Money Management 101 for Single Parents Going it Alone

1. Determine What You Owe

As the head of the household, it’s up to you to make sure that your entire family’s needs are being met. In order to do that, you need to be extremely diligent when it comes to money management basics. This is not something that will happen by accident. Instead, you must plan for it and work toward it.

The first step is to set up your “office.” Gather all of your bills, a calculator, a pencil, and your checkbook.

I would also recommend that you grab an old binder that you can use to keep track of your financial data and a shoebox for storing paid bills.

Now you’re ready to begin:

  • Go through all of your bills, and pay anything that is due within the next week.
  • If you have bills coming due that you cannot pay, notify the company and ask them to set up a payment plan with you.
  • Print a copy of the chart “Paying Down My Debts” or make your own.
  • On the chart, list all of your debts, including any car loans, student loans, and credit card debt.
  • In addition, list the total balance left to be paid on all of these debts, and the percentage rate you are paying.
  • For now, leave the fourth column of the chart blank, and store it in your “Financial Data” binder.

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2. Eliminate Joint Debt

Before we create a plan for paying down your debt, it’s important to consider some special circumstances that may apply to you as a single parent. I asked LaToya Irby, Credit/Debt Management Expert, to share her expertise on handling joint debt:

Wolf: Let’s say a single mom still shares a credit card with her ex. What should she do?

Irby: Ideally, she would want her ex to transfer his portion of any joint balances onto his own credit card. That way, everyone is paying for their own debt.

Wolf: What about leaving both names on the account, and agreeing to pay part of the amount due? Is that ever advisable?

Irby: No. If you’ve made an agreement with your ex to split the debt payments on accounts that include your name, and your ex-misses a payment, it’s going to hurt your credit. If the ex-fails to pay altogether, the creditors and collectors will come after you. Not even a divorce decree can change the terms of a joint credit card agreement. In the credit card issuer’s eyes, you’re just as much responsible for post-divorce accounts as before.

Wolf: What about situations when a couple’s divorce decree mandates that one individual must pay off the joint credit card debt, but that person fails to do it?

Irby: You can always file contempt of court papers against him/her, but in the meantime, your credit score suffers. So I suggest paying off the debt to save your credit. If you can’t afford to pay the debt, at least make minimum payments to keep a positive payment history on your credit report.

Wolf: What about other accounts, such as utilities and cell phones?

Irby: The safest thing to do, if you have a service in your ex’s name, is to turn off the account and reestablish service in your name.

 

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3. Find Money to Pay Down Debt

Another thing we have to do before creating a plan to pay down your existing debt is to find money in your budget each month. To assist in this step, I contacted Erin Huffstetler, Frugal Living Expert.

Wolf: How much money do you think the average person can uncover just by being more intentional about spending and budgeting?

Huffstetler: The average person could easily uncover an extra $250 a month—and probably much more.

Wolf: What are the top 5 areas that you think people should look to first when they’re trying to cut their expenses?

Huffstetler:

  • Food spending (both groceries and eating out)
  • TV-related expenses (cable/satellite services, certainly; but also movie subscriptions and rentals)
  • Phone services (particularly extras like call waiting, caller id, long distance, and cell phones)
  • Insurance premiums
  • Miscellaneous spending (all those small amounts spent on coffee, vending machine snacks, and other indulgences)

Wolf: How can single parents, specifically, stretch their child support dollars and reduce child-related expenses?

Huffstetler: For single parents looking to stretch their child support dollars, creativity is the key. Look to children’s consignment shops and thrift stores to buy your kids’ clothes instead of department stores; sign them up for Parks and Rec-run activities instead of privately-run activities (which will always cost more); and don’t feel like you have to make up for being a single parent by buying them extra things—it’s you they need, not stuff.

 

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4. Pay Off Your Debt

The next step is creating a schedule for paying down your debt:

  1. Pay off the debts that charge you the highest interest first.Bob Hammond, author of Life Without Debt, recommends that you pay off the debts that are charging you the highest interest first since borrowing from those creditors is costing you the most money. “Concentrate on paying off the high-cost debts as soon as possible,” Hammond advises. LaToya Irby, Credit/Debt Management Expert, agrees. “Highest interest rate debts cost the most money, especially when those debts have high balances. So you’ll save money on interest charges when you pay off those high-interest rate debts first.”However, there are exceptions to this general rule. Irby notes, “If you’re likely to get discouraged because it’s taking a long time to pay off that high-interest rate debt, you can start with the lowest balance debt. Getting some small debts paid off will motivate you to keep going.”
  2. Pay more than the minimum payment. Aim for paying more than the suggested minimum payment, in order to pay off your debts as quickly as possible.Miriam Caldwell, Money in Your 20’s Expert, shares this advice:
    • Choose one debt to focus on.
    • Increase your payment on that debt by as much as you can.
    • Once you have paid off that debt, move all that you are paying on it to the next debt you want to pay off.
    • You’ll be surprised at how quickly you can get out of debt with this plan!
  3. Meanwhile, continue to pay the minimum balance due on all of your other debts.Record what you intend to pay toward each debt on the debt chart you made in Step 1.

 

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5. Budget Your Monthly Expenses

Now that you know where you stand financially, and you’ve created a plan for paying down your debts, it’s time to make sure that you’re making any other necessary adjustments so that you can keep up with your plan. And this means creating a budget.

I know this can be intimidating, but I’m going to make a suggestion for you: Sign up for Mint.com. It’s a free financial software program available on the Internet, and it will basically do your budgeting for you. It will create a visual pie chart showing how much you’re spending each month on housing, gas, food, entertainment, and more. This way, if it turns out that you’re spending a lot more on food than you really should, you can begin to make the necessary adjustments to get your spending under control.

If you would prefer to create your budget the traditional way, allotting a certain amount of money to each spending category, I’ve created an online budget calculator you can use, which includes categories for child support and other details specific to your life as a single parent.

Finally, in taking a look at where your money really goes each month, it’s important to know approximately how much money you “should” be spending in each category. Generally speaking, your net spendable income (after taxes) should be allocated as follows*:

  • Housing: 30%
  • Food: 12%
  • Auto: 14%
  • Insurance: 5%
  • Debt: 5%
  • Entertainment: 7%
  • Clothing: 6%
  • Savings: 5%
  • Medical/Dental: 4%
  • Miscellaneous: 7%
  • Child Care: 5%
  • Investments: 5%

 

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6. Set Financial Goals

Now that you’ve worked out a plan to pay down your debt, and you’ve created a budget, it’s time to determine your needs moving forward.

Specifically, as a single parent, you need to ask yourself some questions, such as:

  • Do you need to file for child support?
  • Do you need to get a higher-paying job?
  • Is it time to think about going back to school?
  • Do you need to consider moving into a home/rental that would reduce your overall monthly payments?
  • Are there alternatives, such as taking on another job or splitting expenses with another single parent family, that you need to consider at this point?

One of the things that I want you to know is that the ball is in your court. You determine where this goes from here on out. But unfortunately, you can’t do that if you’re ignoring your financial health, right?

So the fact that you’ve come this far in the process of getting a handle on your finances tells me that you’re determined to make the changes you need to make in order to provide for your family’s future.

So go ahead and ask yourself these questions. So much of single parenting is learning to roll with the punches and be creative in the face of adversity. If, indeed, you need to make some pretty major changes, now is the time to do it. Don’t incur any more debt where you are. Be resourceful, follow through, and do what you need to do to turn your financial situation around.

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7. Increase Your Net Worth

The next step is to determine your net worth and begin adding to it.

Determine Your Net Worth:

Your net worth is what you own minus what you owe. Programs such as Mint.com, Quicken, and Microsoft Money will calculate your net worth for you, automatically.

You can also determine your net worth simply by adding up all that you own, including all of your investments, the equity you may have paid into your home, the value of your car, and any other assets you possess; and subtracting what you owe in remaining debts.

Set Up a Savings Account:

Once you know where you stand, you’ll be ready to set up a savings account. You can do this through your regular bank, or begin investing in a mutual fund that pays interest.

Even if you can only afford to set aside $25 or $50 per month, it will begin to add up.

Before you know it, you’ll have an emergency savings plan in place, to protect you in the event that your car breaks down, or your home needs a major repair.

In addition, this regular savings will help you increase your net worth over time.

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8. Become Even More Frugal

Unfortunately, all of the work you’ve already done in steps 1-7 will have little lasting value if you don’t change your attitude toward money. Now is the time to become even more frugal and learn to live within your means.

Practice Discipline:

Stop imagining that more money is going to pour in tomorrow—through finally collecting on unpaid child support, winning the lottery, or getting a promotion. If those things happen, great! You’ll be even better off. But living as if they’re going to happen is causing you to spend money you don’t have.

Instead, force yourself to make purchases with cash only. Do not continue to pay outrageous interest payments toward credit cards for purchases you don’t absolutely need. You can get by without that new furniture, right? What else could you skip, in the interest of spending only what you have right now in the bank?

Try These Ideas:

  • Check Freecycle before you make another major purchase. Someone else may be giving away the very thing you’d like to buy!
  • When you’re getting ready to buy something specific, look for it on eBay first. I buy a lot of my clothes, new-with-tags, through online auctions!
  • Forget trying to keep up with “The Jones’s.” You already know your value; don’t get caught up trying to “prove” your worth to others by having “just the right” house, car, or appearance.
  • Do not use shopping, ever, to appease your emotions.
  • Finally, when you do go to make a big purchase, step back and give yourself a few days–or even a week–to think about it. There’s no reason to suffer through buyer’s remorse and try to justify to yourself purchases that you really can’t afford. Think it over carefully and make those purchases, when necessary, with cash.

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9. Schedule Your Own Weekly Financial Check-In

Grab your calendar and schedule a weekly financial update meeting with yourself. This is an extremely important step in managing your personal finances, and it’s one that you need to continue each and every week. During your “meeting” time:

  • Pay any bills that are due.
  • If your bank statement has arrived, take the time to balance your checkbook.
  • Check the balances of your checking and savings accounts.
  • Update your debt list to incorporate any recent payments.
  • This is also a good time to write out your grocery shopping list and check what’s on sale at your local grocery store this week (either using the store’s Web site or the sales circular that comes in the newspaper).
  • Finally, also make note of any upcoming expenses you need to anticipate and plan for.

An attitude of gratitude and finances.

 

 

References:
Irby, LaToya. Email interview. 24 Oct. 2008, 
Huffstetler, Erin. Email interview. 24 Oct. 2008. 
Sources:
Caldwell, Miriam. Email interview. 27 Oct. 2008, Hammond, Bob. “Debt Free Key: 10 Steps for Coping With Credit Problems.” Life Without Debt. Franklin Lakes, NJ: Career Press, 1995. 31-32, Irby, LaToya. Email interview. 24 Oct. 2008. 
“Spending Plan Online Calculator.” Crown Financial Ministries. 11 Oct. 2008.

Written By: Jennifer Wolf

Source: thebalance

 

 

 

Raising Kids to Be Smart About Money

Young minds are programmed to absorb and copy the behaviors around them, which means the sooner you instill proper money management skills, the more prone your kids are to become mature and responsible stewards of their own cash-flow in the future.
“Becoming financially literate early in life is fundamentally important to your financial well-being as an adult,” says Micah Fraim, award-winning CPA and best-selling author.

“I was pinching pennies at five years old, calculating the cost of grocery items per ounce, refusing to buy expensive clothes unless they were on-sale and foregoing scoops of ice cream from the ice cream shop, so I could buy multiple gallons at the grocery store,” Fraim says. “Now as an adult, I still have that same mindset and live well below my means.”

The following kid-approved strategies help you teach the core tenets of being financially savvy; in terms they’ll understand and appreciate. Consider how you can use them to teach your little ones to be smart about money.

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Find Opportunities for Lessons

At some point, your child will inevitably deplete their allowance on impulse purchases, rather than holding out for the more expensive item they’ve been asking for. Instead of giving them more money, or buying it for them, use this as an opportunity to demonstrate that money is a finite resource, which must be allocated over an extended period. Once you spend, it’s gone until you can make more.

Have a conversation about what else they could have done with that money, or how much longer they would have needed to save to get the big-ticket item they wanted. Perhaps give an example of when you spent foolishly, or better yet, saved enough money to buy something important, like your house or car.

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Demonstrate that Income Is Earned

Chores are an easy way to teach children that money must be earned. This tangible incentive for contributing to your household shows them that have to work for what they want, and even do things they may not want to do—i.e. vacuuming and doing the dishes.

The concept of having to earn your money is a positive outcome of rewarding children financially for completing chores. However, some parents find that this method doesn’t necessarily teach money management, making it a bad way to teach children how to be smart about money. The key to avoiding the latter is the set-up.

Susan Borowski, mother and author for Money Crashers, shares how she set this up with her teenage son:

“As a contributing member of the family, my 13-year-old son is expected to do certain chores around the house for free. He can earn money for tackling larger tasks, many of which he can choose, some of which he cannot; the amount he earns depends on the difficulty of the task or how long it takes. This forces us to discuss money each time he takes on a larger task.”

This shows them that they have control over how much they earn, rather than it being a given.

Secondly, keep chores focused on money management with an app like Chore Monster so children can track what they’ve done and earned. This is an easy way to establish a record-keeping system, for both chores and allowance, seeing increases or decreases in money earned over time.

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Establish a Record-Keeping System

When your child is consistently earning allowance or money for chores, it’s important that they’re able to account for what happens with that money. The more emphasis you put on this piece of the earning, the more they’ll see the value of managing their funds. They’ll start to notice wasteful spending habits and identify which pitfalls to avoid during their next allowance payout.

Designate a folder where they can stockpile receipts and a notebook where they can track all purchases. This simple method of financial reporting is an ideal precursor to balancing a checkbook, analyzing bank statements, or creating a monthly budget.

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Use Visual Aids to Your Advantage

Although the “piggy bank” is a time-honored childhood favorite, this approach to money management doesn’t allow your child to see the positive outcome of their coin stashing. For a more functional alternative, use a transparent mason jar or clear plastic Tupperware container, both of which gives them an unobstructed view of the progressive financial increase that comes from diligent and habitual saving. This tool makes the abstract concept of saving easy to see and understand.

You can also open a bank account for older children. This gives them a chance to become familiar with bank statements, which act as a visual aid. Each time a new statement comes in, they can sit down and look at how much money was put into the bank account and how that’s changed month-over-month. Many banks now offer online portals, as well, where your children can see progress represented in bar and pie graphs; these may be easier to understand and digest.

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Encourage Them to Set a Savings Goal

There’s a sense of accomplishment and empowerment in reaching a goal with no shortcuts taken or assistance received. Channel this mindset when encouraging your child to practice economical behaviors. Next time they express interest in the latest gadget, suggest they purchase it themselves and develop a step-by-step plan together, so they feel equipped for the undertaking. This process of setting aside money with a specific goal in mind reinforces the gratification gained from being smart about money and purchasing the item without any help.

It’s never too early to start teaching your kids about how to be financially savvy. Too many people don’t learn about personal finance until it’s too late — like when they’re buried in student loans — so teaching these skills early on is important for setting your children up for success later in life.

 

 

 

Written By: Jessica Thiefels
Source: PBS

Let’s Go On A Money Adventure

It’s never too early to start teaching kids the value of money, so Ally created a children’s book to help kids learn about money skills as part of their Wallet Wise financial literacy program.

Planet Zeee and the Money Tree is a tool to help parents and educators teach children the fundamentals of learning, saving and growing money. Take your child on an intergalactic adventure with the kids from Planet Zeee as they learn important money lessons from their Earthling friends. It’s never too early to teach children financial responsibility and good money habits.

Download your free copy here!

 

 

 

The Truth About Present-Day Retirement

Times have changed and so has retirement! Nowadays, retirement is no longer what people once expected. If you’re preparing to retire, the way your parents did, you might be stuck in the past and need to face present-day reality. So, what has changed in the last 10 years? Well, the factors below will shift your perspective about how you should be preparing for retirement!

First, with all the advancements of medicine and technology that we’ve had in this last decade, it’s no surprise that people are living longer. In the past, living 30 years after retirement, was actually outside the norm of an adult’s lifespan. Therefore, the 4% safe withdrawal rate that many financial planners followed was a valid rule of thumb. This guideline told retirees that if they took out only 4% of their assets and adjusted to inflation in their retirement portfolio, the risk of running out of money 30 years after they retired was very low.

But it’s no longer the case! If you’re saving conservatively for an amount that would last you around 30 years, disregard the 4% rule. People are now living past the age of 95 and a good amount of them are even retiring early. The average portfolio return for the standard investor has also decreased and is subject to more risk from the impacts of market volatility. The chances of outliving your nest egg is a lot higher these days.

Not only are people starting to live longer, the divorce rate is also significantly higher. You can no longer assume that you’ll still be married once you retire! How is that an issue, you ask? Well, a divorce could be a serious stumbling block for your retirement plan since your income might be cut in half during your golden years. Not to mention, your retirement assets might be split among you and your ex-spouse. Because of a divorce, you’ll most likely have to change your retirement strategy and lifestyle.

Have you noticed that everything costs a lot more than it used to? Some of this increase can be a result of natural inflation in prices. But, according to our government, inflation is very tame and under control. Yet, the cost of everyday goods is a lot higher and will keep outpacing inflation throughout your retirement. And it is not just everyday expenses that you’ll need to factor into your budget, there’s the added healthcare costs as well. Given the fact that there’s a good chance you’ll live longer, there are more medical issues you’ll be susceptible to. Not to mention the fact that your chances of getting injured or breaking something will dramatically increase. This means a lot more medical bills and trips to the doctor’s office! On top of that, the fact that a third of us will require some sort of assistance or nursing care, and you can see how retirement costs can skyrocket! Basically, retirement is not as cheap as it used to be.

Finally, if you think about your assets, it’s safe to assume that your home is your most valuable one. You may be able to sell it at a profit, assuming that the value has increased over the years. However, that might be a misconception! In order to determine whether or not you’ll actually get a return on your investment, you’ll need to adjust for inflation and taxes. Also, if we experience any major volatility in the housing market like we did in the past, you might not be able to get as much money for your property as you expected. Like all markets, the real estate market can be unpredictable.

So, with all of these changes, how can one successfully save for retirement? Well, my biggest recommendation for every pre-retiree that I talk to is, BE PREPARED! It’s always better to set your retirement savings goal beyond your expected amount, than below it. With the unpredictability of divorce, age, and the financial markets, it’s better to be safe than sorry. If you aim higher and save more, then your risk of running out of money during retirement will be a lot lower. Part of being prepared is to work closely with a financial planner that can guide your through your Golden Years. This ‘financial coach’ should be able to point out pitfalls that you might not have even thought of. It’s their job to make sure that you’re on track and don’t fall victim to your own wrongdoings. As well as to create a retirement game plan and an investment road-map that takes taxes and your risk tolerance into consideration.

Being prepared for retirement can be a daunting task. Especially given all the unknowns out there. But with proper preparation and guidance from a financial professional, you can glide into retirement knowing full well that you’re ready for the challenge!

20 Hidden Sources Of Income Lying Around Your House

You can sell things online, like dolls, old appliances and books, for cash.

The unused items collecting dust in your home could be worth hundreds or even thousands of dollars. People tend to underestimate the value of their belongings, but buyers often are happy to pay serious cash for rare or limited items, said Jacquie Denny, founder of Everything But The House (EBTH), an online estate sale service. However, even everyday items can find a buyer.

Whether you’re on a cash crunch or want to do some heavy spring cleaning, check around your house. Find out which 20 things you can sell online and elsewhere for extra money.

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1. CLOTHING

Chances are that you and your loved ones have clothing that’s collecting dust in a closet. If these items are gently worn, you might be able to cash in by selling them. One of the easiest ways to unload your used clothing for cash is to sell items on consignment.

I’ve been selling clothes through a local consignment store for years and regularly receive 50 percent of the selling price for items I unload. To earn top dollar, look for upscale consignment stores that enjoy a lot of foot traffic. Additionally, you should find out what brands and items the store accepts and make sure your clothing meets the store’s standards.

You can also sell to an online reseller such as ThredUP.com, which will send you a prepaid package to ship your items. ThredUP sellers can earn up to 80 percent of the marked price of their items.

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2. DESIGNER SHOES AND HANDBAGS

If you paid big bucks for designer shoes or a handbag that you now rarely use, you can reclaim some of your money by selling these items online. Frugal living expert Lauren Greutman said she has sold shoes through Poshmark for up to 50 percent of the retail price.

You can snap a picture of the items you want to sell using the Poshmark app and list them instantly. Poshmark will send a prepaid box to ship items that sell and take a $2.95 commission for sales less than $15 and a 20 percent commission for sales above $15.

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3. JEWELRY

If you have an inherited necklace that isn’t your style, or an engagement ring you no longer wear because you’re divorced, you might want to consider selling these pieces for cash. Fine jewelry can be worth a lot, said Denny.

To make sure you get the full value of your jewelry, consider having items appraised beforehand. You can find an appraiser near you through the American Society of Appraisers’ site, Appraisers.org, or sell online through an auction site such as eBay.com. You can also opt to sell to a jeweler or pawn shop, but it’s important to seek out quotes from several stores before doing so.

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4. COMPUTERS

Many households have $400 to $800 worth of cash in the form of unused laptop computers, said Michele Perry, a consumer tech expert at electronics resale site Gazelle.com. Fortunately, sites such as Gazelle and NextWorth.com make it easy to unload these unwanted laptops for cash.

With Gazelle, sellers can request quotes for their devices. They are then sent prepaid shipping boxes.

“You just send it back with your device, and we’ll send you cash,” Perry said. She went on to remind sellers to erase the data on their computers prior to sending them in.

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5. CELLPHONES

Used cellphones are another tech item you can sell for cash — even if it’s damaged.

“Most devices still have value even if they are broken or damaged, as long as they are fully functional and just have a broken screen or need to replace a battery or button,” Perry said. In fact, sellers can net $75 for a broken iPhone 6S on Gazelle.com. Moreover, they can earn $185 if the item is in good condition with normal wear and tear.

Sellers can also unload old cellphones on sites like Kiiboo.com and NextWorth.com or drop their phones into one of the more than 2,000 ecoATM kiosks located in shopping malls across the nation.

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6. GIFT CARDS

In 2015, $973 million worth of gift cards went unused, according to the professional services firm CEB. If you have gift cards you’re not planning to use, you can sell them for cash on sites such as CardCash.com, Cardpool.com, GiftCardZen.com and Raise.com.

The above sites purchase gift cards for less than face value and then resell them at a discount. For example, you can get back up to 92 percent of a card’s value at Cardpool.com. You also can exchange gift cards for cash at Coinstar Exchange kiosks in grocery stores.

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7. BOOKS

If you have books you know you’ll never read again — or at all — you can easily turn them into cash by selling online. Check to see if you have any first edition books and books autographed by authors to start, said Denny of EBTH, as these items could be good sources of hidden cash.

Greutman recommended selling unwanted books on Amazon. Scan your books using the free Amazon Seller app, which tells you the current value. You can list your books with the app and price them based on Amazon’s pricing suggestions, she said. It’s important to note that Amazon charges 99 cents per item sold.

Additionally, sellers can unload unwanted books through Half.com, which doesn’t charge a listing fee. Start by visiting sites like AbeBooks.com and Biblio.com to see what your books might be worth.

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8. CHILDREN’S TOYS

It’s no secret that children outgrow their toys quickly. Luckily, you can make money selling your kids’ unwanted toys — especially larger items such as kitchen playsets. I made about $50 on a wooden train set for which I originally paid $75 by selling it through a consignment store.

If you have several smaller toys to sell, Greutman advised requesting a box from Swap.com. You can fill it with items and then ship it back to the company for free. Earning $25 to $50 per box is not uncommon, according to Greutman.

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9. COLLECTIBLE DOLLS

If you inherited a collection of porcelain dolls from your grandmother, it might be time to dig them out of storage. In fact, according to Denny, people are willing to pay top dollar for collectible dolls.

Additionally, individuals whose children have old American Girl dolls might be sitting on cash cows. These toys command a high price on eBay.com, said Greutman. For example, a 2014 American Girl Doll of the Year recently had a list price of $399.99 on eBay. This listing is $285 higher than that of the current Doll of the Year sold by American Girl.

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10. FURNITURE

Make some extra cash by selling unwanted furniture that’s occupying space in your garage, attic or storage unit. Along with selling items in consignment stores, which offer owners a percentage of the final price, individuals can opt to advertise locally on Facebook, Craigslist.org or OfferUp.

BudgetsAreSexy.com blogger J. Money has made more than $1,000 selling items on Craigslist, including furniture. When listing an item on the site, he recommended posting several pictures, providing all of the dimensions, using keywords such as brand names in your description and researching prices of similar items. Additionally, you should make yourself available by phone or email to respond to interested buyers.

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11. MUSICAL INSTRUMENTS

That guitar or drum set you bought years ago, because you thought you were going to start a band, can be turned into cash if your dreams of rockstardom never materialized. In fact, J. Money reported selling an electric guitar, amps and accessories on Craigslist for $225. You also can sell musical instruments online through sites such as Reverb.com, which charges a 3.5 percent fee on sales, or at a physical retailer such as Guitar Center.

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12. SPORTING GOODS

Denny said that outdoor sporting goods, such as bicycles, canoes and fishing gear, tend to sell well on EBTH. If you have sporting goods you bought for yourself or your kids, you can sell them on your own through Craigslist or OfferUp.

Additionally, you can take sports gear — such as skis, golf clubs, baseball bats, gloves and football cleats and helmets — to a Play It Again Sports store and receive 30 percent to 50 percent of the selling price.

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13. SPORTS MEMORABILIA

If you collected baseball cards or sports jerseys as a child, you might be able to exchange these items for much-needed cash. Signed sports memorabilia, in particular, can be a big source of income.

“The more famous the player, the higher the prices demanded,” Denny said. For best results, consider having your items appraised to determine how valuable they are.

You can find an appraiser through Appraisers.org or have trading cards professionally authenticated through the Professional Sports Authentication at PSACard.com. One of the best places to sell sports memorabilia is eBay, which many sports enthusiasts use to find collectibles.

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14. ANTIQUES

If you have antiques you’re willing to sell, their value will hinge largely on their condition and whether they are rare or have historical significance, Denny said.

“With antiques, small scratches and evidence of light wear and tear can actually increase the value slightly, but structural damage and other repairs can be costly and dissuade sellers,” she said. “All these complicating factors are part of why it’s important to work with a reputable appraiser.”

The best way to secure top dollar for antiques is to sell them through an auction house, according to Consumer Reports. You can also sell to antique dealers, but be sure to get quotes from a few services before doing so. Additionally, you can sell antiques at EBTH, which offers appraisers who will value individual items or an entire estate.

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15. ARTWORK

Whether you have inherited artwork that isn’t your taste, or pieces you purchased are collecting dust in the attic, you can opt to sell these items for cash. In fact, I’ve sold numerous pieces of art at consignment stores.

For fine art, consider having items appraised before selling. Regional artwork sells particularly well in EBTH sales, said Denny. You can also sell your fine art through auction houses.

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16. CHINA SETS

If formal dining isn’t your style, you can unload that china set you inherited or received as a wedding gift at a local consignment store. Denny said china is a popular item sold on EBTH — especially sets made by Spode, Lenox and modern designers, such as Ralph Lauren. Additionally, sellers can list china sets on Craigslist.

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17. SILVER

If you inherited some sterling silver trays, serving spoons or other items you don’t use, you might be able to earn cash selling them “as is” or for scrap.

“If the silver holds any sort of historical significance, or has any brand association, it will offer a much greater return than if you were to sell it to scrap,” Denny said. However, she acknowledged that the current market for silver is a difficult one.

At the present time, buyers might get more money selling silver pieces for scrap than at a consignment store or through an auction house. For best results, secure quotes from several metals dealers — both online and storefront.

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18. SAVINGS BONDS

You might have received — or even purchased — savings bonds decades ago only to forget about them completely. In fact, billions of dollars’ worth of matured savings bonds have never been cashed in, according to the U.S. Department of the Treasury.

You can use the Treasury Hunt tool at Treasuryhunt.gov to discover whether you have Series E bonds issued after 1974 that are no longer earning interest and can be cashed in. The tool can also help you identify bonds you might have lost and claim them.

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19. APPLIANCE PARTS

Small appliances that are old or broken can still have value, Greutman said. That’s because you can sell their parts on eBay. For example, a used Keurig K-cup holder recently had a list price of $29.90 on eBay.

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20. VIDEO GAMES

You can cash in on those video games you or your kids no longer play by selling them online or at various brick-and-mortar retailers. Sites such as uSell.com and NextWorth purchase used video games and offer free shipping. Additionally, you can sell used video games at retailers such as GameStop, which will pay cash or give you store credit to buy more hours of fun.

 

 

Written by: Cameron Huddleston
Source: GOBankingRates

The Holidays Are About the Fa La La, Not the Moo La La

This year, we’ll collectively fork out $465 billion on holiday spending. Of all that cash, about 43% is spent on travel, and another 41% on gifts. Saving in those two areas alone can really help make a difference in your wallet.

A few things the airlines don’t want you to know

When you figure that Americans will spend more than $6 million on air travel during the holiday season, the costs can seem unavoidable. But if you follow a few simple rules, you could save hundreds.

  • Avoid buying a ticket for the Friday before Christmas
  • Fly on Tuesdays, Wednesdays, or Sundays on off-peak hours
  • Search tickets for one passenger at a time—airlines tend to jack up the prices when you buy for more than one.
  • Clear your browser history, or search incognito. The more airlines learn about you, the more they learn about where your spending habits are and the more they can skew the prices based on what they know about you.

Online hacks that’ll help save your wallet

It’s a digital world. And that makes shopping a whole lot easier, but it also opens up the opportunity for huge savings.

  • Take Honey for example. It’s a Google Chrome extension that tests every coupon code available, so you don’t have to.
  • Amazon Prime is only $99/yr, and it currently gives you free shipping on a ton of things listed on the site—which has some of the most competitive prices already.
  • Deal Squad is a site that checks to make sure you’re getting the best price available—you just cut and paste the URL of the item you’re watching.

Go for thoughtful, not pricey

Putting more thought into a gift means you can spend a little less. Say your coworker loves elephants—buy him the elephant socks you know he’d never buy for himself. Same goes with magazine subscriptions. If your dad loves boating, get him a boating magazine—it’s a gift that keeps giving, year-round. Or you can gift what you’re good at—get crafty. Yeah, pecan pie bakers, we’re looking at you. Even if you’ve never tried out a DIY, it’s worth a visit to Pinterest for some inspiration. Sometimes a meaningful gift goes a lot further than one with a high price tag.

Charities need your time, not just your cash

You can give charity a hand without breaking the bank—just give some of your time. And it’s a great way to spend time with your friends and family too. You could volunteer as a group at a food shelter or soup kitchen—or you can look for local opportunities on Volunteermatch.

 

 

 

 

 

Source: Ally Bank

 

20 Tricks to Retiring Rich

2016-01-27-1453916964-4514469-20RetireRich.jpg
Provided by Huffington Post

When you envision your retirement, what do you see yourself doing: Traveling to faraway places? Indulging in hobbies you didn’t have time to enjoy while you were working? Or pinching pennies just to cover the bills?

The latter is probably not your ideal retirement, but it will likely be the reality for most people. More than half of Americans are at risk of being unable to cover essential living expenses, according to a survey by Fidelity Investments. That’s because they’re not saving enough now for their future.

Sure, it’s easy to put off saving for a retirement that’s years away. But if your nest egg isn’t big enough, you could spend 20 to 30 years struggling to make ends meet. “I’ve never heard anybody complain about having too much money in retirement,” said Kathleen Hastings, a certified financial planner and portfolio manager with FBB Capital Partners. “It sucks to be old. It’s really bad when you have no money.”

Even if your savings aren’t on track, you don’t have to resign yourself to a life of poverty in retirement. In fact, you can retire rich enough to have a comfortable lifestyle by following these strategies. Click through to find out what they are.

1. Eliminate Unnecessary Spending

You might have more room in your budget to save for retirement than you think. That’s because there might be expenses that could easily be eliminated.

“Look at your bank statement and credit card statement every month,” said Tom Corley, a certified financial planner and author of “Rich Habits: The Daily Success Habits of Wealthy Individuals.” “You’ll uncover certain expenses for things you are not even using, such as club memberships, subscriptions, automatic charges for services you’ve never used.”

Also, periodically re-shop your wireless service, cable TV, internet and other services to see if you can get a better rate. Then, boost your retirement contributions by the amount you save by getting better rates and cutting unnecessary expenses.

2. Start Saving Early

One of the best ways to retire rich is to start saving money as soon as you start earning it. Thanks to the power of compound interest, even small monthly contributions to a retirement account can grow over time to a sizable nest egg. The more time you have, the more your money will grow.

For example, if someone started saving $350 a month at age 25, increased that amount by 2.5 percent each year and earned 7 percent annually, he would have about $1.4 million at age 67. But if that person waited until 35 to start saving, he would have about $654,000 at age 67.

“You give up a lot of money down the road by not saving early,” Hastings said.

3. Don’t Let Saving Be a Choice

“Make sure your retirement savings is happening every week or month automatically, without thought or questions,” said Michael Hardy, a certified financial planner with Mollot & Hardy.

Make contributions to a workplace retirement account, such as a 401k withdrawn from your paycheck. Or, set up automatic deposits into an individual account such as an IRA or brokerage account from your checking account. “This eliminates the chance that you stop putting money into your retirement accounts and also helps to dollar cost average into your investments over time,” Hardy said.

4. Save at Least 10 Percent Annually

Americans who are saving for retirement are setting aside, on average, 8.5 percent of their income annually, according to Fidelity’s retirement preparedness study. But most retirement experts recommend setting aside at least 10 percent — ideally 15 percent — to live comfortably in retirement.

If you can’t set aside that much when you’re starting out, make sure you increase the amount you’re contributing as your income rises so you get to a 15 percent savings rate.

5. Take Advantage of the Employer Match

If your employer matches contributions you make to your workplace retirement plan, make sure you’re contributing enough to get the full match. Otherwise, you’re losing out on free money.

The most common type of match is 50 cents to every $1 contributed by an employee up to a certain percentage of pay — typically 6 percent, according to 401khelpcenter.com. For example, if you earn $40,000 a year and contribute just 3 percent of your salary but your employer offers a 50-cent match, you’re missing out on $600 in free money.

6. Save Your Raise — Don’t Spend It

A pay raise can give you more wiggle room in your budget. But if you’re already making ends meet on your current salary, put any extra you get from a raise into your retirement account rather than your bank account.

“Try not to expand your lifestyle if your salary grows,” said John Sweeney, executive vice president of retirement and investment strategies at Fidelity Investments. “Put all that away instead of deciding to buy a nicer car or bigger home.” Then, you won’t have to sacrifice your standard of living in retirement.

7. Make Catch-Up Contributions

Even if retirement isn’t too far off, you still have a chance of saving enough if you take advantage of catch-up contributions. In 2016, you can add an extra $6,000 to a 401k, 403(b) or 457 plan for a maximum contribution of $24,000 if you’re 50 and older.

And, you can boost IRA contributions by $1,000, bringing the total amount you can set aside in these individual retirement accounts to $6,500.

8. Be Willing to Take Some Risk

“For most people, the key to investment success comes down to three words: Save, save, save,” said Ken Weber, president of Weber Asset Management and author of “Dear Investor, What the Hell Are You Doing?” However, you can’t just stash your cash in a savings account. “You’ve got to take some risk for the reward later on,” he said.

Weber said that for each stage of life, you should be invested with as much risk as you can tolerate. Ideally, you should be putting most of your retirement savings into stock mutual funds when you’re in your 20s and 30s. As you get closer to retirement age, you can lower your risk by investing in fixed-income assets such as bond funds, in addition to stocks. Or, consider a target-date fund that will automatically adjust your allocation of stocks and bonds as your approach retirement.

9. Diversify Your Investments

You shouldn’t put all of your retirement nest egg into one basket, Hardy said. In other words, don’t invest all of your money into a single stock. If you do, you could lose your savings if that stock takes a nose dive. Diversify your portfolio with a mix of stocks and bonds — or, better yet, mutual funds that hold a variety of stocks or bonds or both.

10. Don’t Let Fees Eat Into Your Investment Returns

If you invest in mutual funds, make sure you pay attention to the fees and expenses charged by those funds because they can eat into your returns and reduce the amount of money you’ll have for retirement. For example, if fees and expenses on your account are 1.5 percent, your balance will be 28 percent smaller at retirement than if the fees had been just 0.50 percent, according to the U.S. Department of Labor.

The investments offered in your 401k might have varying fees, so consider switching to lower-fee investments — but only as long as they fit your investment objectives and risk tolerance.

11. Stay the Course

You might think you’re protecting your nest egg by pulling your money out of the stock market during downturns. But what you’re really doing is locking in losses by selling when stocks are down and missing out on opportunities for your investments to rebound.

“A well-constructed financial plan takes market gyrations into consideration,” Weber said. “If you have full faith in your plan, it becomes easy to ride through market choppiness.”

12. Get Tax-Free Retirement Income With a Roth

Contributing to a Roth IRA is a great way to create a pool of money you can tap in retirement tax-free. You have to pay taxes on withdrawals from other retirement accounts, such as a 401k or traditional IRA, leaving you with less money to spend. But all the money you withdraw from a Roth in retirement escapes taxes.

13. Invest in Income-Generating Real Estate

Another way to make sure you have money in retirement is to buy income-generating real estate. The key is to purchase and finance it carefully, said Todd Tresidder, a financial coach and founder of FinancialMentor.com.

For example, one former casino card dealer Tresidder knew worked the graveyard shift by night to pay the bills. But, he bought and improved homes by day to grow equity. He retired early in his 50s with five rental homes and more than $5,000 per month in passive income.

14. Get a Side Gig

You can boost your income — and funnel that extra cash into retirement savings — by getting a second job, doing freelance work or turning a hobby into a money-making venture.

If your side gig is considered self-employment, you might be able to make contributions to a solo 401k or a Simplified Employee Pension (SEP) plan. And, those contributions could be tax-deductible. You can set up either type of account through an investment firm with low fees, such as Fidelity or Charles Schwab.

15. Downsize Before Retirement

“A lot of people live in a myth that they should buy as much house as they can afford” and end up buying too much house, Tresidder said. With the big house often comes a big mortgage payment and high insurance, utility and maintenance costs. “All these things take away from your savings capability,” he said. “Often, it’s enough to fund a retirement. ”

If you have a bigger home than you need, don’t wait until retirement to downsize. Cut your costs now, and save the difference.

16. Relocate for a Lower Cost of Living

Living abroad or moving to a state with a low-cost of living is one way to keep down expenses in retirement. But if you do it while you’re still working, you can beef up your savings to have an even richer retirement. Tresidder said he has clients who have taken jobs with U.S. companies that relocated them to other countries where the cost of living is low. As a result, they’ve been able to sock away a lot for retirement.

17. Find an Employer With a Better Retirement Plan

An employer that offers a 401k match is good, but one that provides a pension that creates a lifetime stream of income in retirement is even better, Tresidder said. Although many employers have shifted away from these so-called defined benefit plans, about a quarter of Fortune 500 companies still offer them to new hires, according to a study by professional services company Tower Watson.

A job with a pension plan can actually beat one with a slightly higher salary, Tresidder said. “If you’re short on retirement, that’s a smart way to go,” he said.

18. Don’t Try to Keep Up With the Joneses

Your friends and neighbors might appear to be rich now with all that they have, and you might be thinking that you deserve those things as well. But spending to keep up with the Joneses will likely hurt your chances of being rich in retirement.

“Establish a lifestyle where you put savings first,” Sweeney said. And find a group of friends who also value saving so you don’t feel pressured to spend.

19. Get Professional Help

Hiring a financial advisor doesn’t guarantee that you’ll retire rich, but it might help increase your chances. The right professional can help you create a comprehensive financial plan and stick to it.

Look for professionals with designations such as certified financial planner (CFP), chartered financial analyst (CFA) and chartered financial consultant (ChFC), to name a few. These individuals must meet strict standards to receive these designations and must abide by ethical codes.

20. Play the Lottery

Actually, buying lottery tickets isn’t a trick to retire rich. In fact, you’re just tricking yourself if you think it is because the odds of winning enough money for a comfortable retirement are so slim.

But if you aren’t going to be responsible for your financial future, then you might as well take your chances on hitting it big, Hardy said. “Without a big win or a sufficient amount of savings, you are going to find yourself working the rest of your life,” he said.

Written by Cameron Huddleston of GoBankingRates

(Source: Huffington Post)

How to Save at Least 10 Percent on Everything You Buy

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Tax Credits/Flickr

Coupons and sales make it simple to save big on purchases. But what about those times when you need to buy something and a coupon or sale is nowhere to be found?

Following are three simple steps that can help you save at least 10 percent off anything you could possibly need to buy.

Step 1: Find a discounted gift card

The first savings step is to buy a gift card, but not any old gift card. Instead, you want to head to a website specializing in reselling gift cards at a discounted rate.

Here are some of the biggest sites in the reselling business:

These sites let individuals with unwanted gift cards unload them by selling to others at a discount. While the sites advertise discounts of as much as 35 percent, you’re typically going to save less than 10 percent for most cards.

Step 2: Buy through a rebate site

In some cases, you can save 10 percent by simply using a discounted gift card for every purchase. However, we want to save you more.

If you’re buying online, make your purchase through a rebate site. These sites often offer another 3 or 4 percent off your purchase. You’ll pay the full amount when you buy, but receive the discount back in the form of a rebate.

These are some of the popular rebate sites:

Before shopping, check out the store availability and terms at the rebate sites. Some sites send checks automatically every few months, while others require you to request a payment once you hit a minimum amount in your account.

In addition, participating retailers and rebate amounts vary among sites.

Step 3: Use a cash-back credit card

The final step to saving 10 percent or more is to use your cash-back or rewards credit card.

Depending on the card, you could save anywhere from 1 to 5 percent on your purchase. As with rebate sites, you’ll pay the full price at purchase but receive the cash back as a rebate or statement credit.

Of course, using your credit card comes with the caveat that you must pay off your balance when the bill arrives. Paying interest on a credit card is a sure way to negate your savings.

Other ways to save

While these three steps should save you at least 10 percent off just about anything, don’t stop there.

Written by Maryalene LaPonsie of MoneyTalksNews

(Source: MoneyTalksNews)

Bernie Sanders has a Big Idea to Change America’s Post Offices

Marcus Yam/The Washington Post

Americans don’t spend nearly as much time at post offices as they used to, but that’s not only because postcards are being replaced by Evites. For more than half a century, from 1911 until 1967, the Postal Service also served as a bank. Customers could walk down the street to the post office with their money and deposit it in a savings account there.

The system made sense back in those days, when the country was more sparsely populated and banks were harder to find, but post offices were everywhere. Over the past 50 years, though, the total number of bank branches in the United States increased from 16,000 to 83,000. What’s more, people visit the bank less frequently these days, given the ubiquity of credit cards and direct deposit.

Still, there are still relatively few banks in many impoverished urban and rural neighborhoods, and Sen. Bernie Sanders (I-Vt.), a candidate for the Democratic presidential nomination, has a big idea for turning post offices back into banks. That’s because he sees them as a place where the 68 million low-income Americans who currently rely on payday lenders and costly cash checking services could manage their affairs less expensively. (And banking might help the beleaguered Postal Service’s bottom line as well.)

“What people are forced to do is go to payday lenders who charge outrageously high interest rates. You go to check-cashing places, which rip you off,” Sanders said recently. “And, yes, I think that the Postal Service, in fact, can play an important role in providing modest types of banking service to folks who need it.”

Postal banking is still a part of everyday life in many foreign countries, including the United Kingdom and France, and the U.S. postal inspector general issued a report endorsing the idea last year. The report argued the Postal Service should consider not only opening savings accounts again, but also expanding into short-term loans and debit cards as well.

Bricks and mortar The inspector general also noted several reasons why the Postal Service might be able to help those on the margins of the American economy bank more cheaply. Start with payday lenders, whom Sanders and other proponents see as the villains in the dark tale of unconventional financial services.

Maintaining a large volume of customers at each storefront is crucial for payday lending, according to a study of the industry published by the Federal Deposit Insurance Corporation. With more customers, lenders are able to defray the costs of keeping the lights on through lower interest rates. The most profitable payday lending branches have been open for a while and have established a base of customers in the neighborhood. The study found that on average, payday lending firms earn about nine cents on every dollar they loan.

The Postal Service already has locations all over the country, though, and everyone who walks in to buy stamps is a potential customer.

Another advantage is less tangible than bricks and mortar: trust, an invaluable resource for any financial institution. The Postal Service rates highly among government agencies in public opinion polls.

Perhaps above all, the Postal Service is an agency of the federal government. If borrowers failed to repay loans, the Treasury Department could seize their tax refunds at the end of the year, allowing post offices to limit their losses and offer more favorable interest rates than payday lenders.

Stiff rates Those seizures would be part of another, more dour aspect of postal banking.

People have neighborly feelings about their local post office, and proponents argue that postal banking could protect the public from loan sharks. Yet as the inspector general’s report makes clear, going to the Postal Service wouldn’t exactly be like borrowing $20 from your grandma. In a hypothetical example considered in that report, the Postal Service offers loans at no less than 25 percent interest and seizes borrowers’ money come April 15 if they don’t pay up.

The inspector general argues that 25 percent interest is still far cheaper than the fees charged by payday lenders, typically equivalent to 400 percent at an annual rate or even more. It’s hard to know whether Treasury’s strong arm, combined with the Postal Service’s existing infrastructure, could reduce costs enough to offer customers even that rate.

One way the Postal Service could control costs would be by lending only to borrowers who have a good chance of repaying, said Mehrsa Baradaran, a legal scholar at the University of Georgia who has long advocated for postal banking.

She said that if the Postal Service begins lending money to Americans, the program shouldn’t depend on funding from taxpayers to remain solvent.

“We’ve got to honor market principles,” Baradaran said. “We’re not going to offer a subsidy here.”

Some economists worry that because every borrower is potentially a voter as well, any public agency lending money will hesitate to deny loans for political reasons.

“We will always have higher rates of default here, because we don’t have investors with their money at stake,” said Robert DeYoung, an economist at the University of Kansas.

In any case, if the Postal Service were to underwrite loans, it wouldn’t really be competing with payday lenders at all. Underwriting takes time. Many people patronize payday establishments because they need cash immediately, said Eva Wolkowitz, an associate at the Center for Financial Services Innovation, which studies financial products.

Instead, the postal loans (at least as described by the inspector general) would be more akin to installment loans — another, more obscure type of short-term loan. Unlike a payday loan, installment loans are paid back in several increments, rather than in a lump sum. While there is a wide range of interest rates on installment loans, they generally cost less than payday loans.

Pawnshops and more Besides installment and payday loans, there are all kinds of alternative credit available, which is another limitation of postal banking. For the most part, postal loans wouldn’t offer consumers a real alternative to these other forms of credit.

Wolkowitz and her colleagues have estimated that Americans spent $103 billion on alternative financial services in 2013. Yet only about $15 billion of that amount was spent on the forms of credit comparable to the proposed postal loans. You can see the distribution of these loans in the chart below.

“I don’t think the post office would go into the business of operating a pawnshop or loaning out vehicles,” Wolkowitz said.

Payments and savings Much of retail banking has nothing to do with lending, though, and post offices could offer some of those other services.

The Postal Service could take advantage of existing networks established by other post offices abroad to help immigrants wire money cheaply to relatives at home. The agency could offer savings accounts, as it did in the past, along with basic debit cards to help customers manage their money safely and cheaply.

There would be competition, though. The basic debit cards known in the industry as reloadable prepaid cards are quickly becoming popular. Many of them allow customers to cash their paychecks without a fee and offer protection from overdraft charges. The cards are issued by major banks and retailers. Some charge nominal monthly fees. Others, such as the Bluebird card issued by Wal-Mart and American Express, don’t.

If any entity can match the Postal Service for bricks and mortar, it’s likely Wal-Mart. And Mike Moebs, the founder of the economic research firm Moebs Services in Lake Forest, Ill., asked whether the Postal Service had the technological know-how to administer the cards effectively.

“They’re still dealing with paper,” he said.

A public institution The debate about postal banking raises big questions. Some people probably doubt that the Postal Service can offer financial services more efficiently and cheaply than the private sectors. Others might feel that the government should ensure that everyone can take part in the modern economy, and that without savings accounts and debit cards, you really can’t.

Emperors and kings have minted coins for millennia, recognizing the benefits of a neutral, reliable and widely available mode of payment. Maybe it’s the responsibility of the U.S. government today to issue inexpensive plastic money alongside hard currency.

“Sure, we can outsource the needs of the poor to Wal-Mart,” said Baradaran of the University of Georgia. “I’d rather see the post office get this revenue.”

Revenue is one reason the American Postal Workers Union has advocated for the idea in contract negotiations with the federal government. At the same time, Mark Dimondstein, the union’s president, argued that the post office has been an important part of civic life in American towns for centuries, and postal banking would help sustain that tradition.

“The post office will be fulfilling its mission, in an ever deeper way, of binding the people together,” he said. Postal banking “just makes the entire public institution that much more vibrant and that much more vital.”

Written by Max Ehrenfreund of The Washington Post

(Source: The Washington Post)

College Student Blames Parents After She Blows $90G College Fund

Provided by 401(K) 2012/Pixabay
Provided by 401(K) 2012/Pixabay

This college student deserves an “F” in accounting after she blew through a $90,000 college fund on expensive clothes and a trip to Europe and now has no way to pay for her senior year, a predicament  she blames on her parents.

The 22-year-old woman detailed her financial woes on an Atlanta FM-radio show whose wisecracking hosts derided her spendthrift ways and whose listeners belittled on Twitter as the millennial who was giving millennials a bad name. Kim, who did not mention her last name or her school, told “The Bert Show” that it was all her parents fault for not showing her how to manage her money.

“Maybe they should have taught me how to budget a little better, a little more carefully,” she told the show the other day. “They never sat me down and had a real serious talk about it. They said, ‘Here’s your college fund, it’s for classes only.’”

Dr. Keith Ablow, a psychiatrist and member of the Fox News Medical A-Team, told “Fox & Friends” Sunday that Kim’s parents do share part of the blame.

“Not necessarily for failing to teach their daughter financial regimens and accounting, but because they didn’t teach her character,” he said.

Kim said her grandparents set up the college fund for her years ago. She contacted “The Bert Show” after the school had just mailed her the tuition bill for her senior year, according to Yahoo’s financial news website. She explained that she was short about $20,000 for her final two semesters.

“I just wasn’t very good with my budget,” she said. “I also used it to budget for school clothes, stuff like that. My college break money…Maybe I should have not done that.”

Kim said she also used her college tuition money on a European vacation. “The Europe thing I thought was part of my education and that’s how I tried to justify that,” she said, according to Yahoo!

In another call, the young woman said her parents told her there was nothing they could do for her because they didn’t have any money. She accused her father of being a “little bit of a jerk about it” after she told him she was broke.

“They’re not being honest with me, saying they don’t have it because my father has worked for like a million years and they have a retirement account,” Kim said.

She said her parents suggested she take out a loan with the credit union. “And I’m like, ‘How am I supposed to do that?’” she said.

The next day Kim told the show she went down to the credit union after all to apply for a loan. She said the loan officer told her she would need her parents as co-signers because she didn’t work and didn’t have collateral.

Kim told the show her parents wouldn’t co-sign unless she got a part-time job.

“I don’t know. Maybe I’ll tell my parents I’ll be a stripper if they don’t co-sign,” the woman said.

In a fourth call to the station, Kim said her situation had improved. Her loan had been approved and she was looking for a job, as much as that pained her.

She was also still blaming her parents.

“I know they’re trying to teach me a lesson blah, blah, blah and character building, but like I hope they realize that this can have such a negative effect on my grades and as a person,” Kim said on the air.

Written by Fox News

(Source: Fox News)