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4 Ways You Could Be Putting Your Savings at Risk
Tweet Share on Facebook May 31, 2012 Comment (3)Sometimes we think we're doing our finances well when those money-saving behaviors are really compromising the security of our savings. Sure, you know that following a budget and regularly depositing money into a savings account will build up a nice buffer in case you fall on hard times, but are you also doing things that could potentially put a big hole in that safety net?
Below are some of the behaviors that might appear to be beneficial to your bank account at first glance, but are really setting it up for a big loss:
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10 Ways to Avoid Airline Fees
Tweet Share on Facebook May 31, 2012 Comment (6)According to the U.S. Bureau of Transportation Statistics, annual U.S. baggage fees and ticket cancellation and change fees continue to generate roughly $3.4 billion and $2.4 billion, respectively, for U.S. airlines. Despite this consistent stream of revenue, the airlines continue to charge travelers more fees. Spirit Airlines and Allegiant Air, the most notorious airlines for charging fees, have only been rewarded for their strategy by investors in the public markets. Spirit’s stock price has increased more than 75 percent over the last year, while Allegiant’s stock has grown more than 40 percent. In contrast, Southwest and JetBlue, who have maintained their free carry-on bag and free first checked bag policies, have both experienced approximately 20 percent declines in their stock prices over the same time period.
The bottom line: U.S. airlines are only incentivized to charge travelers more fees. Airline fees aren’t going away any time soon. To avoid paying hundreds of dollars in fees (on top of rising airfare costs), travelers should be aware of the various types of airline fees, the varying fees by airline, and the range of fee terms.
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5 Reasons Community Colleges Make Sense Right Now
Tweet Share on Facebook May 30, 2012 Comment (23)Whether you’re a parent or a high school student researching college options, community college should be high on the list. With higher education rising to exorbitant levels in the past few years, many students are mortgaging their futures to pay for degrees that may not be worth the investment. Yet despite alarming trends in the student loan debt arena, the competition is as fierce as ever for a seat at top schools. Cost seems to be a secondary consideration at this point, which is all the more reason you should consider a community college and sit out on the degree hunter’s bidding war.
As someone who went to a four-year university right out of high school, I can tell you now that I wish I had gone to a junior college first. The decision would have provided an easier transition right out of high school and made much more sense financially. And that was before tuition skyrocketed to where it is today.
Since hindsight is 20/20, hopefully young readers and parents will benefit from my experiences. Here are some reasons why community college makes more sense than attending a four-year college at the moment:
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11 Easy Ways to Slash Travel Costs
Tweet Share on Facebook May 29, 2012 Comment (5)Traveling on a budget doesn’t mean you have to compromise on comfortable accommodations and decent flight times. In fact, savvy travelers already know how to maximize their travel budget and take advantage of low prices on travel packages, airline tickets, and other travel-related expenses. Planning ahead will usually give you the upper hand when it comes to playing the vacation-booking game, and there are several tricks and tactics you can use to slash those costs even further. Whether you’re dreaming of a trip to the Bahamas or looking to book an overseas adventure, make sure you’re aware of all of the different deals, discounts, and specials available to your destination of choice.
Here are 11 tips to help you slash travel costs with ease:
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Can the Government Demystify Prepaid Cards?
Tweet Share on Facebook May 25, 2012 Comment (3)This week the Consumer Financial Protection Bureau took aim at prepaid debit cards. Called general purpose reloadable cards (GPR for short), or more commonly prepaid debit cards, GPRs work very much like more traditional bank debit cards. But as the CFPB described, there are some important differences.
These differences have led the CFPB to begin considering new regulations for the prepaid card industry. These regulations could have a significant impact on consumers, particularly given the growth in the prepaid market. According to the CFPB, in 2007 consumers loaded $12 billion onto prepaid cards. Last year the number had grown to more than $57 billion.
For those that have an interest in prepaid cards, the CFPB wants your opinion. In a release this week the CFPB is asking consumers a series of questions that ultimately may help shape future regulations. In short, it’s your opportunity to be heard.
The CFPB has asked for responses to questions that fall into one of three categories:
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Women are Better Than Men at Managing a Holiday Gift Budget
Tweet Share on Facebook May 24, 2012 Comment (2)Here is some more fuel for the battle of the sexes: When it comes to shopping for holiday gifts, men should look to women for some serious shopping advice.
The big news from National Retail Foundation’s Mother’s Day spending estimates was the massive scale of the average man’s gift budget. On average, men planned on spending $189.74 last Mother’s Day. Not only did men overspend the average shopper by $37.22, they exceeded the average woman’s budget by $72.32.
Unfortunately, the fact that men dramatically outspend women on holiday shopping isn’t just a Mother’s Day phenomenon. Any holiday where gifts are exchanged, men typically overspend women by large margins. Last Valentine’s Day, the average budget for men nearly doubled that of women.
As a guy, I wish I could say that massive holiday budgets are a result of male generosity and goodwill. However, differences in male and female consumer behavior offer the most reasonable explanation. When it comes to shopping, women know what behaviors will bring home the lowest prices and best deals.
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Can Freezing a Credit Card Hurt Your Score?
Tweet Share on Facebook May 24, 2012 Comment (1)Credit card companies try their hardest to offer the latest and greatest in rewards, cash back, and other incentives to get you to sign up. When you sign up for a new card, chances are it'll replace a credit card you're currently using. What are you supposed to do with this now-obsolete card? You could cancel it, but that can have a negative impact on your credit score, or you could just shelve it. Just put it in a safe place and stop using it. Some go as far as to freeze it in a block of ice so they aren't tempted to use it!
Years ago, before people started researching credit cards and credit scores, it wasn't common knowledge that canceling a credit card could hurt your credit score. Now that our understanding of the system has evolved, we know that it does. Will we, in a few more years of studying, realize that inactivity could be dangerous as well?
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The Death of the Certificate of Deposit: Will CD Rates Ever Rebound?
Tweet Share on Facebook May 23, 2012 Comment (3)Certificates of deposit, commonly known as CDs, were considered a goldmine by our parents and grandparents for the alluring CD rates once offered. Since their time, however, interest rates on CDs and other deposit accounts have caused the hype around CDs to almost seem like an old wives' tale.
However, the CD rates of yesteryear were no myth, as they put today's puny average rate of 0.50 percent APY (for a 6-month CD) to shame.
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The 5 Best Military Travel Deals
Tweet Share on Facebook May 22, 2012 Comment (6)To take advantage of Memorial Day weekend, the much-anticipated vacation period that kicks off the summer, many Americans are cutting back on entertainment spending, traveling locally, and hunting for travel deals.
Amidst this frantic budgeting and planning, it’s easy to forget that Memorial Day is a time to commemorate our nation’s military and its service to all Americans past, present, and future. To celebrate this holiday and show our appreciation to all who have served and continue to serve our nation, we tracked down the best military travel deals.
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5 New Money-Saving Websites You Haven't Heard Of
Tweet Share on Facebook May 21, 2012 Comment (6)When was the last time you wrote a paper check or searched for someone through the Yellow Pages? My guess is that it’s been quite a while. Fifty years ago, it would have been unimaginable to transfer money with a click of a button on mobile devices. But now, new apps, websites, and other technologies are helping us save money and become more and more efficient.
Here are five new sites to help you save money.
