ACCI Advisor Newsletter

Reclaim the American Dream!

January 2015

In This Issue

Improve Your finances in 2015

The Price of Love

Savings Tips for Students

Talking Money with Kids

Free Government Money??

Staying Healthy to get Wealthy

Quick Links...

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Helping people and families avoid debt and get out of debt is our mission and passion. This economy has brought unprecedented financial hardship on a generation of Americans who are fighting just like you to manage their way to a better financial future.

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We are dedicated to getting America out of Debt!

American Credit Counselors, Inc. is a national, non-profit 501(c)(3), Credit Counseling Education organization dedicated to assisting clients improve their personal finances with professional money management services and financial education. ACCI is committed to providing the highest level of customer service and financial accountability and is dedicated to client satisfaction.

Happy New Year!!

Let's make 2015 your best year ever financially.

4 simple ways to improve your finances in 2015

Define Financial CEO Taylor Schulte, CFPŽ Shares Practical Tips for Fiscal Well-being

According to a recent Bankrate.com study, more than 60 percent of Americans don't have enough funds to cover unexpected expenses, such as emergency room visits or car repair. While consumers appear to be budgeting more than in previous years, there still isn't enough money saved to address such sudden costs, which can significantly impact a household's financial well-being.

As we turn the page to 2015, many are exploring resolutions and putting financial health at the top of their list, along with fitness, health and spending more time with loved ones. Taylor Schulte notes that, while many set financial goals at the beginning of the year, most may not fulfill those goals due to a lack of a concrete plan or not knowing where to start.

"Just thinking about improving your finances and cutting out your morning coffee run isn't enough," said Schulte. "If you really want make changes to your personal finances this year, it's important to write down a plan and know how to tackle each area. There are a number of small things you can do that will generate great results. Jot them down on a to-do list and cross each item as you complete it. You'll be surprised how quickly it all adds up."

Schulte offers four practical tips for individuals and families to improve finances in 2015:

Increase 401(k) Contributions-the limit on employee contributions to a 401(k) plan will increase to $18,000 in 2015. For those participants over 50 years old, the limit will increase to $24,000. Take advantage of this opportunity and elect to increase your contributions starting in January. This will reduce your taxable income and increase your retirement savings. And if you haven't started contributions, now would be a good time!

Review Debt-contrary to analysts' predictions, interest rates have remained low for an extended period of time. With rates at historical lows, the trend might not last much longer. If you haven't done so already, review your current debt obligations and see if there is an opportunity to restructure them at a lower rate. This includes credit card debt, home loans, auto loans, and even student loans.

Reduce Fees-every fee you pay means less money in your pocket. Banks are often changing their rules and you might be surprised to learn you are paying a fee for something you previously received for free. Sites like Mint.com will help you track the fees you are paying and alert you when a fee has hit your account. Challenge yourself and see how many fees you can reduce or remove this year. Consider re-investing the dollars saved into a savings or retirement account.

Review Your Investments-take a close look at your investment portfolio. When contemplating a change in your portfolio, don't forget to consider how long you've owned each investment. For instance, assets held for a year or less generate short-term capital gains, which are taxed as ordinary income. Depending on your tax bracket, your ordinary income tax rate could be much higher than the long-term capital gains rate, which applies to the sale of assets held for more than a year.

"Everyone has a financial goal in mind-whether it's accumulating wealth, saving for college, preparing for retirement or taking a year-long trip around the world," said Schulte. "It's easy to put finances off, but doing so doesn't get most people to their goals. Taking small actions, however, such as bumping up your 401(k) contribution or reducing fees can go a long way to getting finances on the right track to achieve those objectives."

Define Financial is a San Diego-based independent, commission-free boutique firm, specializing in financial planning and wealth management for individuals and small businesses.

The Price of Love

62% of Shoppers Plan to Spend up to $100 on Valentine's Day

PriceGrabber.com's Valentine's survey found that 62 percent of shoppers plan to spend up to $100 on Valentine's Day, a decrease from 68 percent in 2012. However, 36 percent plan to spend more than $100 compared to 28 percent in 2012. Key findings from the survey include:

-52% of shoppers plan to spend the same amount as last year

-55% indicated the economy will have an effect on their Valentine's Day purchasing decisions in 2013

-69% of consumers said they will buy gifts from a store, up from 54% last year

-39% plan to spend money on a night out

Give yourself Credit!

Get your three credit reports for free each year by visiting www.annualcreditreport.com. Or, call toll free 1-877-322-8228.

Savings Tips for Students

Financial expert Vincent Turner of Planwise.com, a free online tool to better plan future spending, has some easy tips for students to stay on top of their finances all year long:

"Bucket" your spending. At the start of every month, look at what you earn, then allocate every dollar you plan to spend using categories or "buckets." When your 'coffee & donuts,' 'shoes & handbags,' or 'beers & burritos' bucket is used up...that's it for the month.

Start sharing. We're living in an era of collaborative consumption - and the potential savings are huge! Work out how to borrow or rent things you would otherwise buy, or rent the things you own but don't use every day (like your car!)...the sharing economy is booming, be a part of it.

Have a secret stash. College students tend to live only in the now, but just like everyone else, they need to be prepared for unforeseen spending needs. Putting just a few dollars aside each month (or stashing your holiday gift haul right now) will give you a buffer for any unexpected costs.

Don't fund your fun. Whether it's your student loan or the credit card you got at the student center, don't count on it too heavily. Your loan is to fund your education, not your fun - racking up debt will only cost you more in the long run. Be careful with credit cards too. It's tempting to "just swipe," but what you spend today will cost you more tomorrow.

Try to stick as close as you can to the rule "only spend what you have."

Get smart! You're online all the time - there's no excuse to not be using one of the many personal finance tools out there to educate yourself about your money, whether it's to manage it better (try Mint), pay off loans (try ReadyForZero), or help you visualize how you can spend it in the future (try Planwise).

Come to think about it, these tips are great for parents to follow as well!

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Want to pay off your debt more quickly?

If you have the desire and the ability to make extra payments towards your DMP, contact ACCI 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.

ACCI Customer Service 1-800-708-1335.

Talking Money with Your Kids

Talking about money with kids early on witll help properly prepare them for the future

"Money doesn't grow on trees." This saying may seem obvious, although today's youth seem to think the opposite. Who can blame them though - unlike the baby boomers the new generation of youth have grown up in a time of economic prosperity and are used to being coddled by their parents. In some past years, as many as 85 percent of college graduates have moved back home (Huffington Post).

The recent economic situation has shown us that anything can happen at any given moment and we (and our children) need to be prepared. Though it may not be possible to teach a pre-schooler the complexities behind 401Ks and credit cards, it is possible to start teaching children the importance of money at an early age. Julie Murphy Casserly (CLU, ChFC, CFP) stresses the importance of instilling good money habits in children as early as possible and offers easy conversation topics to address the issue at every age.

Pre-School
Yes, money patterns begin to formulate during the pre-school years. You can start talking to your child about money when they are 2 or 3 by explaining that everything costs money - from the food they eat, the clothes they wear, to the house they live in. These talks need to go beyond the necessities too. Explain that new toys, accessories or video games are things your family can live without. Introduce new toys to them a few at a time, rather than showering them with an over-abundance of playthings. This will help them get used to the fact that they don't need a heap of toys to be happy.

School-Aged

By the time your child is 6 or 7 years old you can start teaching them about prioritizing their money. For example, when you are at the toy store, instead of letting them pick anything off the shelf, try giving your child five dollars and letting them choose something that fits within this price tag. For parents who buy their children anything and everything, the child will expect this treatment later on in life, giving them a sense of entitlement. Ask yourself, is this the reality I want for my child 15 years from now?

This is also the point in time to show your child that money is the result of hard work. Work out a plan with a family friend or neighbor where your child will do housework or yard work for $5-$10 cash. Then give them the power to choose how they want to spend or save their hard-earned money.

High School

At this time, it is critical to create a financial collaboration with your son or daughter. Encourage them to get a part-time job to help pay for their car insurance, their gas or portions of the monthly car payment. Children should be held accountable for sharing some of these costs with their parents. Once they get that paycheck, establish guidelines on how it should be dispersed - 1/3 goes towards that car payment, 1/3 goes towards their future college fund and 1/3 can be spent on whatever they choose.

During this age, it's also important to highlight the importance of living a quality of life, rather than the quality of things that you own. Help your children understand that material things like a brand new car when they turn 16 are often a source of immediate happiness, but sooner or later, this happiness fades and they will be left searching for deeper self-fulfillment.

College

Your child is an adult now. Have an adult conversation with them about their finances and make sure they understand how credit works. Tell them about your experiences with credit card use - the good, bad and the ugly. Once kids are on their own temptations will always arise and children in this age bracket will more than likely consider opening a credit card to fund some of these temptations. Explain how credit cards can bring a false sense of financial reality. They make us less conscious of where our money is flowing and how much we are spending. Talk about how the constant struggle to earn cash to pay off debt can take a physical and emotional toll.

Chicago Healers (www.ChicagoHealers.com) is the nation's pioneer prescreened integrative health care network.

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Do you have a friend or relative considering bankruptcy? Remind them that it's a short-term solution with long-term consequences. Have them call ACCI for some debt relief advice from a certified counselor.

1-877-969-3328.

Free Money from the Government?

Many people arrive at Benefits.gov after seeing unofficial advertisements that might have them thinking that the government will give "free money" to essentially anyone for anything. The government will not give you money just because you ask for it.

Here are some facts about getting government assistance that some ads may not mention:

The government provides assistance through benefit programs that serve various important purposes, such as job training, nutritional assistance, education, health care and other needs.

In order to receive government assistance you must complete an application and meet specific eligibility requirements as outlined by each program.

Not all assistance programs provide cash payments. Assistance programs that provide payments may have conditions and limitations.

Now, what can Benefits.gov do for you? As the official benefits website of the U.S. government, we can help you start your benefits search by connecting you to assistance programs you may be eligible to receive.

Visit the homepage and try the following options:

Use the Benefit Finder - Take the confidential eligibility questionnaire. Your answers will instantly generate a list of benefits tailored to your specific needs across all assistance categories. You can also access the Benefit Finder by clicking "Start Here" on the homepage.

Browse Benefits - Have a specific need? Select "Benefits" at the top of the page to browse benefit and assistance programs by category, state, or Federal agency.

Grants

Government grants are awards of financial assistance to an individual and/or organization. Grants are used to carry out a government authorized purpose, and are not provided as personal benefits or assistance. Benefits.gov does not provide information on grants.

Visit http://www.grants.gov to find and apply for grants.

Have a money saving tip that you'd like to share? Send it to us for possible publication in this newsletter at:

education@acchelp.org

Staying Healthy to get Wealthy

5 steps to choosing Child Care

Start Early
Start looking as far in advance as you can. No matter what type of care you are considering - a child care center or care in someone else's home - finding the right child care option can take some time.

Make a Call
Begin your search by calling your local experts - your Child Care Resource and Referral (CCR&R) agency. CCR&Rs can give you the facts about child care, and a list of child care options in your area that may meet your needs. Make sure to ask your CCR&R:

-What are the licensing requirements in my area?

-How can I get information about complaints and licensing violations?

-Does my family qualify for any child care financial assistance programs?

Visit and Ask Questions
Visit the child care options you are considering. Find out about these key indicators of quality:

Adult to Child Ratio. Ask how many children there are for each adult. The fewer the children for each adult, the better for your child. You want your child to get plenty of attention. The younger your child, the more important this is. Babies need an adult to child ratio of no more than 1:4 (one adult for four infants), while four-year-olds can do well with a ratio of 1:10 (one adult for 10 children).

Group Size. Find out how many children are in the group. The smaller the group, the better. Imagine a group of 25 two-year olds with five adults, compared to a group of 10 with two adults. Both groups have the same adult to child ratio. Which would be calmer and safer? Which would be more like a family?

Caregiver Qualifications. Ask about the caregivers' training and education. Caregivers with degrees and/or special training in working with children will be better able to help your child learn. Are the caregivers involved in activities to improve their skills? Do they attend classes and workshops?

Turnover. Check how long caregivers have been at the center or providing care in their homes. It's best if children stay with the same caregiver at least a year. Caregivers who come and go make it hard on your child. Getting used to new caregivers takes time and energy that could be spent learning new things.

Accreditation. Find out if the child care provider has been accredited by a national organization. Providers that are accredited have met voluntary standards for child care that are higher than most state licensing requirements.The National Association for the Education of Young Children (NAEYC) and The National Association for Family Child Care (NAFCC) are the two largest organizations that accredit child care programs.

Make a Choice
Think about what you saw at each visit, and make the best choice for your child and family.

Stay Involved
The work isn't over when you find good care for your child. You and your child's caregiver are partners now.

Here are some ways to be involved:

-Have parent-caregiver meetings regularly, and ask questions.

-Offer to volunteer time when needed, like participating in clean up days, fixing broken toys.

-Be there for your child's birthday party.

-Visit your child at child care and read a book aloud.

-Join in special events, like field trips, Career Day, Black History Month, or other holidays.

Even if you can't get time off from work during the day, you can still check in at drop-off and pick-up times. Ask the caregiver how things are going, and how your child is doing.

Visiting and participating in events at your child's provider sends a strong message. It tells your child and your child's caregiver that you think what your child is doing and learning is important.

Questions about using Exchanges to get Health Insurance coverage? Call HealthCare.gov at 1-800-318-2596, 24 hours a day, 7 days a week. (TTY: 1-855-889-4325).

American Credit Counselors
Educational Workshops

As a non-profit Credit Counseling and Financial Education organization, ACCI is dedicated to reaching out to the community. ACCI provides free financial education seminars and workshops at community centers, local organizations, and companies.

Ask about customized seminars for your group, staff, congregation, team, or club! Call 1-800-708-1335 or email education@acchelp.org.