Jacquelyn Lynn, Business Writer, Speaker

Kids are Never Too Young to Learn About Money and Financial Management

A while back, I reviewed a CD for kids -- Mission 1: Celebrate Saving! (click to read the review), a music CD by Sammy, a cartoon rabbit that serves as the spokesperson for The "It's A Habit!" Company, Inc. After I posted the review, I passed the complimentary review copy of CD along to my grandson.

He's now six and Mission 1: Celebrate Saving! is one of his favorite CDs. His mother (the world's number one daughter-in-law) tells me that he loves to listen to it and to sing along with it. More important is that he's asking good questions about money, saving, and spending. There's a song on the CD that warns kids to be wary of advertising claims, and Jeremiah now watches television commercials with a very critical eye.

It's time to start thinking about Christmas. If you have youngsters on your gift list, that CD or some of the other products featuring Sammy Rabbit and his financial lessons would be great -- and they're very affordable. Visit www.itsahabit.com for more information.

Get Your Share of the Money from Political Campaigns

I was going to start this by commenting that political campaigns are a cottage industry. But really, they’re more like a mansion industry. They’re huge! Campaigns for local, state, and national races, as well as organizations that want to influence the outcome of those races, are spending millions, probably even billions, of dollars collectively—and if you happen to sell the product or service they need, why not get your share of that business?

Having not been on the finance side of a campaign, I’m only speculating when I say that probably a significant portion of campaign money is spent on media buys. But like any business, campaigns also have to buy printing; t-shirts; hats; signs; office supplies; computers, phones, and other office equipment; graphic design and copywriting; advertising production; services including accounting, legal, and other consulting; and a host of other products and services.

Just one very important word of caution: If you have a political campaign as your customer, get paid up front. Extending credit to a political campaign can be very risky. It’s very common for campaigns to end in debt, leaving creditors unpaid.

If you support the candidate or the cause, make a donation. If you’re providing goods or services as part of your business, protect yourself and insist on payment in advance.

Jacquelyn Lynn

The Entrepreneur’s Almanac

Should insurance companies notify consumers when their bad credit is used against them?

The essential question is: Are insurance companies violating the Fair Credit Reporting Act (FCRA) when they make an adverse decision based on information contained in a credit report and fail to tell the consumer?

The U.S. Supreme Court has agreed to hear two consolidated cases that address the issue.

According to the Supreme Court of the United States blog: Although the facts for each plaintiff-respondent differ, their complaints are essentially based on the same theory: respondents were entitled to an adverse action notice because they received rates that were higher than the best available rates the companies could offer; and because the companies willfully failed to provide these notices, respondents are entitled to both statutory and punitive damages. Click here for the full post.

Opinion in the business community tends to support insurers; consumer groups claim the insurance companies are weakening the system. A key issue is whether the insurance companies willfully broke the law.

If your business is subject to the FCRA, you’ll want to monitor this case.

Jacquelyn Lynn