Reduction of the Federal Pell Grant

The Reduction of Federal Pell Grants for the upcoming academic year of 2011-2012 has already been passed by the House of Representatives.  This came to a vote in the United States Senate on MARCH 4^th. 

The Pell Grant Program is the centerpiece of Federal Funding for higher education. This cutback passed in the House would seriously erode opportunities to take advantage of educational programs at Colleges across the county. 

There has been a facebook campaign created by The National Association of  Student Financial Aid Administrators (NASFAA). Students were encouraged to join the FACEBOOK CAMPAIGN and describe how cuts to the Pell Grant program would negatively affect students everywhere.  

http://www.facebook.com/savestudentaid

Got This In An Email...Latest Scam at the Pump

Using credit/debit card? Read this note very carefully. I did not know about the clear button, but I will be pushing the clear button before I swipe my gas or debit card and after just to be safe.
People are getting really desperate due to the constantly rising gas prices.
  A friend just told me about something that happened to one of his coworkers. She used her credit/debit card to purchase gas at the pump (like most of us do).  She received her receipt like normal. However, when she checked her statement, there were 2  $50. charges added in addition to her purchase.  Upon investigation, she found out that because she did not press the 'clear' button on the pump, the employee inside the store was able to use her card to purchase his/her own gas! To keep this from happening, after you get your receipt, you must press the 'CLEAR' button or your information will be stored until the next customer inserts their card. 
Be sure to tell all your friends/family so that this doesn't happen to them. I had never noticed the clear button but I got gas the other day and sure enough it is there.  I shall be using it from now on.

Even More Reasons To Save For Your Kids: Social Security Fund Depleted By 2037

This article from Associated Press writer Stephen Ohlemacher caught my attention while signing to check emails early one morning. Social security funds expected to be all drained out by 2037? Huh? I admit I was not surprised, I mean most financial conversations I have with those in my generation and younger visit this topic. This means we really have to beef up our future savings and triple contribute to our retirement plans and pray the stock market gods shine favorably on us. Yeah right. Some say diversity is crap but I really do not agree there. I mean the idea of stashing in not just the 401k, 403b, IRA or whatever retirement program you are contributing to is a smart choice, but also consider other investment securities, real estate, business opportunities, and other outside of the box pathways to invest. Think about it. Our children probably will not see the luxuries our grandmothers and grandfathers have had the privilege of partaking in when it comes to social security. How old will your kids be in 2037? Why not start a little stash for them now? No one's saying you need to throw $400 a week aside for them. If you got it, then do so. But $50 a week is okay too, it's something. With the social security funds being streched due to the economic downturn, baby boomers who are retiring and applying for benefits, and less and less payroll contributions you better have a plan B for your pride and joys.

Eleven Sites That Educate The Kids On Money Management

 As a follow up to the January 10th post here are 11 websites that are musts to aid the kids when learning about money. Some of the sites have quizzes, tests, puzzles, and online lessons; others have games, Q&As, videos, simulations, and print outs for use off the computer.

 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.

TheMint.org is a website that provides teachers and parents with resources to educate children about money management. 

The National Endowment for Financial Education NEFE is a nonprofit organization focused on providing financial education to mostly teens but also children of all ages.

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.

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.

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.

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.

YoungBiz: Teens www.youngbiz.com

Their mission is to empower youth with entrepreneurial, business and financial skills through innovative education and real world experience.

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.

Investment Education For Kids

There is no shortage of programs available today to utilize in helping children to understand financial education. The resources range from nonprofit organizations established to educate teens on financial literacy to government organizations which create resources for parents and children to frequent to gain a greater understanding of how money works and plays an important role in our nation.

Two of the several organizations that offer financial education for children are The Mint.org and the NEFE (The National Endowment for Financial Education).  TheMint.org  is a tool created by The Northwestern Mutual foundation  charity which is a division of Northwestern Mutual. The NEFE originated from a nonprofit College for Financial Planning. 

 TheMint.org  is a website that provides teachers and parents with resources to educate children about money management.  The NEFE is a nonprofit organization focused on providing financial education to mostly teens but also children of all ages. For younger children, the U.S. Department of Treasury provides resources on savings bonds and coins for parents and educators.

The resources available help children gain a basic understanding of all aspects of using money such as investing, saving, and spending. The interactive tools provided help children to learn the basics of money management and allow them to gain the necessary skills to help them build a solid future for themselves.

These programs are established to provide resources to educators and parents in order to aid them in teaching children financial responsibility.

You should carefully read through the instructions and guidelines on the various websites and resources to ensure the children are using the appropriate tools and games pertaining to their age group. This will prevent the information from being too complicated or overwhelming for them to grasp.

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.