Every human resources department in the country has a story about a happy former spouse who finds out that she or he has inherited money from the ex.  Make sure that your benefits go to the right people.  Check your designations at least yearly.  Since it’s the start of a new year, why not now? 

Ever wondered why that family down the street always seems to be in such good shape financially?  Chances are, it has nothing to do with how much they earn.  It’s much more likely that they agree on spending, have a budget and stick to it.  There’s lots of computer software available for budgeting, and this is the time of the year when it tends to go on sale.  But most financial planners use a spreadsheet they construct themselves.  Paper and pencil work too.  Divide your expense into categories, and track your income and outgo each month. 

Is buying a house always your best financial option? It depends on you and your life.

Does this sound like you?

• I’m much more likely to pay a mortgage than I am to put money aside for saving and investing
• I like working on a house and think renovations should be made with esale value in mind
• I plan to stay in one house for a long period of time

If it does, you might be happiest owning a home.

Or is this more like you?

• I think the stock market has better returns over time than real estate
• I have no idea where I will be living or what I will be doing in five years
• I would much rather have somebody else take care of upkeep and maintenance

If that sounds like you, it might make more sense for you to rent.

There are as many opinions about money as there are family members, and everyone has their own priorities about spending money.  Take some time to have a family meeting about money. 

• Set a time
• Pick someone to lead it
• Set an agenda
• Take notes
• Set goals as a family
• Be straight with your kids about the family finances.  If you have to tighten your bets to clear up some debt, make sure they understand that
• Be clear on your financial expectations for your children.  Let them know, for example, if you expect them to pay for all or part of college themselves 
• Talk about charity and the importance of giving back 
• Make sure everyone’s opinion gets heard

The following questions will help you and your partner get on the same page when it comes to the important lessons you want to teach your children about money. They will also help those of you raising children alone to clarify your beliefs and values.

• What do we think is important for our child to know about saving money?
• What do we think is important for our child to know about investing?
• What do we think is important for our child to know about debt?
• What do we think is important for our child to know about charitable giving?
• How can we nurture the growth and development of these beliefs?  What adjustments do we have to make in our own words and behaviors?
• What do we want our child to know about communication when it comes to financial issues? Are we demonstrating this in our behavior? What adjustments need to be made?
• Do we have money scripts that need to be rewritten? Are they playing out in our conversations and behaviors with our children? How can we do better in our words and actions?
• What are the financial situations we want are children to avoid? What’s the best way we can express the dangers of these situations, while letting them know that we trust them to make sound financial choices?
• What are the things and activities that make our children happy? What role will money play in that equation—on our part and on theirs?

There are dozens of ads on TV, in magazines and on the radio about websites offering “free” credit reports, but most of these sites want to sell you services.  There is one site that’s the real deal, however.  That’s Annual Credit Report https://www.annualcreditreport.com/cra/index.jsp , a website set up to comply with government regulations.  It is the only website the FTC recommends.  Use it as a portal to obtain credit reports from Experian, Trans Union and Equifax.  Once linked to the credit reporting agencies, THEY will try to sell you services, but those services are not necessary.  The information you need is available free. 

 Once you get a report, check it carefully.  Is the information correct and up to date?  If not, you should let the credit reporting agency know. 

Are you taking full advantage of your spending accounts at work? If not, you should. Flex and qualified transportation accounts allow you to put aside pre-tax money to pay for qualified medical, dental, and dependent care expenses.

Let’s say you have a $20 co-pay for a doctor’s appointment and you’re in the 25% federal marginal tax bracket. Since you would also be saving on Social Security taxes at 7.65%, if you pay for that appointment out of your Medical and Dental Reimbursement Account, your cost is only 67.35% of $20, or $13.47, because you paid pre-tax. It’s as if you are getting a 32.65% discount on your medical expenses. The same tax savings also apply to Dependent Care accounts.

http://podcast.com/show/3161/

Her interview is at 34:40.

It’s October 28th, and already there are holiday decorations in the stores.  Are you ready?  What happened to your wallet last year?  Did you spend more than you planned?  A few tips:

• Think about non-cash gifts.  Does a family member need help more than a new sweater?  Give gift certificates for shoveling the driveway or shopping for groceries.
• Gift cards are looked down on, but my family likes them for books.  One of the kids wanted a gas gift card one year because she was driving so much.  For family members on fixed incomes, they are now available for everyday items like groceries. 
• Shop with a list and stick to it.
• Look for what you think people would really enjoy, not what you think you “owe” them.
• If you have trouble with credit cards, leave them at home and stick to cash.
• Stop spending when you’ve reached your budget limit.

My husband Joe and I are on vacation in Germany this week.  There’s a lot on the news here about “Energie Sparen” (saving energy).   With the price of oil near record highs, winter on its way, and the publicity about Al Gore’s winning the Nobel Peace Prize, it’s a subject on everyone’s mind.  Stacey and I want you to know that making a start is not hard.  An easy first step?  Replace your incandescent lightbulbs with fluorescents as the old ones burn out.  Not only do fluorescents use a fraction of the energy of the old light bulbs; they are much cooler to the touch.