Planning for retirement can be complicated. Christine Cheng from the Illinois Treasurer’s Office discusses how Illinois is addressing barriers and helping small businesses provide retirement benefits to their employees in our latest episode of Making Cents of Money.

Show Notes:

Other relevant Making Cents of Money episodes:

• Free Financial Education Resources for Illinois Residents (ep. 82): https://on.soundcloud.com/qTW36fwcpVm39qWm9

• Building Wealth After Graduation (ep. 80): https://on.soundcloud.com/Jbsh4K1RTt6zLMnx7

• The Impact of Compound Interest (ep. 70): https://on.soundcloud.com/ZV4F8Kh9XuiaXtcW9

• Understanding Your Paycheck (ep. 69) https://on.soundcloud.com/ZUusJGntzDHEJeDw9

• Investing to Reach Financial Goals (ep. 57): https://on.soundcloud.com/2rneJZ3YPXSyUStY9

• Preparing for Retirement (ep. 12): https://on.soundcloud.com/hnQVfEy2p5xQwgBs5

Research discussed in this episode:

• Pew’s look at how much states will pay for residents having insufficient retirement savings: https://www.pewtrusts.org/en/research-and-analysis/articles/2023/06/01/states-face-334-billion-shortfall-over-20-years-due-to-insufficient-retirement-savings

• AARP’s Illinois fact sheet: https://www.aarp.org/content/dam/aarp/ppi/2022/state-fact-sheets/illinois.doi.10.26419-2Fppi.00164.015.pdf

• Illinois Secure Choice website: https://www.ilsecurechoice.com/

• Illinois Financial Wellness Hub: https://illinoistreasurer.enrich.org/

Going back to college means it’s time to evaluate credit cards and financing options for students and families. We break down the different tools available (and their short- and long-term impacts) in this episode of Making Cents of Money.

Show Notes:

Unbiased sources of consumer education from the CFPB:

- Student banking and college credit card marketing agreements: https://www.consumerfinance.gov/data-research/student-banking/

- Your Money, Your Goals toolkit (p. 121 of the downloadable toolkit has a comparison of paying for the costs of an unexpected car repair with emergency savings, a credit card, or a payday loan): https://www.consumerfinance.gov/consumer-tools/educator-tools/your-money-your-goals/toolkit/

Previous Making Cents of Money episodes on Credit:

- Credit Reports Update (ep. 74): https://blogs.uofi.uillinois.edu/view/7550/1222872163

- What’s a Credit Report Anyway? (ep. 67): https://blogs.uofi.uillinois.edu/view/7550/171138189

- Credit Scores (ep. 51): https://blogs.uofi.uillinois.edu/view/7550/343469214

- Choosing a Credit Card (ep. 43): https://blogs.uofi.uillinois.edu/view/7550/295268937

- Credit Access (ep. 42): https://blogs.uofi.uillinois.edu/view/7550/203994282

- Conscious Credit (ep. 15): https://blogs.uofi.uillinois.edu/view/7550/1450729729

- Understanding Credit (ep. 5): https://blogs.uofi.uillinois.edu/view/7550/270248943

Get Savvy Webinars

- Your Financial Tool Chest – We discussed Buy Now, Pay Later tools starting at 45:35 in the YouTube video: https://youtu.be/XdUgsotxCqE?feature=shared&t=2735

- Build Credit to Your Advantage: https://youtu.be/FZGqbTavfsY?feature=shared

- Mastering the Consumer Credit Game on December 5, 2024, at 12 PM – Register at https://go.uillinois.edu/getsavvywebinars

Legislation related to Credit Cards:

- Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act): https://www.ftc.gov/legal-library/browse/statutes/credit-card-accountability-responsibility-disclosure-act-2009-credit-card-act

- Fair Credit Reporting Act: https://www.ftc.gov/legal-library/browse/statutes/fair-credit-reporting-act

Research on Credit Use:

- Blankson, C., Paswan, A., & Boakye, K. G. (2012). College students’ consumption of credit cards. International Journal of Bank Marketing, 30(7), 567-585. https://www.emerald.com/insight/content/doi/10.1108/02652321211274327/full/html

- D’innocenzio, A., & Lewis, C. (2024, July 30). Stores lure back-to-school shoppers with deals and “buy now, pay later” plans. AP News. https://apnews.com/article/backtoschool-shopping-deals-inflation-c7fc6041e4d34cabc2edbfbc556ef667

- Hayhoe, C., Leach, L. J., Allen, M., & Edwards, R. (2005). Credit cards held by college students. Journal of Financial Counseling and Planning, 16(1). https://www.researchgate.net/publication/253767760_Credit_Cards_Held_by_College_Students

- Shupe, C., Li, G., & Fulford, S. (2023). Consumer Use of Buy Now, Pay Later Insights from the CFPB Making Ends Meet Survey. Consumer Financial Protection Bureau Office of Research Reports Series, (23-1). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4399626

After being part of the Making Cents of Money podcast since its launch in August 2020, we say goodbye to long-time host Nikki Giancola-Shanks – but welcome a new voice, Kimber Beckler!

Join us as we begin this new chapter of Making Cents of Money.

Previous Episodes of Making Cents of Money:

Episode 79: What Happens When a Bank Fails https://soundcloud.com/idfpr/episode-79-what-happens-when-a-bank-fails?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing&si=81095517ab0b4241a49d72ef60bc6e99

Episode 66: Password Managers https://soundcloud.com/idfpr/episode-66-password-managers?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing&si=660a3974c07a4843bcb4abf4dda6875b

Episode 60: Return to Repayment https://soundcloud.com/idfpr/episode-60-return-to-repayment-update?utm_source=clipboard&utm_medium=text&utm_campaign=social_sharing&si=b3b6d459390649969a4ad66b9c08cbe4

From financial literacy to financial capability -and everything in between - we explain key terms related to financial well-being in our latest episode of Making Cents of Money!

Show Notes:

Find out your financial well-being (CFPB): https://www.consumerfinance.gov/consumer-tools/financial-well-being/

Some Research on Financial Terms:

De Bruijn, E. J., & Antonides, G. (2022). Poverty and economic decision making: a review of scarcity theory. Theory and Decision, 92(1), 5-37.

Johnson, E., & Sherraden, M. S. (2007). From financial literacy to financial capability among youth. J. Soc. & Soc. Welfare, 34, 119.

Lee, J. M., Lee, J., & Kim, K. T. (2020). Consumer financial well-being: Knowledge is not enough. Journal of Family and Economic Issues, 41(2), 218-228.

Lusardi, A., & Mitchell, O. S. (2011). Financial literacy around the world: an overview. Journal of pension economics & finance, 10(4), 497-508.

Remund, D. L. (2010). Financial literacy explicated: The case for a clearer definition in an increasingly complex economy. Journal of consumer affairs, 44(2), 276-295.

Rothwell, D. W., Khan, M. N., & Cherney, K. (2016). Building financial knowledge is not enough: Financial self-efficacy as a mediator in the financial capability of low-income families. Journal of Community Practice, 24(4), 368-388.

Sherraden, M. S. (2010). Financial capability: What is it, and how can it be created?.

Xiao, J. J., & O'Neill, B. (2016). Consumer financial education and financial capability. International Journal of Consumer Studies, 40(6), 712-721.

In real estate, appraisal bias can keep homeowners from receiving the full value of their home. IDFPR Deputy Secretary Ericka Johnson breaks down what appraisal bias is, how exactly it affects consumers, and what you can do if you believe you’re a victim in our newest episode of Making Cents of Money.

Show Notes:

HUD: Appraisal Bias and the Valuation Process - https://www.hudexchange.info/programs/housing-counseling/housing-counseling-today/appraisal-bias-and-the-valuation-process/

NPR: Racial Bias often creeps into home appraisals. Here’s what’s happening to change that -https://www.npr.org/2023/03/13/1161713496/home-appraisals-racial-bias-black-latino-homeowners-lawsuit

Making Cents of Money podcasts:

- Buying a Home! (ep. 36): https://soundcloud.com/idfpr/episode-36-buying-a-home

- Mortgages (ep. 38): https://soundcloud.com/idfpr/episode-38-mortgages

- Credit Access (ep. 42): https://soundcloud.com/idfpr/episode-42-credit-access

- Selling a Home (ep. 45): https://soundcloud.com/idfpr/episode-45-selling-a-home

- The Community Reinvestment Act (ep. 47): https://soundcloud.com/idfpr/episode-47-the-community-reinvestment-act

- Help for Homeowners (ep. 63): https://soundcloud.com/idfpr/episode-63-help-for-homeowners

- Lines of Injustice: What is Redlining? (ep. 83): https://soundcloud.com/idfpr/episode-83-lines-of-injustice-what-is-redlining

- The Federal Community Reinvestment Act (CRA) (ep. 85): https://soundcloud.com/idfpr/episode-85-the-federal-community-reinvestment-act-cra

- The Illinois Community Reinvestment Act (ep. 86): https://soundcloud.com/idfpr/episode-86-the-illinois-community-reinvestment-act

Research

• How racial bias in appraisals affects the devaluation of homes in majority-Black neighborhoods (Brookings, 2022): https://www.brookings.edu/articles/how-racial-bias-in-appraisals-affects-the-devaluation-of-homes-in-majority-black-neighborhoods/

• HUD reaches groundbreaking settlement with The Appraisal Foundation to ensure equal opportunity in the appraisal profession (HUD, 2024): https://www.hud.gov/press/press_releases_media_advisories/HUD_No_24_176

• Racial and ethnic valuation gaps in home purchase appraisals (FreddieMac, 2021): https://www.freddiemac.com/fmac-resources/research/pdf/202109-Note-Appraisal-Gap.pdf

Government Resources and Legislative Efforts:

• How to become an appraiser in Illinois:

https://idfpr.illinois.gov/content/dam/soi/en/web/idfpr/forms/dre/hdi/how-do-i-become-an-appraiser-in-illinois.pdf

• Fair Housing and Equal Opportunity from HUD: https://www.hud.gov/fairhousing

• PAVE Interagency task force on property appraisal and valuation equity (HUD): https://pave.hud.gov/

• Protecting homeowners from discriminatory home appraisals (CFPB, 2023): https://www.consumerfinance.gov/about-us/blog/protecting-homeowners-from-discriminatory-home-appraisals/

• IDFPR Real Estate Valuation Task Force: https://idfpr.illinois.gov/profs/boards/rev-task-force.html

• IDFPR “How To” Series from the Division of Real Estate: https://idfpr.illinois.gov/dre/howtoseriesdre.html

In our latest episode of Making Cents of Money, Acting Director of Banking Susana Soriano discusses Illinois’ historic Community Reinvestment Act (CRA). From reducing discrimination to combatting redlining, learn how this landmark legislation will help Illinois consumers!

Show Notes:

• Please note, this podcast was recorded before rules for Illinois’ Community Reinvestment Act were adopted on May 1, 2024. The rules may be found below:

o Banks: https://idfpr.illinois.gov/content/dam/soi/en/web/idfpr/forms/CRA-Banks.pdf

o Credit Unions: https://idfpr.illinois.gov/content/dam/soi/en/web/idfpr/forms/CRA-CU.pdf

o Mortgage Lenders: https://idfpr.illinois.gov/content/dam/soi/en/web/idfpr/forms/CRA-ML.pdf

• Legislation for the Illinois Community Reinvestment Act: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ChapterID=20&ActID=4086

• Illinois CRA Coalition Fact Sheet: https://housingactionil.org/downloads/Policy/ILCRAOverviewMarch2023.pdf

Did you know federal law aims to curb discriminatory lending? Ed Hill from IDFPR’s Division of Banking breaks down the Community Reinvestment Act and how it works to increase lending to underserved communities in our latest episode of the Making Cents of Money podcast!

Show Notes:

• Community Reinvestment Act (CRA) via Federal Reserve Board - https://www.federalreserve.gov/consumerscommunities/cra_about.htm

o CRA Ratings via FFIEC - https://www.ffiec.gov/craratings/default.aspx

• Housing Discrimination Under the Fair Housing Act via HUD - https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview

• Equal Credit Opportunity Act via FTC - https://www.ftc.gov/legal-library/browse/statutes/equal-credit-opportunity-act

• Home Mortgage Disclosure Act via FFIEC - https://ffiec.cfpb.gov/

• Illinois Community Reinvestment Act (CRA) via IDFPR - https://idfpr.illinois.gov/admin/cra.html

There’s a big transition happening for the Public Service Loan Forgiveness Program (PSLF)! In our latest episode of Making Cents of Money, we break down what’s happening and what this means for borrowers looking to have their college loans forgiven for public service.

In the newest episode of Making Cents of Money, IDFPR Secretary Mario Treto, Jr. discusses the topic of redlining and how it leads to disparities for generations. Learn what IDFPR is doing to address this serious topic and to help redlining to become a policy of the past.

Resources:

Investopedia: What is Redlining? Definition, Legality, and Effects: https://www.investopedia.com/terms/r/redlining.asp#:~:text=Redlining%20is%20the%20discriminatory%20practice,on%20their%20race%20or%20ethnicity.

Federal Reserve: Redlining: https://www.federalreservehistory.org/essays/redlining

Urban Institute: The Ghosts of Housing Discrimination Reach Beyond Redlining: https://www.urban.org/features/ghosts-housing-discrimination-reach-beyond-redlining

Rothstein, R. (2017). The color of law: A forgotten history of how our government segregated America. Liveright Publishing.

Previous episode:

- Ep. 42: Credit Access: https://soundcloud.com/idfpr/episode-42-credit-access?utm_source=clipboard&utm_campaign=wtshare&utm_medium=widget&utm_content=https%253A%252F%252Fsoundcloud.com%252Fidfpr%252Fepisode-42-credit-access

Did you know that Illinois Treasurer Michael Frerichs provides FREE financial education materials and programs? Listen to Financial Programs Manager Maggie Owens talk about these great resources on the latest episode of Making Cents of Money.

Show Notes

Money Minded Curriculum: https://www.illinoistreasurer.gov/Financial_Education/Money_Minded_Illinois

Financial Literacy Resources:

https://www.illinoistreasurer.gov/Financial_Education/Financial_Literacy_Resources

IL Financial Wellness Hub

https://www.illinoistreasurer.gov/Financial_Education/IL_Financial_Wellness_Hub

Financial Education Research:

Amagir, A., Groot, W., Maassen van den Brink, H., & Wilschut, A. (2018). A review of financial-literacy education programs for children and adolescents. Citzenship, Social and Economics Education, 17)1), 56-80.

Brown, M., Grigsby, J., Van Der Klaauw, W., Wen, J., & Zafar, B. (2016). Financial education and the debt behavior of the young. The Review of Financial Studies, 29(9), 2490-2522.

Kaiser, T., & Menkhoff, L. (2020). Financial education in schools: A meta-analysis of experimental studies. Economics of Education Review, 78, 101930.

Miller, M., Reichelstein, J., Salas, C., & Zia, B. (2015). Can you help someone become financially capable? A meta-analysis of the literature. The World Bank Research Observer, 30(2), 220-246.

Xiao, J. J., & O'Neill, B. (2016). Consumer financial education and financial capability. International Journal of Consumer Studies, 40(6), 712-721.