A Financial Education Event
 

Financial First Aid Kit – Military Appreciation Month

In honor of military appreciation month, I’d like to highlight our Army son, Joshua. When he was born we started saying, “If he had been our first, he would have been our last.” That little boy had more energy and could get into more scrapes than all our other children combined. When he was eighteen months old, he stripped down to his diaper, took a plastic sword and chased his four older siblings around the house, thus earning the nickname “Conan, the baby barbarian.” By that age, he had also jumped off the top bunkbed (three stitches) and “flown” off our travel trailer (four stitches). Joshua was the reason we purchased a serious first aid kit. He’s now an Army Lt jumping out of airplanes at Fort Benning.

Just as every family needs a good first aid kit for those unexpected accidents, they also need a financial first aid kit, or practical ways to help safeguard their financial future.

  1. An Emergency Savings Account – This account is not an investment account, it doesn’t include IRAs, retirement accounts or CDs. Its purpose is not growth, but safety. These are funds that are accessed in the event of spouse unemployment, emergency home repairs, or unexpected auto repair bills. The best way to build this account is to establish a family budget. Go to your base’s Family Readiness Center to develop a budget for your current season of life. I recommend automatically transferring funds from a paycheck or checking account into a savings account every week. A good guideline is to save three months of living expenses for dual income households or six months for a single income family.
  2. Life & Health Insurance – For life insurance, you will need enough money so that your dependents could invest the money and live modestly on the proceeds. For military members, the best buy is still SGLI, or Servicemember’s Group Life Insurance. Members are automatically insured for the maximum amount of $400,000 unless an election is filed reducing the insurance by $50,000 increments or canceling it entirely.  Family Servicemembers’ Group Life Insurance (FSGLI) is a program extended to the spouses and dependent children of members insured under the SGLI program. FSGLI provides up to a maximum of $100,000 of insurance coverage for spouses, not to exceed the amount of SGLI the insured member has in force, and $10,000 for dependent children. The rates are inexpensive. If your situation requires additional life insurance or you are transitioning out of the military, look at USAA for the best rates for military members and their families. For health insurance, there’s healthcare.gov where you can find out about open enrollment season and how to get insurance plans changed or updated. Another good place to research a variety of plans is found at eHealthInsurance where you can compare plans. There’s also
  1. A Will –Here’s another easy one, that’s as easy as making an appointment with the JAG or taking advantage of mobile services that are sometimes offered at military conferences such as Yellow Ribbon. The main section of this critical document will assign a guardian for your children. In many states, the surviving spouse may only get one-third to one-half of the assets that were in your sole name. Your children get the rest and if they are minors, a court administrator could handle their money until they become adults. Make sure that the beneficiary designations on any 401(k) plans, IRAs, life insurance and bank accounts are also up to date. Another option is legal zoom, which can prepare a quick will at a low cost.
  2. A Retirement Account –A surprising number of military spouses, or reservists do not take advantage of the terrific tax-deferred accounts offered by their employer, which include 401(k) plans. The Thrift Savings Plan (TSP) is a Federal Government-sponsored retirement savings and investment plan and has great rates with low fees for administering the account It’s part of the new Blended Retirement System that is currently in place. This plan offers the similar tax benefits that many private corporations offer their employees under 401(k) plans and they are full portable upon leaving the military. Be sure your current TSP funds are not in the “G” fund for maximum benefit.
  3. A Good Credit Rating – The best way to rebuild good FICO, or credit score, is found in three steps: pay more than your minimum payment (even if it’s only $5/month more), pay a day early rather than a day late (set up automatic transfers from your checking account to your credit card company for minimum payments) and never let your available credit fall to less than 30% of the total credit available (for example, $2000 on a $6000 credit line.)  Each year, get a free copy of your credit report by going to Annual Credit Report or go into the base’s Family Support Center where they can also run a free copy of your report and check your score.
  4. A College Fund for Those Babies!–Select a college savings account that has low fees, a good selection of investments, plus a tax break. One of the many options is a Qualified State Tuition Plan, also known as 529 Plans. Be sure to research your state of record and their plans. These contributions will be tax-deferred and could even be tax-deductible from your state income tax if you are a resident of that state (check with your tax specialist). When the money is withdrawn for college, it is only taxed at the student’s income tax rate. If the child does not go to college, the money can be designated for another beneficiary or removed at a 10% penalty.

 

If you’re a family with a “Conan,” then make sure you have a First Aid Kit on hand. But don’t forget the fact that your family need a Financial First Aid kit as well.

I wanted to issue a special thank you to all our military families who serve, we appreciate you!

Financial Education Month – How to Resolve a Credit Dispute


In our Heroes at Home Financial Event tour, we work with military members to make sure their credit history keeps them flying high! Even pilots can get grounded if they can’t hold a Top Secret security clearance and they can’t hold a clearance if their credit is awry. There are some pilots with one million dollars in training assets invested in them. It would be terrible for them to have to fly their last sortie because of this important issue. But security clearances are something that every military member has to protect. That could be an expensive mistake. Thankfully, some of these issues are able to be resolved with the help of Airman and Family Readiness, but it still had an impact on military readiness.

You may not have a million dollars in national security assets invested in you, but you’re still a valuable person to your family, friends and community. Whether you are a military aviator or a mom who works from home–it’s important to regularly check your credit report from all three providers (Experian, TransUnion and Equifax). You can get a free copy at Annual Credit Report where federal law allows you to get a free copy of your credit report from each of these reporting bureau once every twelve months. The law also allows you to ensure that all the information on your credit reports are accurate and up to date.

One of our financial education speakers is the ever knowledgeable presenter, Rod Griffin, from Experian. We recently discovered something new going on

at Experian regarding  enhancements to its dispute center that make it easier and faster to file a dispute.  Many people do not understand how to correct mistakes on their credit reports – so financial literacy month is a good time to help educate them on the process and take away the fear that it’s a daunting or complicated task.

Here are some of the highlights of the dispute center where consumers can:

  • Use their smart devices as it’s mobile-optimized
  • Upload photos of supporting materials directly from their smartphone
  • Get a free Experian credit report
  • Follow contextual links designed to help them better understand and access various sections of their report
  • Receive timely alerts updating them on the current status of their active disputes
  • Sort and view the accounts listed on their credit report by alphabetical order, date opened or status, and filter by categories such as collections or installment loans.

Be sure you share this with anyone you know who may have a credit report dispute and be sure that you check the credit reports on everyone in your family. Hopefully, you won’t find a credit history on your four year old daughter or 1 year old son, but identity theft is knows no age!

Knowing your options will help you with your credit report spring cleaning–especially if you find anything out of place! Once your work is done, sit back, make yourself a cup of coffee and don’t forget to join me and my co-host, Bethany Bayless in The Money Millhouse podcast for our interview with Rod Griffin, Gerri Detweiller and other credit financial experts.

 

Millennial Moneybags

As a seven-year-old, I launched a business where I made $10 in two weeks through extensive marketing and key product placement to my second-grade class. In 2018 dollars, that’s equal to $712—not bad for a kid entrepreneur! When my dad heard how much I’d made, he pulled my braid and said, “Good job, little moneybags!” That sparked a passion in me to earn more, save more and share more.

Fast forward a lotta years and I’m teaching my five millennials the basic skills to master in their 20s to become financially savvy and stable.

Spend Plan

It’s important to develop a budget and stick to it. Make sure it is realistic and accounts for all your spending—including entertainment, gifts and other splurges. If there’s more than one person doing the spending on the same plan, then mint has a good app you can use to track where those dollars are going. The three main parts of a good spend plan include the ability to: save diligently, share generously and spend wisely.

Squash Debt

It’s pretty basic: saving=good and debt=bad. Don’t add to debt buying things you don’t need with money you don’t have to impress people you don’t like. Instead, put all “bonus” money toward debt such as income tax returns, bonuses from work and even a happy birthday check from your Grandma. This can also help you whittle down that average student loan debt of 35K+ and the average credit card debt of 8K. By paying off this debt early in your life, you’ll avoid thousands of dollars in interest and create margin in your life. In our 20’s my husband and I made the move to one car to get ahead on debt repayment and we don’t regret doing without for a little while to be debt free forever!

Spend Not and Want Not

Y

Most millennials live paycheck to paycheck with a lot of financial stress hanging over their heads. You can break this cycle, even if you came by it honestly (from your parents’ example.) Readjust your mind set to look at extra money left over at the end of the month as either savings or debt repayment—not fun money to spend. As you are trying to spend less to get on track financially, you may get an extra roommate to reduce your rent payments or carpool to save on commuting. Go to happy hour for free food and be the designated driver, drinking water. Use Retail Me Not every time you buy anything (online or in a store) to get codes and other savings. Be creative in the ways you can spend less than you make each month.

Save for a Rainy Day and Beyond

Any smart millennial will have a few months savings in a rainy-day account to pay for that unexpected bill or an emergency. A super smart saver will also start tucking away money for retirement and take advantage of the miracle of compounding interest. In our Heroes at Home show, we share this slide that shows you how to invest in yourself.

 

Super Skilled Cooking Star


My twentysomething year olds love the food network and Pinterest. They especially like watching a client of mine, Amy Pottinger, a military spouse, compete on that network. But what’s the use of watching cooking shows if you never cook? According to the USDA Cost of Food at Home, you can save thousands of dollars each year by making your own food instead of eating out. In fact, by using apps to save money in the grocery store and getting coupons and tips from sites like The Coupon Mom, you can save even more. I added up all the money I saved over 20 years with sales, coupons, and eating in (instead of eating out) and the amazing total was $161,000, that’s enough to help put some millennials through college debt free!

Strategic Splurges

 

Sometimes, there’s a misconception that becoming financially fit means you deprive yourself of everything fun and there’s no room for a splurge. Not true. You are just careful about what you will splurge on. That $20 glass of wine in a restaurant can go four times as far at Trader Joe’s when you splurge on a $20 bottle of wine (instead of the two buck Chuck.) Buying clothes that fall apart after one or two washes isn’t as smart as buying quality (on sale) that will last longer. An energy efficient appliance that saves you money in the long run is a better option than the cheaper version with a higher utility bill. Read up on products before you waste your money and realize that a strategic splurge here and there can save you significant change in the long run.

 

So, So, Happy

 

One of the reasons our family could go from being 40k in consumer debt to where we could pay cash for everything (including cars and college) is because we chose to be content. The more you choose to be happy where you are (knowing that’s not where you will always be), the better off you will be financially. You don’t have to drive a new car, live in the coolest place or take a mega trip once a month. I always said, “you can have it all—but not all at once.”  It’s a choice, you can drive a better car and have more roommates. You can splurge on clothes and drive an old clunker. It’s all about choices and the biggest and best choice of all is to simply choose to be content where you are right now.

 

How many of these habits do you currently practice?

Smart Money Habits for Millennials (and Their Mamas)

The Kay Family had five babies in seven years. That roughly adds up to 3 kids in diapers at once, 10 years of not sleeping through the night, 4 teenage drivers at the same time, 3 kids in college at once and today, we have 5 millennials in their 20’s simultaneously.

Fun .

But the good news is that they eventually slept, pottied, drove, graduated and even mastered money habits in the journey. Here are the habits we helped teach our millennials to make sure they didn’t have to move home, they could remain financially independent, have a great start for their families, and still buy their mama nice birthday gifts.

Habit #1 – Create and Live By a Spending Plan

Many millennials have heard of the value of creating a budget and even have apps that help. But it’s of little use if they don’t know how to stick to it. Here are my favorite apps to help:

  • Mint Budgeting App – I met the founder of Mint, Aaron Patzer, in a green room, years ago, when we were both going to be on ABC News in NYC. At the time, he was building his success with Mint. I just remember him being (as he says in the video) “full of myself.” Ha! But his budgeting app is probably the best out there because it makes it easy to create a budget. You connect the Mint app to your bank and the app uses your details to help create a personalized budget.
  • PocketGuard Budget App – This app also connects to your bank accounts and shows you what you currently have in your pocket. It tracks your money to show what you are spending and automates where you’re going off budget and where you need to cut back.
  • You Need a Budget – This app’s claim to fame is that it creates a budget you can stick to based on the info provided in your bank accounts and spending habits. It even teaches you what to do if you overspend and how to live on last month’s income. This is the only app that cost money in my list and it’s $50 for the year, but there are hoards of devotees that say this app helped them to finally live on a budget.
  • GoodBudget – Back when dinosaurs roamed the financial space, there was an “envelope system” where you put the money you needed in each envelope labeled with expenses such as gas, food and entertainment. It helped Bob and I get out of 40K in consumer debt in only 2.5 years when we were first married. This app is the digital version of that system, making sure that everyone knows how much is left in the “envelope.”

You might need a money buddy to stay on track, too. Tiffany Aliche, The Budgetnista, talks about her journey on our fun podcast The Money Millhouse and how she went from broke to anything-but-broke through techniques that kept her on track.

Habit #2 – Cook Creatively and Consistently

Money evaporates when you order out for lunch or dinner more than one or two meals a week. Bob took leftover dinners (the

re’s a microwave and fridge at work) for our entire marriage and we calculate that he’s saved $20,000 by doing this! Make Pintrist your pal or watch The Food Network to learn easy ways to create nutritious and tasty meals. Ask for an Instant Pot for your next birthday and make more than you need for dinner so you’ll have leftovers for either lunch or dinner later in the week. Or freeze the leftovers. My daughter lived with roommates for a few years and they would assign different nights for each of them to cook to simplify the work. Cook more and your wallet and your waistline will thank you.

Habit #3 – Care About Your Retirement

When we take our Heroes At Home Financial Event on the road, we teach young service members the miracle of compounding interest with the mantra: start early, start small and stay committed. Be sure to start with funding a Roth IRA and take advantage of your company’s matching portion of your 401(k). Lacey Langford, an Accredited Financial Counselor gave some great tips on a segment called “I Aint Afraid of No Money.”  She discussed retirement planning from her experience in working with the military (but many tips apply to civilians as well.) If you’re military, be sure to go into your Family Readiness Center to discuss the Blended Retirement System and what your options are for your situation. It’s free and a benefit you can use early and often.

Habit #4 – Count the Cost of Debt

The average millennial college grad owes 37K in student loan debt and the average household owes $8500 in credit card debt. Work on minimizing the debt you accrue and pay off the debt you have so that you’ll have the flexibility to move or wait on the right job. One of my sons worked for JC Penney, and they eliminated his entire department. Most employees were freaking out because they had student loan debt, consumer debt and car debt—but not our son. He made a practice of living on less so he wouldn’t accrue debt and he was able to have less worry in the process of finding a new job.

Be sure you also pay attention to your credit score. Rod Griffin, from Experian, came over for a discussion on coffee and credit. He works with us on our tours and he teaches that if you have bad credit, you’ll pay an average of 360K more (over your lifetime) for the use of basic credit, than the person who has a good score. Improve your score by paying on time, paying more than the minimum balance due and make sure you never use more than 30% of your available credit.

Habit #5 – Choose Contentment

This is a tricky habit because it’s a mindset that you choose. There will always be something to spend money on to make you go off budget or get into financial trouble. There’s the new phone, tablet, car, vacay, boyfriend/girlfriend, baby, or a plethora of other reasons to want to spend more and have more. This is where your friends, family and even faith come into play. Coveting what others have or do is a lesson in futility and discontentment. Your friends either contribute to this mindset or they keep you focused on what matters most. If keeping up with their lifestyle is an important platform in your friendship, then you may want to find new friends. Remember that this financial journey is a marathon not a sprint. I’ve always said, “you can have it all—just not at the same time.”

What is one habit you are good at? What is one habit you want to improve upon? Share it with us, a friend or even a money buddy, so that you can be fiscally healthy in 2018 and for a lifetime.

 

The Money Millhouse – Podcast Extraordinaire

Live, from Ellie’s kitchen table… it’s The Money Millhouse!

WELCOME TO THE FINANCIAL SHOW ANYONE CAN LISTEN TO!

The conversation gets lively and somewhat ridiculous when Ellie and Bethany share a cup of coffee (or four) over Ellie’s kitchen table. They not only have fun at The Money Millhouse, their conversations about saving money, couples communication, spend plans, super heroes and more make you feel like you are drinking coffee right along with them. Coffee, friends, money, sometimes random singing… what could be better?

Each week on this little-over-20-minute podcast, a special guest joins Ellie and Bethany at the table to discuss relevant money-related issues. From saving for retirement and credit chats, to home-based business tips and maybe a thing or two about what Star Wars has to do with coffee, there is always something to talk about.

The Money Millhouse will teach you while entertaining you with offbeat humor, geek-speak and money tips you never knew existed. If you can put up with Ellie’s annoying dogs announcing the next guest to come to Ellie’s door for a cup of Joe and a light hearted but important conversation, then you’ll get the maximum return on your time investment.

Come on in to The Money Millhouse, where we brew up money saving tips and tricks for anyone’s lifestyle. You might even learn a few secrets in the Millhouse closet.

The Money Millhouse is a production of Heroes at Home, a non-profit organization that gives financial education to military families around the world. To find out more about Heroes at Home, visit heroesathome.org.

The Money Millhouse Crew:

Ellie Kay is the wife of the “World’s Greatest Fighter Pilot”, mother of 5 children, 3 fur-babies, and best-selling author of fifteen books and a popular media guest on Fox and ABC News, among others. Ellie is the founder of the non-profit “Heroes at Home” and has taken this financial literacy tour around the country and the world for the last decade. Ellie loves roller coasters, ziplining and all kinds of adventure and once took a ride in an F-15 E Strike Eagle, which she said it was less scary than walking into her youngest son’s dorm room. Find Ellie’s personal blog at EllieKay.com.

Bethany Bayless is the wife of Travis, mother of London (goldendoodle puppy), and Director of Communications for Heroes at Home. She holds a Bachelor of Arts in Communications from Moody Bible Institute, Chicago, IL, and has been a social media coordinator for several organizations including two international groups. She is a self-professed geek, aspiring home-cook, and globe-trotter (not the basketball kind). In her spare time, Bethany draws and handletters, throws tennis balls for her puppy, London, and quotes movie lines with her family near and far. Find her blog at wanderlust4less.com.

Identity Theft Protection for Girlfriends, Grandma and Grandkids

BGadmin

My husband brought me the credit card bill and asked “What did you DO on your last trip to New York?” He was stunned, “These charges are to a tattoo shop, an liquor store and a series of bars. Please tell me this is some kind of mistake!”
It was a classic case of identity theft. I may have been guilty of buying one too many lattes and pastries at Dean and Delucas in New York, but I had no tattoos! I tried to respond to my hubby but couldn’t speak . . .
And then I woke up.

Yes, I know. I’m a strange breed because my nightmares consist of dreams about identity theft. Unfortunately, my nightmares are other people’s reality, especially in light of recent major data breaches.
According to the U.S. Federal Trade Commission, it takes 12 months, on average, for a victim of identity theft to notice the crime. You may feel YOU are safe, but what about your girlfriends in your group of friends? What about Grandma in the retirement home? She’s a prime target. So is your four year old grandson, when scammers want to take over his social security number.

I just got back from an informative trip to USAA in San Antonio. They flew out a group of us, who also write about these topics, and they shared the newest ways they help their members in a variety of areas. I interviewed Mike Slaugh, the Executive Director of Financial Crimes Prevention and he gave me some great ways to keep you and (those who love) safe from the ever growing threat of identity theft. Here are some ways to identify and protect yourself from the latest scams.

Phishing Scams – Never give your social security number, account numbers, date of birth or other personal information via email or on the phone unless you initiated the contact.  Never click a link in an email, no matter how official the email looks. Instead, open a browser and put in the name of your credit card or lending institution sending the email. “Some of the most popular scams are romance, charity, work at home and advanced fee scams” says Slaugh. “If you are asked to send money so they can pay you money, then that’s classified as an advanced fee scam.”

Checks – When you pay your credit card by check, never put your credit card’s full account number on the check, just write the last four digits. This will prevent someone in transit from harvesting your account number. Better yet, set up an automatic pay from your checking account and you won’t have to write a check at all (plus, you’ll never be late on your payments.)

• Data Breach – To see if your data was among those compromised during the Equifax Data breach, just go to the website they set up to verify your data. You’ll only use 6 digits of your social to see if your name appears on the list. Remind your girlfriends, Grandma and grandkids to check this info as well. If your info was compromised, then they offer a list of actions to take to help, this also includes getting credit monitoring. Your bank or credit card company might offer free credit monitoring as a benefit to their customers. Our family are USAA members and they partner with Experian to provide those members with free credit monitoring. I’ve seen alerts that tell me new lines of credit were opened.  If these accounts weren’t opened by me, then I can take immediate action.

MFA or Multifactor Authentication – Mike Slaugh emphasized the need to “make sure your financial accounts utilize MFA.” This means that your mobile app or website requires a touch ID, face or voice authentication, and/or a four digit pin, or a security token built into the app. This could include email or cell phone authentication or recovery that would send a code to your phone or email to authenticate usage on a new device.

• Deployed Military Members — During our Heroes at Home Financial events at bases, we encourage deploying military members to bring a device with them that can support MFA such as a keychain token. At the USAA Deployment Checklist you’ll find where a USAA member can go to their security section and ask for the token. Furthermore, you may want to put a credit alert on your social security number to make sure that scammers can’t use personal info to authenticate. Dana Martinez, USAA Director of Corporate Communications adds, “The Active Duty Alert gives extra protection for the service member.” You can put this alert in place by contacting any of the three credit reporting bureaus: Experian, TransUnion or Equifax.

• Auction Fraud or Fraudulent Websites– Auction fraud is a frequently reported consumer fraud complaint at the FTC, totaling 51,000 auction complaints last year. The fraud is simple – put up a fake ad on eBay or other auction site, let someone “win” the bid and send in their money, but never send out the merchandise. Make sure the seller has an established history before you click “buy.” Also, watch out for websites that offer deals that are incredibly good. “If it’s too good to be true, it probably is” says Mike Slaugh. Check out any questionable website with the Better Business Bureau. Or google the website name, address or phone number and see the results.

I had a family member recently try to buy a dog for a great deal. She checked out the website and it wasn’t reported as fraudulent. But when she got to the payment portion, they wanted a Western Union payment before she got the dog– red flag!  There’s no recourse with that kind of payment and you can’t get your money back with a wire transfer or a money order. She googled the phone number listed on the website and saw it was connected to a previous scam website that was taken down. Her savvy sleuthing saved her from losing a lot of money just by being aware and doing her research.

• Identity Theft or Credit Repair Scams — The Federal Trade Commission has warned that some companies that claim to be identity theft prevention companies are scam artists trying to get your driver’s license number, mother’s maiden name, Social Security number or credit and bank account numbers. If you are unsure about a firm, check it out with the Better Business Bureau at www.bbb.org .

 

Keep your data safe and be sure to pass along your knowledge to friends and family members, you could save them a lot of grief just by sharing this wealth of information.

 

Ellie Kay

America’s Family Financial Expert (R)

 

Polite Bargaining – 8 Ways to Negotiate on Everything

BGadmin

My longtime friend, Edith and I found heaven on earth this past weekend and we were determined to milk it for all it was worth. Milk chocolate that is! We took a day trip to Chocolate World in Hershey, PA from her new house in Mechanicsburg and we racked up the discounts all day. There was a Groupon for four special events: a chocolate tasting, the 4D chocolate experience, a trolley ride and build your own candy bar. We saved 30% on those bundled tickets.

Chocoholics forever 

When we had lunch and bought tons of candy to take to our chocoholic friends and family, we got a military discount. When we left, we were astonished to realize that our 3 hours of free parking had grown to $45 for the 6 hours we were there! When we went to pay, Edith (who has 20+ years of military service) asked for a veteran’s discount and we breezed through the exit with a 100% parking discount. We were on a sugar high and a savings high as well! 

My grandma Laudeman used to quote a Bible verse that has stuck with me throughout my whole life: “you have not because you ask not.”

Even though I was a shy person growing up, I was never shy about parting with less of my hard-earned money if there was a chance I could save some bucks.

So, how do you bargain in every day matters without embarrassing yourself or your family? Consumer Reports says that 89% of those who regularly ask for discounts get a “yes” on that discount at least once. Those are good odds.

Here are 8 tried and true ways that can help you become a polite negotiator.  

Everything Is Fair Game – Almost everything in retail goes on sale at some point, so why not try to create your own sale? A retailer may not want to give the sale to everyone, but they may give you a discount if they are still making a profit. Ask the manager if the item has recently been on sale, if it is going on sale soon or if they can sell it at a discount. One college student in Chicago routinely asks for the “good guy discount” because he’s a good guy and they’ll be a good guy if they give him a discount. If you’re military, use the Scout app to find those discounts. Don’t forget the classic money saver, RetailMeNot for additional savings.

Find Something Wrong – A makeup smudge, a missing button or a slight hole along a seam that is easily repaired are all good reasons for a big discount. Show the sales clerk or manager the damaged area and ask for a 30% discount, you can settle for less, but ask for more since it can’t be sold as brand new.

Do Your Research – Comparison shop online using apps like Amazon which has a barcode scanner that you can use when you’re in a store to immediately find the item on Amazon and check its price. Just choose the camera icon next to the search bar and hold it over a barcode. You can do the same thing with Walmart Savings Catcher, which is a part of their regular app. Show the manager the comparison price and ask if they will match it. Check out Yelp to also get check in discounts and review the vendor.

Use Your Expertise – If you are a geek at an electronics store or at a gaming outlet, talk with the sales person and capitalize on your mutual passion for the products. But don’t be a bore and inundate them with a one-way monologue. Instead, build a rapport with the sales person by asking them questions and letting them be the expert they are. You’ll come across as a qualified buyer who is worthy of a discounted price.

Don’t Be Intimidated by Professionals with Titles – Just because someone is an MD, CPA, or a lawyer doesn’t mean you can’t get a discount. One lady was told her eye surgery was going to be 10K and she didn’t have insurance coverage for the procedure. She told the doctor that it was too much and “could he work with her to get it for less?” He told her that besides the big city practice he had (where she saw him) he also had a smaller office in a neighboring smaller city. If she went to that smaller office, he would reduced his fee to $1000, use the smaller clinic that charged a lot less than the hospital surgery room and they got a discounted rate on the anesthesiologist as well. The new price on the surgery? $2800

Buy Everything in Bulk—Even Services! It’s hard for most vendors to turn down cold, hard, cash. I have learned to negotiate paying for services in advance to save even more. These would be known vendors you work with frequently and trust. At my mail and more store where I have a PO Box, I paid for a year and asked for a deal I saw elsewhere where they offered 2 months for free by paying the full year—he gave it to me in seconds. For haircuts, spa treatments, and massage treatments, I’ll prepay anywhere from 5 to 10 services at a 30% discount. Then we keep up with services as we go along, counting down to the next bulk payment. This works especially well for services you know you will get regularly.

Get Discounts on Existing Service by Mentioning the C Word – Take those sale circulars you get in the mail, are hanging on your door, or you find in the paper and call your existing provider to renegotiate your current service. Whether you are getting cable service, cell phone service, entomology or house cleaning services. Call your current provider, tell them you want to “cancel” or talk to the cancellations department. You’ll likely be transferred to a department that has more authority to offer you freebies to keep your business. If you mention the introductory pricing from one of their competitors, you might not get that exact price, but you could use it as leverage to get deeper discounts on your current service.

Be Willing to Walk Away- Whether you are in a department store or a Turkish bazaar, decide ahead of time what your “comfortable” price is for the goods or service you are negotiating. Decide this ahead of time so you won’t get caught up in the moment. My favorite words, when discussing prices, are: “I don’t feel good about that price.” Then the seller usually tries to find out what price I would feel good about. I’ve often been stopped while walking away with a lower price that will seal the deal. And if I’m not followed out with the promise of a bargain? That’s OK, too, I can feel good about walking away if I don’t get the price that floats my boat!   

****

I have a friend who is a newly single mom and her part time job is making phone calls to get discounts on existing payments she must make. We figured she is earning about $50/ per hour for her time investment. She has talked to utility providers, mortgage bankers, insurance companies and the city to get free items such as light bulbs, a/c filters, a refrigerator, a swamp cooler (also installed free), low moisture landscaping and much more. She’s a firm believer in “you have not because you ask not.”

What’s your bargaining story? Let me hear from you!

Summer Jobs For Kids

BGadmin

Nifty Ways for Kids to Earn Money This Summer

The first job my sons Daniel and Philip ever had was a paper route. It gave them something to do during the summer, helped them start managing their finances and was even a little fun (at first). While we said they could only do it if they committed to it for a year, they occasionally passed duties on to their younger brothers, Jonathan (age 7 at the time) and Joshua (age 6).

While mama (age undisclosed) did the driving, the little boys did the delivering. On Joshua’s very first house, he grabbed the paper in his tight fist, barreled up the sidewalk, got his arm into an admirable wind-up and pitched the paper on top of the house! Rooftop-bound periodicals aside, allowing your kids to earn money can be a fun and prosperous adventure, as long as you’re willing to supervise them. Simply set boundaries that are appropriate and let them go to work.

Here are some great ideas to help your kids raise their own cash this summer while enjoying the benefits of earning, saving and sharing:

  • Rent-A-Kid – If you, a church or neighbor (someone you know) needs any odd jobs done, this is a great idea. When advertising the service, it’s important to plan early and be specific, polite and careful. You can even help your child make a small business card on the computer!
  • Washing cars and/or windows – This can be advertised similar to the Rent-A-Kid idea and only requires suds, soap and elbow grease. Focus on safe neighborhoods and quality work. Always accompany your child until you know the employer better.
  • Babysitting – A popular choice for young guys and girls, safety is key for this job. Encourage your child to take a babysitting/CPR course and babysitting people you know. Also, if they keep the house tidy and the kids happy, it can lead to repeat business.
  • Caring for pets – Since summer is a popular time for vacations, people are usually looking for affordable ways to care for their pets. For kids who like animals, this is perfect. Recommend they pass out flyers and visit the animal before they take the job.
  • Mowing lawns – For older kids, this is a go-to summer job and an excellent source of income. It can be dangerous, so it’s important to exercise caution and safety. Make sure they have the proper supply and safety gear and encourage a job well done (the best form of advertising).
  • Making and selling candy or drinks – Everyone loves candy, cool drinks and cookies/cakes, so this is a great option for the future chef. With permission, you can sell at sporting events, church bazaars, carnivals, festivals or farmer’s markets.

Before your kids take on a job this summer, be sure to think about safety, age-appropriate work, training, quality and following through. And after they’re finished, praise them for a job well done! Be sure they are working for family members or trusted friends and feel free to supervise their work by tagging along as long as they are young enough to need you!

What kind of summer job did you do as a kid?

Ellie Kay

America’s Family Financial Expert (R)

5 Ways to Stick to That Summer Budget!

BGadmin

I love summer. It means a lot of fun things for the Kay Family. We have two weddings this year with one on Memorial day weekend and another in July! It means a lot of travel and budgeting to make sure we don’t go into debt!

Summer is a tough time for anyone to control spending, much less stay on a budget.  With the kids out of school and summer vacation around the corner, it’s a time when people fall victim to the thought, “I’ll go on vacation now and deal with the bills later.”

But there are ways to cut back on spending to stay on budget before summer hits. The three areas that require consumers to spend money on a regular basis, that do not go away with difficult economic times: groceries, gas and family essentials (such as clothing, birthday gifts, etc). You can plan for summer and still stay on budget for these “little” areas that add up to big expenses. Here are some questions I got when I went on ABC NEWS that you might find helpful.

Q. Ellie, we often think of the holidays as a difficult time to stay on a personal finance budget, but this time of the year is really is a difficult time to stay as well. There are end of the school year gifts to buy, vacations to plan and a summer clothes to get for the kids. We have to start somewhere, and you say the first step is to start with a plan?

ELLIE: Yes, it’s amazing how kids keep growing every year and the summer clothes they wore last season are two sizes too small this year. But having a plan is a good place to start and while the basic a plan is a budget,  now is the time to break down the household budget into a plan for the more manageable subsections. This time of year, stores and websites are cleverly designed to get you to spend more than you intended. So it’s important to know what you are going to get and spend before you go to the mall or online. This plan will take into consideration past spending behavior and any impulse buys that tend to kick in while you’re in spending mode. Write down what you are going to spend in the little areas and be specific. If your two preschoolers need clothing, then conduct an inventory of what each of them has—including any hand-me-downs and the vacation gear they may need for the entire season. If you’re planning a vacation and find that you will eat fewer meals at home because you’re going to be away, then don’t budget the same amount for the grocery store. Otherwise, you’re adding spending upon spending when you should be cutting in one area and adding in another.

Q. So we have a plan, the next step is to not fall for questionable “deals.” What do you mean by this?

ELLIE: This time of year, you’ll see sales on summer clothing, electronics and even summer foods—all the things that people are thinking about as the school year winds down and vacation time starts to gear up. But not all sales are created equal and you may see a lot of $90 digital cameras and $100 GPS sales but there can be a huge difference in the models. So before you pick up a steal of a deal, do a general price search on the specific model at Shopping.com or amazon.com before you get too excited. Plus, if you go into the store and they do not have it in stock, ask for a substitute that is an upgrade from the model that is on sale. You’ll be surprised at how much you can save by just asking. It’s also important to read the fine print in a sale advertisement. If there is a “limited quantity” or “no substitutions” then that could impact your spending plan. Finally, look at the whole world of “price comps” this is where a store offers to match the price of competitors in any sale advertisement that you bring into the store. While one store may not have that GPS in stock and may not offer rainchecks, another store might match the sale and have plenty in stock. We’ve taken advantage of this kind of offer quite a few times, so much so that price comping has become a habit in our family. This can also save quite a bit of money and help to keep you on track in the “little” areas that can tend to torpedo the budget.

Q. So we have a plan, we’re not falling for questionable “deals” and now you say that the next step is “don’t miss any discounts.” How can this help keep us on track and what if there aren’t any discounts—especially for things like gas and other essentials?

ELLIE: Just because a store or website doesn’t mention a discount on merchandise or shipping on its site or in the ads doesn’t mean its not offering any. There is often a number out there in cyberspace that can be retried into either the promotional code box online or even a coupon code into the register at the mall. To find out if what you are buying has an additional discount, go to RetailMeNot.com on your computer or smartphone and enter the store’s name. Or you can go to CouponCabin.comBradsDeals.com and you may find digital coupons that you can download from the store’s websites.
The same principle applies in the grocery store or when filling up your tank with gas. Go to couponmom.com to save in the grocery store and Go to gaspricewatch.com to find the best values on gas. Don’t forget to check and see if the gas station may offer an unadvertised free car wash, cup of coffee or soda. I just found out that I could have been a lot more caffeinated, for free, at my neighborhood gas station when the attendant asked me, “are you going to get your free cup of coffee?” Once again, if you just do your research you’ll find all kinds of freebies and these “little” things, when multiplied and combined will add up to big savings if you create this awareness level.

Q. The final step you recommend in order to stay on budget in the little things is to use cash or debit cards. There are pros and cons to using debit instead of credit, what are your thoughts on this?

ELLIE: Yes, there is a time to use a credit card instead of debit when it comes to charges that you may dispute on your credit card or when you want an extended warranty or the added protection that comes from using a credit card. However, for these little areas, we tend to track the spending better by using cash or debit and consumers are far less likely to go into debt because people simply spend less when they are using cash according to the Journal of Experimental Psychology, Applied. Store clerks have long found that it is easier to persuade people who are using credit cards to spend more than they were intending. And when it comes to shopping online, you dn’t necessarily need a credit card to have more protection than using your debit card online. One other option that won’t get you into debt is to research the layaway plan at your local retailer by going to eLayaway.com

Happy Summer!
Ellie Kay
America’s Family Financial Expert (R)
http://www.elliekay.com/

Heroes at Home Financial Event – JBSA and Del Rio

“You crashed!”
Again?
It seems that every time I get in a simulator, I either run off the runway before I take off or I crash it once I get airborne.
I suppose I’ll leave the flying to the pilots in the family!

We’ve officially launched our 2016 Heroes at Home Financial Event with the help of our friends at #USAA. We are meeting great military members from all branches at Joint Base San Antonio (JBSA). Every attendee received a “Command Your Cash” from the USAA Educational Foundation through their MFRC or AFRC. At the back of that book is information on how to have the Ed Foundation bring a course on “Command Your Cash” to your military unit. We also gave away 100 copies of the choice of two of my books: either “Heroes at Home” or “Lean Body, Fat Wallet.”
Our high energy millennial emcee, Bethany Grace, kept the fun level high in the room and gave away quite a few gift cards and an IPad at the end of the events.

Bethany Grace, Ingrid Bruns and Ellie Kay at Laughlin AFB

One of the things that struck me about the men and women of JBSA was that they were part of a huge network of 11 units and billions of dollars of military assets, yet they had their own identity. This was evident in our tours of Lackland AFB, Fort Sam and Randolph AFB.
Next, we immediately dovetailed a trip to Laughlin AFB in Del Rio where I connected with my friend, Beth, whose husband flew the Stealth F117A with my husband a few years ago. She was instrumental in the kind of welcome we received there and I had the opportunity to speak to the military spouses the night before the main event.
As soon as we drove on to Del Rio, a buzz started traveling the base at warp speed and continued throughout the entire time we were there.

I loved seeing the flight line and hearing about the mission. The pride in the Airmen when we toured the Medical Facility, Fitness Center, and Altitude chamber was evident.

      When our four speakers are up on stage, presenting 20 minute segments of financial education, it’s a gratifying feeling to know that the audience is appreciative and eager to learn. But the greatest sense of all is the knowledge that these strangers in the audience are my tribe–my new friends and even my family. I love these military men and women and their families and my whole heart’s desire is to make their lives easier by helping them with their money matters. But I also leave them with the knowledge that they are loved and appreciated by America.

If every military audience gets one main message, I would want that to be:

We love you, we are so proud of you and together, we will be all right.

Ellie Kay

1 2 3