What’s in your house?
November 25, 2008
If you are facing any kind of a financial crisis, it’s clear you should look for a way to reduce your spending and increase your income.
Some people may have valuable items sitting in their homes and don’t even realize it.
CNN did a story about trash haulers who are making big bucks off of the wave of foreclosures. Many people leave their homes without taking their possessions, even very personal things like family photos. The banks left holding the properties have to clean them out.
It’s sad that people just leave everything behind. It’s also sad that they don’t look to see what they have in their homes that could help them through their financial bind.
The trash haulers interviewed in the CNN story said they have found valuable things left behind, including a painting appraised at $11,000!
I wonder if that homeowner even knew what they had. That’s a lot of money. Maybe it could have helped them to save their home, or provided them with some seed money to start over again.
Not all of us have valuable art sitting around in our homes, but if you’re experiencing financial difficulty, it couldn’t hurt to look around.
One of my family members discovered a set of silverware tucked away in a piece of furniture given to them by another family member. It turned out to be worth thousands. They don’t need the money right now, but it’s nice to know they have an insurance policy of sorts if they are ever in a situation where they need cash.
If you are looking for ways to pay off credit card debt or you’re facing the possibility of foreclosure — in addition to calling Advantage CCS for help — assess what you have in case you own something that could give you some financial help.
Why are grocery prices staying high?
November 21, 2008
I’ve long joked that it’s impossible to go to the grocery store and not spend $50. It seems to be the magic number.
Lately the magic number has risen a bit. During the summer months when gas prices were sky high it didn’t occur to me to really question the higher cost of groceries. After all, it costs money to transport those groceries to my local store, so it made sense that if the cost of gas was high that would be reflected in the cost of groceries.
Here’s the thing: Gas has dropped by about $1.70 a gallon. Prices in the grocery store haven’t dropped.
What’s going on?
MSN Money ran an article that explains why food prices are still high. It’s pretty complex and is based on several factors.
You can read the whole article here, but in short here’s why food prices haven’t fallen:
· Summer oil and fertilizer prices are still factored in to the cost of products.
· Contractual obligations between producers and providers (like oil providers).
· Speculation about prices in the industry.
It looks like it may be awhile before grocery prices really decline. In the meantime, keep planning your meals and shopping trips in advance, clipping coupons, watching for sales, and making some meat-free meals to keep your grocery bills as low as possible.
Do you have suggestions to reduce grocery costs? If so, please share them.
Do you talk about money with your children?
November 19, 2008
I’m curious about how many parents talk to their children about money. Do parents of young children talk about what money is and the difference between money and credit or ATM cards? Do parents of high schoolers talk to their teens about how much money they earn and how much household bills are? Do parents of adult children talk about investments and how much they have saved for retirement?
The New York Times published this article about how parents and adult children need to talk to one another about their financial situations. If you read the article followed by the comments made by many posters, it’s clearly a thorny topic.
I’ve always been surprised when I see people who hide their financial situation from their family members. This is because I grew up in a family where money was openly discussed. From the time that I was old enough to understand the concept of a salary and the expenses needed to keep a family going, I knew how much money my parents made. I went grocery shopping with my mom and saw how much the bi-weekly trips cost. Money discussions didn’t dominate life, but they weren’t hidden from my brothers and me either.
As I result, I grew up with no delusions about money. I had reasonable expectations about how much money I would earn and what I could do with that money. I certainly haven’t been perfect in my financial decision making, but I haven’t gotten myself into trouble either.
Recently a teenage cousin in my extended family asked his father how much money he made. The response was basically of the “It’s none of your business” variety. I pointed out to my cousin that it wasn’t an appropriate question to ask in a group of people. The response from the father was that he wouldn’t have answered the question even if they had been alone.
I disagree with that response. (I should note that I kept my opinion to myself at the time because I didn’t want to start a family fight and what happens in their family is their business.) For the purpose of our readers I would like to explain why I disagree.
This is just my personal take on talking to teens about salaries. Often times teenagers don’t understand the cost of things. If a teenager doesn’t know how much money his parents make, he probably doesn’t know what the house or car payments are or how much property taxes are or the cost of utilities.
This is how young people grow up and end up living beyond their means. They have no concept of what it costs to run a house and try to live at the same standard as their parents.
It could very well be that a teenager thinks that his parents earn $60,000 and if he gets a job that pays that much he can have what his parents have. In reality, the parents could be earning double or triple that amount.
It’s up to parents to set a good financial example for their children. I think it’s good to be upfront and let your children know where the family stands financially. If you start talking to your children about the basics of money at a very young age, it will be easier to continue those talks as they get older.
Hopefully it will give your children a good perspective on money when they become adults.
What are your thoughts on this topic? Do you discuss money with your children? If so, why? If not, why not?
A gift-less Christmas story
November 17, 2008
Instead of offering direct advice or tips, today I just want to share a story from my weekend that I think provides a great perspective on Christmas and gift buying. It seems like an appropriate story with the official start of the Christmas season just over a week away.
I was getting my hair cut Saturday. My stylist, Barb, and I were talking about the upcoming holidays. Both of us were saying how we intended to scale back on the gift buying this season.
I mentioned how my 4-year-old nephew — an only child, only grandchild, only nephew, etc. — has a crazy amount of toys. I told my nephew he has too many toys. He said, “Yea. Big people just buy them for me.”
Out of the mouths of babes … My nephew was so right. We (and by we, I mean me too) are buying him all of those toys. And what are we teaching him?
Barb said she tries to keep the Christmas gifts under control with her sons.
“We didn’t get Christmas presents when I was kid,” Barb told me.
I was stunned. “Oh, come on,” I said. “Surely you got some gifts.”
“No. We didn’t get any Christmas presents. We didn’t believe in Santa,” Bard said.
She explained that her parents grew up in
“That’s so sad,” I said.
“No,” she said. “We loved Christmas.”
Barb explained that on Christmas Eve, her mother baked a birthday cake for Jesus. Then her family would go to midnight mass and drive around and look at all of the Christmas lights. After church they would come home and have dinner. On Christmas Day her mother made a big dinner and they spent time together as a family.
Barb said she never felt cheated by not getting presents and she always knew what Christmas was really about.
That story blew me away. It made me think about all of the stress we go through to find the perfect Christmas presents for people. It made me really think about all the money we spend on the holidays (and the debt many of us accumulate) and what we teach kids about Christmas.
My family likely isn’t going to give up on giving gifts. I do love to give presents. But, it certainly makes the idea of scaling back seem even more reasonable and doable.
After all, if kids can love Christmas without a single gift, surely we can still love Christmas with a few less gifts.
Need help with winter heating bills? You may qualify for LIHEAP
November 12, 2008
The cold weather is upon us and anyone who hasn’t yet turned on their heat is likely to do so in the upcoming days.
Most everyone is concerned about the cost of heating their homes. For some people the concern is far greater because they cannot afford to pay their heating bills.
Today in Pittsburgh, Dominion Gas, Columbia Gas of Pennsylvania and Equitable Gas joined together to kick off the LIHEAP program for 2008.
LIHEAP (Low-Income Home Energy Assistance Program) helps low-income families pay their heating bills.
Those who qualify for LIHEAP assistance can receive either a cash grant that is sent directly to your utility company or fuel provider or a crisis grant to help families who have an emergency and are in danger of being without heat.
The income guidelines have changed for the 2008-2009 program year, and you may be surprised at who can qualify.
Here are some of the income guidelines (based on a maximum yearly income):
1 person………….$23,110
2 people…….…$30,221
3 people………. $37,332
4 people………..$44,443
5 people………. $51,554
If you are struggling to pay your heating bills, don’t wait to call for help. You can apply for LIHEAP assistance online at www.compass.state.pa.us or by calling (866) 857-7095 or for the hearing impaired (800) 451-5886. You can also visit your local county assistance office for an application.
Here’s what you need to apply:
· Names of people in your household
· Dates of birth for all household members
· Social Security Numbers for all household members
· Proof of income for members of your household
· A recent heating bill
LIHEAP is already accepting applications. The program will remain open through March 31, 2009.
- SEARCH:
