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CACC Moneywise Monthly
Budgeting & Savings News You Can Bank On
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April 2013
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National Financial Literacy Month
Special Edition
April is National Financial Literacy Month and it's the perfect opportunity to refocus on some basic financial management tactics that will help you improve your financial knowledge and, at the same time, take a fresh look at your current financial situation and set, or reset, financial goals for the next year.
This is also a good month to ditch bad habits and replace them with good ones. Here are some good, tried and true tips to help you get going. If it sounds like you've heard all of these before, it's because you have. They are the basics of sound personal financial management. You may have heard them before but did you put them into practice? One goal for Financial Literacy Month is to bring awareness each year to those who are not doing as well financially as they like to be doing, that there is time to improve your financial situation no matter how long you've gone without a solid plan of action.
Save and invest
Don't underestimate your ability to save and invest. With compound interest, even modest investments now can grow over time.
Lighten your credit load
Paying off high-interest debt may be your best investment strategy. Few investments pay off as well, or with less risk than, eliminating high-interest debt on credit cards or other loans.
Boost your "rainy-day" fund
Many experts recommend keeping about six months of expenses in a federally insured account to cover sudden unemployment or other emergencies.
"Sure thing" is fine as an expression but not as an investment pitch. Promises of guaranteed high returns, with little or no risk, are a classic warning sign of fraud. The potential for greater returns typically comes with greater risk. You know the saying -- if it sounds too good to be true, it probably is.
Take charge of your money
If you don't know where it goes, start keeping track. There are plenty of tools to help you set a monthly budget and stick to it.
Pay yourself first.
Put yourself at the top of your "payee" list
Regular automatic deductions from your paycheck or bank account into a savings or investment account will keep you on track toward your short and long-term financial goals.
Know your investment self
You're the best judge of yourself. Use that knowledge to find investments that are a good match for you, based on your goals and your ability to tolerate risks.
Make sure your older investments still fit you
Take time to review your holdings and see if they're still appropriate for you. If you've outgrown them, it's probably time to sell them and buy something better suited to you.
Don't put all your eggs in one basket
One way to reduce the risks of investing is to diversify your investment holdings. Think twice before investing heavily in shares of your employer's stock or any single investment.
Ignorance isn't always bliss, especially when it comes to your account statements. Sure, it can hurt to look at statements when investments are losing value. But if you don't review your statements, you may miss problems in your accounts that are unrelated to performance. Do your homework
Asking questions about financial opportunities and checking out the answers with unbiased sources can help you make informed choices and avoid fraud.
TAKE ACTION:
Plan to change your outlook and your actions when it comes to money this year and start implementing as many of these financial success basics as you can.
Change your money management style for free with the Money Smart program developed by the FDIC? It's the smart way to improve your fiscal fitness!
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Give Yourself Credit!
Free Credit Reports
If it has been at least twelve months or more since you accessed your credit reports at no cost from the "Big Three" credit bureaus, Financial Literacy Month is a great time to get caught up to see your progress over the past year in improving your credit report.
The Fair Credit Reporting Act (FCRA) requires each of the nationwide credit reporting companies - Equifax, Experian, and TransUnion - to provide you with a free copy of your credit report, at your request, once every 12 months. The FCRA promotes the accuracy and privacy of information in the files of the nation's credit reporting companies. The Federal Trade Commission (FTC), the nation's consumer protection agency, enforces the FCRA with respect to credit reporting companies.
A credit report includes information on where you live, how you pay your bills, and whether you've been sued or have filed for bankruptcy. Nationwide credit reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.
Here are the details about your rights under the FCRA, which established the free annual credit report program.
Q: How do I order my free report?
The three nationwide credit reporting companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report.
To order, visit annualcreditreport.com , call 1-877-322-8228. Or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Do not contact the three nationwide credit reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228 or mailing to Annual Credit Report Request Service.
** 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.
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12 common Money Mistakes and how to avoid them
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by Andrea Woroch
While April Fools' Day is all about joking around, there's nothing funny about some of the foolish things we do with our finances. Even the most money-savvy consumers are guilty of one of the following follies, so read on to see if you should wise up before it's too late.
1. Hope for Big Tax Returns
In addition to rain showers and spring flowers, April represents tax season. Most of us hope for big tax return so we can pay down debt or finally buy that HDTV we've been coveting. Unfortunately, receiving a big tax return means you're withholding too much from your paycheck and subsequently missing out on income throughout the year. Use the 2013 IRS Withholding calculator to more accurately determine what the government gets from your paycheck.
2. Ignore Gift Cards
Let's be honest: How many of you still have gift cards in your wallet from Christmas? Your birthday? There's likely a reason you haven't spent it, but ultimately not using the gift card is a waste of money. Look online for places where you can sell your unused or partially used gift cards if you don't plan to use them.
3. Pay for Things You Don't Use
You wouldn't pay for things you don't use, right? You might be surprised how often this happens. Do you watch the hundreds of channels that come with your pricey cable subscription? Use all the data and minutes associated with your cell phone plan? Probably not. In fact, ABC News recently reported 80 percent of cell phone users overpay on their plans by $200 a year. Take the time to calculate what you actually use and do what you can to pay for just that.
4. Leave Money on the Table
It's understandable to want as much of your paycheck as you can get. Still, if your employer offers a 401k matching plan and you don't open an account, you're leaving free money on the table. Saving for retirement may not seem like a necessity now, but you'll feel pretty foolish later on if you don't accept what's offered to you.
5. Overdraft Your Account
Spending upwards of $35 per overdraft is a colossal waste of cash, especially since banks offer services to protect you from these noxious fees. You can tie your checking account to your savings account to avoid overdrafting altogether, or ask that your debit card be declined in the event of insufficient funds. Ultimately, keeping track of what you have in your bank account is essential to avoiding this foolish mistake.
6. Hoard Your Money
Saving money is definitely a habit you want to get into, but stuffing it between the mattresses or letting your change collection take over your cabinet space is imprudent. You can be earning more with this money by investing it, or at the very least depositing it into an interest-earning savings account. If you have a high-deductible health plan, you can divert some of your paycheck tax-free into a Health Savings Account, or deposit a portion into a 529 Savings Plan for your kid's college fund.
7. Ignore Auto-pay Accounts
Auto-pay is a great way to ensure you always pay your bills on time. However, "out of sight, out of mind" can be a foolhardy way to manage your finances. You should still review your payment details, schedules and statements to ensure you're not being overcharged and that no extra fees or services are added to your bill without your knowledge.
8. Fail to Shop around
Failing to compare the price of products and services is just lazy. Whether it's a lawn aeration or water heater repair, you should get as many quotes as you can. Ask friends for recommendations and let bidders know you're receiving other quotes. Also, be sure to shop around for products with particularly high markups, like ink cartridges..
9. Use Credit Cards without Rewards
Still using a credit card with no rewards? Not smart! If you manage your credit card spending well, you should make it work for you. Whether it's cash back, gift cards or travel points, your credit card should offer perks that help offset the cost of everyday purchases or occasional luxuries.
10. Spend Beyond Your Means
Using a credit card without rewards isn't a smart move, but using them to live beyond your means is the most foolish mistake of all. According to Bankrate , 24 percent of Americans have more in credit card debt than they do in their emergency savings. If this sounds familiar, consider making a lifestyle change to get your finances back on track.
11. Pay for Free Services
While there's no such thing as a free lunch, there are several free services you may not know about. Your ignorance is costing you, however, as paying for something you can get for free is pretty foolish! Texting, ATM fees and kids' meals are just a few examples of common freebies.
12. Procrastinate
There is such a thing as last-minute deals, but ultimately they're few and far between. Whether you're booking travel or considering opening an emergency savings, putting off planning can cost you dearly.
Andrea Woroch is a nationally-recognized consumer and money-saving expert who helps consumers live on less without radically changing their lifestyles
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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? |
50% of families in the United States don't have a plan to save for college?
One of the biggest areas of concern for American families is in college financing - according to Sallie Mae's recent How America Saves for College report, only half of families are saving for college, and only a third of them have a strategic plan to do so.
Based upon families' current savings behaviors, actual savings will amount to about half their goal amount. The rising cost of tuition is making education more difficult for families all over the country to afford. Upromise by Sallie Mae can help by supplementing savings with cash back for college on everyday purchases. Families nationwide have saved more than $725 million through the program to help save and pay for college costs.
High school graduations are right around the corner so here are Upromise by Sallie Mae's top 5 tips to help families create a secure college financing plan?
Upromise by Sallie Mae's Top Five Saving Tips:
1. Get children invested in their savings and future.
Encourage school-aged children to save money for their own education. Whether from a weekly allowance, baby-sitting or a summer job, little by little each contribution however small can add up over time and serve as a reminder of the goal to attend college.
2. Use a dedicated college savings account to save.
529 college savings plans are a tax-advantaged way to save for college. Contributions grow tax-deferred and can be withdrawn tax-free when used to pay for tuition, room and board, books, and fees. Last academic year, 14 percent of undergraduate students tapped a 529 college savings plan to help pay for
3. Earn cash for college
Sallie Mae's Upromise can bolster savings with cash back for college when you make eligible purchases from hundreds of participating companies. Joining Upromise is free and earnings can be invested in a tax-deferred 529 plan, deposited into a savings account, used to help pay down an eligible Sallie Mae college loan or you can request a check. Since 2001, Upromise members have earned over $750 million toward college.
4. Check your state for tax incentives for college
Many states provide income tax deductions or credits for contributions into 529 plans. Before you invest, consider whether your or your beneficiary's home state offers any state tax or other benefits that are available for investments in such state's 529 plans.
5. Put your savings on cruise control
Studies consistently demonstrate that savers who set up an automated savings plan are more likely to accomplish their savings goals. Automatic savings plans start with as little as $25 a month.
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.
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Family Fun for Less_________________________________________________
Courtesy of the Colorado State Extention office. Visit and read more personal finance articles here
Take advantage of local public resources:
-Spend time together at the park or local community festival.
-Go for hikes or bike rides.
-Go for a family picnic.
-Go swimming at the local pool, lake, ocean, or springs.
Take advantage of free programs offered by the library, museums, and community bands or orchestras, or other free community events.
-Check out books, music, and videos for free from the library.
Find cheaper entertainment at home:
-Have a family game night.
-Rent or borrow movies, pop some popcorn, and have a family movie night at home.
-Bake or cook together as a family.
-Read stories to one another.
-Go on evening walks together.
Help your children learn new skills and ideas:
-Teach children how to garden.
-Teach children craft skills you enjoy and spend time doing these together.
-Teach children about issues that are important, such as politics, news, the environment, or others. Are there opportunitites in the community to volunteer as a family for a cause you all believe in?
Have a money saving idea that you'd like to share?
Send it to us for possible publication in this newsletter!
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Five ways to track down a lost Life Insurance Policy
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If a family member dies and you don't know whether he or she purchased an individual life insurance policy, or secured one through a current or previous employer, there are in fact ways to track the information down, according to the Insurance Information Institute.
"Life insurance benefits are sometimes left unclaimed after a policyholder dies," said Dr. Steven Weisbart, senior vice president and chief economist at the I.I.I. "This outcome would be easily preventable, of course, if all policyholders simply told their loved ones about the existence of policies naming them as beneficiaries; however, there are solutions if they overlook this simple step."
Unclaimed Life Insurance Benefits, written by Dr. Weisbart, offers a primer on the common reasons a life insurance company and the rightful beneficiaries of a life insurance policy may occasionally lose track of one another, or why a beneficiary may not even know he or she is listed on a policy.
Here are five steps that can help you turn up useful information about a life insurance policy:
1. Look for insurance-related documents
Search through files, bank safe deposit boxes, and other storage places to see if there are any insurance-related documents. Also, check address books in case any insurance agents or companies are listed. An agent or company representative who sold the deceased their auto or home insurance may also know about the existence of a life insurance policy.
2. Contact previous employers
Former employers may have a record of past a group policy.
3. Check bank books and canceled checks
See if any checks or automated payments have been made out to life insurance companies over the years.
4. Check with the state's unclaimed property office
If a life insurance company knows that an insured client has died but cannot find the beneficiary, it must turn the death benefit over as "unclaimed property" to the state in which the policy was bought. If you know where the policy was purchased, you can contact the state comptroller's department to see if it has any unclaimed money from life insurance policies belonging to the deceased. A good place to start is the National Association of Unclaimed Property Administration.
5. Try the MIB database
There is a database of all individual life insurance applications that have been processed during the last 12 years. It costs $75 per search. For more information, go to MIB's Consumer Protection page.
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Countdown to Healthcare Reform
What is Medicaid?
Medicaid provides health coverage to more than 50 million children, families, pregnant women, the elderly, and people with disabilities.
Medicaid Is Available in Every State.
All States provide Medicaid to infants and children under age 6 with family incomes up to 133% of the federal poverty level, or FPL, ($30,656.50 for a family of four in 2012). Medicaid is available in every state for children under age 19 with family incomes up to $23,050 (100% FPL). Medicaid covers U.S. citizens and eligible immigrants.
In some states, children are still eligible for Medicaid if their family income is higher, and children in families with even higher incomes may be eligible for CHIP. Learn more about Medicaid and other programs in your state.
What Does Medicaid Pay For?
Medicaid pays for a full set of services for children, including preventive care, immunizations, screening and treatment of health conditions, doctor and hospital visits, and vision and dental care. In most cases, these services are provided at no cost to families.
Applying for Health Coverage Is Easy and Confidential
To get started, make a free call to 1-877 KIDS NOW (1-877-543-7669). When you call our free and confidential hotline, you'll be connected directly to someone from your state who will help you apply. Families will need to complete an application and provide some documents. Depending on the State, you can complete the application through the mail, over the phone, or even on line. Learn more about health coverage programs in your state.
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Your friends and neighbors are suffering with money problems!
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!
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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
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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.
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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. 2013. 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
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