Budgeting, College Debt, Kids & Money, Money Management, Saving, Student Loans

Ask Chuck: How Do I Financially Prepare My Child for College?

By: Chuck Bentley, Crown Financial Ministries

Dear Chuck,

I’ve tried to prepare my daughter to handle money responsibly while she’s away at college. But, I’m concerned that peer pressure and the stress of classes will throw her off track. Any tips?

Budget-Minded Mom

Dear Budget-Minded,

Congratulations are in order for preparing her for this crucial transition. Far too many students leave home without a clue how to manage money and are vulnerable to making life-altering messes.

While most Americans assume that student loan and consumer debt is the only way to get a college education today, this is simply not true, regardless of income. I have a friend who immigrated here from China. She only had $2,000 to help her daughter when she left for college. When her daughter finished her undergraduate and decided to seek a master’s degree, her mother asked if she needed financial help. Turns out that her daughter had been able to graduate without borrowing money and still had cash in the bank. She explained that she had been saving and investing for years and had $70,000 cash in the bank before entering grad school!

Financial preparedness for college students and young adults is crucial today. Demands come from all directions and unless students understand the value of a dollar, they can blow through spending money and quickly rack up consumer debt and long-term student loan debt before they ever realize the consequences ahead.

Having raised four sons, we can appreciate your concerns but also want you to know that it is possible for our children to swim against the tide.

Set Clear Boundaries

Make sure there is a clear understanding of what you will pay for and what your student is required to cover. Typically, students are more careful with the money they have earned, so avoid robbing them of an important lesson by giving them everything.

For example, if they have a car at college, determine who will pay for gas, insurance, tags, parking, maintenance, and repairs. If they’re going to be responsible for those expenses, then they need to find a part-time job. That’s real life! If you plan to cover the expenses, have clear stipulations and terms (e.g. you’ll only cover those costs as long as they remain in school and maintain a decent grade point average). Every family situation is different, but the goal is to grow financially mature adults.

Some Practical Tips

Here are a few additional tips you may want to teach the young people in your life:

Exercise self-control. Don’t drink, smoke, or binge with money
Live like you’re poor in college and you won’t be when you graduate!
The earlier you save and invest, the more you’ll have for your future
Boundaries now grant freedom later
Be careful loaning money
Keep healthy snacks on hand and in a backpack
Use cash to avoid overspending
Avoid debt. Period. Set a goal to graduate without student loans or consumer debt.

What They Need to Know

How to use a checking account and debit card – understand bank fees
How to make deposits into a savings account – preferably at a different bank to avoid easy withdrawals
How to use a credit card wisely – pay it off in full each month
How to make a budget and keep track of expenses
The importance of good credit and how to establish it
The joy of giving and saving with intentionality
Student loans will be offered but try to avoid them

Prevent Medical Expenses

Cook healthy meals or use a meal plan wisely
Sleep, exercise, avoid alcohol and drugs
Seek a community of Godly friends
Take care of mental health: limit social media, join a church, volunteer

Practical Tips

Keep $100 tucked away in your wallet for emergencies only
Guard personal information
Know how and where to buy/sell used textbooks
How to study well, apply for scholarships, and work part-time
Know identity in Christ to withstand peer pressure, FOMO, and comparison traps
Live at home or with another relative to save dorm/apartment fees
Know how to make coffee, cook, and do laundry
Get to know the financial aid counselors
Work on campus: saves time/gas, and opens doors to deeper relationships with staff

Preparing our youth financially will give them a step ahead of most people. Diligence requires purpose, intentionality, and resolve. It requires renewing the mind and working toward specific goals. May they be filled with the understanding of who they are in Christ and the knowledge that they are stewards of what He gives.

And whatever you do, in word or deed, do everything in the name of the Lord Jesus, giving thanks to God the Father through him. (Colossians 3:17 ESV)

Whatever you do, work heartily, as for the Lord and not for men, knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ. (Colossians 3:23-24 ESV)

By discussing your daughter’s financial needs, desires, and habits regularly now, you can help her avoid the mistakes that most make plus prepare her for the next stage of her career without the bondage of debt-driven decisions.

Activities, Kids & Money, Money Management, Saving

Six Fun Ways to Save as a Family

By: America Saves

Meeting financial goals as a family can be challenging. But inspiring your family to help and contribute to a financial goal doesn’t have to be a painful process, especially when the result is an exciting vacation, a car, or college savings. Here are some ideas on how to save as a family for all those items and bucket-list experiences:

1. Gamify It!

In my family, we often make a game of who contributes to a joint family pot for that month’s fun activity. A game of Monopoly can turn into a real contest, as anyone who loses is asked to contribute a small amount to that month or week’s activity of choice (such as a meal out, or movie). Of course, contributions should be proportional to earnings – teens might contribute $5 from their part-time job or allowance, while adults would be expected to contribute much more. Still, the spirit of the game is focused on sharing and enjoying together – and because everyone has a stake, we enjoy it all so much more.

2. Making Money Can Be Fun

Every year around the holidays, my entire extended family likes to take a vacation somewhere warm, so we start planning and saving a year in advance. By each contributing to the holiday vacation fund, our money goes much farther, and we’re often able to visit really cool places we might’ve not otherwise afford. Of course, if we can easily afford to contribute our share, we do so, but when money is tight, we find fun ways to raise cash for our share of the contributions. Last year, for example, some of my cousins hosted a bake sale. Others sold items they’d knitted, art piece they’d produced, and so forth. All of the proceeds went straight into the family vacation fund.

3. Sell, Sell, Sell!

A family garage sale can be an enjoyable and rewarding way to raise extra cash for shared activities or purchases. If your family wants a new flat-screen TV, game console, or other pieces of technology or furniture, why not start by selling what you already have and don’t need? A traditional garage sale is one good way to raise cash, as is selling unused items online (this tends to be the better option for selling electronics and gadgets).

4. Match It!

Often, children’s only way to save is to use their holiday or birthday gift money. It can be challenging for kids to save money they so badly want to spend and enjoy immediately, so it’s important to offer incentives for doing so. One idea is to match dollar for dollar every bit of money they save from their gifts. That ensures kids get the immediate gratification of knowing their saved gift money is being doubled, but also enables them to feel empowered by having chosen to save and contribute to family goals.

5. The Envelope Method

When saving for multiple goals, the envelope method is an excellent way of keeping all the monies separate for their intended uses. Simply mark each envelope with a stated goal, and contribute regularly to each until the goal amount is met. For small children, it can be rewarding to contribute to smaller family goals, such as ice cream or a movie rental. A $10 or $15 goal can mean a $1 or $2 monthly contribution from their allowance. This helps children learn the value of saving, and builds confidence in their ability to do so.

6. Your Credit Union Can Help

Your local credit union can be an excellent resource for helping your family save together. From traditional savings accounts or CDs to holiday savings accounts, your credit union can help you select a financial product that can help your family in reaching its shared goals faster. For larger goals, in particular, a shared family account can be an excellent resource for keeping your family on track to realizing your financial wishes.

Family can be great accountability partners when it comes to saving! Make a savings goal, and choose a reward to celebrate once you accomplish it. Create a fun tracker so everyone can see your progress!

Kids & Money, Money Management, Saving

Saving as a Family

By: America Saves

In most circumstances, we build our financial foundation from experiences that we go through as children and youth. Sometimes when children hear their parents or other adults in their lives talking about cutting spending or saving money, they assume that the family is going through a rough patch. As appropriate based on children’s ages, family conversations about money goals, including saving and spending plans, reassure children. It is also a great way to introduce (or remind) children about the reasons we save.

Talking about family saving goals helps children understand that putting money aside for the future – whether to be prepared for unexpected expenses, for short-term goals such as summer vacation, or for longer-term goals such as paying for college – is important to you. They will also likely be interested in knowing how they can help. They may even want to set their own savings goals and be motivated to work toward achieving them!

Make Saving a Family Affair

Get your family involved with your saving plan by brainstorming ways to cut expenses in order to free up money to put toward your saving goals. Explore low- and no-cost activities you can do together as a family. Consider selling rarely used books, toys, clothes, and other items in a garage sale or other marketplace.

Here are four easy ways to make saving a priority for everyone under your roof:

1. Have a conversation

Get the whole family together, make some popcorn or hot chocolate and make talking about money fun. Keep it positive by talking about ways the family can work together to lower expenses, increase income and save money.

2. Involve everyone

Take time to explain how things that everyone in your household uses comes with a cost, like the utilities, internet, and cable. Make it an activity for everyone to review your local grocery store circular/app and identify products that you can save on that week.

3. Set a goal

Decide as a family what your financial goals should be. These could be household goals and individual goals. Is it saving for college? Is it saving for a family vacation? A car? Having a financial cushion for unexpected emergencies? Whatever you decide, make a commitment to save. Jumpstart that commitment by taking the America Saves Pledge, and we’ll help keep you on track by sending goal-based emails and texts.

4. Make a plan

Setting a goal is a great start, but how will you reach it without a plan? Making a plan to reach a savings goal requires establishing a plan for how you will spend and save your money. Savers with a plan are twice as likely to accomplish their savings goals. Get some tips and tricks about making a plan with our Save with a Plan Toolkit.

Encouraging Children to Save

Everyone in your household can play a role in the financial success of your home. A lesson all kids can learn early: the pride that comes with saving for something they want! Encouraging your child to sell toys they no longer play with, or even having a bake sale or lemonade stand puts them on the path to smart money habits. Involve children by:

Encouraging them to be aware of their energy and water use by turning off lights and electronics when not needed and by turning off the water when brushing teeth and taking showers.
Thinking about things that the family regularly spends money on and talking about if the family stills want or need the items or if they can select cheaper alternatives or perhaps do without them.
Teaching them to comparison shop and choose generics or use coupons when it makes sense.
Challenging them to suggest ways to enjoy time together as a family for less. Not sure where to start? Check out these suggestions!
Including children in trips to your financial institution (or an ATM) to deposit or transfer money into a saving account make the process real. Consider posting a running total of the dollar amount of deposits and the progress made toward a family saving goal on the refrigerator or bulletin board.

Saving money is a habit that is developed over time. In addition to letting children know that you save, help them begin to develop their own saving habit. Money as You Grow, a framework that links money-related activities to children’s developmental stages, is a great resource for conversation starters and activities for children of all ages at consumerfinance.gov.

America Saves can help you save money so you can feel confident about your finances. It all starts when you make a commitment to yourself to save. Take the first step today and take the America Saves pledge to save money, reduce debt, and build wealth over time. And it doesn’t stop there. America Saves will keep you motivated with information, advice, tips, and reminders to help you reach your goal. Think of them as your own personal support system.

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10 Back-To-School Shopping Tips that Save Money

To your kids, shopping for new clothes, gear, and school supplies may be the only good thing about going back to school, but that doesn’t mean you have to spend a fortune every year. Here are 10 great ideas for how to get everything they need and save a few bucks doing it.

Hold off buying trendier gear

Kids may love a certain lunch box or pencil case they find in July, but once they start school and see that their friends are all using another kind, they’ll beg you to upgrade them, and that only results in wasted cash.

Shop end-of-summer sales

You know as well as we do that kids wear short sleeve polo shirts all year long, so hit the big summer sales and snap up discounted duds that can be worn well into fall.

Stick to the list

The teacher’s supply list at the start of a new school year is daunting enough so don’t waste time and money on unlisted items. Extra supplies, while they may be cute, will probably never get used and just leave your pockets empty.

Head to the supermarket for basic supplies

Check weekly circulars for great deals on pens and loose-leaf paper, and get your weekly grocery shopping done at the same time. Bonus: buying everything in one place will save time and gas money!

Let the kids raid your cabinets

The kids can select home-office supplies and then personalize them in unique ways. For example, decorate inexpensive plain, white binders with digital photos by creating a collage and inserting the page into the plastic outer cover.

Host a back-to-school swap

Round up a couple of other moms with kids the same gender as yours but different ages, and host an annual clothes swap. Trade toys and books, too! You’ll save a bundle.

Plan lunch

When you’re in charge of what your child eats, you’ll save yourself money. Check the weekly circulars at your local supermarkets for sales. If turkey isn’t on sale one week and ham is, go for the ham!

Buy bright

Lost school supplies may be a given, but gear that’s hard to miss can stave off the inevitable. Pack all their pencils, erasers, and other goodies into a bright backpack or pencil pouch to keep them from disappearing.

Shop the big three

Old Navy, Gap Kids, and The Children’s Place rotate merchandise often. Ask when they do their markdowns so you can grab the deals. Also, if you see an item you bought in the past 14 days on sale later, you can get the difference refunded, you don’t need the clothing, just the receipt.

Browse craigslist.org

Yes, you can find top-quality stuff on the cheap, but you can be a seller, too. Why not get some cash for that barely worn, now outgrown brand-name outfit? Just enter your location and click on “Baby and Kids.”

By: Parenting.com

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Use the Start of the School Year to Set the Stage for Your Child’s Financial Success

By: Brittany Frost

Where did the summer go? As the school year rapidly approaches, children are preparing for the academic and social journey of the next grade level while parents are bracing their financial situation for the costs of continuing education. Parents can take this golden opportunity to go above and beyond just shopping for school supplies at Wal-Mart and, instead, show their children how to budget, save, and spend their money in order to teach them how to financially prepare for school (which will undoubtedly come in handy for college).

Alarmingly, a study released in July by the FINRA Foundation estimated that almost two-thirds of Americans couldn’t pass a basic financial literacy test, including calculating interest payments correctly (See Ref. 1). When you pair that with the fact that public, in-state college tuition, room, and board has risen 1300% since 1971 (See Ref. 2) and a recent survey showing that 75% of U.S. workers have student loan debt so high that they contribute less to their retirement (See Ref. 3), it is easy to see why parents must take every opportunity to educate themselves and their children so they do not end up in pools of unmanageable student loan debt. It is never too early to avoid the debt cycle and teach your children to financially prepare for school. Think about it: Did you or do you still struggle with enormous student loan debt? Did you avoid college altogether because you couldn’t afford it? Or did you have the financial means or knowledge to keep your student loan debt to a minimum? Either way, think of your financial mistakes, trials, and triumphs and use the start of this school year to teach your children everything you’ve learned about financially preparing for school. Use your experiences along with the following resources and ideas as motivation to set the stage for your child’s financial success or, perhaps, to change your own path.

So how can you do this? Include your child in the financial process of preparing for school. Sit down and discuss with them. Educate them on the difference between a “want” and “need” so they can decide what they need for school. Ask for their opinion and listen. Use free online budgeting tools available on www.christiancreditcounselors.com to set a budget together. Discuss and research ways to stick to that budget by using free resources such as Passionate Penny Pincher’s Free Back-to-School Cheat Sheet for a complete list of back-to-school deals. Record and track your spending. Make back-to-school shopping a learning experience through mathematical games. In “7 Smart Ways to Save on Back-to-School Clothing,” Deacon Hayes also suggests tips like assessing your child’s current school inventory, visiting thrift stores first, and adding in a fun but frugal activity such as stopping for an inexpensive lunch or treat to make back-to-school shopping a happy experience (See Ref. 4). Above all, just enjoy spending time and working toward your financial goals together as a family. By doing this, you will not just be buying more pencils and notebooks, but you will be setting the stage for the financial success of your children AND yourself. Here’s to a successful school year!

References

1. Farber, Madeline. Fortune. Nearly Two-Thirds of Americans Can’t Pass a Basic Test of Financial Literacy. 12 Jul. 2016. http://fortune.com/2016/07/12/financial-literacy/

2. Jacoby, Jeff. The Boston Globe. Making college ‘free’ will only make it worse. 13 Jul. 2016. 18-20. http://c.ymcdn.com/sites/www.ncher.us/resource/collection/6E4F0103-05C8-4F48-844E-BEEAC285C10B/db0714_2016.pdf

3. O’Connell, Brian. The Street. 75% of U.S. Workers Say High Student Loan Debt is Crippling Their Retirement. 12 Jul. 2016. https://www.thestreet.com/story/13627148/2/75-of-u-s-workers-say-high-student-loan-debt-is-crippling-their-retirement-savings.html

4. Hayes, Deacon. U.S. News Money. 7 Smart Ways to Save on Back-to-School Clothing. 15 Jul. 2016. http://money.usnews.com/money/blogs/my-money/articles/2016-07-15/7-smart-ways-to-save-on-back-to-school-clothing

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14 Money-Saving Valentine’s Day Ideas!

Debt Free Valentine’s

Want to celebrate Valentine’s Day without going into debt? Think fun.

Some of the best gifts involve sharing time, along with a little thoughtfulness. And the memories last far longer than a dozen roses or a box of chocolates. Here are 14 ways to express your love on the 14th — or any other day for that matter.

For a spouse or significant other:

1. Time in a bottle:

Give your hardworking spouse a full day to do whatever he or she wants — or just to relax — no interruptions allowed. For him, that mean he gets to engage in his hobby, watch the game, play 18 holes or do absolutely nothing. For her, that might mean you feed and entertain the kids while she indulges in a good book, a bubble bath or a manicure. Announce your gift — along with your most heartfelt message of love and appreciation — in your best handwriting or play with various fonts on your home computer. Clean up an old wine bottle and insert the rolled-up message tied with a red bow.

2. Dining out:

Sure, you can take your loved one out to dinner, but that can get expensive. Instead, eat out — as in outdoors. A picnic in a park or at the beach will fill the bill. In frostier climes, set up a picnic blanket and basket at the dining room table, on the living room floor or in the middle of that king-size bed. Add a rose or two (rather than a dozen) for atmosphere.

3. New adventures:

Do something different. Go somewhere you’ve never been before, or “someplace you haven’t been in a while that’s special,” says John Gray, author of “Men Are From Mars, Women Are From Venus.” The site of your first date, for example. When you vary your routine, “that’s what creates the memory,” he says.

4. Surprise, surprise:

For guys that don’t normally cook, Gray says, your best attempt at a home-cooked meal can be a huge treat and doesn’t have to cost anything. Or hide a note under her pillow the night before or little notes around the house on the day, telling her what she means to you. Look at the little things. “What men don’t realize about Valentine’s Day is that it doesn’t have to cost a lot,” says Gray. “Little things make the difference. The surprise factor is nice, whenever possible,” Gray says.

5. Culture up:

Does your significant other delight in museums, foreign films or rare books? In most metro areas, you can find high-culture, low-dollar activities if you know where to look. (Start with the local paper, check online and you can even call the local library or cultural organizations for suggestions.) Many museums have free days. Movie houses have special times when tickets are heavily discounted. For the book lover, plan a trip to a rare book shop, and splurge for cappuccino and biscotti at a nearby coffee house.

For the parents:

6. Creature comforts:

For mom or dad it’s always a good idea to focus on the creature comforts. Let her sleep late and bring her coffee or orange juice and a simple breakfast in bed. “Some of the best stuff is free,” says Melina Bellows, author of “The Fun Book for Moms: 102 Ways to Celebrate Family,” and editor in chief of National Geographic Kids. Give dad or mom — especially if you have a single parent — the gift of an hour of “me-time” when they get home from work just to decompress, says Eric Stromer, author of “Do-It-Yourself Family: Fun and Useful Home Projects the Whole Family Can Make Together,” and host of HGTV’s “Over Your Head” and AOL’s “Do-It-Yourself with Eric Stromer.” “Try it Friday or Monday,” he says. If you know dad will retreat to his man-cave, post some kind of thank you note or affirmation there, just to let him know how much you appreciate his hard work.

7. Get techy wid it:

The perfect gift for parents from teens and college kids. “Offer to be mom’s tech concierge,” says Bellows. Teach her to text, or show her how to download music or movies. If she’s wanted to investigate social networking, introduce her to Facebook, and create (with her permission) a page for her, so that she can catch up with her high school and college friends. Or, if you have a few bucks, do the old mixed tape one better and load up her MP3 player with a playlist of music you know she’ll like.

8. Child labor:

Sure, you’re busy, but that doesn’t mean you can’t spend a little time making sure your parents know you love them. Make a book of coupons for your parents filled with jobs you promise to do for the week, month or year: things like shining dad’s shoes, washing mom’s car, watering the plants or even taking out the trash.

For the kids:

9. Cooking up some love:

Kids will remember the Valentine’s Day they baked cookies with mom or dad. With little kids, opt for something simple, like heart-shaped cookies. With older children, consider cupcakes with more elaborate Valentine’s Day decorations. Then turn off the TV one night and have family game time or story time. Get out the old favorites or create a few new ones.

10. Treasure of love:

Kathy Peel, author of “The Busy Mom’s Guide to a Happy, Organized Home,” suggests hosting a treasure hunt. “Post clues (pictures, rhymes or words) to direct family members from one location to another until they find their treasure: a small Valentine’s Day gift,” she says.

11. Get crafty:

Try a family craft project, says Stromer. “Nothing spells love more than a heart made out of balsa wood and hung on the front door,” he says. Balsa is inexpensive, easy to work with (you can often use tools that you already have), and available at local craft stores. Paint it, let it dry and display it prominently, says Stromer.

12. Start the day with love:

Celebrate with a Valentine’s Day breakfast, says Bellows. For a lot of families, the morning routine is hectic. So take some time on Saturday for a leisurely breakfast. Go for something traditional with a twist, like their favorite pancakes in heart shapes. Keep with the Valentine’s theme by using lots of strawberry or cherry syrup and whipped cream. And focus on the foods they really love.

13. Work together:

Take a few hours on Saturday to work together as a family on a project geared to the abilities of the kids. Build — or even just hang — a bird house. You can find kits in craft stores or if you’re not handy, take the children to pick out a seed ball. Then, together, select a spot where it can be seen from indoors and hang it. Not only do you help foster local wildlife (and help creatures during the cold winter months), you and your family get to enjoy a little bit of nature in your own backyard. Another thought: Make your own kite. A little newspaper (or other heavy paper or light cloth), some balsa wood (available at craft stores), string and poster paints can add up to a pretty fantastic kite. (Check Internet sites or children’s craft books at the library if you need examples or instructions.) See who can design the prettiest, fastest, most colorful or most unusual kite. You can display them in the kids’ rooms or around the house. Then on the first sunny, windy day, try them out.

For any situation:

14. Be a friend:

Know someone who’s alone? Set aside some time to share a meal, go on an outing, or swap recipes or gossip. It can cost virtually nothing, and you’ll likely gain a lot more than you give.

By: http://www.bankrate.com/finance/personal-finance/14-loving-but-inexpensive-valentine-gifts-1.aspx#ixzz3ywr2cEQv

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Your Spending Habits and Your Holiday Spirit

The Average American’s Holiday Spending Habits

Already thinking about everything you have to do for the holiday season? Does the thought of holiday preparation stress you out? According to the National Retail Federation, it was estimated that the average American spent $77.52 on candy, costumes and decorations for Halloween in 2014. According to a CNBC report, the average American planned to spend $765 on Christmas for the holiday season as well. Is this how much you will spend this year? To avoid answering yes to this question, start planning ways to save money now.

Holiday Money Saving Tips

Shop with a Gratitude Attitude

The first, and possibly greatest, thing that you can do to save money this season is to adjust the way you THINK about the holidays. Rather than getting caught up in the commercials, products, and social pressures, concentrate on the things you already have in your life that you can use or recycle and the people you already have in your life to whom you can show love and appreciation. Concentrate more on the FEELING that you can give someone else rather than the MATERIALS you can give them. For Halloween, get creative and make your own costumes during a Family Craft Night. Change your spending habits by making it about the experience rather than shopping. Can’t afford to make or host a big dinner? Plan a family movie night, rent scary movies, and gorge on popcorn and pizza.

Make Random Acts of Kindness a Holiday Norm

Instead of buying gifts, clean the car or house for your spouse, make a collage of old photos for a friend or family member, call a distant friend or relative and leave a Christmas Carol voicemail to spread cheer over the phone, make a list of reasons why you love someone or appreciate someone, write a song or poem for them, and make decorations using household items such as a string of popcorn. Use this new mentality to set the tone for your entire family. For any other holiday necessities, you can financially prepare to save money by creating a budget and setting aside a small amount every week or paycheck. Just remember though, gratitude, love, and the right mentality can save you and your family A ton of money this holiday season, especially if you are all on the same page.

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Fall Money Saving Tips

Cutting Costs at Home

There are many ways you can save money and have fun doing it this holiday season. Falling leaves and decomposing Jack-o-Lanterns are the perfect way to start a compost pile this fall. Starting now means you’ll be one step ahead when spring arrives.

Make sure your roof is free of holes, destruction and critters; if it isn’t, repair the damage or shoo the animals away. Assess the gutters as well as the chimney. Nothing is worse than a cold, rainy winter inside the home without a fireplace. Repairing now helps ensure you don’t have any last minute problems during the winter.

It’s also very important to weatherproof your home. Chances are, you’ll be using your heater this winter. Rather than lose all of that precious heat, weatherproof your windows, doors and anything else you can think of.

Restock on winter essentials before they’re all snatched up. Coats, food, gloves and boots are some important winter items that disappear as it gets closer to December.

Shopping on a Budget

The holidays are almost upon us, and that means holiday shopping is close at hand. If you start shopping around in October and November, it will be a lot easier to pick up the perfect present than if you were to wait closer to Christmas time.

So many fruits and vegetables come into season in the fall, so don’t forget to stock up. Not only will you get cheaper produce, but it will be nice and fresh. And as always, use coupons to save even more.

Look out for fall and holiday deals and coupons. There’s something about the festive, fall season that puts stores in such a great mood. So many places are offering seasonal items for super cheap; it’d be a shame if you didn’t partake.

Lowering Travel Expenses

If you’ll be flying at some point during fall, purchase tickets in the middle of the week. Most sales occur Tuesday through Thursday, so when planning a trip buy on the less busy days.

Compare round-trip flights to one-way flights. Sometimes flying round-trip isn’t necessarily the best deal. If you can save more on two tickets, take that deal.

Luggage and travel accessories are going on sale during this time of the year. If you’re in need of a new suitcase, now’s the time to buy one for that vacation coming up.

Your Entertainment Costs

Bike riding is a great way to let off steam in the cool air, while also getting where you want to go! Exercising and saving money never felt so good.

Take a walk with the family. Play board games with your kids and significant other by the fireplace instead of sitting in front of the TV. Find new and fun ways to spend time with those you love. Parks are also a great place to go; they’re usually free and offer many great family-friendly amusements.

Harvest festivals, farmers markets, and city events are a super fun and cheap way to get outside as well. Pumpkin patches offer a great time for you and your kids, and spending time together is always a beautiful fall activity.

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Kids & Money, Loans, Student Loans

Student Loan Forgiveness Options

Student Loan Forgiveness

After my last post about Student Loans, I received a question asking for more in depth information about student loan forgiveness. I researched and found the following information. These are the careers that can possibly eliminate your student loans. If you decide to partake in one of these programs, make sure beforehand that you can use it towards loan forgiveness.

Military Forgiveness

Students who are in the Army National Guard may be eligible for their Student Loan Repayment Program, which offers up to $10,000.

Teaching Forgiveness

Students who become full-time teachers in an elementary or secondary school that serves students from low-income families can have a portion of their Perkins Loan forgiven under The National Defense Education Act. This program forgives 15% of your loan for the first and second years of teaching service, 20% for the third and fourth, and 30% for the fifth. Contact your school district’s administration to see which schools are eligible.

See also the US Department of Education’s pages on Cancellation/Deferment Options for Teachers and Cancellation for Childcare Providers, as well as the Teacher Loan Forgiveness Form.

The US Department of Education maintains a database of low-income schools eligible for teacher loan cancellation for Perkins and Stafford loans.

Legal and Medical Studies

Many law schools forgive the loans of students who serve in public interest or non-profit positions. For more information, contact Equal Justice Works.

The US Department of Health and Human Services offers loan forgiveness programs through the National Health Service Corps and the Nursing Education Loan Repayment Program. These programs offer loan forgiveness to physicians and registered nurses who agree to practice for a set number of years in areas that lack adequate medical care (including remote and/or economically depressed regions).

The US National Institutes of Health’s NIH Loan Repayment Programs repays up to $35,000/year of student loan debt for US citizens who are conducting clinical medical research.

The US Department of Agriculture’s Veterinary Medicine Loan Repayment Program (VMLRP) offers loan forgiveness of $25,000 per year for three years for veterinarians who commit to work in a veterinary shortage area for three years. The application deadline is June 30.

Federal Agencies

The Federal Student Loan Repayment Program allows federal agencies to establish loan forgiveness programs to help recruit and retain employees. This is technically a loan repayment program and not a loan forgiveness program, as the agencies make payments directly to the loan holder and the payments represent taxable income to the employee. The agencies can repay up to $10,000 in Federal student loans per employee per calendar year, with a cumulative maximum of $60,000 per employee. Employees must agree to work for the agency for at least 3 years.

Public Service Loan Forgiveness Program

This program lets borrowers off the hook from their remaining student loan debt after 10 years of full-time employment in public service.

To be in the program, borrowers must be employed by the federal, state or local government; or any nonprofit, 501(c)(3) organization; or work full-time for AmeriCorps or Peace Corps.

To qualify for loan forgiveness, the borrower must have made 120 payments during a decade as part of the Department of Education’s Direct Loan program.

But, if the payments fall short or the borrower stops working full time, then there is the same risk of being kicked out of the program, with no loan forgiveness.

I hope this information helps you further understand your options for eliminating student loans.

Information found on finaid.org and money.cnn.com

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Budgeting, Kids & Money, Loans, Saving, Student Loans

Student Loans: A Necessary Evil?

Student Loans and Debt

More than ever before, a college degree has become a necessity. But many parents and students wonder how they are going to pay for college. With a high number of students graduating college with student loans, the average debt will likely hit a record $28,700, projected by Mark Kantrowitz, publisher of Finaid.org. It is important to have the necessary information on student loans before signing on the dotted line.

Government and Private Student Loans

There are two types of student loans – government and private. Government student loans have flexibility with programs to help students pay back the loan because they can change the rules whenever. This can work towards the advantage of the borrower but can also hurt the borrower. If the student will take out multiple loans, a government loan is better because it provides continuity.

Private loans are provided by traditional banks and they do not have as many programs to help students repay their loans. These loans come with a low interest rate but can hurt the borrower because it accumulates over time. Also, most of these loans include a clause that does not allow the signer to file for bankruptcy. After graduation, you get a six-month grace period during which you don’t have to pay back your loans giving you time to find a job.

Financial Respoinsibility

If you decide you need a student loan, you must decide who will be signing for it. There are two options, the student, who must be at least eighteen years old, or a (step) parent. If a step parent or parent decides to sign he or she is now responsible for the full payment of this loan.

For example, if a step parent signs and afterwards gets a divorce, the step parent is still held responsible for the full payment. Also, if a student signs for a three year loan for $30,000 but he or she drops out of school after the first semester he or she must still pay the full amount of the loan. The result is parent and child is equally stuck.

Budgeting for the Loan

Ideally, the student should work while going to school and open a savings account. This way the student will have a cushion for after graduation. This cushion should include living money and money to make loan payments. Proper budgeting and planning when a student begins school will be more beneficial than starting to plan after graduation.

However, if there was no proper budgeting or planning there are ways you can receive help. Keep in communication with the lender, there are consolidation programs and government programs that can help. Consolidation programs are for students who took out multiple student loans throughout their school career. For example, John has four $100 monthly payments to different banks.

Loans and Credit Consolidation

With consolidation, his overall payments will be lowered and he will have the benefit of simplicity which will help him track the progress of his student loans. With government loans, a student can work for a nonprofit organization or public agency for ten years which will reduce the amount owed on the account. Also, if you are willing to commit a year volunteering for AmeriCorps, you get $4,725 to pay off your college debts, and a stipend up to $7,400. For more information visit their website.

In addition you can work for 27 months with the Peace Corps. If you travel with the Peace Corps, you will get to defer most of your student loans until after you leave the program, and may get some of your loans reduced by as much as 70%. Visit their website for more details. If you decide one of these programs is beneficial to you, make sure you have it approved before hand, know the rules, and always get it in writing.

Other options for repayment include: pay in full, standard payment, graduated payment, income-based payment, and long-term payment. In the majority of cases paying in full is never an option. Standard payments are monthly payments with interest over a period of 10 years. It gives you a great interest rate but high monthly payments. For graduated payments, the payments will start low but increase every couple years for a 10-30 year period. With income-based payment, your monthly payments are decided proportionate to your income and you get 15 years to pay it off. The long-term payment method is a monthly payment plus interest for 30 years.

Regardless of whether you decide student loans are for you or not, you now have the knowledge to make the right decision.

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