|
A National 501(c)(3) Non-Profit Organization
call: 1.800.763.1874 |
|
CACC Moneywise Monthly
Budgeting & Savings News You Can Bank On
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
May 2012
|
Get ahead of Summer Expenses
The school year is ending across the country which means a break from all of the expenses parents must deal with for school age children.
However, just when you think you might get a break from spending money, this is the time of year when travel plans are made and those expenses begin to add up. Vacation expenses bring airfare, gasoline, hotels, pet boarding, eating out, and other costs. Plus, the price of summer starts to add up for families with Summer camps, more day care costs, and higher air conditioning bills. You might be asking, When do I get a "financial break?" The demands on our wallets have never been greater and, only with careful planning, discipline and a real commitment to managing your money properly, will you ever feel that you are ahead of the curve. Relax a bit this holiday and take stock in your blessings. Then, get back to working your financial success plan.
Take Action!
Plan your summer expenses well in advance and look for three ways to cut your expenses. Then, invest the savings in debt reduction or put it directly into your savings account.
A great way to change your money management style is with the free Money Smart program developed by the FDIC? It's the smart way to improve your fiscal fitness!
|
|
5 Smart money moves to make by age 50
from AARP
Procrastinating on money matters is common, but as one ages, it's important to take control of personal finance matters. Below are five smart financial moves to help keep the next 50 years financially sound: Speed Up Paying Down Debt You don't want to be dealing with mounds of debt as you work those last few years before retiring. Calculate your current debt load and start paying off larger debts as soon as you can. This includes any car loans, mortgages, large credit card balances and personal loans that you've been carrying around for a while. Look At Your Life Insurance If you don't have life insurance, or think you may be underinsured, now is a good time to consider your and your family's life insurance needs. The American Council of Life Insurers recommends having life insurance coverage of seven to 10 times your salary. Lock In Long-Term Care Coverage Buying long-term care while you're healthy and locking in your insurability is way easier at age 50 than, say, age 75. Waiting to purchase long-term care insurance can mean substantially higher premiums. Better Diversify Your Portfolio At this phase of your life, you don't want financial mistakes - and particularly investment blunders - to derail your retirement game plan. So make sure you're not investing all of your savings in just a single account or investment type. After age 50, you also want to reap the greatest possible return from your investments, as these may be your highest income-earning years and the time when you have the most potential to sock away money. Set Up A Will Or A Trust. Now! It's time to create or update your last will and testament. Here are three options: pay a lawyer to create a will, use online software such as that offered at places like Legalzoom.com or Nolo.com, or use store-bought forms that contain preprinted wills. ** Do you need help creating your family budget? Talk to a CACC Credit Counselor toll-free 1-800-763-1874 or visit www.caccdebt.org.
|
|
WISER saving and investing
Get Started With These Six Ideas:
- Save as much as you can - starting right now!
- Find creative ways to reduce everyday expenses
- Plan to keep working longer
- Take a second job or work extra hours, and put as much as possible into savings
- Plan to start collecting Social Security after age 65, not before
- If you have equity in your home, find out about a reverse mortgage
from the Women's Institute For A Secure Retirement (WISER)
_______________________________________________________________________
If you have the desire and the ability to make extra payments towards your DMP, contact CACC Customer Service to coordinate making the extra payment. Since your DMP is set up to pay a certain amount each month changes must be handled properly to make sure you do not get removed from the Creditors DMP.
CACC Customer Service: 1-800-763-1874 Do you know someone who would benefit from money management strategies and information? Please forward this email to your friends and family! |
|
Paying for Baby!
How to handle the high costs of being a parent
By Maisie Knowles
A recent report from the USDA estimates the cost of raising a child from birth to age 17 is a staggering $287,000. This represents a 25-percent increase over the past decade, thanks to the rising cost of groceries and medical care. The kicker is that this amount doesn't include the expenses associated with pregnancy and delivery.
Just to bring a baby home from the hospital requires a few must-have items for new parents. These are only the bare basics a mom will need to get out of the hospital with her new baby (based on average costs):
Car seat - $100
Clothing - $50
Diapers - $72 (one-month supply)
Wipes - $20 (one-month supply)
Crib with mattress & sheets - $230
Bottles (unless breastfeeding) - $60
Formula (unless breastfeeding) - $105 (one-month supply)
Hospital bill - $15,000 (uncomplicated delivery, no insurance)
TOTAL: $15,637
Add a little extra cash to cover typical items baby and mom may need within the first couple months and that brings our grand total to: $17,400
Ultimately, deciding to start a family is a big decision. Many women say they're waiting until they're financially stable. This is a smart move, but it's tough to think you'll ever be ready for a bundle of joy that will cost six figures. Before you give up on parenthood completely, you should know these seven ways to cut some costs.
1. Buy used furniture
Places like Craigslist, Freecycle.org and your local classified ads are a great place to find used furniture. Be sure to check the condition of the piece and for safety features, such as the spacing between crib spindles and locks on the rocker. Older models won't have these updates.
2. Visit consignment clothing stores
Stock up on baby clothes by using your local consignment clothing store. Babies grow quickly so many parents sell their gently used children's clothes. I've even found items with tags still attached!
3. Register for more
Create a registry through Babies R Us and put everything you think you'll need on that list. After your delivery date, Babies R Us will send you information about purchasing the rest of the items on your list at a discount.
4. Join Amazon Mom
Save up to 20 percent on diapers and wipes by signing up for Amazon Mom and putting your diapers, wipes and formula on auto delivery. Along with your Amazon Mom account, you'll receive Amazon Prime benefits including exclusive discounts and free two-day delivery for three months.
5. Look into cloth diapers
Take some time to consider cloth diapers, especially if you're thinking about have more than one child. A few things to seriously consider are the initial cost of purchase and the convenience and environmental impact of disposable diapers. See DiaperDecisions.com for a breakdown of the costs associated with cloth diapers.
6. Start a babysitting co-op
After the novelty of being a new parent wears off, you'll want to have some time away from your little bundle of joy. Instead of paying for a babysitter, organize a group of moms and share babysitting responsibilities. To start, divide tokens evenly among the group, then charge each mom one token per child per hour to babysit. Each mom can then call on other moms within the group and pay with tokens to get free babysitting.
7. Just ask
Many parents are more than happy to get rid of their baby gear once they've decided their family is complete. Don't be afraid to ask to buy an item off a friend. They may surprise you and simply give it to you. Also, ask your pediatrician for sample packets of formula. They have closets stocked with samples received from manufacturers and will be happy to unload some of their stash.
Maisie Knowles is a working mother of two with three-year's experience writing on parenting and partner issues.
Thank you for choosing Consumer Advocates Credit Counselors. We welcome your comments and suggestions for future issues. Please email education@caccdebt.org with your ideas.
|
|
Start on 2012 Taxes now? YES!
According to Certified Public Accountants nationwide, now is a perfect time to begin preparing next year's tax return to make the preparation process easier and possibly decrease your tax bill.
CPAs suggest the following 6 strategies for 2012:
Step 1: Plan appropriate action for possible expiring tax credits in 2012. Uncertainty lingers over whether Congress will extend all or some of the tax cuts and incentives set to expire at the end of the year (2012) and what taxpayers should know when planning for next year. So far, no resolution is in sight and answers may not come until after the November elections.
Step 2. Plan to maximize deductions. Before you put away that tax file, go through the forms and look for frequently overlooked deductions to keep in mind for next year -- such as the child-care tax credit (even summer day camp counts if your child is younger than 13 and you and your spouse work) and out-of-pocket charitable contributions (such as 14 cents a mile to do charitable work or the cost of ingredients for a casserole you make for a nonprofit's soup kitchen).
Step 3. Clean up your files. Keep your tax returns forever. But you can shred most of the supporting documents -- such as canceled checks and receipts -- after three years (you can generally be audited only for up to three years after the tax-filing deadline). Keep the paperwork for at least six years if you're self-employed.
There are a few exceptions: Keep records of stock purchase prices and dates as long as you own the shares; retain Form 8606 recording nondeductible IRA contributions until you take IRA withdrawals; and hold on to home-improvement records as long as you own the house (which could reduce the capital-gains taxes you owe when you sell).
Step 4. Consider consolidating your accounts with one brokerage firm before tax time next year, which also could result in lower fees. The new firm should be able to provide the paperwork and make the transfer process easy.
Step 5. Don't wait to make your IRA contribution. Too many people wait until the last minute -- April 15 -- to make their IRA contributions, then have a tough time coming up with enough cash to contribute the maximum amount. Instead of waiting until the deadline of April 15, 2013, consider making your 2012 IRA contribution now. If you're getting a tax refund, contribute some or all of that cash to your account. Or you can sign up to have money transferred automatically from your bank account to your IRA every month, which makes it so much more manageable to contribute the money.
If you have any self-employed income, consider making contributions to a Simplified Employee Pension or solo 401(k) throughout the year, too.
Step 6. Adjust your withholding. If you got a big refund this year, you may feel pretty good right now. But it means that you actually gave the government an interest-free loan for the year. Wouldn't you rather have more money in each paycheck instead of having to wait another year to get the cash? It's easy to boost your paycheck by adjusting your withholding. Just fill out a new W-4 form and submit it to your employer, and you'll start to see the extra money right away.
The California Society of CPAs (www.CalCPA.org) is the nation's largest professional, non-profit state association
Always consult your tax professional when completing your taxes.
Have a money saving idea that you'd like to share? Send it to us for possible publication in this newsletter!
|
|
Paying the high cost of education
As the debate continues regarding student loan interest rates a just-released survey reveals 35% of consumers are carrying $1000 or more in student loan debt.
Western Union Payment's Money Mindset Index survey also reveals:
78% of women will have debt related to their education of $5,000 or more versus 74% of men.
12% of women and 2% of men say they will have zero debt related to their education.
Approximately one in four graduating students with education debt will move back home after graduation.
12% of students say they "may not graduate" because of the amount of debt they owe.
21% said that their grade have suffered due to the amount they owe in debt.
It was recently reported that at Bowling Green University, for example, 62 percent of graduates have debt that averages $31,515, the highest among Ohio public universities that publish the data.
In an effort to reduce the costs of college and the long-term debt that results after graduation, more and more families are opting for less expensive options to help their children attend college. A popular option is to attend the first two years enrolled in a less expensive Community College. Public Colleges and Universities have seen a big jump in applications and enrollment.
Because federal loans (Stafford and Perkins) are cheaper and have more flexible repayment options, students with financial need should always exhaust their federal options before looking to private loans. No matter how far away college is for you or your child, it's crucial to start adhering to a savings plan now.
Start saving now for college. Though it might feel painful at first, research shows that students and parents who stow away set levels of college cash at specific intervals are more inclined to feel confident about their ability to pay for college.
|
|
|
Millions of people are suffering with Debt stress!
They need your Help! CACC is a non-profit, IRS approved 501(c)3 educational and counseling organization. Our expenses and operations are supported through generous contributions from corporations and individuals like you. Will you please consider providing some financial support so that we can continue our mission? The donation you make today will help fund debt relief programs, education and client services while providing help and hope to thousands. Won't you help us give the gift of Debt Relief?
YES, I'd like to help fund CACC's Debt Relief and Education efforts with a contribution of:
( ) $25 ( ) $50 ( ) Other $___________.
Please Mail your Donation to:
CACC Education Development
23123 U.S. 441, Suite 107
Boca Raton, FL 33428
Thank you for your generosity! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Support CACC while you save up to 85% on your favorite Magazines! Now that's a Win-Win!
Click Here |
|
Free Workshops and Seminars 
As a non-profit Credit Counseling and Financial Education organization, CACC is dedicated to reaching out to the community. CACC provides financial education seminars and workshops at community centers, local organizations, and companies.
Popular Topics Include:
- Managing Money in Tough Times
- Creating and Using a Spending Plan
- Managing Debt
- Fighting Identity Theft and Financial Fraud
- Understanding Your Credit Report and Boosting Your Credit Score
- Creative Ways to Teach Kids About Money
- How to Get Out of Debt
Ask about customized seminars for your group, staff, congregation, organization, or club!
Call 1-800-763-1874 or e-Mail: education@caccdebt.org
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Consumer Advocates Credit Counselors, Inc. is a 501 (c)3 non-profit credit counseling organization providing credit counseling, financial education, and debt management services. Please visit our website at: www.caccdebt.org
Additional consumer resources:
Free Birthday Gifts
Stay Safe On-Line
US General Services Administration Federal Citizen Information Center
National Drug Abuse Hotline 1-800-622-HELP
National Domestic Violence Hotline 1-800-799-SAFE
Suicide & Depression Hotline 1-800-999-9999
National Council on Problem Gambling 1-800-522-4700
Fair Debt Collection Practices Act
Homeowners Hope Hotline for Mortgage Counseling and Assistance 1-888-995-4673
Benefits.gov
Learn about a variety of Government Benefits, how to qualify and how to apply.
Supplemental Nutrition Assistance Program (SNAP)
SNAP is the new name for the federal Food Stamp Program.
Temporary Assistance for Needy Families (TANF)
TANF is designed to help needy families achieve self-sufficiency. States receive a block grant to design and operate their programs to accomplish the purposes of TANF. These are:
-assist needy families so that children can be cared for in their own homes
-reduce dependency of needy parents by promoting job preparation, work and marriage
-preventing out-of-wedlock pregnancies
-encouraging the formation and maintenance of two-parent families.
Medicaid
Medicaid is health insurance that helps many people who can't afford medical care pay for some or all of their medical bills.
Good health is important to everyone. If you can't afford to pay for medical care right now, Medicaid can make it possible for you to get the care that you need so that you can get healthy and stay healthy.
Supplemental Security Income (SSI)
is a Federal income supplement program designed to help aged, blind, and disabled people, who have little or no income.
It provides cash to meet basic needs for food, clothing, and shelter.
Low Income Home Energy Assistance Program (LIHEAP)
If you can't afford to pay your home energy bill, your home may not be safe, and you may be at risk of serious illness or injury. The LIHEAP may be able to help keep you and your family safe and healthy.
National School Lunch Free Lunch Program (NSLP)
Established in 1946, The National School Lunch Program (NSLP) is a federally assisted meal program operating in public and nonprofit private schools and residential child care institutions. It provides nutritionally balanced, low-cost or free lunches to children each school day.
Federal Housing Assistance/Section 8 (FPHA)
Public housing assistance was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. Public housing comes in all sizes and types, from scattered single family houses to high rise apartments for elderly families.
Home Affordable Modification Program (HAMP)
888-995-HOPE
If you are struggling with your monthly mortgage payments or have already missed a payment, now is the time to take action.
|
Contact Us:
phone: 1.800.763.1874
CACC Money Wise Monthly Editor in Chief:
Mike Schiano, "The DebtBuster"
'Til Next Month, Consumer Advocates Credit Counselors, Inc.
This newsletter is designed to provide accurate and authoritative information with regard to the subject matter covered. This information is given with the understanding that neither CACC nor the Editor and Writers are engaged in rendering legal, accounting, or other professional advice. Since the details of your situation are fact dependent you should always seek the services of a competent professional before making any financial decisions.
Copyright©Consumer Advocates Credit Counselors, Inc. 2012. All Rights Reserved.
Use of all or part of this newsletter is allowed with proper attribution and link: Source: Consumer Advocates Credit Counselors, Inc. www.caccdebt.org
|
|
|
|
|
