“So, you've started my 529 college savings plan, right?” (Photo Credit: CC BY-ND/Janielle Viggiano/Dr. Boyce Family Finance)

The earlier you begin to save for a child’s college education, the better. A 529 college savings plan enables you to watch money grow tax-free until it’s time for college. Particularly if a child doesn’t qualify for scholarships, a 529 plan can be quite useful.

Recession creates 529 bidding war

Many 529 plan administrators noticed that the recession had kept cash-strapped parents from contributing to their compound savings accounts. Hence, fees began to drop, which resulted in a 529 savings plan price war in which the consumer is the real winner. Money goes into conservative-mix, age-based portfolios – which function much like mutual funds – and the payoff comes when the child reaches college age. These 529 plans must have state sponsorship, and each state typically has more than one sponsored plan – some have as many as five.

However, cream tends to rise to the top. Here are some of the best 529 college savings plans available, according to consumer advocate Clark Howard:

Utah: Utah Educational Savings Plan Trust

Iowa: College Savings Iowa

New York: New York’s College Savings Program – Direct Sold

The best of the rest

Alaska: University of Alaska College Savings Plan

Arizona: Fidelity Arizona College Savings Plan

Arkansas: Gift College Investing Plan

California: The Scholarshare College Savings Plan

Colorado: Direct Portfolio College Savings Plan

Connecticut: Connecticut Higher Education Trust

Delaware: Delaware College Investment Plan

Georgia: Path2College 529 Plan

Idaho: Idaho College Savings Program (iDeal)

Illinois: Bright Start College Savings Program Direct Sold Plan

Indiana: College Choice 529 Direct Savings Plan

Kentucky: Kentucky Education Savings Plan Trust

Louisiana: Start Saving Program

Maine: Next Gen College Investing Plan – Client Direct Series

Maryland: College Savings Plans of Maryland – College Investment Plan

Massachusetts: U.Fund College Investing Plan

Michigan: Michigan Education Savings Program

Minnesota: Minnesota College Savings Plan

Mississippi: Mississippi Affordable College Savings Program

Missouri: MOST (Vanguard)

Nevada: The Vanguard 529 Savings Plan

New Hampshire: Unique College Investing Plan

New Mexico: The Education Plan’s College Savings Program – Direct Sold

North Carolina: North Carolina National College Savings Program (Vanguard)

North Dakota: College SAVE 529 Plan

Ohio: Ohio College Advantage 529 Savings Plan (Vanguard)

Oklahoma: Oklahoma College Savings Plan

Oregon: Oregon College Savings Plan (Vanguard)

Pennsylvania: Pennsylvania 529 Investment Plan

South Carolina: Future Scholar 529 College Savings Plan – Direct Sold

South Dakota: College Access 529 – Direct Sold

Texas: Texas College Savings Plan

Vermont: Vermont Higher Education Investment Plan

Virginia: Virginia Education Savings Trust

Choosing the best 529 plan for your child

Consider age-based portfolios, which start strong but gradually become more conservative as the goal comes into view (the child’s age approaches 18). Another option is a Coverdell Education Savings Account, where money can be saved at a tax advantage either for college or private school grades 1 through 12. The annual limit is $2,000 and you have to manage the investment package yourself. Coverdells do not require state sponsorship. You can sign up for a Coverdell at most any bank or broker. Independent 529 plans are also available, where tuition at participating colleges are paid at current prices, to guard against the inevitable future price hikes.

Sources

Clark Howard

Private College 529 Plan

Comparing 529 college savings plans

Couples fighting over money is tragic. Life is hard enough. (Photo Credit: CC BY-ND/Media Anarchist/Guerilla Blog)

Loving relationships are built on a foundation of trust. For couples to live happily ever after, they must be able to trust one another with sensitive information, including knowledge of personal finances. If a couple isn’t on the same page – if they’re fighting about money – dark times lie ahead. Jill Gianola, a registered financial advisor with the National Association of Personal Financial Advisors, has some advice for how couples can best avoid money arguments.

Know your money personality

Using money wisely means different things to different people. Some see money as a path to short-term happiness, while others view it as a sign of future security. Once you understand how you and your partner view money, you can begin to form a meeting of the minds when it comes to planning your finances. Hopefully, your money personalities are reasonably compatible.

Share feelings and experiences

Rather than using a credit card statement like a cudgel to subdue your overspending mate, come down from the pulpit and share your feelings. Even talk about how you learned about money, and encourage your significant other to do the same.

Set aside a quiet time and place to talk with your partner about money attitudes. This is not the time to drag out the credit card statements or lecture your partner. Instead, talk about how money was handled when you were growing up. Share your fears and talk about what you hope your money will accomplish.

Talk about your savings goals

There are always larger financial goals on the horizon, such as funding a home, buying a car, or preparing for education or retirement. If you stay focused on the long-term goals as a couple, you can more easily commit to saving enough each month to reach those goals within a reasonable time frame. Thinking long term and knowing you can achieve your goals brings a confidence melts away a great deal of stress.

Your own private slush fund

This is nothing nefarious. Each partner should have some of their own money socked away, for them and only them. Use it for eating out with friends, or whatever impulse expenses that don’t fit into the larger budget.

Go for the switcheroo

If your money personality is significantly different than your partner’s, all may not be lost. An exercise in empathy could do the trick. Take a week to switch roles. If beloved is a binger and you’re a hoarder, try some role reversal and see what happens. Once the binger gets a close look at the books, perhaps they’ll see how much damage regularly unchecked impulse can do. Just make sure they pay the bills during the process.

If all else fails, call in the cavalry

If arguing over money simply can’t be helped, a neutral third party may be the answer. A financial planner can help arguing couples to define their goals with greater clarity and lay out an effective strategy. The next step beyond that would be couples therapy, as money probably isn’t the only issue on which you and your mate clash.

Sources

National Association of Personal Financial Advisors

SmartMoney.com

Couples, stop fighting about money

When divorce hits your eye like a big pizza pie, that's when you wish you had a prenup. (Photo Credit: CC BY-ND/Ohio Prenuptial Agreement)

The April 29 royal wedding of Prince William and Kate Middleton is fast approaching, and amid the usual fanfare surrounding the fairy-tale ceremony, consumer advocate Clark Howard noticed something curious. There’s a great deal of urging in the U.K. media for Prince William to sign a prenuptial agreement before the wedding. Contracts specifying the division of assets are encouraged by many financial planners, particularly when property and wealth are involved.

What is a prenuptial agreement?

Regardless of the nomenclature – prenuptial agreement, prenup, prenupt or premarital agreement – a prenup is a legal contract signed before a marriage or civil union. While the terms of the agreement can vary, specifications for how community property and spousal support are to be divided in the event of divorce are most common. Provisions for child guardianship and forfeiture of assets in the event of indiscretions like adultery may also be present.

Postnuptial agreements are similar to prenups, but are formed after a couple is married.

Divorce is a fact of life

One in three first marriages and at least half of second and third marriages end in divorce, reports Bankrate, so financial experts say prenuptial agreements are a good idea.

“Marriage is not just an emotional and physical union — it’s also a financial union. A prenup and the discussions that go with it can help ensure the financial well-being of the marriage,” said New York City financial adviser Nancy Dunnan.

Contrary to popular belief, a couple doesn’t have to be Prince William and Kate Middleton for a prenup to be practical. If a person has managed to sock away a nest egg, protecting it is worthwhile.

“Those are sometimes the most jealously guarded assets because it has taken a lot of hard work to accumulate a small amount,” said Iowa lawyer Joseph Zwack, author of “Premarital Agreements: When, Why and How to Write Them.”

Signs you should have a prenup (or postnup)

According to Bankrate, if any of these things apply and you are about to marry or are already married, consult with an attorney:

• You own a home, business, stock or retirement funds
• Your business venture may lead to a large increase in income
• You may be receiving an inheritance
• You have children or grandchildren from a previous marriage
• There is a significant imbalance of wealth between you and your spouse
• One spouse will be putting the other through college
• You have elderly parents who require care
• You have or are pursing a medical degree or similarly lucrative license

How to proceed if you want a prenuptial agreement

Dunnan recommends you approach the topic with your mate as early as possible, and Palm Beach County, Fla., lawyer Michael McDonough says honest discussion is important. So long as both parties have an attorney – ideally matrimonial lawyers familiar with prenups and the laws of the state in which you’ll live together – a fair agreement is possible.

Sources

Bankrate.com

Clark Howard

Wikipedia

‘He fell in love during the flight’

Ensure her education today with free term life insurance. (Photo Credit: CC BY/Vicci/Moon, Stars and Paper)

Life insurance can provide loved ones with financial security in the event of the policyholder’s death. For most people, term life insurance (aka term assurance) is among the most affordable packages, as low as a few hundred dollars per year for $250,000 worth of coverage. For customers of MassMutual Financial Group of Massachusetts, however, the price is even better. According to Bankrate.com, MassMutual is currently offering free term life insurance.

Get free term life insurance while you’re healthy

Life insurance experts advise potential customers that if they’re interested in a policy, the time to buy is when you’re young and healthy, as rates are significantly lower. If a person has dependents, life insurance is almost always a good idea.

In general, term life insurance provides coverage at a fixed rate for a limited period of time – the term period. At the end of the term, coverage expires unless additional coverage is obtained. If the insured dies mid-term, death benefits are paid to the beneficiary.

Take the MassMutual LifeBridge to free term life insurance

MassMutual Financial Group is willing to set aside $50,000 in free term life insurance that can be applied toward the education of the policyholder’s children in the event of the policyholder’s untimely death. This may seem too good to be true, but Bankrate.com says MassMutual is the real deal. Provided a person meets the qualifications for the free term life insurance policy through MassMutual’s LifeBridge program, the money can be there for the future.

The $50,000 is placed in a 10-year trust. If the policyholder dies during the life insurance term, benefits are paid directly toward children’s tuition, fees, books and on-campus room and board, whether the children are in pre-school, private school, trade school or college. After the policyholder’s death, the children have either 10 years or until age 35 to use the trust money, whichever is later.

Free term life insurance requirements

Those interested in MassMutual’s LifeBridge life insurance program must meet the following qualifications:

• Be at least 19 but not older than 42
• Be the parent or legal guardian of one or more dependent children younger than 18
• Be a permanent legal resident of the U.S.
• Be employed full or part time and have a family income between $10,000 and $40,000
• Be the only parent or guardian in your household to apply
• Be in good health in the view of MassMutual underwriters
• Have not been diagnosed with heart disease, cancer, HIV or Type 1 diabetes
• Have not abused drugs or alcohol at any time within the past 10 years
• Are not currently on probation

Blood and urine tests are required before free term life insurance approval. Suicide within two years of the policy’s effective date voids the policy. Additional information is available at MassMutual Financial Group’s website.

Source

Bankrate.com

MassMutual Financial Group

MassMutual LifeBridge brochure

MassMutual LifeBridge FAQ

Wikipedia

MassMutual LifeBridge program testimonial

Find a good financial planner to help you generate investing ideas. (Photo Credit: CC BY-ND/Brook Rushing/Creative Loafing)

People invest because they want to create wealth. Day traders may savor the adrenaline rush, but profit is the purpose. In order to invest effectively, however, it pays to know some basics. It also pays to know how not to invest.

Invest in a 401(k)

Experts advise getting started with a 401(k) plan from your place of employment, preferably with matching funds from the company. The money deposited is not taxable as long as it remains in the account, earning dividends, interest and capital gains. Let it sit for a while and gain interest for your retirement.

About.com reminds investors that a 401(k) is not an investment per se but an account that holds investments in stocks, bonds, mutual funds and more, depending upon your 401(k) variant.

Save for a rainy day

In addition to a retirement account, it is essential to establish savings. Online resources like Motley Fool or any worthwhile financial adviser can help you decide how much you should realistically be saving.

Max out your Roth or Traditional IRA

A Roth IRA retirement account gives you the flexibility to make contributions after taxes, so taxes are paid only upon withdrawal. Maxing out your contribution limits will enable you to build a fine nest egg. Even if you don’t qualify for a Roth, a Traditional IRA still grants you sizable tax benefits.

Expanding beyond the retirement account

Producing additional wealth can mean opening a brokerage account and buying stocks. Before investing, however, you should have a clear vision of your goal. Know what you want and how long it will take you to get there based upon the amount of the investment and rate of return.

Pay off your credit cards first

The interest rate on credit cards make them the worst debt consumers can hold. Take care of all credit card debt before beginning to invest in stocks.

How NOT to invest: Don’t sit on your hands

Motley Fool points out that stock market is unpredictable, but t if you venture nothing, you will gain nothing. The miracle of compound interest smiles upon those who buy in. If you invest in stocks and stop paying attention, you’re asking the market to swallow your cash. Follow your stocks and move on if and when the time is right. Remember your financial goals and don’t go too far outside your comfort zone unless you’re prepared for possible loss.

In and out is expensive

If you’re investing through a brokerage firm, frequent trading in and out of the market will produce major fees. Day traders make up for this in volume, but for the basic investor, long-term investments (ideally five years or longer) are the safer course. If short-term investment is necessary, consider money market funds or CDs, advises Motley Fool.

Sources

About.com

Motley Fool

From socks to stocks

Earn good interest on your money with a money market account. (Photo Credit: CC BY-ND/Catherine Hoyle/Wrights Business Research)

If the rate of return on a small savings account were a particle in the natural world, you’d need an electron microscope to see it. For a better rate of return, consider a money market account. While not as liquid as a savings account – you can’t cash it out as quickly – a money market account is a safe investment that you can easily sign up for online.

Money market accounts and money market funds

There are two basic variations when it comes to a money market: the money market account (aka the money market savings account) and the money market fund (aka the money market mutual fund). Money market accounts are products of a bank, and hence such an investment carries the benefit of being FDIC insured. “High-yield savings,” “Internet savings” and “electronic savings” are all terms various banks will use to refer to such accounts. And like a savings account, a money market savings account provides liquidity, although with some limitations not present in a regular savings account.

Money market mutual funds are quality, short-term investments with some liquidity and interest rates that fluctuate daily. While investors have historically had great success with money market funds in terms of safety, there is no FDIC insurance that guarantees investors will get their money back if the issuing bank becomes insolvent.

Research the best money market account or fund for you

Decide what features work best for your financial situation and shop around. Yields will vary greatly from one financial institution to the next. Check Bankrate.com to compare rates. It is important that consumers pay attention to bait-and-switch-style situations in which a bank advertises a high opening rate, only to drop it down later.

Some banks give customers free checks and access to electronic funds transfer (EFT) between a money market fund and checking account. However, the number of monthly transfers allowed will likely be limited.

If you sign up for a money market account through a brokerage, unlimited check writing, an attached debit card and EFT transfers are common features. Any cash surplus between trades and investments performed within a broker money market account are “swept” into a separate money market account that is used to pay for future trades.

Go to your chosen institution’s website

Once you’re on the website for the financial institution of your choice, the procedure to open an account will be spelled out in detail. Print, sign and mail in the required account agreement, as well as the signature card if the option for checks is available. If you have questions, a toll-free number is made available by most issuing banks. Keep in mind that if signing up for a money market account is difficult with a particular bank, it is likely that future transactions involving the account will also be more trouble than they’re worth.

Don’t forget the EFT

If you want the flexibility to be able to instantly transfer money from your money market account or money market mutual fund into your checking account – and the option is available at your bank of choice – make sure to set up the EFT link at sign-up.

Sources

eHow Money

Investopedia

Cathy Pareto, MBA, CFP, on the benefits of money market accounts

Banks and credit unions offer various types of certificates of deposit. Ask around. (Photo Credit: CC BY-ND/What is a Certificate of Deposit?)

A certificate of deposit (CD) resembles a savings account, in that a consumer makes a federally insured, interest-accruing bank or credit union deposit. Unlike a savings account, however, a CD does not allow early withdrawal without penalty. For those who want to explore opening a CD, here’s a guide to the best CD options available.

The traditional certificate of deposit

A traditional certificate of deposit is simple. The customer deposits a fixed amount of money for a specified term (from three months to five years) at a predetermined rate of interest. Once the CD comes to maturity, the customer can either cash out the money with interest or roll it into another CD term. Most banks and credit unions allow customers to add funds to a CD at any time. The downside is that the early withdrawal penalty can eliminate interest and cut into principal. Federal regulations delineate the minimum penalty level but not a maximum. Thus, financial institutions can — and d0 — charge more.

Flex for higher rates with a bump-up CD

For added flexibility, a bump-up certificate of deposit enables you to opt for a higher rate on return, even mid-term. It pays to know the going market rate of interest for a CD, so you can tell your bank to give you the bump-up. The trade-off when compared with a traditional CD is that a bump-up CD may begin at a lower interest rate than a traditional CD. Typically, only one bump-up is allowed per term.

Go with the flow and avoid withdrawal penalty

A liquid certificate of deposit enables you to withdraw money from your account, so long as the money invested at account inception remains untouched for at least seven days (the federal minimum; banks’ rules vary) and a minimum balance is maintained. While the liquid CD does offer penalty-free withdrawal, each financial institution will specify a maximum number of withdrawals per term. The interest rate on a liquid CD is generally lower than a traditional CD. Brokerage CDs are a form of liquid CD that has the benefit of professional management and a higher interest rate than a standard bank CD.

Zero-coupon for long-term upside

A long-term CD option is the zero-coupon CD. Typically at least 10 years in term, a zero-coupon CD does not receive direct interest payments during the term. That money is re-invested, then back-loaded at maturity. Bankrate.com gives the example of a 12-year, $100,000 CD at 6 percent interest. As a zero-coupon CD, this might cost $50,000 to open, but the balance will reach $100,000 at the end of the term.

Keep in mind that a zero-coupon CD may cause you to be credited with phantom income at tax time, even though you won’t have access to the funds. For the most up-to-date information on the top yields for CDs, check out Bankrate.com.

Sources

Bankrate

Bankrate: Top CD interest rates

What is a Certificate of Deposit?

Wikipedia entry for certificate of deposit

How to calculate a CD

Each year a person waits for Social Security brings a greater risk-free return for retirement than taking the money early and investing it. Image: CC Wikimedia Commons

A growing number of Americans are choosing to take Social Security early. Some baby boomers have been forced to take Social Security early because of losing jobs and spending savings during the recession, while others are compelled to collect Social Security before the program goes bankrupt. Retirement planners say fears of Social Security bankruptcy are unfounded, and Americans who take benefits early are shortchanging themselves.

Why Americans take Social Security early

In 2009, 42 percent of 62-year-olds opted to take Social Security at the youngest age allowed, according to the Brookings Institution. That number is up from 38 percent in 2007 and continues to grow, even though waiting will increase social Security benefits by up to 8 percent each year until age 70. Some of these Social Security recipients have lost jobs and given up on finding another. Others are listening to the debate in Washington about government spending cuts that includes reducing Social Security payments and raising the retirement age. However, proposals for Social Security reform look decades into the future and don’t impact baby boomers approaching retirement age. Financial experts contend that even without changing the system Social Security benefits won’t be affected until at least 2037.

Misconceptions about taking Social Security early

Americans choosing to take Social Security early often lack an understanding about how the program works or the financial consequences. Claiming Social Security at 62 nets cuts benefits by about 25 percent for a lifetime. Some people may think that not claiming benefits at 62 means they have to wait until full retirement age (which will eventually rise to age 67 for people born after 1960) to make a claim. But after age 62, people can start claiming Social Security at the beginning of the next month, so they have 96 more chances until age 70, when benefits are maximized. Another big mistake is people underestimating their life expectancy. When social Security was founded in 1935, the average life expectancy in the U.S. was 61.5. Today Americans live to age 77 on average. By waiting until age 66 to start Social Security, a person living to age 77 will collect more money over time than someone who starts claiming benefits at age 62.

Why waiting for Social Security makes sense

Some people take Social Security early while they’re still working in order to supplement income and keep health care coverage until Medicare kicks in at age 65. But Social Security benefits collected before retirement age are cut $1 for ever $2 earned above $13,560 — effectively a 50 percent marginal tax rate on income above that point. Other people start collecting benefits early while they’re still working to invest the income for retirement a few years later. But Social Security benefits increase about 7.6 percent a year from age 62 to 70. Investments providing that rate of return with no risk do not exist. The bottom line is that it makes sense to be patient. A couple earning $100,000 a year with $500,000 in retirement savings that starts claiming at 62 can expect about $50,000 a year in Social Security payments. By waiting until age 70 if they can get nearly twice that: $96,000 a year.

Sources

SmartMoney

Science Daily

Funny about Money

Taxpayers may want to avoid getting a cup of joe from this establishment. Image: CC jooray/Flickr

The Alternative Minimum Tax (AMT) was concocted in 1969 to eliminate tax loopholes for wealthy taxpayers. Since the AMT was created, it has only been adjusted for inflation twice. Each year more middle class taxpayers fall victim to the AMT, but Congress can’t agree on how to keep that from happening.

The AMT no longer serves its original purpose

The AMT was originally intended for taxpayers who made a whopping $200,000 a year in 1969 dollars. Many of these people, considered fabulously wealthy at the time, managed to avoid paying any federal taxes. More than four decades later, it’s the middle class who has to deal with the AMT because while the rest of the federal income tax system has been adjusted for inflation, the AMT hasn’t. For example, current tax brackets range from 10 to 35 percent. But the AMT brackets have stayed pretty much the same–from 26 to 28 percent. Thus, the AMT no longer serves its original intention of closing tax loopholes for the wealthy. Some people have to get a loan to pay their taxes, thanks to the AMT.

Welcome to the AMT nightmare

As if the AMT itself weren’t bad enough, the AMT forces affected taxpayers to do more confusing paperwork for the privilege of paying more taxes. The AMT adds another layer of rates and more restrictive rules for tax deductions. If a taxpayer’s taxable income rate falls below the “alternative minimum,” the nightmare begins. The AMT disallows or cuts tax breaks used every year by taxpayers to lower their tax liability. Some taxpayers have to go through the hassle just to find out they’ve escaped the AMT. It’s easy enough these days to hire an accountant or buy tax software, but the AMT adds those costs to tax preparation along with the increased tax.

Taxpayers affected by the AMT

About 27 million taxpayers will be affected by the AMT for 2010, according to the Congressional Budget Office. That’s one in six who will have to pay an average of $3,900 more in taxes. That could be you if your gross income is above $75,000 and you have a lot of personal exemptions and itemized deductions. If you exercised incentive stock options, report capital gains, own a business or rent properties, beware. You need to get IRS Form 6251, keep your fingers crossed and fill it out. Best of luck.

Sources

InvestorGuide

BankRate

Investopedia

Eating out is a major convenience cost. (Photo Credit: CC BY/Christian Cable/Flickr)

Instant gratification may feel good, but the truth is that the cost of convenience is killing budgets everywhere. Whether it’s a matter of “keeping up with the Joneses” or partaking in smaller daily indulgences, impulse spending can challenge the best budgets, particularly during a recession. With a little help from Wise Bread, here are five smart spending tips that will help you tame the runaway cost of convenience.

Cut back on cleaning services

If you have the means to support small cleaning businesses in your community, then by all means keep the wheels of the economy spinning. However, maid services are definitely a luxury for most people. Do it yourself and save. You’ll even get some exercise in the process.

Cut back the cell phone bill

Mobile devices are ubiquitous these days, but for most people who don’t rely upon them for business, they are yet another cost of convenience. Land lines are cheaper, and cheap VOIP telephone services are available for people with a computer and broadband connection.

Cut back television

Thousands of channels and still nothing to watch tends to classify cable and satellite programming for many people. Not only do TV addicts think they need the variety, but some will have multiple televisions within the same household, so ingrained is the passive habit. Read a book. Use the radio or Internet for news. Go outside and exercise. These options are cheaper than television and better for you.

Cut back on your ride

Having reliable transportation is necessary for school, work and other obligations, and in well-designed cities, public transportation serves the public need. However, most U.S. cities do not have adequate public transportation systems, so having a car is helpful. For those who need a car, buy based upon need, rather than signing up for all the bells and whistles. Paying for more car than you need is a prime example of the great cost of convenience. Try riding a bicycle instead.

Cut back on eating out

Cooking is an essential life skill that many Americans, unfortunately, never learn. Simple meals are not difficult, and as MSN Moneycentral reports, U.S. families with children tend to spend $300 per month or more eating out each month. With some planning, eating out can be cut to a minimum and save recession-starved families a few thousand dollars per year.

Sources

MSN Moneycentral

Wise Bread

(Photo: Kekka/Flickr/CC-BY)

Christmas 2010 is just around the corner, and if you’re like most people struggling to make ends meet these days, you need to find creative ways to fund your Christmas gift ideas on a budget. With these easy tips, you can still get the most out of the holidays, without spending ridiculous amounts of money this season.

Budgeting Christmas gift ideas 2010

Planning your Christmas gift ideas on a budget is easy. But first things first, you need to know how much holiday money you can afford this year. Taking note of your recurring monthly expenses – such as rent, car payments, food, utilities, etc – will help you come up with a precise, reasonable dollar amount to spend on gifts.

Tip: Budget in at least $50 for unexpected expenses.

Christmas gifts on a budget

The are many fun, inexpensive Christmas gift ideas to consider. But before you go digging for any more ideas, do what Santa does and pull out a pen and paper and begin jotting down the names of everyone you plan on buying a gift for. Then, next to each name, write down the items you plan on getting for each person on that list. Remember, you don’t have to buy individual gifts for everyone; you can purchase one gift for an entire family or group. Once you are done with your list, it’s time to go hunting for holiday savings deals. The key is to plan ahead of time and stick as close to your list as possible.

Holiday hunting

So now that you have your list readily available at hand, it’s time to go hunting for the hottest holiday deals this season. One of the most convenient ways of doing this is to go window-shopping online. Using your list, query and search for each item you plan on buying. If you find a good deal, make note of it and dig deeper. You know never how much more money you can save by simply taking your time to shop.

‘Tis the season to be thankful

Planning Christmas gift ideas on a budget is fun and easy to do; all you really need is to be creative. However, Christmastime is a lot more than just gifts, cookies and mistletoes. Christmas just wouldn’t be Christmas without loving friends and family there with you. Remember, you don’t have to spend a lot of money to share fun, quality time with the ones you love most.

(Photo: grumble_bum/Flickr/CC BY-SA)

Before you go hunting for the best door-busters on Black Friday 2010, do some research. If you want the best deals, you’re going to have to plan ahead and create a game plan for the year’s biggest shopping event. Here are some Black Friday shopping tips to help you get the most out of this season.

Black Friday Tip No. 1: Do your homework

The first Black Friday shopping tip is don’t venture into the mob of crazy shoppers unprepared. Figure out exactly how much you can afford to spend. Factor in all your monthly expenses, such as food, utilities, gas, rent, etc. Once you have a reasonable dollar amount in place, make sure to stick to it. Next, go online and search for Black Friday coupons and ads. Keep in mind that sometimes listings may only tell you how much you can save on an item, not how much it is actually worth. So be very careful while you shop and pay close attention to store offerings and prices.

Black Friday Tip No. 2: Don’t forget the little guys

When it comes to Black Friday, shoppers are easily swayed by the door-buster deals offered at major retailers such as Wal-Mart, Target and Best Buy. But as BlackFriday.info puts it, shoppers will “need to get in line Wednesday night” to get their hands on their biggest Black Friday shopping discounts. With national press and an extensive list of Black Friday ads, it’s no wonder these stores are able to attract an endless flow of determined, impatient shoppers. However, you can skip the long lines and head to smaller retail stores like Office Depot, Radio Shack, Office Max and Sam’s Club, to name a few. The shopping experience is much more pleasant, as you won’t have to wait in lines quite as long or deal with over-stressed shoppers and staff.

Black Friday Tip No. 3: Black Friday shopping online

If you would rather avoid the whole shopping madness altogether, consider the option to shop online for Black Friday 2010. Many retailers are changing the face of Black Friday traditions, offering many of their discounted items directly online. What’s even more exciting is that you don’t have to wait till the actual day to start saving on the best buys. So get online and get a head start.

Ignore debt relief ads and consider getting rid of credit card debt by taking out a personal loan with a much lower interest rate. Image: CC TheTruthAbout/Flickr

If you need credit card debt relief, pay no attention to the ads on the Internet or late-night TV. The best way to get rid of credit card debt is to do it yourself, perhaps with a personal loan. Take independent action to boost your credit score faster so you can save money on future borrowing with lower interest rates.

Why credit card debt is so expensive

To find a more manageable way to pay off credit card debt, consider a personal loan. Compared to a credit card, a personal loan can have a much lower interest rate, depending on your credit score. Interest on credit card debt overwhelms so many people because not only are the rates very high, the interest is compounded daily. Some credit cards sock consumers with interest rates as high as 29 percent. Imagine having $10,000 in credit card debt at 29 percent interest. If you paid the minimum monthly payment of $250 every month it would take 143 months to pay off — that’s 12 years.

Why personal loans are so interesting

Using a personal loan for credit card debt relief can save a lot of money with a lower interest rate. Shop around for the best rate possible. Some banks and credit unions have personal loans at between 5 and 8 percent. Call at least three financial institutions. Be honest, and don’t be afraid to explain your situation. If you can manage to find a lender who will give you a personal loan at 6 percent, that $10,000 could be paid off in 45 months (less than four years) with the same monthly payment.

How good credit saves money

By getting rid of credit card debt and faithfully paying down the personal loan, a better credit score will bring many future benefits. For example, a person with good credit can get an auto loan right now for about 6 percent interest. A person with bad credit will pay about 13 percent. That amounts to thousands of dollars over the life of the loan. For a mortgage loan on a $300,000 home, a good credit score will save hundreds of dollars a month in interest and could add up to $100,000 when it’s all over.

Sources

CreditLoan.com

WTOL.com

Get yourself prepared for the winter cold -- and payday loans can help. (Thinkstock)

Winter is fast approaching, and it could be a very cold one this year. All over the country people are preparing for winter by doing their yearly car maintenance – changing the oil, checking the anti-freeze, checking their windshield wipers, getting snow tires and/or chains and anything else they need to do before the cold season settles in. These all cost money, and if you don’t have enough, thankfully there are payday loans offered to people in dire situations like this.

Don’t drive an unsafe vehicle – get payday loans instead

When you’re short on cash, payday loans can help in many different ways. Anyone who has driven throughout a harsh winter should know of the many dangers that come with winter weather. You have the icy roads to lookout for and snow blocking your view, and let’s not forget the millions of drivers who are also having a harder time driving in these conditions on the same road as you.

Winter season is the time of year you want to make sure you are most alert and prepared for anything. The only way to fully be prepared is to have your vehicle in top-notch condition and ready for anything. Without this, you aren’t truly prepared for any event that might happen.

Vehicle maintenance costs money, saves lives

It costs money to get snow tires, to replace windshield wipers, to fill up all your fluids, and if you are struggling to get by, this can be a hard price for you to cover. Don’t risk your own life by not doing it, however, and don’t allow yourself to fall behind on your bills because of it. Get payday advance loans today, and get the maintenance done early. You can get the money you need for repairs and pay it back over time. You will never forgive yourself if you wreck your car because you didn’t have something as basic as the right tires.

There is still time to get your vehicle ready for winter, and getting it done earlier is always better than later. So avoid the financial blizzard and apply for payday loans today.

Get instant approval on payday loans | Start HERE!

(Photo: Purple Slog/Flickr/CC-BY)

Can parenting make you money-hungry? Some can’t deny their children’s requests to have whatever they wish, and many go through great lengths to keep them happy. Often if parents didn’t have a lot of material possessions when they were children, they try to make up for it by ensuring their children are able to get whatever their little hearts desire. Another factor could be that they are afraid that if the kids are not given what they want, they will ultimately lose their children’s love.

Parenting influenced by the media

To make matters worse, the media play a big role in enticing children with the newest gadgets, computers, iPods, games, the latest fashions in clothing, etc., in television commercials. They are also seen in glamor magazines, teen sitcom shows, at stores and on friends wearing the latest cool brand of clothing. This adds more pressure on parents to make sure their children fit in with the rest of their peers or community. This can often cause parents to take out no credit check payday loans to cover short term spending sprees.

Raising spoiled children

Experience has shown that when children get whatever they want, they tend to become spoiled. The children, instead of showing they care and love their parents, become very unappreciative of the efforts their parents have shown in providing the gifts they want. Many of the items or latest gadgets they do receive are quickly forgotten and are no longer used or wanted.

It has often been observed that when children get whatever they want, whenever they ask for it, they typically won’t have the needed skills to cope with denials or disappointments as they grow into adults, simply because they do not understand the hard work involved in earning money. They have never had to obtain an installment loan for people with bad credit to make ends meet for the week. They may not be able to make it financially on their own and would then be forced to rely on the parents to help them through all the different phases of life. It can affect their ability to handle money matters in a marriage, and all of these are due entirely to the fact they never learned how to during their early years.

Having a Roth IRA can give your retirement fund teeth. (Photo Credit: ThinkStock)

Retirement planning is a frustrating yet necessary process, especially with the precarious position of Social Security. Here are the top five reasons a Roth IRA retirement account is for you, courtesy of Smart Money.

Make tax-free withdrawals upon retirement with a Roth IRA

A Roth IRA enables you to put your contributions in after taxes. Thus, it is unnecessary for you to pay taxes on that money once it is withdrawn upon your retirement. More money is always helpful. Payday loans are fine in a pinch, but they don’t constitute a retirement plan.

Social Security won’t enable you to maintain your standard of living

You’ve heard the debates over whether Social Security will actually continue to exist forever. But let’s assume that it sticks around, and you believe it will cover you post-retirement. The government hasn’t let you down before, right?

Wrong. It’s all too common to read something like this on a Social Security statement: “You can retire on the princely sum of $2,000 per month. You may already be a $24,000 winner!”

Roth IRA beats 401k mutual funds

A 401k retirement account gives a retiree the option of choosing from one of two different types of mutual funds. That is very limiting. With a Roth IRA, you have a greater ability to manage your retirement funds.

Flexibility is always nice

Smart Money points out that Roth IRAs give the retiree a great amount of flexibility when it comes to managing their funds. Contributions can be withdrawn without establishing a compelling cause. Furthermore, a Roth IRA can be used to save for a child’s education. There are other benefits to being flexible, too. Check with your financial adviser.

Diversity in numbers

Putting all your eggs in one basket is never a good idea, and this old saying holds true with your next egg. Some people look to both a Roth IRA and a traditional IRA or 401k in order to more readily absorb the bumps and bruises of fluctuating tax rates. It’s a sound strategy that anyone concerned about retirement should discuss with a financial adviser. Be prepared and minimize your need for short term loans.

Sources:

Smart Money

Roth IRA basics

Wikipedia entry on mutual funds

When former news anchors hawk IRAs

(Photo: LINGSTUDIO®/Flickr/CC BY)

Planning a wedding doesn’t have to require ridiculous amounts of money. In fact, there are many simple ways to plan a wedding on a budget without breaking the bank or needing a last minute cash advance. Whether your limit is $500 or $5,000, with these wedding planning tips, you can have a beautiful inexpensive wedding with memories that will last a lifetime.

Plan a wedding on a budget by cutting the guest list

To really plan a wedding on a budget, one of the first places you should look is your guest list. Cutting down the number of guests can greatly reduce the amount of money spent on caterers and food, among other costs. Each time a name is added to the list, you’re adding more tension to your budget. So don’t be afraid to skip inviting those you haven’t seen in ages or ones you can’t stand to be with for more than a minute. Don’t worry about hurting anyone’s feeling; it’s you, your wedding and your budget that need the pleasing.

Save money on a wedding dress

One of the main highlights of planning a wedding is choosing the right wedding dress. However, for those who are planning on a budget, it can get pretty overwhelming. So before you settle on a wedding dress and apply for a cash advance to pay the difference, consider your options. You can save big by shopping around and comparing prices online. There are many websites that offer a variety of wedding dresses that won’t put a hole in your wallet. And for the brides who don’t mind, perhaps renting a dress is right for you.

Wedding date and location

Where and when you have your wedding will also determine how much you spend and how much you save. The best time to plan a wedding on a budget is during off-season months, which vary depending on your regional climate. For cold-weather states, off-season savings kick in during winter and vice-versa for places with warmer climates. Planning an off-season wedding can save you big bucks because many wedding vendors are out hunting for business and are willing to offer great saving deals to draw you in. Also, the wedding location doesn’t have to be at a lavish club house or hotel. Check out local restaurants, parks and even your community college and compare prices.

Save money on food and drinks

Don’t be afraid to ask your caterer for the least expensive entrees. Would a buffet cost less than a seated dinner? Can you skip the main course and stick with just drinks and appetizers? Can you serve only wine and beer instead of having a full bar? Food costs take up a large portion of the budget, so don’t hesitate to make changes to the menu if needed.

Take out smaller low interest loans while you can

If you catch your repairs before they turn into a major job, you can afford to take out smaller, low interest loans. Plan ahead before you take out the loan, however, as you may not be able to afford to pay it back. Determine your budget before deciding on how much to take out. Look at how much you can afford, taking into account the fees. If the amount of work that needs to be done cannot be handled all at once, then decide how much work can be reasonably done with the money you can afford to take out. Maybe $100 is all you can afford, so do not take out more than that. Even if you can afford to pay back a loan of up to $500, be sure to weigh out the pros and cons first.

What to do next

After calculating how much money you need, the next step is to apply for a low interest loan. Clicking the convenient little green button is the first step to applying. You will go to a secure application form, which will then be sent to a lender. Once they review your information, you will hear back regarding their decision. All this should happen within a few minutes once you submit your information. Should you be approved, your money will be in your bank account within a few hours. Then you can get started on those home repair projects.

When all is said and done…

After your projects are complete, it will be time to pay the piper. Your low interest loan will come due before you know it. Even if it is an installment loan, the payments must be paid on time. Late fees, even with low interest loans, can eat away at your budget further. Take the time to pay them back as soon as possible.

Get Low Interest Loans | Start HERE

Sharing costs of living

Let’s face it. One of the many perks of a solid relationship is that you can rely on your partner for financial help. There may be greater joys to being in love, but who doesn’t love sharing living costs? As a couple you can split rent, take turns buying groceries, pay one cable bill instead of two or reap the benefits of a family cell phone plan. Only $9.99 for an extra line? Yes, please. The two of you, together, are a well-oiled financial machine: paying bills on time (with online bill pay, of course), paying off your credit cards, and building your credit, along with your future. No need for online payday loans here.

Breakup bill blunder

Then, all of a sudden, that well-oiled machine comes to a screeching halt when the two of you break up. We have all been there. When your world gets turned upside down, the last thing you want to worry about is paying bills. But you have to. You are obviously not a financially irresponsible person, but when two incomes unexpectedly become one, paying all your bills (and paying them on time, for that matter) can be a nightmare!

Un-break your heart — and bank

That is where online payday loans come in; these quick loans can help you stay on track until you hash out the details with your ex and re-adjust to the single life. You can start on the road to recovery by paying your bills with an online payday loan. One step at a time and you’ll be enjoying the single life once again. Remember how fun it is?

Online Payday Loans | Start your application HERE!

Understanding the important bond between money and children now will reap great results in the end. (Photo: Thinkstock)

“Money is what makes the world go ’round,” some say. To a great extent, this is a very true adage, one that has been known for many years. Money and children are the prime focus when looking for a ray of sunshine in the future. They are the adults of tomorrow, the ones who will be making the final decisions when our days are over. But how well will they manage? Can you affect the bond between money and children, and could it provide a better outlook for their financial futures?

Money and children – the earlier the better

Many adults these days are struggling through financial problems, big and small. The recent recession has proved that even the most responsible individuals can fall flat on their faces with a single blow. What about adults who were never taught the true value of money? Where are they now financially? Are they repeatedly stuck from one pay day to another? One thing’s for sure, without the proper understanding of money, financial disaster will be the only outcome. That’s why it’s absolutely crucial that you start teaching your children about money when they are still young.

Not only will they begin to develop strong saving habits, but they will also learn to make smart purchases and understand the true meaning of “investment.” As they advance into their adult lives, this “understanding” will slowly develop into a powerful instrument that will secure financial stability and help them achieve success in multiple of ways. Isn’t this something you want for your children’s future? If so, start teaching them about money now.

The man in the mirror

“Monkey see, monkey do” – that’s how children are, it’s true. Do not underestimate the brilliance of a child. Don’t forget that children will take into account how you manage money. They learn a lot just by watching you and your personal financial dealings: spending, withdrawing, cashing, saving, etc. So be a role model for your children and set a fine example. Pave the right path for them to follow and remember, always allow room for mistakes. Surely you’ve made a few of them yourself.

Creating a strong financial future

It doesn’t matter where you come from, rich or poor, the focal idea regarding money and children is still the same. How well you train your children about money is what will determine their financial futures. The time and effort you invest today in teaching your children about money will reap great results in the long run.