Fun, Frugal Ideas For Kids

If you’re looking for some fun and inexpensive ways to keep the kids in your life entertained, you might not have to look further than your own backyard! While saving toward your debt settlement negotiation, it is important to save money and change your spending habits.
 
Create Your Own Camp
 
Summer camps or specialized camps can be costly. Would a ‘mini-camp’ organized by you and a few of the neighborhood parents be a viable option? Families involved can take turns hosting a day of ‘mini-camp.’
 
Try thinking of a fun and interesting camp theme that will stimulate the imagination of the children involved and keep kids active and interested. Camp supplies, such as crayons, coloring books, pens, pencils, etc., can be purchased at dollar stores. Children can bring sack lunches while the host family may decide to provide drinks and dessert.
 
Give Back Together
 
Whether you are spending time with one child or several, you can always make a difference together. Could you volunteer together at the local library, helping to shelve books? Perhaps your youngster would benefit from helping those who are ill, lonely or living in a nursing home. You could also donate items to a children’s hospital.
 
Make Each Day A ‘Theme Day’
 
Consider what your child is interested in and think of special activities they would enjoy. You could plan a hike, fill a backpack with drinks and snacks and go on a nature walk. Go to the beach or park. Make the adventure educational by collecting outdoor treasures such as leaves, rocks and flowers and using those items to make a project later. Making a scrapbook together containing pictures and mementos from your adventure may also be a fun idea.
 
Learn A New Skill
 
Do you know how to draw, knit or take great pictures? If so, perhaps the young person with whom you are spending time would also like to learn. Do they have a skill or interest you would like to know more about? Perhaps this could offer possibilities for a fun and interesting conversation.
 
Go To The Library
 
Local libraries don’t just offer access to free books, they also usually offer reading clubs for people of all ages as well as story times for younger children and summer reading programs. Many libraries also have information about free or low-cost community activities.
 
Movies
 
Some cinemas feature special family-only days with discounted tickets. Check with your local theater.

Being Proactive Can Help You Survive a Financial Setback

Sometimes it takes just one unexpected setback or emergency to trigger a debt crisis.
 
It is normal for some people to have feelings of loss and doubt after a less-than-positive life experience. However, it is important to move ahead and find ways to get back on your feet again and keep on the debt settlement savings path. Here are a few tips on how to stay proactive if life throws you a curve.
 
Losing a Job.
 
If this happens to you, keep in mind that you are not alone. Many good workers are losing jobs in the current economy. You could begin taking action by visiting the Department of Labor at www.dol.gov (866-487-2365) to learn more about unemployment benefits and to search lists of unemployment offices according to state. Also, The Center for Debt Management suggests that you review your employer’s severance benefits, including the temporary continuation of your health insurance.
 
A Medical Emergency.
 
Since mistakes can happen, it might be wise to review all doctor and hospital bills and insurance claim payments/denials. If you find a discrepancy on your bill and cannot resolve the dispute with a doctor, hospital or insurer, you might want to contact your state consumer protection office or insurance regulator for guidance.
 
If you incur medical or hospital charges that you cannot afford to pay for in full, The Center for Debt Management suggests calling the service provider’s billing department to try to negotiate a reduced bill or a payment plan with monthly payments. You might also benefit from the Health Coverage Tax Credit (HCTC). Go to www.irs.gov and do a key word search for HCTC for more information and to see if you are eligible. In addition, if your medical bills are high, you might qualify for a federal tax deduction. Try to keep all bills, cancelled checks or other receipts in one place so you know where they are for tax time for your tax preparer.
 
The Death Of A Family Member.
 
Before you commit to any funeral costs, you should consult with other family members and a lawyer to find out if any prior instructions or arrangements were made. Also, try to locate important documents, such as insurance policies, as well as an original copy of the most recent will. It is a good idea to make multiple copies of the death certificate, which will be needed to apply for death benefits (such as through life insurance policies or Social Security) and to access bank and other accounts.
 
If the family’s medical insurance is through the deceased person’s employer, you might want to consider options for continuing coverage.
 
Divorce.
 
Divorce can be a complicated process and the laws are different depending on the state in which you reside. You don’t want to go into anything without knowing your rights, so it might be wise to consult a professional. However, The Center for Debt Management suggests that you could possibly reduce some legal fees by working with a mediator to resolve certain issues such as child custody.
 
Failing to downsize after divorce could lead to debt. When it comes to spending, recognize that living your old lifestyle may not be possible on one salary.
 
According to www.Kiplinger.com, you should update your will and the list of beneficiaries you designate on life insurance policies. Try visiting www.familylawsoftware.com for information about the divorce process. You can view ‘The Divorce Guide: A World of Help’ when you click the link under the ‘For Individuals Facing Divorce’ tab.

Credit Corner

 

A recent article by Kiplinger magazine revealed that Americans used their debit cards 28.4 billion times last year, compared with 21 billion credit-card purchases. Here are just a few advantages and disadvantages regarding debit and credit. It may be wise to first check with your bank regarding the particular fees, regulations and conditions attached to each before using.
 
The Debit Decision
 
Debit cards possessing a major bank logo can usually be used at the same places that accept credit cards. For debit purchases, funds are taken directly out of a customer’s bank account as if they were making a typical ATM transaction.

 If used responsibly, debit cards could be a good money management tool for those who want to break themselves of bad spending habits, including the ‘buy it now pay later’ attitude that sometimes accompanies credit card usage.
 
If purchasing with debit, you should learn to always be aware of exactly how much money you have in your bank account. ConsumerReport.org suggests tracking all expenditures and making immediate notations of all transactions to avoid costly overdraft fees and penalties.
 
Purchases on debit cards do not acquire interest – in essence, a consumer is basically using plastic to pay cash. While this may be considered a benefit for some, be aware it can be a costly drawback to those who are not financially organized. If you do use debit, it may be a good idea to keep all receipts until you check your account balance and financial statements. While saving towards your debt settlement, financial originaztion is key.  Also, keep in mind that some retailers and merchants, such as gas stations, hotels and car rental outlets, may use ‘blocking’ on debit card purchases. For example, if you purchase $10 worth of gas, an outlet may put a hold on $50 of your funds, causing an overdraft if you don’t have that amount in your bank account. The block is eventually lifted after 24-48 hours, but length of time usually depends on the merchant.
 
A Case For Credit
 
Credit cards also require responsible usage and financial discipline. If you choose to pay for a purchase using a credit card, try to keep in mind that you are ‘borrowing’ money which needs to be paid back. Try not to charge anything that you do not need or cannot afford to pay off as soon as possible. In addition, try to remember that unpaid credit card balances accrue interest.
 
Credit card purchases, unlike those made with debit cards, are usually protected by the Fair Credit Billing Act. If you have a problem with an unauthorized charge or a defective item that was purchased with a credit card, the Fair Credit Billing Act could provide additional support.

Lose Your Debt Weight: Try A Cash-Only Diet

Cash-only, or cash-mostly, spending may be a good practice to incorporate into your budget. A recent report by FiLife.com, a financial information website in partnership with The Wall Street Journal, found that consumers could save 12 to 18 percent of their income if they primarily used cash. While saving for your debt settlement, Credit Answers strongly suggests that yopu stick to a cash only diet.
 
Acquiring A Taste
 
There are various benefits to cash-only spending. For example:

Organizing Your Finances Could Get Easier
If the bulk of your transactions are made using cash, you will no longer have the need to balance your checkbook for every purchase you make.

You Could Get A Better Idea Of Your Spending Habits
If you create a strict budget and set aside a specific amount of cash each week for your necessities, you may be able to look at what’s left and consider your wants and needs. Tracking your budget may also become easier.
 

The Real Money Concept
Perhaps seeing and feeling your hard-earned cash could help you avoid falling into the impulse-buy trap. As Fiscalfizzle.com explains, you may be more apt to purchase things you really need if you have a set amount of cash in your wallet that must last you an entire week for gas, groceries, etc.

The Sample Platter
 
If you’ve decided that cash-only might be for you, how do you begin? Here are a few suggestions:

Start With A Budget
How much do you need to set aside for your regular bills and expenses each month? Try to include regular expenses, such as quarterly insurance premiums, that may not necessarily come around monthly. Consider your income, fixed expenses and what you typically have left over. Try adding up all of your needs, find a total and divide by four (for each week). If you wish, once you have your needs totaled, you can also calculate a weekly set-aside amount for disposable income.

Decide What Form Of ‘Cash’ To Spend
There could be some expenses in your budget that may be better paid using checks, a debit card or electronic/automated bill pay. Bank-issued debit cards carrying a major credit card logo are accepted like regular credit cards with the bonus that money is debited straight from your checking account. If you choose to use debit cards, keep in mind that you will need to keep track of and deduct all debit purchases in your checkbook to avoid overdraft fees.
 

Get Organized
Once you have a weekly number, it may be a good idea to think about how you can organize your money once you cash your paycheck. You may want to give the ‘envelope method’ a try.

When you cash your paycheck, think about separating your decided dollar amounts and put each amount in a ‘needs’ envelope labeled rent, cable, telephone, etc.
 
You could calculate each envelope’s total whenever you make a deposit. At the end of the month you should have the amount for each category in the envelope. You can either pay those bills in cash or deposit that amount into your checking account and pay using a check, debit card or online payment.
 
Better budgeting requires discipline and organization, qualities necessary to lose your debt weight.
 
For some people, the cash-only or cash-mostly option can be a recipe for financial success!

Wants Vs. Needs

Understanding the psychology of buying helps us to understand why we make certain selections when purchasing. What is the difference between needing something and wanting something? Our needs are quite limited; however, the list of things we want could be quite unlimited. While saving for a debt settlement one should prioritize what they want and need to help save funds to rid themselves of the burdon of debt.
 
What is the difference between a need and a want purchase?
 
Needs or physical requirements are items that you need to sustain life.

Food

Shelter

Basic clothing/work clothes

Transportation to and from work

Childcare

Wants or desires are items that you would like to have, but may not be necessary.
 

Second or third car

Multiple TVs

Newest computer

Here are three things to consider before buying something that you had not planned on buying.
 
Can you purchase something similar to what you want for less money?
For example, could a sedan meet your needs rather than a more costly SUV? Also, instead of purchasing the car that is loaded with features, you could go with a more basic package.
 
Take a time out.
Separate yourself from the emotion of the buying situation. Walk away from the lights, colors, and displays in the store.
 
Take 24 hours to think about purchasing the item.
Go home and think about the item. Determine whether the item is a need or a want. After this waiting period, you may realize that you no longer want or need the item that badly.
 
These are skills you can develop over time. If you use at least one of these concepts, you will more likely be able to make smarter buying decisions.

Financial Tips

In order to be successful in your goal of becoming debt free you should create a budget for yourself. Below are a few debt advice tips to help you achieve your goals and save toward your debt settlement.
 
Survey Says More Americans Staying Home To Save Money
 
According to a press release by Huntington Bank, a survey of more than 1,000 Americans indicated that people have limited cash for non-essential items. According to Huntington Bank, many consumers are trying their hand at home-cooked meals as an alternative to dining out. Many of those surveyed claimed that if they do go out to eat, they think economically. For example, the consumers questioned said they would purchase only one entrée and share it as a way to save money.
 
When asked, “No matter how bad things get, I will never cut back on…” participants answered that they wouldn’t skimp on medical needs. In addition, the participants stated they would continue to pay for cable, Internet or satellite dish as it was generally cheaper to enjoy entertainment at home rather than purchasing movie or concert tickets and attending events.
 
Payday Loans Push Consumers Deeper In Debt
 
Research by the Center for Responsible Lending (CRL) shows important information regarding payday lending and borrowers who find themselves trapped in the payday debt cycle.
 
According to CRL, it’s not just the demand for new payday loans that leads to trouble for borrowers. Rather, the study verified that approximately 75 percent of the payday industry’s loan volume was generated in particular by customers who are opening payday loans to repay their first payday loan.
 
The report came to light just before the California Senate Judiciary Committee met to review AB 377, a payday lending bill that ignited controversy.
 
CRL reports payday lenders generally make loans due in full on a payday and charge close to $60 for an average $350 loan. Since low-income customers may experience a shortfall by their next payday, lenders anticipate their return for a new loan. CRL estimates that those types of customers account for 76 percent of total loan volume.

Financial Tips Throughout The Ages

Our financial goals change at various stages throughout our lives. Below are some helpful tips and services that may help consumers of different age groups reach thier debt settlement savings goals. Remember that it is never too late or too early to start living a frugal lifestyle.
 
Kids:
 
Kids value saving. Kids are willing to spend less and work more to feed their piggy banks in tough economic times, according to a new poll by the Northwestern Mutual Foundation’s financial literacy web site, www.themint.org. In the survey, visitors to the site were asked about the first thing they would do if money got tight. Sixty-six percent of respondents aged 17 or younger said they would either spend a little less or stop spending money on unnecessary items altogether.
 
Online games shows kids and young adults the importance of saving. Ed’s Bank is sponsored by Visa’s Practical Money Skills for Life program. This online game helps young children to see how much money it takes to save for items they want. Teens and college students can visit www.indebted.com, a financial education site sponsored by MTV. This site offers budget calculators, quizzes, and helpful financial information. Indebted.com also includes Debt Ski, an online game that shows young adults the importance of budgeting for necessities and extra items.
 
Adults:
 
Online tool helps calculate child care costs. According to a report released by the National Association of Child Care Resource & Referral Agencies (NACCRRA) entitled, Parents and the High Price of Child Care: 2009 Update, monthly child care costs exceed monthly food costs and the average cost of other household expenses. Sittercity.com offers some creative child care solutions to help in this difficult economy. To find out the average hourly rate for babysitters in your area, visit Sittercity.com’s Rate Calculator: babysitters.sittercity.com/rate_calculator.html.