Here are this week's picks for the top three pieces of financial news and advice:
Tougher screening for new hires
Personality tests are raising the bar for job seekers, said Lauren Weber at The Wall Street Journal. The popularity of automated pre-hire tests is surging, with eight of the top 10 biggest U.S. private employers now using them to assess applicants. While early-generation tests measured only a "few broad personality traits," advances in computer modeling and statistical analysis now allow employers to "appraise everything from technical and communication skills to personality and whether a candidate is a good match with a workplace's culture" — all in a single sitting. Advocates of the billion-dollar testing industry say that "more precisely matching applicants with jobs leads to longer, happier careers." But critics insist the tests are just another burdensome hurdle in an already challenging job market. If a company requires a personality test, "I just don't apply," said Patrick Corbett, a 46-year-old tech support worker. "I don't feel like wasting another hour of my life for a job I won't get."
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Capitalizing on good credit
Don't let a good credit score sit idle, said the editors of The Huffington Post's personal finance section. Once your score hits 661 for "good" or 781 for "excellent," you need to put it to "effective use." For starters, you may be eligible for a zero-percent interest rate on balance transfers, so now's the time to apply for new cards to more easily pay off old debt. And with home-loan interest rates at historic lows, good credit might also allow you to "lock in a much lower rate" on your mortgage through refinancing. You can also save money on car insurance, as most coverage plans "are actually partially tied to your credit score" — insurers use that data to help "determine the likelihood that you'll file a claim."
Teaching kids to bank smart
When it comes to kids and money, transitioning from a piggy bank to a savings account is a big step, said Beth Pinsker at Reuters. "Financial experts say it is best to start with a trip to a bank." When choosing which one, don't bother worrying about interest rates — "you're not trying to grow their money as much as grow their habits" — but do try to look for low fees. If your child begins earning taxable income, try to move it into a Roth IRA. That $1,000 put away now will have grown to nearly $30,000 when your 15-year-old is 65. Convincing teens to part with their earnings may prove a challenge, but those "teachable moments" will pay off.
