Kick Start Your Savings

June 27, 2010

Kick Start Your Savings is the summer program for Central Iowa Saves. To learn more, go to www.centraliowasaves.org.

For beginning and more advanced savers, nothing is more important than the emergency fund. As the cornerstone of your savings plan, an emergency fund is your protection against unexpected, but inevitable, expenses.

Step 1- Figure out your goal & a place to save. Having an emergency savings fund may be the most important difference between those who manage to stay afloat and those who are sinking financially. That’s because maintaining emergency savings of $500 to $1,000 allows you to easily meet unexpected financial challenges such as a car repair or medical bill and avoid high interest, short-term loans. With your emergency fund goal in mind, decide where you want to save it. Do you need to open a savings account? Do you want to add to a savings account you already have? Determine your goal and where to keep your emergency savings.

Step 2 – Save automatically. Have a portion of your paycheck, as little as $50 a month, transferred automatically from your checking to savings account. Individuals who save automatically are more than six times more likely to be successful long-term.

Step 3 – Track your progress. By enrolling as an American Saver, you can utilize the America Saves Savings Tracker for free to record deposits and monitor your progress. If you’re not sure where to find the money to start saving, cutting down expenses can be easier than you think. Institute a “no-spend day” and for each dollar you don’t spend, add to your emergency fun. Stay tuned for more ways to save!

Leave a Comment » | Money Saving Tip, Teachable Moments | Tagged: | Permalink
Posted by moneygodmother

Is Online Banking Safest?

March 17, 2010

Online banking is convenient, efficient, and perhaps safer than writing a check at a store…if you take a few safety precautions.

• Use unique passwords. Change them often.

Don’t use your address, social security number, telephone number or other easy-to-remember but quick-to-decipher passwords. If you have many passwords, make certain your written list is protected. There are also software programs that will encrypt, rotate, and keep track of your passwords.

• Beware of phishing.

Watch out for emails asking you to verify accounts or click a link and add personal information. Just because the email or website contains the logo of a legitimate company, doesn’t mean it’s okay. You may have received a phishing email. Do not respond to “click on the link”. Instead, call your bank or credit card company to verify.

• Use anti-virus and firewall software protection.

An unprotected computer is vulnerable. A digital thief can access your computer and download important personal data. Only use a computer you trust. A public computer may have keystroke recording software installed to collect passwords of unsuspecting users.

• Keep passwords private.

Never save passwords or PIN (Personal Identification Number) on a public computer. Never give friends your password to log on a website. Keep password reminders/hints private.

• Sign off and empty the cache.

When you finish any on-line banking session, always logout. If you don’t, someone could access your account through the open connection. Emptying the cache, or clearing your history, deletes the web addresses you just visited.

• Beware of public connections.

Even if you access secure websites from a public wifi system, your information is not protected. Immediately call your bank/credit union and change your password. When traveling, turn off the file sharing capability.

• Look for https.

After logging on to a secure banking website, you should see a URL that starts with https.  Having http is not secure. You might also check for a Verisign logo (or competitors) somewhere on the page. You can usually click these logos to learn more about their security.

Leave a Comment » | News & Views, Teachable Moments | Permalink
Posted by moneygodmother

What to Buy Kids for Holidays?

November 22, 2009

A grandmother once asked me what else she could give her grandchildren instead of savings bonds.  She wanted to start their investing habits…

She should consider starting with stock in American companies. There are several that kids would know and enjoy, including those in the food and entertainment industries. You would recognize companies such as Disney, Nike, Wrigley gum, Mattel, Microsoft, Pepsi, Coca Cola, Harley Davidson, burger King, McDonalds, Wendys, Kelloggs, Sara Lee, Yum! Brands, and more.

A small investment in the stock market while grandkids are young can pay big dividends, and maybe pay for a college education. While you might make the initial investment, you are also starting the learning process for grandchildren.

You can buy stock in small amounts. Some good places to start small accounts are:

www.sharebuilder.com

www.oneshare.com

www.buyandhold.com

If you have your own broker and account, you can ask your broker to help start a Uniform Gift to Minors account for each grandchild.

You can also start a DRIP (Dividend Re-Investment Program) account directly with a publicly traded company. A DRIP offers another way for your grandchildren to make contributions of their own too, even as little as $10 or $25. Look for information on companies that do DRIPs at www.dripinvestor.com which has a DRIP starter guide with helpful information.

When you buy a stock, you can order the actual stock certificate to present to your grandchildren, or you can leave the stock shares in the account with the broker (in street name). If you get the certificate, be sure to keep it in a safe place (it’s as good as cash). If you want more ideas on saving and investing for kids, there are free downloads at www.moneygodmother.com.

You should learn which stocks might be good investments by researching them at your local library Remember there is risk with reward, and that a great past performance does not guarantee a stock’s future results.

Leave a Comment » | Investing Lessons, Teachable Moments | Permalink
Posted by moneygodmother

Develop a Smart Holiday Spender

November 20, 2009

Spending comes naturally for most of us, and holiday shopping is the perfect learning moment if you want to teach kids that buying decisions should involve time to think and evaluate. That’s why it’s called holiday shopping and not spending.

1) Follow Santa’s lead: Make a list and check it twice.

Shopping with a list is more efficient, and keeps us on track…and on budget. Kids (and some adults) might even go so far as organizing by the envelope system. Just label envelopes, one for each person you want to give a gift. Put the amount to spend in each envelope, and on the envelope write individual gift ideas, prices and places to purchase. Then, when purchased, place the receipt in the envelope.

2) Remember, It’s the thought that counts.

Yes, gifts cost money, but putting a little thought into what Aunt MIllie likes means more than cruising down the aisles to quickly pick up the latest and greatest. In fact, your friends might be more impressed that you focused on something special for them than if you spent a lot of money. So when kids have small sums for shopping, encourage thoughtful gift-buying so money will stretch farther.

3) Detective skills prove profitable.

Teach kids to plan a strategy: dig for coupons and ads (newspapers, websites, Twitter, store flyers) to find discounts and the best prices for items. Holiday shopping (and after) is a time to find discounts and sales. And actually, scouring the ads and planning the shopping trip can be half the fun.

4) Don’t by shy; be resourceful and speak up.

Newbie shoppers (and most kids are) gradually acquire negotiation skills. Help your kids learn to interact with clerks. For example, don’t be afraid to ask:

• if there is free gift wrap, which saves time and money.

• if the retailer will match the price of a competitor’s ad.

• if there is a gift with a purchase.

• if a discount or coupon can be applied.

• if the sals clerk can check the chain’s other stores if your desired item is out of stock. Items can often be located and shipped free.

5) Score TOP points: Timeliness, Originality, Presentation.

You don’t get many kudos if you buy several friends the same token, are late in giving or don’t wrap the gift. Sometimes, it’s the little things that count, things that don’t cost a lot of money.

6) And speaking of originality…Custom-made can be awesome.

Nothing says “I value you” as much as spending time to make something for another person. Some ideas:

a-Find a soup or cookie/bar recipe, buy the dry ingredients and make mixes. Fill and decorate glass jars and attach the recipe.

b-Get a flower pot and plant an herb, flower bulb, or seeds. Or, fill the pot with gardening delights (seeds, bulbs, fertilizer stakes, gloves, small tools, labels).

c-Use websites and find interesting recipes. Make a personalized recipe book.

d-Collect special photos and arrange in an album or collage frame.

e-Start or make a journal of “Memories with My Friend”.

f-Find a small basket or tin and fill with someone’s favs (teas, coffees, candy, lotions, sticky notes & pens, hair accessories, baseball cards).

g-Crafty kids can create bead jewelry, weave a simple scarf, stencil bookmarks or book covers, paint bags or memory boxes (not recommended for the craft-challenged or very young).

h-Make your own wrapping paper or cards to go with a purchased gift.

i-Make home-baked goods (breads, candies, muffins, cheese ball, chocolate-covered pretzels, popcorn balls.

j-Recycle something (dip candles by melting old crayons, collect pine cones and make a wreath, make a potpourri and fill a basket, repaint a flower pot or picture frame).

Not so crafty?

• Create a coupon book, redeemable for babysitting, yard work, kitchen clean-up hours, even hugs.

• Customize a calendar using a computer template (great way to remember birthdays).

• If you plan piano or another instrument well, record your play and make a CD (what grandparent won’t treasure that?).

• Make a tape recording as you read favorite storybooks (great to give young siblings).

7) Haste makes waste, especially last-minute shopping.

It’s frustrating when shelves are empty, crowds are rambunctious, and time is running out. Don’t try to cram in your own shopping errands, so that it becomes a miserable experience or feels like a burden when your kids deliberate about what to buy.

Shopping is a great learning moment: you want to impart that decision making involves time to think and evaluate.

2 Comments | Money Saving Tip, Teachable Moments | Permalink
Posted by moneygodmother

Homecoming Season-Teachable Moment

October 7, 2009

I have nephews (and nieces) just beginning to go to high school dances. Their astute parents understand that date etiquette is a big deal that can get expensive —and it can vary by school and community.

Of course, Mom and Dad may or may not be privy to who gets asked. But when it comes to the money side of dating, it’s best to give young men a few pointers up front.  So…before the big Homecoming weekend, teach them…

1) Expect to pay.

Yes, asking someone to Homecoming is considered a date—not just hanging out or “going out.”

2) Figure out how much money you need.

There’s a corsage/flowers, dinner, dance tickets, gas and a car wash, photos during the dance, maybe a new shirt or tie.

3) Know the plans.

Know where to pick up your date and the arrangements for photos before the event. (Mom will be upset if she hears nothing but all the other parents show up at THE designated group photo spot.

4) Have cash in your wallet.

It isn’t cool to stop at the ATM before dinner. And, Dad isn’t there to pick up the dinner tab for you either.

5) This is not the time to pig out.

At dinner, look over the menu and don’t order the most expensive meal (unless you budgeted money to do it). When you go out with mom/dad, the family might order an appetizer to share, entrees, sodas, or perhaps desserts. You won’t want to inhale too much in front of a date, much less pay for it all. (eat a snack before you leave home if you’re that hungry)

6) Let your date order first.

Your date is in an awkward spot—she must order first and she doesn’t know what you’re thinking, or if you’re paying. Give her some clues, so she can order first, knowing that she won’t be embarrassed to order chicken or a salad.

7) Leave a tip.

Unless your dinner date only eats fast food, you’ll be at a restaurant with a waiter. The waiter needs a tip, which is 15-20% of your bill.  When you pay the bill (for you and your date), calculate 15% for poor/average service and 20% for good/great service and leave this amount near your plate.

8 “All on one bill” is messy and expensive.

Asking for separate checks is okay if you are in a group. Make sure your waiter knows you want the bill for both you and your date.  Separate checks means you don’t have to figure out yours costs of a group ticket, or pay more than your share.

9) It’s okay to split expenses later in the evening.

So you’ve paid for dinner, flowers and dance tickets.  If your date volunteers to buy the photos at the dance, that’s great.  Say yes. If you’re headed out for pizza or snacks after the dance, it’s also okay to split the bill.

10) Have fun…and don’t worry.

If you’ve planned out your expenses for the date, having enough in your wallet is not a worry.

Bottom line?  My nephew remarked to his dad, “Gee, it would be expensive to do this a lot, wouldn’t it?”

You got that right.

Leave a Comment » | Teachable Moments | Permalink
Posted by moneygodmother

Next Entries »
Follow

Get every new post delivered to your Inbox.