It's That Time Of Year Again

Contribute to a 529 plan before New Year's and save money on your Pennsylvania income taxes

Meeting deadlines and fulfilling last minute responsibilities are not foreign to many individuals during this time of year. This is the time of year people rush to make year end contributions to 529 college savings plans. Pennsylvania residents have until December 31, 2010 to make contributions that can possibly count towards the 2010 tax year. Contributions can be made online or by mail. In order to receive credit for the current tax year, your deposit must be received online or postmarked in the current year.

The state tax benefit for Pennsylvania tax payers includes a $13,000 tax deduction per beneficiary (future student) for contributions made to any 529 account. If you are married, you can deduct up to $26,000 per beneficiary each tax year provided you and your spouse have taxable income of at least $13,000 each.
There are two programs within the state of Pennsylvania which include the Guaranteed Savings Plan and the Pa Investment Plan. The difference between both plans is with the Guaranteed Savings plan you are purchasing a tuition level where the plan guarantees your savings will keep pace with rising tuition costs. The Investment Plan allows you to invest in the stock market through a variety of low cost investments offered by Vanguard.
You can make deposits by sending a check, money order, or contribute online through electronic bank transfers. The fees to participate in both plans are reasonably under 1 percent and account maintenance fees may also apply.
There are some rewards and scholarship programs associated with the plans. Upromise Rewards is a rewards service that allows you to receive a percentage of your total amount spent at various companies in a rewards account; then contribute the funds accumulated to your 529 plan. Of course you will need to participate in a plan affiliated with Upromise. The SAGE scholars program enables you to earn tuition discounts at more than 200 participating private institutions. The future student needs to be under the age of 16 and the account owner has to be a Pennsylvania resident at the time of the 529 is opened.

Watch What You Buy At The Dollar Store!

When I was checking my email via Comcast I thought "oh no not the dollar store too". There are certain items you should be wary of buying for your family when getting your shop on at your local dollar stores. Check this out from Fox News.

Making Qualified Withdrawals For School

http://www.mahoganybutterfly.com/

It’s that time of year again when the kids head back to school. The thing is the little ones are not the only concern. Your eldest may be returning to college this fall and that usually means withdrawals from education savings plans. Read on for a few tidbits on making necessary withdrawals from your Education Savings Accounts (Education IRAs) and 529 plans.

So what exactly are qualified education expenses? The IRS definition says "qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution." For those of you who own ESAs (Education savings Accounts also formerly known as Coverdell IRAs) there is slightly more flexibility with what items are considered qualified. For example you can withdraw funds for uniforms, computer technology, equipment and even software strictly for educational purposes. Other items covered are tuition, fees, books and supplies for children in Kindergarten through college. With 529 college savings plans uniforms are not on the list and funds can only be withdrawn for college.

The IRS recently made changes allowing withdrawals from 529 plans for purchasing of computer equipment, technology and even internet access while a student is enrolled at an eligible educational institution. Save the list from the school showing items your kids will need. Also hold onto the syllabus from the high school or college professors showing the books and supplies needed to successfully complete the course. Keep all receipts. I repeat, KEEP ALL RECEIPTS. This is the CYA portion folks. In case there are any questions or concerns you will have your back up.

Remember you can withdraw funds from your education plan federally tax free when funds are used for qualified education expenses. For additional information on qualified education expenses check out the following sites:

http://www.irs.gov/publications/p970/ch02.html#en_US_publink1000204337
www.savingforcollege.com

Five Things You Need To Buy Now if You Haven’t Already

urbanog.com

1.       Down Comforter and Quilts

The best time to grab these bedroom cover ups were smack dab in the middle of summer just when the 90 degree and up temps just hit the scene. All is not lost you can still find a steal on comforters and the like at your local Ross, Homegoods and similar cheaper than department spots. (You may also want to check those department stores too, they have sales often ie Macy’s)

2.       Fall Shoes and Boots

Okay there is still time left to grab a decent pair of shoes/boots for the Fall and Winter. The other thing is a lot of last years trends are still carrying over into this Fall season. Online stores are actually giving the usual departments stores and malls a run for their money. Check spots like 6pm.com and urbanog.com.

3.       Winter Coats

Go get that if you haven’t already. Fall coats are out and about and there probably are a few sales here and there, but nobody is thinking about hot winter coats right now. It’s still close to 100 degrees out most places. So that means good sales on winter coats.

4.       Summer Sandals for next year

Summer sandals are a hot commodity now since almost everyone is slashing prices on summer sandals. This is the precise time when shops focus on the Fall items. This means you can grab a cute pair of sandals for as little as $13 bucks. Click here and check out this cute pair as an example.

5.       White jeans, Tunics, Summer Dresses

Go pick up a few more summer items. Yes, you heard me right. The following items are summer must haves that can be worn into the Fall/Winter season as well with the concept of layering.

(White jeans, Cargo pants, Summer Dress, Silk Mini skirts, and Khaki colored Bermuda shorts) 

Happy Hunting!

mahoganybutterfly.com

Great Tips From Author Jeff Yeager Who Wrote The Cheapskate Next Door

The author of the Cheapskate Next Door offers up some great tips on living below your means, saving on car maintenance, the unbelievable divorce rate among couples who live a frugal lifestyle and ways to save on everyday costs. From the TODAY show.

Visit msnbc.com for breaking news, world news, and news about the economy

Cheap Summer Stress Busters

It’s officially summer, the time when folks travel to unseen destinations and return to the office with pictures of glorious travel experiences. All the while your pockets are bleeding. But have no fear. Just because you are not able to escape to Egypt this summer or enjoy a week long cruise to Australia doesn’t mean you cannot partake on a stress free vacation. Take a daycation. 

Go to the park and just bird watch, read the latest novel from your favorite author, or simply just be. Enjoy nature. Be still. Take part of the natural environment and observe the atmosphere.  Kick off your shoes, lay out a blanket and bring along a small cooler packed with cool drinks and a few snacks. Crank up your ipod, lie down and gaze up into the sky.

Call the girls and organize a hookie day. You remember Senior Cut Day. Well it’s like that but as a grown up. Plan a relaxing barbecue on the patio or deck. Have your favorite wine selections, foods, and kick back. No kids, no husbands, just the girls.

Take in some mellow tunes or explore various creations at an area concert or festival. Check your local newspapers to find out what free or low cost events might be happening within your area. Grab a lawn chair and your camera then throw on your comfy flats and head out to the event.

Spend a solo day at the beach. You only need yourself, a few beach supplies such as a beach towel, sunglasses, beach chair, beach umbrella, and a small cooler for snacks and drinks. You may also want to take along that ipod and a few reading favorites. Dig your toes in the sand, listen to the music of the ocean and relax.

Vacation should be a mental rest, a time to reboot and rejuvenate. You do not need to necessarily travel across the globe to do something as simple as that.

mahoganybutterfly

Cheap and Fun Craft Idea

Need something to do with the kids? Are they preschool/school age? Then try your hand at this nifty little arts and craft project. I tried this with my kids at the church nursery this past Sunday and they absolutely loved it. Whether you have them create colorful button beings (bugs) with pipe cleaners or caterpillars with colored clay you can be certain they'll have a boatload of fun. All you need is the following items:

Clay (colored)
Toothpicks (for shaping)
22 gauge Copper Wire (I used bread ties which worked just fine and much safer)

Here's the link to the instructions to this project. Enjoy!
http://familyfun.go.com/

Five Must Read Money Saving Resources

There are so many websites, magazines, radio shows, and programs out there today that promise to give you the low down on all the penny pinching tips you can imagine. I don’t know about you, but the average person is on their grind nowadays and has but little time to spend online, watching television, and flipping through magazines. These books and blogs make the top 5 list of must reads that deliver the goods to keep you from spending too much money in today’s slow reviving economy.

Dining With The Dollar Diva

Spending the $10 to $12 bucks to buy this book seems well worth the investment. You get a book full of delicious recipes full of ingredients that cost $1.00 or less. You can't beat that. The author Elizabeth Fisher was featured on 6abc and talks about her book that was published last month. With the continued funk of the existing economy this book couldn't have come at a better time. What a great savings tool allowing families to cook up tasty meals on the cheap.

How To Be A Budget Fashionista: The Ultimate Guide To Looking Fabulous For Less

With a 5 star rating on Amazon.com this book is a definite must for the average woman who doesn’t have the disposable income to waste on their threads. This book gives you the scoop on where to shop for inexpensive fashions and which labels are wallet friendly yet chic. You learn how to continue stacking your cash without compromising on style. There are tips on everything from beauty items to clothing plus the shopping tips are priceless.

10,000+ Ways To Live Large On A Small Budget

This book gets straight to the point providing money saving tips on travel, mortgage expenses, beauty items, and cell phone bills. It offers creative and fun tips on saving money. The creator of wisebread.com     delivered the goods in this book and it is a definite must have for every frugal lady.

MommySavers  ( http://mommysavers.com/)

Kim Danger is the brainchild behind this fabulous website created for all the mothers seeking bargains for everyday living when it comes to maintaining the family. Mommysavers.com gives you everything from the latest deals from various companies to forums where moms share tips on where to buy the cheapest items from retailers and their personal experiences on bargain hunting. Basically this site is a one stop resource for frugal moms or moms seeking to jump on the money saving bandwagon.

Fab Finds Under $50 (http://www.fabfindsunder50.com/)

This site has the key fashion tips a girl needs on where to buy and what trendy items to buy on a budget. You get pictures, great information from the Q&A section of the site and also suggestions on how to wear various fashion items. The best post is the one on how to shop consignment. There is even an inspirational calendar with pictures showcasing must have low cost wardrobe pieces. A lot of blogs serve up a bunch of fluff but this is one blog that offers resourceful penny pinching fashion advice.

See the original article here

Holiday Time = Savings!

Memorial Day is not just for celebrating our soldiers who gave their lives to keep our country safe and habitable but also a great time to save on various purchases and necessary maintenance. This weekend is a great time to furniture and appliance hunting since many furniture chains and appliance stores will offer great bargains and even those outlet spots. Compare the discount prices to those Costco and BJ Wholesale outlet prices to see who comes out on top. Also it's a great time to get that oil change, inspection, and handle other car issues since many auto shops are offering up deals since most folks travel during the Memorial Day holiday. Check out these deals from auto chain CJs Tires.

CJs Tires Deals for Memorial Day Holiday

Free 16 oz Iced Coffee at Dunkin Donuts tomorrow

Tuesday, May 11, is Free Iced Coffee Day in the greater Philadelphia region all day at Dunkin’ Donuts restaurants in Southeastern Pennsylvania, Southern New Jersey and Kent and New Castle Counties in Delaware!

Spot Rigged ATM Machines!

How to Spot a Rigged ATM Machine

Article from EHow.com

Criminals have found ways to obtain consumer's private bank information by installing skimmers and small hidden cameras at ATMs worldwide. The skimmer is a small electronic device that is used to capture a victim's information--such as card number, name and expiration date. Before making a transaction at an ATM machine, consider these tips to avoid having your funds and information stolen.

1. #1 Pay attention to your surroundings. Look around and watch for anyone suspicious-looking that may be observing your actions. They could be waiting inside a car or standing nearby.
   
   
   
   #2 Check around the mirror and surrounding area for any small hidden cameras. Criminals use the hidden cameras to capture the victim entering his bankcard PIN number. Criminals will make a copy of your bankcard by using a credit card encoder, which can be easily purchased online. The newly made card is used to make future withdrawals.
   
2. 
   
   
   #3 Pay close attention to the ATM card slot to check to see it appears out of the ordinary. The skimmer is inserted into the card slot at the ATM machine to capture the bankcard number. The bankcard number is obtained and stored onto a microchip located inside the skimmer. Pull at the area around the card slot to see if it is loose or comes off. If you slide your card through the card slot and it appears resistant, it could be hacked. Call the local police immediately if the area around the slot comes off.
   
3. 
   
   
   #4 Use ATMs at stores that stand alone. These ATMs are usually harder for criminals to hack and add skimmer devices because they are located in heavily populated areas.
   
   
4. #5 Ask your bank if any skimming instances have occurred at their institution. Find out if your bank uses the ADT Anti-Skimming Solution, which was created to help prevent criminals from hacking into ATMs worldwide.
   

Teaching Kids About Money and Investing

There are many ways to educate your children about finance, credit management, and some basics about saving. I remember when I was growing up, the closest I came to understanding finance was my mother talking to me about the importance of paying your bills on time. She spoke of how important it is to be frugal and save your money and not overspend on junk. Funny thing is growing up my mom always shopped at the thrift stores; buying me used clothing and picking up household items for a deep discount. I didn’t realize at the time that this allowed my mom to help me out with some college costs and that big down payment that so easily slips through your hands to the mortgage company on settlement day, or all the other countless catastrophes and emergencies that pop up along the way growing up. But my mother realized this from day one and I am ever so grateful for her sharp sense of financial awareness. Even though my mom couldn’t help and pay for everything I learned a lot from her. There is a significant value added in sharing the importance of financial awareness with our children. We can grow and share a new learning experience with our kids because we not only share this knowledge with our babies but also educate ourselves in the process and that experience is priceless. The good thing is all of the information for the most part is free. The variety of websites provide articles, games and other activities like quizzes for children of K-12 and teenagers. While most of the resources require nothing more than registration and a willingness to learn the sites are relatively easy to navigate and provide fun modules for the kids to enjoy. I have taken the time to compile the resources and websites for further investigation. I have the broken the resources down by categories. Remember no time is like the present to become financially aware and share this information with our children no matter what age.

Banking

Learning Bank: Federal Deposit Insurance Corporation (FDIC)
Website for grades K-12 created to educate and entertain children, teachers, and parents.

Banking on our future www.bankingonourfuture.org
Registration required-Operation HOPE's financial literacy program for grades 4 through 12. Learn about the basics of banking & credit unions, checking & savings accounts, insurance, credit and investments.

Finance

Kid$Inve$t
For children in grades (K-4, 5-8 and 9-12) This is from the state of Illinois. Kid$Inve$t is a comprehensive guide to the stock market, investing and money management specifically designed for young people.

Practical Money Skills for Life www.practicalmoneyskills.com
This is a website sponsored by Visa and has lesson plans for preschoolers to college that helps students practice better money management. This website has Home based Financial Literacy resources for adults, parents, and children.

Government Agencies

Federal Reserve Board: Kids Page www.federalreserve.gov/kids
This website teaches young children about the Federal Reserve. They can take a quiz to test their knowledge.

Money

H.I.P. Pocket Change: U.S. Mint http://www.usmint.gov/kids
Educational tool that includes games and cartoons for students that generates interest in coins, the U.S. mint and U.S. history.



Business/Young Entrepreneurs

YoungBiz: Teens www.youngbiz.com
Their mission is to empower youth with entrepreneurial, business and financial skills through innovative education and real world experience.

Teens and Money Management

It All Adds Up www.italladdsup.org
Website sponsored by American Express for teens who want a head start on their financial future. They have online games and simulations to help teens learn about credit management, buying a car, paying for college, budgeting, saving and investing. For example they have an excellent module which shows teens the truth about how long it actually would take to pay off a credit card balance.


Young Money Magazine www.youngmoney.com
A national magazine for young adults ages 18-25 that focuses on money management, entrepreneurship, careers, investing, technology, and travel.

National Endowment for Financial Education: Teen Resource Bureau
The program is dedicated to improving financial literacy among teens. This website encourages teens to take an active role in understanding the basics of personal finance.

How Do I Start Saving For My Children's Education?

First and foremost you need to figure out what the heck your intentions are. Let me explain, why are you choosing to save. Do you want to stash away money for education purposes like private school for example. Will this money you sock away for education be geared for elementary school, high school, or college? What about saving for general purposes like if your kid eventually gets married or wants a car to travel to and from home in while attending college if they commute or go to an out of state school, or just a first time home purchase. Perhaps you just want to set up a n account so they can have money set aside for them if they want to pursue a non college required career like being self-employed establishing their own business. Once you have figured out what you are saving for the next thing to consider is what type of savings will best meet your needs. There are so many savings vehicles out there and it is easy to get confused and make the worst mistake of all. Give up and not act at all. The various types of savings you could consider are ESAs known also as Coverdells, UGMA/UTMA accounts which are also called custodial account, there are also guardian and custodial accounts and 529 plans. There are prepaid tuition plans. Well I know it can be overwhelming deciding which one is best for you. There is plenty of help out there for you.
The following links below are great sources full of helpful information and are my favorites.

Vanguard College Savings Tools
College Savings Tutorial
Financial Aid Information and Tips

Upromise has $10,000 prize to go toward college

How about Upromise. Heard of that? Well Upromise is a program that allows you to take some of your money from purchases you make, like 2-3% and have those funds deposited directly into a Upromise Rewards account. Over time these deposits can really add up and after the balance reaches a certain amount, Upromise will begin transferring those funds to your 529. (Only a 529 managed/affiliated with Upromise). They also offer a savings incentive called UGIFT where folks with 529s can encourage their family and friends to make contributions to their child's 529 account. Check out www.upromise.com for more information on some of these programs. Anyway they are currently having a contest that can earn you $10 grand towards college!  (posted on walletpop)
Upromise has $10,000 prize to go toward college

Seasonal Shopping Is Best For Major Savings

This Shopping by the Calendar tip by Bankrate.com is a good reminder of when is the best time to get major bargains on items such as TVs, school supplies, kitchen supplies, clothing and vehicles.

Recipes with Ingredients That Cost $1 or Less!

Spending the $10 to $12 bucks to buy this book seems well worth the investment. You get a book full of delicious recipes full of ingredients that cost $1.00 or less. You can't beat that. The author Elizabeth Fisher was featured on 6abc and talks about her book that was published last month. With the continued funk of the existing economy this book couldn't have come at a better time. What a great savings tool allowing families to cook up tasty meals on the cheap.

Let's discuss Qualified Education Expenses

So what exactly is qualified education expenses? Let's look at the IRS definition which says "qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution." http://www.irs.gov/publications/p970/ch02.html#en_US_publink1000204337
Now for those of you who own ESAs (Education savings Accounts also formerly known as Coverdell IRAs) there is slightly more flexibility with what items are considered qualified. For example you can withdraw funds for uniforms, computer technology and equipment and even software that is strictly educational only, tuition and fees, books and supplies for children in Kindergarten through college. With 529 college savings plans uniforms are not on the list and the computer equipment? Yes, recently added per the IRS "  Qualified tuition program (529 plan). For 2009 and 2010, qualified education expenses include expenses paid or incurred for the purchase of computer technology, equipment, and Internet access to be used by the beneficiary and his or her family while enrolled at an eligible educational institution. For more information, see Qualified education expenses in chapter 9."  So we know tuition is a go obviously...but the certain related is definitely the gray area. Always think required for attending the school. Keep those lists from the school (if any) showing items your kids will need, the syllabus from the high school or college professors showing the books and supplies needed to successfully complete the course. Keep all receipts. I repeat, KEEP ALL RECEIPTS. This is the CYA portion folks. In case there are any questions or concerns you will have your back up.

Lose weight not money

It's getting warmer and the weather is beginning to make it a great time to utilize the outdoors by including nature into your exercise regimen. There are a combination of things you can do to shed the pounds and stash the extra cash you would normally spend on a fitness facility, away in that rainy day account or childrens fund. Some of the items you will need to have when creating your own fitness environment are the following:

A jump rope
2  pound dumbbells
5 and 10 pound dumbbells (or large bleach container filled up with water)
A balance ball
A yoga mat
A resistance band
A weight ball
A hula hoop

You can purchase these things over time. Find out if you can use the outdoor track at your local high school. Visit the parks in your neighborhood and look out for hiking trails. Check your your cable programming and see if they have exercise programs (on Demand). There's FitTv if you have digital cable. The library has great fitness DVDs. Scour stores like Ross and TJMaxx for fitness dvds too. When combining your own workout routine at home with outdoor activities like hiking or power walking on the walking trail at the park you cannot go wrong.

Save Money on Entertaining The Kids

Birthdays and Other Special Occasions, who has the extra money these days lying around to cover all the  miscellaneous expenses? Well fear not KTULTV  has dished the juicy juicy on ways to throw fabulous birthday parties and entertain the kids without breaking the bank. Watch and take notes.

What is the 1099Q all about?

The 1099 reports income besides wages, salaries and tips. The 1099Q reports distributions from ESA (Education savings Accounts) also formerly known as Coverdell IRAs and 529 plans. You also will see information regarding  a trustee to trustee transfer if you rolled over assets from one 529 college savings plan into another. If you made a qualified withdrawal from your 529 or ESA then generally you don’t report the distributions on the 1040 tax return as income, but if you made a withdrawal for reasons other than qualified higher education expenses than that is another issue altogether.  Consult your tax advisor and also check out the following links for additional helpful tips and information.

http://www.irs.gov/pub/irs-pdf/p970.pdf

http://www.savingforcollege.com/articles/record-keeping-for-your-529

Five Ways to Get Extra Cash Now

Get out the computer and begin your research. No need to spend hours googling different websites to locate gigs in the following areas. I will set you up right now. First of all keep an open mind and realize the economy still sucks. Now a lot of the jobs available out here today could be in fields you don't possess the credentials in. Until you you finish your education or while in search of another career move, or just to add some flexibility to your current situation, like becoming a new mother or mother for the second time, a layoff, or transition read on for some helpful tips.

#1 Housekeeping and House sitting.
Instead of working for a home cleaning service, try your hand out starting your own home cleaning gig. You can gather several clients and obtain references and begin cleaning homes on a regular basis. Head to the dollar store or Walmart to purchase the necessary items to begin the task. Order business cards from www.vistaprint.com and check out opportunities on sites like www.care.com and www.sittercity.com (You'll see these sites listed many times)

#2 Childcare/Nanny opportunities
If you have prior childcare experience either from working as a counselor at a day camp, United Way mentor, or other child mentor, daycare facility, or as a childcare provider for a neighbor or colleague at the office consider work as a nanny. There are many gigs available at sites such as www.sitter.com, www.care.com, and www.sittercity.com. You will need your First Aid, CPR, child abuse clearances and a background check. These items are not difficult to obtain.

#3 Pet sitting
Many people hate the idea of leaving their pets unattended while vacationing or traveling for other purposes. There are pet sitting facilities however they can cost a few pretty pennies that folks don't have the extra funds for in this economy. They do however have some dollars to h=give to you, and maybe even more if you have a flexible schedule.


#4 Freelancing and work at home gigs
There are many opportunities to become a freelancer. If you are great at graphic design, writing, building websites, and blogging then the possibilities are endless. Check out spots like www.freelancepulse.com and www.wahm.com to get started.

#5 Medical Studies
You can participate in medical studies offered through various hospitals, companies, and schools. They often have eligibility requirements and offer competitive compensation for participation. Check out the one below.

http://www.philadelphiaweekly.com/mailings/2832957.html

Do You Know What A 529 Plan Is?

A 529 college savings plan is a state sponsored program created by the government also referred to as a qualified tuition plan. These programs are mostly sponsored by individual states which allow anyone to contribute after tax dollars into an investment account where the money grows federally tax free. The earnings and withdrawals from the account are federally and in some cases state tax free as long as the money is used towards paying for qualified education expenses (that qualifies under federal guidelines).  The common acceptable expenses are tuition and fees, books and supplies required by the school for enrollment, room and board costs. Each plan varies from state to state and some states even offer their residents/taxpayers benefits like tax deductions and gift matching on contributions. Read on to learn about the Pros and Cons of 529 college savings plans…

PROS

• Anyone can contribute to these plans
• There are no income limits or restrictions
• No age limits or restrictions
• You can make small or large contributions
• Since these are state sponsored plans there may be a state income tax deduction available
• Simple hassle free investments offered (age based investments)
• You can change the beneficiary (future student) on the account
• Tax free growth and withdrawals for college expenses
• Low impact on financial aid eligibility
  

CONS

• Investment Risk-These accounts are not FDIC insured or guaranteed, so there is a possibility to lose some of your earnings and initial contributions.
• Potentially high expenses/fees
• If you don’t use the money for qualified college expenses you pay a 10% penalty tax to the Federal Government as well as ordinary income taxes (federal and most times state taxes)

There are also 529 Prepaid tuition plans. These programs are also sponsored by states but also by a variety of educational institutions throughout the U.S. These plans able you to lock in today’s tuition rate to use for future education expenses. You purchase units or education contracts with after tax dollars through a lump sum purchase or installments. When you need to make withdrawals for college you can redeem the units to pay for qualified college expenses and the earnings that has accumulated is also free from federal income taxes if you use the money for qualified college expenses.  There are also some benefits such as possible state tax deductions available with these programs.

Five Key Money Concepts To Teach Your Kids

#1 For kids in the age group kindergarten and up show them the various forms of money including checks, money orders, credit cards, debit cards and even gift cards. Explain what each means in as simple as possible for example if you showed them a check ask them if they know what it is and start from there. Always start off asking them what they know.

#2 Talk to them about the different types of money and how to identify various types of bills and coins. Show them a few bills such as twenty, ten and five dollar bills and a few coins and ask them what they see on the bills and coins. Help them to recognize the presidents, words and other items listed to get a grasp of how to identify with the money. Some of these concepts are taught in school but why not reinforce what the teacher has shown them?

#3 Explain cost. Show them that various merchandise costs different prices. Use items from around the house such as food items from the pantry, the DVD player, books, CDs, DVDs, shoes, jewelry, and other products to help them understand that various things cost different amounts. If they are old enough like 3rd grade and up mention how name brand items tend to cost more and why. Show them a piece of expensive jewelry and a cheap fashion jewelry item and explain the differences.

#4 Discuss where to get money. Talk about different places to obtain money from including ATMs, banks, check cashing places and even at the store when you make a purchase with a debit card.

#5 Get out the visuals. Show your children actual receipts, bank statements, and utility bills. Ask them what they see. What is it for? Remember test their knowledge of these items to determine what they already know. Perhaps quiz them on what you share and reward them with a small prize to and begin a routine with them to teach them these skills ongoing.

Tax Tip from Irs.gov

Be Sure to Know Whether You Qualify for the Earned Income Tax Credit

IRS TAX TIP 2010-22
The Earned Income Tax Credit, commonly referred to as EITC, can be a financial boost for working people adversely impacted by hard economic times. However, one in four eligible taxpayers could miss out on the credit because they don’t check it out. Here are the top 10 things the Internal Revenue Service wants you to know about this valuable credit, which has been making the lives of working people a little easier for 35 years.
1. Just because you didn’t qualify last year, doesn’t mean you won’t this year. As your financial, marital or parental situations change from year-to-year, you should review the EITC eligibility rules to determine whether you qualify.
2. If you qualify, it could be worth up to $5,657 this year. EITC not only reduces the federal tax you owe, but could result in a refund. The amount of your EITC is based on the amount of your earned income and whether or not there are qualifying children in your household. New EITC provisions mean more money for larger families.
3. If you qualify, you must file a federal income tax return and specifically claim the credit in order to get it – even if you are not otherwise required to file.
4. Your filing status cannot be Married Filing Separately.
5. You must have a valid Social Security Number. You, your spouse – if filing a joint return – and any qualifying child listed on Schedule EIC must have a valid SSN issued by the Social Security Administration.
6. You must have earned income. You have earned income if you work for someone who pays you wages, you are self-employed, you have income from farming, or – in some cases – you receive disability income.
7. Married couples and single people without kids may qualify. If you do not have qualifying children, you must also meet the age and residency requirements as well as dependency rules.
8. Special rules apply to members of the U.S. Armed Forces in combat zones. Members of the military can elect to include their nontaxable combat pay in earned income for the EITC. If you make this election, the combat pay remains nontaxable.
9. It’s easy to determine whether you qualify. The EITC Assistant, an interactive tool available on IRS.gov, removes the guesswork from eligibility rules. Just answer a few simple questions to find out if you qualify and estimate the amount of your EITC.
10. Free help is available at volunteer assistance sites and IRS Taxpayer Assistance Centers to help you prepare and claim your EITC. If you are preparing your taxes electronically, the software program you use will figure the credit for you. If you qualify for the credit you may also be eligible for Free File. You can access Free File at IRS.gov.
http://www.irs.gov/newsroom/article/0,,id=106429,00.html

Email Safety for Kids | eHow.co.uk

Email Safety for Kids | eHow.co.uk

Ten Ways to Save Money this Winter

1. Get a new beauty regimen.

You can go to a beauty school to get dolled up. Skip the $50 plus hair appointments and $30 pedicure treatments not to mention shelling out like $25 for nail refills or full nail sets. Who has this kind of money in these hard economic times? Try a beauty school. Empire beauty school offers many pampering services that won't be too hard on the wallet. For example I went there recently and got a relaxer treatment, wash, blow- dry, style and even a deep conditioner was thrown in all for a measly $28 bucks. They offer various hair treatment services like coloring and highlighting, nail services, facial treatments, and even prom and birthday packages (nice gift ideas). Check out an Empire in your area at http://www.empire.edu

2. Conserve home energy!
Put the plastic on the windows. Don't let your heat seep out through window cracks. Last winter, I placed plastic window coverings on every window in my place and I could definitely tell the difference. You can purchase plastic window coverings from a spot like Walmart or Home Depot. If you don't mind the extra work, what I will do this winter season is purchase a box of those thick clear plastic (contractor) trash bags from Home Depot and cover my windows with that.

3. Crockpot Delights.
Try cooking your roast or oven stuffer roaster, stew or chicken parts in a crock pot. It saves you more energy instead of cooking in the oven (using gas or higher amounts of electricity) and it also tastes better (the meat is so tender, it actually falls off the bone) and makes for better gravy.

4. Don't just bargain shop on Black Friday.
Why should Black Friday be the only day to get some bargains? Lately there have been deals everywhere. For example now may be a good time to whip out those gift cards that were passed on during the holidays or birthdays because you will certainly rack up now more than ever because of the economy. Stores everywhere have some good sales. For pampering check out your Bath and Body Works, Victoria's Secret, and even when these spots aren't having a good sale try Target or Ross, TJ Maxx for some deeply discounted smell goods for the body. Make sure to check online and the flea markets are still happening even during the frigid months. Never underestimate the power of consignment shopping also. The consignment shops have the cutest and original handbags (they are good vintage clutch bag spots). There is furniture with a few dings and scrapes that can easily be refurbished are usually housed here and also some appliances like a good iron or crock pot for cooking those fabulous stews this season.

5. Ladies: Shop like a Man
We always laugh about how our brothers, husbands, boyfriends, fathers know exactly what they want when they head to the mall and then park their hind quarters on the nearest couch or chair to wait ever so patiently while we spend hours looking around and trying on stuff we probably don't really need. Well men have the right idea. If you plan and have an idea of what you need before you head to the mall, you are less likely to spend more money than you intended.

6. Sign up for Consumer Reports
If you are contemplating purchasing some big ticket items for the house or looking for a cable service provider change, cell phone, almost everything, even advice on how to save money around the house you should pay a small $30 bucks for consumer reports. You can access the wealth of helpful information on their website. http://www.consumerreports.org

7. Coupons, Coupons, Coupons
I have been told this countless times. Take the cut out coupons to the grocery store with you. The 50 cents here and there really adds up. Some grocery stores even double the savings for you. Also go onto the individual websites and register. Sometimes you will receive a coupon via email. For example Red Lobster sent me a coupon via email for a few dollars off an entree. My boyfriend's birthday was the next weekend and the savings came in handy.

8. Put Down the Plastic

If it isn't in your bank account then you cannot afford to charge it either. Stop charging your credit cards like you are Paris Hilton's first cousin. Use your debit card or cash. Another thing is make sure you are maintaining a credit card balance where you are allowing at least 50% of the credit limit to always be available. This really helps the credit score along with paying the bill on time (within the first 30 days of the due date).

9. Fruits and Veggies and other Foods

Purchase fruits and veggies at the Farmers Markets or chains like Produce Junction. Another good chain is ALDI. I also frequent Ollies for stuff like soaps, can goods, and juices. Oh and Target is a great place to buy those all time favorite cereals, but ALDI does have the best knock off Captain Crunch cereal.

10. The Power of NO

Go ahead and please read this one twice! This is the best thing for those who are really serious about saving. Yes you want to lend that family member or best buddy that extra $100 but really when do you expect to get that back and can you really afford to lend that out? Is your rainy day stash safe and sound? If you can't make your rent or mortgage will they be able to have your back? Honestly. Sometimes it's hard to say no, believe me I still struggle with this, however saying NO isn't a crime and if the person really cares for you, then saying NO once or twice so you can keep your head above water shouldn't change your relationship with the individual at all.

Remember to Live Below Your Means

People tend to feel the need to keep up with the Kardashians for many reasons. The term live below your means is a good recipe for healthy saving. Perhaps putting off buying those extra pair of shoes and jewelry for your sister friend’s gala can prove beneficial to you because you can stock that cash in a small savings investment for yourself or your child so it can grow over the next 10-15 years. The $100+ cell phone bill can be a $50 cell bill and the other $50 a month can go to the rainy day stash. Think about it.

Investing For college- The Basic features are explained-What is a 529 UGMA/UTMA/Coverdell

A great video to check out for all those visual folks out there that might prefer some audio to assist with the explanation of common college savings options. Enjoy!


Smart Investing: Investing For College

What is a UGMA anyway?

The Uniforms Gifts to Minor Act is a savings vehicle that allows anyone to contribute money to an account that is established in the name of the minor usually under the age of 18 or 21 for most states. The custodian, usually a parent or guardian, is responsible for managing the account until the minor reaches the necessary age of majority under state law. The money is contributed after taxes and the earnings do not grow free from federal income taxes. The earnings are subject to federal income taxes and capital gains tax. There are also ‘kiddie’ tax rules that apply. The money contributed is considered a gift to the minor. Although the earnings are not tax free there are some other benefits. Anyone can contribute to this type of account, there are no income restrictions, and if the child is under the age of 19 years or a full time college student under the age 24 the first $900 of investment income is not taxable in a single year. The next $900 of investment income is taxed at the child’s tax rate. The downside is that any investment income over $1800 is then taxed at the parent’s tax rate. When the minor turns 19 or is no longer a full time student under 24 years old all the investment income becomes taxable at the child’s tax rate. When the funds are withdrawn they should be for the benefit of the minor excluding normal parent expenses such as food, clothing, and shelter. Withdrawals can be for almost anything for example education, a wedding, or a vehicle for school. To compare the UGMA to other similar savings vehicles to determine if this option may be suitable visit http://www.savingforcollege.com/ to utilize the compare savings options tools.

Other ways to invest with the kids in mind-Real estate- foreclosed properties

#1 Check with your local bank.

Start with the bank where your personal accounts are held. Ask the branch manager who handles the bank’s ORE (owned real estate) inventory. Try to set up a time to meet with that individual or contact them to gather information on current bank owned properties up for sale.

#2 Look for upcoming real estate auctions.

 Check with your local city government office to inquire about vacant properties, sheriff sales and possible foreclosures within your community. Ask about any upcoming auctions involving those properties. The U.S. Department of Treasury posts details regarding seized property auctions online at
http://www.treas.gov/auctions/treasury. View the variety of seized properties located throughout the U.S. that are going up for auction.

#3 Government foreclosures

The government also offers potential home buyers opportunities to purchase government foreclosures through the Department of Housing and Development known as HUD. HUD obtains the property when a foreclosure occurs due to a failed FHA insured mortgage. Browse the list of available HUD homes for sale at the web site http://www.hud.gov/homes/. Choose the appropriate state to search for HUD homes within your particular state. Connect with a HUD approved real estate broker within your area to learn about HUD homes for sale.

Benefit from compound interest

The old adage the sooner the better proves true for saving for children because compounding interest is key. What is compounding? MetLife says, "The process of growth building upon growth in an investment. Interest that is calculated using initial principal as well as accumulated interest. This differs from simple interest which is a calculation that is based solely as a percentage of the original principal sum." (www.metlife.com) The principal is your deposits or contributions. This is especially a benefit if you want to start off with a moderate amount of money. The benefits of starting a savings vehicle for a child as early as possible is so that you have more time to earn interest. For example hypothetically you invest $1,000 today for a one year old for the next 17 years. The $1,000 is growing at 4.50% annually (4.50% at the end of each period), and you contribute faithfully $600 a year ($50 a month). You would have approximately $16.958.40 after 17 years of saving. (compounding calculator on www.moneychimp.com)You see how saving early while your child is a toddler gives you more power. That is the possibility if you're earning only 4.50% interest a year on your $1,000 investment and putting only $50 a month in. Wow! Not bad huh? This is why the earlier the better! This also proves you don't need to start off with $10,000 to save a nice little nest egg for your child's future aspirations. Hey that $16,900 could help decrease student loan debt for him or her, right? Remember three key reminders: Start Early, Make regular contributions, and Patience is a virtue!

What is a mutual fund-Simply put.

 I love this clear, no BS explanation of what a mutual fund is. This was put out by thrasher university a bit of a while ago, but hey mutual funds are still around and folks are still just as confused about what mutual funds are and aren't thanks to complicated explanations provided to consumers by the 'experts who are experts at confusing the heck out of folks' LOL. So sit back relax and check out the video and grab a few pointers :-)