Winding Up With A Windfall

Unexpected expenses sure are stressful, aren’t they? But surprises can be nice! Sometimes we end up with a gift of money from a family member or a bonus from work.


It’s great to receive an unexpected windfall. But it’s also easy to fritter it away! The money we don’t expect is often the money we spend the fastest. We don’t budget for it, so we think it it’s ours, to do what we want! That means it can disappear pretty quick.


So if you find yourself with some extra cash, make it last!


Pay Down Any Extra Debt – If you’re carrying a big balance on your credit card, considering using your new wealth to pay that down. You’ll  save more money – and have more to spend – in the long run.


It Makes Sense To Save Some Cents – Be sure to save! You can always spend it later. But putting some or most of your windfall in savings means you’ll have time to think about what’s really important.


Don’t Forgot To Treat Yourself – Once you’ve been responsible, have some fun!  Figure out a reasonable amount of money, whether it’s ten dollars or a hundred, and use it for something enjoyable.

Buying A Car For Your Teen

The new school year is just a few months away, guys and gals! That means you might be shopping for more than just new school clothes.  If you have a teenager who just got their driver’s license, you might be thinking about getting them their first car.

Being the parent of a teen driver might be stressful – but it shouldn’t be a stress on your wallet. Before you hit the dealership with your child, consider the following tips.

• Get your teen involved. Not everyone has the budget to purchase a car for your child. That’s ok! Learning how to save for their first automobile is a great financial learning experience for a teenager. In fact, even if you can afford to buy them a car on your own, consider making them a part of that experience anyway by having them save for a down payment.
  
• Make sure the car suits the needs. How often will your teen be driving? Do they have a long commute to school, or do they travel on any poorly-maintained roads? Striking a balance between mileage and features will help keep the new car affordable.
  
• Safety matters. Whatever car you choose, it’s important to remember that teens have much higher rates of accidents. So choose a car that has good safety ratings, and then back this up with firm expectations about when and where they can drive.
  

Stay Cool With Electricity Costs

Wow! It sure is getting warmer around here. I’ve been running my air conditioning pretty much non-stop in my house. Of course, that means my electricity bill is a lot to handle!

From now on, I’m going to be smarter about my electricity costs. Why don’t you join me? Just follow these tips to keep your bills down and your savings up.

Don’t Overdo The AC – Here in Texas, you have to have your air conditioning on. But that doesn’t mean you need to be able to ice skate in your home! If you’re comfortable turning the thermometer up a few degrees, do it. You’ll save big on your electricity costs.

Save The Chores The Evening – We all need to wash dishes, dry our clothes, or vacuum around the house. But did you know that your electrical company might charge you less if you wait until the evening? Check out your provider’s website to see if you can save by saving chores for later.

The Little Things Matter. Do you have energy efficient window, or just better curtains? Doing things like drawing your curtains during the day or weatherproofing your home can keep you cool when the weather heats up. That means more savings in your pocket.

High Gas Prices? No Problem.

So Memorial Day has come and gone! I spent my weekend driving to a big family barbecue, and wow! Those gas prices sure were expensive.

You already pay big bucks for gas. But that you can still take control! Be a smart saver and follow these tips for creating a healthy summer budget.

Double Up And Drive – If you like your car, why not share it with a friend! Think about it – carpooling with one person every day cuts your commuting cost in half!  Plus, you get a little morning conversation, too!

Big Trips Mean Big Savings – Oh no! You forgot to pick up milk on the way home. Better head back out. And what about your dry cleaning? These little trips can add up, if you take them one at a time. Save up your errands for one big drive and you’ll save money.

Take Care Of Your Car - If your tire pressure is low or you haven’t changed an air filter since you drove off the lot, you might be hurting your mileage. Take care of your car and it will take care of you!

Keep Control Of Crazy College Costs

It’s getting pretty sunny out here lately! School is out and families are back together again, getting ready to survive the Texas heat. Whoa!

Of course, it’s not long before we start thinking about the start of the new school year. Older high school students might be thinking about college. Even the parents of younger children might be worrying about how much higher education costs.

College doesn’t have to be out of reach! Here are some things to think about for your child’s education.

Fill Out A FAFSA. Really! A FAFSA isn’t just fun to say! It’s the first step in getting federal help paying for college. It’s free, so it’s a great way to get starting holding down college costs.

Look For Scholarships In All The Right Places. You’d be surprised how many places offer scholarship! Talk to your financial aid office, or local organizations, business, or churches. There’s a lot out there.

Start Savings Early. Take advantage of things like 529 savings plans. You can start saving for college early, with possible tax benefits.

With tips like these, the only hard part of college will be the classes!

Get the Right Start With the Right Checking

Ok! So I bet you’ve been hard at work following all the tips we’ve shared over the past few months, haven’t you?


But now that you’re on your feet, you might be thinking: Now that I have some savings, how do I know I’m getting a good deal on my accounts? Is my financial partner a good one?


Picking a new bank or credit union doesn’t have to be scary! Just follow these tips.


Don’t Get Fee Syndrome: Wherever you go, you should know you’re getting a good deal! That means finding a place that doesn’t charge you an arm and a leg. Look for free accounts – they’re still out there!


Don’t Get Lost In The Crowd: Sure, the biggest banks might seem like they’re everywhere. But will they really care about you? Look at local institutions. They’re more likely to be able to be focused on you as a person.


Find The Right Fit: Have a lot of savings? Look for a good dividend rate or CD that helps you earn more. Use a debit card a lot? Find an account that gives you deals on debit card transactions. See, with the right account, everyone can be happy!


And remember – the mint makes it first. It’s up to us to make it last.

Budgeting For A Big Purchase

Hey there, everybody! If you’re like me, you’ve probably had to make a big purchase once, like when you bought your first house or first car. For a lot of us, those purchases were pretty stressful. But it doesn’t have to be that way! Whatever you’re thinking of buying, follow these tips:

• Save First. Borrow Later.
  Sure, you might have to take out a loan for that big buy. But that doesn’t mean you shouldn’t save! You can pay a lot less on those payments if you take the time to build up a down payment, first.
  
  
• Even The Big Stuff Gets Budgeted
  We all want the car or home of our dreams. But we should always pick one we can afford! Calculate exactly how much you’ll be able to spend each month. Then, shop in your price range. If something is too expensive, move on – or take more time to build up that down payment first.
  
  
• Shop Around. And That Means For Loans, Too!
  You wouldn’t buy the first car or home you see. You shouldn’t get any loan, either. Local credit unions can get you low rates on your purchase, and they can often have fewer fees as well!

Remember. The mint makes it first, but it’s up to us to make it last.

Budget Surprise! Now What Do You Do?

We sure like to talk about financial fitness. Starting a savings account, getting prepared, planning a budget. But sheesh! What do you do when something unexpected happens?

Sure, I hope all of my fans have enough savings to handle everything that life throws at them. But that doesn’t mean life can’t surprise you! Think about what you’d do if your car broke down or you had a big home repair.

Here’s a few tips on how to handle the unexpected and keep yourself financially fit:

• If you have the savings, use them: We’ve talked about saving up a six months of income for emergencies, if you can. Well, use it! Just be sure that it’s really an emergency, guys and gals. Wanting cool new sneakers doesn’t count.
• If you have to borrow, do it the right way: If you don’t have savings, that’s ok! But don’t rush out and put everything on a credit card. Think about home equity or personal loans with better rates. That means less money out of your pocket.
• Make sure you have a plan: Sit down and write out a new budget. How long will it take to pay off a loan? Is there anything you can give up to stay on track?

If you follow tips like these, even emergencies won’t push you off the path to financial fitness!

Stay Cool About Your Budget

Hey there, guys and gals! It’s sure getting warm around here. Everyone I talk to says the same thing: “I hope this summer is better than the last one!”

Of course, the warm weather doesn’t just heat up Texas. It also heats up our budget! Taking care of those air conditioning bills can take a bite out of our wallet.

Paying that electricity bill isn’t fun. But did you ever think about making it a learning experience for your kids!?
Sit down and talk to your children about the bills you pay. Do you pay rent or a mortgage? What about phone bills? An auto loan?

Letting them know about the types of things that go into a budget will help them be more prepared when they’re older.

Remember – the mint makes it first. It’s up to us to make it last.

Spring Planning

Hey there, everyone! It’s spring again, which means we can finally enjoy some warmer weather. But it’s also time when a lot of us parents start thinking about sending our kid to college.

Education has a lot to do with financial fitness. A college graduate will earn over a million dollars more over their lifetime. That’s a lot of money! So if your kid is interested in attending college, we want to help out.
Don’t worry!

Like all types of financial fitness, you can handle it. You just have to start small and take it one step at a time.

• Think about 529 Savings Plans or Coverdell IRAs – If your child is still young, then you’re doing great! You have plenty of time to save. Think about one of these savings options. They come with tax-benefits, too!
  
  
• Don’t forget the scholarships – You might be surprised how many are available. A school counselor can help you learn more.
  
  
• Financial aid can help, too – When your kid is ready, have them complete a Free Application for Federal Student aid. And talk to their college, too!
  

See? Anything is simple once you break it down. And remember – the mint makes it first. It’s up to us to make it last.

Family Saving

When you want to take your workout to the next level, many people get a trainer.  We get an expert to teach us the right way to do things.  Many times, even exercises we’ve been doing for a while could be made more effective by seeing someone demonstrate the “right way” to do it.

Teaching your children to save is no different.  Sometimes you just need to show them an example of saving so they can see how to do it. 

We’ve talked a lot about how the things your child can do to learn about financial fitness. But your habits matter, too! If you’re budgeting for a big trip or a large purchase, talk to them about it. Show them how you build your budget.

Talk about the things you’re giving to save quicker. Show them that you’re preparing lunch at home or passing up on that expensive cup of coffee. When your child sees you put in a little extra work to reach your goal, they’ll understand why you do it. They’ll see that making a financial plan and sticking to it can be rewarding.

Once they’ve seen the example, help them set their own goals.  They can open a first savings account.  Make sure it’s a free on, like Texas Trust’s Clubhouse account.  Let them watch their own savings build up until the day comes for them to make the purchase.  It will be a good exercise in savings that could stay with them for a lifetime.

Remember, the mint makes it first, but it’s up to us to make it last.
-Jainie-

Practice Makes Perfect

Little League is almost a rite of passage these days.  Watching your kids learns to throw, catch and work as a team is one of the most exciting experiences a parent can have.  But think about it! When you teach your child how to play ball, you don’t just send them out onto the field.  You take time to teach them the basics.

Learning about money isn’t all that different. We start with the little stuff, like a savings account or build a budget (Of course, you can find tips for that, too!). Then we take those lessons and put them to work.

So here’s something to practice this week. A few weeks ago, we talked about using chores to teach your kid about the value of a dollar. Now let’s take this one step further. For the next month, build a list of age appropriate chores for your child. Then give each one a dollar value. Making a bed could be worth 50 cents. Taking out the trash might be $1.

Now they can start working and see the value of their savings go up.

Why should we practice this? It’s simple. Someday your child will go out to get their first job. It’s a bit like playing their first little league game. If they aren’t prepared, it can be easy to fall into bad financial habits. They might build up debt or spend their paycheck too quickly. But if they’ve already practiced sound techniques for financial fitness, they’ll be prepared to succeed.

The mint makes it first, it’s up to us to make it last.
-Jainie-

Maintaining Financial Fitness

Getting fit can be fun, but if you’ve ever been injured, you know how much of a struggle exercise can be. You can’t even think about going for a jog if you’ve pulled a muscle or twisted your ankle!

Financial fitness is a lot like that. We all want to be financially fit, but sometimes we need to be financially healthy, first. That can mean taking a look at our debt and seeing if we can bring it into balance.

So here are a few simple steps to start taking control of any extra debt:

Step #1 – Build The Emergency Piggy Bank
Before you start paying down your debt, make sure you can avoid new debt, first! Set aside a little bit of money to make sure you can deal with an unexpected emergency.

Step #2 – It’s All About Interest!
A higher interest rate on a credit card or loan means you’re being charged more money. So always pick your highest interest card to pay off, first. Make your minimum payments on all the cards, then put anything extra to the one with the highest rate.

Step #3 – And repeat!
Once the first card is down, take all of that money (including the minimum payment your now saving!) and put it to the next card on the list. 

The Mint Makes It First, It’s Up To You To Make It Last
-Jainie

Your FICO Score Explained

In fitness, whether you’re counting calories, checking blood pressure, or managing your weight, numbers seem like they’re everywhere. Your FICO Score, also known as your “credit score” is a 3 digit number that sums up your entire credit history. It’s also the score financial institutions use when you apply for credit. A lot of websites out there offer a look at your credit score, but a “credit score” is not always your FICO.



The image above shows you why it’s so important to build the tradition of making your payments on time. Every 30, 60, and 90 days a payment is not made a ding hits your credit report and drags your score through the gutter. “Amounts owed” refers to all lines of credit, not just credit cards. However, keeping your credit cards at 30% of their available balance will be most beneficial to your FICO.

Your score will take into consideration all of the categories above, not just one or two. This means for some people, one area may be more important than for someone else with a different credit history. As the information in your credit report changes, so does the importance of any factor in determining your FICO score. Your best bet is to check websites like myfico.com to see your true FICO score. You can also visit annualcreditreport.com to receive a free credit report from all three credit bureaus once a year.

No matter what your financial fitness level may be, knowledge is power. Being aware of your position in the credit race will help you in being victorious!

The Mint Makes It First, It’s Up To You To Make It Last

-Jainie-

Lessons to Teach Your Kids About Finance Pt. 2

Hey there guys and gals! Last week Jainie covered some great lessons for getting parents pumped about teaching their children the wild and wonderful world of finance. This week I’d love to follow up and share even more valuable lessons you can teach your kids about money:

1. Teach them creating a budget. It doesn’t have to be complicated. The goal is teaching them to plan their spending. Make it simple, easy, and fun, that way they build the tradition now. It pays off huge as an adult.
   
2. Teach them to pay bills. If your teen-ager has a cell phone, include that in their monthly budget allowing them to pay the monthly bill. If they’re late, service is shut off.
   
3. Teach them about the dangers of debt. This is probably one for the older kids. You’ll need to discuss credit cards, loans, and avoiding pay day loans. If you break it down on paper, they’ll see how debt payments reduce their spending.
   
4. Teach them the value of earning money. They can start learning this lesson at a young age, by earning extra money (not from chores, as they need to learn to contribute to the household without expecting pay), but from extra projects, such as doing yard work or babysitting for the neighbors.
   
5. Teach them about impulse buying. Teach them to enforce a cool off period before making a purchase. This reduces the chances of making an impulse buy.

Teaching your kids these essentials will give them the tools they need to thrive. Teaching your kids financial fitness is a marathon and not a sprint. Take it slow, and learn from each other.

Have a Great Weekend
-Johnnie-

Lessons to Teach Your Kids About Finance

Talking to your kids about money is like being their financial fitness trainer. You help them to achieve the goals they want while teaching them core values they need in order to build financially fit traditions.

Here are some valuable lessons for the fitness trainer in you:

1. Give them control of money. Try taking a small amount of your monthly budget and giving them control over its spending. The results at first will probably be that they spend too much on frivolous things. But when they want other things, they will have to save.
2. Teach them to save for money goals. Once they surpass the impulse buying stage, they’ll want to buy something larger. Show them how long it would take if they saved a certain amount to reach their goal. Make it fun! Creating a chart or visual of their savings to show the progress goes a long way keeping them involved.
3. Teach them that reducing expenses makes goals come faster. Kids will quickly understand that spending less equals saving more. Reinforce this with a discussion about the decision they are making when they spend money.
4. Teach them how money makes money. Set longer term goals for your kid’s savings. If they reach those goals, reward them by depositing a small amount of cash to their savings. Compare it to interest, showing them how their money can work for them.

Next week, my Brother Johnnie will be sharing more tips in part two of “Lessons to Teach Your Kids about Finance.” Until then, have a great weekend and remember…

The Mint Makes It First, It’s up To You to Make It Last

-Jainie-

Grocery Savings

When you mention savings at the grocery store, most people think of the TV show Extreme Couponing. Simply put, extreme couponing is paying $200 for over $1,000 worth of groceries. While tempting, cutting coupons for hours a day isn’t for everyone. Here are some tips on building a better tradition without using up all the time:

Plan meals in advance
One of the easiest ways to plan a shopping list is to work backwards. Start by planning a few meals you and your family would like to have over the next several days, and then list the required ingredients for those meals.

Shop once a week
If you know this is your once-a-week visit to the grocery store you are more likely to plan and make a complete list so as to avoid a trip again later in the week.

Use coupons You don’t have to be an extreme coupon cutter to save $5 or $10 dollars a week. Over time the savings will add up. To avoid cutting coupons, use websites like retailmenot.com for quick savings.

Stay away from the inside of the storeUnless targeting something very specific. Stick to the perimeter of the store, for the most part, stocking up on meats and fish, dairy and produce. This keeps any of those tempting junk foods from jumping out at you.

Make it a game! Building the tradition of financial fitness doesn’t have to be a bore. Visit moneyfittips.com and share your tips on our forums.

The Mint Makes It First, It’s up To You to Make It Last,
-Jainie-

Friday Fit Tip: Impulse Buying

It’s easy to skip that Friday workout, or eat a little junk food. An occasional break or reward is not the end of the world. However, we often hurt ourselves and lose site of the traditions we were trying to build. Impulse buying is surprisingly similar. Here are some Friday Fit Tips for squashing the impulse bug:

Practice saying no to the kidsAs moms, we don't always have the luxury of being able to leave our kids with dad or a sitter while we shop. If you take your children with you, build a healthy tradition of self-control by saying “no” to their pleas of impulse buying. Letting your kids write the shopping list and find the items is a great way to keep it fun.

Food Shopping? Eat firstThere is a reason they put the deli and the bakery right by the door. Going hungry makes it easy to make irrational buying decisions. This includes picking up items you can unwrap and eat in the car. These items are usually more expensive than something you would eat at home.

Pay with cashWith cash, you have a running total of what you’re spending in real time. You are unable to spend more than the cash you have. Most people make better buying decisions when it comes to facing cash instead of plastic.

We often want what we can’t have. Set aside some cash in your budget for small impulse buys so you don’t have to chastise yourself. That way you get to reward yourself and build a great tradition all at the same time.

The Mint Makes It First, It’s Up To You To Make It Last

-Jainie-

Fit Spending in the New Year

Happy new year everyone! I hear a lot of people making New Year resolutions to cut back on spending and really hammer down on savings. It’s great to take that initiative, but I always stress that you can’t form a tradition overnight. You have to build it step by step. Here are a few steps to help you spend smart in the New Year:

Leave Some Room in Your Budget
Strict calorie diets aren’t for everyone, and neither are strict budgets. Consider developing a spending plan that uses ranges for each category instead of exact numbers, and aim to stay within the designated range.

Calculate Purchases in Terms of Hours Worked
When you're debating buying that $110 pair of shoes that you don't necessarily need, compare the price tag to the number of hours you worked to earn that sum. So, if you earn the equivalent of $11 an hour, ask yourself if it's worth ten hours of work.

Consider Going Cash Only on WeekendsIf your spending plan is plagued by weekends, consider restricting yourself to a certain amount of cash and leaving the cards at home.

Adopt a Cooling Off Period
Define a cooling off period to give yourself to think about an item, and if you still can't live without it after a few weeks it's no longer an impulse buy. Just make sure you save the money for it instead of putting it on credit.

Let’s work together to make 2012 the best yet. Join us in the forums to let us know your tips for spending smart and staying financially fit!

The Mint Makes It First, It’s Up To You To Make It Last

-Jainie-