According to consumerjungle.org, 50 common financial mistakes include: not having a savings account, buying too soon--that is, buying something on credit instead of waiting until the money saved up, not having emergency savings, not saving early enough in life for retirement, lack of budgeting, following bad investment advice, not knowing the financial consequences of DUIs, drunk driving, speeding, etc., not taking advantage of an employer contribution to a retirement plan.
Choosetosave.org is a web site that offers financial literacy to debtors. It offers calculators, savings tips, and investment strategies.
As part of the Pension Protection Act of 2006 (PPA), employers have been helping employees choose to save by automatically enrolling new hires to 401(k) plans beginning January 1, 2008.
Employees who do not want to be part of a retirement plan should watch out for employer notifications on (1) their right to opt out of the plan, (2) to change their deferral amounts and investment allocations and what the default investment will be if they fail to do so. Employees automatically enrolled may revoke the enrollment within the first 90 days and receive a refund of deferred amounts as current taxable compensation without the 10% early distribution penalty excise tax.
Employers with automatic deferral must set a first withdrawal minimum of 3% to 10% of pay and must escalate at a rate of at least 1% per year so that the employee is deferring at least 6% after the third year.
The Bankruptcy Code provides protection and as such acts as a bailout for consumers who are overburdened by debt and are not given a break from their creditors. Consult with a bankruptcy attorney to initiate a fresh start on financial literacy.
