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.