The Money Godmother's Blog

Canada Wants to Create a Digital Currency

moneygodmother — Wed, 02 May 2012 03:09:29 +0000

Will our currency change, as we become a digital nation?

The Canadian Mint has proposed the “MintChip” which brings all the benefits of cash. It’s basically the digital equivalent of the coins we use daily. The MintChip system would require each user to have technology loaded in an account in the cloud, mobile device, USB stick or PC. Through a secure protocol, the value would be transferred from one chip to another, without personal identification.

Check it out at the website developer.mintchipchallenge.com/index.php

Are You Having More Money Conversations?

moneygodmother — Mon, 02 Apr 2012 02:38:22 +0000

It seems parents are doing more talking about money with their kids these days–at least those answering the annual survey from T.Rowe Price do.

Released last week, the survey revealed that 46% of parents are having more conversations with their kids about money compared to a year ago. Additionally, about half, or 48%, of parents spent about the same amount of time talking with their kids about money as they did last year.

Top reasons for the increase in conversation?

• 38% said their children can understand more and need to learn.

• 17% said the economy or a change in their financial situation prompted the conversations.

From the kids’ perspective, the most popular topics are saving, how to make money, and allowances. Yet, 45% of kids didn’t know or couldn’t name a money topic they wanted their parents to discuss. When asked where they turn for answers about money, a majority (54%) of kids said they go to their moms first. About 40% go to their dads first.

But when it comes to discussing specific family finances, most parents say they avoid the details–nearly one third will avoid that discussion.

How does the survey compare to what happens in your family?

Don’t Let Thieves Steal Your Identity

moneygodmother — Mon, 05 Mar 2012 04:45:48 +0000

If someone steals your wallet, it’s important to thwart credit card losses as soon as you can. To do that, call the three credit bureaus:

Equifax, 800-525-6285

Experian, 888-397-3742

TransUnion, 800-680-7289

And then call the Social Security Administrations fraud line, 800-269-0271.

Get Financially Organized in 2012

moneygodmother — Sun, 26 Feb 2012 05:09:02 +0000

Ever feel like that paper clutter is getting the best of you? Before tossing out bank statements and receipts, however, make sure you know which financial records to keep. Here’s a checklist:

Keep these records for a calendar year:

• Pay stubs

• Social Security benefits statements

• Bank statements

• Statement for investment accounts

• 401(k) plans

Keep these until you reconcile your account:

• Bank deposit slips

• Credit card receipts and statements

• Monthly bills

Keep these for 7 years:

• Tax returns plus documents to prove expenses

• Bank statements needed to prove deductions

Keep these forever:

• IRA contributions

• Employer-defined benefit plan communications

• Life insurance policies

• Statements showing sales of investments (gains/losses)

• Savings bonds

• Loans

• Home improvement receipts

• Inventory of safe deposit box

Stretch Your Travel Budget

moneygodmother — Mon, 20 Feb 2012 05:20:20 +0000

When traveling on vacation, two adults spend about $80 per day on food alone, according to AAA.

moneygodmother — Sat, 18 Feb 2012 04:34:19 +0000

According to Bankrate.com, as many as 72 million American consumers would save on groceries, doctor’s visits, and health insurance premiums if they would just eat better.

Want to Save Money?

moneygodmother — Sat, 18 Feb 2012 04:33:34 +0000

According to Bankrate.com, as many as 72 million American consumers would save on groceries, doctor’s visits, and health insurance premiums if they would eat better.

Americans Make Their Cars Last

moneygodmother — Fri, 03 Feb 2012 04:09:29 +0000

Americans aren’t springing for new cars these days, according to the automobile industry. The average age of vehicles on the road today is nearly 11 years old.

FICO Deems Credit Behavior Is “Steady”

moneygodmother — Sat, 28 Jan 2012 04:08:48 +0000

Credit, credit, credit.

We hear a lot about credit and debt, creditworthiness, credit history, credit scores. Just how are Americans handling the changing credit scene? It seems consumer credit behavior is steady.

FICO, the agency that many organizations turn to for credit scoring, has done some research on what’s happening with credit scores since the economic downturn. There are almost as many Americans with improving credit scores as there are Americans with declining scores.

Most bank risk managers surveyed by FICO in the third quarter of 2011 were pessimistic. Those surveyed anticipate more consumers will be delinquent with residential mortgages, auto loans, credit cards, and student loans.

According to FICO, consumers whose credit scores dropped recently are much different than those whose scores dropped early in the economic crisis. Mortgage pressures were not as much of a factor in severe delinquencies than formerly assumed.

FICO research shows “consumers who defaulted after 2008 look more like good consumers than those who defaulted between 2005-2007. They were on the books longer, had fewer months of minor delinquency prior to the default, and have higher scores even after the default. They also defaulted for more money: The average balance on defaulted accounts in 2008-2010 was $5,543 compared to $4935 in 2005-2007.”

New Bureau Says Credit Misunderstood

moneygodmother — Thu, 01 Dec 2011 19:01:41 +0000

The new Consumer Financial Protection bureau (CFPB) has been focused on collecting credit card complaints since it began on July 21, 2011. So far, more than 5,000 complaints about credit cards have been submitted, and CFPB is using the information to help identify basic problems in the marketplace.

CFPB made three observations about the complaints:

• Consumer confusion…we struggle to understand the terms of credit cards and associated products.

• Third-party fraud…alleged false charges are made by unauthorized parties

• Factual disputes…factual disputes between consumer and issuer are rampant

Beginning December 1, the Bureau will tackle complaints related to home mortgages. The Bureau hopes to be ready to handle complains on all financial products and services by the end of 2012.

The complaint system includes a toll-free number and a form on the CFPB website.