Needed Information AND Individually Assessing Strategies

"What is lacking is not information (e.g., who is charging what for a mortgage?), but rather the ability to interpret the information (e.g., how well do alternative mortgage strategies fit my needs?)"

How do I make assessment of reality of advertisement claims? How do I actually come down to REAL hard concepts for ME?

Look for where the money leads.... for instance, any advertising is designed to persuade us to "buy-in" with our beliefs, money, time, effort, and energy. The question is - WHO is getting paid because of this advertisment?

Businesses advertising in the yellow pages pay substantial sums each month - $300 to $5000 EACH MONTH for that year; $1.50 to $10+ per mailed advertising packet/envelope. They advertise because it GENERATES your call, your contact, so that they can sell you a service, a product, or an idea that will generate a "sale" and revenue.

Given the apparent weak financial knowledge

"For the new financial freedom to help most people, they must understand their choices and the likely implications of alternative choices. Unfortunately, many Americans have a weak grasp of basic personal finance principles. One survey covering overall financial concepts found that nearly two-thirds of American adults and high school students did not know that money loses its value in times of inflation (Jump$tart 2004). General attitudes toward spending and saving behavior are troubling as well. Results from the same survey revealed that only a quarter of Americans feel very well informed about managing household finances (Jump$tart 2004). Low-income families are especially vulnerable to misinformation. What is lacking is not information (e.g., who is charging what for a mortgage?), but rather the ability to interpret the information (e.g., how well do alternative mortgage strategies fit my needs?). Many people even seem unable to recognize the future burden they will experience by borrowing at very high interest rates. Without knowing all of the circumstances of individual cases, it is difficult to determine how many people are making poor decisions. But, given the apparently weak financial knowledge of a large segment of the population, the high rates of consumer bankruptcy, and the large share of the population poorly prepared for retirement, there are reasons for concern. " from: http://www.knowledgeplex.org/showdoc.html?id=192571

As the Director of Homeownership Initiatives for a HUD counseling agency in Flint, Michigan during my day job, I am very aware of the disastrous effects of uninformed choices in our financial lives. During the following posts, I hope that we can gather and discuss some of the important information and strategies, and how to move ourselves and our communities toward a stronger financial foundation for ourselves and families.