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Why You Can Afford to Eat at Home
Tweet Share on Facebook February 29, 2008 Comment (31)My first reaction to the headline on a recent Christian Science Monitor article—"Is Eating Out Cheaper Than Cooking?"—was one word: no. It's hard to imagine how restaurant dining, with tips and often inflated food prices, could cost more than a home-cooked dinner. And yet the article suggests just that.
My second reaction was a sense of déjà vu. Back in 2002, the Wall Street Journal caught a lot of flak for defending the same point—that cooking at home can easily cost more than eating out. That article, "Why You Can't Afford to Eat at Home," cited $20 bottles of champagne vinegar and $10 mushrooms to make its argument. Add a new set of All-Clad cookware, and you're out $900 more.
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Audio: How to Be Polite at Work
Tweet Share on Facebook February 28, 2008 CommentHere's my interview on proper office etiquette with Judith Bowman, author of Don't Take the Last Donut. She explains how to handle awkward office conversations, what to wear to get ahead, and the kiss-vs.-handshake debate. You can also hear the Alpha Consumer tip of the week. Listen now or download
iTunes and 
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Change of Address? USPS Will Confirm
Tweet Share on Facebook February 27, 2008 Comment (26)After I wrote about identity fraud that is perpetrated through the U.S. Postal Service, a reader said his friend's angry ex-girlfriend changed his address without his knowledge. I found it hard to believe such a feat was possible. If fraudsters could change people's addresses at will, then it could cause all kinds of problems, including missed bills, identity fraud, and major headaches.
Luckily, it's not so easy to mess with the mail. I asked Doug Bem of the U.S. Postal Inspection Service to explain how address changes are monitored. His words should be reassuring to people with angry exes in their life. He says:
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The eBay Debate Continues
Tweet Share on Facebook February 26, 2008 Comment (14)Alpha Consumer readers recently debated eBay's new policies, which raise fees on items that sell but lower them for those that don't. Many readers, particularly high-volume sellers, expressed frustration and anger over the change.
I discussed the debate over the weekend on WTOP; you can listen here.
And if you are among those participating in the boycott and are looking for eBay alternatives, consider these three.
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Five-Star Rating for Credit Cards Under Fire
Tweet Share on Facebook February 25, 2008 Comment (3)This morning, I heard Sen. Ron Wyden, an Oregon Democrat, flesh out his and Sen. Barack Obama's proposal to create a five-star rating system for credit cards during a conference at the Center for American Progress Action Fund. If a card issuer changed its terms for unfair reasons, it would get a low rating, but if it gave consumers sufficient time to switch cards, it would get a higher one, he said. Wyden compared the concept to the five-star safety ratings for new cars, which he said created extra incentives for car makers to create safer cars.
But a few minutes later, Jonathan Orszag, senior managing director at the economic consultancy Compass Lexecon, criticized the concept on the grounds that consumers are a diverse group, and one person's five-star card might be a one-star to someone else.
I, too, have wondered how the rating system would reflect different consumer preferences and habits. For example, someone who pays off the balance each month should look for a card that offers rewards, while someone who carries a balance should simply go for the lowest interest rate. So what would the government—under Wyden's proposal, the Federal Reserve—rate a card with a high interest rate and no rewards?
Plus—to paraphrase Ralph Nader before he was a presidential candidate—for some debt-ridden consumers, credit cards will be unsafe at any rate.
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This Week, Celebrate Saving
Tweet Share on Facebook February 25, 2008 Comment (2)Today marks the launch of America Saves Week, a nationwide initiative designed to raise awareness about the importance of saving. To kick it off, the Consumer Federation of America and American Savings Education Council released a survey showing that— no surprise here—savings rates are closely tied to income levels, with households earning over $75,000 saving much more than those earning less than $35,000. Just over half of survey participants said they were saving at least 5 percent of their income.
The initiative's website offers videos, savings strategies, and success stories. Stephen Brobeck, executive director of CFA, says just developing a savings plan can go a long way toward helping people actually sock away more money.
• Check out this week's Carnival of Personal Finance for tips on online banking, navigating Costco, and saving.
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Amtrak's Service Glitch
Tweet Share on Facebook February 22, 2008 Comment (15)Last weekend, my friend Karen was robbed at gunpoint while traveling in New Haven, Conn. Her wallet, which included her Amtrak ticket home, was stolen, along with her credit cards and identification. When she called Amtrak to replace her ticket (she had her reservation number), she was told that it was impossible and that she would have to purchase a new ticket. When she explained that she had no cash or credit cards because her wallet had been stolen, the customer service representative rudely told her to call her parents and have them buy her a new one.
Karen's experience made me wonder: Why doesn't Amtrak offer the same kind of E-tickets as airlines? At the very least, why couldn't it cancel the old ticket and issue her a new one?
I called Karina Romero, Amtrak spokeswoman, to find out. She says Amtrak is simply unable to replace lost tickets. "Our tickets are like money," she says. "We can't reprint them like airlines can." When I told her about the "call your parents" comment, she acknowledged that it was inappropriate and said that Karen must have caught the customer service representative on a bad day.
Bad day or not, this level of customer service seems a bit lacking to me. Readers, have you had better (or worse) experiences with Amtrak?
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Postal Service Warns About ID Theft
Tweet Share on Facebook February 21, 2008 Comment (16)In a letter to its customers this week, the U.S. Postal Service warned about identity theft conducted via the mail. While the mail is related to only a small fraction—2 percent—of identity theft cases, John Potter, the postmaster general, says he wants to reduce that number to zero.
Tips for keeping your identity safe include shredding all financial documents before tossing them, leaving your Social Security number at home, and never giving out personal information through the mail to unfamiliar companies or people.
The Federal Trade Commission says that identity thefts sometimes occur when thieves fill out "change of address" forms for unsuspecting victims and then collect information from bills that arrive at the new address. If bills or credit card statements don't arrive on time, be sure to contact the companies sending them. You can find out more at the FTC website dedicated to stopping identity theft.
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Reporter’s Query: Credit Card Fees
Tweet Share on Facebook February 21, 2008 CommentReaders: Have you experienced an increase in your credit card fees or interest rates over the past several months? As we recently reported, some companies have been tightening their credit. We’re looking for consumers who have experienced this firsthand. If you’re willing to share your experience, please E-mail alphaconsumer@usnews.com.
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Readers' Awkward Money Questions
Tweet Share on Facebook February 20, 2008 Comment (2)After explaining how to deal with requests for money from family members and other financially awkward situations, Jeanne Fleming and Leonard Schwarz took on a new challenge: answering questions from U.S. News readers. The authors of Isn't It Their Turn to Pick Up the Check? were asked how to deal with casino winnings, child support, and alumni donations. A copy of their book went to—drumroll, please—the Alpha Consumer reader who asked how to deal with a sibling who was shunning his financial responsibility to his aging parents. Here are readers' questions and Fleming and Schwarz's answers:
• Casino winnings. Friends recently visited with us at our home in Las Vegas. After a night of gambling (and an unlucky streak), our friends ran out of money. As we were leaving the casino, they borrowed $10 from me to take a last fling on a slot machine. They immediately won a $15,000 jackpot. Following this windfall, they didn't offer to share the jackpot or even repay the $10 I gave them. Am I wrong in expecting a share of the winnings, since they never would have won the money without my loan?
