Jill Russo Foster

Tips for Successful Personal Finances

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Holiday Shopping Tips

The holiday season is in full swing Were you one of those out there at midnight shopping on Black Friday? It’s easy to spend money during the holidays We shop to make the holidays special for those we love and also to look good and feel good during the darkest month of the year.

If you’re worried about spending too much, think about these things before you shop.

  • Do you really need the item? If not, don’t buy it.
  • Can you (or the person you are giving this to) live without it?
  • Do you have the cash to pay for the item? You don’t want to charge items that you can’t afford to pay off when the bill arrives.
  • Is this a good price? Do your research ahead of time to know that you can buy it for less.

This year with the economy we are in, I would suggest that you do some planning before you tackle the holiday season First look at your list are there people that you can eliminate buying a gift for? Maybe you could spend time with that person creating new memories instead of buying an item off the shelf For the people on your list that you will be buying for, think long and hard to determine what amount of money you have to spend This should be an amount within your budget (not on credit cards that must be paid off later) Your holiday budget should include all the items you have to buy, such as hostess and/or food gifts for parties, tips for the service people in your life, additional gas and holiday clothing for yourself.

If you’re going to buy something (especially during the holiday season), do it wisely and within your budget Let the joy of the holidays extend in January by avoiding the stress of January credit card bills Remember, a bargain isn’t a bargain if you’re buying something you don’t need.

New Bank Fees – Watch Out

Has this economy made you look more closely at fees and unessential services? Earlier this year, the Credit Card Act was enacted to help consumers That was good for you, but your creditors lost sources of income They want to take that money back The next wave of consumer fees is about to begin (or may have even started).

Banks are upping their fees Here are some examples:

Do you have totally free checking? That’s probably going to change You will need to keep more money on deposit to qualify for free checking.

Do you prefer to make your deposits and payments in person? There could be a fee to use a bank teller.

Do you receive paper statements and cancelled checks by mail? The bank may start charging you for that.

Do you have overdraft protection? Previously, you only paid a fee when you used the service That’s changing My bank now charges $1.50 per month for the privilege of overdraft protection Some banks are even charging you to link your savings and checking together for overdraft protection, along with the additional fee for actually using the service.

Want to open an overdraft protection account for the first time? That could cost you a fee as well.

Banks are implementing these changes to increase their revenue, so watch your statement closely (you should be doing this anyway) Read the inserts in your statements Call to question new fees, and if you’ve already been charged, ask for reimbursement.

If your bank account is costing you too much money, find out what you can do to avoid the new fees If all else fails, take your bank accounts elsewhere There are still banks with good lending and investment practices These banks don’t need to overcharge their customers to make money.

Automatic Bill Payment: Should You Use It?

Whether you pay your bills online or with a check, you’ve probably seen the automatic bill payment option It’s a great service for the companies you pay, but is it a great service for you?

Each company lists all the advantages of the service: your bills will be paid on time, you’ll never miss a payment, and you’ll never have late fees Yes, those are great advantages But they don’t mention the down sides.

You won’t be able to check your statement before the payment is made.

This is a definite downside You might even get in the habit of not checking your statement at all There might be charges you need to dispute: maybe a purchase wasn’t yours, maybe a new service charge was added to your account, maybe there was an increase in fees.

On credit cards, you only have a limited amount of days to dispute a transaction Once that time is up, you can’t be reimbursed Or, if the cost of a utility increases (after a promotional period), you may want to make other arrangements as soon as possible.

If you choose the automatic payment service, take the time to look over your statements as soon as they arrive.

A Payment Could Overdraw Your Account.

Many of our accounts have fluctuating balances Utility charges change with the seasons and credit card spending increases on holidays and vacations Do you keep enough money in your account to cover all your payments, regardless of the amount?

Here’s an example: August was an unrelentingly hot and humid month in some states Many people left on the air conditioning all month only to be shocked by the size of their electric bill They didn’t realize that the rate per kilowatt would increase as their usage increased, which made the bill go even higher than expected Some people thought they’d end up paying $100 more for August, but ended up paying $200-$400 more How many people keep enough in their checking account to handle a $500 electric bill? Not many.

If you choose the automatic bill payment option, keep extra padding in your checking account and check your bank balances frequently.

Automatic bill payment works great for some people Choose the option that works best for you As always, take steps to protect your personal finances.

Can you minimize college expenses?

There isn’t anything that you can do about the cost of tuition once you have chosen your school But, you can plan for other costs: the books, room and board, technology, supplies, medical, and entertainment.

Books

Books are necessary for college, but can you lessen the costs? Yes! With the Higher Education and Opportunity Act that went into effect last month, assigned textbook prices must be printed in the course schedule This is a big win for your budget In the past, most people didn’t know the price until they got to the college book store It gives you the opportunity to price shop for the textbook I suggest looking for used or rented text books Check out www.Chegg.com or www.BookRenter.com.

Room & Board

You might be thinking that room and board are a fixed expense, and that’s true for freshman But, most colleges allow you to live off campus after your first year That opens up some new options More roommates equates to more savings If you want multiple roommates to really cut down on costs, you could consider a house rental If you don’t want roommates, you could look for a room & board arrangement These would be local homeowners who are looking to rent out a spare room Prepared meals and access to laundry may be included as part of the agreement If you want an on campus option, look into becoming a Resident Adviser RA’s typically get a room and board reduction but check with your school to confirm.

Technology

It’s a given that you will need a computer But do you need a printer? If you do, check the back-to-school specials Remember, printers require paper and ink Shop around for supplies, don’t just rely on the campus book store You may also find that you don’t actually need a printer in your room Ask questions and see what’s available on campus There could also be an inexpensive printing service off campus, like FedEx/Kinko’s.

Supplies

Think about what you need, as well as how much you need You can minimize expenses by not overbuying Your entire family may empty a bottle of shampoo in a month But when it’s just you, a single bottle could last a whole semester or longer Make a list, talk it over with other people, and revise your list as needed Then shop for the best deals before you head to school Prices may be higher in the town or city near campus.

Medical

Something you may not think about, but should, is medical insurance If you parents have insurance, you can probably be covered by them But, do they have in-network insurance? That means that you can only be seen by select doctors or medical centers Do they have those options near your school?

Entertainment

Most people have some form of entertainment to help them relax But, entertainment can be expensive That’s why a lot of college students learn how to play card games, like Eucher Or, they start kicking the soccer ball around in unofficial games of football These types of games are free But, you should plan on enjoying some paid events, whether it’s attending the games, seeing movies, or going out with friends Plan ahead and budget how much you’re willing to spend each week on entertainment Use cash, and don’t bring your debit card with you when you go out It will help prevent overspending.

All your little expenses will add up Give them thought and research ahead of time to save yourself a considerable amount of money.

Jill interview in the New York Daily News

Back to school season and it’s time for the other big talk: money

BY Jean Chatzky
Monday, August 23, 2010, 4:00 AM
Original Article Link in the New York Daily news
PDF Version

Back to school season in my house, and likely in yours, means a long to-do list. Stock up on school supplies and clothes. Organize binders. Send everyone to bed a little bit earlier. I know: You’re busy.

But this year I want you to add one more thing to your list: I want you to talk to your kids about money. Many parents are intimidated, yet what you need to teach them is not something they’re likely to learn in school.

“Parents tend to feel that they’re not comfortable with the information, that they don’t have enough expertise or that they themselves have made mistakes,” said Laura Levine, executive director of the Jump$tart Coalition for Personal Financial Literacy in Washington. “But it’s important to understand that kids really do see them as a primary source of information about money.”

When it comes to teaching your kids about money — just like when you’re helping them study for a test — you can’t expect to know it all. I don’t, nor do I pretend to. When one of my kids asks me a question that I don’t have the answer to, we look it up together and discuss what we find. It’s so much better than putting the discussion off altogether because the earlier we start teaching our kids financial basics, the less likely they are to fall into traps.

To encourage people to talk, I’ve joined with American Express to create resources for the first National Money Night Talk, set for Sept. 16.

To take part, parents pledge to talk to their kids about saving, budgeting, credit cards and credit scores. Visit moneynighttalk.com for free tool kits I created to give you the talking points, questions, answers and exercises you and your kids can do together. There’s one for middle school-aged kids, another for high schoolers and another for college students.

Here are a few key concepts to keep in mind when you have your talk.

HOW MUCH TO SHARE

A reason many parents shy away from a big money discussion is that they don’t want to share their own financial information — salaries, debts — with their kids. That’s okay, you don’t have to, but you also don’t want to send the message that money shouldn’t be discussed, said Jill Russo Foster, author of “Cash, Credit and Your Finances: The Teen Years.”

“I’ve taught classes and asked how many kids know if their parents own or rent their home. If they don’t know, I send the question home and I’ve had parents who wouldn’t answer. I’m not asking you to tell them how much you make each week, but this is a basic question,” Foster said.

I like real-life examples, but it’s okay to pick ones that aren’t so personal. Kids want to know how much it will cost to live on their own. Pick ones you feel comfortable discussing: How much you spend on groceries each week, the phone bill, the cost of a MetroCard and the percentage of your salary you try to save.

THE GREAT RECESSION

Today’s teens know they’re experiencing tough times. Maybe a parent or a friend’s mom or dad lost their job, or there were foreclosures in the neighborhood. They may be wondering about the impact on you and your family but have been reluctant to ask.

This is a good way to work in lessons about living within your means, saving money and creating an emergency fund in case of a layoff, unexpected expense or emergency.

SET AN EXAMPLE

This year, try a different approach to your back-to-school spending: Tell your kids you’ll be spending a set amount of money. (Decide how much you can afford before the talk.)

Together, make a list of what you need to buy. Then pick a day to go shopping and let them budget their money.

If they pick out a pair of $100 sneakers, help them figure out what they still need to purchase — and whether they can afford the pricey kicks.

Your Money columnist Jean Chatzky is financial editor of NBC‘s “Today” show, a contributor to “The Oprah Winfrey Show” and the author of seven books, including, “Money 911: Your Most Pressing Money Questions Answered, Your Money Emergencies Solved.” Check out her blog and learn about her Debt Diet Online at jeanchatzky.com.

Reduce Interruptions, Retake Your Time

This is the second part of streamlining the interruptions in your life.

As of January 1, 2005, the Do Not Call list went in to effect Adding your phone number(s) to the list prohibits companies with who you do NOT have a direct relationship (non-profits and political organizations are exempt) from contacting you for solicitation purposes You can register your telephone number(s) (cell phones too) so that unwanted calls are substantially reduced To register your phone numbers go to www.DoNotCall.gov or call 800-382-1222 Registration takes 31 days to take effect and numbers remain on the list for 5 years, at which time you should re-register So if you registered when the law started, it’s time to re-register.

Also in 2005, the Junk Fax Protection Act was enacted Each fax should include the option for you to remove yourself from that companies fax list, by providing you with a toll free number to call to get your number removed from their list.

Sometimes after all your efforts, you continue to receive unwanted communications, and you have made it clear to the company that you do not wish to be contacted and you have no relationship with them or a sister company and you continue to get contacted, you have the option of reporting the company to their regulatory agency For example, for calls and faxes contact the FTC to file a complaint.

The system is not perfect, but I personally have eliminated most unwanted mail, calls and faxes.

Jill interview in the Greenwich Time

Small steps make big difference for financial health: experts

Karen Kovacs Dydzuhn
Published 3:51 pm, Thursday, June 24, 2010
Original article link in the Greenwich Time

Given today’s shaky economy, more women are seizing control of their finances and, at the very least, are determined to learn more about the basics of money management and how to invest their assets wisely.

Last Tuesday’s “Living A Health Financial Life” seminar, sponsored by Mutual Security Credit Union, in partnership with Hearst Media and its HealthyLife magazine, drew a large turnout of women — and men — eager to listen to financial experts talk about budgeting, credit reports, estate planning and finding a competent financial planner.

Against picturesque views of the Long Island Sound from the Inn at Longshore’s Grand Ballroom, four panelists — including Westport’s own local radio celebrity Lisa Wexler — offered the audience tips on how to make small changes that could positively affect their personal finances.

Noting that people today are living longer lives, Stephanie Giletto, divisional vice president of Nationwide Financial, stressed the importance of getting organized, determining one’s goals and taking actions, no matter how small a step it may be.

“Do not procrastinate,” she advised. “You came here tonight for some information, so use it. Knowledge is not power; it is the application of knowledge that is power.”

Jill Russo Foster, a financial coach and author of Cash, Credit and Your Finances: The Teen Years, also encouraged people to take control of their finances by making a budget. Russo described budgets as “the starting point” that will lead to increased savings.

“You know the big items, such as your mortgage or car payments,” Foster said. “It’s the holes in the budget that get you in trouble. It’s the things that you don’t realize that you are spending money on that are the problem. It’s the little things that add up.”

Ideally, she added, you want to change your habits so that you could maintain your lifestyle but spend 10 percent less.

Foster also described the importance of having stellar credit. This could be obtained, she said, by paying bills on time and keeping a balance on credit cards that is no more than 30 percent of the card’s total limit. “This is not the time to max out your credit cards,” she said.

Likewise, if you are planning to buy a house in the near future, Foster said that it’s not a good idea to open up new credit cards. Contrary to what many people think, having credit cards is a good thing.

“Throw it in the refrigerator if you’re afraid that you will use it, but don’t close out your account,” Foster said. “Having long-term credit cards show that you can handle it regardless of what the economy is like. You have to learn to act responsibly, which is what this whole seminar is about.”

Wexler, acting as the seminar’s master of ceremonies, as well as its keynote speaker, pointed out that change happens in “small steps.” However, she also added that “The enemy is complacency.”

She described in detail her own journey of moving from owning her own law practice to essentially taking on two new businesses in the radio broadcasting industry.

“I am now responsible for creating a really fabulous show that people want to listen to, and selling advertising and marketing the show so it’s a financial success, too,” she told the audience.

Wexler recently wrote and published with her mother, Gloria Kaman, and sister, Jill Zarin of “The Real Housewives of New York,” what is becoming a best-selling book, Secrets of a Jewish Mother.

On Tuesday night, she credited her mother, who was in the audience with Wexler’s father, for instilling in her an entrepreneurial spirit.

“My mother taught me that women need to be financially independent,” Wexler said. “We must pass this along to our daughters.”

Also referring to family members, Dr. David Carboni, a certified financial planner and expert on retirement issues, spoke about the need to have an up-to-date will, durable power of attorney, health care representative and appropriate life insurance beneficiaries in place.

Vivian Werner, of Stamford, said that all of the speakers made interesting points. She was initially drawn to the seminar for its opportunity to network. Werner recently got laid-off from her marketing manager position at IBM after 30 years of service.

As a single woman, though, Werner explained that she has already “done a lot of work on my finances.” In fact, she used money received from IBM’s final package to pay for tuition to an interior design program. Werner’s goal is to open a marine upholstery and canvas business, she said.

And, referring to Giletto’s advice about using a financial planner, Werner said that she is presently working with someone she trusts.

Giletto — whom Werner described as a “dynamic speaker” — stressed the importance of letting one person get to know your entire portfolio.

“Everyone sitting here today is long-term investors, even if you think you are more short-term,” Giletto said.

Larry Holderman, president and chief executive officer of Mutual Security Credit Union, was pleased with the seminar’s turnout.

“Providing information to the people in the communities that we serve is a large part of what we do,” he explained.

Is convenience hurting your wallet?

Is convenience hurting your wallet?

Yes, we all want convenience We all work, have families, a household , and we all want to do it all, but there is never enough time Convenience saves time and that’s of huge importance to us all But look at it from the wallet side convenience can cost more money.

Can you have convenience cheaply? If you’re willing to plan, yes! Here are a few examples:

Pizza night: Who doesn’t like to have pizza delivered to the house But, how about a store-bought cheese pizza at $5.00 that you bake at home versus a delivery pizza at $10 (plus the cost of delivery and a tip).

Fruit and Vegetables: Pre cut fruits and vegetables are more costly than the actual item If you don’t like to cut them up yourself, choose fruits and vegetables that are easy to eat without cutting.

ATM machines: I know many people who take out $20 today to buy lunch and then another $20 tomorrow when they are at the store again If you are using an ATM that isn’t free this all adds up How about planning for the week and making one withdrawal at your bank’s machine That way there are no ATM charges.

Books, music and DVD’s: Convenient to buy, rent and/or download for a small fee But, did you know that you can borrow these from your local library at no cost?

All these little amounts add up This could be the difference between having a savings account versus living paycheck to paycheck.

Trust me – you need to see where all the little money is going and start to make conscious choices about whether to spend your money or not Convenience saves you time but it might be costing you more in the long run.

If You Can’t See Your Money, You’ll Spend More

Don’t let your bank profit from overdraft fees! In 2009, it’s estimated that banks earned $20 billion (yes, with a b) in overdraft fees Transactions from ATM machines, debit cards and reoccurring bill payment transactions are mainly responsible for record overdrafts These are invisible money transactions because you can’t see how much you’re spending or how much you have left in your account.

With the new Credit Card Act of 2009, things are changing.You will not be able to automatically overdraw your bank account.Instead, your transaction will be declined.But, that information may come too late to save you from difficulties with creditors and merchants.

The only way to prevent overdrafts is to keep good financial records You must know how much you have available at any given point Better yet – use cash According to studies, people who use actual cash spend 20% less than using other forms of payments That’s because they can see how much money they have left after making a purchase If you choose to use cash, use larger bills The larger the bill, the less likely you are to spend it It is so much easier to spend $5, $10 and $20 It doesn’t seem like much if you spend $20 in 5 different stores But if you have to break a $100 bill, you will have a true understanding of how much you’ve spent.

If you still want to use invisible money, and you aren’t going to track your account, you will have to opt-in with your bank to have your transactions pre-approved Remember that you will still have the fees associated with overdrawing your account.Those fees are typically over $35 for each transaction.

Spend wisely by avoiding fees Avoid fees by keeping good records or by using cash Overdraft fees are a total waste of your hard earned money.