to making smart decisions. You want your own place, but maybe your future self says, “Hey, do the roommate thing for a few years, it will save you thousands.”  

Take charge of your student loans. You signed for the loan, and now it’s time to pay it back as agreed. Pay what you should but do it in the most sensible way for your income. Visit StudentAid.gov, make sure you are on a plan, stay in touch with the loan servicer, and understand all your rights and responsibilities.

Understand health insurance. This is one of the most expensive and difficult to manage aspects of Americans’ financial lives. If you are fortunate enough to be on your parents’ plan, you can stay there until you turn 26. Beyond that, health insurance is a major consideration when looking at potential jobs and has to be accounted for every step of the way.

Learn about taxes. The good news is that there are plenty of easy-to-use, accurate, and reasonable software services out there. The bad news is that as you move into earning a full-time income, taxes will eat more of your pay and the rules will get more complicated. Enrich offers an excellent introduction to dealing with income taxes.

Watch out for car loans and credit cards and payday lenders, and rent-to-own… And, ugh, there are a lot of places to misspend your hard-earned dollars. Buying too much car is one of the most likely areas where we stumble, and that impacts our ability to save, and that affects our choices down the road, and so on and so on. Drive used cars, borrow as little as possible, and always save part of your income for car expenses and the next car.

Protect your identity and your money. In other words, be careful with your financial life and technology, and be sure to be insured! Car insurance, renter’s insurance, health insurance – all those pieces should be in place as you begin to save and build wealth. Ask a friend or family member for a trusted agent, get some advice, and evaluate your coverage every year. For protection from financial scams, stay current with help from sources like the Federal Deposit Insurance Corporation (FDIC).

*****

Finally, listen to your future self. I could go on all day. So, when I say finally, I mean for now.

Yes, you hear that voice. It’s firm, sometimes mean and annoying, but always kind and full of good intentions.

“Are you saving for retirement?”

“A new car? Really?”

“A few sacrifices now will be worth it later.”

“Have fun, but plan for it and understand what it costs.”

“Spend less than you make, or I’ll come through time and…”

About a year ago we released the first post for this blog, and I’m still here, 15 posts older and more eager than ever to keep the conversation going. In those 15 posts, I touched on economics, the monthly payment mindset, budgeting, financial aid for education, personal finance terminology, insurance, reflection on my own… Uh… Experiences (mistake$), and more.

I’ll call this an accomplishment, but I’ll also note that during the past year the list of topics I still need to write about has grown. Yes, there is much to discuss, much to share, much to learn.

Financial Literacy Month

Despite the fact that it is snowing as I’m blogging, April is back, and in FAME’s world that means, among other things, Financial Literacy Month. It’s a time when organizations, educators, and financial professionals everywhere in the US are promoting the importance of financial capability. Here’s a sample of what’s going on right here in Maine.

Events, initiatives, and resources:

• Educator’s conference: Maine Jump$tart’s 16^th Annual Fostering Financial Education in Maine Schools  Conference will be held May 8-9 in Portland. This year’s event is unique as the May 8^th portion is being brought to us by VISA and the Council for Economic Education, who have put together an incredible day of training and fun including meals and a sunset cruise in Casco Bay. There is still time to register!
• For kids: FAME’s first-ever Design Your Own Dream Money contest is underway. This is for all Maine students in grades 1-6, and submissions will be accepted until April 30.
• Could it be? Personal finance becoming a graduation requirement in Maine? Well, maybe not yet, but efforts are underway during this legislative session to once again bring the conversation forward. The first hearing took place on April 1, 2025; read more about the bill here.
• A FREE summer course for high school students: FAME’s 2025 Personal Finance Summer Institute is happening July 21-25 in Portland, and registration is open.
• More from FAME: Resources to help you celebrate and promote Financial Literacy Month

It’s not just snowflakes falling

I’m not writing in a vacuum; therefore, I can’t go on without acknowledging the stock market-related pain that has been April, so far.

It’s been hard to watch, and depending on where you are on a scale of 20-something to retired, you might not want to watch, at least in the short-run. From an educational perspective, it’s critical to understand the history of stock market movements and the basis for its relative long-term success.

The stock market is ultimately based on the performance of an incredibly wide range of companies that produce and sell everything we consume. Our economy runs like no other, we consume like no others, and as a result, those companies make (and distribute back to stockholders) steady and substantial profits. This fact is, it’s not going to change based on anything that has happened or is likely to happen to our economy in 2025.

Yes, we are in or close to what is known as “correction” territory. However, “Corrections in the stock market are pretty standard fare. There have been 21 declines of 10% or more in the S&P 500 since 1980, with an average intra-year drawdown of 14%,” according to Baird Private Wealth Management. (cnbc.com)

If you are using your investments now or expect to be soon, you might need to consult a professional before taking action. But for most investors most of the time, don’t just do something, stand there! Warren Buffet knows a little about stocks and has been known to offer on-the-money advice. One of his favorite lines comes from a 19th-century poem by Rudyard Kipling; “If you can keep your head when all about you are losing theirs… If you can wait and not be tired by waiting… If you can think — and not make thoughts your aim… If you can trust yourself when all men doubt you… Yours is the Earth and everything that’s in it.”

Back to Financial Literacy Month

Once again, money lists are everywhere, and I do like a good list. I’m referring to the personal finance type – things to do, think about, start, finish, check on, cut back, increase, and just about any other verb you can connect to managing money.

I’ve perused these for weeks, boiled it all down, and have come up with my own – a Top 14 money-related menu for Financial Literacy Month.

Why 14? Because I don’t think I’ve ever seen a Top 14 list. Or we can consider it inflation’s effect on Letterman.

Top 14 Personal Finance Items Checklist for Financial Literacy Month 2025 (in no particular order, although I will highlight my personal Top 3 for 2025)

1. Create/Update Budget
2. Build/Reinforce Emergency Fund
3. Payoff/Pay Down Short-Term Debt
4. Prioritize Retirement Plan
5. Insurance Check-up
6. Boost Automated Saving/Investing
7. Increase Education Savings
8. Check Your Credit Report
9. Work on Your Credit Score
10. Set Goals
11. Check Your Tax Withholdings
12. Develop Buyer’s Remorse – BEFORE Buying!
13. Internet/Technology & Financial Security Checkup
14. Talk with Children about Money

An interesting thing I’ve noticed – when you work on one of these, others are often affected, like dominoes falling in the right direction. For example, by checking on insurance, you might change your deductibles, save $120/year, and redirect that money into building an emergency fund or into boosting savings. By paying off debt you can increase your credit score, which has benefits ranging from lower mortgage interest to better car insurance rates. So even if you can only directly work on one…

And the list(s) go on and on… Like I said in that first post a year ago (yes, I say it a lot), our financial system is complicated, slippery, and difficult to navigate. It takes constant vigilance and learning to give order to all things money.  

So, think about what Financial Literacy Month means to you? Attack a piece from that list or from others’ lists and give your future self the gift of good money decisions today.

Economic conditions are increasingly volatile and stressful, and that is the perfect time to take a deep dive into our budget, look for leaks, cut where we can, and build our financial defenses.

——–

Okay, that’s $25/month saved by cutting one streaming service and changing another to the plan with ads. Then $2 more/month by paying my car and home insurance in full rather than monthly. Spent $100 on exercise equipment, but will be saving $40/month by cancelling that rarely used gym membership. That’s about $67/month, not much, but… Wait a minute, that comes out to over $800/year! If we sell a few things that are gathering dust, we can raise a couple hundred more…

——–

Sorry, you caught me taking the family spending plan out behind the woodshed. I review my budget regularly, but this time I did it with a bit more urgency and concentration because 1) we are trying to carve out funds to put toward the next family vacation, 2) food prices are moving again, and 3) that uneasy feeling about the economy is hard to ignore.

I’ve been known to yammer about the connections between personal finance and economics… Maybe even offering a few posts in this blog on the subject.

And it seems that econ is actively pounding on our collective doors, proclaiming its relevance and demanding to be heard. Yes, the phrase, “…in these uncertain economic times” has been beat to dust, overused and misused until it’s completely ignorable. But this time… Well, it’s hard to ignore the numbers, in writing, plastered on the wall.

Is a recession imminent? It seems likely, but I’ll also say that, at the beginning of 2024, most economists said we’d see a recession by the middle of last year, and that did not even come close to happening. So, right now, we don’t know.

What we do know is that we consumers are getting hit from all sides with rising prices, stock market slumps, and threats to the employment picture, both from the private and public sectors. Add it all up, and GDP is likely to take a hit this year, and sooner rather than later.

So, as I always say, “when economics makes you fidget, it’s time to tighten the budget.” Honestly, I just made that up, but it’s true!

Goldilock$ Budgeting

Other than the bottom line – spend less than you make – there is not really one approach to budgeting that fits everyone. Age, income, lifestyle, stage of life, and the reasons for reviewing/adjusting a budget are all a part of deciding how to get it just right.

Let’s start with the why. Defining the problem (or opportunity) leads to best steps to get the most out of our budget. This is not a comprehensive list, but it does cover several classic situations. It’s also possible that a combination of these is a match.

• Trying to make ends meet, must make cuts and shift priorities right away
• Need to build an emergency fund
• Want to begin saving/investing
• Want to increase or redirect savings/investing
• Not happy with where money is going, want to make trades

After identifying the reason for examining your spending plan, you can then take steps towards your goal(s).

There are always choices when it comes to trimming a budget. The question is whether we want to make those choices and will we change our behavior to match our goals?

Tips on squeezing a few bucks from that budget:

• Quick savings can often be found with streaming services. I recently told one provider that I was cancelling because it wasn’t worth $24/month. They said, “How about our $8/month plan? There are a few ads.” Deal. $16/month savings.
• Food: I’ve recently started grilling pineapple as an occasional meat substitute. Great taste and about half the price/pound of meat. What changes can you make?
• Gas: when tough choices must be made, cutting down on driving should be at the top of the list. Look into shorter drives, local tourism, more walking, etc.
• There is out-of-pocket risk by raising insurance deductibles, but if your emergency fund is in place, you can save hundreds/year with higher auto and home deductibles.
• Side gig$ & yard $ales: a friend recently told me about his four-hour/week job at a local gym. He originally did it to use the gym, but after the first month, he got a charge when he realized he made an extra $250 by using time that he probably would have spent watching TV.
• Stop a budget leak and immediately redirect the money into an automated savings or investment account – financial and psychological benefits abound.
• Connecting to my Goldilock$ budgeting comment above, this video by Ramit Sethi is interesting in that it looks at financial strategies by income level.

Finally, feel the power in small changes.

• Make five small changes that save you an average of $7 each. That is $35/month, which can also be expressed as $420/year.
• Sell a handful of items for $75.
• Find a side gig, at 10 hours per month. That’s about $1,800/year.
• Redirect that $2,000/year to what you want or what you need. 

Most of us cannot affect the economic wheels spinning around us. However, most of us can affect our own mini economy, and that in turn can make a not-so-mini difference.

“Kids these days.” – said by everyone who is not a kid, in every decade since the beginning of kids.

A funny thing has happened to me during the decades that I’ve been working on personal finance – both as a teacher and a learner – I’ve gotten older! And despite my youthful glow, I now know what curmudgeon means. Sigh. But over the years I have tried to push back against the notion that younger generations just don’t understand – anything – whether it’s clothing styles, language use, or money habits.

It turns out that folks of certain ages have been trying to explain the generation gap for a very long time.

“They [Young People] have exalted notions, because they have not been humbled by life or learned its necessary limitations; moreover, their hopeful disposition makes them think themselves equal to great things – and that means having exalted notions. They would always rather do noble deeds than useful ones: Their lives are regulated more by moral feeling than by reasoning – all their mistakes are in the direction of doing things excessively and vehemently. They overdo everything – they love too much, hate too much, and the same with everything else.”

Hinton, Kerouac, or Freud, you say? Nope, go back just a bit further.

Aristotle. Yes, 23 centuries ago Aristotle.

---

And examples of “Young People” doing amazing things, smart things, wise things, are all around us. This past fall I had the wonderful experience of teaching a personal finance course, Money Matters, at the Maine College of Art & Design (MECA&D), and along the way I got to work with one of these young stars, one who happens to be pursuing unicorn status as an artist and a personal finance expert.

I’d like to introduce Jaden Kyung-Moon Bauch, a current student at MECA&D and my TA for the Money Matters course this past semester. Jaden is 21 years old, will graduate from MECA&D in May with a Bachelor of Fine Arts in Painting with a Minor in Art and Entrepreneurship, has passed both the Securities Industry Essentials Exam and the Series 65 (Uniform Investment Adviser Law Exam), and has already learned as much about personal finance as almost anyone I know.

What was the moment or turning point that got you interested in personal finance?

In my sophomore year at MECA&D, I had to get a root canal, and I didn’t have dental insurance. The procedure cost over $4,000, and I simply didn’t have that kind of money. I remember when my checking account balance was negative $500. At the same time, my student loan balance kept climbing higher and higher, and I couldn’t see a financially stable future for myself after graduation. I felt like choosing a creative career meant I was destined to have less financial success than others. But I decided I wasn’t going to accept that. That’s when I started self-studying personal finance, and I realized that financial literacy wasn’t just a tool for managing money—it was a tool for regaining my confidence and taking control of my future. That realization led me to want to help others, especially artists, understand and achieve their own financial goals.

How has your increased financial education affected your college experience?

Without a doubt, increasing my financial education has significantly improved my college experience. Not only did I gain a passion and a mission, but having greater financial literacy ultimately allowed me to spend less money, make more money, and do more with it.

I also think people—especially those my age—underestimate how much financial stress weighs on their subconscious. Even if you’re not actively thinking about money, it still takes up space in your brain. But when you take control of your finances, gain confidence in your financial situation, and understand how money supports your life, a huge weight lifts off your shoulders—one you may not have even realized was there.

What are some financial challenges unique to working artists?

The biggest hurdle for artists isn’t just financial logistics such as accounting and retirement—it’s overcoming the starving artist narrative.

When you tell someone you want to be an artist, their first thought usually isn’t that you’ll be financially successful—they might even try to talk you out of it. Somewhere along the way, choosing a career in art became synonymous with choosing financial insecurity.

This mindset is incredibly discouraging. If all you ever hear is that you’re going to struggle or fail, it becomes that much harder to succeed. The starving artist narrative actively holds creative people back—not just from pursuing their financial goals, but sometimes from pursuing a creative career altogether. All too often, the stories that get amplified are those of artists who only found success after their death, artists who ended up homeless, or art school graduates who stopped making art entirely a decade later. 

Have you had the chance at MECA&D to pass on some of what you’ve learned?

Yes! I’ve had many opportunities to do so. One example was, of course, in Money Matters, where I was able to cover certain classes and contribute support in areas where I had a specialized knowledge base. I also had the opportunity to speak to the Fine Art seniors— those in sculpture, painting, photography, and printmaking— focusing on budgeting, credit, and investing.

On another occasion, I gave a lecture to the entire freshman class about personal finance for artists. Most recently, my senior thesis focuses on equipping artists with the financial tools they need to thrive. As part of my thesis, I offer free financial coaching to artists and creative professionals, using those coaching sessions as inspiration for my paintings.

I also operate a resource on Instagram called The Financial Palette, which focuses on bite-sized finance and business tips for young creatives. My goal this year is to elevate this to the next level and expand beyond Instagram.

While working with you last semester, I noticed that your views on money and investing are “old school”. I think that’s a good thing. How did someone from your generation connect with those values?

It’s probably natural to develop those kinds of values when most of the finance books I’m reading are written by people four times my age—haha. I suppose you’re right, some of my beliefs are a bit old-school. I tend to favor simple strategies like passive investing and the three-fund portfolio. I also try to avoid finance discussions on social media unless they’re coming from qualified financial professionals because there’s a lot of misinformation out there, particularly around investing. So many people are just trying to sell day trading courses.

When it comes to investing and personal finance, you should stay with the times, but I don’t think you need to reinvent the wheel. Yes, you can be creative and tailor strategies to fit your unique situation, but that’s completely different from using approaches that have no quantitative backing.

I try to approach discussions about finance with those in my age group from a “modern” perspective because things are so different now compared to when our parents were our age. I focus more on mindset and developing strong financial habits—because I believe that’s the foundation of financial success, whatever that may look like for you.

What are your career goals?

Some people think I’m dreaming, but I have an elaborate plan for my career.

Within the next 2 years, I hope to complete the education requirements, pass the Certified Financial Planner (CFP) exam, and gain the necessary hours to earn my certification. From there, I’d like to spend three to five years working in the industry, gaining experience and expertise.

After that, my goal is to start my own financial services firm dedicated to serving creative professionals. I want it to go beyond just financial planning because there are so many other areas—like financial coaching, business planning, and tax preparation—that play a crucial role in a holistic financial strategy.

How do you see your art fitting into your professional life after college?

This question comes at a great time, as it’s something I’ve been thinking about a lot while navigating my thesis. I see art remaining a significant part of my life. I’ll continue attending gallery openings and staying engaged with the art world. However, when it comes to my own studio practice, I’m not entirely sure what that will look like long term.

There may come a time when I must choose between pursuing my dream of owning a financial services firm and being a practicing painter. While I love painting, I believe I can provide more value to the creative community through my financial expertise. However, in many ways, my art serves as a gateway to conversations about my mission. I especially enjoy projects where I can sell my work and use the proceeds to support artists.

Top personal finance advice for your generation?

1. Invest in yourself more than the average person.

2. Ultimately, your ability to be financially successful isn’t determined by your age, gender, race, career, or socioeconomic status—it’s determined by you.

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Like I said, “Kids these days… are awesome.” Thank you, Jaden.

If you Google, “Personal Finance Tips for 2025”, you’ll get 800,000,000 results. Not only did I not read all 800,000,000, but I also didn’t even get through the first eight before I found contradictions. This didn’t really surprise me as I see plenty of tips and tricks from a variety of sources, and, yeah, they are all over the place.

And I recently started following another PFG (personal finance guru), enjoying his takes on money topics as well as his analysis of other advice he has seen on social media. As I was listening to him rant against reckless spending, he went on a budgeting tangent, and he said, “I don’t like budgets, I don’t use budgets, I don’t recommend budgeting to my clients.”

What?!? (needle scratches across the record…) Say it ain’t so! Later, in another video, he comes out against home ownership, saying that he rents and will continue to rent.

Foundations rattled; pillars crumbled. My all-time PFG (Dave Ramsey) would be plugging his ears or unplugging his speakers.

Personal finance is important, and there should be a standard playbook, right? Well, maybe not. While there are some fundamentals that apply almost all the time to almost all individuals, there are also different methods/tools/strategies which push us toward the same result and there are nuances within personal finance subjects which depend on age, income, stage of life, values, and more.

It can be overwhelming to decide which advice is right.

So, at the well-calculated risk of further muddying the waters, I’m offering my tips on sorting through personal finance tips.

A Few Pillars to Lean on

First, let’s cover ground absent of debate, places where respectable PFGs gather in peace.

• Spend less than you make
• Follow the law
• Buyer beware

That’s All?

There are probably more personal finance principles that most would agree on, but the list is (surprisingly?) short. It’s much easier to note where folks don’t agree.

• Coffee will make you poor
• Always save 10%
• Always save 20%
• Rent don’t own
• Own don’t rent
• Pay debt before investing
• Invest as much as possible as soon as possible ignoring debt
• Pay student loans
• Wait for government modifications to student loans & payments
• Don’t buy new cars
• Never buy a used car
• Always use cash
• Credit cards are never a good choice
• Buy term life insurance
• Buy whole life insurance
• Don’t buy life insurance at all

Quoting myself from a few paragraphs ago…

 “…there are nuances within personal finance subjects which depend on age, income, stage of life, values, and more.”

This also illustrates the difference between PFGs (personal finance gurus) and CFPs (Certified Financial Planners) and other personal finance professionals (and Certified Personal Finance Educators like me).

PFGs, even when honest and well-meaning, throw out generalizations and statements, and might be trying to attract attention (if they get paid by views and clicks).

CFPs, CPFs, ChFCs, CFEs, etc., take a global look at finances with a holistic approach to charting a path, addressing the details along the way that make the most sense for the person, time, and place.

But This, This is Just Wrong

I just saw a social media marketing post, disguised as financial advice, which lures readers with something like, “Stop Making These Financial Mistakes”. SIX of the eight items on their list included recommendations to BUY something or to BORROW.

I can’t get behind any financial wisdom which advises buying or borrowing. Sometimes, and when I say sometimes, I mean rarely, refinancing can be on the table but might be for situations involving crippling debt or other crises.

Examples of this type of “advice” are not hard to find, you’ve probably seen or heard an ad or post that says the way to improved finances can be found through:

• Home and/or auto warranties
• Another credit card (but this one has a lower introductory interest rate!)
• Invest in real estate (risk free!)
• More life insurance
• Buy cryptocurrencies
• Refinance credit cards (for a fee)
• Buy cheaper insurance (no matter if the coverage is appropriate)
• Get a credit card with bonus miles
• Pay a retail store a membership fee so you can then buy more overpriced toilet paper than a family will need this decade

Some of these sources also imbed (sort of) the idea of shopping around for the best deal on certain items, and that is generally a good idea. However, when they say to shop around but provide you a link to just one company, you are reading an advertisement, not financial advice.

When consuming personal finance articles or posts, consider this: if they are selling, they are not helping.

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It’s tricky offering advice on taking personal finance advice. One might think that the numbers don’t lie and that every decision about money is correct if made by applying experience and math. But it doesn’t work that way because the ones applying the experience and the math are people, and no two people see things the same way. So, yes, paying debts off according to interest rate might make mathematical sense, but paying debts off the Dave Ramsey Snowball Way (smallest to largest) can provide a critical psychological boost which can propel someone to greater success than math alone.

After a couple of decades of this, I have established a few unbreakable pillars, but I’m always listening to fresh viewpoints as well. However, for several years now, most “new ways” of mastering money that I’ve seen are at best gimmicky and at worst outright FOMO-driven schemes designed to separate us from our money.

I think it’s probably been this way for as long as there has been money.

So, for those of us who live in the paradox of not having enough money to pay for advice on how to have more money… Keep learning, know yourself, understand your risk tolerance, spend less than you make, and when approached by the latest trend which unlocks money’s mysteries, hold onto your wallet and back away.

Links on PFGs and other types of personal financial advisors.

Types of finance professionals from Enrich

Guru 1

Guru 2

Finally, SNL tells us all we really need to know.

“Out of college, money spent.
See no future, pay no rent.
All the money’s gone, nowhere to go.”

-The Beatles

Most of the ideas for these posts come from my personal experience with money or from my experiences teaching personal finance. However, inspiration for which topic to cover in a particular month sometimes comes from unexpected sources.

Over the Thanksgiving holiday weekend, I attended a concert – the 22^nd Annual Beatles Night concert – delivered by Spencer and the Walrus. (For Beatles fans who have not seen one of these shows… Make plans for Thanksgiving weekend 2025 and the 23^rd iteration. It’s a truly incredible experience. I think I’ve been to 15 of the 22 shows.)

I take you to a moment in the concert when the band invited a nine-year-old boy to play drums for “While My Guitar Gently Weeps.” After the song, the crowd went wild. He came to the front of the stage and bowed, drumsticks in hand. HE NAILED IT!

The boy is the son of the band’s drummer, and as he took his bow, his dad climbed back into the seat behind his kit and wiped the happy tears rolling down his face. This was followed by the others in the band (especially the guys) drying their eyes. And if that wasn’t enough, a few songs later the drummer’s young daughter led the theatre in singing “Yellow Submarine.” Are you kidding me?! It was perfect.

And the cobbler’s children have no shoes

After both of those kids made their dad proud, I looked to my 12-year-old son and said, “You should know that I get emotional any time you say that you are going to save your birthday money rather than buy something.” He laughed ‘cause he knows it’s true.

All joking aside, that moment made me think about what I have passed on to my kid from my profession.

It’s a big conversation, but right now I’ll focus on the part related to that old Spanish proverb about the cobbler. I teach personal finance, but I often wonder if I am teaching my boy enough about money. No matter what we do for a living, we all have had to learn how to manage our finances in a uniquely complicated and unforgiving system. How can we prepare our children to survive and thrive?

While some students in Maine are benefiting from school-based financial education, it is still not available to all. See the end of this post for an update on efforts to guarantee financial education basics for all Maine high school students.

“Children are great imitators. So give them something great to imitate.” —Unknown

There once was a man named Aristotle, who had a lot of things to say about … (darn it, nothing relevant rhymes with Aristotle). Well, he had a lot of things to say about a lot of things, including raising children. He felt that children learn best through imitation. Hmm… that sounds a lot like observing role models, learning by example, etc.

“Parents are the primary influence on a child’s future financial well-being because they have many occasions to communicate information, set powerful examples, and involve children in activities that teach them financial skills. Parental involvement in their children’s financial education has long lasting effects.” – Federal Deposit Insurance Corporation

I’ll add, for whatever it’s worth, that in my now decades of studying and teaching personal finance, I’ve seen no greater influence on kid’s attitudes toward money than what they have learned at home, mostly through watching and listening. And yes, that can be a good thing. But it’s too often not as we adults don’t always exhibit strong and responsible financial behavior. I can only imagine what messages I would have sent if I had children when I was, eh, struggling with my financial decision making.

And even though I think my son is learning positive money lessons through a bit of household osmosis, I know it’s not enough. I must take more proactive, age-appropriate actions to teach him how things work in the U$A. Some of these are done, some in progress, some are coming soon:

• Opening a bank account
• Paying him, if necessary, to read my blog. Hey, that gives me an idea…
• Piggy bank at home
• Looking at the bank account and explaining interest
• Talking about how much of that birthday money to save
• Opening a 529 savings account, making contributions, putting part of his money into the account, showing him how the money has grown, and having regular chats about the costs and benefits of education
• Explaining debit and credit cards while checking out at the grocery store
• Explaining unit price at the grocery store
• Explaining the stock market and letting him manage $100 in an online account
• Taking part in an online course with an essay contest
• Asking his school if they are offering any opportunities for personal finance or economics through class topics, or clubs, guest speakers (like me!), etc.
• Encouraging questions and curiosity about all things money, economics or finance
• Desperate attempts to make opportunity cost seem relevant

Resources, resources, resources

I am a personal finance educator and amateur economist, and I still often find myself saying, “I don’t know how to do that or where to find out.” So, where can we go for help? It’s a long list (of FREE stuff), but don’t try to grab it all at once. Pick one and explore a little at a time. You will find something that works for you and your kid(s). If not, please reach out to me, and I’ll help you dig for something that does work.

• FAME – financial wellness for our kids
• Claim Your Future – FAME’s career and budgeting activity, online version available to everyone, and a classroom kit for teachers & counselors
• iGrad – short courses, articles, videos, and more for high school and college students
• FDIC – teaching children about money
• CFPB – Money as You Grow
• Federal Reserve Bank of St/ Louis – for teachers, a treasure of searchable personal finance and economics lessons and activities
• Next Gen Personal Finance – for middle and high school teachers, complete curricula for personal finance with lessons, activities, and games
• And I (all of us at FAME) like visiting schools in person or virtually, so please don’t hesitate to ask or connect me with someone at your area school to see what personal finance resources we can bring to the classroom.

Update: Maine and Personal Finance Education

I appreciate this forum and the chance to talk about personal finance and lobby for all Maine students to receive financial education. However, I am even more appreciative of the folks who are actively working behind the scenes to make that happen.

Here is the latest from Samantha Drost, Vice President and Conference Coordinator of the Maine Jump$tart Coalition for Personal Financial Education, and Consumer Economics and History teacher at Caribou HS.

“Our second round of presenting the MLR social studies standards to the Education Committee is underway, and the public comment period has now closed. Maine Jump$tart proudly served as a stakeholder on the Overview Team, where we proposed enhanced personal finance standards that we believe will make a significant impact. If approved, the updated MLR social studies standards will align with the six main overarching standard topics set by the National Jump$tart Coalition for Personal Finance Education. The formal review process by the committee is scheduled to begin in January, with a decision hopefully expected by May. Maine Jump$tart remains hopeful and continues to advocate for comprehensive personal finance education for students from kindergarten through high school.”