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Top 10 Most Embarrassing Money Topics

By U.S. News & World Report

Being financially literate, or understanding all aspects of your financial life, is crucial to becoming confident about money. But often, we’re too embarrassed or uncomfortable to talk about money openly. According to a 2013 Wells Fargo survey of over 1,000 adults, 44 percent of respondents said “personal finances” is the hardest topic to discuss with others, followed by “death” at 38 percent and “politics” at 35 percent.

Money topics such as debt, student loans, salary, credit scores and even saving for the future can cause paralyzing anxiety. A 2014 National Foundation for Credit Counseling study on financial literacy showed that only 2 in 5 adults believe that, if their money could talk, it would say. “We’ve been a successful team.”

So to help improve your relationship with your money, we’ve raised 10 potentially embarrassing money topics and offered some suggestions to tackle them with confidence.

1. Spending well above your means. Though keeping up with the Joneses feels like a problem we should have grown out of in high school, we are all guilty of this from time to time. Insisting on paying for dinner out with that friend who makes twice what you do so that you can impress her is just not worth the strain on your finances. It’s OK to be honest with yourself and others when making plans, and push for activities that will fit your budget instead of racking up debt or running through your whole food budget in one meal.

2. Debt because of overspending. We’re looking at you topic No. 1. Getting into debt is easy. Digging out of debt is hard. It can feel even worse if it’s due to lavish spending habits or poor budgeting. Personal finance apps can help show you the big picture of where you are financially, so you can stay in control of your finances and feel good about the purchases you make (within your means, of course).

3. Debt because of bad advice. If you’re seeking financial advice, start with trusted and reliable sources. While friends and family are great and can hold you accountable to your money goals, organizations such as the National Foundation for Credit Counseling and Consumer Credit Counseling Service can give you that extra professional support you need.

4. Loaning money to friends and family. You’ve heard the saying money and family don’t mix, but they can (with caution). Check out these four simple steps to follow if you are considering loaning money.

5. Credit card(ssss). You don’t need more than two credit cards to help build credit and to use on a consistent basis. More than that, and you can actually damage the credit reputation you’ve built. Avoid the tempting discount offers from store credit cards. Their interest rates can skyrocket and only increase your debt.

6. A weak credit score. A low credit score can put a damper on more than you think. It can be difficult to obtain insurance, apply for a car loan or even rent an apartment. If you have loaded up on credit cards and have a habit of overspending and paying bills late, you may find your score is low. But knowing your credit score, and working to improve it, is what financial literacy is all about. So while it may take some time to boost that low score, diligently paying down debt will slowly raise your score and open new doors to you.

7. The burden of student loans. Pursuing a higher education can be financially challenging. And once you look at the amount of interest that student loans can generate, it can feel impossible to pay them off. But you can do it with just a little bit of planning.

8. Managing a 401(k). Planning for retirement in your 20s with student debt and a small paycheck may sound ridiculous, but it’s not. Even contributing just 2 to 3 percent of every paycheck (and gradually increasing the percentage every year or so) is an easy way to build your 401(k) and retirement savings without having to be a personal finance expert.

9. Not knowing how to save. The key is automation. Having your bank automatically put aside as little as 1 percent of your income to deposit directly into a savings account is a great start. You probably won’t even notice the money missing from your checking account after a few weeks.

10. Money and my significant other. Though you’d probably prefer to talk about anything else, talking about money is key to any successful relationship. Start by sharing how you each feel about money such as wants and needs. Slowly ease into the stickier topics such as who pays for what, long-term saving versus short-term spending and your comfort level with investing together. Schedule recurring money “dates” where you can comfortably have ongoing money conversations together.

Now that you’ve made it through the list (perhaps with a bit of squirming), don’t feel like you have to tackle all of this. Start small and commit to improving one aspect of your financial life at a time. Before you know it, the taboo money topics will be a little easier to discuss and manage.

More from U.S. News

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10 Money Leaks to Shut Down Now

10 Foolproof Ways to Reach Your Money Goals

Top 10 Most Embarrassing Money Topics originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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