A Financial Education Event
 

Mother’s Day and Working Mom’s – What Is Your Time Worth?

When I married my husband we had five babies in seven years and moved eleven times in thirteen years. I also had two stepdaughters for a total of 7 children to support. I left a nice job as a broker to have a more rewarding career as a SAHM (stay at home mom). One of the questions that I frequently heard was: “Do you work?”

“What do you mean do I work?” I would think even though I politely answered, “Yes, I work very hard as a stay at home mom.” Sometimes, an unsuspecting troglodyte would go on to say something totally thoughtless such as “Well, I meant do you really work. Do you have a job?”

I would bite my tongue until it bled….

What I wanted to say was, “What do you mean do I really work? I work a heck of a lot harder that you do, mister! I’m an accountant, a contract administrator, a chauffeur, a teacher, a nurse, a soccer mom, a stylist, a wife, and a chef! Plus ten other job specialties! I do all these things as a mom—I’M A CEO MOM, MISTER!”

They usually didn’t ask the same question twice.

These days, as a financial writer & speaker, the Founder of Heroes at Home, podcast co-host at The Money Millhouse, a Admissions Liaison Officer, —and a mom, I’ve talked with scores of spouses who work outside the home because of the status of our economy and by necessity–not choice.

Each year, Salary.com issues a report on what a mom’s time is really worth. According to this site, “Based on a survey of more than 40,000 mothers, Salary.com determined that the time mothers spend performing 10 typical job functions would equate to an annual salary of $112,962 for a stay-at-home mom.  That’s a lot of worth associated with this great job of motherhood!

What is your time worth? You can log into a calculator that tells you what you would be paid on the economy for all the work you do as a SAHM or as a mom who also works outside the home and inside the home!

How effective is the mom’s work outside the home? Does it pay to work in today’s economy with rising prices and a modest hourly wage? Many spouses who move frequently do not often have the luxury of annual pay raises at the same company. For example, let’s look at Jennifer.

Jennifer was an administrative assistant who needed to work outside the home to make ends meet. She made an average wage of $9.50 per hour and felt she contributed greatly to the family’s finances. She only had one child in day care, traveled a short distance to work, and paid no state income taxes. Then Jennifer attended one of my Living Rich for Less seminars and was challenged with the idea of “crunching the numbers.” She completed the “Working Mom’s Compensation Chart” and was shocked.

The amazing fact Jennifer discovered was, by working full time–she was making $3 per week! She didn’t realize how those extra pizza nights (because she was too tired to cook), and the trips to the beauty salon (to maintain a professional hairstyle), and all those lunches (away from home) added up! She realized she needed to make some dramatic adjustments. She decided there was a better use of her energy and quit her job outside the home.

But Jennifer didn’t stop there. She implemented some money savings strategies found on this blog and is making ends meet at home. She has less stress in her life and the freedom to contribute to her family’s financial needs through saving money and by launching her own homebased writing business. In her case, a penny saved was more than a penny earned.

For more info on how to  plan for  a new baby,

listen to The Money Millhouse  episode with Tonya Rapley  

Once you come up with a figure, ask the big question. Is my time, energy and effort worth ______ dollars a week? It may be worth it and that’s great for you if it’s your choice.

Whether you are a SAHM or a mom who works outside the home—you’re work is priceless in terms of all you do for your family and for others. You deserve a Happy Mother’s Day! Thanks for your hard work, you’re leaving a legacy through your children that will last for decades to come.

Ellie Kay

America’s Family Financial Expert (R)

Rent-To-Own: Is It Ever A Good Idea?

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You’ve moved into a new place, started a new job and you’re beginning another phase of your life. The only problem is that you don’t have enough furniture for the new place and you realize you’ll also need a washer/dryer.  Then, miraculously, an ad pops up on social media for a place where you can go get name brand appliances and choose from dozens of options on exactly the kind of furniture you need—all for only $21.99 a month! YEA!!!  You’re saved! After all, you have a good job, the monthly payments aren’t going to break you and you deserve to make your new place comfortable, right?

Wait a minute, not so fast.

Is rent-to-own the best option? The answer is:  it depends.

How Does Rent-to-Own Work?

Usually, you’re renting from a well known store, but, in most cases, you’ll have to sign a third party contract. I remember one time when we bought a refrigerator and my husband thought, “Let’s use someone else’s money at 0% interest.”  The only problem was the third party contract indicated that those 0% payments were only for a fixed introductory period, then there were three options. We could buy the item, continue making payments (at 200% APR interest) or return the item to end our lease. We bought it out early, so that we were in the clear and vowed to never buy into this kind of a contract without understanding the fine print first.

 

Rent-to-own also means that if you fall behind on the payments, the leasing company can repossess your leased item and you don’t get any money back. There may be cheaper ways to pay because even if you have bad credit the options of  layaway, sub-prime credit cards or  bad-credit personal loans, which run 36% APR are better than the 200% APR of many rent-to-own programs.

 

When Is Rent-to-Own A Good Idea?

 

Despite the typical APR rates north of 200% for this kind of contract, there may be some anomalies when this option is not a bad thing for your bottom line. In fact, there are some instances, when using a rent-to-own option make sense:

 

  • If the interest rate stays relatively low (less than 3%) during the entire leasing term, and the term is 24 months or less, then you aren’t losing much. But read the fine print.
  • If you believe you’ll have the money to buy the item outright at the end of the low, fixed rate introductory period, then it could be a good way to keep some money in a rainy day account while you save up for the buy out.
  • If you need to diversify your loans to improve your credit score, and you qualify for low interest, then this kind of financial contract could help your credit score. But since diversification of loans only represents 10% of your credit score, it’s not worth paying higher interest rates to diversify.
  • If you are only in a location for a short amount of time (our sons have military training at bases for anywhere from 3 months to 10 months), and your interest rate is low, you could rent and turn the item back in when you move. But make sure the contract allows you to do so. If you must move yourself and your company doesn’t pay for a move, then renting a truck and moving that furniture cross country could cost more than it’s worth.
  • If you have the good credit score amongst your roommates and you all need to get furniture for the main living areas, then you could work a deal where they use your credit (your contribution) and they pay their part of the monthly payments (their contribution). But make sure the interest rates are low for the entire contract and that you trust your roommates enough to make the payments to you (on time) so that you can make the payment. At the end of the lease, you keep the furniture. This option may be more of a hassle than it’s worth. But if you are cash strapped, it might be just what you need.

 

Before You Sign

Let’s say that you’ve decided that Rent-to-own is the route that will work best for your budget and lifestyle. Here is your checklist before you ink that contract, if any of these are not clear are it’s revealed that they are not to your advantage, then think twice about this option. Here’s the list:

  • What are the monthly payments (including all fees)?
  • When are the payments due?
  • What is the total cost to own this item (all payments, interest and fees)?
  • Who insures damaged or theft?
  • If you miss a payment, will it be automatically repossessed?
  • Is the item new or used?

After You Sign

 

Let’s say you already signed a contract before you read this blog. Or, you’ve followed all the advice shared and decide that the contract will be a good option for you. Take these steps to protect yourself:

 

  • Follow the money. Make sure you are keeping your payment records because some rental companies have had problems with giving their customers credit for payments made.
  • Pay on time. Since 35% of your credit score is your credit history, it’s crucial that you make your payments on time or even before they are due. If possible, set up the payments to transfer from your bank account so that you never miss a payment.
  • There’s a chance your debt might be sold to a debt collector Know your rights in this situation as the Fair Debt Collection Practices Act requires debt collectors from harassing customers, calling them excessively and using abusive or deceptive practices to collect on the debt. 

In the Kay family, we like to live a debt free life and will usually save up to buy furniture or appliances before we would go into debt. This isn’t always possible for American consumers, in which case it’s good to know the nuances of Rent-to-Own for you or those you care about.

What has been YOUR experience with Rent-to-Own?

Car Buying Do’s and Don’ts

Financial Readiness equals Military Readiness and whether you are a civilian or a service member, the number one financial mistake has to do with how you buy your vehicles. But if you’re smart, you can avoid this mistake and eventually drive your cars for free.

Our Heroes at Home Financial Event is in the midst of a tour where we are giving 25 presentations at 17 bases in 4 countries. In fact, you can contact us about whether we are coming to YOUR base later this year.

McConnell AFB Heroes at Home Financial Event. One of the main topics that is: What is the smart way to buy a vehicle?

Let me start by asking you the question we ask our audiences: How do you lose around $8000 in 8 seconds?

Did you get the answer yet?

The answer is: you drive your brand new car off the lot.

Yes, the average new vehicle will depreciate $8000 in the first year. Since most folks finance that new vehicle, it’s more like losing $10,000 in 8 seconds!

So WHY oh WHY do you continue to buy NEW?

Some folks answer, “for the warranty.” But if you bought the vehicle a year old, you could do two things to make up for that 12 months of warranty you lose over buying new:

  • Warranty Purchase – you could purchase an extended warranty, which (depending on the car you drive) is only $800 to $1500 per year. This is WAY LESS than the 8K–10K you are losing by buying new. Plus warranties are negotiable. When I had to renew the warranty on my Mercedes 280SLK, the dealership gave me their best price. Then I called USAA, telling them the best quote I got and they beat the price by $800. Plus, instead of the $200 deductible I had with the other quote, the USAA deductible was $0! I used that warranty at my local Mercedes dealership (world’s best service department) and paid $0 deducible and got the same excellent service that I normally get.
  • CPO or Certified Previously OwnedIf you get a vehicle with a CPO on it, then part of the deal is that the dealership extends the warranty a year and this is a full manufacturer’s warranty. Plus, there are more stringent inspection standards and additional roadside assistance. Once, I had a BAD salesperson who told me the car was CPO, “All our cars are CPO” she said, but she never presented me with CPO paperwork to sign at the deal’s closing. You guessed it, the vehicle was NOT CPO and she lied. Be sure you get CPO paperwork if you are told it is a genuine CPO. It costs the dealership anywhere from $800 to $2500 to CPO your vehicle, depending on the year, make and model. You HAVE TO sign CPO paperwork that is dated from BEFORE the date you buy the car or it’s not valid. Remember that asking a dealer to make a vehicle CPO is part of the negotiating process and this will increase the value of the deal anywhere from $1000 to $2500.

A couple years ago, I was on my way to Disneyland to meet another author friend and a careless driver made an unprotected left hand turn right into my vehicle (about 5 feet off the bumper). I had NO TIME to react or even take my foot off the brake. The fact that Mercedes are so well built and the fact God sent his angels to protect me are the only reasons I walked away from this terrible crash with only a few cuts and bruises.

This accident put me back in the market for a vehicle. So this time I decided to try USAA’s car buying service. Since we had an extra car at home, I could take my time to find the best deal. The car buying service told me the price, the discount, gave me free access to a CarFax report, showed me a chart of similar cars purchased in my area to indicate an average, good, or great deal, and more. I compared the prices I saw on the site to Kelley Blue Book and did all my research. Then I followed the same three steps we teach in our Heroes at Home Financial Events.

Step One: Negotiate Price First

Negotiate the price of the car at a dealership apart from the value of the trade-in. Tell the salesperson you want to determine the price of the car without the trade-in. The reason you want to do this is because salespeople will often give you far more for your trade than you expected—thus hooking you on the deal. However, this higher-value-for-the-trade-in shtick can be part of the technique they use to get you to purchase the car. If a higher value is given to the trade, then they will give a lower discount on the price of the vehicle, because all the discounting went into the value of the trade.

Step Two: Negotiate the Value of the Trade-In

Now that you’ve determined the price of the car, ask what the dealer will give you for your trade-in. Most likely, you will get more for your car if you sell it yourself. A little elbow grease and some top-notch detailing can net you hundreds of dollars more than a dealer can give you, if you can find a buyer. Some people (like military families) don’t always have the time to sell their car because of moving schedules and so forth. So if you are going to try to trade in your car, look up the value of your existing car at Kelley Blue Book or Edmunds, then print the page (or screen shot it), and bring it with you to the car lot to negotiate the price. Bottom line: try your best to gather enough facts beforehand so that you make a wise decision.

Step Three: Secure Your Own Financing

The F&I (finance and insurance office) is where the lion’s share of a dealership’s profit is made. In this office, you will have to navigate interest rates, payments, terms, additional services, and warranties. Unless you put miles on your car for business or you are purchasing a car that will cost a lot to repair (and you intend to keep it longer than the warranty lasts), extended warranties are usually not a good value. When it comes to vehicle financing, you can generally do better on interest by selecting your own creditor unless the manufacturer is offering a lower APR. Keep in mind that the .99% APR offers only go to the top 10% of those who are the FICO score elite, chances are good that you will not qualify. The credit life insurance that dealers offer is more expensive than raising your regular insurance premium by twenty thousand dollars to cover this expense. And don’t forget to research the price of insurance on your new car so you can afford both the payment and the insurance.

By following my own advice, I talked to my sales representative and I was able to:

  • Negotiate the best price on the vehicle.
  • Get the USAA discount added to the deal.
  • Get a car that had less than 3K miles on it.
  • Get CPO added to my vehicle.
  • Drive a vehicle that is now under warranty until 2022.
  • Get a like-new car that had only been in service officially for a mere three months.
  • Save $9K off the brand-new-plus-CPO price.
  • Pay cash for my car (stay tuned for next week’s blog on how to pay cash for cars).
  • Get the year, make, model and color of the car I wanted.
  • Walk away feeling good about the deal and the value I got.

When are you in the market to get a vehicle, which of these tips will you follow to get the best deal?

Ellie Kay

Valentines Day

 

Even after 30 years of marriage, Valentines Day is still consider a “high holy day” in the Kay house! If Bob ever lived in a world where he thought he could skip over the day in an effort to “save money” he would end up spending Valentines with Buddy, our mini schnauzer in his dog house! But you don’t have to spend a lot for your gift to mean a lot, here are some ideas that may help.

Is it OK to Scrimp on Valentine’s Day?

For Valentine’s Day, you might feel the need to pull out all the stops, but it’s not necessary. Sure, some people want to celebrate the holiday in a lavish way, but others prefer to go the low-key route. Whether you fit into these descriptions or fall somewhere in the middle, there are a romantic date ideas for Valentine’s Day or the weekend before that suit every budget.

The Least Expensive Way to Spend Feb 14th

After a home-cooked meal, snuggle up with your honey and enjoy a movie night on the cheap. Look for specials at Redbox and get a romantic dramedy plus an action movie to keep both of you happy. If you are an amazon prime member then you have access through your computer or TV to free movies that are not available for free to non-members. You may not even be aware of the freebies offered, so be sure to check them out.

Flower Power

When it comes to flowers, you usually get what you pay for and one way to cut costs is to hand deliver, this can save anywhere from $8 to $20. You could look at GrouponLiving Social for offers such as $20 for $40 worth of flowers with FTD.

One kind of fun option reminds me of one of my favorite romantic comedies, “Kate and Leopold” and that is to give flowers with specific meanings. Go to TheFlowerExpert.com to find out the meaning of different flowers. For example, red roses mean romantic love while a bouquet of mixed roses means “I don’t know my feelings about you yet, but I’m sending you roses anyway.” Carnations are a less expensive option and a red carnation conveys love pride, beauty and admiration. Daisys are also inexpensive and convey “loyal love.” A sunflower symbolizes pure thoughts. So you can select a cheaper flower if, and only if, you write a note explaining the meaning of the flower and why you chose it for your true love.

Dinner and a Show

Going out for dinner seems to be a Valentine’s Day mainstay and dinner for two can range anywhere from $20 to $200 or more. How to you have a nice meal without sending a signal to your mate that you want to spend as little as possible? After all, aren’t they worth a splurge on Valentine’s Day?

There are quite a few ways to save a lot in this area and still have a nice time together. Lunch or brunch can be half the price of dinner and you could go on the Sunday before the big day. In fact, some restaurants are offering prix fix menus for the weekend or entire Valentine week. Go to your favorite restaurant’s twitter or facebook page and see what specials they are offering to get the best value. Some of these values are only offered to social media friends.

You can also go to restaurant.com where gift certificates have gone on sale this week. You can get a $25 gift certificate for your favorite restaurant for as little as $6 by entering the coupon code found at RetailMeNot. Check community billboards at your local chamber of commerce website. For example, in our area, a local Greek center is offering a romantic, candlelight dinner for two with champagne, flowers, dinner and dancing for $50 a person. While this may not seem like a bargain at first, when you add up the cost of the individual items like the food, flowers, bottle of bubbly and a cover charge you would have to pay to dance, it’s an all inclusive deal that is sure to please. Plus, you can learn how to dance the Kalamatianos, a traditional Greek dance. Can you say, “My Big Fat Greek Wedding!”?

Great Dates that Double As A Great Gift

Right now, there are some great deals to be had at Travelzoo such as a quick, 2 night getaway on a $299 cruise, with an oceanview room. Bob and I took a cruise this way and really loved it. This week, there are also really nice hotels from Orlando to Seattle that range from $49 to $99 a night. Or, if you want to get up, up and away, there’s a $125 two hour helicopter ride featured.

Ellie Kay

America’s Family Financial Expert (R)

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.

Holiday Travel Hacks by Bethany Bayless

Ah, the Holidays—it’s the most wonderful time of the year! Also the most expensive—especially when you don’t live near your loved ones. Holiday travel can be awesome or awful. Here are a few tips that can help when it comes to booking your travel.

  1. Avoid Peak Days: Don’t travel on peak days. Guess what—Everyone is flying those days! They are by far the most expensive days to fly. For Christmas, those days are December 22, 23, and 24. For New Year, it is December 29 and January 2. Look at your schedule to see if you are able to tweak your travel days just a little to get the best price on flights.
  2. Travel Early or Late in the Day: Another thing to keep in mind is that the cheapest flights are generally the first and last flights of the day. Don’t be afraid to adjust your sleeping schedule just a bit by flying super early or super late. These are going to be the cheaper flights.
  3. Do your research: Use apps like Hopper to find the cheapest days to fly. They will even keep you alerted to when it comes time to buy at the cheapest rate. With Holiday travel, buying sooner rather than later is always advised.
  4. Shop Around: When it comes to flying, use those dates you got from Hopper and plug them into a site like skyscanner.com, or go directly to airlines sites. Southwest only posts on their website—so make sure you check Southwest for the prices they have on flights. Keep in mind, also, that though Southwest is not always the cheapest fare, your bags will always fly for free. That can make all the difference!
  5. Send Presents Ahead: If you can get away with it, don’t check a bag. We know the holidays mean lots of presents. Think ahead—use Amazon Prime to ship directly to the people receiving them or the house you will be staying in, or send them ahead of time. It will save you headaches when it comes to sweating your connections or losing your bags. It will save you time, and sometimes it can even save you money!

What are some of your favorite tips and ways to save money when it comes to Holiday Travel?

Bethany Bayless is a popular speaker, blogger and emcee. She worked in Europe for a non-profit organization before becoming the Director of Communications for the non-profit, Heroes at Home. Her work can be found at WanderlustforLess

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)

 

Before You Say “I Do” – Premarital Financial Counseling

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“Bye, bye!”  I smiled and waved from the front porch, Bob by my side, “Nice to meet you!”

Speaking like a ventriloquist, I continued to wave at my son and his girlfriend,

“I give It less than one week” I told my husband, “two weeks tops.”

Bob smiled, giving his very poor ventriloquist rendition, “I don’t know, she was, ah, very conversational.”

“Yeah,” we turned to walk back in, “and her favorite topic was herself!”

We had just entertained one of our sons and a girl he brought home to meet us. In our family, we are predisposed to like the significant others that our children bring home because our kids have very good judgement. Contrary to popular belief, we aren’t sitting on “no” when it comes to these friendships that could blossom into something more.

One week later, we got a call from our son letting us know that he and the girl were not going to work out.

“Yeah,” our son reported, “I realized that the only thing we had in common was that we both thought she was pretty.”

The Kay whammy had struck again.

“What is the Kay whammy?” you ask.  It’s pretty simple, when our kids bring a special person home to meet our family, they either stay together for life and get married. Or, they break up within two weeks.

We are an intense family and we tend to drive away the faint of heart. But we are also a loving, loud and loquacious family and that attracts the brave hearts.

When it comes to a spouse, our kids look for certain qualities and when they get serious, we ask for a credit report.

I’m kidding.

Not really.

Knowing your future mate’s money habits is a significant part of deciding if they are a “forever” friend or not. Since “money matters” is cited as the #1 reason for divorce in America, it’s important to be on the same page regarding this topic. So far, all of our kids have opted for premarital counseling before the big day and this counseling should include the topic of money management.

Here’s a quick list of the financial topics that should be covered before you say I do.

8 Topics to Cover in Financial Premarital Counseling

Your Family of Origin’s Financial Situation

How did your parents manage money? What did they teach you about money? Chances are good you may manage your finances the way that your family did and this may be different from your significant other’s point of view. Did your parents save, believe in tithing, pay cash for everything or did they live paycheck to paycheck? Hashing out the differences, finding the similarities and developing a new plan for you and your spouse will be topics you cover under this heading.

Your Spend Plan

Do you currently have a budget? Go over both of your current budgets. If you don’t have one, then that is also a discussion point. Decide on what a new budget will look like for you as a couple when you are married. There’s a great app I use called Mint that can be accessed and updated by both parties at any time. This is especially good for military families who are apart but want to keep track of mutual spending.

 Holidays, Birthdays and Vacations

How do you spend money on vacations and holidays? Some families spend so much on Christmas, that it takes until the following May to pay off that debt. Others never take a family vacation. Our family had a low-key Christmas where each child got three modest gifts so the emphasis could stay on the Christ child. Then we went all out on their birthdays where the child was so celebrated that it became a highlight of the year for them. All these different approaches will impact your budget and your relationship.

 Born Spender or Saver?

What is your money personality? You could take the Money Harmony Quiz to see whether you are a born hoarder, spender, money monk, avoider or amasser.  Bob was a born spender, I was a born saver and we made it work nonetheless. But it took a lot of discussion and an action plan to learn to live in harmony with an opposite type of money personality.

 One Checkbook or Two?

Are you each going to keep your own checking account or are you going to combine them? Who will pay for which bill? What about savings accounts and credit cards? Will those be combined or remain separate? Now is a good time to download my free Sixty Minute Money Workout to help you learn how to discuss this topic and others within a time frame that minimizes conflict and maximizes the work you are doing in this area.

 Your Credit History or Debt

You and your significant other need to bring your credit reports to a premarital financial counseling session. Depending on what is there, it may be a wee bit uncomfortable. I married into 40K of consumer debt I didn’t know about and it had a huge impact on our lives together. Your mate may not count student loan debt as debt and you may find out there is an 80K loan that will impact your marriage. You can get a copy of your credit report, once a year, for free at Annual Credit Report and get one for each of the three reporting bureaus at this site. You can also get a copy of your credit score (different from a report) at Credit.com where they will also tell you ways to improve your score. Be prepared to enter your social security number to get this information. Talk about these debts and discuss a repayment plan.

Long Term Financial Priorities

My adult daughter says that life is about investing in experiences, not things. Her priority is travel over a newer car or designer clothes. Her husband’s priorities are slightly different because he’s a born saver. They learned how to discuss these diverse perspectives by doing a Sixty Minute Money Workout so they can get on the same page.  Your mate may want to buy a house as soon as possible and would forgo vacations to make that happen. You may not care that much about home ownership but really want to go home for the holidays. It’s important to discuss topics like housing, retirement, vacation and other long term goals before you get married. I like to say that you can have it all, but not at the same time. Bob and I chose to put our kids in private schools rather than drive new cars. Today, our kids are done with school and we drive the newer cars. We just have to choose the timing on our purchases.

 

Who Does the Math?

Someone is going to need to balance the checkbook, pay the bills and set up the budget. Yes, you should set up your spend plan together, you can even pay the bills together, but that’s usually the exception rather than the norm. One of you may be predisposed to balancing the books better than the other. One of you may actually enjoy paying the bills. In our family, I’m the financial expert and my husband flies jets, so you would think I balance the checkbook. But I also know that my husband needs to be aware of the bottom line because he’s the born spender, so he keeps the books and I review the statements. There needs to be a check and balance. One person should not have absolute control over the couple’s money. Sometimes, he who controls the money controls the house. So it’s important that both partners have access so that there’s no abuse of power.

Which of these topics have you already discussed with your significant other? Which topics still need to be explored? Set a day, time and topic to talk about money with your mate and don’t forget to get the free Sixty Minute Money Workout download.

 

And Baby Makes Three – Ways to Save Bucks on Babies

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“Mama, can you ask Miss Natalya if I can hold the baby?” my 6’ 4” son asked with hopeful expectation.

Moments later, he was holding the pretty little three-month-old baby girl and smiling proudly, “now take my picture.”

Ever since he was a teenager, he absolutely loved babies. Holding them. Having his picture made with them. Then giving them back when they made the tell-tale popping sounds that let him know the infant was filling up her diaper.

Father and son

Fast forward ten years. Past his years as a midshipman at Annapolis, past his years as a graduate student at Stanford, past combat tours in Afghanistan and Iraq. Fast forward to the present. Now, this Marine is holding his newborn son, Robert Philip Kay, III.

 

“Why are you picking up the baby when he’s sleeping?” I watch my son cuddle his 4-day-old son, the infant’s tiny features pronounced next to his big father’s duplicate profile.

 

“Because I’m the dad and I can hold him whenever I want.” He holds him. He has his picture made with him. And when the tell-tale popping noises indicate little Robbie is filling his diaper, he’s suddenly changed. He goes from a boy who has never changed a diaper to a man who changes every single one his tiny son fills (and his namesake filled six of those bad boys in only 24 hours.)

I’m proud of my man child who grew up so quickly, met a beautiful mermaid, married her before she got away and made me a “Glam-ma” to a tiny human who has my Hispanic hair, my husband’s name, his mother’s nose and his father’s legacy.

My daughter in law is a precious asset to the Kay family and not surprisingly, she’s great with money. Here are eight new mom tips that come from her recent experience and my background as a mom of many.

8 Ways to Save Bucks on Babies

  • Amazon Baby Registry – Whether you have three baby showers or none, it’s smart to have a list of items you can use for baby. Even if friends and family don’t buy off the list, they can still mark it as “purchased” to minimize duplicates. Once everyone buys what they want, the new parents are entitled to a 10% off one order (wither 60 days before and up to 180 days after the baby’s arrival) and 15% off if you are an Amazon Prime Member. My DIL used this discount to buy eligible items off her registry that had not yet been purchased and she used Amazon gift cards, to further minimize their OOP expenses. Plus, she had $1000 worth of gifts purchased by friends and family, which scored her $100 worth of free diapers and wipes.
  • Return Duplicates Promptly – Get a store credit or exchange items for something else you can use right away. If you wait until after the baby arrives, you may not have the chance to get around to returning the items in a timely manner and you’ll lose out.
  • Don’t Open Those Diapers! – My first son, Daniel, weighed 11 pounds and was 24” long. He never wore newborn diapers. My last son, Joshua, was 10.5 pounds. He never wore newborn diapers. Even if you don’t give birth to a sumo wrestler, you still need to be careful on your timing in opening new bags/boxes of diapers. Once you open them, they can’t be returned for a larger size. This is especially true when you open a 180 count box from Exchanging a brand name diaper is easy at Walmart or Target, where you don’t need a receipt to get a larger size package. But not if they’re opened.
  • Calling All Freebies – I went out to Annapolis to nest before the baby arrived and it seemed like every day, my DIL was getting freebies delivered to her door—especially baby formula. She also got free toiletries, diapers, books and more from the hospital. Manufacturers of baby products and hospital auxiliary groups provide freebies for new moms. Look inside the baby bassinet cabinet in the hospital and you’ll probably find diapers, swaddling blankets, alcohol swabs, a nasal aspirator, disposable nipples for bottles, a thermometer, and more. These are valued at $30 to $40 and you can always use them.
  • Nurse if Possible – Not only will your baby get colostrum, that helps to fight infections and illnesses, but you’ll get valuable bonding time with your little one. It’s been estimated that nursing moms save $1400 in the first year over those who use formula. My DIL got reimbursed for a pump through Tri Care and other insurance plans cover the cost of a pump as well. Don’t take the one from the hospital because those (usually) aren’t free and nothing can ruin a peaceful day at home with your newborn than the breast pump Po Po at your door, asking why you stole an $800 breast pump.Don’t give away your sample formula either, 85% of nursing moms stop by the time their babies are 6 months old.
  • Free Advice – Many hospitals have a lactation expert who makes the rounds and helps new moms learn how to nurse a baby. When Anne, the lactation consultant came by to see my DIL, I learned a few things as well. Even after nursing 5 babies, I didn’t know that “infants are nocturnal beings.” Um, yeah. I should have figured that out. This service is free and can cost $200 if you pay a lactation advisor. Ask about free hotlines and even volunteer services that may pay for a home visit. Plus, check your insurance provider’s coverages as well.One of the nurses, Leslie, was helping my DIL and when she realized I had raised 5 infants, she pointed at me and said to my son and DIL, “You are blessed to have her in your life. She’s one of the greatest resources of knowledge you have at your disposal.” I loved Leslie, she was my favorite.
  • Double Duty Accessories – When you’re filling out a wish list, try to get items that have more than one function. Like a Graco pack n play that also has a changing table built in as well as a bassinet. We got my oldest son a crib that converted into a toddler bed for his son, Liam, and we bought the conversion kit when we bought the crib. These styles are new every 9 months and if you wait to buy the conversion kit when you need it (2 years or so), then it may no longer be available.
  • You Have Not Because You Ask Not – Be sure you ask the OB/GYN and the pediatrician for product samples. Not only will you discover whether you like the product before you purchase a full size, you may only need a little of it to get you through the crisis (we will not talk about nipple cream now.) Sign up for baby food company newsletters and coupon offers. Go to Gerber, Beechnut, Earthsbest, and Stonyfield to get these offers.

Three generations of Robert Philip Kay

Congratulations on your new baby. Whether you are the parent, grandparents, auntie, uncle or just a favorite friend—this is an exciting time for your entire family.

My husband and I are and thankful for our children and now our children’s children. We are often asked how we raised so many successful children, with success being measured as kids who are living their purpose and making the world a better place.

We usually answer this question with, “We tried to think of what was best for the child. I didn’t think about what I wanted to do, I thought about what was going to be the best option for my child.”

Gotta go check instastories for the latest baby video—until next time!

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