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

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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