Protecting Your Money on Vacation: 8 Easy Tips

The summer vacation season is nearly upon us. While vacationing can be a relaxing retreat from everyday life, it can also be source of anxiety and worry for many travelers. Whether flying to an overseas destination or venturing to a neighboring state or town, make sure you safeguard your valuables. Losing your money and travel documents is the one sure way to spoil an otherwise great trip.

So you are able to fully enjoy your special time away from home, here are eight basic tips to protect your money while on vacation:

1. Clean out your wallet. Most people carry more credit cards than they need or will use while on vacation. Go through your wallet before leaving to eliminate useless cards and never keep your Social Security card or number in your wallet in case it becomes misplaced or stolen. Keep your documents securely on you. Make sure your wallet, purse, passport and other documents are not easy targets for pick-pockets and thieves. Utilize your front pants' pockets, zipped pockets, money belts and avoid a swinging purse or bag that could easily be snatched. And only bring the cash you'll need for that day's outing.
2. Document financial and travel information. Along with a copy of your passport and travel itineraries, make copies of all bank cards and credit cards you will bring on your travels and leave them at home with a trusted family member or friend.
3. Maintain organization. Even though relaxation is a priority on vacation, do not lose track of simple things. Keep your bags organized and close to you to prevent theft. And make sure to double check your hotel rooms or cabins for any belongings before you check out.
4. Communicate travel plans to bank and credit card companies. Most card companies will freeze your cards if they notice unusual activity.  Give them a quick call before you leave to let them know when and where you will be traveling. This way, your cards will work when you need them to. Take the companies' contact information with you in case of an emergency.   
5. Research foreign countries before traveling. The U.S. Department of State has informational sheets on every country in the world, describing details such as currency regulations, crime, security and emergency contact information to familiarize you on your destination prior to leaving.
6. Decide how you will make major purchases. Because most credit cards have a zero-liability policy, it is smart to use a credit card for major vacation purchases, as you will not have to pay anything for unauthorized charges if the card becomes stolen or lost. However, many companies also charge foreign transaction fees for usage. Also, some destinations do not honor Travelers' Checks or have readily available ATMs so have a plan on how to get cash and/or pay for meals, entertainment and hotels. Keep in mind that some credit card companies charge foreign transaction fees.   
7. Utilize the hotel safe. Your valuables are not necessarily safe in your hotel room, so make sure to use the provided safe. Lock away copies of your financial information, extra cash, credit cards and your passport when not in the room.
8. Review all purchases. Look over all purchases and withdrawal records after returning home from vacation to make sure everything looks correct and to be able to address any concerns immediately.

Effectively Save for College

*adapted from FDIC Consumer News

Investing in a college education can be one of the most important decisions an individual and a family makes. But, it is also a known fact that college educations are not cheap. The U.S. Census Bureau reports that on average a college education could earn a graduate up to 60 percent more than a non-graduate, making it an irreplaceable asset. As budgets for higher education continue to increase across the country, saving for college becomes an even more daunting task. However, there are some manageable ways to put some money aside before its time to start applying to colleges.

Begin planning and saving as early as possible. Luke W. Reynolds, Chief of the FDIC's Community Outreach Section states that an effective way to minimize the sticker shock of a higher education is to begin planning and saving as early as possible after a child is born.

Estimate the cost of your college education. Because estimating the future cost of an education may be challenging and complex, there are several online calculators to aid you in the process. The U.S. Department of Education offers a college calculator at www.studentaid.ed.gov under "College Savings Calculator."

Research saving options and what's best for you. Some college saving options come with incentives such as a significant tax refund, but no matter what option(s) you pursue, it is crucial to fully understand the associated risks, restrictions and any expenses prior to investing. A local financial advisor, like those at Skowhegan Financial Services can help you review options and design a customized plan to help you save for tuition and college expenses. These plans may include:

Section 529 college saving plans: Offered traditionally by state governments, 529 college saving programs hold many of the same tax benefits as Individual Retirement Accounts. These college saving programs are divided into two types; traditional savings plans and pre-paid tuition programs. Traditional savings plans involve contributing money into FDIC-insured deposit accounts or into investments while pre-paid tuition programs allow investors to lock in today's prices for future tuition at selected universities. Maine's 529 plans are known as the NextGen plans and you can pick information up at any branch of Skowhegan Savings and meet with a representative, or learn more online by visiting http://www.nextgenplan.com/. 

Scholarships and grants: As it gets close to graduating and choosing a school, research programs available to students who are outstanding academically, involved in community groups or other extracurricular projects. Many local organizations offer scholarships to offset the costs of tuition, books and other expenses to reward those with good grades and interest in various activities including sports, music, art, languages and many others.

Most parents want their children to lead a successful and fulfilling life, and young adults want the same; a sound education is a great way to achieve this. Looking for additional information from the Department of Education and the FDIC on saving for college? Check out www.mymoney.gov/category/topic1/going-college.html.