Joey Reynolds Radio Show - New York City

While recently in New York City, I appeared as a guest on the nationally syndicated "Joey Reynolds Show" to talk about the importance of Financial Literacy. Joey is quite an interesting guy, and was the original "shock jock" well before Howard Stern! Click here for information about his radio show and click here for Joey's bio.

FinancialLiteracyQuiz.com Releases 1st Quarter Quiz Results

*** PRESS RELEASE ***

FINANCIAL LITERACY AT A
RECORD LOW DUE TO THE LACK
OF FINANCIAL EDUCATION
Further: Most Consumers Fail Basic Financial Literacy Quiz

FORT COLLINS, CO – [April 7, 2008] – In conjunction with April being Financial Literacy Month, FinancialLiteracyQuiz.com has today released its 1st quarter statistics showing that the average quiz score from thousands of online test takers was just 56.84%, yet a minimum score of 75% is required to “pass.” The majority of consumers nationwide, regardless of age, income or education level, are not able to pass a basic quiz covering such topics as Credit and Banking, Real Estate and Mortgages, Car Buying, Insurance, Taxes, and Investing and Saving for the Future. The online quiz from FinancialLiteracyQuiz.com is comprised of 50 multiple-choice questions, provides an immediate score to visitors with suggested areas of improvement, and is free.

FinancialLiteracyQuiz.com is the creation of Braun Mincher, a successful social entrepreneur and author who is working to bring better awareness to the financial illiteracy epidemic sweeping the nation, and helping consumers at all levels get needed financial education. “Ultimately, the underlying cause of the recent media headlines relating to the Foreclosure Crisis, Stock Market Meltdown, Looming Recession and the like, are directly related to the lack of financial education on the part of us as consumers. If we want to prevent this situation from happening again in the future, we need to make financial education a top priority,” says Mincher.

Some highlights of the results from FinancialLiteracyQuiz.com:

• Only 40% know that their liability for credit card fraud is limited to $50.
• Only 50% know that Property Taxes and Mortgage Interest are tax deductible.
• Only 33% know what “Annual Percentage Rate” (APR) means.
• Only 56% know that the annual interest rate on most Payday Loans is 390%.
• Only 34% know the upper and lower income tax brackets.
• Only 53% know that the long term capital gains rate is 15%.
• Only 32% know what required deductions are taken from their paycheck.
• Only 59% know that the “Rule of 72” is the time required to double your money.
• Only 41% know that most gains on the sale of their personal residence are tax free.
• Only 32% know that a “Roth” type of IRA/401k does not tax the growth (appreciation).
• Only 55% know that the maximum annual 401k contribution is $15,500.
• Only 47% can define “Prime Rate,” and only 38% know what it currently is in the U.S.
• Only 38% know that a “Durable Power of Attorney” allows somebody else to make your healthcare decisions when you are unable.

In summary, the quiz data shows that consumers are not knowledgeable when it comes to everyday financial decisions. Males scored slightly better than females on the quiz with men getting an average score of 58% and women 53%. Those with only a high school education averaged 48%, an undergraduate degree 58%, and a graduate degree 62%. Interestingly, test takers who reported “some college” scored 58%, the same as those with bachelor degrees. Scores noticeably improved with age, either due to better financial education or more life experiences. Those below age 25 averaged 40%, the 26-30 age group 54%, the 31-39 age group 60%, the 40-49 age group 62%, the 50-65 age group 61%, and those over 65 were ironically 65%.

Would you believe that doctors and lawyers make the same financial mistakes as homeless people? According to Mincher, “40% of consumers live beyond their means, half are living paycheck-to-paycheck, and the national savings rate is now a negative number. People are more likely to declare bankruptcy than either graduate from college, file for divorce or get diagnosed with cancer. We need to reverse this trend through better financial education of both adults and students or we face dire consequences in the coming years. Considering the state of the economy along with soaring gas prices, now more than ever, consumers need financial education.”
To further his initiative of better financial education, Mincher is “Challenging” high schools and colleges across the country to make semester-long Practical Financial Literacy Classes a graduation requirement, just like math, English, science, etc. Presently, only 7 states have such a program. Most parents and business leaders are in favor of this initiative, but some in the academic and education communities have pushed back with a multitude of excuses. Not easily taking “no” for an answer, and in the same entrepreneurial fashion that made him a success in business, Mincher is forging ahead with his project, and subject to certain conditions, is not only offering to provide the curriculum, but also offering a textbook for each student at no charge.

# # #

About Braun Mincher: A young and successful entrepreneur who had the ability to "retire" several years ago at the age of 30, Mincher is a self-made multi-millionaire, even though he started with nothing and dropped out of college to grow his first business. He is currently traveling the country to further his passion of better educating ALL consumers, and not just the business or financial savvy, on the topic of Practical Financial Literacy.

Mincher is a recognized expert in the field of personal finance who is frequently interviewed by the national media, and his credentials include being both a licensed real estate broker and a licensed mortgage broker, in addition to previously being named “Entrepreneur of the Year” by Ernst & Young / Inc. Magazine. He is also the award-winning author of The Secrets of Money: A Guide for Everyone on Practical Financial Literacy, which was released in December and is available from booksellers nationwide.

Delta Sigma Pi Professional Business Fraternity

At a traditional and ritualistic ceremony last evening, I was inducted as an honorary initiate into the national Delta Sigma Pi Professional Business Fraternity. It was a humbling honor to be invited to join this great organization which dates back to 1907 and has more than 250 college chapters and more than 200,000 members. Delta Sigma Pi was organized to foster the study of business in universities; to encourage scholarship, social activity and the association of students for their mutual advancement by research and practice; to promote closer affiliation between the commercial world and students of commerce, and to further a higher standard of commercial ethics and culture and the civic and commercial welfare of the community.

I am greatly appreciative to my friend, and now brother, John Hess of the University of Northern Colorado (UNC) and Shanda Gray, Associate Executive Director of Delta Sigma Pi in Oxford, Ohio for bestowing me with this honor. I now know the "secret handshake" and "password" (I could tell you, but then I would have to kill you...). I look forward to connecting frequently with my new "brothers" across the country! Click here for additional information about Delta Sigma Pi.

Sales of Timeshares a/k/a "Crimeshares"

I was recently in Nevada this past week as part of my nationwide book and speaking tour. Since my events all finished on Friday, my girlfriend decided to travel with me and we spent the weekend enjoying Las Vegas. While we leisurely strolled through the beautiful Venetian Hotel and Casino on the Las Vegas strip, Angela decided to spend some time shopping in one of the luxury stores, and I said that I would wait for her while I relaxed with a cup of coffee by the “indoor river” and enjoyed people watching.

Not more than a few moments later, I was “accosted” by one of the solicitors for the new Marriott Timeshare Resort, which has a booth in the mall part of the Venetian. The solicitor was a nicely dressed older lady with a professional looking name tag and a red blazer. Insofar as I had some time to kill, I decided to play along (I talk about Timeshares on page 185 of my book and have long been fascinated about the sleazy sales process of this otherwise legitimate product). Here is the summary of how our conversation went:

SALES LADY: How much longer are you here for?
ME: Two more days.
SALES LADY: Where are you from?
ME: Colorado.

(Note: She was “qualifying” me. My answers showed her that I was both going to be in Las Vegas long enough to take a “tour” and that I was from out of state, likely meaning that I do not already “own” a home in the area).

SALES LADY: How would you like some free show tickets?
ME: Free? Sure!
SALES LADY: Come look at our list of shows! (She took me over to their counter about 10 feet away and handed me off to the “Counter Lady” who took over while she went back to rope in other people trying to enjoy their Sunday afternoon).
COUNTER LADY: Here are the shows we have tickets for. Some are free and others are only $5 (she flipped through a binder of show brochures).
COUNTER LADY: Where is your “wife?”
ME: I don’t know; she is shopping in one of the stores.
COUNTER LADY: Can you call and have her come here?
ME: No.
COUNTER LADY: Can you sign her up for a tour?
ME: Sure, absolutely. We have that kind of relationship. (sarcasm)
SALES LADY: Who do you work for?
ME: I don’t work for anyone.
SALES LADY: Does your “wife” have a job then?
ME: No. (I don’t have a wife yet, so how can “she” have a job)
SALES LADY: Are you a student in school?
ME: No.
SALES LADY: So, you live with your parents?
ME: No. (Puzzled look on the Sales Lady’s face, and then she walks away again).
COUNTER LADY: Here is one of our brochures. The next available “tour” leaves in 30 minutes. All the ones after that are booked.
ME: How much do the timeshares cost?
COUNTER LADY: We can’t tell you that. This is why you need to allow at least 2 hours for the “tour.”

(Note: When the Sales Lady overheard the talk of a “tour,” she came back and pulled the brochure I was reading out of my hands. She wrote her name on the back of it to make sure that she got “credit” and then handed it back to me).

ME: I read here in the fine print of the brochure that it says I can ask any representative for a copy of the cost and fees disclosure. Can I please see that?
SALES LADY: I don’t know anything about that. Nobody has ever asked. (She walks away).
COUNTER LADY: Where does it say that? I don’t know what you are talking about. I have never seen it.

By this time, I had proved my point and since Angela was done shopping, I was through with my little experiment. As you can hopefully see from above, I answered all of their questions but did not volunteer any extra information. Both the Venetian and Marriott are fine and well respected companies, but why do they tarnish their brand by engaging in such sleazy sales tactics for an otherwise legitimate product? Obviously, there is big money (and commissions) in the timeshare industry. Unfortunately, I have seen the above scenario play out multiple times, and an uneducated consumer is sitting prey.

Why can’t the timeshare people just come out and say here is how our product works: You buy X weeks per year and the cost is X? Timeshares are a great product for some people and I know many who enjoy them, but I feel that consumers should be given all of the facts and allowed to make their own educated decision (not just with timeshares, but with any transaction). Why do they need to entice people with “free” show tickets and make them take a “tour” to get a price? I do not like high pressure sales tactics like these – caveat emptor.

What do you think about timeshares or their sales tactics? Any timeshare experiences (positive or negative) you would care to share?

Warmest Regards,

Braun Mincher, Author, Speaker & Entrepreneur
The Secrets of Money: A Guide for Everyone on Practical Financial Literacy
Visit my Website: http://www.braunmincher.com/

2008 CIPA Book Awards - 3rd Place EVVY Winner

At the annual awards banquet for the Colorado Independent Publishers Association on Friday, March 28th, The Secrets of Money: A Guide for Everyone on Practical Financial Literacy, won 3rd place in the Business/Finance category!

Key West, Florida & Captain Tony

As part of my nationwide book and speaking tour, I was recently in Florida and spent time in both Miami and Key West, the latter being where I wrote a substantial portion of the book when I lived there for 3 months. It was nice to return for a few days to a place that is so special to me. I am also pleased to announce that the "Historic Cigar Alley" store in Old Town Key West is now stocking my book -- technically, I think that this makes them my "Southernmost Bookseller in the United States." If you ever make it to Key West, please stop by and say hello to the owner, Chris -- I will also likely be returning in a couple of months for another book signing.

On the visit to Key West, I also got to meet up with an old friend -- the infamous Captain Tony. At 91 years old, this guy is a true living legend with LOTS of stories who has been friends with Jimmy Buffett for many years. After coming to Key West in 1948 (he was running from the NJ mob due to some gambling "problems"), he ran a bar for many years and was elected mayor in 1989 after 4 previous tries. He now has 14 children and still stops by his old bar occasionally. I met Captain Tony the first night I arrived in Key West back in 2005 and he told me to come see him again once the book was done, which I did on this recent visit as you can see by the photo.

CNBC Interview - Author Manisha Thakor

My friend, Harvard MBA, and a fellow personal finance author, Manisha Thakor ("On My Own Two Feet: A Modern Girl's Guide to Personal Finance" -- Adams Business, 2007) was interviewed today on CNBC Power Lunch. Click Here to see the video. We are both equally passionate about helping people become financially literate, and her book is focused on educating young women. Way to go Manisha!