Financial Accuracy

Toyota has been hit with hundreds of complaints about their new Hybrid Pruis’ brakes in both the U.S. and Japan.

On Wednesday, Ray Lahood, Transportation Secretary, gave guidance to owners of Toyota cars. He said, “My advice, is if anybody owns one of these vehicles, stop driving it. And take it to a Toyota dealer.” Obviously the only words that stuck out to people from his advice was, “Stop driving it.”

When later swarmed by reporters, Lahood tried to take back his words by saying, “What I said in there was obviously a misstatement. If you own one of these cars, or if you’re in doubt, take it to the dealer.”

Toyota has declared to have fixed it’s problem concerning it’s Prius’ Hybrid and encourages all who want, to come into the dealership to get it fixed.  However, Toyota is not so blunt or concerned about its drivers as to stay “Stop driving,” like Lahood.

With this recall and criticism, Toyota’s company has dropped sales in the U.S. dramatically. Also, Toyota stocks are down by 5%.

Surprisingly, Toyota has posted a $1.7 billion profit in the third quarter despite the $2 billion it spent in recall costs.

The excitement of heading off to college and ruling one’s own life is exhilarating. Sometimes this prospect is tempered with the cost of attending college. Many college students find that they need to take out student loans. When they go to apply for one, the banker tries let them down in the easiest way possible by letting them know that they need the raise their credit score to be eligible for one. Following is a list of the many options availiable to these students.

1. Apply for federal aid or loan programs such as Stafford and Perkins loans, Federal Grants, or scholarships: Specialized scholarships and grants are offered to students in particular majors. There are also personalized loans offered depending on the course load or the number of years a certain program will take.

2. Wait and working raising their credit score: Some students do not need a loan right away and are worrying about the future. Instead of taking out a loan right away, the best option for them is to work on raising their credit score. Students can raise their credit score by paying bills on time, balancing checking accounts occasionally, and making regular monthly payments on their previous commitments. It is also good to check and make sure there is not a mistake on the credit report.

3. Talk to a Credit Counselor: There are many credit counselors and advisor who can help review the credit report and translate exactly what it means. They can also help people with bad credit to get back on the right track to obtain a high credit score. Many student loan corporations have counselors that people can speak to for free.

4. Use a co-signer: A co-signer is usually a parent who has a good credit score. The provider trusts the co-signer to cover the bill should the student not be able to make a payment. Another advantage of this method is that the interest rate will depend on the co-signer’s credit, which is usually a much better rate than the student would be able to receive on their own.

5. Bad or No Credit Loans: There are a few student loans available for students with bad or no credit. However, these loans have much high interest rates. It is usually better to select a different option if possible, but there are advantages to these kinds of loans. The appeal of these loans is that they do not have to be paid back right away. These lenders do not require payments until after the student completes their education and they are making a certain amount of money. On top of this, the amount of money they have to be making has been rising the past few years.

Responsibility with money is an important habit to develop at a very early age. It is a decision making habit that will affect children the rest of their lives. The education a parent can teach them will be priceless when they reach the adult world. Here are some tips on how to educate them to use money wisely.

1.Show them the difference of rewards between saving and spending. Saving can have much larger and long lasting rewards, but the wait is longer. Meanwhile spending is most likely a temporary reward.

2.Give them the opportunity to handle their own money. Provide them the chance to earn allowance. As the parent, you will also get a little extra help.

3.Break the pay up so it is easy to save. For example, if their allowance is $10, give them a $5 and five $1’s. Then discuss how much should be saved and encourage them to put it in their piggy bank.

4.When they have enough saved, take them to a bank and open a savings account. Help them understand the processes of the bank as they grow older. Keep encouraging them to save for important things like college, as well as the fun things they want to purchase.