The Dupaco Daily

Taxpayer beware: Instant refund cards come with hidden fees

2012-02-14T16:52:00.000-06:00

Expecting a tax refund this year?

Think twice about receiving it by way of an instant-issue, pre-loaded tax refund card. Some large tax preparers, such as H&R Block, market these cards to taxpayers who want access to their refund nearly instantly.

But there's a catch – it can cost you to access your money. And, unfortunately, many taxpayers don't realize this until it's too late.

"They call the card 'free,' but these companies charge an assortment of fees for cardholders to access their money," says Matthew Dodds, senior vice president of consumer lending at Dupaco Community Credit Union.

Stacey Hirsch, a teller services representative at Dupaco, says that in addition to your refund cash, the H&R Block cards carry a heavy load of fees, including:

A $25 cash advance fee, regardless of whether you withdraw all of the money or a portion of it, every time you request an advance. "The best thing individuals should do is withdraw the full balance on the card, then we can put it in their savings account and they have it without (any more) fees," Hirsch says.
A $2.50 fee, per transaction, to withdraw money at the ATM, in addition to the fee charged by the ATM.
A $1 denial fee if you try to withdraw a certain amount and it is denied.
A $1 balance inquiry fee to check on the balance remaining on your card.

"Unless they're using it for purchases, there's going to be fees for them to use their money," Hirsch says. "We've had people come in with $10,000 on their card. If you have that kind of amount, how do you keep track of what's on the card? If you do stop to find out, then you’ve got another $1 fee."

The best way to receive your refund is to wait for it to be direct-deposited into your bank account, where it's 100-percent free access to your money.

By Emily Kittle

Avoid common FAFSA-filing pitfalls

2012-02-08T08:58:00.000-06:00

Sure, your family can fill out the Free Application for Federal Student Aid form without assistance. But the forms can be confusing.

Before your family sits down to file your FAFSA, do your homework to ensure that you're filling it out correctly. Brittania Morey, director of communication at the Iowa College Access Network, shares some of the most common pitfalls to avoid when filing the FAFSA:

Time it right. The FAFSA should be filed as soon after Jan. 1 as possible and before the schools' priority filing deadlines. Your most recent federal and state tax records are needed. If necessary, tax and income information can be estimated, but the FAFSA will need to be updated once taxes are filed. "Every school has their own priority deadline. The biggest rule of thumb is you always want to meet the priority deadline rather than having your taxes completed," Morey says. "When families don't file by the priority deadline, it can hurt them."
Know which assets count. Typically, the only assets you need to include on the form are checking and savings balances, personal investments and any additional real estate you own, not counting the house you live in. You don't need to include retirement income, such as pensions or 401(k) and Roth IRA accounts. If you are a business owner or farmer, call ICAN at 877-272-4692 for free assistance in determining whether you need to include that information on your form.
Use full legal names. The FAFSA is linked to the student's social security number, so it's important to use the student's full legal name, the way it appears on your child's social security card.
Answer questions as if you're the student. "Most of the time, parents are filling out the form for the student, but the form is written as if the student is filling it out," Morey says. "Sometimes parents make mistakes when answering questions about marital status. It's important to answer the questions as if you are the student."
Choose your challenge question carefully. When you request your personal identification number (prior to filling out the form), pick a challenge question with an answer that isn't likely to change during the course of your child's college education. "The big mistake there is that people will forget the answer to their challenge question, so they lose access to their PIN number," Morey says. "It locks them out of the system and delays the process."

By Emily Kittle

College financial aid process begins with the FAFSA

2012-02-02T11:17:00.000-06:00

The start of the year launched a new season for families with students attending college this fall: Welcome to financial aid season.

And with that comes filling out the Free Application for Federal Student Aid (FAFSA), which determines eligibility for federal and state financial aid.

"We recommend that every student fill it out, no matter their income status or whether they think they'll qualify for aid," says Brittania Morey, director of communication at the Iowa College Access Network (ICAN), "because not only do they not know what they could qualify for, but if they have to take out a student loan, the FAFSA is the only way you can get a federal student loan."

The free form is available from the U.S. Department of Education.

Not sure how to get started? ICAN, a nonprofit that provides support to students applying for financial aid, offers these tips:

Get PINs. Each student and at least one parent should request a personal identification number prior to filling out the FAFSA. The PIN allows parents and students to sign the online form electronically and make changes later.
Be prepared. Several pieces of information for the student and the parent are needed: Social Security numbers, dates of birth and driver's license numbers.Most recent state and federal tax statements. W-2 forms and records of all income from last year (taxed and untaxed). Bank and investment statements. Farm and business records. Alien registration numbers for those who aren't U.S. citizens.
File electronically. It's quicker than completing a paper form, reduces errors and speeds up processing time.
Repeat once a year. The FAFSA needs to be filled out each year students plan to attend college.
Ask for help. The FAFSA on the Web Worksheet helps families organize their information. You also can contact ICAN for free assistance; call 877-272-4692 to make an appointment for one-on-one help over the phone or in person at the Cedar Rapids College Planning Center. Free help also is available across Iowa during the week of Feb. 18-26 during Iowa College Goal Sunday.

Read our next post to learn about common FAFSA-filing pitfalls – and how to avoid them.

By Emily Kittle

Tax-filing missteps that could cost you

2012-01-31T05:05:00.001-06:00

With mailboxes filling up with tax-related documents, we turned to a local professional for help navigating the latest tax season.

Cynthia Schlichting, a partner at Riverview Tax & Accounting in Dubuque, argues that one of the best investments taxpayers can make is to hire a professional to file their tax returns.

"In the long run, a tax professional is going to save you more money than if you try to do it yourself," she says. "Otherwise, you end up paying more in than you should and you don’t even know it."
Here are three common tax filing mistakes – and tips on how to avoid them:

Many taxpayers who qualify for the education credit miss out on the savings because they don't understand how to compute it. "They can try to read up on it, but the best thing to do is go to a professional and tell them you have somebody in your family in college," she says.
Homeowners often overlook the energy credit. They either miss out on the credit when filing their own tax return or go to a tax professional who doesn’t ask whether they made any major energy-related improvements. "These are two of the biggest credits that are out there … that a lot of people qualify for and don’t give to themselves," Schlichting says.
Taxpayers submit wrong names on their tax forms, or transpose social security numbers or birthdates. Pay attention to whether someone in your family has a hyphenated name or a different last name. "You have to make sure everything you put on that tax return matches the IRS files," Schlichting says. "They have what’s on your social security card."

By Emily Kittle

Exercise your right to healthcare savings

2012-01-25T08:46:00.000-06:00

Trying to save more money?

Exercise, and eat right.

Here's why: When we're overweight, not exercising and not eating healthy foods, we're at higher risk for obesity, cardiovascular diabetes, hypertension, stroke and certain cancers, to name a few health conditions. And paying to treat these illnesses and conditions often comes with a big price tag.

"The incidence of healthcare dollars is huge that has to go toward any of these illnesses or conditions from leading a sedentary lifestyle," says Michele Malone, director of the Babka Wellness and Kehl Diabetes Center at The Finley Hospital.

A Centers for Disease Control and Prevention analysis confirmed that individuals who are physically active have significantly lower direct medical costs. The analysis found that getting people to become more active could cut medical costs in the United States by more than $70 billion.

So, what should you do if you prefer the couch to your running shoes? Malone offers a few easy, inexpensive ways to get moving – and start saving more of your healthcare dollars:

"The No. 1 activity that you can do is walk. If you watch TV, walk around your house during commercials," she says. "Or put your exercise bike or treadmill in front of the TV. You can use soup cans around your home to do some weight exercises."
If you haven't exercised in awhile, start with 10 minutes each day, and gradually increase your workout sessions (consult with your physician first). "Even if you have 10-minute segments three or four times a day, that still is beneficial for us," Malone says.
We're in a great environment to grow our own vegetables," she says. "If you're eating healthier, you're not buying so much pop and alcohol and processed things. Water is relatively low cost."

By Emily Kittle

Budgeting for a baby

2012-01-19T09:29:00.000-06:00

Are you ready – financially – to have a baby?

You've started talking about your favorite names – and the ones to avoid. You've got the colors picked out for the would-be nursery. You’ve been daydreaming about family trips to the park.

It's decided: You and your partner-to-be in parenting are ready to have a baby.

But do you have a financial plan in place to account for the growing family?

Tami Rechtenbach, director of member services at Dupaco Community Credit Union, says she's seen many parents-to-be leave the financial planning side of family planning as an afterthought.

"It's really expensive. Make sure you have a financial plan to go along with the hopes and dreams of having a family," she advises. "Are you going to stay at home or work? What kind of income do you have versus the cost of daycare? What are your goals as far as saving for college and providing for your child's education?"

To help plan for overall expenses in childrearing, the U.S. Department of Agriculture offers a free online Cost of Raising a Child Calculator. It estimates how much it will annually cost to raise a family, taking into account everything from higher grocery bills to added life insurance premiums.

Rechtenbach suggests meeting with a financial planner at your credit union to find out how to financially support the family structure you hope to achieve.

"I see a lot of people at my desk who are financially struggling. One person was here last week, and he said, 'Now that I have a child, I really want to fix this,'" Rechtenbach says. "I think if you can put a little thought into it ahead of time, it will make it easier in the long run."

By Emily Kittle

Make your tax refund work for you

2012-01-11T09:47:00.000-06:00

It won't be long before Tax Day arrives.

It's not too soon to start thinking about what to do with your refund from Uncle Sam. After all, the majority of us will receive one, with the average refund totaling $2,905, according to the Internal Revenue Service's latest figures.

But to many taxpayers, the refund feels like lottery winnings.

"The majority of people do not save it, which is what they should be doing," says Dupaco Community Credit Union's Lisa Kruser.

Rather than spend the cash, there are ways you can make the money work for you. Kruser and Paula Ervolino, both financial service representatives at Dupaco's JFK branch, offer five ways to best use your hard-earned refund:

Get a no-cost Dupaco Money Makeover. A Dupaco Makeover Artist will look at your total financial picture to identify opportunities where you can cut costs and build savings. During the one-on-one meeting, you can find out where your tax refund will benefit you the most.
Save for retirement by investing your money into a traditional or Roth IRA. Dupaco's member service department can help you get started with as little as $5.
Pay down credit card debt to avoid paying high interest rates. "If you have to carry debt, you want to make sure you're carrying the least interest-accruing debt possible," Ervolino says.
Use the money to open one of Dupaco's You Name It Savings Accounts. That way, the money is there when you need it.
Talk to an investment professional at Dupaco Financial Services to get an overall picture of your finances, and to make sure you're on the right track to saving for the future.

Once you've filed your taxes, you can check on the status of your refund with the IRS' online tool Where's My Refund?

By Emily Kittle

New year, new loan: It's not too late to refinance your home

2012-01-04T11:08:00.000-06:00

If you haven't refinanced your mortgage lately, you're not alone.

In fact, Consumer Reports says that about three of five homeowners with mortgages pay interest rates that are higher than today's bargain rates, according to the Home & Family Finance Resource Center.

But it's a new year, and it's not too late to take advantage of the rates, which are near a 50-year bottom. On Wednesday, Dupaco Community Credit Union's 30-year fixed-rate mortgage was 3.875 percent, while the 15-year fixed-rate loan was 3.25 percent.

"It's worth scheduling an appointment to take a look at refinancing options," says Jeann Digman, vice president of mortgage lending at Dupaco. "It doesn't cost anything to review the figures."

If you're eligible for a lower mortgage rate, you might benefit by:

Reducing your monthly payment.
Reducing your loan term. "We've done a lot of 15-year fixed mortgages and have been able to help them make about the same payment they were making at a 30-year fixed rate, so that saves them quite a bit," Digman says.
Working with someone locally when you have questions about your loan.

But know that there are fees involved – on top of the lender's traditional closing fees. Fannie Mae, for instance, is charging fees based on borrowers' credit scores, loan-to-value ratio (the loan amount as a percentage of the estimated appraised value of the property) and the purpose of the loan, Digman says.

"Typically most everybody has to pay a quarter percent, one-time fee based on their loan amount," she says. "If their credit score is lower than 720, their fee starts to increase."

If your credit score is lower than you had anticipated, don't immediately disqualify yourself. Digman says her staff has helped several members by reviewing their credit history and offering ways to improve their score.

"We've said, 'These are the things you need to do to get your score up,'" she says. "Rates have been holding steady, so they've been able to come back in a couple of months, and their fees have decreased because their credit scores have increased."

By Emily Kittle

New Year's resolutions: 6 financial goals for 2012

2011-12-30T00:01:00.002-06:00

Trying to become more financially fit?

Resolve to make simple changes that can net big savings. Tami Rechtenbach, director of member services at Dupaco Community Credit Union, offers six financial goals worth aiming for in the New Year:

Get a Dupaco Money Makeover. A Money Makeover gives you the opportunity to review your total financial picture to see where you might be able to cut costs and build savings. It also offers a great opportunity to review your budget for the New Year.
Practice systematic saving. Determine how much you can afford to have automatically transferred from each paycheck and deposited into a savings account. Consider this: If you opened a savings account with $50 and deposited $25 from every paycheck into your account, you would save $647 by the end of the first year (at the current 0.25 percent interest rate, and assuming you're paid twice a month). Not sure how much you should be setting aside? Check out these budget calculators.
Review your debt. With the help of your financial institution, look at your debt – from home loans to car loans to credit cards – and find out whether you would benefit from refinancing your loans or moving credit card debt to a lower-rate credit card.
Go green. If you haven't already, this is the year to embrace technology, especially when it comes to your finances. Take advantage of online banking, e-statements and smart phone apps that allow you to do everything from check your balances to transfer money.
Teach your children to save. Dupaco offers a host of interactive tools to help kids get involved and excited about saving.
Set up your Holiday Club savings account. You can allocate a certain portion of each paycheck to automatically be distributed into your Holiday Club. Around November 1, the money is moved into your checking account for holiday spending.

By Emily Kittle

"Sesame Street" lessons in saving

2011-12-27T05:00:00.002-06:00

Elmo has taught millions of children how to rhyme, to count, to imagine – even how to go potty like a big kid.

Now "Sesame Street's" loveable red Muppet is teaching kids the ABCs of financial literacy.

Through a new initiative, Elmo and the rest of the "Sesame Street" gang are talking about basic money matters: the importance of saving, making good spending choices and sharing some money with others.

"For Me, For You, For Later: First Steps to Spending, Sharing, and Saving" features videos, tips, activities and games that can help your child build strong financial habits for the future.

"A growing number of researchers and educators believe that financial education should start early in life," Gary Knell, president and chief executive officer of Sesame Workshop, says in a press release.

Here’s a "Sesame Street"-approved activity you can try with your little one:

3 Jars: Gather three clean, clear jars. Label them Spending, Sharing and Saving. (You can download jar labels here.) Have fun decorating the jars with stickers, paints and pictures that represent what your child is saving for. Help your child set goals for what to do with the money in each jar. As you add spare change or gifts of money, your little saver can watch the money grow.

How do you talk to your kids about money?

By Emily Kittle

Purchasing by credit card may offer additional protection

2011-12-23T00:01:00.001-06:00

Credit or debit?

Before being asked at the checkout which type of plastic you're using, ask yourself the same question. Credit cards and debit cards operate differently, so it's important to understand the benefits and protections offered on the cards you carry and use.

When it comes to small, day-to-day spending, go with the card that works for you, says Carrie Culbertson, a share draft and card service specialist at Dupaco Community Credit Union's JFK branch.

But there are other times when a credit card is your better option. Here are four times when you should use credit over debit:

Travel purchases. Many travel-related merchants, including car rental services, hotels and airlines, will authorize for a higher amount than what you’re actually spending to account for incidentals and potential problems. Eventually, the posting transaction will be corrected. But if you used a debit card, the higher authorization will affect your available checking balance until then.
Big-ticket items. Any time you're spending a large amount, use your credit card, especially if you regularly use your checking account to pay bills. While a debit card immediately withdraws money from your checking account, credit cards afford you time between when you make the purchase and when your bill is due. "That way, if there is a problem and the merchant needs to issue credit, you aren't short on your checking account while you're waiting for the error to be corrected," Culbertson says.
Travel benefits. Some credit cards, like the Dupaco VISA, offer free cardholder benefits, including travel accident life insurance and disability, emergency assistance and car rental insurance. "Check to see what kind of benefits your credit card offers in regards to traveling. A lot of times it's something you forget you have," Culbertson says.
Warranty benefits. Before purchasing something that comes with an optional extended warranty, find out whether your credit card offers additional no-cost warranty protection. Some credit card companies offer that service to their cardholders.

The financial gender gap

2011-12-20T05:00:00.000-06:00

Women continue to lag far behind men in financial literacy, and most face a troubling financial future, according to a new study.

"Gender Gap in Financial Literacy," conducted by the financial education firm Financial Finesse, finds that women remain significantly behind men when it comes to basic money management skills – and are in danger of not meeting long-term income needs.

Here's a by-the-numbers look at the study's key findings:

Investing: 25 percent of women reported feeling confident with how their investments were allocated compared to 42 percent of men.
Budgeting: Only 63 percent of women said they had a handle on their cash flow versus 80 percent of men.
Credit cards: 49 percent of women regularly pay off their credit card balances in full compared to 65 percent of men.
Retirement preparedness: Both women and men are woefully unprepared, with only 12 percent of women and 19 percent of men confident they will be able to replace 80 percent of their income in retirement.
Employer retirement plans: 92 percent of women and 91 percent of men contribute to their employer's retirement plan. But women might be investing too conservatively to meet their income needs in retirement, considering they live an average of five years longer than men.

By Emily Kittle

Many singles delay saving for retirement

2011-12-16T05:05:00.000-06:00

Singlehood has its perks.

You don't have to consult with several calendars before returning an RSVP. There's no battle for control of the TV remote. You can make big decisions without worrying about how it will affect your spouse.

But it might be more difficult for singles to become retirement ready.

A recent Charles Schwab Retirement Survey found that only 67 percent of singles are saving for retirement, compared with 85 percent of married people.

And more than half of the single respondents, 57 percent, say that not having a spouse's additional income and investments as a safety net could be a challenge.

If you're single and not retirement ready, consider these tips from AARP and the Home & Family Finance Resource Center:

If you have a 401(k) plan through your employer, contribute at least enough to receive your employer's match. AARP's 401(k) fee calculator can help you determine fees associated with individual plans.

Seek professional advice. "In retirement, your primary goal becomes much more complex: to continue to grow the pie while simultaneously eating it. Going without a competent adviser at this stage could be a big mistake," Joseph Hearn writes in a recent AARP Bulletin.

Live within your means. Create a budget, and stick to it. Use one of Dupaco's budget calculators to help determine how much you're spending.

AARP's retirement calculator can help you evaluate whether your retirement is on track.

Start today. The earlier you start preparing and saving for retirement, the longer you have to build your nest egg.

By Emily Kittle

Saying farewell to the paper savings bond

2011-12-13T00:01:00.003-06:00

Paper savings bonds are becoming a thing of the past.

Beginning Jan. 1, 2012, U.S. Savings Bonds will no longer be sold through financial institutions or mail-in orders. Instead, they must be purchased online through TreasuryDirect. (You can continue to redeem existing paper savings bonds at no charge at a financial institution or TreasuryDirect.)

So, what is TreasuryDirect? The secure, web-based system allows you to:

Buy, manage and redeem electronic savings bonds online.
Convert paper savings bonds to electronic.
Set up a payroll savings plan to automatically invest in savings bonds.
Establish accounts for minor children.

It takes about 10 minutes to set up a free account with TreasuryDirect. Click here for a step-by-step guide to get started.

The U.S. Department of Treasury says this will save taxpayers an estimated $70 million over the next five years. But the switch to an electronic format means other changes, too.

"The majority of the people that engaged in the paper bonds are older members, and they used them for gifts for grandchildren," says Tami Rechtenbach, director of member services at Dupaco Community Credit Union. "It's going to a mean a real change in their traditions in gift giving."

There are alternative savings options when it comes to purchasing gifts for young children. Your financial institution can help you open a special savings account in which you can make deposits into the child's account and determine when the child has access to the funds.

"Dupaco can give them receipts to put in the birthday card like they used to do with the bonds," Rechtenbach says. "Then the child can still see the money grow."

By Emily Kittle

Prepping for Tax Day

2011-12-09T14:47:00.000-06:00

Tax Day may be a million miles away from your mind right now. But if you scurried to hit the federal deadline last tax season, you know how quickly April 15 arrives.

I picked the brains of two local tax experts for advice on prepping for Tax Day 2012:

Verify with your employer that you're withholding the correct filing status (married or single) and the correct exemption amount on your paychecks.
If you use your vehicle for your own small business or for a company that doesn’t reimburse mileage, record your mileage so you get the maximum deduction.
If you're self employed, come up with a system – file folders work well – to keep track of your income and expenses (supplies, telephone bills, postage, rent). That way, everything is in one location and you're not rushing to find paperwork in 20 different places when it comes time to file.
If you've purchased or sold stocks, keep all of that information together. It makes things much easier for the person filing your taxes.
If you think you will owe money, talk with your tax preparer and ask for a blank estimate. Making an estimated payment before the year is over will lower your penalty. Every little bit helps.

So get to it. At the time of this post there were only 127 days, 8 hours, and 12 minutes left until Tax Day!

Thanks to Tammy VanCleve, a partner and accountant at Riverview Tax & Accounting in Dubuque, and Melissa Geers, a tax preparer at Classic Tax & Accounting, which serves the Marion/Cedar Rapids, Iowa, area.

By Emily Kittle

What a deal: social network provides locals garage sale alternative

2011-12-06T23:59:00.001-06:00

A Dubuque woman has started a kind of online revolution in second-hand retail.

Taking a page from a thriving social network in her brother's community, Mariah Routley launched a Facebook group called Dubuque Area Garage Sales.

The idea is to take the thrill of the garage sale to the Information Superhighway. Post photos and descriptions of the items you want to sell, and local garage-sale loving "friends" peruse and purchase to their hearts content.

Routley's vision quickly became a booming success. Started in late summer, Dubuque Area Garage Sales boasts more than 2,600 tri-state area members who advertise everything from clothes to toys to vehicles.

The site speaks to a newfound frugality in these post-Great Recession times.

"I've seen it grow crazy numbers," Routley says. "The reason why it's growing is from word of mouth. There was a demand for something like this."

Routley recommends reading the group's usage rules before deciding whether to participate. To get started, simply request to join the group.

Items are added to the group's page throughout the day, and those interested in purchasing are encouraged to send private messages to the seller. The buyer and seller decide when and where to carry out the transaction.

"It's just like a regular garage sale, except you're sitting at your computer," Routley says. "People barter all the time."

By Emily Kittle

Giving guide: tips for making charitable donations

2011-12-03T04:00:00.002-06:00

'Tis the season for giving.

And it's important to remember those in need, says a local philanthropy expert.

"Local nonprofits are the organizations that make a real difference right here in Dubuque. They know where our community's greatest unmet needs are and work hard every day to meet them," says Hillary Baker, director of communications and donor relations at the Community Foundation of Greater Dubuque.

"In tough economic times like these, the need is even greater, making your support of local nonprofits more important than ever."

If you'd like to donate to a nonprofit, use GuideStar to investigate charitable organizations. The website details both the mission and financial stewardship of nonprofits. To learn more about local nonprofits, visit the Community Foundation of Greater Dubuque's Giving Center.

For tax-reporting purposes, Baker offers these donating guidelines:

Your gift of cash or property must meet certain criteria in order to be tax-deductible.
You must actually donate cash or property. A pledge or promise to donate is not deductible until you pay.
You must contribute to a qualified tax-exempt organization. Charities will let you know if they have received their 501(c)(3) tax-exempt status. Some organizations, including churches and other religious organizations, are not required to obtain this status from the IRS.
You must be able to itemize. Giving to charity is a great tax planning strategy, but it only works for people who are eligible to itemize their deductions.
You must meet record keeping requirements. This includes saving canceled checks, acknowledgment letters from the charity and appraisals for donated property.

By Emily Kittle

Seal up budget leaks through home winterization

2011-12-01T14:13:00.000-06:00

Ready or not, Midwest winter weather is here

The colder temps creeping into the forecast is a reminder of the assault Mother Nature can take on our heating bills. But it's not too late to make your home winter-ready.

Alliant Energy spokesman Justin Foss offers four easy ways to reduce your energy bills during the winter months ahead:

Turn down the thermostat. When you're not home, you can turn it down to as low as 55 degrees. You'll see the biggest payoff when you're gone for four or more hours.
Reduce drafts. It's not too late to make sure the seals around your doors and windows fit properly. If your windows are leaking air, use shrinkable plastic wrap to help seal them. Consider replacing the door sweep if your door leaks air.
Have your furnace serviced. Have a qualified service technician inspect your furnace. It's better to find a problem now rather than during subzero temperatures. "A lot of people think it's a waste of $70, but there are critical pieces in there that the average homeowner doesn't know the inner workings of," Foss says. Find out whether your natural gas provider offers rebates for this important maintenance step.
Save money with space heaters. Space heater manufacturers often claim that their product can save you money on your energy bill. But that only happens when you turn down your furnace while using the space heater. And, don't forget to turn off the space heater when you're done using it.

On a safety note, carbon monoxide poisoning can be especially dangerous during the winter, when our homes are sealed up tight.

"Take a look around your house and make sure everything is the way it should be," Foss says. "And we'll get through this winter as we do all winters as hearty Midwesterners."

By Emily Kittle

Budget basics for guilt-free holiday spending

2011-11-24T04:00:00.002-06:00

As stores gear up for the holiday shopping season earlier each year, it's easy to get swept up in all of the deals and steals.

But you can celebrate the season of giving without breaking the bank. With Black Friday around the corner, Tami Rechtenbach, director of member services at Dupaco Community Credit Union, offers some simple tips to help you navigate your holiday shopping:

Set your budget and make a list before you shop. "You have to sit down and ask yourself: What can I afford, and how do I distribute that? Determine what's comfortable for you," Rechtenbach says. "And stick to your budget."
Think twice about shopping on Black Friday. "A lot of impulse buying happens that day," Rechtenbach says. "You get consumed by the spirit of the deals and forget to be practical."
Shop with envelopes. Rechtenbach's daughter, a college freshman, came up with a creative approach to avoid overspending: She labeled an envelope for each person she was shopping for, and she put her spending money for each recipient inside the corresponding envelope. "When that envelope was empty, she knew she was done," Rechtenbach says. "I thought that was pretty smart."
Take advantage of your credit union's Holiday Club savings account. Now is a great time to start saving for next year's holiday shopping by setting up a Holiday Club account. At Dupaco, many members allocate a certain portion of each paycheck to automatically be distributed into their Holiday Club. When Oct. 31 rolls around, the money is moved into their checking account for holiday spending. This year, 3,400 members utilized the service and saved more than $3.3 million. To get started, Dupaco members can stop by any Dupaco branch or call 1-800-373-7600.

For help creating a spending plan that works for you, check out the Home & Family Finance Resource Center's ideas.

By Emily Kittle

When a bill doesn't add up, pick up the phone

2011-11-22T15:14:00.000-06:00

Sometimes, it pays to be persistent.

When my family started receiving bills from a couple of routine doctor's appointments, we were stunned by the high totals we were being asked to pay out of pocket.

Rather than simply pay the bills, I picked up the phone.

After a series of phone calls, I found out that we were being billed about $360 in "facility charges," on top of the doctor's regular fees.

The medical center's billing policy is spelled out in its handbook, but I was never offered one – until after I questioned the bills. I politely but firmly told the medical center that its billing policy should have been spelled out upfront.

The medical center apologized for the lack of communication – and acknowledged that it's been an ongoing problem with other patients – and generously waived the $360 in "facility charges."

It really does pay to monitor your bills, statements and other financial documents. And it's important to speak out when something doesn't add up.

If you have questions about a bill, consider these simple steps provided by Laura Chavez, a dispute resolutions specialist at the Better Business Bureau in Des Moines:

Try to communicate with the company first. "Open the lines of communication," she says. "There's often an explanation behind it, and oftentimes they're not flat out trying to scam you." Many times, the miscommunication or misunderstanding can be easily resolved.
If you still have questions, ask the company for an itemized statement that spells out the charges.
If you remain dissatisfied, the Better Business Bureau is often able to assist consumers and businesses reach a mutual agreement through its Dispute/Resolution services. To file a complaint, visit the Better Business Bureau online or call 1-800-222-1600.
Due to each situation being unique, when the Better Business Bureau is unable to help both parties reach a fair resolution, litigation can be pursued.

By Emily Kittle

Homebuyer beware: paying for an accelerated loan payoff

2011-11-18T10:03:00.000-06:00

Homebuyers know what it's like to be bogged down with paperwork.

But the barrage doesn't end at the closing table.

Often within days of the purchase, homebuyers are inundated with mailings that appear to be coming from their lender. Usually, they're not from the lender.

These "offers" come from so-called mortgage service companies peddling mortgage insurance and solicitations to set up automatic bi-weekly mortgage payments. And the recipients often are left wondering whether they're being required to complete more documents.

Even those who work in the financial services sector find the mass mailings confusing. Jennifer Hanniford, Dupaco Community Credit Union's assistant vice president of interactive marketing, recently refinanced her mortgage. About a week later, the "offers" started arriving in her mailbox.

"None of them were very clear in stating who their company really was," she said. "Even as an employee of Dupaco, I wasn't sure if some of the pieces I'd received were from Dupaco. I actually had to ask someone here."

Shannon Heims, a mortgage consultant at Dupaco's Cedar Rapids, Iowa, branches, says she fields many calls from confused members who receive similar mailings. Heims says third-party companies, with no connection to the lender, obtain the information from public records.

"It's a business," she says. "They market to people who have just received a new mortgage, and they solicit these buyers to set up biweekly payments. They sell it as this accelerated payment program to help get your loan paid off faster.

"But there's always a fee attached to do it."

If you receive a similar mailing, look at the mail piece closely to determine whether it came from your lender. If you're not sure, ask your lender.

Talk to your lender before setting up biweekly payments through any third-party. Oftentimes, your lender will do that for you at no cost, unlike the solicitation that arrived in your mailbox.

By Emily Kittle

Why you need an umbrella policy

2011-11-14T09:30:00.000-06:00

Sometimes, it doesn't pay to cut corners.

A recent survey found that one in three homeowners are buying less homeowners insurance to save money.

"You could be setting yourself up for a big surprise," says Mark Kremer, an agent with Dupaco Insurance Services. "Typically, you can't rebuild a house for what you can buy a house for. You want to make sure you're insuring that home for true replacement costs."

It's also important to not skimp out on an umbrella policy. A $1-million umbrella policy provides liability coverage beyond the limits of your auto- and homeowners-insurance policies.

"Anybody that's got any sort of assets to protect should have one," Kremer says.

Here are three things you should know about umbrella policies:

It can protect you from devastating lawsuits. The average homeowner carries $300,000 or $500,000 worth of liability coverage on their home. But what if someone was severely injured or killed on your property, or in a collision that you caused? "They're not going to sue you for $500,000 and say, 'We're done,'" Kremer says. "Lawsuits are getting to be closer to a million or more dollars." If something devastating like that happened, your umbrella policy would kick in, giving you an additional $1 million after you've exhausted your liability coverage under your auto or homeowners policy.
'It's the cheapest retainer for a lawyer.’ The average person with one house, two vehicles and a clean record will typically pay $100 to $140 per year for a $1 million umbrella policy. "It’s the cheapest retainer for a lawyer," Kremer says.
You might need to bump up your liability limits to qualify. Most insurers require you to carry a certain amount of liability coverage on your auto and home to qualify for an umbrella policy. Talk to your agent to find out how you can obtain one, and how much it will cost you. If you currently carry lower auto limits, you might actually save money by increasing your coverage: "With some companies, they'll give you a price break for higher limits, because they see that you recognize the importance of doing so," Kremer says.

By Emily Kittle

Would you like a receipt with that?

2011-11-08T11:06:00.001-06:00

In my quest to keep our home as clutter-free as possible, I tend to be a bit of a receipt minimalist.

When fast-food restaurant employees ask if I'd like a receipt, I generally decline. The same goes for the gas pump; if I have a choice, I skip the receipt.

My husband is the opposite. He requests a receipt for everything – even for those $2 purchases. He tells me things like, "You never know when we might need that receipt."

His rescued receipts, however, typically turn up crumpled in pockets, on a dresser, in the laundry, on the kitchen counter, you get the idea.

Turns out, we're both approaching the whole receipt thing the wrong way.

Carrie Culbertson, a share draft and card service specialist at Dupaco Community Credit Union's Hillcrest branch in Dubuque, says cardholders should always take a receipt for debit and credit card purchases. The benefits of taking it, she says, far outweigh the inconvenience of carrying around a little extra paper.

"We would advise you to keep it and then use it for the intended purpose – use it to reconcile your checkbook register or your statement," she says. "If there is a discrepancy, you can go back to the merchant and you have proof of what you paid for and what posted to your account."

Culbertson recommends keeping receipts together – not scattered around the house – in a safe place. If bills are paid by the computer, consider storing the receipts there, too.

Once purchases have been reconciled with credit card statements or online banking accounts, shred them and get rid of them.

That sounds like a compromise my husband and I can both live with.

By Emily Kittle

Big bank backlash sparks consumer exodus to credit unions

2011-11-04T09:03:00.000-05:00

Thousands of people have awakened to the advantages of credit unions and are prepared to say goodbye to their bank.

In a social media phenomenon, more than 75,000 people have committed to leave their large banks in favor of credit unions on or before Nov. 5. "Bank Transfer Day," sparked by Bank of America's $5 monthly debit card fee, was started by a Los Angeles art gallery owner who was fed up with her bank.

Dupaco Community Credit Union is a co-operative with nonprofit status, so it can offer its members better services and products--like free debit cards and checking accounts--putting people before profit.

Tami Rechtenbach, director of member services at Dupaco, says those kinds of free services, ultimately allowing people to keep and grow more of their money, should make worthwhile any minor inconvenience of switching an account.

"It's a lot easier than people think it's going to be," she says. "If they work with people they trust who will walk side by side with them like we will, we can take a lot of the fear out of switching."

Dupaco offers a unique, hands-on approach to helping prospective members make the switch. Here’s what you can expect:

Come prepared. Bring your three most recent bank statements and bills from businesses that are authorized to directly debit your account. "The scariest hurdle for people is turning around all of their automatic payments," Rechtenbach says. “But if you come with those bills in hand, we can help get that prepared for you."
Open your new account. Also, order your checks and debit card so you have the tools in hand to access your funds when your payroll starts depositing into the new account.
Ask your employer to reroute your direct deposit. It might take one or more pay cycles for the change to take effect.
Keep your old account open. Leave it open for at least 30 days until you are receiving direct deposit into your new account and are sure that there are no outstanding checks or automatic debits that need to clear. Rechtenbach recommends keeping $300 to $400 in the account during the transition.
Expect value beyond freebies. If you can give Dupaco about 45 minutes when you open your new account, you’ll come out with more than a new financial institution. (If you don't have that much time, that's OK, too.) When you open your account, a Dupaco employee will pull your credit report and help you understand what's on there, talk to you about your credit score and offer ways to improve your score. Dupaco also will review your debt and interest rates, and determine whether restructuring your payments would save you money. "When you leave, hopefully we're putting you in a better overall financial position," Rechtenbach says. "We've saved members thousands of dollars with our Money Makeovers by helping them save over the long haul."
Close your old account. When you no longer need your old account, write out a check for your remaining balance and deposit it into your new account. Then, call the financial institution and follow its procedures for closing out the account.
Find your credit union away from home. Many credit unions, like Dupaco, participate in a shared branching network. It offers members thousands of credit union locations nationwide so that they can perform everyday transactions wherever they go.

Consumers don't need to wait for a "declared" date like Bank Transfer Day to move their money to a credit union, says Rechtenbach.

"Every day, Dupaco aims to help people improve their financial futures--no matter what banks do-- good, bad or otherwise," she says. "That's our mission."

By Emily Kittle

Scammers feast in 'target-rich environment'

2011-10-25T06:05:00.001-05:00

High unemployment rates and a collapsed housing market have created the perfect incubator for scam artists.

Scammers are seizing on the financial fears of people desperate to accept offers that sound too good to be true.

"Unfortunately right now times are tough, and sometimes you let your guard down because you're more vulnerable," says Dubuque Police Lt. Scott Baxter, a crime prevention officer. "It's a target-rich environment for these scammers because they know that."

Many scams are concentrating on those suffering financially, according to a recent story by the AOL Huffington Post Media Group.

Now more than ever, Baxter says you can't afford to let your guard down. Here are four ways to stave off financial scams:

Follow that gut instinct. You aren’t going to win a sweepstakes that you didn't enter.
Don't trust your caller ID. Scam artists use spoofing websites to make it look like you’re receiving a phone call from a known business. The caller explains that your account has been compromised and asks for account information to verify your identity. “Tell me a bank or company that calls you and starts asking you for personal account information and passwords,” Baxter says.
Scam artists play on victims' emotions. When a scammer calls and identifies himself as a family member in need of money immediately, he wants you to make a rash decision. No matter how believable the caller sounds, take control of the situation: slow down, think it through and make phone calls to verify what you've been told.
Whenever possible, buy locally from a trusted source. While buying online can be more convenient, consider that the farther away you do your business, the more risk you take on. "The things that are great and convenient and easy for us are also easy for the scam artists," Baxter says.

By Emily Kittle

Fright-free Halloween spending

2011-10-19T06:05:00.001-05:00

The Halloween season is upon us, and the stores are packed with adorably creepy costumes and decorations.

It appears this year's celebration will be far from tempered, with people expected to spend slightly more. The average person will shell out $72.31 on decorations, costumes and candy, up from $66.28 last year, according to the National Retail Federation's 2011 Halloween Consumer Intentions and Actions Survey.

But you don't have to spend a lot to celebrate the spooky season. Consider these tips from Cindy Hilkin, a loan consultant at Dupaco Community Credit Union:

Costumes: Magazines and websites are great resources for frugal alternatives to store-bought costumes. Plus, it's a great way to get the whole family involved. If you're short on time, call a friend. "Borrow something from them because their kids probably used it last year for a couple of hours and it's now sitting in their closet," Hilkin says.
Decorations: Don't mess with tradition. "All of my kids are 6 and under, and their favorite decorations are the pumpkins," Hilkin says. Her family is considering growing their own pumpkins next year. It's even cheaper, and it will offer her kids a chance to watch their efforts grow.
Know your budget: "So many people have no idea where their money goes each month," she says. "Knowing that Halloween is coming up, plan ahead."

For a fun and frugal twist on traditional pumpkin decorating, check out this idea from Disney FamilyFun magazine:

Freaky Faces: These collage pumpkins are easy for little hands to decorate, and because they're no-carve, the pumpkins will last longer.

You will need: Old magazines or catalogs, glue dots and pumpkins.

Cut out noses, mismatched eyes and ears, mouths, hair and accessories such as glasses and jewelry from magazine pages. For ears that stick out, cut out each one with a tab you can fold back.
Use glue dots to attach the features and accessories to the pumpkins. Display your pals in a covered area to protect them from the elements.

By Emily Kittle

Shared branches serve up no-cost, homestyle banking conveniences

2011-10-17T17:10:00.001-05:00

You're on the road, hundreds of miles away from home. You could use a cash recharge, but you're a long way from your credit union.

No worries.

Shared branching keeps you connected to your credit union – no matter where you go.

More than 4,400 credit union branches nationwide share facilities to give members a variety of locations to perform everyday transactions.

With shared branching, members can make deposits and withdrawals, loan payments and transfers between accounts. Members also can purchase money orders, travelers checks and official checks.

"It's very convenient for job transfers," says Dawn King, a member service representative at Dupaco Community Credit Union's Williams Boulevard branch in Cedar Rapids, Iowa. "They don't want to leave their credit union because they have loyalty to it, and this makes it so they can access their account through any credit union that's part of the network."

Each month, Dupaco's Cedar Rapids shared branches serve anywhere from 300 to 400 members of other credit unions, King estimates.

Click here to locate participating Credit Union Service Centers.

To use the free service, you only need to bring two things: your account number and a valid government-issued photo ID. Some credit unions will ask you to complete a simple form.

"It's pretty well liked, and everybody treats you like you're in your own home credit union," King says. "And that's the whole point."

By Emily Kittle

Free checking, debit card programs do still exist

2011-10-12T09:43:00.000-05:00

Fee or free?

It's a pretty easy choice.

Some of the nation's biggest banks are starting to charge fees to debit card holders for using certain bank accounts.

It seems a wave of fees is inundating consumers – but there is shelter from the storm.

Some financial institutions, like Dupaco Community Credit Union, are standing firm on their fee-free account access policies. At Dupaco, free checking remains free. There's no monthly fee, no debit card fee, no minimum balance requirement and no direct deposit requirement.

With so many changes – and charges – facing consumers these days, Carrie Minor, a senior loan officer at Dupaco's Williams Boulevard branch in Cedar Rapids, Iowa, advises financial services customers to get the 411 on fees.

"(Consumers should) ask their financial institution if there are any kinds of charges for having a debit card or usage of their debit card," Minor said. Find out if there is a usage limit when fees kick in, or if your financial institution requires a minimum balance to stave off charges.

Minor offers these other tips to help you navigate through today's minefield of fees:

Pay close attention to your financial statements to see whether any fees are being assessed to your accounts. Even if your financial institution told you there will be no fees, it's good to see for yourself.
If your financial institution has imposed debit card and checking account fees, find out whether there are ways to avoid the charges. Or, consider looking elsewhere. Free checking accounts and debit cards still exist.
If you're looking to switch financial institutions, keep your original account open for at least a couple of weeks to make sure all of your automatic payments and deposits transitioned correctly into your new account.

By Emily Kittle

How you can save when you pay

2011-10-05T14:03:00.000-05:00

How do you pay at the checkout?

Cash? Credit? Debit?

When it comes to purchasing, it turns out not all payment methods are equal.

In its September issue, Consumer Reports offered eight ways to save when paying. Here are four of the magazine's suggestions:

Never pay a fee to pay by debit. While the fees aren't common, some merchants impose them. Report the merchant to your debit-card issuer.
Avoid ATM fees. Use your financial institution's no-fee ATMs or use the fee-free cash-back feature offered by many retailers when you pay with a debit card.
Pay bills electronically. Save time, postage and check-printing fees by using the electronic bill-pay feature, which is part of online banking at most financial institutions. It helps ensure payments reach credit-card issuers before the monthly due dates to avoid late-payment fees.
Ask for a discount when paying with cash. The merchant won't owe transaction fees on your cash purchase, so you might be able to save some green.

College Savings Month: Benefits of Iowa’s 529 Plan

2011-09-29T15:00:00.001-05:00

The high cost of higher education continues to rise.

But Iowa's 529 plan gives families a head start on saving for college.

Here are five ways the College Savings Iowa plan can benefit Iowa families:

Every $1 you put away for college offers the potential to save you from borrowing $3.
Your assets grow tax-deferred, and withdrawals are exempt from federal income tax and Iowa state income tax when used for qualified higher education expenses. Earnings are fully exempt from Iowa state income tax. Iowa taxpayers can deduct up to $2,865 in contributions per beneficiary account from their adjusted gross income for 2011. For example, a married couple with two children contributing to separate accounts can deduct up to $11,460 (that's 4 x $2,865) in 2011.
The plan offers several investment options, including age-based savings tracks that reallocate your savings over time to more conservative investment options as the child nears college age.
The plan offers low investment costs.
Participants can take advantage of Upromise, which enables families to earn cash rewards from their everyday spending. The free service helps you save for college by returning a percentage of your spending at hundreds of companies, including McDonald's, ExxonMobil and many supermarkets.

By Emily Kittle

A gold mine in your jewelry box?

2011-09-21T14:32:00.000-05:00

With the price of gold rising steadily in recent weeks, there's been a rush to sell old gold for cash.

And it's happening locally.

Gold was up 12 percent last month after touching an all-time high of $1,917.90 an ounce on Aug. 23, Bloomberg reported.

As a result, Mike Doland, owner of Doland Jewelers in Dubuque, says more people have been coming into his store to sell their gold.

"We see a lot of broken chains, class rings, worn-out rings and sometimes dental gold, with the teeth and all," he says. "Sometimes divorced jewelry will show up."

If you're on the fence about cashing in on your old jewelry, Doland has some advice for you:

Once it's gone, it's gone. Make sure there's no sentimental attachment to what you're selling. You don't want to part with Grandma's ring and regret it later.
It's worth finding out. Rather than assume a piece of jewelry is worthless, take it to a jeweler who can identify it. "Once in a while, a person is surprised. They can have a handful of costume jewelry and in the middle of that can be a nice piece of gold," Doland says.
Keep it local. Be leery of TV commercials that instruct you to package your gold in an envelope and wait for your check. Instead, look to familiar places such as the jeweler who sold you the piece.
Be realistic. When you sell scrap gold, you're not selling the craftsmanship or work that went into the piece. You're receiving the value of the raw material. Jewelry is never made of pure gold.

For more tips, visit the Home & Family Finance Resource Center.

By Emily Kittle

National Preparedness Month: Can your finances weather a disaster?

2011-09-13T16:37:00.000-05:00

When preparing for the unexpected, it's important to have a financial plan in place, too. Like the saying goes, if you fail to plan, you plan to fail.

Tami Rechtenbach, director of member services at Dupaco Community Credit Union, offers these tips to help you be prepared – on the financial front – for a disaster:

Have an emergency fund, or a "Don't Touch" account, for unexpected expenses or job loss. Aim for saving three months worth of your salary in the separate account, and consider directing a portion of each paycheck to automatically be deposited there. "Even if all they can afford is $5 a week, start somewhere and get in the habit of saving," Rechtenbach says.
In your disaster kit, keep some extra cash on hand. ATMs and credit cards won't work if the power is out.
Keep inventory of personal and financial information that's in your wallet or purse. Photocopy the front and back sides of each of your credit and debit cards, then store it in a safe or safety deposit box. "I just went through a personal situation with somebody who had their wallet stolen," Rechtenbach says. "In trying to cancel their credit cards, they kept saying, 'I wish I had a list of what was in that wallet.'"
If your home becomes damaged by flood or fire, get out your camera and take photos of your possessions in case you ever need to show your insurance company what used to be there.
Keep copies of important financial documents in a safe or safety deposit box.
If your financial institution participates in shared branching, keep a list of your shared branch locations on hand. After Hurricane Katrina, displaced credit union members' ability to access their money at shared branches in neighboring states was an unexpected but very welcome benefit.

None of us like to think about the possibility of being the victim of an unfortunate and unexpected event, but a little advanced preparation will pay dividends should disaster strike.

Read our previous post on preparedness, which includes tips from The American Red Cross on key steps to being prepared for any disaster:

National Preparedness Month: Would you be ready if disaster struck?

2011-09-10T09:26:00.000-05:00

A recent national survey found that only 7 percent of Americans have taken the recommended actions to prepare for disasters, according to the Grant Wood Area Chapter of the American Red Cross in Cedar Rapids.

"I think people don't want to think that something bad can happen. You never think it's going to happen to you," says Tina Coleman, regional response director for the local chapter. "But the more prepared you are, the less panicked you will be if something does happen."

If you've failed to plan, consider using this month – National Preparedness Month – as a reason to get ready for the unexpected. The American Red Cross says there are three key steps to being prepared for any disaster:

Get a kit. Have at least three days of supplies in an easy-to-carry evacuation kit and have a separate two-week supply on hand in case you're stranded in your home. Here’s a list of supplies to include in your kit. Don't forget to plan for every member of your household (think diapers for your baby and food for your dog).
Make a plan. Meet with your family members, and discuss how to prepare and respond to emergencies. Here's how to get started.
Be informed. Learn what disasters or emergencies might occur where you live. And buy a weather radio to help stay informed.

Watch for our next post to learn how to be financially prepared for a disaster--an equally important part of being prepared for the unexpected.

Tune up your car to help avoid tapping out your wallet

2011-09-07T10:44:00.000-05:00

By Emily Kittle

With cars built more reliably than in the past, routine maintenance isn't always at the forefront of our minds – until a problem arises. But vehicles still need the occasional checkup.

"I always tell everybody that it's cheap insurance to have a qualified mechanic look over your vehicle to catch small problems early before they become more involved, expensive problems," says Bruce McCann, owner of McCann's Service Inc. in Dubuque.

Here are three ways to tune up your car to help avoid tapping out your wallet:

No. 1: Get an oil change every 3,000 to 5,000 miles. Even though some manufacturers suggest going as long as 7,500 miles between changes, McCann says that's too long for vehicles dealing with Dubuque's hilly roads and climate changes.

Cost: "You're looking at $25 to $30 for an oil change versus $3,000 and up for an engine change if you end up with engine damage from not changing your oil," he says.

No. 2: Replace your engine's antifreeze and flush the cooling system every 50,000 miles. "Cooling systems get neglected so much," McCann says. "We get a lot in our shop that are really nasty just from neglect, with rust and corrosion in the system."

Cost: Depending on the vehicle, it costs between $80 and $120 to replace your engine's antifreeze and flush the system. When the cooling system hasn't been serviced, repairing a damaged water pump and radiator can cost anywhere from a couple hundred dollars to $600.

No. 3: Change your transmission fluid every 30,000 to 50,000 miles to keep your transmission happy.

Cost: It costs $120 to $150 to change the transmission fluid and filter. Skipping this can eventually require a new transmission, which can cost you anywhere from $1,500 to $4,000.

Frugal alternatives to household products

2011-08-30T14:57:00.000-05:00

There are some things frugal people refuse to buy.

Paper towels. Coffee from the coffee shop. Full-price clothes.

Syndicated columnist Sara Noel, whose Frugal Living column appears weekly in Dubuque's Telegraph Herald, recently shared a list of seven things her frugal readers no longer add to the shopping cart. They've discovered cheaper alternatives.

Here are two products you can make at home, rather than paying full price at the store:

Cleaning products. Many cleaners can be replaced with vinegar and baking soda. Replace glass cleaner with vinegar and water. And swap store-bought scrubbing cleaners with this:

2 cups baking soda
1/2 cup liquid Castile soap
3 teaspoons vegetable glycerin
A few drops of essential oil if using unscented Castile soap

Mix together, and store in a sealed glass jar. When cleaning areas such as a bathtub, spray the area with vinegar to loosen dirt, apply your natural cleaner, use a loofah sponge to scrub and rinse with water. You can even grow loofah sponges in your backyard garden. Seeds can be bought cheap on eBay.

Baby wipes. Make them by cutting a roll of heavy-duty paper towels in half and adding 2 cups of water, 2 tablespoons of baby oil and baby wash. Or make your own from Sherpa fleece or bamboo velour on one side and cotton knit or flannel on the other. Cut them to approximately 8-inch-by-8-inch square and serge together. The same concept can be used to make household cleaning wipes.

How do you practice frugality?

Consumer checklist for buying a foreclosed home

2011-08-26T08:30:00.000-05:00

By Emily Kittle

Buying a foreclosed home can be a good investment. But it also can turn into a money pit.

Before making an offer on a foreclosed property, it's important that the buyer knows what to expect.

Ryan Anglese, a Realtor with Ruhl and Ruhl Realtors in Dubuque, and Jeann Digman, vice president of mortgage lending at Dupaco, offer this advice:

Know yourself. Are you willing to commit the time, money and effort to get the home into a livable condition?
Be patient. When buying a traditional owner-occupied home, it typically takes 30 to 45 days to close. But it can take anywhere from two to eight months to close on a foreclosed property because of all of the extra paperwork and time involved with obtaining a clear title.
Pay less. Usually, you will pay less for a foreclosed home. Nationally, foreclosed properties are sold for 78 percent of the market value.
Buyer beware. The lender that owns the property has never lived there, so the true condition of the house can be tough to gage. You don't know ahead of time, for instance, whether the basement leaks every time it rains.
Get professional assessments. Foreclosed properties are usually sold "as is." When you walk through the home, bring somebody with you who can offer a professional opinion regarding what it might take to make the house livable. Pay for a home inspection, and also consider radon and termite inspections.
Communicate with your lender. Have a clear communication channel with your lender, and make them aware of the condition of the property so everyone is on the same page.

Crowded closet? Consider consigning

2011-08-22T10:08:00.000-05:00

By Emily Kittle

If you're a parent, you know all too well how quickly kids' clothes and toys can take over your home.

Rather than let outgrown baby sleepers and unused toys waste valuable real estate, consider the perks of consigning: You free up more space for the things you still use and make some money on the side – all while being environmentally conscious.

Jennifer Hanniford, Dupaco's assistant vice president of interactive marketing, recently started consigning her kids' clothing.

"At first I was hesitant to consign, because I thought I could make more by hosting my own garage sale," she says. "But hosting a garage sale of your own requires a big investment of time, energy and space, none of which I have with three kids under 6."

Even with collecting only 40 percent of the item's final cost (the consignment store keeps the rest), Hanniford believes she makes as much money as she would at a garage sale.

Want to try consigning? Consider these tips from Hanniford and Roberta Cunningham, owner of the Dubuque consignment stores Little Folks Trading Post and The Hanger:

Carefully compare the consigner agreements. Compare the percentages the seller takes home versus the store, whether you have the option to pull your merchandise and if there is a cost to doing so, if they host sales that would further cut into your potential profits, and when they mark your items down.
Shop at the consignment store you're considering using to find out how it's run and what types of items they accept.
Start small – maybe with one tote of items – to see what you think of the experience.
Before consigning equipment like cribs, swings and strollers, find out whether it's been recalled. Consignment stores often will do their own homework and not accept recalled products.
Consignment stores usually want newer, gently used clothing. The staff will inspect clothes for tears and spots. If you're not sure if your clothes pass the test, bring them in to find out.
Consignment stores price items at about a third of their retail cost. But if you bring in a nice item that's in higher demand – newer name-brand clothes, for instance – talk to the store manager to find out whether it can be priced a little higher.

Making a will: Taking the mystery out of the process

2011-08-16T06:00:00.001-05:00

By Emily Kittle

Writing a will is a lot like going to the dentist. You know you should do it, but it's not exactly pleasant.

If you're among the many adults who have avoided putting your final wishes on paper, Dale Repass has some advice: Stop procrastinating.

"It provides peace of mind by having gone through the process and having something in place," says Repass, chief executive officer of First Community Trust, a Dubuque-based investment management company.

Here are six things to expect when writing a will:

Usually, it's not just the will that gets drafted. There are related documents of equal importance that your attorney will provide. A durable power of attorney, for instance, delegates the power to handle your financial affairs should you become disabled or incapacitated. A health care power of attorney names a trusted relative to make health care decisions for you should you become unable to do so.
You can name an executor, someone you desire to carry out your will. It’s a good idea to name an alternate executor in case your first choice is unable to serve.
You can name the guardian of your minor children. You also can create trusts underneath your will to both manage and distribute money for your minor children.
A will allows you to designate gifts to your favorite charities.
Preparing a will is relatively inexpensive and well worth your money. Good estate planning can result in a will that saves thousands of dollars in federal estate taxes.
It's not a lengthy process. There are usually a handful of decisions to make, and you can easily make changes to your will if your circumstances change (marriage, divorce, birth). It's a good idea to review your will every two to three years.

Dying without a will

What happens if you don't have a will? Everything – from who receives your possessions to guardianship of your children – will be decided for you.

"If you don't have a will, the state of Iowa has one for you, and it will delineate exactly who gets what," Repass says.

Repass remembers a case where a young mother was killed in an automobile accident. She didn't have a will. And it was up to a judge to decide which grandparents would raise the deceased woman's 2-year-old son.

"It may not have been what the lady wanted," Repass says. "But she didn't have a will."

Making a will: What are we waiting for?

2011-08-12T15:06:00.000-05:00

By Emily Kittle

One of my high school classmates and her husband were killed in a vehicle-motorcycle collision last week.

They leave behind two little girls, too young to grow up without mom and dad.

***

It's the kind of thing that makes you think about life.
And death.
And the things you keep meaning to do, but haven't.

I'll confess: I haven't written a will. Like my classmate, I have two young children. I really have no excuse for not putting something in writing that spells out who would take care of our children if something happened to my husband and me.

I'm not alone.

An AARP survey found that two out of five Americans older than 45 don't have a will. Dale Repass, chief executive officer of First Community Trust in Dubuque, believes that's a conservative estimate.

"I think it's a lot more common than you think," he says of not having a will. "But there are so many reasons for people to have wills that I personally believe, in most situations, it's a very good idea and it will help clarify their thoughts after they're gone."

For some, it's the fear of facing death that keeps them away from this important task. Others don't think they have enough assets to make it worth their while.

"Young people can end up with more assets than they think they have, and if you have minor children it's very important to have a will," Repass says.

Feeling intimidated about writing a will? Our next post will offer guidance on getting started and outline the what-ifs of life – and death – without a will.

Lower the bill on your family’s next meal out

2011-08-08T10:53:00.000-05:00

Taking your family out to eat can be fun – and costly.

If you plan ahead, though, you can score some deals. Plenty of local restaurants feature kids' nights, making your youngster's meal free, or discounted, with the purchase of one for yourself. Call ahead to your favorite restaurants and find out whether there's a certain day of the week to plan your next family night out.

Here's a look at some Dubuque and Cedar Rapids eating establishments that offer discount days for the kiddos:

Dubuque restaurants:

IHOP: Kids eat free on Thursdays. And, during August, kids eat free every day from 4 p.m. to 10 p.m.
Los Aztecas: Kids' meals are free on Sundays.
The Ground Round: Kids eat free on Tuesdays with the purchase of an adult entrée.

Cedar Rapids restaurants:

Applebee's: Kids dine for 99 cents on Wednesdays with the purchase of an adult entrée.
Carlos O'Kelly’s: Kids’ meals are 99 cents and $1.99, depending on the menu item, on Tuesdays with the purchase of an adult entrée.
IHOP: Youngsters eat free on Mondays with the purchase of an adult entrée and a kid's drink. During August, kids eat free every day from 4 p.m. to 10 p.m. One adult entrée must be purchased for each free kid's meal.
Perkins: Kids eat free on Tuesdays from 4 p.m. to 10 p.m. with the purchase of an adult entrée.

Back to school means back to savings

2011-08-04T12:11:00.002-05:00

Tri-state shoppers: Take your tax break this weekend, with the return of Iowa’s sales tax holiday.

For the 12th year, Iowa will suspend sales tax on certain merchandise items as consumers start their back-to-school shopping.

Iowa’s sales tax holiday is slated for Friday-Saturday, Aug. 5-6.

Iowa rules dictate that clothing and footwear with a sales price of less than $100 per item are exempt. The state’s definition of “clothing” does not include watches, jewelry or sporting equipment. For a complete list of taxable and exempt items, click here.

Illinois, which launched its first statewide tax holiday last year, is not repeating the event this year. But here’s a list of other states that offer sales tax holidays.

Tips for residents fighting floodwaters

2011-08-01T09:40:00.000-05:00

Last week's violent storms were a reminder of what Mother Nature is capable of.

"Until somebody sees this can actually happen, they don't always realize it can," says Mark Kremer, an agent with Dupaco Insurance Services. "I've had customers say they've been in their house 40 years and have never had water in their basement like this."

If your home took on water, here's a look at the steps you should take, and some tips to help protect your home against flooding in the future.

Flood patrol

If your basement was flooded, get the water and any wet possessions out of there as fast as possible. "Once stuff is wet, it can start to mold and mildew very quickly, especially this time of year," Kremer says. "Mold is a bad word to insurance companies." Take proper safety precautions: Kill power to the basement before entering the water, and be careful with exposure to the water, which could contain any number of unknown substances.
Call your insurance agent. Find out whether your insurance company will cover any of the damage. "Worst case scenario is they're going to tell you that you don't have any kind of coverage, but let them be the one to tell you that," Kremer says.
Take pictures – both before you start removing water and during the cleanup process to document the damage for your insurance provider.
Save any receipts related to the damage: fan purchases or rentals, a new sump pump, you name it. Your insurance provider might reimburse you for some of those purchases.

Preventative maintenance

While memories of the surreal rainfall are fresh, review your homeowner's policy. If you have a sump pump or floor drains in your basement, consider adding water-sewer backup coverage to your policy. It will cover those times when your sump pump fails to do its job, when a power outage prevents your sump pump from running or when water or sewage enters your home through your floor drains. But remember: No homeowner's policy covers floods.
A couple of times each year – in the spring and fall – make sure your gutters and downspouts are free of debris and secured appropriately.
Periodically check to make sure your sump pump is working by testing it with a bucket of water. Ideally, the sump pump should be on its own circuit and not run through an extension cord.
Keep landscaping sloped away from the house.
Keep possessions in your basement elevated and away from areas known to take on moisture.

How to save on your next vacation

2011-07-29T10:54:00.000-05:00

Want to live longer?

Take a vacation.

The long-running Framingham Heart Study found that women who rarely took vacations were more likely to have a heart attack than those who vacationed at least twice a year, according to the Home & Family Finance Resource Center.

In another study, middle-aged men at increased risk for heart disease had a reduced risk of death associated with the frequency of annual vacations.

If you're looking to get away and save money at the same time, there are bargains to be had. AARP has compiled a list of 11 ways to cut expenses while traveling. Here are some of the ways you can save:

Wait for a weekday. Avoid buying airline tickets on a weekend — prices are often highest then. The best day is usually Tuesday, because many sales are launched Monday night and competitors typically scramble to match them by the next morning.

Stand — and save. Many cafés and restaurants in Europe give you a choice of sitting at a table or standing at a counter. The food's the same, but you'll pay double for chairs and waiter service.

Take photos. Avoid rental car damage charges by documenting your vehicle's condition before and after you drive it, just in case the rental company blames you for somebody else's dent.

Just say no. Save by not picking up your rental at the airport, where special fees might add on as much as 10 percent. Go into town by shared shuttle or public transit.

How do you save money on trips? Tell us here!

Banks, credit unions unite to help unbanked Dubuque residents save

2011-07-25T08:46:00.000-05:00

A new coalition of banks, credit unions and community groups have organized to improve the financial futures of Dubuque residents who lack traditional checking accounts.

The initiative, called "Bank On Dubuque" (Bank On DBQ), offers low- and moderate-income residents free or low-cost checking accounts and access to free financial education.

A bank or credit union account can help residents avoid costly alternative financial services. This enables families to protect and build their assets.

The "Bank On DBQ" accounts require no minimum balance and offer a second chance for people who have had previous trouble with banking. Fraud is the exception. Account features include:

No or low opening deposits, monthly maintenance fees or minimum balances;
Direct deposit of paychecks or monthly benefit checks;
Free ATM/debit cards; and
Access to online banking, bill pay and money transfers.

Participants of "Bank On DBQ" also have access to financial education, including learning how to budget, paying bills on time, or saving for a car or their first home.

Formed in 2010, "Bank On DBQ" is based on a national model called the "Bank On Cities Campaign," sponsored by the National League of Cities. The program grew out of an earlier technical assistance project that helped municipal officials build a comprehensive asset-building agenda.

"Bank On DBQ" is the first such program in Iowa. Eight participating financial institutions are directly funding the effort, with in-kind operational support from the Community Foundation of Greater Dubuque.

The National League of Cities estimates approximately 28 million unbanked and 44 million underbanked Americans lose $11 billion each year to check cashers, payday loan outlets and pawnshops.

According to a Federal Deposit Insurance Corp. report, the state of Iowa has 4.7% unbanked and 16.8% underbanked households. The U.S. Census counted 22,560 households in the city of Dubuque. This suggests about 1,000 unbanked households and 4,000 underbanked households in Dubuque.

The program's initial 12-month goal is to open 500 new "Bank On DBQ" accounts, with 80% still open at the end of that period. Organizers hope that at least 20% of new "Bank On DBQ" clients participate in the financial education and training.

The Iowa State University Extension facilitates the financial literacy training, mainly through classroom instruction.

"An increasing number of people in our community cannot or are unable to save money and build wealth," said Nancy Van Milligen, executive director of the Community Foundation of Greater Dubuque. "Bank On Dubuque will immediately put more money in peoples’ pockets, and teach them a sustainable way to manage money for the future."

"I give enormous praise to the eight banks and credit unions who have demonstrated an extraordinary spirit of collaboration in making Bank on Dubuque happen," she added.

"Social equity is an integral part of our community's approach to sustainability and the Bank On Dubuque initiative is great tool to build that equity," said Dubuque Mayor Roy. D. Buol. "I applaud the partnership that is making this initiative possible and encourage Dubuque residents to take advantage of this opportunity to improve their financial well-being."

Potential clients can join "Bank On DBQ" by visiting any participating financial institution branch, accessing the website at www.bankondbq.org or by phoning 2-1-1 (in the Dubuque calling area), a hotline staffed by Project Concern.

FINANCIAL INSTITUTION PARTNERS:

Alliant Credit Union
American Trust & Savings Bank
Dubuque Bank & Trust
Dupaco Community Credit Union
DuTrac Community Credit Union
Health Services Credit Union
Liberty Bank
Premier Bank

COMMUNITY ORGANIZATION PARTNERS:

Catholic Charities
City of Dubuque
Community Foundation of Greater Dubuque (facilitator)
Consumer Credit Counseling Service
Crescent Community Health Center
Dubuque Rescue Mission
Four Mounds Foundation
Hillcrest Family Services
Homeless Advisory Council
Iowa State University Extension (education classes)
Multicultural Family Center
Opening Doors (Maria House/Teresa Shelter)
Operation New View
Project Concern
Project HOPE

Beat the heat with these energy-saving tips

2011-07-20T09:22:00.000-05:00

With temperatures soaring into the 90s this week, our air conditioners are working overtime. And all of that heat is hitting energy bills hard.

"A lot of times we focus on keeping the warm air out and the cold air in," says Alliant Energy spokesman Scott Drzycimski. "But we don't always remember there are appliances in our home that are adding to the heat, and avoiding the use of those will help lower your energy bill."
Drzycimski offers seven ways to cut your cooling costs during these dog days of summer:

Raise the temperature on your thermostat a couple of degrees. Every degree above 78 will save you 4-6 percent on your energy usage. Keep it manageable, though.
Use those ceiling and box fans – but only when you’re in the room. A fan can help you feel up to 10 degrees cooler because of the wind chill it creates. But a fan doesn’t cool a room, so turn them off when you’re not there to avoid wasting energy.
Use your window shades to block the warm sunlight from your home.
Incandescent lights produce heat when they're on, so use lighting as little as possible.
Avoid using appliances until late at night, when it's (slightly) cooler. And keep your refrigerator closed as much as possible. The appliance kicks off heat whenever it has to cool back down.
Wash your clothes in cold water and then air-dry them.
Find out whether your service provider offers Budget Billing, or something similar. Alliant Energy's program allows you to pay the same amount each month, spreading the cooling and heating costs over the entire year. "It makes the monthly budget that much easier, and it also takes the hills and valleys out of your monthly bills," Drzycimski says. There are mechanisms in place that will adjust if you overpaid or underpaid at the end of the year. Alliant customers can sign up online or by calling 1-800-ALLIANT.

What's in a number?

2011-07-18T10:27:00.000-05:00

Do you know your credit score?

That one number tells lenders and others plenty about you – and can determine whether you're eligible for a home loan, credit card or other services.

Cindy Hilkin, a loan consultant at Dupaco Community Credit Union, recommends pulling and reviewing your credit report every six months to help fight identity theft and check for errors and other hidden surprises.

"Most people don't find out about something until they go to apply for a loan, and then it's very difficult and time consuming to fix," she says.

You can obtain a free credit report through your financial institution or by visiting www.annualcreditreport.com, which allows you to request a free credit report once every 12 months from each of the three credit reporting bureaus.

Research shows about one in four credit reports contains an error, which can cause you to pay higher interest rates or even be denied a loan. You can dispute and correct your reports through the credit reporting bureaus.

What determines your credit score? While it's based on a complex formula, here are the basics:

Credit scores typically range from the 300s to the 800s. Try to stay above the average 650 score.
The No. 1 thing that will hurt your credit score is missing a payment. It doesn't matter whether it's a $20 credit card bill or a $1,000 mortgage payment. They'll both hurt your score equally – and can negatively affect it for as long as 24 months. The other main way to hurt your score is by maxing out your credit cards.
To improve your score, pay down those credit cards, make your payments on time and avoid opening several credit cards.
Consumers often are under a misconception about what affects their score. "They always think their checking account or their income or how long they've been at a job affects their score, but the credit bureau has no idea about any of these factors," Hilkin says.

You can be an expert couponer, too

2011-07-11T15:19:00.000-05:00

By Emily Kittle

Mary Kenyon is proof positive that coupons can add up.

The Manchester, Iowa, mom of eight is an expert couponer, who has spent the better part of her 51 years saving money at the checkout line. Kenyon, a Dupaco member, is even writing a book about the history and culture of couponing.

If you're new to the practice, Kenyon has some tips to keep the savings coming:

How much time do you want to put into it? You can get really obsessed with couponing or put in a little time and save a little money. The average couponer saves about $7 per week.
Find a way to organize your coupons so they get used. A coupon wallet from a dollar store is a good way to get started.
Look for coupons everywhere. In stores: Find them on product boxes, tear pads on shelves and at blinking machines. Friends: Ask friends and family to save unused newspaper inserts, and offer to share your extra stockpile with them in return. Magazines: All You, sold at Walmart, is full of coupons. Online: Visit the coupon clipping site http://www.thecouponclippers.com/ on Saturdays to see the following day's coupons. You'll typically pay a 3- to 8-cent handling fee for each coupon to be clipped and mailed to you.
Watch the sales to use your coupons at the most opportune time. Check out http://hip2save.com/ to learn about new sales.
Practice coupon etiquette. Just because you have the coupons doesn't mean you should empty the shelf. Be a “coupon fairy,” and leave unneeded coupons on the shelf beside the product for the next shopper.

Meet Manchester's couponing queen

2011-07-08T10:41:00.003-05:00

By Emily Kittle

Though nowhere near as obsessed, Northeast Iowa has its own extreme couponer.

Mary Kenyon, a Manchester, Iowa, mom of eight, once auditioned for TLC's hit show "Extreme Couponing," but it turned out she wasn’t extreme enough.

"They wanted and have people with entire rooms full of stuff they got for free," says Kenyon, a Dupaco Community Credit Union member. "In the show, they have people throwing a hundred deodorants in their cart for free."

So she didn’t make the cut. But Kenyon has long been passionate about saving money.

She started using coupons in 1979 as a newlywed college student trying to save pennies where she could. Kenyon says those were the "good old days," when it was much easier to find stores in Iowa that offered double coupons, matching the face value of the manufacturer coupon.

There was a time when Kenyon and her husband would each head into Dubuque's Kmart with 75 coupons in hand (the double coupon limit at that time). They would leave with more than $200 worth of merchandise, having spent only $5 or $10.

"I can see why they didn't continue that practice," she says.

When she had better access to double couponing, Kenyon typically shaved 30 to 40 percent off her grocery bills. Today, the 51-year-old woman's coupon use nets her about 10 to 20 percent in grocery savings.

She fares better on health and beauty supplies. She never pays for toothbrushes, toothpaste or deodorant, thanks to coupons, diligent monitoring of store sales and register rewards.

Kenyon, who never travels without her coupon box, estimates that she spends a couple of hours each week studying store sales, ordering coupons from online sites and clipping coupons.

"All of my children have grown up knowing there are certain things that I'm not going to buy unless I have a coupon. I won't buy cereal without a coupon. And we usually don't buy candy bars, but every year, usually in the fall, Hershey's will put out a coupon for buy one get one free. That coupon is something the kids look forward to," she says, laughing. "It's been part of my life and part of their life, too."

Kenyon stores items in bulk in her kitchen, a hallway cabinet, her attic stairs and, most recently, on her back porch. When the cupboards are stuffed, she thins her collection through food pantry donations, an annual garage sale and gift baskets for her adult children.

She also shares her extra coupons while shopping. She sometimes leaves them on a shelf next to the product or offers some to the shopper behind her at the checkout. For Kenyon, the art and etiquette of couponing is second nature.

"I will probably always use coupons just because it's so much a part of my life," she says.

Kenyon is putting her 30-plus years of couponing knowledge into a book, which will detail the history and culture of the practice. Stay tuned for our next post, which will feature Kenyon's tips for couponing newbies.

Recession-proof jobs in Cedar Rapids

2011-06-30T09:43:00.003-05:00

By Emily Kittle

In the market for a new job?

Some industries weather economic storms better than others.
A recent CNNMoney analysis of the more than 140 sectors tracked in the Labor Department's survey of employers found 15 that grew fairly steadily from the start of the Great Recession until today.

There's opportunity on the local front, if you know where to look. Kari Lammer, director of workforce initiatives at Priority One, the economic development arm of the Cedar Rapids Area Chamber of Commerce, says these five industries have either continued to add jobs or are quickly gaining momentum:

The health care industry has continued to add jobs.
Cedar Rapids has a large customer service industry cluster, and those employers are still adding positions and looking for qualified candidates to fill their openings.
Following a national trend, education positions are expected to become in high demand locally.
Positions will need to be filled in government-related jobs, as a result of an aging workforce and projected retirements.
The economy is recovering quickly. And while certain jobs are more recession-proof, Cedar Rapids will see more jobs added in high technology fields during the next year.

So, how do you remain recession-proof?

"It all relates to the skill set of the individual," Lammer says. "Getting additional training and upgrading your skills are going to be the two most important assets of a recession-proof job seeker."

Our biggest money wasters

2011-06-22T14:38:00.002-05:00

By Emily Kittle

Most of us have bought something that we’ve never even used. Or we splurge on gourmet coffee from time to time.

These purchases might seem little at the time, but they can add up. CNNMoney compiled a list of the 10 biggest money wasters. Here are some of them:

Lottery tickets: Consumers bought more than $70 billion worth of lottery tickets last year, according to the North American Association of State and Provincial Lotteries. About $38 billion was awarded in prizes.

Infomercial impulse buys: Many consumers have been lured into what they thought was a great deal. The infomercial industry brings in about $400 billion a year, according to the Electronic Retailing Association. However, many impulse purchases go unused.

Brand-name groceries: Prices of generic items are typically 5 percent to 10 percent lower than their brand-name counterparts. Even if there are only generic options available for some of the items you buy, you could save at least $50 to $75 a month if you’re spending $500 to $600 a month on groceries for your family.

Bundled services: Consumers are often lured into bundled cable, Internet or phone packages because of the reduced rates offered initially. But paying for channels that you’re not watching, or unlimited text messages or airtime that you’re not using is a waste of money.

Find out where your money is going with Dupaco Community Credit Union's budget calculators. Calculate your monthly expenses and find out what it’s worth to reduce your spending.

Let’s make a deal: Car shopping 101

2011-06-14T11:33:00.003-05:00

By Emily Kittle

You’ve found your next vehicle, but are you ready to talk numbers with the dealer? Before you make an offer, do your homework so you’re prepared to walk out with a fair price. Bob Nicks, indirect senior lending consultant at Dupaco Community Credit Union, offers these tips to give you an edge on negotiation day:

Edmunds (http://www.edmunds.com/) offers a wealth of free information for new-vehicle shoppers. Find out what the dealer paid for the vehicle, the manufacturer’s suggested retail price, what rebates are available and more.
If you’re trading your current vehicle, go to NADA (http://www.nadaguides.com/) or Kelley Blue Book (http://www.kbb.com/) to learn what it’s worth. Used vehicles are in short supply, so they’re worth more these days.
Consider selling your current vehicle yourself if you think you can get more. But be aware that you won’t get a sales tax break on it.
Shop around for rates before you deal. And know your credit score. The higher your score, the lower your rate will be.
Some vehicles come with zero-percent financing. Calculate whether the zero-percent financing or the rebates is the better deal. Zero-percent financing isn’t always better, especially if you won’t keep your vehicle for long.
If you don’t plan to own your vehicle beyond the manufacturer warranty, think twice about extended warranties.
If you’re buying a used vehicle, get a vehicle history report from a site like CARFAX (http://carfax.com/). You’ll find out, for instance, how long the vehicle has been sitting on the dealer’s lot. If it’s been there awhile, ask why.
Consider negotiating the price of your vehicle online through the dealer’s website, rather than in person. You can sometimes get a better price that way. Plus, it can be less intimidating.

How fraudsters tried to scam you in 2010

2011-06-01T11:40:00.003-05:00

By Emily Kittle

Job hunters and those struggling to escape debt were the targets of several scams last year – a sign of today’s economic times, says the Better Business Bureau.

“If it’s too good to be true, it is,” cautions Dubuque Police Lt. Scott Baxter, a crime prevention officer. “Never pay money up front.”

The BBB has compiled a list of the top 10 scams of 2010. Here are five of them:

Job hunter scams: These include attempts to gain access to personal information such as bank account or social security numbers and requirements to pay a fee to be considered for the job.

Debt relief and settlement services: These companies often require upfront fees and potentially leave the consumer drowning in even more debt. Complaints to the BBB about these services increased by about 30 percent in 2010.

Work from home schemes: Some victims found that their opportunity to work from home was a job to fence stolen goods.

Timeshare resellers: Timeshare owners desperate to get rid of their costly property are targeted by companies that claim they have an eager buyer. The company tells the seller they just have to pay up to several thousand dollars to cover fees. The seller never hears from the company again.

Not so “free” trial offers: Misleading free trial offers for diet supplements, penny auctions and money making schemes blanket the Internet. Complainants state they were repeatedly billed every month and found it extremely difficult to cancel.

For a complete list of the scams, click here.

Six local trips on a dime for your summer calendar

2011-05-24T17:08:00.003-05:00

By Emily Kittle

Want to get away this summer without breaking the bank? You don’t have to travel far to have a good time. Look to your own backyard for some inexpensive yet enjoyable travel adventures:

* Experience the Alpine Slide at Chestnut Mountain Resort in Galena, Ill. The sled carries you down 2,050 feet of track, and a lift returns you to the top. Ticket prices vary.

* The Cedar Rapids Museum of Art features everything from photographs to ceramics to the world’s largest collection of works by Grant Wood. Admission is $5 or less.

* Walk through the country’s largest all-volunteer arboretum: Dubuque Arboretum & Botanical Gardens. You’ll see a Formal English Garden, Japanese Garden, a waterfall and more. Admission is free.

* Play a pickup game at one of the most recognizable baseball locations: the Field of Dreams Movie Site in Dyersville, Iowa. Admission is free.

* Hike on trails or have a picnic at the Mines of Spain south of Dubuque. The recreation area is located on 1,380 acres of wooded and prairie land. Admission is free.

* The National Farm Toy Museum in Dyersville, Iowa, features thousands of toys and exhibits, including tractors, farm scenes and a play area for kids. Admission is $5 or less.

For more ideas, visit the Cedar Rapids Area Convention & Visitors Bureau and the Dubuque Convention & Visitors Bureau.

What are your favorite nearby activities to do on the cheap?

Knowing when to call customer service

2011-05-18T16:55:00.002-05:00

By Emily Kittle

Maybe you got the raw end of the deal with a household purchase. Or you’re less than thrilled with a recent customer service experience.

Before you call the company complaining, consumer advocate Ron Burley says there are four questions you should ask yourself. If you can answer yes to all of them, you’ll have a better chance coming out ahead in a product or service dispute, according to his recent On Your Side column for AARP The Magazine.

Here is Burley’s four-point checklist:

1. Have I been significantly harmed? If you’re upset over a matter of principle or could hold your total financial loss in spare change, forget about dialing customer service. Write a letter to the editor instead.

2. Do I have a case? No matter how obvious the issue might seem, convincing a corporation to spend its time and money to help you out involves building a case that proves your point.

3. Do I have leverage? Most companies will do something only if it is to their financial advantage. The best leverage would be something you could do, or promise to do, that would make it more expensive for the company to ignore you than to take care of you.

4. Is there an acceptable solution? What do you want? The answer has to be specific and monetary. “I want a full refund” or “Please replace the product” are acceptable statements. “I want a letter of apology” won’t get you anywhere.

Should you refinance your mortgage?

2011-05-13T14:44:00.001-05:00

By Emily Kittle

If you thought you missed your window of opportunity to refinance last year when the rates were at historic lows, think again.

This week, the average for the 30-year fixed-rate mortgage is 4.63 percent, while the average for the 15-year fixed-rate loan is 3.82 percent, according to Freddie Mac’s Weekly Primary Market Mortgage Survey. Those rates are even lower locally.

“I don’t know if a lot of people still realize the rates are that low,” says Jeann Digman, Dupaco’s vice president of mortgage lending. “They’ve been slowly declining over the last six months. Some people who missed the boat last year still have a chance to refinance at a low rate.”

Are you on the fence about refinancing? Digman offers this advice:

Think twice if you’re moving. Refinancing comes with closing fees. If you’re not planning to stay in your home for more than four to five years, it might not be worth refinancing. It typically takes about that long to recoup those fees.

Do the math. Dupaco’s mortgage calculators can help you decide whether you’re better off refinancing and show you the costs associated with doing so.

Pay attention. Much like stock prices, mortgage rates can fluctuate throughout the day. Monitor the rates regularly.

Just ask. Each homeowner’s situation is unique. If you don’t know whether refinancing is appropriate for you, talk to your financial institution.

How to make your gas dollars stretch

2011-05-10T15:54:00.004-05:00

By Emily Kittle

While we can’t control the prices at the pump, we can reduce the amount of gas we use.

“It really comes down to driver behavior and auto maintenance,” says Gail Weinholzer, director of public affairs for AAA Minnesota/Iowa. “Those are really the most integral ways to positively affect your fuel efficiency.”

Here’s a primer on getting the most gas mileage out of your vehicle:

Drive sensibly. Aggressive driving can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town.

Obey the speed limit. Each 5 mph you drive over 60 mph is like paying an additional $0.24 per gallon for gas.

Clear the clutter. An extra 100 pounds in your vehicle can reduce your mpg by up to 2 percent.

Give your car a tune-up. It can improve your gas mileage by an average of 4 percent. Repairing a serious maintenance problem can improve your mileage by as much as 40 percent.

Keep tires properly inflated. You can improve your gas mileage by up to 3.3 percent. The proper tire pressure for your vehicle is usually found on a sticker in the driver’s side door jamb or the glove box and in your owner’s manual.

Plan ahead. Calculate the fuel cost of your trip with AAA’s Fuel Cost Calculator. If you own more than one vehicle, you can find out which one will offer the best fuel efficiency and how much you will save. Use AAA’s TripTik Travel Planner to map your trip and get prices at individual stations.

Sources: www.fueleconomy.gov and AAA

How to handle that grad cash

2011-05-09T09:20:00.002-05:00

By Emily Kittle

Perhaps the best gift parents can give their high school graduate is some timely financial advice.

Many in the class of 2011 are about to come into a bit of a windfall – thanks to friends and family who will be padding their graduation cards with all kinds of cash.

In the past five years, 62 percent of high school graduates who received money for graduation received up to $500 as part of their gifts, according to a National Endowment for Financial Education poll. Thirty-eight percent received more than $500.

Help your teen manage that money wisely by following these tips, provided by Tami Rechtenbach, director of member services at Dupaco and the mother of a Hempstead High School senior preparing to graduate:

Practice saving. Help your child determine how the money will be used. If some of it will go toward books or that first tuition bill, keep it liquid in a savings account. Otherwise, consider a one-year CD.

Communicate. Let your child know how much her college education will cost – and what her contribution will be. Help her determine how much she will need to save each week.

Exercise self-control. Teach your child to separate needs from wants. “An iPad might be really cool, but it won’t do that term paper for you,” Rechtenbach says.

Don’t always bail them out. “If you constantly give your kids money every time they need it, you’re doing them a disservice,” Rechtenbach says.

Start early. Even if your child isn’t graduating yet, start talking and estimate how much that college education will cost with the Home & Family Finance Resource Center’s college calculator.

Job market for college grads gaining momentum

2011-05-03T16:06:00.001-05:00

By Emily Kittle

A new online initiative is trying to attract a specific crowd: soon-to-be college grads.

Launched in September, MyTernNow aims to help college students everywhere “find employment in a place you’ll love to live”--eastern Iowa. The site is managed by Priority One, the economic development arm of the Cedar Rapids Area Chamber of Commerce.

“Because we’ve seen such a shift in the importance of that demographic for our employers, we launched a whole new initiative,” says Kari Lammer, director of workforce initiatives at Priority One. “It is where we see our future going.”

Priority One might be on to something. Nationally, employers say they will hire 19.3 percent more new college graduates this year than they did last year, according to a new survey conducted by the National Association of Colleges and Employers.

“This is the first time since 2007 that we’ve seen a double-digit increase in spring hiring projections,” Marilyn Mackes, NACE executive director, says in a press release.

Locally, Lammer says employers are turning to college grads to prepare them for leadership positions that will be vacated through retirements. MyTernNow posts everything from job and internship openings to links that give students a better picture of what it’s like to live in Iowa.

Once college grads land their first job, Priority One helps them get connected to their community through a spinoff initiative, MyLifeNow. Young professionals and college interns are invited to weekly events like bowling, volleyball and barbecues.

“We want them to have a great experience at the company but also help them find things to do in their community,” Lammer says.

Protect yourself from identity theft

2011-04-28T16:33:00.002-05:00

By Emily Kittle

Identity theft is one of those evolving crimes. As we learn to better guard our information, the criminals fight back with more elaborate schemes.

So, what’s your best weapon in the battle against fraud?

“Your brain and instincts,” says Dubuque Police Lt. Scott Baxter, a crime prevention officer. “Ask questions, make calls, ask for proof. Take your time, and don’t make a rash decision.”

From 2004 to 2010, Dubuque police received 225 complaints of identity theft, averaging 32 each year. Nationwide, Iowa ranks as the 47th highest per capita of such complaints.

“Every case is a little bit different, and it depends on the skill level of the criminal and the method they’re using that affects our ability to effectively investigate and prosecute these,” Baxter says.

Identity theft can occur from the most primitive method of looking over your shoulder at an ATM to the more advanced technology of hacking your computer--and everything in-between.

“The best advice would be to try to maintain a constant state of awareness,” Baxter says. “Always be suspicious.”

He offers six other tips:

* Use extreme caution when releasing information--especially if you didn’t initiate the inquiry.

* Shred or secure documents containing personal or financial information.

* Monitor bank statements, credit card bills and other bills--thoroughly--every time.

* Monitor your credit report history.

* Only make online purchases on verified, secured (https) and trusted websites.

* Check out the Federal Government's OnGuard Online and Microsoft’s Safety & Security Center, which can help secure your computer.

Financial infidelity common among couples

2011-04-26T16:00:00.003-05:00

By Emily Kittle

Ever lied to your partner about a purchase? If so, you’re not alone. Those little white lies can add up to a big problem for relationships.

Three in 10 Americans who have combined their finances with a partner admit to lying about money matters, according to a December survey commissioned by the National Endowment for Financial Education.
Here are some of the findings:

* 30 percent have hid a statement or a bill.
* 15 percent kept a secret bank account.
* 11 percent lied about how much money they earned.

If financial trust has been broken, there are some basic ways to mend the breach. Denny Grant, a licensed mental health counselor at Hillcrest Mental Health Center in Dubuque, offers these tips:

Be honest. It’s important to come clean--completely. Openness, communication and working together are critical.

Practice forgiveness. If your partner has been financially deceptive, agree to offer one free pass. “It’s so essential for the other person not to be prosecutor and throw it back in their face again and again,” Grant says.

Take a quiz. The NEFE’s LifeValues Quiz can help you identify how your money values are alike or different, and it sheds light on the areas that need work.

Set parameters. “In my marriage, we made a deal that if we were spending anything over $50 we’d get consent from the other person,” Grant says. “That ongoing agreement is based on mutual respect for one another.”

“Just because there’s a little financial deception does not mean the core of the relationship is unhealthy,” Grant says. “No relationship is perfect, and it can feel good to work through those issues.”

C.R. High School Joins Quest to Make Teens Financially Literate

2011-04-21T09:33:00.004-05:00

By Emily Kittle

A growing number of high school students lack an understanding of basic money matters. But at least one area high school is brainstorming new ways to teach teens the ABCs of personal finance.

Teachers at Cedar Rapids’ Thomas Jefferson High School recently wrote curriculum for a pilot course--Financial Literacy--which will be offered during the 2011-2012 school year. The year-long interactive course will address checking accounts, investments, credit scores, insurance, real estate and more.

Jim Womochil, a business teacher at Jefferson High School, says students need more guidance if they’re going to become financially literate, an important life skill.

“In talking to banks and credit unions around town, they are really frustrated with young people not managing their checking accounts,” Womochil said. “And young people are getting into trouble at a very, very early age, which harms their credit.”

A 2008 survey by the Jump$tart Coalition found that the financial literacy of high school students has fallen to its lowest level. Participants answered 48.3 percent of the questions correctly.

“There are still many important concepts that are not getting through to the next generation,” the coalition said of its findings.
Jefferson High School’s pilot course draws on topics covered in three existing electives--Personal Finance, Money Management and Entrepreneurship. For now, the new class also will be an elective. But that could soon change.

By July 1, 2012, high school teachers will be required to teach students financial literacy as part of the Iowa Core Curriculum signed into law in May 2008 (Des Moines Register). And similar bills are being introduced in Congress.

“We thought we’d get a head start by writing this course,” Womochil said. “High school curriculums are going this way. All high schools are going to have to supply some type of financial literacy for kids.”

Simple ways to save on your energy bills

2011-04-19T09:59:00.009-05:00

By Emily Kittle

As you prepare to conquer spring cleaning, be on the lookout for more than just clutter and dust.

It’s a great time to spot ways to save energy in your home--and, as a result, cut those utility bills.

Here are some resources to help you get started:

* Do a free online home energy audit. The audit, sponsored by the U.S. Department of Energy, shows you where your energy dollars are going and offers ways to save energy and money.

* Before adding new blooms to your yard, find out how the right plants--and placement of them--can reduce your cooling costs this summer. The U.S. Department of Energy offers a guide to energy-efficient landscaping. On average, the effort provides enough energy savings to return an initial investment in less than eight years.

* Use Alliant Energy’s calculators to find out how much you could save by upgrading to high-efficiency equipment in your home.

Want to start lowering your bills immediately? Alliant Energy recommends taking these easy measures:

* Weatherize doors and windows. A few inexpensive tubes of caulk and rolls of weather-stripping can help reduce cooling bills by 10 percent.

* Install a water-saving showerhead. A family of four can cut their water-heating costs by $250 a year by making the switch.

* Give your appliances a vacation, too. Before you leave on a trip, turn off and unplug everything you can, lower your thermostat to 55 degrees and set your water heater to the lowest setting.

Dubuque Woman Reaps the Rewards--and Freedom--of Saving

2011-04-14T16:57:00.005-05:00

At the Dupaco Community Credit Union Sycamore branch in Dubuque, Iowa, on April 11, Delora Beal prepares to drive home her newly-acquired car. Beal's purchase was made possible through her systematic savings of $1,900 into an Individual Development Account (IDA), 12-months of financial coaching and an auto loan--all through Dupaco Community Credit Union. The Iowa Credit Union Foundation provided a $1-for-$1 matching grant. (D. Klavitter/Dupaco photo)

By Emily Kittle

It's hard to imagine the freedom that a vehicle brings until you live without one for a long time.

Delora Beal knows that feeling first-hand.

After three years without a car, the 44-year-old Dubuque transplant is the proud owner of a white 2004 Dodge Intrepid. For Beal, who lives at the Manasseh House, a housing project for low- to medium-income women, the car represents an important step in getting her life back on track.

"It's pretty," she said excitedly of her new purchase.

Beal purchased the car through a savings program at Dupaco Community Credit Union.

In Dupaco's Individual Development Account (IDA) program, the savings of a participant are matched by a dollar-for-dollar grant from the Iowa Credit Union Foundation. Dupaco opens the savings account and provides financial coaching required by the program to help ensure the participant's goals are met.

On Monday--a year and two days after enrolling in the IDA program--Beal bought her car.

Saving $50 from every paycheck, she had accrued $1,900, with another $1,900 matched by the foundation.

"Delora took a serious effort into saving as much as she could to increase her match," said Dupaco's Cindy Hilkin, one of Beal’s financial coaches. "She attributes her success to systematic savings. She plans on continuing this type of saving for her auto insurance."

Hilkin helped Beal find a solid vehicle and get an auto loan through Dupaco.

Beal credits Dupaco's financial coaching for her success. She says the experience has taught her some valuable life lessons.

"I've learned that it's a lot easier to save than what you think. You can still live and save money," she said. "It makes you reevaluate your spending habits. It makes you think about the importance of what you really need in your life."

Beal moved to Dubuque with her son and a friend three years ago. They packed what they could into a tiny car--some clothes, important paperwork and a computer--and said goodbye to Arizona and steady employment.

Beal eventually found temporary work in Dubuque, but she took a cut in pay. Today, she works at Hartig Drug. Her employer recently had a new position become available, but it required travel.

Beal hopes her vehicle will make her eligible for a promotion at work. Until now, she has relied on her two feet and a beat-up bike destined for the landfill.

"It's been a hard road to get to where I am to have a car," she said.

Beal has arrived. Two days after buying her car, she was getting the paperwork together to get an Iowa driver's license and license plates for her new ride. Even though she has met her goal in Dupaco's savings program, Beal says she will continue saving what she can from each paycheck.

"I'm looking ahead into the future, and I'm just hoping that having a way to get around will help me better my life. Just knowing I have a car is a whole different sense of relief," she said. "For the first time in I don’t know how long, I'm just taking care of me."

Participants must meet income guidelines and be residents of or purchase assets in the state of Iowa to qualify for an IDA account. The savings and matching funds are then used by the individual to purchase a specific asset, such as a home, starting or expanding a small business, paying for education or job training, or purchasing a vehicle to get to work.

Dupaco has three other members enrolled in the IDA matching program and others on a waiting list once additional match funding becomes available. Credit union members interested in more information on an IDA may contact Dupaco's Member Services Department at service@dupaco.com or (563) 557-7600 / 800-373-7600, ext. 206.

Get fit without giving your wallet a workout

2011-04-12T10:53:00.001-05:00

By Emily Kittle

With warmer weather finally making an appearance, take advantage of the great outdoors and stay both physically and financially fit.

“Anything that gets people moving and gets the heart rate going is good for us,” says Jason Dwight, fitness supervisor at Mercy Fitness Center in Cedar Rapids, Iowa. “Walking and running are good, but we want to make sure we’re also stimulating other muscles in our body.”

Check out these creative, cost-effective outdoor workouts, provided by Dwight (consult with your physician first):

1. Obstacle course
All you need: Open field, stopwatch and workout station markers (old t-shirts work)
Set up an obstacle course using things from home to mark each station. Get creative on the field, and designate areas for bear crawls, sprints or shuffles. Once you reach each station, do push-ups, sit-ups or run in place for 10-20 seconds. "You get a lot of running, walking, changes of direction and using different muscles of the body," Dwight said.

2. Jump to it
All you need: Jump rope
Jumping rope is a low-cost workout that improves your strength and coordination. Make it interesting, and turn it into a competition: Who can jump the longest? Or, jump while running forward, then backward.

3. Pull yourself up
All you need: Play structure at a park or playground
Perfect your pull-ups on a play structure. It's a great strength training exercise. Plus, mastering your body weight allows you to graduate to other beneficial exercises.

Rising property taxes will fall on some eastern Iowans' shoulders

2011-04-08T07:00:00.000-05:00

By Emily Kittle

Many Dubuque County property owners could find their home values rising in the face of a formula-triggered reassessment.

By state law, median property sale prices must fall within 95 to 105 percent of their assessed value; median ratios, of late, have dropped below that range.

Dubuque County Assessor Dave Kubik says the reassessed values will vary – some could rise as high as 6 percent, others might decline in value. Most won't see big changes, though.

Want to see your new assessed value? Visit www.dubuqueassessor.org next week, when the figures will be posted. Increases will start accruing July 1 and will show up on bills in September 2012.

Here are some ways to tweak your budget, if your property tax bills go up. Tami Rechtenbach, director of member services at Dupaco Community Credit Union, offers two critical tips to keep you on track:

Set up a separate savings account; call it your "Property Tax Account." Then, calculate how much you need to save to pay your bill: take your bill and divide that number by 6 (if you pay it twice a year) or 12 (if you pay it annually). That amount should go into your account each month. Make your first deposit this month, and find out whether that money can automatically be taken out of your paycheck, so you forget it's there.
Revisit your budget to find out how much money you're spending elsewhere. Look closely at your income and all of your expenses. To get started, use Dupaco's budget worksheet or budget calculators.

How to feel better about your retirement

2011-04-05T07:00:00.000-05:00

By Emily Kittle

Will you be able to retire comfortably?

A growing number of Americans aren't so sure.

The 2011 Retirement Confidence Survey finds workers are more pessimistic about that prospect than at any time during the past two decades, according to the Employee Benefit Research Institute. And many people admit they aren't planning or saving for it.

Workers who say they are "not at all confident" about having enough money for retirement climbed to 27 percent in 2011, up from 22 percent one year ago.

"I think the survey points out that folks are feeling the disappointment and frustration of these tough times," said Ann Black, a spokeswoman for AARP Iowa.

Need to get on track with your retirement planning? Consider these tips from Black and the Home & Family Finance Resource Center:

Don't wait until the last minute to start planning. Get a retirement checkup with your financial advisor, and look at the whole picture: your 401(k), IRAs, monthly budget, debt and other factors.
The old rule of thumb is that your retirement income should be at least 70 percent of your current income. But that doesn’t work for everyone anymore. Traveling and entertaining, for instance, cost money.
Use AARP's free retirement calculator, 401(k) contributions calculator and other retirement tools to project how much money you’ll need.
Find out how much money you can expect from Social Security. Benefit calculators will estimate your future retirement, disability and survivors benefits.

Three ways to grow your net worth

2011-03-29T07:00:00.001-05:00

By Emily Kittle

It probably comes as little surprise in a challenging economy, but the typical American is feeling more financially squeezed.

The average U.S. family's household net worth declined 23 percent between 2007 and 2009, according to the Federal Reserve. (CNNMoney)

"Surveying the Aftermath of the Storm," a survey tracking the effects of the recession, shows the median net worth of households dropped from $125,000 to $96,000 over the period.

"Americans generally are doing what needs to be done. The big ones – the stock market and the value of our homes – we just can’t control," said Matt Dodds, Dupaco Community Credit Union senior vice president, consumer lending. "But there are still things we need to be doing with our balance sheets."

Dodds offers three ways to positively control your net worth:

Save more. It has to be automatic, systematic and happen without you thinking about it. Set up a separate savings account at your financial institution, over and above an employer 401(k). Direct a portion of each paycheck to automatically be deposited there.
Pay down your debt quicker. Talk to your financial institution to find out whether there are cheaper ways to service your debt. Minimizing your interest expense with better rates is one way to do that.
Learn from the past. "In the past, prior to 2007, any personal financial study would show you that people were relying on home values increasing exponentially as their only form of net worth," Dodds said. "What we've learned from this downturn is that it can only be part of the equation."

How to help others without falling victim yourself

2011-03-25T07:00:00.003-05:00

By Emily Kittle

It's hard to watch the suffering gripping Japan without feeling the urge to act, to give.

“We encourage everyone to respond to that urge they feel to help because that feeling will go away,” said M.J. Smith, director of affiliate foundations at the Community Foundation of Greater Dubuque.

But local philanthropy experts advise caution, or you could become another victim. Here are some donating do's and don'ts to get the most good out of your gift:

Don't give money to an organization that doesn’t clearly define how it spends your money, says Ron Spillane, executive director of United Way in Dubuque. Smith offers this rule of thumb: At least 85 to 90 cents of every dollar should go to direct care or direct rebuilding.

Don't respond to unsolicited e-mails requesting donations.

Do check with your local church to find out where their donations are being directed.

Do take advantage of the resources available from charity watchdogs like the Better Business Bureau Wise Giving Alliance, the American Institute of Philanthropy, Charity Navigator and GuideStar. (Credit Union National Association)

Do consider how you want your money to be used. Some organizations specialize in the immediate response, while others focus on rebuilding or other needs.

Do find out how the charities stack up. The American Institute of Philanthropy grades charities based on the portion of their budget going to program services and their fundraising efficiency. These organizations are among the watchdog's top-rated charities currently involved — or mobilized to provide assistance if needed — in the relief efforts in Japan: American Red Cross, CARE, Church World Service, Direct Relief International & Foundation and Habitat for Humanity International.

Ways to control your budget in a time of rising prices

2011-03-21T12:39:00.002-05:00

By Emily Kittle

Feeling the pinch at the pump? Paying more than usual at the grocery store checkout?

You're not alone.

In fact, the cost of living in the United States rose more than forecast in February. The consumer-price index climbed 0.5 percent, led by the highest food prices since 2008 and rising fuel costs, according to the latest figures from the Labor Department (Washington Post).

With bigger bills hammering household expenses, there are simple ways to help you in your battle against the budget bulge. Take control of your spending plan with these timely tips provided by the Home & Family Finance Resource Center:

Weekly: To keep your budget in line, monitor your account balances online and use personal financial management (PFM) tools to help analyze, track and reduce your spending. Examples of free PFM tools include Dupaco Community Credit Union's Shine Online Banking or Intuit's mint.com.
Monthly: Scan your checking and credit card statements to make sure transactions are accurate. Don't forget to follow up on those small charges that just don't add up.
Once a year: Calculate your net worth to see how things are changing over time. Compare your assets (the things you own) against your debts. Each year, your savings balances should be growing and your total debts should be declining.
Once a year: Figure your debt-to-income ratio. That's the percentage of your gross income that goes to paying debts.

Uncle Sam: thanks for the interest-free loan

2011-03-17T13:01:00.006-05:00

If you're receiving a tax refund this year from the government, you may want to rethink your withholding.

The average refund last year was $3,003. Rather than giving an interest-free loan to Uncle Sam, file a new Form W-4 with your employer and have less money withheld from your salary, putting more money in your pocket throughout the year (Center for Personal Finance).

Make the change now – putting it off only increases the likelihood that it won’t get done.

Haven't yet filed your taxes? Check out the Center for Personal Finance’s full list of money-saving tax tips, which include the following:

Don't overlook a single tax credit. A credit is better than a deduction because it cuts your actual tax bill. Examples include the child tax credit and first-time homebuyer tax credit. Review the list of tax credits, organized neatly by category.
E-file if possible, and with Free-file if you're eligible. If your income is less than $58,000, visit irs.gov for information about 20 tax software companies that make their products available for free; some also support state tax returns for free. If you make more than $58,000 and are comfortable preparing your own tax return, consider Free File Fillable Forms.

Also note that you'll have an extra three days to file this year, as the District of Columbia's observance of Emancipation Day falls on the traditional tax deadline of April 15, pushing the tax deadline to April 18. Taxpayers who request more time to file will have until Oct. 17 to submit their returns.

Report says some NFL players living paycheck to paycheck

2011-03-10T16:32:00.006-06:00

Winning the lottery. It's the dream of many, and for most of us, daydreaming about this windfall is the closest we'll ever get.

How much better off would you really be if you had more money? Well, roughly 380 of the NFL's near 1,700 players live paycheck to paycheck (msnbc.com). Hmm. Their average player salary for the 2009-10 season is $1.8 million. (In fairness, rookie players and those second- and third-stringers make less than this average, which is skewed by the superstars' salaries.)

If you can't manage the money you have now, you'd likely do no better if you had a lot more money. So maybe the best way to prepare for a windfall is to do a better job today managing what money you do have. If you need help honing your money management skills, you might turn to the trusted financial experts at your credit union for budgeting, saving and investing help.

And if you come into money, whether it be through inheritance, income tax refund, or even the unlikely jackpot win, perhaps your priorities would be to save some cash instead of trying to keep up with the Jones', and to make it grow with sensible investing and the power of compound interest on your side.

Portions of this article were derived from the Home & Family Finance® Resource Center.

The right time to buy...maybe

2011-03-03T14:38:00.011-06:00

Home prices in many of America's largest cities have continued to fall, according to Standard & Poor's Case-Shiller Home Price Indices, which measures U.S. home prices. Some analysts predict prices will continue to plummet.

How eastern Iowa home prices will shake out in coming months remains to be seen. According to data by the Federal Housing Finance Agency as published in the Dubuque Telegraph Herald, Cedar Rapids prices were down 0.1 percent last year but up 4.2 percent in the past five, while Dubuque home prices were up 1.3 percent last year and 9.1 percent in the past five years.

Whether you are in the market to buy now, or are waiting it out to see if falling home prices might net you an even better deal, make sure you're honest with yourself about how much house you can afford.

Generally, a monthly house payment should be less than 26% of your monthly gross income and includes your mortgage, property insurance, and property taxes. Your total monthly debt obligations—including house payment, car loans, and student loans, for example—shouldn't exceed 38% of your monthly gross income (Home & Family Finance^® Resource Center). This standard has some wiggle room; talk to your lender for guidance.

FAFSA pitfalls can torpedo your college financial aid

2011-02-24T12:38:00.003-06:00

It's open season for FAFSA filing – the Free Application for Federal Student Aid. The FAFSA is the government document families need to complete in order for their college-bound student to be eligible for college financial aid.

Some changes to the online form this year have made FAFSA completion easier, such as the ability to import data from an already-filed tax form. But this upgrade doesn’t remove the potential for mistakes to be made on the FAFSA, mistakes that can cost a family to miss out on financial assistance.

Reporting for U.S. News, higher-ed journalist Lynn O'Shaughnessy recommends the following tactics for FAFSA completion to maximize the potential for financial assistance:

Complete the FAFSA asap: If you procrastinate you could miss deadlines for state and institutional financial aid assistance.
Don't mention retirement assets: One of the best ways to torpedo your chances for financial aid is to include your retirement assets on the FAFSA. Money that you have in 401(k) plans, Individual Retirement Accounts, and other qualified retirement plans should NOT be reported.
Don't report home equity, vehicle values, household possessions, etc.: The FAFSA won't ask if you own your residence, so any home equity that you enjoy won't hurt your chances for need-based aid. (The FAFSA does ask about second homes and real estate investments.)
Have the correct parent complete the FAFSA: For divorced or separated parents, the parent responsible for filling out the form will be the one who has lived with the student for the majority of the year – it will only be this parent's financial data that will be shared on the form, not both.
Correct mistakes: Make corrections (even after submitting) by returning to the online form and clicking on "Make FAFSA Corrections." The government will process your changes within three to five days.

For more from O'Shaughnessy visit her blog The College Solution.

Pick a card, but not just any card

2011-02-17T16:57:00.001-06:00

MADISON, Wis. (2/14/11)--With the national average interest rate for credit cards reaching a record high of 14.73% (creditcards.com Feb. 2), you'll want to make sure you're getting the best deal possible.

Here's some advice from the Credit Union National Association's Center for Personal Finance for getting the lowest rate possible on a credit card:

Get a card from a credit union. A credit union credit card typically has a significantly lower interest rate than a bank credit card. For example, right now the national average rate for a high-limit "platinum" card is 2.34 percentage points higher at a bank than at a credit union (Informa Research Services Inc. Feb 6).
Use a different kind of credit. For big-ticket items, such as a computer or major car maintenance, rather than use your expensive credit card, consider "closed-end" credit, a loan with a set number of monthly payments. A personal installment loan, even if it's unsecured--that is, not backed by collateral--will have lower finance charges.
Tend to your credit score. The rate a credit card issuer will offer you is highly sensitive to your credit history and the score derived from it. Do everything you can to demonstrate that you're creditworthy, such as by paying all your bills on time, without fail.
Use a secured card. A credit card backed by money you've set aside in a special account is a good way to start improving a weak credit score. Your lender will give you a better interest rate because it can always take money from your account if you don't make your payments. But if you do, your credit record will improve and, over time, so will your score and your future cost of credit.

Consumer sees 50% rise in her credit card's rate

2011-02-09T11:30:00.001-06:00

Increased usage of credit cards is a sign that consumers are gaining confidence in the economy, say analysts.

The Federal Reserve said this first increase in credit-card debt since the financial crisis has helped to boost overall consumer borrowing by 3 percent in December (npr.org). When the economy tanked there was a flight to saving, with households reining in borrowing and spending.

The shift in economic conditions has some lenders loosening their restrictions on credit, making credit more attainable for consumers. But people with new or existing credit cards must continue to pay attention to the disclosures – the fine print that outlines fees, interest rate rules, etc.

Those with less than perfect credit history should pay particular attention to that fine print. CNN Money recently reported on Texas resident Toni Riss, who was approved for a low-limit credit card with a 29.9% annual percentage rate. After 6 months the disclosure mailed to her indicated that her rate would rise to 79.9%.

“Consumers carrying a balance on these types of high-rate cards will rarely see any downward movement of their balance,” said Matt Dodds, Dupaco Credit Union's Senior Vice President of Consumer Lending. “Using debt consolidation to pay off credit card balances in full may be one option to escape that trap.”

Dodds recommends consumers contact their local credit union as a starting place for individuals seeking to eliminate their high-cost debt.

Watch your step: minimizing the risk of your digital footprint

2011-02-01T16:47:00.003-06:00

Web pages may store bits of information about who you are in files called "cookies" on your computer, and your browser will store the sites you've visited in a history file—thus creating your digital footprint.

Even if you're not online, programs will store histories of the files you've opened, played, or viewed.

Cookies are created to recognize users when they return to a Web site; they make Web use quicker and make it possible to offer customized content to a user. But they can be a threat to your privacy if they store sensitive information like your name and password on protected login pages, preferences, account information, and choices you have made on the site.

Here's how to lessen your digital footprint:

Use Clear All History to delete cookies in most Web browsers.
When you log in to a site and the computer asks whether you want it to remember you, don’t do it—even if you're using your home PC. This makes it more difficult for someone to retrieve personal information about you.
Try "Browzar." The new search engine Browzar acts as an online vacuum cleaner that removes Internet caches, histories, cookies, and online autoforms (the online tool that anticipates the Web address or search engine term based on data you've previously entered online and is stored on the browser).
Consider purchasing software programs that help eliminate your digital footprint such as McAfee, says Dorothy Steffens, vice president of Web services for the Credit Union National Association, in Madison, Wis.

Portions of this article were derived from the Home & Family Finance® Resource Center. To read the entire article covering more on digital footprints, how they're made and how to protect yourself, click here.

Untangling credit, debt in a divorce

2011-01-26T12:37:00.003-06:00

The transition from committed spouses to anything less typically includes separating finances, at least to some degree. Todd Mark, vice president of education for Consumer Credit Counseling Service of Greater Dallas, offers these suggestions for dividing debts and protecting your credit:

Obtain your credit reports. The reports will outline the amount of debt, and which accounts are individual or joint.
Close joint credit accounts. If there is an outstanding balance on a joint credit card, either pay it off (or separate the balance on two individual accounts) and close the account. Do this with joint cell phone accounts and other service plans, too. Monitor any account either online or by phone that still has your name on it, even if your spouse assures you that he or she is making the payments. If he or she misses a payment, your credit will be damaged.
Separate joint liabilities. From a credit standpoint, says Mark, ownership is also liability. If both your names are on a vehicle title, then you are equally liable for the payments and any accident that occurs. The same goes for a mortgage.

Portions of this article were derived from the Home & Family Finance^® Resource Center. To read the entire article which covers more on weathering the financial storm of a divorce, click here.

Money matters for kids

2011-01-19T14:17:00.007-06:00

Only one in three teens believe that their parents/guardians are concerned with making sure they are learning the basics of smart money management, revealed the Charles Schwab Teens & Money 2007 Survey.

Ouch.

While many parents and other adult influencers are genuinely concerned about raising money smart kids, many just don't know where to start. The reality is that teaching young kids about responsible money management doesn't have to be overly complicated. The key is to start with small lessons and start young.

For the very young, a trip to the credit union or bank to make a deposit can go a long way. Let them hand the teller the deposit, then explain where it goes and why. The same goes for retail store purchases. By allowing the child to hand off the credit card or cash to the cashier, you're helping connect the dots that items we bring home from the store are not free. (Don't overlook explaining that plastic is another form of money—it looks different from paper money or coins but serves the same purpose.)

BabyCenter.com offers these additional ways of introducing money to preschoolers:

Shop or host garage sales: talk about the savings potential of shopping for used vs new or earning potential if you are hosting the sale
Visit the local farmer's market: to help make the connection between work and money, explain that the vendors produce the items they are selling, decide the price, and try to make money by selling their wares
Play online games: Check out the US Mint's site and Googolplex, for elementary through high school-aged kids
Set a family savings goal: your child can add your loose change to the pot, and occasionally his/her allowance, towards something the whole family will benefit from

By including your kids in your conversations and decisions about money early on, you'll help set the stage for lifelong responsible money management.

Three ways to leverage your payroll tax 'raise'

2011-01-11T21:13:00.002-06:00

NEW YORK (1/10/11)--If you have a job and pay into Social Security, you'll get a temporary "raise" in 2011. That's because a 2% decrease in your payroll taxes is part of the Tax Hike Prevention Act Congress signed into law at the end of 2010 (msnbc.com Jan 3).

You won't see this money in a lump sum. Instead, each paycheck will be a tad more because you can expect to pay a little less in taxes. How much? You can get an idea by visiting Kiplinger.com and typing "tax cut calculator" in the search engine.

No matter what size your "raise," if you don't plan how you'll use that money it will slip away. Here are three ways to get power out of that extra cash:

Invest in yourself. If you don't have any credit-card debt, put the entire 2% in a pre-tax retirement account or Roth IRA, start laddering certificates of deposit/share certificates (CDs), open a high-yield savings account, or invest in a mutual fund. If you have credit-card debt, use the extra cash to pay it down.
Invest in your living situation. Establish an appliance-replacement fund and think "energy-efficient," pay more on your mortgage every month, or put the money aside every paycheck for auto maintenance.
Invest in quality of life. Start a fund for gift giving so you can celebrate important occasions and give to charity without worry, add a line to your budget for family entertainment so you're ready when the big show comes to town, stash the money to pay the rising costs of health care, or join a fitness club and invest in your personal health and well-being.

Two of these ideas have bonuses in that you'll get a percentage back if you invest in a pre-tax retirement account or a health savings account. Others save you money by reducing costs: If you pay down credit card debt, pay more on your mortgage, or upgrade an appliance, you'll wind up paying less in interest or the cost of energy. If you invest in a Roth IRA, besides bringing you more money when you retire, your contributions most likely will be cheaper in today's tax climate than they will be in the future.

This article was written by the editors of Home & Family Finance Resource Center.

Tax-time blunders: disorganization and dismissed donations

2011-01-04T17:02:00.003-06:00

It's tax time, which means many are now scrambling to find receipts and paperwork from donations made in 2010. It's frustrating if you can't find donation receipts for the past year. Or, maybe you typically skip recording what you've donated—and risk missing out on your charitable deductions altogether. Number three on Kiplinger's list of 19 most-overlooked tax deductions is out-of-pocket charitable contributions. (Kiplinger.com Dec 2010)

For some people, keeping receipts and check stubs from tax-deductible donations and purchases in an envelope or tax tickler file works. When tax time comes they have all records in one place.

There's another option for easy tracking of tax-deductible contributions which may be a better fit for people, and it's free. ItsDeductible.com, from Turbo Tax, gives individuals the ability to track online donated items such as clothing, electronics, and household items as well as vehicle mileage accumulated to complete volunteer work. You also can track donations of stocks and mutual funds. The site can track the method of payment you used to make contributions as well—cash, check, credit card, or payroll deduction. You do not have to be a Turbo Tax customer to use the site.

Larger contributions are more obvious and harder to overlook, but all those smaller contributions add up. So, in this new year, resolve to save yourself money by better tracking all your tax-deductible donations in a way that works well for you.

Prime season for home equity scams

2010-12-31T14:00:00.001-06:00

As consumers' attention shifted to their busy holiday schedules in the past weeks, thieves were busy scamming home equity lines of credit. During a time of year when many people slack on monitoring their finances for unauthorized purchases or accounts opened in their names, it's prime season for thieves.

Brad Mundine, regional manager for CUMIS' credit union protection and risk management division, says home equity line of credit (HELOC) account losses from theft increased significantly in 2010. (Credit Union National Association Dec. 29)

A HELOC is a line of credit in which a person borrows against the equity in their home. It can be used for whatever purpose the borrower chooses.

Recent scams have involved thieves making transfers or wires from existing customer HELOCs to other accounts or opening new HELOCs on which they transact. If a criminal has obtained access to an individual’s personal information, it may be possible for them to pass through financial institutions' safeguards against unauthorized wire transfers. Once wired out of the account, the money is not often recovered.

People may learn they've fallen victim to this crime when they notice the fraudulent transactions appearing on their account, are notified by their financial institution of a late payment on their HELOC, or it shows up on their credit report.

To protect your identity and help prevent losses, diligent monitoring of account statements and activity and credit reports is necessary, along with safeguarding your sensitive personal and financial information.

Take RMD on your IRA by Dec. 31 to avoid penalty

2010-12-29T16:28:00.004-06:00

by Dennis Zuehlke

The deadline for receiving 2010 required minimum distributions (RMDs) from IRAs is right around the corner. Miss it and you will be subject to a 50% penalty tax on the amount you should have taken.

That's a costly but avoidable mistake. Unfortunately, for many IRA owners, the requirement is "out of sight, out of mind." That's because Congress waived the requirement for 2009.

But it's now 2010 and, since the waiver has not been extended, traditional IRA owners age 70½ and older and some IRA beneficiaries are once again required to take minimum distributions from their IRAs by Dec. 31, 2010.

Q. How do I know if I have an RMD for my IRA for 2010?
A. All traditional IRA owners age 70½ and older, and all IRA beneficiaries who are taking annual life expectancy payments of inherited IRA assets, have a 2010 RMD.

Q. What is the deadline for receiving my 2010 RMD?
A. The deadline for receiving your 2010 RMD is Dec. 31, 2010, unless you turned age 70½ in 2010. In this case, you can delay receiving your 2010 RMD until April 1, 2011.

Q. How do I know the amount of my RMD?
A. To compute your RMD, divide your Dec. 31, 2009, IRA balance by your remaining life expectancy, using the life expectancy tables published in IRS Publication 590. If you are an IRA beneficiary, the calculation is more complicated, so contact the trustee or custodian of your inherited IRA for assistance.

Q. I took a distribution from my IRA in 2009 even though it was not required. Can I offset my 2010 RMD by the amount that I took last year?
A. No. You cannot reduce the amount of your 2010 RMD by any amounts taken in a previous year. Likewise, you cannot reduce your 2011 RMD by taking more than the amount of your 2010 RMD this year.

Dennis Zuehlke is compliance manager for Ascensus in Middleton, Wis.
Published by Home & Family Finance^® Resource Center

The ordinary, extraordinary, and the best things in life

2010-12-24T06:30:00.000-06:00

What makes your Christmas merry – a practical gift that is perhaps ordinary, or a unique treasure that's not so much a necessity as a pleasure?

It would seem that the majority of Americans have gone the way of ordinary this year. The top five gifts planned for 2010 include clothing, electronics, toys, gift cards, and – the gift 58% of people plan to give – cold-hard cash, said the Consumer Reports Holiday Shopping Poll.

Seems it’s a fairly useful combo of categories, with a little fun and entertainment mixed in.

If you are on the receiving end of a gift card, make sure you use it. Sounds like captain obvious talking, but more than a quarter of those surveyed who had received a gift card this year had not yet used their cards as of October either because they had forgotten or didn’t make time to spend them. (Read Reasons why we hoard gift cards for tips on how to avoid letting your gift cards go to waste.)

Whatever you’ve received or will receive yet this holiday, we hope you’ve found joy in the season, and remember that “the best things in life aren't things” (Art Buchwald). But just for kicks, tell us what goodies you received or gave this holiday season at dupaco.blogspot.com.

Insurance policies: review and revise in the new year

2010-12-21T17:06:00.001-06:00

Insurance coverage can ease financial hardship when life gets complicated, unpredictable, and expensive. For that reason, you should review and adjust your coverage regularly. But when and why to review? Here are a few suggestions.

Life stages can be triggers. If you are:

a young person just starting out, it may be time to look at renters and auto insurance (if you own a vehicle). You may be able to bundle these for a better rate.
getting married, adjust auto, homeowners, and health insurance coverage to protect you and your spouse. Think about life and disability policies in case tragedy should strike.
setting up a household with a domestic partner, know that insurance needs often are different from those of married couples. Talk to your agent to make sure you are both covered in case of a loss.
in an established family, your assets likely have grown. Review coverage of personal possessions and replacement values as well as life insurance to cover debts. Make sure you are not overinsured. If children are heading to college, review health, renters, and auto coverage.
retired or become a senior, check for homeowners policy discounts. Compare auto policies—premiums may rise for seniors. Your financial portfolio also might indicate that it's time to evaluate annuities.

To understand your insurance benefits, educate yourself, and use your insurance agent. He or she is there to help clarify the policy and any unanswered questions you may have.

Click here for more on when and why to review your insurance policies from Home & Family Finance.

Free, personalized help available for Iowans fearing foreclosure

2010-12-15T11:04:00.009-06:00

Iowa Attorney General Tom Miller is leading the charge of the 50 states' attorneys general who are combining their efforts to better protect homeowners struggling with loan payments. Their work is aimed towards getting large mortgage servicing companies to put more resources into helping struggling homeowners modify their existing loans, possibly helping them avoid foreclosure. (Iowa Public Radio Dec. 2010)

Iowa Mortgage Help (IMH), a state-sponsored resource for homeowners facing financial difficulties with their mortgage payments, reports logging hundreds of complaints against mortgage service companies. Included in the complaint list is the mishandling of documents, homeowners not receiving consistent information, and delayed response times from servicing companies which can result in a pileup of late fees. In some cases, these factors contributed to foreclosure earlier than what may have been necessary.

In an interview with Iowa Public Radio's Joyce Russell, IMH's Julie Muckler said that since Miller's investigation has begun, the large mortgage servicers have been more cooperative and responsive.

Where to turn?
Iowans who are facing mortgage payment difficulties can call the Iowa Mortgage Helpline at 877-622-4866, or complete an assistance form online at iowamortgagehelp.com to initiate help. When reaching out for assistance whether via phone or web, IMH reminds people of the importance of being honest about their situation, as the goal of the process is to find solutions, not lay blame.

Give wisely: protect yourself and your charitable donations

2010-12-10T16:40:00.005-06:00

'Tis the season for giving to family and friends, and donating to charity. But before you donate, make sure you're giving to an organization that will put your money to good use and that you're donating wisely and safely (USAToday.com Nov. 30).

The Charities Review Council, St. Paul, Minn., recommends taking these steps before making a contribution:

Verify the charity. Research the organization at the Charities Review Council website (smartgivers.org) to confirm that it's legitimate. Look at the online giving guide to find more about the organization, its mission and programs to know what your donation supports. Don't just give to an organization because it has a heart-warming story on TV.
Beware of phony sites. Scammers often use Web addresses that are similar to official addresses of legit organizations to trick users.
Review the organization's privacy policy. Check the website or ask the organization for its policy to learn how it will use and safeguard your information.
Protect confidential information. Look for "https" in the browser to make sure you're on a secure site. Never click on links in unsolicited e-mail appeals asking for confidential information such as passwords, credit card numbers, or financial account numbers. Also beware of attachments--they may contain viruses that can harm your computer.
Observe check donation safety. If you're donating through the mail and not online, make your check payable to the charity, not to the individual collecting the donation, recommends the Better Business Bureau. Never send cash.

From the Home & Family Finance^® Resource Center

Know the new rules for flex spending accounts

2010-12-08T16:19:00.006-06:00

While contributing to a health-care FSA is a great way to use tax-free payroll deductions to cover medical expenses, health-care reform will change the ways you can use funds in 2011 (Kiplinger Oct. 15).

Here are some examples:

Over-the-counter drugs no longer qualify without a prescription.
New rules may cover adult children's expenses. If your employer has expanded the definition of dependent to include any child younger than 27 at the end of the year, you may be able to use money in your FSA for adult children's out-of-pocket expenses. Previously, this worked only if the child was a dependent for tax purposes.
FSA limits will be lower in the future. FSA limits aren't changing next year, but the maximum limit will shrink to $2,500 in 2013. So if you're considering a medical procedure that isn't covered by insurance, such as laser eye surgery, you might want to schedule it in 2011 or 2012.

Dec. 31 marks the eve of a new year and is also the deadline for many with flexible spending accounts (FSA) to spend funds allocated in 2010. Be sure to check with your plan administrator on this important deadline, as well as the deadline for submitting reimbursement claim requests for eligible expenses.

Click here for more from the Home & Family Finance® Resource Center.

Holiday shoppers, be wary of these sales pitches

2010-12-03T17:05:00.004-06:00

If you visited a mall or discount store last weekend, you might come to the conclusion that shoppers are just cavemen with better fitting outfits. The grabbing, the grunting, the dashing, the darting--you'd think we were fighting for survival, not the last pair of cashmere socks on the rack. Oddly enough, you're right on target, and so are retailers.

Here are several sales pitches aimed at tricking our hunter-and-gatherer brains (SmartMoney.com Nov. 10).

Spend $50 today; get $10 off later. This now-and-later technique is geared to bring you back into the store to see the newest merchandise and overspend your budget. Think twice before heading to checkout. Perhaps you can hold off on a few items until your next trip.

Limit two. This brings out the competitor in us all. If the store is setting limits, it must be a great deal. Or is it? Before scooping up one for Uncle Chuck and another for cousin Bill, compare to ensure it's really worth the asking price.

Five-hour-only sale. Yes, some retailers are aiming to scare you into buying. Limited-time sales are meant to move you now on the fear that all the bargains will be gone tomorrow. While this may be a great sale, it's clearly not the last and may not even be the best.

Get 23% off. What happened to "save 20%"? It became invisible. Odd numbers grab our attention, suggesting a bargain that has already been marked down. This is just an attention-getting device, so go ahead and give it your attention--then your scrutiny.

Save $150! Who doesn't want to save $150? By drawing our attention to the savings (rather than the price), a retailer creates the illusion that the actual price is more reasonable. So if you're shopping for a Blu-ray player and find one you like for $99, stick to your guns--even if you can save $60 on another model for $119.

This article was written by the Center for Personal Finance editors of the Home & Family Finance Resource Center

Know retailers’ rules to make merry your holiday spending

2010-11-30T20:57:00.003-06:00

Consumers’ busiest time of the year for spending is now. Make it merry: avoid holiday spending headaches by following these consumer tips from Iowa Attorney General Tom Miller.

Returns and "layaways": Make sure you know a store's policy on returns or layaways before you make a purchase. Remember, there is no state law that requires stores to give a refund, exchange, or credit for merchandise that is returned or taken off layaway (unless the store advertises that it accepts such returns, or unless an article is defective or was misrepresented.) Remember, Iowa's three-day-right-to-cancel law only applies to door-to-door sales, or sales made away from a seller's usual place of business. In short, most refund policies are up to individual retailers.

Buying Online: Be sure to shop with reputable companies. Make sure the seller lists an address or toll-free number, just in case you have a problem. Be sure purchases are refundable in case you are not satisfied. Get all details on shipping and handling fees, refund and return policies, and complaint procedures. Print out and keep records of your purchase. Use only “secure” websites. Pay by credit card (not by check) so you can dispute the bill and withhold payment if necessary. Be wary of online classified ads and auctions, and avoid providing financial information directly to classified ad sellers. For more tips on “Web” shopping, go to: www.IowaAttorneyGeneral.gov (click on “consumer protection”), or www.FTC.gov.

Mail orders: If you order gifts by mail or telephone or over the Internet, you have certain protections. Federal law requires the seller to ship your purchase within thirty days, unless the offer or advertisement specifies a later date. If there is a delay, the seller must notify you, give you a chance to cancel your order, and send a full refund if you choose to cancel. Don’t send cash. The safest way to pay for mail order purchases is by credit card.

Reasons why we hoard gift cards

2010-11-23T15:47:00.007-06:00

Have you ever been on the receiving end of a gift card which sits in your wallet for months–even years—unspent? You're not alone. I'm currently carrying six gift cards that I've owned for at least 10 months.

It's not that these cards are necessarily forgotten. Instead, they are "reserved" for special occasion spending. That sounds perfectly reasonable, until you consider that people (me) will actually visit the restaurant or retailer for whom they are carrying a gift card and pay for their meal or purchase with cash or plastic.

Why do we do this? UCLA marketing professor Suzanne Shu says it has a lot to do with psychology. (Marketplace.publicradio.org Aug. 26)

Shu says gift cards are like rewards, and we feel like we need to create a great occasion around using them. But those occasions sometimes don't present themselves as often as we might think they will.

So this holiday season, as you receive gift cards or certificates make a plan for their use. Save your own hard-earned cash and use those cards for the purchases you would be making anyway. Don't let inactivity fees eat away your balance, or the closing of a retailer rob you of the card's worth. Plan a time to use restaurant, massage, or other service-type gift cards, and don't wait for a "special occasion"–the receipt of the gift card alone can be the special occasion.

Home prices not done falling

2010-11-19T09:04:00.001-06:00

MADISON, Wis. (11/17/10)--Look for home prices to slide perhaps another 7% between now and midyear 2011, according to FiServ, a market analytics company based in Brookfield, Wis.
If that forecast is right, home prices nationally will have dropped 34% from their peak by the time they hit bottom.

For as many as three million Americans, the dream of owning a home has faded. Home ownership has declined from its peak of 69.1% in 2005 to 66.9% today (CNNMoney.com Nov. 2). Additionally, the vacancy rate among homes designated owner-occupied is 2.5%.

Despite low mortgage rates, which averaged 4.3% in September for a 30-year fixed rate and 3.8% for a 15-year rate, "people aren't going to be in the market if they can't find jobs--or feel insecure about keeping their jobs," says Susan Tiffany, CUNA's director of consumer periodicals.

If you're in position to leverage today's low rates, Tiffany has these suggestions:

Shorten the term of your mortgage. You'll probably need a strong credit score and at least 20% equity.
Look to free up some cash. Refinancing can reduce your monthly payments or help you save money with a lower interest rate and/or shorter term for repayment.
Expand your real-estate holdings. If you are looking for a second home, or an investment property, it looks like a buyer's market over the next year.

Tiffany offers one caveat: "Most forecasters are saying mortgage rates may rise gradually through 2011."

To read the entire Home & Family Finance article, click here.

Buying in bulk: bargain or bust?

2010-11-10T17:49:00.001-06:00

Warehouse clubs may provide some cost savings for buying in bulk, but buyer beware – it pays to do some figuring before assuming that buying in bulk will net substantial savings.

For a recent Savings Experiment, Walletpop.com recently took a look at warehouse club buying to uncover successful bulk-buying strategies. Among their findings:

Toiletries, diapers, vitamins, cereal, dog food, and cleaning items, are a few of the bulk items named "consistent values".
Consider the "per unit price" of what you're buying. If figuring the per-roll price of the TP in a four pack vs the bulk buy is not how you want to spend your time in the grocery aisle, there's an app for that. The iPhone app RedLaser can tell you whether the price you'll pay is worth it, or can be beat elsewhere.
Split bulk perishable items with others so spoilage doesn't happen before consumption. Singles or households with fewer people might also consider splitting other purchase items, like those which take up lots of storage room.
Carefully consider the cost to join. Will the savings cover the cost of the fee?

A membership at a warehouse club can be a good value for certain purchases and for certain households. But you'll likely have to do a little investigating to feel confident you’re really getting a bargain.

Fraudulent internet scams circulating

2010-11-05T12:25:00.002-05:00

Fraudulent internet scams have been reported in the area, attempting to capture sensitive information, including credit card number and other personal data. Some of these scams may purport special offers through pop-up ads related to a user's internet activity, which makes these fraudulent offers appear relevant and safe.

Fraudulent offers of this type may be generated as a result of a user's personal computer being infected with malware (malicious software). Malware can generate offers that appear to be legitimate but are actually a scam. To better protect yourself against this type of malicious software, it is recommended that you install up-to-date anti-virus and anti-malware software on your computer, and should you find malware or spyware on your computer, to have it professionally removed.

Equally as critical as software protection is staying alert and cautious while online. If you are concerned about the legitimacy of a message you've received whether it's delivered online, via e-mail, by phone or even in person, trust your instincts and do not proceed until doing research. Don't provide any personal information until you can verify the legitimacy of the offer with the company or organization using contact information you know to be genuine.

The impacts of co-signing on credit

2010-10-29T16:28:00.005-05:00

As a co-signer on a loan or credit card application, you're lending your good name and your solid credit history. You also make a promise to repay in full if the original borrower can't, doesn't, or just plain won't. You are legally responsible for repayment of the debt. And, co-signing may impact your own credit score.

Still, there are many valid reasons someone might consider co-signing, including helping to establish your young adult’s credit. For those with little or no credit history applying for credit, having a co-signer may prevent them from getting turned down or from paying a higher rate.

Follow these three guidelines to make co-signing successful:

Set up automatic payments. The best way to build a strong credit history is to make every payment on time. Before you co-sign for a loan, insist on establishing automatic monthly payments.
Agree to limits. Know when you're getting out before you get in. For a loan, aim for three years or less. For a credit card, start with a low limit. As a co-signer, you'll be notified of any request to raise the credit limit. And once your young adult is 21, have your name removed from the account.
Share payment notifications. As a co-signer, you have the right to see statements and payment notifications. Consider using shared online access. This gives you the opportunity to step in before an accidentally missed payment turns into a past-due problem.

By following these suggestions, you lay out your expectations before co-signing. Being frank will help protect your financial standing and can also maintain your positive relationship with your borrower.

For more information on loans to family or friends the Home & Family Finance Resource Center.

Poor credit could cost you a job and more

2010-10-25T11:19:00.002-05:00

Your credit score – one measure of your credit worthiness – can affect your ability to get an auto loan, buy your own home, get affordable insurance, and it may even affect whether you land certain jobs.

According to the Equal Employment Opportunity Commission (EEOC) more than half of U.S. companies are using credit checks to help make hiring decisions (Marketplace.publicradio.org Oct. 20).

And that creates a vicious cycle for some. In an environment where unemployment is high, the loss of a job can make it easier to fall behind on bills. Since payment history attributes to your credit score, late or missed payments can cause your score to drop. And if you’re in line for a job, that credit score could contribute to whether you land the job.

The EEOC held a public forum on Oct. 20 to explore the use of credit histories as employee selection criteria. Several of these meetings have been slated throughout the year. Congress is examining a possible ban on credit checks for employees.

As a consumer, it’s important that you know your score and monitor any changes. Take advantage of the free credit reports each of the three main credit bureaus must supply you each year. Visit www.AnnualCreditReport.com to access your reports.

National Protect Your Identity Week Oct. 17-23

2010-10-19T10:58:00.001-05:00

Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes (ftc.gov).

Identity theft continues to grow, with the number of victims in the U.S. reaching 11.1 million in 2009, a 12.5% increase over the previous year, according to Javelin Strategy and Research, Pleasanton, Calif.

Threats exist online and off and no one is completely safe. But consumers who better understand what may put them at risk for ID theft can make themselves less vulnerable.

One educational consumer resource is OnGuardOnline.gov, which provides practical tips from the federal government and the technology industry with topics including computer disposal, safety on social networking sites, kids' privacy, and much more. Do you really know the risks of peer-to-peer file sharing or using wireless networks, how to spot a risky online offer, and how to secure your laptop in case it's stolen? You'll find a whole list of clever interactive games to sharpen your skills in these areas and more here.

Consumer savings, environmental protection fueling changes in fuel standards

2010-10-12T12:43:00.002-05:00

The federal government is currently drafting phase two of a plan intended to toughen greenhouse gas and fuel economy standards for passenger cars and trucks with model years 2017-2025. With this plan, fuel efficiency standards between 47 and 62 miles per gallon are possible (CNNMoney.com).

According to the Environmental Protection Agency (EPA), the national program is intended to save consumers money by cutting down on fuel costs, improve our nation’s energy security by reducing dependence on petroleum, and protect the environment by reducing greenhouse gas pollution that leads to climate change.

Although the cost of these fuel efficient vehicles would increase as a result if the new rules are made final, the average owner could save between $4,900 and $7,400 in fuel costs over the lifetime of a 2025 model year vehicle, even factoring in the added cost of the car itself, reports the National Highway Traffic Safety Administration and the EPA.

iTunes users report "phishy" account activity

2010-10-06T16:47:00.003-05:00

If it smells like an apple, is it Apple? In other words, if you receive an e-mail about your iTunes account, and the e-mail has the look, the feel, the tone of Apple—and you really do have an iTunes account—how do you know whether the e-mail was really sent from Apple?

For a year now, many iTunes and PayPal users have become victims of fraud after incurring hundreds and even thousands of dollars in charges on their accounts they had not authorized. Problem is, iTunes and PayPal report their systems were not compromised. So what's going on?

"Because there was no wholesale breach, the most likely scenario was that it was a phishing attack," says Clifford Neuman, the director of the University of Southern California's Center for Computer Systems Security. (msn.com Oct. 5)

Phishing e-mail messages are designed to steal your identity. They ask for personal data, or direct you to Web sites or phone numbers where they ask you to provide personal data. They likely will look like legitimate e-mails, using company logos and masked website addresses which direct you to fake sites.

If you are ever in doubt about the legitimacy of an e-mail, the best thing to do is to call the company directly or go to their website using a number or a URL you know to be true. And if in doubt, NEVER provide any personal or sensitive financial information via web, phone, or e-mail.

Study up before enrolling in a for-profit college

2010-10-01T17:08:00.001-05:00

For-profit colleges are the subject of much scrutiny as of late, being criticized for unethical and fraudulent practices for bringing in students. A government inquiry of 15 for-profit colleges found examples at every school of officials lying about or misrepresenting their programs. (USA Today Aug. 4)

With a high student loan default rate and reports of inflated placement rates, the for-profit education industry is preparing for a Senate hearing on Thursday which will address reported abusive practices towards students.

Students considering programs offered by for-profit schools can better protect themselves by studying up before making their tuition deposit:

Check accreditation. Ask if specific programs are accredited and by whom, and if there are other licensing or registration requirements beyond the earned degree and if the program prepares students to take any required exams upon graduation. Then verify the information. You can start with your state’s Attorney General's office.
Search for complaints. Most attorney general offices have consumer complaint divisions that log grievances against educational institutions. If not, state education departments should point you in the right direction. Be sure to find out the name of the school's parent company and search for it, too.
Check graduation, placement, and retention rates. The National Center for Education Statistics, Washington, D.C., is a good place to start.
Talk to potential employers. Ask employers if they are familiar with a program, whether they would hire its graduates, and if they ever have.
Compare community colleges. Community colleges and public, nonprofit technical schools often offer programs similar to those of private proprietary schools for a fraction of the cost.

The artful dodge in talking salary history

2010-09-24T14:35:00.005-05:00

Salary negotiations can be a tough terrain to navigate, especially these days when employers have cut salaries, skipped pay raises, or combined multiple positions, leaving many employees paid well beneath their worth.

Seventeen percent of unemployed workers have received at least one job offer since they became unemployed, yet 92 percent of them declined the offers with pay being the most commonly cited reason candidates turned down a job. (CareerBuilder.com)

It’s common for companies to ask job candidates to divulge their salary history early in the process. Revealing this information without shooting yourself in the foot is tricky. But lying about your salary is never a good idea.

So how should one proceed?

The editors of Money Magazine (Sept. 21) recommend artfully dodging the question utilizing these strategies:

Avoid talking hard numbers. Leave the salary history space blank on an application or write “discuss in person”. In an interview, suggest that the conversation first center around the job opportunity rather than salary history.

Focus on total compensation. Use the total of your wages plus any stock options, 401(k) match, bonuses, and upcoming raises.

Research salaries for similar positions. Do your homework so you have the figures to negotiate upward.