"Run My Numbers"

I received our homeowner's insurance bill and a voice went off in my head--the one that says "That seems expensive"so I decided to pull out last years bill and sure enough, it was a few hundred dollars more. The "I don't have enough time to deal with this" part of me said let it go--everything is costing more these days. Luckily the "If I saw a few hundred dollars on the street, I'd pick it up" part of me decided to call the insurance company. The customer service representative politely offered to "run my numbers". I had no idea what that meant but hoped it meant review my bill to see why it increased. Much to my surprise, she came back, apologized for putting me on hold and said that she could lower my deductible and decrease my rate by $700 a year! I almost couldn't respond, I was so stunned. the words "run my numbers" are forever stuck in my head. Try calling your insurance company and ask them to "run your numbers"--hopefully, you will be as pleasantly surprised as I was!

While you're at it--be sure to check your policies to make sure you have enough, and not too much, coverage. Here's a previous blog posting to help.

Back to School Shopping-Ways to Save

It seems like stores start Back to School Shopping earlier and earlier--as if they don't realize that kids do not want to think about going back to school in July--summer isn't even half way over yet! As annoying as it is, the reality is that you have to get school supplies by early August or it's all gone. But you don't have to break the bank to do so. Here are some ideas to spend less:

• Know the prices and shop the sales that really are a good deal
• Go in with another family and shop in bulk
• Reuse last year's stuff--you don't have to buy a new backpack every year
• Don't buy everything on the suggested school supply list--your child is probably not going to use 2 packs of graph paper anyway
• Buy during your state's "Tax Free" week if they have one
• Consider buying online--more than likely if you go into a store, you'll buy more items
• When your child is old enough, give them a budget amount for supplies--they can be very creative on where to cut back
• Use paper bags from the grocery store to cover books vs buying the cloth book covers--your child can decorate the book cover too
• Wait until late October or November to buy the fall clothes--they'll  be on sale then

You Never Told Me That!

If you have a student in your house heading off to college in the next month, you've probably figured out how to pay for college (or at least the first semester) and are in the midst of getting dorm supplies. Unless you've been through this before, you might think that you're done--all the boxes are checked. However, there are some conversations you still need to have with your student--that involve finances and might be difficult conversations:


Who pays child’s spending money? If you are giving the student their spending money, be clear on how much, how often and what happens if they want more. If you are requiring the student to supply their own spending money, help them decide how much they need--are they earning it over the summer or are they working during school? Either way, help them create a budget.
What happens if child fails a class? Be clear on expectations--is there a certain grade point that is expected if the parent is paying for college? How will the parent know what the grades are (only the student will have access to their record)?
How many years can child attend college? If the parent is paying for school, is a 5 year plan ok--or 6...7?
Who pays for Study Abroad, Summer Classes/Internships? Most study abroad programs will cost additional money beyond the normal tuition costs--into the thousands more. Summer classes can cost $1000 for one class. Some internships which offer college credit can cost thousands of dollars. Be clear on who is responsible for paying for these.
What happens if child gets into trouble—Speeding tickets, DWI, Citations etc? Be clear on who pays for lawyer's fees and what if any action will result, i.e. car being taken away, student has to return home.
What about Spring Break? Who pays for Spring Break?

Dealing with your child leaving for college can be an emotional time, full of exciting times getting ready for their new life. Having conversations on the above topics will help to ensure that all financial expectations are clear and will avoid having to deal with discussing it while they are at school in the midst of one of the situations.

Is Your Pet in Your Spending Plan?

I am unabashedly a pet lover. We currently have 3 dogs, a cat and fish. We have had in the past: hamsters; guinea pigs; pet rats (don't ask); bunnies; a lizard; multiple fish; hermit crabs and a beloved first dog. While I truly value the "invaluable" impact these animals have had on our lives, it took me a long time to realize how much they cost and to plan for those dollars. Not including pet costs in your Spending Plan will derail the plan quickly. Take a look at how much pet cages, food, accessories, toys and vet bills have cost you in the past.  Then add the line item in your Spending Plan for pets. It wouldn't hurt to add another $20 to it and save that money up for emergency vet bills--which are not an "if" but a "when". Then see if there are any cost savings measures you can take. I make my own dog treats and get flea/tick med's from Costco. I encourage responsible pet ownership which includes ensuring you have the money needed for it (along with the time and patience!)

Homemade Dog Treats: Combine 1 1/4 cup of grated Cheddar cheese, 1/4 lb of softened butter, 1/2 cups of whole wheat flour, and 1 crushed clove of garlic until well mixed. Add mile to form to dough into a ball. Cover with plastic wrap and chill for 30 minutes. On a floured board, roll out the dough to 1/2 inch thickness. Cut using cookie cutters into whatever shape you like and bake in ungreased pan at 375 for 15 minutes. Keep refrigerated after cooking. (recipe adapted from Family Fun magazine)

How an Email Can Save You

No one really wants more emails to read through--but here's one that could protect your home and possibly your life. The US Consumer Product Safety Commission is the government agency in charge of investigating the safety of thousands of consumer products and protecting us from products that could be a fire, electrical, chemical or mechanical risk. According to the CPSC:

 "The CPSC's work to ensure the safety of consumer products - such as toys, cribs, power tools, cigarette lighters, and household chemicals - contributed significantly to the 30 percent decline in the rate of deaths and injuries associated with consumer products over the past 30 years."

You can easily sign up for their email alerts on recalled products at www.cpsc.gov. There are typically 1-2 emails a week. You can quickly glance at the item being recalled and delete it if you don't have that item. If however, you have a recalled item in your house, which could cause a fire or injury, you now have the knowledge you need to avoid that risk.  For example, a recent recall involved a folding step stool where at least one person broke a leg when the stool broke. Don't be a victim of a preventable injury--sign up for the email and protect your family and home.

Frugal Gifts for Mother's Day

While flowers and gifts are traditional ways to show your appreciation for your mother on Mother's Day, there are alternatives to spending big bucks and shower her with things that most most Mom's really want:

1) Weed the garden for her (make sure you know which are weeds first)
2) Wash and vacuum her car
3) Let her sleep in
4) Find that book or magazine that she's been trying to find time to read, sit her in a comfy chair and let her have that hour to read
5) Take her to a museum
6) Show her how to use a feature on her computer that she never had time to figure out
7) Fix--and clean up--a nice dinner
8) Find a nice garden in your area and surprise her with a picnic lunch there
9) Find a new app for her phone and show her how to download it
10) Write her a card, poem, story about a funny memory you have of her--us mom's are saps for these and will be tenderly reading them for years!

Kids and Sports--ROI?

Kids playing sports--what's not to like? Many parents encourage their children to get involved in sports for the following reasons:

• Exercise
• Life long appreciation of being active
• Team work
• Building confidence
• Good sportsmanship
• Competitiveness
• Keeping them busy with sports keeps them away from other potentially negative activities
• Potential for college scholarships

While all those results from participating in sports are positive for children, I urge parents to take a minute to evaluate all the aspects of sports to make sure that both the level of participation is healthy for their child and the costs involved fit within their spending plan.  I know several parents whose children are on a team that competes regionally, meaning that they have thousands of dollars in expenses with travelling to these competitions on top of fees they have to pay to the team. Added to these costs are the equipment their own child needs and the required fundraising for team expenses. These costs are not within the spending plan for these families and they are now facing the dilemma of either going into debt for the costs or telling their child they can't go to the competitions.

Additionally, it's critical to evaluate how your child is doing with their sport--is the coach a good fit for them-are they encouraging and positive? Is your child safe playing this sport? Is your child stressed by the experience or enjoying the experience? It's can be difficult to balance the goal of not wanting your child to quit when they're not having "fun" with the goal of your child's positive mental health but it's important for parents to talk to their child if they are struggling with the experience--and be prepared to pull their child out if necessary.

To ensure that playing sports is a positive experience for their child, parents need to take the time to think before jumping into a sport, be realistic as to the expenses they can afford to pay and check throughout the time that their child is with the team, that this is a heathy experience for their child.

For more info: Safe Kids; President's Council of Fitness, Sports and Nutrition

It's THAT time again--TAXES!

Most of us are in the midst of getting our taxes done--collecting the necessary documents, deciding on how to get them done and either eagerly awaiting for a refund or dreading the amount due. I have vivid happy memories of getting a tax refund and even though financial experts would say that you're better off not getting a refund and having that money throughout out the year-- I still miss that thrill of unexpected money hitting my checking account. Sadly, I haven't gotten a refund in years so am trudging through the not so pleasant process of determining how much I owe and deciding how to file.  In the past I've filled out the paper forms, used TurboTax  and lately hired 2 different CPA's.

First, if you qualify, I highly recommend using a Volunteer Income Tax Assistance (VITA) site where you can have your taxes prepared for FREE. The Tax Preparers are volunteers who have passes a rigorous certification program and know what tax credits to look for. If you have a bank account, you can get your return directly deposited into your bank account in a few days. You can even jump start your savings goal by purchasing a savings bond with your return, or a portion of it. Check out VITA sites in Maryland through a client of mine, MD CASH Campaign.

If however, you do not qualify for the VITA sites, you have to decide whether or not to do your own taxes or hire someone. If you choose to hire a tax preparer, some states require them to have a license, so start with looking for the license first. Get references from friends and family and compare pricing from 2-3 preparers. I received a surprise last year from a CPA who quoted me one price for the taxes but gave me a bill for $200 more than the quote--certainly resulting in my not using that one again. I chose to use a CPA because I am a consultant and felt that doing my own taxes would be above my level of tax expertise. I also detest that box in the corner of various tax software that goes up and down with the amount that I owe or am due a refund--usually a very tense and stressful process until the number is finalized. However, after doing some research this year, I don't feel it was worth the price--original quote or inflated end cost--of using a paid tax preparer and am up to the challenge of DIYT (Do It Yourself Taxes).

I started with the easiest--our daughters tax return.  She's a college student who earned a meager amount but did pay federal and state taxes. I used the free IRS efile site from TaxAct and found it pretty straight forward and easy to understand.  The one question I couldn't find the answer to on TaxAct, I found on the IRS website. Total cost for hers was $14.95 because I paid to have the state filing prepared by TaxAct--I could have saved that money by going to our state website and filing there but felt $15 was worth it to not re-enter in the information.  My husband and I have spent 90 minutes and are almost done with our taxes through TaxAct for a cost of $54.95.  Fortunately, the amount owed is what we anticipated so the stress level here is well below the Tornado level of years past. Here's an interesting CBS news comparison of tax software and an accountant.

Does Your Valentine Have a Emergency Savings?

February is a good time to look at your relationship with your significant other and discuss your financial goals--not romantic granted, but an important part of the relationship.  Most couples may have a wide range of:

• Money Experiences--one may have been raised in a frugal family with all members contributing to finding ways to spend less money and the other raised with no discussion of finances one way or the other; 
• Money Habits--one may have a habit of giving generous gifts at the holidays and one may have a habit of being generous with extended family members throughout the year;
• Money Values--one may place a high value on giving to savings for the kids' college fund and one may place a high value on the style home they live in.

What needs to be discussed, often, is the joint financial goals and how their experiences, habits and values help or hinder those goals. Taking time to calmly discuss your goals and the steps needed to reach those goals will help alleviate those sometimes stressful conversations around money. Ck out this YouTube video  on how romantic an emergency savings plan can be!

Credit (Re) Building Tip--Secured Credit Card

Sometimes I think the "American Dream" in today's world is having a good Credit Score.  A Credit Score, which is based on information on our credit reports, determines if we get a loan, what interest we pay, our car insurance rate in some states and perhaps unfairly-whether or not we are offered employment.

One tip to either build good credit or rebuild credit is to get a secured credit card. Most banks and credit unions offer them. Basically, you take the minimum amount required, often $250-$300 to the financial institution and pay a fee for the card. The money is deposited into an account--you don't touch it and the financial institution doesn't touch it. That's what makes it different from a debit card that is connected to your checking account. Then you get a credit card with a spending limit of the amount in the account, without the option of going over the limit. That is what makes it secured--the financial institution has no risk--if you violate the terms of the agreement such as running up purchases on the card and not paying, then the financial institution can take the money out of your account and cancel the card.

The way a secured credit card helps to build your credit is that all the activity on the card is reported to the credit reporting bureaus on your credit report. If you manage the card well--pay on time and keep your balance under 30% of the available credit, it will help you positively build your credit. For a comparison of secured credit cards and more information, check out Consumer Action's Secured Credit Card Survey.

Joining A Health Club?

It's that time again--New Year's resolution time--if you're like thousands of other Americans, you might be thinking of fitness resolutions and contemplating joining a Health Club. I admire your goal of working out and encourage all of us to be active and healthy.  However, it's staggering how many consumers buy a gym membership with the good intention of using it but end up dropping out months later and spending hundreds of dollars for something they don't use. So before you sign that contract, take a few minutes to complete this Checklist:

1. I've checked my Spending Plan and I can afford the monthly fee
2. I've checked to make sure the Health Club/Gym is properly licensed
3. I've checked with my local consumer protection agency and the Better Business Bureau to see if there are any complaints 
4. I talked with current members to see if they're satisfied
5. I walked through the gym to see if the equipment is all working and the environment is clean
6. I have reviewed my calendar and scheduled work out time to make sure I will use the membership
7. I have read the contract and all the services mentioned by the sales staff are included
8. I have checked the cancellation policy

If you've completed the Checklist and you're totally satisfied that you will use the Health Club to help meet your fitness goals, then get going! One more note--try to avoid signing up for automatic payment for your membership fee. Those automatic payments may be challenging to stop if for some reason, you have a dispute with the company.  For more info, check the FTC's Health Spas: Exercise Your Rights