Practical Money Skills for Life

Jason Alderman’s Practical Money Matters

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August 22, 2008
Borrowing from retirement accounts a costly mistake
The current housing crisis and other economic woes are taking their toll on people's wallets. Caught between escalating mortgage payments and rising fuel and food costs, many folks are having difficulty paying their bills. Not so long ago, some people probably would've just taken out a home equity loan, but with property values plummeting, their equity may already be exhausted – not to mention, those loans are now harder to get. Which leads me to cite a disturbing behavior that's on the rise: Tapping long–term retirement savings accounts to pay short–term bills.

August 15, 2008
Share financial 'facts of life' with your freshman
Forget the birds and the bees: One of the most difficult – yet most important – discussions you can have with your children before they head off to college concerns the financial facts of life. Because a few early financial missteps can damage their credit for years to come, it's important to set your kids out on the right path.

August 08, 2008
Trim your back-to-school expenses
It usually bugs me when retailers start hawking events months before they happen – like selling Halloween candy before Labor Day or displaying barbeque grills while it's still freezing outside. But sometimes a little forewarning is a good idea.

August 01, 2008
Why is gas so expensive?
The news at the pump is grim: With the average cost of a gallon of gas well above $4 and rising, people are asking, "What happened?" Unfortunately, there is no simple answer. But here is what government and industry experts say are some key factors that impact fuel prices.

July 25, 2008
Protect yourself from the credit crunch
As the economy continues to falter, many people find themselves trapped in financial limbo: unable to cover their bills (such as adjustable rate mortgages) and not qualified for more favorable interest rates that could help because of lenders' tightening credit standards. Compare that to a few years ago, when just about anyone could secure a mortgage or car loan.

July 21, 2008
Baby boomer strategies for slowing down
Most people in their twenties and thirties are scrambling to get ahead – working long hours to advance their careers, buy a home or start a family.

July 14, 2008
Preplanning your death arrangements
Many people refuse to contemplate their own death, while others take great comfort in planning every funeral detail ahead of time. No matter where you fall in this spectrum, there are several factors you should consider regarding cost, impact on your loved ones and ensuring that your wishes are carried out.

July 7, 2008
Get your financial resolutions back on track
You probably began 2008 with the best intentions: lose a few pounds, reduce debt, start saving for college or retirement. You may have even written New Year's resolutions and started working on them. But you get busy, unexpected expenses come up, and suddenly it's summer.

June 30, 2008
Understanding Social Security
Since its creation in 1935, Social Security has provided countless Americans with a degree of financial stability through its retirement, disability and survivor benefits. While never intended to fully support people when they retire, Social Security provides many retirees with their only safety net against poverty. So naturally, concerns about its solvency make headlines.

June 23, 2008
The high cost of raising kids
I hope you're sitting down. According to an annual study by the USDA, the average cost for a middle–income family to raise a child born in 2007 until age 18 is estimated at a staggering $204,060. And that doesn't even include college costs.

June 16, 2008
Put the brakes on debt
I hope this is one column you'll read and say, "Whew, I'm glad that doesn't apply to me." I'm talking about what can happen when someone's debt spirals out of control and they don't know where to turn next.

June 9, 2008
Seniors: Beware of financial scams
Many people find it increasingly difficult to make ends meet in today's troubled economy, whether because of mortgage woes, high fuel costs, job insecurity or other financial problems. If that weren't bad enough, predatory con artists target these vulnerable folks with increasingly sophisticated scams designed to cheat them just when they can least afford it.

May 30, 2008
Banish summer boredom for your kids
Summer's almost here and you know what that means: warmer days, longer evenings and endless choruses of 'there's nothing to do.' Before you park your kids in front of the TV or at the mall, consider a few activities you can do together that might help bring you closer while also teaching them valuable lessons about managing their personal finances.

May 23, 2008
Vacation planning in a tight economy
Sharply rising gas prices are taking their toll on almost every aspect of our lives, from filling up the gas tank to shelling out more for food and other commodities. If you've started planning your next vacation, you've surely noticed that airfares and other travel–related costs have gone up as well.

May 16, 2008
Marriage is also financial partnership
Nothing erases the glow of a honeymoon faster than money woes. In their haste to live happily ever after, many couples don't do their homework before the ceremony and then are unpleasantly surprised to learn they're starting out their next life chapter deeply in debt – or married to a spouse who has very different financial priorities.

May 9, 2008
Be shrewd when passing along assets
If you’re among the 45 percent of Americans who've already written a will, you may think you've done everything necessary to ensure a smooth transition of your assets to your heirs. Not necessarily.

May 2, 2008
Graduating to 'the real world'
Anyone who's graduated from college understands the relief of leaving behind years of cramming for exams and living on dorm food. With the next chapter of their lives now at hand, this year's grads deserve kudos for successfully negotiating the twists and turns of higher education.

April 25, 2008
Help mom plan for financial security
As Mother's Day approaches, it's worth noting that most women still face significantly more hurdles to achieving financial security than do men, especially at retirement. A few statistics say it all.

April 18, 2008
Spring-clean your financial records
Have you ever wasted precious weekend hours searching for tax-related documents? If the television died, could you locate the warranty to see if it's still covered? Ever forgotten an online account password? These are all good arguments for setting up a proper filing system.

April 11, 2008
Smart uses for your tax refund
Each year, roughly 70 percent of Americans get an income tax refund. Thanks to the Economic Stimulus Act of 2008, beginning in early May most also will receive an additional tax rebate check of up to $600 (up to $1,200 for joint filers) - even those who don't earn enough to owe federal income tax.

April 9, 2008
A financial IQ 'SOS' for Generation Y
Children growing up during the Great Depression watched their parents struggle against extreme hardships. But the "scrimp and save" mentality they learned slowly waned as Baby Boomers and Generation Xers found it easier than their parents to purchase homes, buy cars and go to college.

March 28, 2008
Tax rebates coming down the pike
Start checking your mailbox in early May. That's when more than 130 million Americans should begin receiving big checks from Uncle Sam, thanks to the $168 billion Economic Stimulus Act of 2008 passed by Congress and signed by the president.

March 21, 2008
Get your 'boomerang' kid back on course
If you're a parent looking forward to having an empty nest, you may need to adjust your expectations. Faced with burgeoning student loan balances, high rents and a stagnant job market, increasing numbers of adult children are opting to move back in with their parents to get a financial leg up.

March 14, 2008
Understanding bank fees
Paying bills used to be pretty cut-and-dried: Each month, you'd sit down with your checkbook, write a bunch of checks and drop them in the mail. Once in awhile you might accidentally bounce a check because of a math error - or in hopes that a deposit would clear first. The bank would deny payment; then you'd pay a fee and learn your lesson.

March 7, 2008
Save money on medications
Between skyrocketing prescription drug prices, rising insurance copayments and an aging population, it's not surprising more and more people are having difficulty paying for their medications.

February 29, 2008
Get the jump on taxes
Aside from getting a root canal or visiting the DMV, few activities are more unpleasant than filing income taxes. It gets more complicated every year and what's worse, if you've put off organizing your paperwork until the last minute, you risk missing deadlines and making costly mistakes.

February 22, 2008
Reverse mortgages can help seniors
More and more seniors unable to keep up with escalating living expenses have begun exploring reverse mortgages, where they draw equity from their paid-off homes and continue living there with no monthly payments.

February 15, 2008
If a layoff looms, be prepared
The days when most folks joined a company right out of school and remained until retirement are long gone. Today, people intentionally change jobs numerous times during their lifetimes. Unfortunately, such changes aren't always voluntary, as anyone who's been laid off knows.

February 8, 2008
Renters insurance is a must
If you're a renter and there's an accident or burglary, the landlord's insurance will pick up the tab, right? Not true. Landlords usually only insure the building structure itself, so you're responsible for any lost or damaged possessions. And, if someone falls in your apartment or gets bitten by your dog, guess who they might sue? You.

February 1, 2008
Seniors: Take a bite out of spending
Anyone who’s retired or living on a fixed income knows how difficult it is to keep up with skyrocketing health care, fuel and food costs. And, with today’s longer lifespans, many of us will need to keep our eye on the ball for much longer than our parents’ generation did.

January 25, 2008
Winterize your home to cut energy bills
We’ve all felt first-hand the painful impact that record oil prices have had on home heating and driving expenses this winter. You’ve also likely seen price hikes on just about everything else as fuel-related shipping and manufacturing cost increases get passed along to consumers.

January 18, 2008
Auto enrollment steers more people into 401(k)s
If you've procrastinated about signing up for your company's 401(k) retirement savings plan, you're not alone: About one-third of eligible employees haven't enrolled, even when their employer offers matching contributions and a variety of investment options.

January 11, 2008
Tips for first-time homebuyers
It's no secret that the bubble has fully burst in the real estate market and that millions of homeowners are facing severe financial hardships as home values drop and adjustable mortgage rates shoot upward.

January 04, 2008
Make a will before it's too late
You'd never want to compound your loved ones' misery should you become seriously ill or die, but that's exactly what might happen if you haven't adequately planned for your future care and the distribution of your possessions.

December 28, 2007
New retirement plan contribution limits boost savings potential
In this era of big-box discount stores, it's practically a badge of honor not to pay full price for anything. A similar philosophy reigns when it comes to paying taxes: Yes, we should all shoulder our fair share, but overpay? No way.

December 21, 2007
Self-employed? Don't forget health coverage
People choose self employment for a variety of reasons: To escape corporate bureaucracy, flex their entrepreneurial spirit or simply put food on the table after being laid off. Nearly 11 million Americans work for themselves, which means they and their families quite possibly are living without the safety net of employer-provided benefits and insurance.

December 14, 2007
For peace and quiet, call 'Do Not Call'
Few things bug me more than unsolicited telemarketing calls - especially on the weekend. That's why my family registered our home and cell phone numbers with the national Do Not Call list administered by the Federal Trade Commission (FTC) when it became available in 2003, joining 149 million others. As promised, the volume of annoying calls dropped significantly.

December 07, 2007
Be financially secure in the New Year
Maybe it's a sign of approaching middle age, but as the world becomes increasingly unpredictable, I instinctively seek out security for my family wherever I can; not just physical safety, but financial protection as well.

November 30, 2007
Make a holiday shopping game plan for kids
Are you stumped for ideas on what to get your children for holiday gifts? Join the club. When I was a kid, my folks had far fewer gift choices for me: board games, a bicycle, or maybe the dreaded long underwear. Today, doing a search for "toys" on Amazon.com reveals more than 400,000 listings.

November 23, 2007
Don't let spending fears ruin your holiday cheer
At this time of year, most people fall into two types: Those who look forward to the holiday season, and those who dread it. Many people end up in the latter camp because of money worries. You know how easy it is to overspend on holiday gifts, travel and entertainment and how long it can take your wallet to recover.

November 16, 2007
Year-end benefit review could lower your taxes
If you could save hundreds of dollars on your taxes with just a few minutes' work, would you? I thought so.

November 09, 2007
Make sure your charitable contributions hit the mark
Americans lead the world in charitable giving. In 2006 alone, we gave a record $295 billion, of which 76 percent came from individuals. That doesn't even count time spent volunteering, which some sources value at $150 billion or more.

November 02, 2007
Homeowners: Tips for Avoiding Financial Hardship
America's once red-hot housing market has cooled off considerably. Prices are down, unsold housing inventory is up and mortgage lenders have tightened credit standards.

October 26, 2007
Spend less so you can save more
We all know we should set aside money for a rainy day, a house down payment or retirement, but there are always a million reasons why we can't.

October 19, 2007
Identity theft thrives – even beyond the grave
In the 1970s-era spy thriller "The Day of the Jackal," a would-be assassin steals the identities of several dead people to further his plan to kill French President Charles DeGaulle.

October 12, 2007
Helping military families face financial challenges
As we prepare to honor our armed forces on Veterans Day, it's appropriate to address the financial challenges often faced by those who defend our country. Far too often, military families face daunting financial difficulties.

October 5, 2007
Reevaluate your benefit needs each year
Like death and taxes, rising health care costs are unavoidable. In fact, you've probably seen your medical insurance premiums increase several times in the past few years. A little careful planning can help you ease your bottom line by choosing coverage that best matches your needs – not to mention save hundreds of dollars on taxes.

September 28, 2007
Credit history ‘piggybacking’ becoming harder
Boosting your credit score by "piggybacking" on someone else's good credit is about to get much more difficult

September 21, 2007
Get the most from your pension
If you're among the nearly 44 million Americans eligible for an employer-provided pension plan, consider yourself lucky: Since 1980, such plans have decreased by nearly 80 percent. And, while more companies now offer 401(k) or other plans, where employees themselves fund some or all of the savings, about half of Americans have no employer-sponsored retirement plan at all.

September 14, 2007
Say ‘I do’ to open financial communication with your spouse
Not to sound like Dear Abby, but the key to maintaining any sound relationship, whether friendship, business or marriage, is open and honest communication. This becomes doubly important when finances are involved – ask any divorce lawyer.

September 7, 2007
Get your kids involved in family finances
That anguished roar you hear is the sound of millions of students returning to school after summer break. As a parent, you might feel relief that teachers are taking over the reins, but hold on: School may be the best place for kids to learn the three R's, but you're probably still the best source for the fourth R – financial Responsibility.

August 31, 2007
Early savings reap long-term payoff
I lived paycheck to paycheck during my early twenties. Saving didn't seem feasible there were just too many expenses. And, like many, during my early workforce years I neglected to have a portion of my paycheck automatically put into a retirement account.

August 24, 2007
Don't let having a baby blow your budget
Raising a family is one of the most rewarding and fulfilling experiences in life, but also one of the most expensive. According to a U.S. Department of Agriculture survey, a typical middle-income family will spend nearly $200,000 raising a child to age 18 – not including college costs or lost wages for a stay-at-home parent.

August 17, 2007
Long-term care will be hot issue for 'boomers'
For 77 million baby boomers rapidly approaching retirement, long-term elder care is no longer an academic concept ñ it's becoming a reality. Many of us already deal with elder-care issues for our parents.

August 10, 2007
Give your freshman a crash course in financial fundamentals
If you've got a freshman heading off to college, you're probably scrambling to teach him or her how to cook macaroni and cheese and do laundry without turning everything pink. But there are other important lessons you can share that will have a much longer-lasting effect on their financial future.

August 03, 2007
Do your homework on back to school shopping
Few phrases inspire greater dread for my seven-year old than, "back to school shopping."No doubt the same holds true for many other parents who must spend precious summer hours ñ and hundreds of dollars ñ on shopping excursions for clothes that will be outgrown (or worse, uncool) in six months.

July 27, 2007
Avoid the home improvement 'money pit' syndrome
Shortly after our first child was born, my wife and I realized we needed to remodel our kitchen and family room to accommodate our new family focused lifestyle and our new arrival. But, like most first-time remodelers, we had no idea what we were up against.

July 20, 2007
Foiling financial scam artists
You can hardly watch or read the news without hearing about the latest scam to separate folks from their hard-earned money. As criminals become increasingly more sophisticated, their schemes are more difficult to spot.

July 13, 2007
Put your financial windfall to good use
Statisticians say the odds of winning the lottery are about the same as being struck by lightning. There are many other, smaller financial windfalls you're much more likely to experience ñ everything from tax refunds to inheritances to a raise or bonus at work.

July 6, 2007
Choose the right credit card for your needs
You probably get numerous credit card offers every month. Many list terms that sound too good to be true, which often means they are: 0 percent interest, huge credit limits, free rewards — the list goes on.

June 29, 2007
Playing ‘catch-up’ for retirement savings
If you can remember when the Beatles first sang “When I’m 64,” you’re probably fast approaching retirement or already there. When Paul McCartney wrote, “We shall scrimp and save,” however, he may have been wishful thinking: Nearly half of U.S. workers report having less than $25,000 in retirement savings.

June 22, 2007
Choosing the right financial planner
It used to be that only the wealthy consulted financial planners for advice on estate planning, investments and tax shelters. But with tax laws becoming increasingly complex, more people investing in the stock market through 401(k) plans and millions of baby boomers approaching retirement, people at all income levels now seek professional help to plan their financial future.

June 15, 2007
Know when to lease or buy a car
When it comes to getting a new car, many people wrestle with whether to lease or buy. Both methods have advantages and disadvantages, so it's important to understand your needs and payment habits before signing on the dotted line.

June 8, 2007
Clear out your financial clutter and save time, money and headaches
Nothing strikes more fear in an unorganized person's heart than tax season, when you pay dearly for a year's worth of stashing bills, receipts and other papers in a shoebox. I know, because I'm a recovering file-o-phobe. I used to think it took too long to organize my paperwork as it came in, until I realized just how much time I later wasted trying to find misplaced records.

June 1, 2007
Test your kid's credit score I.Q.
Probably the last thing college students want to do during summer break is absorb any new information. But if you can prevail on your kids, I've got a subject thatíll provide a lifetime of A's for their financial future: Credit scores.

May 25, 2007
This Father's Day, help dad get organized
Father's Day is almost upon us. This year, along with the traditional necktie or dozen golf balls, why not give your dad something that will make him feel like he's truly taking care of his family and watching out for their future ñ a financial and medical planning check-up.

May 18, 2007
There is life after graduation
During graduation season millions of college (and high school) seniors will march on stage in graduation caps and gowns to the relieved cheers of parents and friends. Many have already lined up a job in their chosen field, while others stand at a crossroads, wondering what to do in the next chapter of their lives.

May 11, 2007
Donít hear wedding bell money blues
Many people recall their wedding day as one of their happiest, filled with cherished memories and promises of a bright future. But at an average cost of more than $27,000, itís not surprising that some weddings start couples off on the wrong financial footing, setting the stage for future money problems.

May 4, 2007
Take the stress out of your next vacation
It seems like everyone I know works longer hours and has more responsibilities than ever before. Some people say the only thing that keeps them sane is thinking about their vacation.

April 27, 2007
The best Mother's Day gift: financial security
Mother's Day has been around in one form or another since ancient Greece. Mothers (and wives and grandmothers) deserve heartfelt thanks for tackling one of the hardest jobs on the planet. But rather than simply taking them out for Sunday brunch, why not give the moms in your life a present with more lasting meaning: the gift of financial security.

April 20, 2007
Sorting out the ëgood' debt from the ëbad'
You may have heard people refer to "good debt" and "bad debt." Ideally, we'd have no debt at all because we'd be rich enough to never need a loan. But few of us belong to that exclusive club, so sometimes we take on debt out of necessity.

April 13, 2007
Disability can strike unexpectedly, so be prepared
Like many people, I often take my health for granted. I plan to work for many more years, but you never know: Studies have shown that Americans of all ages are more likely to become disabled in a given year than to die, and that nearly a third are likely to suffer a serious disability between the ages of 35 and 65.

April 6, 2007
Spend your tax refund wisely
For many of us, the agony of filing taxes each April is partially offset by knowing that a few weeks later weíll get a nice refund from Uncle Sam (assuming you donít have to write him a check). Last year, nearly 70 percent of the nearly 123 million U.S. taxpayers received refunds averaging $2,237.

March 30, 2007
Financial literacy dialogue goes national
Have you tried helping your children with their homework lately? It's amazing how much information they're able to absorb. But some would say we're doing our kids a disservice by not emphasizing more strongly a critical part of growing up - personal financial management skills.

March 23, 2007
Drive down your automobile insurance costs
I hate writing checks for automobile insurance. It always seems like money down the drain ' that is, until you need it; then, insurance can be a lifesaver. But that doesn't mean you shouldn't try to get the best deal possible. You wouldn't buy a new television without comparison shopping, nor should you automatically reenroll in the same policy year after year ' at least not without considering your other options.

March 16, 2007
Go on an energy diet and save money
Like most Americans, you're probably reeling from your winter heating bills and hoping spring comes soon. I spoke with some insiders at a major utility company about ways consumers can conserve energy ' and cut utility bills. Here are some of their money-saving tips.

March 9, 2007
Don't wait until the last minute to get taxes in order
When it comes to filing taxes, some of us are ants and some are grasshoppers. Ants methodically file receipts all year in color-coded folders and on January 2 they calculate their refund; grasshoppers shove everything into a shoebox and pull it out, panic-stricken, the night before the tax-filing deadline.

March 2, 2007
Understanding interest rates can save you money
Unless you pay cash for everything, you're impacted by interest ' either as a lender or as a borrower. Understanding the different types of interest can give you a clearer picture of how your money accumulates and what things really cost when financing is factored in.

February 23, 2007
Youthful credit missteps can haunt you later
I don't want to date myself, but when I went to college, tuition was much more affordable and it was nearly impossible for students to qualify for credit cards and car loans. What hasn't changed since then, however, is that many young adults still don't realize the impact a few bounced checks or late payments can have on their future ability to borrow money, rent an apartment or even get a job.

February 16, 2007
Senior discounts help the young at heart, too
My friend Carol recently turned 50. Along with birthday cards she also received an invitation to join the American Association of Retired Persons (AARP). After simmering down, Carol visited their Website, www.aarp.org, out of curiosity. In addition to health tips and financial advice, she also found something her parents have known about for years: senior discounts.

February 9, 2007
Use children's allowance to teach valuable money skills
One of the hardest parts of parenting is allowing your children the freedom to learn from their own mistakes. We all want to protect our kids from harm, but if sheltered too much, they won't be ready to deal with real-world challenges when they leave the nest. This is true for managing money just as with avoiding physically dangerous situations.

February 2, 2007
Keep your options open as retirement approaches
It used to be, you'd work hard your whole life, then retire with a gold watch and a few good years left to visit the Grand Canyon, spoil your grandchildren and get hooked on daytime TV. Pension plans were the rule not the exception, Social Security was healthy and employers encouraged early retirement to make room for younger workers.

January 26, 2007
Choose the right type of mortgage for your needs
You'll likely face many major decisions to make when you're ready to take the homeownership plunge, not the least of which is choosing the right kind of mortgage for your needs. Mortgage options used to be fairly limited, but in recent years new varieties have abounded.

January 19, 2007
Understanding credit scoring can save you money, hassles
There's a lot of confusion around credit reports and credit scores ' what they're used for, how they're calculated and why they're so important if you want to buy a car or house. Lenders, insurers and even employers review your credit history to decide if you're a worthwhile risk, so here's some background information that may help demystify the whole credit scoring process.

January 12, 2007
Putting your teenager's cell phone to good use
Many American teenagers seem to have a cell phone permanently glued to their ear. With more than 200 million U.S. cell phones now in use, they're clearly not going away, especially as cell phone manufacturers and service operators target younger audiences with ever-increasing features, including games.

January 08, 2007
New retirement plan contribution limits boost savings potential
Benjamin Franklin once said, "Nothing can be said to be certain, except death and taxes." Although I don't have any updates on the former, at least where taxes are concerned I do have some positive news:

Jason Alderman’s Practical Money Matters from 2006>>