Driving Less? Tell Your Insurer and You Could Save

If the high price of gas means you're spending less time behind the wheel, you could save an average of 5% to 15% on your car insurance – between $47 and $142 – according to the Consumer Federation of America (CFA), which crunched the numbers. Believe it or not, you may be eligible for an immediate discount on your auto policy, and one phone call may be all it takes to get it.

Why? "Auto insurance rates are partially based on how much you drive and how you use your car," said J. Robert Hunter, Director of Insurance for CFA. "We encourage all Americans to act now to save money by calling their insurance company or agent and asking if they qualify for an immediate rate reduction."

If you used to drive to work or school, but have now switched to mass transit or car-pooling, ask your insurer to change your classification from "Drive to Work" to "Pleasure." CFA says your savings could be 10 to 15 percent. Even if you continue to drive to and from the train or bus station , you could still save between 5% and 10%.

It's Not Just Commuters Who Can Save
Insurance companies charge different rates depending on the number of miles you drive. Even if all you've done is consolidated a few chores to cut back on your driving by 10% -- from 200 to 180 miles a week – it adds up – in this case, to over 1,000 miles a year. You could easily go from driving over 10,000 miles a year to under it, and that can save you between 5% and 10%, according to CFA.

"Many consumers would receive a lower rate in this situation, because insurers often use 10,000 miles as a key 'break point' in setting rates," explains Hunter. "Simply explain the actions you are taking to drive less and estimate how many fewer miles you are driving a month."

Who Will Save the Most?
It may surprise you to learn that CFA believes the savings will be greatest for people who pay higher car insurance rates, for example, younger drivers and urban dwellers. Talk about a silver lining! The expectation is that folks who only pay a few hundred dollars for auto insurance, say, an adult living on a farm, will save less.

Wherever you live, no matter how old you are, if you're driving less, call your insurer today!  Please let us know how you make out.

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

How to Combat Rising Food Prices

Going to the grocery store has gotten a lot more expensive lately. The cost of basic foods like rice and wheat have surged around the world. Stores like Costco have even started rationing bags of rice. And the falling value of the dollar has made imports more expensive.  If you're not careful, your weekly grocery bill could be increasing.

Here are some tips for keeping your food costs under control:

• Read your receipts. After you shop, audit your grocery receipt to see what might be more expensive than you thought. I once had a co-worker who was unknowingly paying $9 for small bags of marcona almonds for three months before noticing it on his receipt.
• Use by-the-ounce prices to get the best deal. Most grocery stores post per ounce prices that make it easy to compare. That 2-for-1 deal on olives might not compare to the value of a bigger sized can.
• Shop for in-season produce. Don't buy peaches in December. Seasonal produce is usually cheaper. You can also find really good deals at a local farmer's market.
• Get creative. Beans and potatoes can be used as a very inexpensive base for tasty meals. And frozen juice concentrate is cheaper than bottled options.
• Don't waste. Only buy fresh foods that you know you'll eat before they go bad. Or start freezing extra supplies.
• Remember that a "2 for $5" deal doesn't mean that you have to buy two of the items. The $2.50 price is usually available if you just buy one.
• Cook from scratch. Processed foods are often more expensive than their homemade alternatives.
• Find coupons online. These direct coupons offer really good deals - not just a few pennies off.
• Use a credit card to earn rewards or cash back on your grocery purchases. Some credit cards offer special rewards for grocery store charges.

How are you combating rising food prices?

Emily Davidson – A former TransUnion insider and a member of Credit.com's expert team. Emily writes about credit reports, credit cards, loans and personal finance as the CreditBloggers.com editor.

What a Way to Run a Direct Mail Campaign

My friend Marc recently had a moving experience. That is, he bought a new home, and went through the usual gymnastics of dealing with brokers, lawyers, utility companies, and movers, to name but a few. His new mailbox was full of "welcome to your new home" offers for various services and discounts, including a free oil change, and a 10% off coupon for one of the big box stores.

On closer examination, Marc realized that the coupon wasn't really a coupon. It was an offer for a coupon. To receive the coupon, he had to go online and fill out a form, which he did. Time went by, but the coupon never arrived. So he went back online, looked up the company's customer service email address, and sent a note explaining that he had never received his 10% off coupon. Not long afterwards, Marc received an automated response telling him that his problem couldn't be helped by the computer-based customer service people, he would have to make a phone call.

Ring. Ring.
The customer service rep listened patiently to Marc's story, put him on hold for a while, apologized, and promised to send out the coupon, "which should arrive in about six to eight weeks." (How difficult, he wondered, would it be to put the thing in an envelope, and mail it out? Or, better yet, since the original requirement was to submit an electronic form, how difficult would it have been to simply email the blasted thing?)

Perhaps reading his mind, the customer service rep went a step further, and offered to send a gift card in the amount of $35, to be used while waiting for the coupon. The gift card was delivered by UPS a few days later, but long after the 8 week waiting period had ended . . . Marc still had no coupon. So, he made another call, and this time was given a different number to call, with a specific extension to punch in.

The person who answered this call had no idea why Marc was given her number, and he was eventually switched to a very polite representative, who sincerely apologized, and said a coupon would be sent right out. He should receive it in a week to 10 days. To make it clear that this time it would indeed arrive, he was given a confirmation number.

It never arrived. Not in 6 to 8 weeks. Not ever. Marc happily used his gift card, and decided it just wasn't worth any more of his time and energy to pursue the coupon. And because of the hassles, any further shopping would be done in a different Big Box store, one that made no offer, and lived up to it.

End of story? Not quite.
All of a sudden, emails started flooding Marc's inbox with "helpful" tips, sale opportunities, and miscellaneous benefits to shopping at the store that offered the coupon but never sent it. Not a big fan of spam, Marc attempted to unsubscribe, only to get a screen asking for all sorts of information, other than the email address to remove from their "subscriber" list. Unable to break through the information barrier, and unwilling to give out his address and phone number in fear of yet more intrusions, he returned to the phone.

If you were hoping for a happy ending, guess what? There is one! This time, after repeating much of what you just read to a very patient representative, he was offered another gift card, this time for $200, and most amazing of all, the card arrived just a few days later. Marc has still not received the coupon, but it doesn't bother him nearly as much.

Moral: Persistence pays off!
For your own happy endings with corporate America, get yourself a free copy of the 2008 edition of the Consumer Action Handbook, which offers the best advice on how to lodge winning complaints. It includes the names, headquarters, addresses, phone numbers, Web sites, and email addresses of virtually every top flak-catcher at hundreds of corporations, as well as key federal, state, and local government agencies and nonprofits that might help solve consumer problems. There are also plenty of detailed tips about shopping from home, identity theft, telemarketing, credit, privacy, product safety, scams, cars, insurance, banking, phone service – you name it.

You can access the handbook online, but I think the printed copy belongs in every house. Uncle Sam must agree. He'll send you up to five copies for free. Makes a great housewarming gift.

Let us know of your recent experiences in trying to get your complaints resolved. If you haven't already succeeded, maybe we can help!

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Teach Your High Schoolers about Money NOW!

When Will They Ever Learn?

The financial literacy scores of the 2008 high school graduating class is actually lower than it was for seniors in 2006, 2004, 2002, and 2000. That's the key finding from a large biennial national survey released today by The Jump$tart Coalition for Personal Financial Literacy. In past years, the students had correctly answered over 50% of the questions, but this year, their average score was 48.3%.

Take a look at some of the specific findings:

• Only 48% knew that cardholders who only pay the minimum amount on their credit card bills  will pay more in interest that people who pay their balance in full.

• Only 40% knew they could lose their health insurance if their parents become unemployed.

• Only 36% think a house financed with a fixed-rate mortgage is a good hedge against a sudden increase in inflation, compared with 45 percent in 2006.

The extent to which they don't know the basics really shocked me. They totally flunked! Here are two fairly typical questions from the survey, which you can see in full, with the correct answers:

1. "Sara and Joshua just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?”

Percent
4.7                 a.) A checking account
16.8               b.) Stocks.*
37.3               c.) US savings bond
41.3               d.) A savings account

2. "If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal law?"

Percent
17.3             a.) $500
16.9             b.) $1000
52.8             c.) Nothing
13.0             d.) $50*

Yikes! Kids really don't know the basics. If yours don't, now is the time to get on the case! Of course, setting a good example is the most important thing you can do, but if you haven't been talking with your children about money, it's high time that you did, no matter what their age. They love the stuff – at least all the kids in my life do – so getting into conversations about it should be no problem, assuming you carefully pick your moment.

The time to discuss how credit cards can end up costing a lot more than you think is not when your teen is in a snit because you won't spring for the trendy [ fill in the blank ] at the mall. Spend your "money time" together away from such temptations. For starters, it'd be great if you'd pull out some of your credit card bills, and explain what you did right . . . and wrong. Ditto with your savings accounts. Talk about the consequences you have had to face for some of your spending bloopers and less-than-ideal money management. (Kids love those stories.)

If you're not comfortable with that, how about looking at Jump$start's test together? It'll be real low-key, because the correct answers will be clearly identified. Whether you discuss them or not, your teen will be able to see what other high schoolers know and don't know. (It's nice when peer pressure can work for you, isn't it?)

If your teen is more likely to pay attention to something on a Web site, consider sharing "Sense & Dollars" with them. It's designed with a young, hip audience in mind, and offers lots of real-life examples. You don't have to mention that it was created by Maryland Public Television, do you?

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Piggy Banks

I hate paying ATM fees to have access to my own money. So this weekend, as I raced through the grocery store on Saturday afternoon, I said "no" to the cash back option as I swiped my debit card. "I'll go to through the bank's ATM to get some cash later," I thought.

But my day got away from me, and that evening I found myself at Raymond James stadium in Tampa to watch the Budweiser American Invitational Grand Prix series horse riding competition with my daughter and her friends, and had only $2 in my wallet.

That meant I had to break down and get money from the ATM at the stadium to buy dinner and something to drink. (They check your purse as you enter to make sure you don't smuggle in a bottle of water or snacks.)

I nearly gagged when I saw the ATM fee charged by BB&T bank was $3.75! Maybe I just don't use ATMs enough, but I was absolutely flabbergasted. Of course my bank will tack on it's own $1.50 foreign ATM charge. That means I paid $5.25 to withdraw my own cash.

Talk about a piggy bank!

It seems to me these banks are just asking for regulation. And what about the fact that its a financial planning firm that has paid to have its name on the stadium? I hope their planners warn their clients not to use the stadium's ATMs too often -- or they'll quickly wipe out any measly interest they may earn on their bank accounts.

What's the highest ATM fee you've seen? Do you agree with me that there should be a limit on these fees?

Gerri Detweiler – Personal finance author, radio host and credit expert. Gerri contributes budgeting, debt recovery and savings information online.

Retirement Keeps Getting More Expensive

A 65-year-old couple retiring this year will need approximately $225,000 – just  to cover medical costs, assuming they don't have an employer-sponsored retiree health plan. That's the latest health care cost estimate from Fidelity Investments, which has been calculating this cost since 2002. Over the last six years, Fidelity reports that it has risen 41%, with an average annual increase of 5.8%. Since last year, the increase is "only" 4.7% higher than 2007's estimate.

In coming up with its estimate, Fidelity assumes that seniors will have to pick up the cost of Medicare Part B (doctor and outpatient) and D (prescription drug) premiums, as well as any co-payments, deductibles, and out-of-pocket expenses. Not included in that $225,000 health care nest egg are the cost of over-the-counter medications, most dental services, or long-term care. In other words, it could cost us even more than that. Ugh!

How Much Will You Need?
I thought it might help to see how much you'd need to save a month to come up with a $225,000 nest egg by the time you're 65. I'm assuming that your money will earn 7.5% (10.5% interest - 3% for inflation).

If You Are	Years to Retirement	Monthly Investment
25	40	$77
35	30	$167
45	20	$406
55	10	$1,265

Ways to Save

Fidelity, which is the largest mutual fund company in the US, has five suggestions for how to save the money you'll need:

1. Create an individual retirement plan. Whether you take advantage of a plan at work or open an IRA, the tax advantages can't be beat.

2. Start early and maximize opportunities to save. Fidelity points to Health Savings Accounts (HSAs), where people  enrolled in a high-deductible health plan can set aside income, tax-free, to pay for qualified medical expenses now – or to accumulate and be used to pay for qualified medical expenses in retirement.

3. Assess health status and become a smarter consumer of health care. Knowing where you stand health-wise can help you plan. To reduce health care costs now and in the future, Fidelity recommends you consider generic drugs instead of brand names, become better informed about your medical conditions, and focus on prevention.

4. Determine details of any employer-sponsored coverage. Can you count on health care coverage in retirement?

5. Understand the financial impact of health care costs on Social Security income. If you don't have other resources, about half your Social Security benefits might go to cover health care costs.

Those are all good ideas, and I highly recommend them. It also pays to think of ways to save on everyday expenses. Here's a sampling of my favorite painless penny pinching tips and tactics.

• Brew your own. Avoid the pricey designer java.
• Brown bag it.  It should be easy to save $25 a week if you do.
• Really stock up when your favorite products are on sale.
• Get a water filter if you're spending a fortune on "designer water."
• Barter and bargain to get better prices.
• Ask! For example, see if you can get the interest rate lowered on your credit card.
• Comparison shop for all major purchases and expenses, like insurance.

What are your favorite money-saving ideas? Share your tips with us, please!   

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

There’s Gold in Them Thar Drawers

With the price of gold at $958 an ounce (as I type) you can get some much needed cash by selling broken jewelry, gold cuff links from the back of a drawer, or, for me, my long forgotten high school ring . . . if I could find it. It's not an heirloom to anyone and I HATED high school.

Before you run off to sell your "scrap gold," here's what you need to know:

The price of gold rises and falls, much like the stock market does. Right now, it's hovering around record levels. Will it be better in a month? I have no clue! If I could predict commodity futures, I'd be walking along a beach, far away from the snows of upstate New York. But it's safe to say that now's a very good time to sell, and it's certainly a good time to get yourself educated about selling scrap gold.

Who wants your old gold?
Maybe you've seen the ads online or in your local newspaper – for example: "The Highest Prices Possible,""We Buy It ALL$," "Have Gold? Want Cash?" While some of these dealers may be reputable, as always, it's much better if you work with a well-established dealer. Get recommendations from local reputable jewelers (some of whom may offer to buy your scraps), then check with the Better Business Bureau. Be very leary of fly-by-night dealers who advertise that they'll be at a local motel for the weekend.

Before you trade-in your high school ring or old gold tooth for cash, "comparison sell" by looking up the price of gold. Then call around to find out what dealers are paying. While there are many places on the 'Net that will buy gold, I think it makes a lot of sense to eyeball someone. Chose a dealer who you'd be comfortable asking to match or beat the best prices being paid nearby.

What will you get?
If your collection of old jewelry weighs an ounce, will you get $958? Sorry to bust your balloon, but the answer is no – for two main reasons:

1. Gold jewelry isn't pure gold. It's mixed with other metals, usually copper. You'll only be paid for the portion of your scrap jewelry that's actually gold.

Gold quality is expressed in "karats." Pure gold is 24 karats or 24K. Here is the purity of other common grades of gold.

Karats            % Pure

18k                    75%

16k                    67%

14k                    58%

12K                    50%

10K                    42%

2. There are many mouths to feed. Once the dealer buys the gold from you, it will be sold to other dealers or directly to refiners who will melt it down and remove the impurities. This process costs money, and there has to be a little something in it for everyone who will handle your gold along the way to the refinery and then off to whatever it will become next.

The upshot is that you can expect to be paid around 50% or 60% of the day's gold price – assuming we are talking about something that's 24K gold.

How does it work?
Precious metals are bought and sold by weight. Your gold will be weighed by the dealer in "Troy" ounces, which are 10% heavier than what we think of as ounces – 31.1 grams as opposed to 28.3 grams. So if you weigh your gold on a weight-watchers' or postal scale, deduct 10% to find the number of Troy ounces.

Troy ounces are further broken down into pennyweights (PWT). There are 20PWT in each Troy ounce of gold.

Let's say you know where your high school ring is, you're thinking of selling it, and want a sense of what you'd be paid for it. Here's how to figure that out:

• Check inside the ring for a "gold mark." It may say 10K, which means your ring is about 42% pure. (Some rings are 14K, 18K or not gold at all.)
•  Weigh your ring. Using your kitchen scale, it might weigh 0.5 ounces (half an ounce), which translates to 9PWT if you do the math (.0.5 x 0.9 = 0.45 x 20 = 9PWT).
• Check the gold price. We'll use today's $958 price for a Troy ounce.
• Divide the price by 20 to get the PWT price: $47.90 for each pennyweight of pure 24K gold. Assuming your ring is 10K, the top price for each pennyweight is $20.12. If  you get 60% of that from the dealer, or $12.07 per PWT, your ring would fetch $108.64. (If there's a stone, it'd be a little less.)

Not bad for something you no longer care about, huh? So gather up all the scrap gold in your life, sell it, and use the money to pay down some pricey credit card debt – it's a "golden" investment opportunity!

Please let us know if you sell off some scrap gold . . . and what you do with the money.

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Give a Wonderful Valentine's Day Gift

After my rant last week about Valentine's Day presents, I thought I was all done with the holiday for this year. But then I got a Valentine's Day wish from Ruth Susswein, the Deputy Director of National Priorities at Consumer Action, that I just had to pass on.

Along with Consumers Union and a few other nonprofits, Consumer Action wants us to send e-cards to our elected officials, asking them to take heart on Valentine's Day and reform the credit card industry.

Kiss Credit Card Ripoffs Goodbye
I love the holiday hook of the "Kiss Credit Card Ripoffs Goodbye" campaign! It culminates tomorrow, when some 120,000 paper cards will be delivered to Congress, asking for an end to:

• Outrageous fees.
• Unfair rate hikes.
• Hidden interest charges.
• Unjust changes in terms.
• "Gotcha" penalties.

Consumer Action has made it easy for us to jump on the bandwagon and get our messages to Washington in time for tomorrow's festivities. You guessed it – they went for the more environmentally sound route – email. So I took them up on it. Once I clicked here on Consumer Action's site, it took about a minute to send off my Valentine's Day e-cards to my legislators, and I feel better having done it.

With Love from Me to You
Please join in, and send a Valentine's Day card to your reps in Washington. Tell them it's high time they showed a little love for us, and ended the sweetheart deals for the big credit card companies. A fair credit system would be a wonderful gift to the American people – rather than the current system, where lenders are free to take advantage of us. Congress can help by putting an end to all unfair credit card practices, from unconscionable rate hikes to convenience checks.

That would be so sweet, wouldn't it? And there are no calories!

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Bah Humbug, Valentine's Day!

I was heartened by the headline to the National Retail Federation’s press release about Valentine's Day: "Consumers Opt for Quality Time with Loved Ones Over Traditional Gifts This Valentine's Day."

I thought, isn't that great? We're not even in an official recession yet, and people are already cutting back. But then I read below the headlline, only to discover that the total spending for Valentine's Day 2008 is expected to be a tad over $17 billion.

That's not a typo. The National Retail Federation (NRF) says we'll buy some 17 billion dollars worth of flowers, cards, chocolate, jewelry, and similar nonsense (nonsense being my word, not the NRF's). "Average consumers," whatever that means to the NRF, are expected to spend $122.98 on the holiday, up from last year's $119.67.

Most of it will be spent on our special someones, but we'll also spend $367 million on presents for our pets. Honestly, would your pooch know if you chose to skip her this year, and put the money into your emergency fund instead? My cats surely wouldn't.

According to the Greeting Card Association, we'll send out 190 million Valentine's Day cards. At $3 a pop, that's $570 million, just for fancy pieces of paper with someone else's words on them. Why not come up with something personal to say, and use the money to pay down your debts? Maybe some people may be doing exactly that. The number of people planning to buy a card is down to 57%, compared to 63% last year.

As for how consumers are opting for quality time with loved ones: 'Almost half (48.2%) of all consumers plan to celebrate Valentine's Day with a special night out, compared to 45.3 percent last year." Not much of a change there, imho, and it sure sounds pricey to me! I went through the NRF survey, and this is the only finding that comes close to quality time.

But then we're not "average consumers," right? With even tougher times coming, my advice for quality time on Valentine's Day is to tell your beloved why you think s/he's terrific, make a great dinner at home, and get to bed early.

This year, why not do something really meaningful with the money you would have spent? Feel free to blame me! If you both chip in, you'll have almost $250.

Would it give you more peace of mind to put the money in the bank for a rainy day, or would you rather pay down a credit card bill? Already have an emergency fund and no credit card bills? How's your retirement fund doing? 

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Is that Extra Cup of Coffee Worth $64,000?

I just read an interesting article on Reuters’ site about how Starbucks is testing $1 coffee and free refills in its Seattle locations. I love it when prices go down and/or you can get more for your money!

It’s sure an interesting sign of the times. I wonder, is Starbucks testing cheaper coffee because people are spending less on pricey brews? I hope so – not that I have anything in particular against Starbucks. I feel the same way about all designer waters and the other beverages we buy at fast food joints, vending machines, and convenience stores.

Why spend a fortune if you can just as easily save one?
If Starbucks will cut the cost of your caffeine habit in half, that's great. Go for it! But you can easily do it yourself, without totally depriving yourself of your favorite drink. For example, making that second cup of coffee at the office or bringing coffee from home could easily save you a few hundred dollars a year on beverages that come in disposable take-out containers, cans, and bottles. A cup of coffee or a can of soda here or there may seem like a small thing, but over time, the money really adds up.

However you do it, let’s say that in the course of the work-week, you spend a dollar or two a day less on drinks, and save yourself $300 a year. If you work from when you’re 22 to 62, that’s a 40-year career. Put that $300 a year under your mattress, and at the end of those four decades, you’d have $12,000.

Invested at 6% a year, that $300 would amount to $46,429 when you’re ready to retire. But remember ...  you would have paid for those beverages with after-tax dollars. To have $46,429 after taxes, someone in the 28% bracket would have to earn nearly $64,500.

I'd much rather have the $64,500. How about you? Interested in other painless ways to save? Click here.

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Where There’s a Will … Do You Have One?

It drives me nuts, but many of my favorite people, including family members, don’t have wills. No matter how many times I bring it up, or how many helpful articles I send their way, they just won’t deal with the fact that some day, their day will come, if you know what I mean.

I understand denial, and know this isn’t a cheery subject, but it’s so important, especially if you have kids. If you don’t have a will, you’re intestate in legal jargon, and a court will appoint a guardian for them. One couple I know says they can’t decide who should take care of the kids, so that’s why they don’t have a will. To me, that’s nuts. Certainly, there’s no the benefit to putting the kids through the process of finding out what will happen to them in that strange land known as probate court, which is where such matters are resolved … by a bunch of strangers

You’re bound to make a better choice about who should take care of your children than some judge, who doesn’t know any of the possible players, how they get along (or don’t get along) with the kids as well as who will be best at child-rearing, and who is the most responsible with money. They don’t have to be the same person.

I could go on and on about the other reasons why a will and other basic estate planning is crucial … and already have. LOL! Here’s an article I wrote for Credit.com that covers all the basics. If you haven’t dealt with these issues yet, do it now for the ones you love. If your parents are still alive, talk to them about the key estate issues. (I give hints in the article for how to broach such subjects with the old folks.)

Wouldn’t you be the better judge? For example, if you have a will, you can make sure your hard-earned money goes to the people you want to get it. You can lay out the conditions and the timing – maybe Junior shouldn’t have complete access to his inheritance until he’s 25.

Without a will, a lot of money may be eaten up in the process of deciding who gets what. That’s what happened to Marilyn Monroe’s estate after she died without a will. Her heirs got around $100,000, while $1.5 million was consumed during the 18 years of probate fights.

Show Me the Money
I came across a site the other day that I think will finally make the will-less see the light. It's called MyStateWill.com, and it makes it easy to see what will happen if you go toward those golden gates without leaving a will behind. At the bottom of the home page, click on your state. You'll be taken to a calculator designed for your state – they all have different rules about the details of intestacy. Answer a few questions, and you'll soon see who would get how much of what you leave behind, if you die without a will.

If that doesn't motivate you, consider this: Some of the intestate rules are nuts and way behind the times, especially given how complicated families are these days. For example, I learned on this site that if you've never had children, in 29 states your spouse has to split your estate with one or both of your parents. If your spouse isn't the parent of all your kids, s/he doesn't inherit as much in 27 states. And if your spouse has kids with someone else, in nine states, your spouse would get less, even if you have children together.

Don’t get me started on “together” – even if you have been living together for decades – blood relations inherit, whether you’re on speaking terms, or not. But do check out MyStateWill.com and let us know if you’re surprised about who would inherit from you. I was amazed to see who would get my worldly goods, but fortunately, I have a will. How about you???

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Give a Gift that Keeps on Giving: Toy Safety

Over 25 million toys have been recalled this year, many because of lead paint. But there have been other awful culprits as well – including a chemical that can form GBH, the date rape drug, when swallowed. According to Consumers Union (CU), the publisher of Consumer Reports, “2007 has been the Year of the Recall, but it can also be the Year of Reform.”

There’s a bill that CU and other consumer advocates want the U.S. Senate to pass this week, called the “Consumer Product Safety Reform Act of 2007,” and known in bureaucratese as “S. 2045.” This bill will give the Consumer Product Safety Commission (CPSC) the resources it needs to protect us from dangerous products.

S. 2045 calls for:

• Independent testing of children's toys and products for lead and other safety hazards.
• Lowering the level of lead allowed in these products. Increasing inspectors and inspections. According to Consumers Union, the CPSC currently has a total of 15 inspectors at U.S. ports, and it has only half the staff it had when it opened in 1973.
• Protecting whistle-blowers.
• Raising the fines the CPSC can collect – from $1.83 million to $100 million.
• Improving the agency's ability to disclose important safety info.

In getting out the word about S. 2045, Consumers Union put together a very cute cartoon on this problem that I plan on sharing with my nine grandkids. I know they’ll enjoy the cartoon and agree that toy safety is really important. I’ll show them the form letter I filled out, courtesy of CU, to send my Senators about S. 2045. They’ll no doubt want to do likewise, so we’ll personalize their letters to make their ages clear to the old folks in the Senate.

I love it – an easy way to have a serious conversation with young people about the importance of consumer advocacy and whistle-blowers, about getting what you pay for and what to do when there’s a problem, and most importantly, about the gifts that really matter – all while they sharpen their computer skills.

Making sure the toys and other products that come into this country are lead-free and safer seems like a no-brainer to me. Thanks for leading the charge, Consumers Union!

Will you join me in supporting CU’s child safety efforts? If so, you can see the cartoon and write to your Senators by clicking here. It won’t take more than a couple of minutes and the kids you save may be your own.

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Honk if You Love Credit Unions

I've just spent three days at the California and Nevada Credit Union League Conference in San Diego. It was interesting to get their take on the current credit and mortgage crisis. With a dedication to affordable loans, financial literacy and other benefits, credit unions can be a great option for your banking needs. Even if their branches and ATM's aren't quite as easy to access.

Where do you bank? With a large national bank like Wells Fargo, Citibank or Wamu? With a local credit union or bank? With an online-only bank like e*trade or ING?  A combination?  Vote below:

Opinion Polls & Market Research

Share your feedback in the comments section!

Free Is a Great Price! Get It TODAY!

CreditBloggers.com is all about saving money, and there's no price better than free – if there are no strings attached and if it doesn't entice you to over-spend. To wit:

Taco Bell ran a promotion, where if anyone stole a base in the World Series, everyone in the U.S. could  get a free taco. Boston Red Sox centerfielder Jacoby Ellsbury stole one in Game #2, so Taco Bell will give away one free Crunchy Seasoned Beef Taco to every customer from 2 - 5 PM on Oct. 30 – that's today!

The only strings seem to be the date and time. Of course, Taco Bell would be delighted to have you buy more food and drinks while you're there. Just don't let it bust your budget!

Will you take Taco Bell up on its offer for a light late lunch or an early dinner? Please let us know if you did, how you liked it, and whether it led you to spend more on fast food today than you would have without the freebie.

Bon appetit!

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Free Ways to Manage Your Money Online

Some of the best things on the internet really are free! Including free money management and budgeting programs.  Websites such as Wesabe.com and Mint.com are allowing users around the country to manage their money online in innovative new ways.

CreditBloggers.com personal finance guru, Gerri Detweiler, was quoted yesterday in a Smart Money article comparing different free money management services. Click here to read "Budgeting Software: A Free Way to Manage Your Finances." Included in the article was this helpful chart comparing features of four top providers (click to enlarge) :

Yodlee's Money Center was one of the first free personal finance services online. The company develops their software for resale to banks and other institutions and also allows customers to sign up for a free account independently. I've been a Yodlee user for about three years now and love the convenience of seeing all my checking accounts, savings accounts, credit cards and investments with one login.

Are you a Clear Checkbook, Mint, Wesabe or Yodlee customer? If so, share your opinions about the free services in the comments section below.

Emily Davidson – Credit.com's Communication Director and former TransUnion credit expert. Emily writes about credit reports, credit cards, loans and personal finance as the CreditBloggers.com moderator.

Discover Card Consumer Survey Shows we're Upbeat about our Personal Finances, but…

In May, Discover launched a new research program, the “Discover Consumer Spending Confidence Monitor,” with Rasmussen Reports, a well-known, independent survey research firm. Together, they’re planning to survey lots of us every month – they interviewed 500 consumers daily (15,000 total) in August alone – to find out what we think we’ll spend in the future, what shape our finances are in now, and what our opinions are on the economy.

Granted, our expectations certainly can change unexpectedly for various reasons. However, as time goes on, I think Discover’s monthly surveys will become very insightful for what they tell us about people’s current situation – and what the trends may be. Right now, here’s how I read Discover’s key findings from the May, June and July surveys:

1. No money. The number of families that had no money left over after paying their monthly bills rose from 38% in May … to 50% in July. (There’s only a 1% margin of error.) About 45% of younger adults (18-29) in July reported having money left over after paying their monthly bills.

2. No cushion. Two-thirds in June said they could support their current lifestyle for a month if they were faced with an unexpected loss of income. But 29% in July said they wouldn’t be able to do even that, which is up from a quarter in May.

3. No hope. With credit tight, the housing market soft, gas prices high, and a war going on, it’s no surprise that about 63% in July told Discover that they rated the economy as fair or poor.

If “no money, no cushion, and no hope” is how you’d describe your current situation, as Discover shows, you’re not alone! About half of us – or more – seem to be in the same boat. So don’t beat yourself up about it. Instead, tell us what’s up and we’ll try to steer you to people who can help.

Please note that the August survey was just released (click for details) a few days agao and I haven’t had time to completely digest the numbers yet. However, after a cursory glance, I did find it very interesting that the August survey reveals that consumer confidence in the U.S. economy rose and fell week-to-week. This rise and fall seems to reflect fluctuating concerns about the economy, housing market and sub-prime mortgage challenges.

More importantly, though, despite such fluctuations, consumers were relatively upbeat about their personal finances in August, rating them much higher than they rated the economy. With that, I will end this article on a positive note!

Curtis Arnold - Curtis is the CEO/Founder of CardRatings.com, a website that provides credit card ratings and reviews of over 20,000 offers.

Learning About Money and Credit in School

Back-to-school season is ramping up. Along with sales on school supplies and new clothes, are your kids armed with money management skills?

According to a recent Visa study, they're not likely learning about credit at school or at home. Only 5% of adults reported learning about money management in elementary or high school. At the same time, less than half (48%) reported that they learned about money management from their parents.  So how are people learning about money management? 41% said they were self taught or learned the hard way.

Before sending your kids back to school, here are a few quick lessons you can give them to learn about money management and credit:

1. Saving is Important. This is a lesson a lot of people could stand to learn. Teach your kids about saving by paying them "interest" when they save up their allowance for a big purchase. You can use the analogy of a penny doubled every day being worth more than $1 million to teach them about compounding interest.

2. Working can be Rewarding. The ol' lemonade stand, babysitting or summer lawn mowing job really sets a foundation for understanding income, capital, taxes, business, etc.  Encourage your kids to set up a summer business or job.

3. Credit Cards, ATM Cards and Checks...Oh My. Do your kids the know the difference between these payment options? A quick lesson at the grocery store check-out counter can help teach your kids about how to use money responsibly. Make some kid-friendly paper checks that your kids can use when playing "shop."

4. Paying Bills Late Has Consequences. Make sure your kids know just how important it is to always pay your bills on time. Involve them in your bill payment and talk to them about the lasting credit damage that can come with a late payment.

5. Older Kids: Credit Cards are Not Free Money. If you can get your kids through high school and college without massive credit card debt, you've done an excellent job! Teach your older kids about how credit card interest rates are calculated, how minimum payments work and how you need to send in payments on time.

Remember, your own financial example is the best lesson your kids will learn. If you make smart financial decisions (keeping your debt low, controlling your spending, saving & earning good credit), your kids are likely to make the same healthy choices when they are older.

Emily Davidson – Credit.com's Communication Director and former TransUnion credit expert. Emily writes about credit reports, credit scores, loans and personal finance as the CreditBloggers.com editor

Does Money Impact Your Vote?

The Pew Research Center recently conducted a poll called "Trends in Political Values and Attitudes."  The study examined public opinions over the past 20 years about political and social concerns. And part of their research includes financial stability:

More broadly, the poll finds that money worries are rising. More than four-in-ten (44%) say they "don't have enough money to make ends meet," up from 35% in 2002. While a majority continues to say they are "pretty well satisfied" with their personal financial situation, that number is lower than it has been in more than a decade.

This statistic is certainly being reflected in the rising debt levels and falling savings levels we've recently seen. The report also revealed that Republicans and Democrats have very different opinions about how their income measures up:

Three-in-four (74%) Republicans with annual incomes of less than $50,000 say they are "pretty well satisfied" with their financial conditions compared with 40% of Democrats and 39% of independents with similar incomes.

I wonder if a lot of that chalks up to Democrats often living in more expensive areas, where their income doesn't go as far? With some pretty major economic shifts taking place thanks to the "credit crisis" and mortgage industry crash, it will be interesting to see how these numbers look next year.

In the meantime, the survey brings up an interesting question: Does your financial situation impact your vote? What do you think?

Opinion Polls & Market Research

Who Needs Paper? Go Green with Online Banking

We can save 16.5 million trees and avoid 3.9 billion tons of greenhouse gases … every year … if we do all our banking and bill paying online. These are the key findings from a recent study conducted by the Javelin Strategy & Research.

According to the report, "2007 Online Banking and Bill Payment," over half of US households are already cyber-banking, with about a third of us paying bills via the Web. And if we totally eliminated paper checks and bills … every year … we would also:

• Save 2.3 million tons of wood.
• Reduce fuel consumption by enough to power up homes in San Francisco for an entire year. (That's where Credit.com is based!)
• Decrease toxic air pollutants by the equivalent of having 355,000 fewer cars on the road.
• Reduce toxic wastewater by 13 billion gallons.

According to the report's author, Mary Monahan, "Bankers can meet consumer needs while providing vital environmental benefits. In addition, emerging features such as two-way mobile or email alerts … can transform today's overwhelming flood of online information into an experience that is green, safe and practical for everyone."

We're All in It Together
Javelin's study finds that with the current state-of-the-art for online money management:

"… emerging technologies actually fulfill common needs, ranging from the basic (access to one's complete financial picture) to emerging capabilities (mobile banking and payments, live chat, banking blogs, Web 2.0 bank-sponsored community forums, or bulletin boards). Companies can also provide important safety advantages with paperless options that minimize criminal mail access, user-defined activity alerts, fraud-loss guarantees and the ability to safely log in and monitor activity from nearly anywhere."

Sounds good to me! What do you think?

Nancy Castleman – Co-author of "Invest in Yourself: Six Secrets to a Rich Life" and founder of Good Advice Press. Nancy has spent the last 23 years teaching people how to get out of debt, save money, and live better on less. She writes on all these subjects for CreditBloggers.com.

Credit Cards, Parking Meters, and the 21st Century

Parking meters are not a factor in my small town life, but every time I come across one of those "feed me your coins" relics, I marvel at how slowly some municipal governments are moving toward "smart" meters that accept credit cards.

I know ... why should meter management be any different from other aspects of government?!  Precisely because 21st Century technology makes possible a new breed of smart meters that are easy to use, easy to manage, efficient, and fair both to drivers and the jurisdictions that install them. That must be why parking meters that take credit cards … as well as the old-fashioned dimes and quarters … are being tried in cities like New York, Milwaukee, and Philly, as well as in many other locations.

Even a village not too far from where I live is planning to replace the traditional, individual parking meters in its "downtown business district" with high-tech multi-space machines that take coins, bills, and credit cards. The more aesthetically pleasing new machines will lead to less meter-clutter on the streets.

For municipalities, fewer coins means less frequent emptying and therefore, greatly reduced collection costs. Also, newer machines mean fewer breakdowns and less vandalism. For drivers, credit card convenience is the key selling point. Who wants to have to dig around for loose change, especially when they're in a hurry? 

Unfortunately, some of the systems being tested seem unnecessarily cumbersome and costly. For example, in Boston, you had to get a credit card receipt, then return to your car and, using the "sticky tape" on it, paste the receipt onto the inside of your windshield. Other cities and towns just require that the receipt be d