If you missed it Friday night, ABC's special "Un-Broke: What You Need to Know About Money" was quite interesting. This was ABC's reaction to our current economic climate by way of simplifying how we view personal finance. The program's host and Good Morning America's financial contributor, Mellody Hobson was on hand to introduce humorous star studded skits, as well as present surveys taken of people with regards to their own finances. For instance, it is recommended that each person have at least one month's salary saved up, in addition to an emergency fund. Many of the people surveyed have small or nonexistent savings built up and those that live pay check to pay check feel it is impossible to set aside money each pay period. As a result, Hobson suggests putting aside just $1 per pay period and letting that build up until the $1 can become $2 and so on. A savings plan is necessary especially in today's economy, to protect against the sudden loss of employment or the unexpected events that occur and cost money. With the average Social Security check at $1,100 per month it is also important to save for retirement. It is often a difficult choice whether to save for retirement or college and according to Hobson, it is in the parents' best interest to put their retirement first. Once they have significant savings built they can begin to contribute to their children's education. This will prevent parents from relying on their child or children should unfortunate circumstances arise.
The show, which aired from 9pm-10pm also featured celebrities Will Smith, Rosario Dawson and the Jonas Brothers in skits aimed to educate children and adults on credit cards, stock market indexes and mortgages. Seth Green appeared in a segment designed to show people how they can have both long term financial goals while living successfully within their means. Green's character toured a home MTV Cribs style and suggested that an affordable home or apartment should cost no more than 1/3 of your monthly income. He also pointed out that owning a car with good gas mileage or appliances that are energy star efficient will help save money down the road.
If you would like to view any of these segments, most are available on YouTube.com. There were skits with Antonio Banderas and Marisa Tomei and even the *E-Trade babies.
Hope you found the information helpful, we sure did!
Until next time,
Savvy Student
No comments:
Post a Comment