"Button Batteries" Warning

Do you know what a "button battery" is? Or how dangerous it can be if swallowed? It's aptly named--a small round battery the size of a button and is found in hundreds of children's toys, our remote controls and in those singing cards. You might think that because it's so small, it might not be a problem if a child swallows it--that it might just pass through.  Tragically sixteen children have died from ingesting these batteries, according to the National Capital Poison Center. If the battery becomes lodged in the child's esophagus, it can cause serious injuries in as little as 2 hours.

Children are very curious and often are able to take these batteries out of toys, greeting cards and remotes so tighten all the screws on the battery covers of their toys, put the remote out of reach and be sure to monitor children with the greeting cards. For more information and safety tips on button batteries, go to www.cpsc.gov.

What's Really Scary

Halloween is upon us but here's what's really scary:

• Not knowing how much money is in your checking account before going shopping 
• Not knowing your credit score before shopping for credit
• Believing that the person on the other end of the phone really is your bank and giving them your checking account number
• Sending money to a "company" because they can get you a "work at home" opportunity
• Not knowing where your debit card is
• Not doing your homework to make sure you get the best quality item for the best price
• Being oblivious to the thousands of recalls on household products
• Being under--or un--insured 
• Not saving money for emergencies and retirement

Don't let this Spooky Season scare you as a consumer--Protect and manage your money so you can meet your financial goals. Safeguard your family and home from dangerous products. Enjoy the trick or treating with a peace of mind knowing that you're a Savvy Consumer!

Wanted--Good People with Bad or No Credit??

On several vacations recently, in different states, I have come across car title loan shops, check cashers, pawn shops and this sign at a car dealership. "Wanted, Good People with Bad or No Credit". Clearly the economy is suffering still. This advertisement is meant to entice those of us who have a bad credit score to apply for a loan at this dealership--presumably because they like us (bad people need not apply) and want to help us out. As opposed to the true motive--that they'll charge us exorbitant interest rates and make a ton of money off of us--and then when we miss a payment since we probably shouldn't have gotten into this loan in the first place, they'll repossess the car and start over with someone else. I'm not feeling the love. Using these types of financial services/products is a costly consumer decision. A better strategy would be to get ahold of our finances--create a Spending Plan, spend less than we earn, accumulate some savings--clean up our credit by using some tips from the FTC, get a checking/savings account from a financial institution and wait for a loan until we can get one with an interest rate that favors us. For more info:
FTC "Knee Deep in Debt"
www.mymoney.gov 

!0 Things College Students Should Know

Heading off to college? Here are 10 things you should know before leaving:

1) Where you will get cash from--is there a branch of your bank close to school and if not, get a checking account at a local bank. If you withdraw money from an ATM that charges you out of network fees, you can incur up to $5 in fees for withdrawing that $20.
2) How to check your balance in your checking account online and even via your phone. Knowing the amount of money you have before going out and spending is critical. Set up an alert message from your bank when your account goes below a certain amount.
3) What amount of money is your spending money for the year--whether you had to earn it over the summer, will be working during the school year for it or your parents have agreed to pay a certain sum--figure it out before you leave and plan out or budget what amount that translates to per month/week. Talk with your parents/caregivers on what happens if you run out of money--even if that means, "too bad"--just so you are clear.
4) If you are taking out student loans, how much are you incurring. If it's an unsubsidized loan, can you pay the interest payments while in school which will greatly reduce the amount owed when you get out of school.
5) Are your belongings covered by insurance, either a homeowner's insurance from back home or a separate policy for college students/renters insurance.
6) Do you have health insurance and what does it cover/cost. Can you get prescriptions filled at school or do you have to go to a local pharmacy? Can you use your insurance at a local urgent care facility in case the school health center is closed?
7) What exactly does your meal plan cover--if you don't use all the meals in a semester, what happens--does it roll over to the next semester or can you use those meals as points?
8)  You can't get a credit card until age 21 unless you have a co-signer or ability to pay. If you have one--whether your own since someone co-signed with you or because you are listed as an authorized user on your parents' card, figure out how what will be charged on the card, who will pay and what happens if you charge an amount that it not agreed upon?
9) Safeguard personal information--ID Theft does happen to college students. Check your credit report to make sure everything on it is accurate.
10) Learn to handle your finances now. Try to save some money and of course call home often.
For more information:
www.mymoney.gov
www.youngmoney.com
www.federalreserve.gov
www.ftc.gov

Plan for Auto Repair

Whether you have a new car or are trying to eek out a few more miles from an older one, you can bet that you will have auto repairs in your future--it's just a part of car ownership.  Next to your home, your car will be one of your larger expenses in your Spending Plan but there are ways to reduce the costs. First, pick your repair shop carefully and before you have any problems. Start with recommendations from neighbors, friends and family. Check on the repair shop's accreditation and complaint records.  Call and ask how much an oil change is for your vehicle--compare that price with other shops. Be sure to get a total price--one that includes shop fees and waste removal fees. Do the same for an Auto Body shop and decide on a towing company or a towing membership organization. Check your car insurance policy to see if towing coverage is included.

When you need repairs, tell the shop what the problem is, "the car won't start" not diagnosing it yourself "I need a new battery".  Ask for a written estimate and for the old parts back. You may need those parts if there is a dispute about the repairs. Keep a written log of repairs to your car and make sure you are following the manufacturer's recommended maintenance schedule. This will help keep you and your car on the road. For more information, see the FTC's "Taking the Scare Out of Auto Repair".

Make $1000 Stuffing Envelopes--Seriously?

You've probably looked at billboards, telephone poles or received emails that promise you can earn "Extra Money Working From Home".  I even had flyers and business cards placed on my windshield. Were you ever intrigued enough to call the number? If you, like many others, did-you probably talked to a very energetic person who tired to convince you to send in a small sum of money to learn about this "amazing" opportunity. If you are tempted and justify the amount by saying "it's only $9.95" STOP. First, real job opportunities do not happen like this. Second, it's illegal in many states to collect money upfront for a job opportunity. They may call it a registration fee or a fee for the start up materials but however they word it, they'll still charging you for this work at home job and you will get next to nothing in return. The reason they charge a small amount is because they hope you won't complain to consumer protection agencies who will investigate and shut them down. Even though it may be a small amount, it's not worth losing your hard earned dollars to a work at home scam. For more information, see the FTC's "Work At Home Schemes" publication.

Gas Prices Messing up Your Spending Plan?

I'm guessing that many people are feeling the pain of the increase in gas prices--I know I am. While I feel that I can't control the price at the pump, I do need to find ways to cut expenses in other areas to make my Spending Plan balance. Here's some ideas that may help:

• Make sure your car is well maintained and your tires are properly inflated--to help with gas consumption
• Combine and plan your driving trips to minimize the miles you have to drive
• According to Consumer Reports, not using your air conditioning and rolling down your windows does NOT save you any money on gas
• Use coupons for groceries, cosmetics and dining out--if the coupon makes sense for your buying habits--getting $1 off of cereal doesn't help if you have to buy 4 boxes of it and you won't use that much cereal in  a month
• Don't feel obligated to get everything on your child's "back to school shopping list". I have enough graph paper to last 10 years--only as scrap paper now since my kids are out of school and never used the "required" amount of graph paper.
• Don't buy bottled water at a convenience store if you can avoid it--if using your own water bottle doesn't work for you, buy water by the case--you can get it down to 13 cents a bottle vs $1.59 at most convenience stores. (Please recycle)
• Buy at bulk stores, again only if it makes sense for you--will you really use that huge jar of mayo which you got a great price--but will go bad before you can consume it?
• When cleaning out your garage or basement, consider have a yard sale to earn some extra cash and check for scrap metal that you can sell instead of dumping in your community's waste facility
• Check the cost of your vitamins which can be costly if you buy them at pharmacies or grocery stores--check for them at the bulk stores

Make the topic of money saving ideas the subject at a family dinner--you'd be surprised what ideas everyone will have. You could even adopt the practice that some local governments/businesses are doing--if an employee (family member) comes up with a viable idea to save money--they get some of the savings--that ought to encourage some creative ideas! For more money savings tips, see the Consumer Federation of America's website.

Memorial Day Shopping=Good prices?

Why is it that we see the words "On Sale" and our hearts beat faster, our brain shuts down and our wallets open up? As with all major holidays, there are a rush of "Memorial Day Sales" ads, claiming the lowest price on that grill, amazing patio furniture at rock bottom prices, tremendous savings on outside garden equipment and last minute travel deals. Retailers are adept at knowing what will push our buttons and make us buy--feeling like we got over on them and got that item at an amazing deal--one that we will want to brag about to our friends and family. Even worse, there's nothing better than a store that's going out of business-unbeatable deals there!   While I am the first to admit that I admire the advertising industry--I actually watch the commercials on TV--I also know that the tricks they are using to get consumers to buy. My advice to consumers:

• The word "Sale" has very little meaning in today's world
• Do your own comparison shopping to see if that price is "rock bottom"
• Buying something, on sale or not, is only a good value if you can afford it--buying something because it's an awesome price but paying for it with a credit card defeats the savings

So, instead of hitting the stores this holiday weekend in pursuit of that "Sale" price, spend some time learning about the history of Memorial Day and put the money you didn't spend into your emergency savings account or pay off some credit card debt--you can brag about that to your friends and family and it will have longer term effects on your financial security than that new grill!

DIY Home Improvements

I'm in the midst of yet another home improvement project with my husband. We've had many do it yourself projects in each of our homes--painting; wallpaper stripping; plumbing; carpeting; fences; bathroom caulking and we're not that handy dandy (to be fair, my husband is much better at figuring out things than I am so I'm just the helper on our projects).  I'm a big fan of hiring a licensed contractor to do your work (ck my Home Improvement posting) if you can afford to. We do these projects ourselves, not out of love for doing the work, but solely due to economics--home improvement funds take away from other line items in our budget so, we're at it again.

I've learned that you really have to do research before any project--techniques, choices, costs and quality of materials vary greatly. The good news is that there are a lot of resources out there for those of us who do not have home improvement genes handed down from generation to generation.  YouTube videos are an awesome source of research material and are great at showing how to do a part of a project.  Just be sure to watch several on the same topic in case one well-meaning video leaves out a particular detail--probably because the detail is so obvious to the person making the video but not at all obvious to those of us "not handy dandy" people. DIY Network is a great help along with HGTV.  Many home improvement stores also have videos on their sites to teach you how to do a project as do some sellers of building materials on eBay. Sometimes there are local classes you can take.  Check on community thrift stores or local community classifieds that sell building materials to save money. Ask about discontinued or "closed out" styles/colors. Make sure you invest in the tools needed to do the work--consider that a part of the project budget which will then improve your inventory of tools that you will, no doubt, need in the future.

Always plan to:

• Spend a bit more money than you estimated
• Take a lot more time than you estimated
• Need more trips to the local home improvement store than you estimated

Most importantly, do these projects with a sense of humor and take pride in your accomplishments.

Do you REALLY know who's on the other side of the phone/email?

The FTC reported on its Top Ten Consumer Scams of 2010 and for the first time, "Imposter Scams" made the list. Have you ever received a phone call from the "IRS" claiming that you've won a sweepstake but you have to send in the taxes first? An email from a neighbor or relative who finds themselves in urgent trouble and needs you to wire them money? A letter from a well known company such as Walmart, claiming you've won something but have to pay for the shipping? These are all scams designed to pry some of your hard earned dollars out of your hands. Keep your "scam" radar up by remembering that you really do not know who's on the other end of the phone or the true sender of an email/letter. Never send money for something you have "won" and check out any request for help from a relative/friend before helping. For more information on Imposter Scams, check out the FTC's Consumer Alert.

Guaranteed Scholarship Help--Not So Much

March brings many things--March Madness Basketball; Snow; Spring; and College Decisions. Many High School Seniors and their families are sorting through the college acceptances, making that important decision of where to commit to attend. One factor of where to attend is the cost and scholarships can play a large role in the end cost of the school. Unfortunately, there are unscrupulous companies out there preying on prospective college students--claiming that they can guarantee scholarships for them and that they have access to scholarships that no one else does. All the claims lead the student to pay the company for this "assistance" but does not lead to the student getting these "guaranteed" scholarships. The Federal Trade Commission has great info on scholarship scams on its website. Basically, there's no reason to pay any money to get a scholarship. Research possible scholarships by checking College Board , your school's Counseling Center, your elected officials, the prospective college's Financial Aid office and FinAid's website. I even found a scholarship opportunity for my son on Twitter! Put your hard earned money toward tuition, not scholarship scams.

Leaping Forward

Tonight we will move our clocks ahead one hour--here are some other ideas on what we can leap forward to:

• Taking time to think about what our financial goals are and making a plan to meet those goals
• Comparison Shopping--researching an item for reliability and price before buying
• Knowing how much money we have in our checking account at all times
• Creating a Spending Plan--and checking it every week
• Staying away from deals that seem "to good to be true"
• Checking used items that we buy to make sure they haven't been recalled
• Minimizing our risk by checking our insurance policies
• Creating an Emergency Savings Fund
• And, of Course, Changing Those Batteries in Your Smoke Detector!

Happy Daylights Savings!

Free Tax Prep--Really!

You've probably received your W-2's or income statements from your employers by now. If you earned less than $49,000 last year, you could qualify for free tax preparation. There isn't much in life that is free so I suggest you take advantage of this legitimate offer. This free tax preparation is offered by "VITA" sites. VITA stands for Volunteer Income Tax Assistance and is a program offered by the IRS and local organizations.   Volunteers are trained and certified. They know how to prepare basic tax returns and will check to see if you qualify for certain tax credits. Your return can be filed electronically and you can receive your refund quickly. There is no need to pay anywhere from $75 to $150 to a for-profit tax preparer, along with paying to receive your refund "rapidly" often at another cost of $100 or more, depending on your refund amount. Save yourself that money and use a VITA site near you. To find a VITA site near you, call 1-800-906-9887 or go online to the IRS VITA website. In Maryland, check MD CASH Campaign's website to find a location. They are a non-profit organization--whom I work for--full disclosure--whose partners operate VITA sites. Now that you are saving some money on tax preparation, stay tuned for ideas on where to put that savings so it can grow for you!

Spending Plan aka Budget

Most people shudder when the word "budget" is mentioned, evoking thoughts of having to track what you spend, stay within your financial limits and get discouraged when you've spent beyond the "budget". So, instead, most of us in the financial education world are using "Spending Plan" now. We're all going to spend, so let's try to plan our spending. It's the same end result we're aiming for, so use whichever word makes it more pleasant for you. Until we determine what our income is, what our fixed expenses such as housing, utilities, and transportation amount to and prioritize our non-fixed expenses, we are not really in control of our financial health. Being in control means we can meet our financial goals and have choices--where to live, what kind of car to drive, what types of food we can eat and a major factor for me--where I can vacation. Going through a month just spending our income without planning often leads to "too much month for our money". We've all been there and it stinks--way too stressful to keep on that path.

Creating a Spending Plan is easier now than ever--there are many online resources and free tools to use. The Federal Government's website, mymoney.gov has some tools; mint.com is a great resource and bankrate.com has a free downloadable budget (don't wince at the word). Poke around at various sites to see which one works for you.  You could create your own in an Excel Spreadsheet or with software packages such as Quicken. Once you have your Spending Plan in place, be sure to CHECK it--every week at least, to make sure you are on track. It's like buying that treadmill so you'll get in shape and then never using it--if you don't use the Spending Plan to determine what to spend money on, you will not be in control of your finances.

Getting financially healthy is not always a fun thing to do ( I still get annoyed when my Budget/Spending Plan does not allow me to vacation in a place that I want) but in the long run, brings a sense of peace that is invaluable.