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EVERYDAY SPENDING
Reduce grocery bills with these simple tips
Frugality, smart choices can save a lot of money
Reducing grocery bills is a great and simple way to save money.
METRO NEWS SERVICE Expenses for the average household can pile up quickly. One of the easiest ways to keep a budget in check is to focus on how much is being spent on food. Chances are grocery bills can be reduced dramatically without upsetting daily routines. A 2012 Gallup poll found the average American family spends $151 a week on food. Cutting food costs often involves making smart choices. The following are some tips to help get started on the path to decreased food spending. • Make more meals at home. Although there are plenty of budget-friendly options at area restaurants, the average price for one meal enjoyed in a restaurant is still much more than the cost of cooking the same meal at home. Incorporate more home cooking into the mix and you can save. • Shop sales. Rather than planning meals on a whim, let sales guide what you eat each week. • Go mostly vegetarian. Meat tends to be more expensive than produce and grains. As a result, vegetarian-inspired meals provide an easy way for shoppers to trim their grocery bills. • Reduce ready-made options. Convenience costs money, so anything that is premade, prepackaged or already sliced and diced is bound to cost more per unit than the same items that have not been prepared. • Use a list. The experts at the financial site The
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Simple Dollar say that making a list of items needed before setting foot in the store is a great way to stop impulse buys that can foil a budget. Purchase only the items that are on your shopping list. • Consider a discount grocer. Many people get hung up on brand names. But remember, the advertising costs for making those names known in households are passed on to consumers. Discount grocers have
many high-quality comparable goods at a fraction of brand-name prices. Plus, shopping these grocers’ sale items helps you save even more. • Use leftovers. Don’t be wasteful with food. Practice portion control so you are not wasting food and consume leftovers before they spoil. Reducing grocery bills is a great and simple way to save money.
October 2019
| FINANCE MATTERS
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FINANCES OF TRANSPORTATION
Is there a ‘best time’ to buy or sell a vehicle? Turns out there is, and those who know it can profit by it
is a time of year when tax refunds are issued, and it is far enough away from the holidays to make big purchases more affordable.
When to buy
METRO NEWS SERVICE The automotive industry is big business. According to the Statista Research Department, roughly 79 million cars and light trucks are expected to be sold worldwide by the end of 2019. When buying or selling a vehicle, many people wonder if there is a particularly advantageous time to buy or sell. The best time to sell is not necessarily the best time to buy, which can present problems for vehicle owners who need to sell their current cars in order to afford new ones. Industry insiders offer their input on key times to move vehicles.
When to sell
Cars depreciate quite a bit the moment they move off of the lot. Most lose upwards of 20 percent of their value within the first year, according to Edmunds, a leading automotive information company and pricing index. Certain things contribute to depreciation, including mileage, type of
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Certain times of the year may be more favorable for buying or selling vehicles. driving and whether the car was maintained or not. Sometimes the best times for a person to sell are when it no longer is financially prudent to keep the vehicle. For some, this may mean when the bumper-to-bumper warranty expires or if mileage starts to tick
up, adversely affecting resale value. The time of year to sell that is most favorable is between the months of March through August, offers U.S. News and World Report. When temperatures start to climb, people begin thinking about warm weather and getting outdoors. This
Kelley Blue Book says that most dealerships do their biggest “wheeling and dealing” toward the end of the calendar year. November and December are some of their most profitable months, and consumers who are able to budget for a new vehicle at this time of year can get great prices. Dealers want to carry over as little inventory as possible into the new year, so some are motivated to negotiate more on the current year models, enabling them to make room for new inventory and meet existing sales projections. The financial resource Bankrate says the day of the week one chooses to buy also may be something to consider. Monday, Tuesday and Wednesday are slow days at many dealerships, which may make negotiating a deal easier. Shopping holiday sales, such as those on Black Friday or New Year’s Eve, also can help consumers earn better deals. Timing is everything in the vehicle market. Learn the best times to buy or sell a vehicle and reap the rewards.
YOUNG PEOPLE AND MONEY
There are pros and cons to paying allowances to kids They can teach children about the value of work
Allowances can provide foundations for parents to teach kids about working for a living. Kids are able to grasp the concept that money doesn’t come without hard work.
METRO NEWS SERVICE Parents can employ various strategies, including assigning chores, to instill a sense of responsibility in their children. The natural segue from chores is to offer compensation for the jobs that children are doing. Allowances can provide foundations for parents to teach kids about working for a living. Kids are able to grasp the concept that money doesn’t come without hard work. Also, allowances paint the picture that one’s financial resources are commensurate with the effort he or she puts in. Giving allowances also can help teach children how to manage money, plan ahead and make spending choices about what’s most
Metro News Service important, according to the parenting guide Raise Smart Kids. Allowances can be tough to figure out. For example, parents may not know how to determine the rate and frequency of payouts. According to Lewis Mandell, a former dean of business at the State
University of New York at Buffalo, giving a child an allowance, especially a regular, unconditional allowance that the child can depend on, isn’t the right way to approach allowances. Children may begin to view this allowance as an entitlement. In fact,
Mandell’s research on teens in the United States, Canada, Europe and Australia found, without exception, that teens who received a regular unconditional allowance had diminished financial literacy, lower levels of motivation and an increased aversion to work. But when handled properly, allowances can be important tools. Here are some additional benefits to allowances. • Allowances can provide incentive to get chores done. • Allowances can motivate students to work hard at school. • Allowances can include a required portion to be donated, teaching kids the importance of being charitable. Learning the correlation between work and compensation is a lesson that starts in childhood. Allowances can be an important part of kids’ early financial education.
BORROWING MONEY
Knowledge impacts one’s financial future
A strong credit history and score is vital to personal finance. The steps people take concerning their finances can greatly affect their credit.
METRO NEWS SERVICE Credit is defined as a customer obtaining services or products before payment with the trust that payment will be made in the future. Credit affords people purchasing power they would not have if they had to pay for something outright at the time of checkout. In addition, credit enables men and women to finance expensive automobiles, buy homes or furnish those homes, contributing much to the foundation of a strong economy. A strong credit history and score is vital to personal finance. The steps people take concerning their finances can greatly affect their credit. Identifying the behaviors that may be detrimental and those that are beneficial can help customers re-evaluate their habits and improve their creditworthiness in the eyes of lenders.
recover from late payments. Failure to recognize late or missed payments may result in bankruptcy or tax liens, which are a heavy black mark on credit.
The financial advisement resource Credit Karma says one of the most important factors affecting credit scoring is payment history. Having a long history of making payments on time is essential for a strong credit score. Missed payments and a reputation for paying late can drive ratings down. It can take some time to
Credit utilization refers to the amount of credit you have available, based on credit card limits, compared to the amount of credit you’re actually using by way of the balances on credit cards, advises the credit tracking company Experian. Lenders prefer to see ratios of around 30 percent or less. To calculate credit utilization rate, divide
Payment history
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Credit utilization rate
your credit card balance by your credit limit. So if your balance is $600 and your limit is $1,000, that’s a utilization rate of 60 percent.
Number of accounts
The number of open accounts you have affects your credit score. Scoring models often look back and consider how many accounts are open and if there are any outstanding balances.
Length of credit history
The length of your credit history is another factor that affects your score, according to Investopedia. Credit scoring takes into account
the age of your oldest account, if you’ve used that account recently, as well as the average age of all your accounts, including the newest. Closed accounts can stay on your credit report for up to 10 years, but when an account closes, this will affect your credit history average. Credit scoring rubrics will determine just how the ratio of new to old accounts and frequency of use will impact your score. Credit scores are important. Understanding them further can help people secure their financial futures.
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FINANCE MATTERS | October 2019
What affects credit scores? Things to consider
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October 2019
| FINANCE MATTERS
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HOUSING AND FINANCES
What to consider when picking mortgage lenders Reputation, fees, personal interaction are all important
buyers felt about a given lender. If possible, ask friends, family or colleagues who they worked with to secure a mortgage.
Fees
Fees vary from lender to lender. Fees should not be mistaken for interest rates, which change daily and are typically dictated by the financial industry and prospective buyers’ credit history and financial standing. When speaking with potential lenders, ask for a rundown of their fees, and the services those fees include, and closing cost estimates in writing, then compare and contrast fees and costs of various lenders before making a final decision. Some lenders may charge considerably more in fees than others, so buyers should put in the effort necessary to comparison shop.
METRO NEWS SERVICE A home is the most significant purchase many people will ever make. Perhaps because of that, many buyers, particularly those purchasing a home for the first time, are understandably nervous about the home-buying process. The decision regarding which home to buy warrants ample consideration, but so, too, does the buyers’ choice of lender. Mortgage lenders can be found all over the internet, and the sheer volume of lender options can make it hard for home buyers to find the right fit for them. Couple that with lending-related terminology that many first-time buyers may be unfamiliar with, and it’s easy to see why prospective homeowners can feel overwhelmed about the process of borrowing money to buy their homes. When looking for a mortgage lender, prospective homeowners should never forget that the choice of lender is, in most cases, entirely theirs to make. When making that decision, a host of variables should be considered. The following are three such factors that, upon ample consideration, may help buyers rest easy knowing they did their due diligence
Personal interaction
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When looking for a mortgage lender, prospective homeowners should never forget that the choice of lender is, in most cases, entirely theirs to make. when looking for lenders.
Reputation and recommendations
Just like other businesses, lenders have reputations, and oftentimes those reputations can be determined via some simple online research. Peruse online reviews to determine what past
Buyers, especially those who have never before purchased a home, will likely have lots of questions. This is where personal interaction with a prospective lender should be noted. Securing financing for a home purchase can sometimes seem like an impersonal process, but it doesn’t have to be, and many lenders are happy to answer buyers’ questions. Lenders who answer questions quickly and clearly can make buyers more comfortable about the home buying process. Buyers may want to avoid lenders who seem evasive or unwilling to answer questions in writing.
FINANCIAL FUTURE
Female graduates can expect to earn more in certain areas METRO NEWS SERVICE Choosing a college major is an important decision that many students delay making until their sophomore or even junior years. Only after taking a few courses and uncovering one’s interests do some college students figure out what they want to do with their lives. Each student is different, and while some may pursue a degree based on a particular passion, others may choose majors that can lead to high-paying jobs. While men often lean toward majors like engineering and computer science that have traditionally been linked to high earnings, women have historically gravitated to lower-paying specialties like education and social sciences. But in recent years a shift has occurred, and more women have
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In recent years a shift has occurred, and more women have begun to choose majors associated with higher post-graduate salaries. begun to choose majors associated with higher post-graduate salaries. Reports from the career guidance site Glassdoor analyzed how much male and female professionals with
SHOPPING AND MONEY
Organize those shopping receipts METRO NEWS SERVICE The season of giving is approaching, and with it comes frequent trips to stores and more time spent shopping online in the name of finding those perfect gifts for friends and family. With purchases come receipts, and it can be easy to lose track of receipts as the holiday season hits full swing. While keeping track of receipts is important for small business owners and entrepreneurs, it’s equally essential for anyone trying to maintain and keep a budget. Receipts are also key around the holidays because they help facilitate the return or exchange of gifts that may not be the right fit. There are various ways to organize receipts, says the financial resource Tough Nickel, and some methods depend on the person doing the shopping. Here are some ways to conquer receipt clutter. • Say “Yes” when asked “Receipt in the bag?” When making purchases, have the receipt placed in the bag. This makes it easier to match purchases and receipts and decreases
the chances that the receipt will vanish at the bottom of purses or pockets. • Attach the receipt to the item. Consider taping or using a paper clip to attach a receipt to the price tag when buying personal items. This way, if you choose to return the item, the receipt is right there. • Opt for gift receipts. Gift receipts are handy to have for gifted items. While everyone likes to believe they’ve found the perfect gift, presents may need to be returned. Ensure the recipient can get the full purchase price with the gift receipt. You can keep the original copy as backup if needed. • Use a coupon organizer. Coupon organizer pouches and envelopes can be divided by gift recipients, retailers or however you see fit. • Scan and save. Various apps and software enable you to transition hard copy receipts to digital files. Some may further categorize purchases so shoppers can keep track of their spending habits more easily. Getting a handle on receipts can make for a smooth season of giving.
the same college degree earned and identified many instances in which women went on to earn more than men in the first five years of their career.
They’ve identified several majors where female college graduates can earn as much or more than their male counterparts and find successful careers. • Architecture. • Pharmaceutical sciences. • Information sciences. • Chemical engineering. • Computer science. • Electrical engineering. • Mechanical engineering. • Computer engineering. • Business economics. • Civil engineering. • Sports management. Despite these findings, the college resource CollegeFactual and the U.S. Department of Education say that women remain likely to pursue education, design and applied arts, health services, and social work as career options. Female students unsure of which major they want to pursue can take career assessments to help narrow down their options. Working with mentors or engaging in internships also can present a first-hand idea of high-paying career paths.
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FINANCE MATTERS | October 2019
College majors that can lead to higher earnings
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ESTATE PLANNING
Things people should know about creating wills Attorneys help to get the job done correctly
Estate planning can be tricky, which is why many people turn to attorneys to get the job done right.
METRO NEWS SERVICE Drafting a last will and testament is an essential component of estate planning. Despite the importance of having a will, a recent survey from AARP found that two out of five Americans over the age of 45 do not have one. Putting wishes down on paper helps avoid unnecessary work and sometimes heartache upon the death of a loved one. Wills allow heirs to act with the decedent’s wishes in mind, and can ensure that assets and possessions will end up in the right hands. Estate planning can be tricky, which is why many people turn to attorneys to get the job done right. Attorneys who specialize in estate planning will no doubt discuss the following topics with their clients. • Assets owned: Make a list of known assets and figure out which assets are covered by the will and
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which will have to be passed on according to other estate laws, such as through joint tenancy on a deed or a living trust. For example, life insurance policies or retirement plan proceeds will be distributed to your named beneficiaries. A will also can cover
other assets, such as photographs, clothing, cars and jewelry. • Guardianship: Parents’ wills should include a declaration of who they want to become guardians their underage children or dependents. • Pets: Some people prefer to use
their will to also dictate guardianship for their pets and to leave money or property to help care for those pets. However, pets do not have the legal capacity to own property, so one shouldn’t gift money directly to pets in a will. • Funeral instructions: Settling probate will not happen until after the funeral. Therefore, funeral wishes in a will often go unnoticed, states the legal advisement resource Find Law. • Executor: An executor is a trusted person who will carry out the terms of the will. This person should be willing to serve and be capable of executing the will. People who die without a valid will become intestate. This means the estate will be settled based on the laws of where that person lived, and a court-appointed administrator will serve in the capacity to transfer property. This administrator will be bound by laws and may make decisions that go against the decedent’s wishes. To avoid this outcome, a will and other estate planning documents are crucial.
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CHARITABLE GIVING
It’s important to ensure money will be used wisely METRO NEWS SERVICE Donations from private citizens are the lifeblood of many nonprofit organizations. Without donations from millions of well-intentioned individuals, many charities would not be able to fulfill their missions. When donating to charitable organizations, donors typically want to know their donations will make a difference. With a little pre-donation research and a few smart giving strategies, prospective donors can make sure their donations ultimately end up doing the most good. • Refine your online searches. The Federal Trade Commission recommends searching online for a cause you care about but adding certain terms to the search before choosing a charity. For example, if you’re passionate about helping the homeless, instead
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With a little pre-donation research and a few smart giving strategies, prospective donors can make sure their donations ultimately end up doing the most good. of entering “charities for the homeless” into the search engine, search for “highly rated charities for the homeless.” Such a search may uncover red flags about certain organizations and direct you to the
most reputable charity possible. • Vet a charity before donating. Transparency is important when choosing a charity. A charity should willingly share information such as how donation dollars are spent and
the programs that have been established to help it meet its mission. Such infor mation should be readily available on the organization’s website. The FTC recommends donors lear n how much of their donations will be used to provide direct support to the programs. The FTC also recommends being suspicious of charities that do not provide detailed information about their missions and programs. • Don’t go it alone. Vetting charities is important, but donors shouldn’t feel like they have to do all that legwork on their own. Various organizations, including Better Business Bureau Wise Giving Alliance, Charity Navigator and CharityWatch, exist to protect donors and ensure they give wisely. Local government regulators also may be able to provide information about charities to help donors avoid fraud. Charitable donations help millions of people every day. Donors can protect themselves and ensure their money is used wisely by doing their homework before giving to nonprofit organizations.
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Steps to take before making donations to charity
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