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.

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.