How to be Frugal While Going to College Full-Time

If you are a full-time student in college, you will realize that you have to make your money stretch as far as you can. Even if you get financial aid, if you are not wise with your money, you may find out that you are  running out of food and other necessities before the semester ends.

The first thing you have to decide is if you are going to live in a dormitory or an apartment off-campus. When you live on-campus, most times your room comes with a bed, dresser, desk and utilities. A meal plan, in most cases is included in the room and board. While living off-campus is cheaper, there are some things that you have to consider. First of all, do you have to provide your own furniture? The second thing to consider is what utilities you have to pay for. For example, if you are going to be responsible for the electric bill, is it really more economical to live off-campus? A final thing to consider is food to keep you going. Are you going to purchase a meal plan or cook your own meals?

Each college is different with the meal plans. Some just have a dining hall that serve breakfast lunch and dinner. There are a different variety of meals that students needs. For example, one person may want to eat three meals a day. Others may go home on weekends. Then there are the ones who eat breakfast. Depending on the amount of meals a person eats during a day or a week, some plans cost more than others. Find the ones that meet your needs. You save money by not wasting it on days that you do not eat.

Other colleges offer a point system. You purchase a specific amount of points at the beginning of the semester. If you are living on-campus, there is usually a minimum that you must purchase. Then you can purchase  more points throughout the semester. Here is an example of how the point system works. The dining hall may charge 500 points for a meal. There may be a fast food place on-campus that also charges points. There also may be a grocery store. Think of these points as money. If you want to make the points last throughout the semester, find the cheapest places to eat. On most campuses, it is cheaper to eat at the main dining hall than to get a cheeseburger. Not only is it cheaper, you also get more to eat. Dining halls offer a buffet of a large variety of food.

If you decide to live off-campus and decide to do your own cooking instead of purchasing a meal plan, you do not have to buy a life supply of macaroni and cheese or ramen noodles. If you have access to the Internet, go to google.com and type in cheap, one person meals. You can find many recipes that include rice, noodles and pasta. Many of these ingredients can be used if you are planning on having leftovers.

Instead of buying name brand food, purchase the store brand. While it is cheaper, it also tastes the same.

While fast food restaurants, such as McDonalds are convenient, it also costs more than when you make your own hamburgers. Go once in a while as a reward for getting an A on your test. However, do not go every day. Not only will it hurt your wallet, you may become a victim of the Freshman Ten.

If you have a roommate, have him or her share the responsibility of the grocery shopping. You can also join a discount club such as Sam’s Club or Costco. You can buy food in bulk and still spend less on food than at a grocery store.

It is very popular to see students sitting at a Starbucks writing a paper while drinking a cappuccino. However, when they do this on a daily basis, this adds up. It is better to buy a coffee pot and make your own coffee.

Eat before you go to a grocery store. If you are hungry when you shop, you most likely will buy food based on want and not need.

Tap water is just as good and healthy as bottled water. It also is free.

Look through newspapers and fliers for coupons. Find out which stores have bargains on double coupons.

Make a shopping list before you go to the store. That way when you go, you only buy what you have listed and nothing else. This helps you from being temped in buying something that is not a necessity.

Determine if that purchase that you are about to make is a want or a need. While you may want to buy that cool new university jacket, the money you spend on it may be better spent on something you need, such as college textbooks. When you see something that you want to buy, but you do not need it, wait a few days before making the purchase. Chances are you will find out that you did not really want it.

Most college students can easily get a credit card. Just as easily, they can use up their available balance in on time at all. The main reason is people tend to forget to treat the plastic as cash. Therefore, it is  easy to make a purchase with a credit card and then forget about it until the credit card bill comes due.

If you do not have a job that provides a steady income, forget about applying for that credit card. If you use it, you will have to make a payment every month until you get the credit card paid off.

When you are shopping, it is best to use cash when you buy something. When you buy something using the credit card, you will be paying interest each month. That is how credit card companies make money. By the time you pay your credit card bill, you may be paying double of the cost of the product you bought.

Get a credit card that has a low credit limit. This will help you to budget your money and keep your monthly bills at the lowest possible. However, make sure you do not over-extend your credit limit. Credit card companies charge a high over-the-limit fee.

It is best to keep track of where your money goes. You may think that a dollar here and a couple there is a big deal. However, if you do not keep a record of where you shop and how much you spend at each place, you will be wondering where all your money disappeared. If you have a bank account, keep an accurate ledger of your deposits and withdrawals. You can also use a pocket notebook to keep track of your transactions.

Set up a budget. Make a list of all your monthly expenses such as tuition, room and board, groceries and household expenses. You can determine how much you can spend each week on entertainment, shopping and other unnecessary purchases.

If you must have that laptop or IPod, consider buying new ones. Just by going on EBay.com, you can find many neat gadgets at a fraction of the price.

Take advantage of flea markets in the area. You can find many bargains that cost well below the retail price. This is an excellent way to stretch your dollar. You can purchase at least double the amount of merchandise that you could have bought at the mall.

Going to the movies can put a dent in your wallet. Unless you have one of those hard-to-find two dollar theaters, you can easily pay twenty dollars to see the movie and buy popcorn and soda. It is better to invite friends for a movie night. Each person can make a contribution towards movie rentals, popcorn, soda and other refreshments.

When you start your summer vacation, you look forward to a two or three month break from your classes. You will have free time on your hands and look forward to catching up on things, pleasure reading, for example,  that you put aside to concentrate on your studies. However, think of a summer vacation as a time to make extra money. There are many places that hire strictly for the season.

Even when you are not attending classes, there are many part-time jobs that are available on campus. Some of them include academic office jobs, working in food service, sports events, bus drivers and tutors. Just make sure that you job does not interfere with your studies.

Look for a job that pays bi-weekly. You will be able to control your spending when you have to wait longer for a pay check. Also, if you work for a year, you will see at least two months where you will get three checks.
When you get your semester schedule, you may have a list of textbooks required for each class. Never buy new unless if you absolutely have to; textbooks nowadays can cost up to 0 per book. It is better to look around the campus bookstore and bulletin boards to see if a used copy is being sold. Also, check out the campus library. You can borrow the textbook and keep renewing it throughout the semester. However, the only downside of this is if somebody makes s a reservation for the book, you will not be able to renew it.

If your professor is using a new edition of the book, go to class before buying it. Some teachers may never use the book that is required. By finding out if he is not going to use a book, you will save money.

Even though there is a college bookstore where you can buy your supplies, such as notebooks and pens, check out off-campus stores. You will find excellent discounts at Family Dollar, Dollar General and K-Mart.

Take advantage of college loans. Sure, it means paying interest when you begin repaying the loans. However, you will not have to worry about making the tuition payments. Student loans may even give you some extra money each academic year. It also may, as long as you are wise with your spending, help you stretch your dollar further.

Do you actually need a car if you are going to college? Many freshmen may not be able to keep a car on campus because of limited parking. Even so, unless your parents buy the car and pay  the insurance, you will be making payments each month. Before you decide on purchasing a car, figure out if you really need one. There are many shuttle buses that will take you where you need to go. You will get free transportation instead of using gas. You also get plenty of exercise when you walk to classes than drive.

Pennies may not seem like much. However, they can add up over time. Every time you buy something, put the pennies ad other loose change in a jar. When the jar is full, bring it to the bank and put it in a savings account.

By following all these money tips, you will live a frugal college life.

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How to Save Money on College Books

If you are a college student, you are already aware of the fact that the cost for the books you need while you are in college can easily add up to really huge amounts. But buying college books does not need to be so expensive, if you are clever and plan your purchases, you can easily save money on college books, while still managing to read everything you need to know.

Here are some tips on how to get college books cheaper:

1.

Don’t buy all the books that you are recommended to buy.

Often professors recommend way too many books, and some of them won’t even be used, so always wait until the first day to see what the professor actually recommends then, before making any purchases.

2. See if you can find the books you need at the library.

College students often assume that the college books they need won’t be available at the library, but since a lot of college professors use very known books, that have been around for years, that doesn’t have to be the case. So always check your list with the library before you even consider buying anything yourself!

3. Rent the books.

Believe it or not, there are websites around today that offer college students the opportunity to rent their books online, and then return them after they are done with them. This is a great way to save money on a book you probably won’t read more than once anyway.

4. See if you can buy the books used.

Just like there are rental sites for college books online these days, there are also a lot of sites where you can buy used books for college. Most college students, who originally bought all the books they needed, do not really want to keep the books once they are done with them, and would happily sell them to you to make some extra cash. Amazon.com also has a big selection of used books, including some college books.

5. If all else fails, see if you can find the book in an electronic version. E-books are much cheaper than regular books, and since more people read their books digitally these days, the selection is getting bigger each day.

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Creating and Managing An Educational Savings Account

When it comes to your child’s education, you should be thinking about putting together the money they will need for college at birth.  College tuition is only going to go up over the next seventeen to eighteen years, and you want to have a plan in place to pay for your child’s education.  Here’s a simple option you can use to get started.

You can begin by opening an educational savings account.  You can deposit up to 00 annually per child into such an account.  This is a combined total, so any money from grandparents or other interested parties is placed in this account and cannot exceed 00 a year.  The money is not pre-tax, but it can be withdrawn tax-free as long as it is spent on educational expenses.

Educational expenses are determined to be books, fees, supplies, tuition, room and board, and anything directly associated with your child’s education as long as he or she is at least a part time student.

If, for some reason, all of the funds in the account are not used, you can have the account pay out to the beneficiary up to age thirty.  Penalties and taxes will attach to this accommodation.  Your other alternative, should you not use up all the educational funds, is to roll over the account to the next child coming of college age.

If you begin this sort of plan upon the birth of your child, you should realize more than enough growth from your investment to put your child through school and tap out the rest of the fund as a fine graduation present.  While the money you deposit into this type of fund is not tax- deductible, its growth is.  As long as the funds are all used for educational expenses, none of the profit your account realizes through investment is taxable.  This is a nice way to prepare for your child’s future.

There are credit card programs that pay bonuses into children’s college funds as a promotion and often companies and corporations will make donations into an employee’s child’s fund as well.  Anything you can do to help your child’s education fund grow now will be a savings and security for the future.

To help you gainfully secure that future, you might want to talk to a financial planner about preparing the way for your child’s college education.  It is never too early to start saving for your child’s future

You can secure the future of your children by providing finances for their college education.  If you go on building educational savings account, that will be a nice gift to your child.  Here are some steps to build it systematically provided by Chintamani Abhyankar.

How to Save Money and get stuff for FREE

I have been searching for ways to save a few dollars every which way for the past year. Here are a few money saving ideas that I have complied. I hope they help you out saving a few dollars.
1)FREE DIRECTORY ASSISTANCE:
Every time you dial 411 on your phone for directory assistance it can cost you a buck or two.
You can get free directory assistance by simply dialing 1-800-FREE-411 next time you need directory assistance. If you don’t mind listening to a short commercial, roughly 12 seconds, then this is a great way to save a few bucks every time you use the service.

3
FREE BOOKS, MUSIC & MOVIES

Still going to Blockbuster or renting pay per views? Check the library. They usually carry a nice selection of movies and cd’s.

If you haven’t been lately, find your library card and take a look. It’s your ticket to mounds of free books, magazines, CDs and movies.

Many libraries also have other free events like concerts, lectures, book readings, children story hours and community clubs to residents.

4
FREE PLACE TO STAY

Traveling? Consider trading spaces. There is something called hospitality exchange Web sites and they are growing in popularity.
There you can network to trade homes or apartments with others who wants to visit your town, or even take turns hosting each other.

Here are some sites:
CouchSurfing.com
HomeExchange.com
IntervacUS.com
HospitalityClub.com.

5
FREE COLLEGE SAVINGS

By using a website, UPROMISE.COM, you can turn your everyday spending into savings for your child’s college education.
Simply sign up online, and start earning cash rewards for eligible purchases. When you purchase groceries, gas, dining out, travel and online shopping. A portion of the purchase is automatically transferred to your child’s 529 account.

It adds up pretty quickly, a few cents here and a couple dollars there can add up fast.

There is also a way to have other family members and friends link their rewards to your Upromise account.

6
FREE DIET & FITNESS HELP

Trying to lose weight? Using Jenny Craig or Weight Watchers? Paying a hefty monthly fee?
Keeping your diet on track is easy, and can be free as well online. A website, FatSecret.com, you can create a personalized program. You can share it with the online community for moral support and feedback.
You also track your progress, keep a fitness journal and there are ways to research different diets and fitness regimens.

7
FREE KIDS MEALS

Looking for a place to go to dinner with the family. Why not look for a place where KIDS EAT FREE.
There is a website you can search for eateries in your area that offer free kids meals, KidsMealDeals.com.
For example: Kids eat free at Denny’s every Tuesday night with a paying adult.

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How to Use an Online Savings Account to Teach Kids About Money

Who knew that an online savings account could teach a child to make responsible money decision for the rest of his life. Follow these instructions to teach your child to form the habit of planning ahead to accomplish his or her goals.

Instructions

Step 1 The online savings account is not completely necessary, for this lesson, but if you decide to use one, you will also be bundling in a lesson about using a computer for financial transactions. First, sit down with your child and have a discussion to decide on a few things that he values in his life. I suggest guiding the discussion towards three broad categories, 1)day to day happiness; 2) a richer happiness that comes from planing and saving for bigger goals (like college); and 3)a sense of obligation to the community.
Step 2 After settling on these goals, help him to set up an online savings account for each goal, and name the accounts accordingly. Most banks will let your child set up a junior savings account with you as the co-owner of the account. This would also be a good time to talk about the power of monthly interest payments and compound interest!
Step 3 Have a discussion with your child about how much he values each of the three categories, talk in percents or use a pie chart. Again, I suggest guiding the conversation so that your child lands somewhere in the neighborhood of 50% in category 1, 40% in category 2, and 10% in category 3. Now you can tell your child that your are proud of his decision making and that you are going to raise his allowance to (or whatever you decide). This way, each week, you can sit down with your child and help him divide the money: for spending money, to savings, and to charity account.
Step 4 This online savings account lesson makes saving and charitable giving into a habit for your child and will enable them to make these difficult decision more easily throughout their entire life. It’s also a fun activity that you can enjoy together with your child!

Tips & Warnings
As I mentioned at the beginning, this lesson doesn’t require an online banking account; when I was a boy, my father did this activity with me using three envelopes (one for each “account”), which we stored in a cabinet above the refrigerator.
I just, use the 50%, 40%, and 10% as examples, you and your child might decide to value your priorities differently.
Once your child has enough money in his charity fund, you can help him make a donation to the charity of his choice.

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College Graduates – Personal Finance Advice

Any personal finance mistakes you make in the first few years after leaving college could have a continuing effect that may last for years.  These include having the personal finance to buy a car, a home or even get that career job. 

For most new graduates, the most important personal finance advice is to make good common sense decisions.  These include paying your bills on time, not spending more than you make and be sure to put money regularly into a savings account for those rainy days.  However, the current crop of new college graduates will have the opportunity to some personal finance advantages that many of their predecessors did not.  Here are a few personal finance advantages that the new college graduate can begin to use in their beginning years:

New College Grads Personal Finance and Health Insurance:   Until recently, when a college student finally graduated they were kicked off their parent’s policies.  For those who didn’t immediately have a job to fall back on, that could end up being very expensive.  However, new federal law says that a college graduate can be covered on their parent’s policy up until the age of 26, even if they are not attending school.  If the college graduate does not have a parent to fall back on, then they should look into short-term health insurance coverage.  Not having some kind of health insurance coverage could be a mistake.  One accident or serious illness could end up running a huge bill and place the college graduate in a debt hole that maybe hard to climb out.

New College Grads Personal Finance and Education Debt:   The first payments on federal student loans are due six to nine months after graduation.  For those college graduates who may not have a great paying job right out of school, there maybe an alternative.  To save your personal finance from ruin, the government is issuing an income based repayment plan.  This plan is based on the discretionary income of the college graduate.  However, if you do decide to participate in this plan, the lower payment will extend the life of the loan.  To protect your personal finance reputation, be sure to make your payments on time.

New College Grads Personal Finance and Credit Cards:   Of all the personal finance problems that a new college graduate faces, credit card management is at the top.  The new Credit Card Act passed by Congress has given many consumers some breathing room, but a lack of common sense can get a college graduate in trouble.  Make use of credit card information sites that give comparisons on credit cards.  Try to keep all your charges to no more than 35% of your credit limit.  The lower your balance is kept, the better your credit score.  As credit is tight, a good credit score is very important.

New College Grads Personal Finance and Banking:   One common sense goal of any recent college graduate is to continue the thrifty lifestyle you were living while in college.  Give yourself time to stash away money towards savings as a buffer to what may surprise you.  Most personal finance experts agree that you should have at least six months of expenses saved for those rainy days.  Having your money in the bank is probably the best personal finance you can have as a college graduate.        

College Savings App by Apps Rocket is an innovative app for the iPad. This video shows a quick demonstration of its functions. For more information go to the College Savings App web page: Website: www.appsrocket.com You can buy this app from the Apple App Store App Store: itunes.com Follow us on Twitter: twitter.com
Video Rating: 5 / 5

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When You Get That Tax Refund

Ah, it’s springtime. The feet-high snow has melted; and the tree pollens are starting to tickle people’s noses. Another sign of spring: tax fund money is trickling out of Uncle Sam’s fat wallet back into we commoners’ pockets. The average federal tax refund, according to Money magazine, amounts to around ,700 last year. For many, this is probably the largest chunk of dough outside of their paycheck that they will get their hands on all year. With the economic stimulus and other credit programs enacted by the Obama administration last year, this chunk is expected to get even bigger.

If you are one of the lucky who gets to receive a sizable refund, after congratulating yourself, you will ponder what to do with it. Gone are the days when people take this opportunity to indulge themselves with hot vacations, cool gadgets or shiny new cars. The past year’s economic and financial turmoil has brought no small degree of frugality back in this society; and people are clearly and rightfully more cautious with what they have.

So it all comes down to this good old question: what to do when you get a nice tax refund from the IRS? Here are a few pointers:

Adjust your W-4 form. Everyone seems to have some good ideas about how to spend their tax refund, and what to do first will vary among individuals. However, I believe the first thing you should do when you receive, or expect to get a significant amount of refund is not what to do with it, but to figure out why you would have to get a big refund in the first place. All things being equal, chances are that you had claimed too few exemptions and therefore let the IRS withhold too much from your payroll. Uncle Sam has gotten a free loan here. To correct this, contact your payroll department and ask to file a new W-4 form. Not sure about how much withholding is appropriate? Go to IRS.gov and use the withholding calculator to get specific instructions for filling out new W-4’s. You should see an increase in your take-home money soon after your payroll department makes the adjustment. It’s like getting a raise. Who wouldn’t like to have a little more money tucked in the wallet these days?

Pay off as much high-interest debt as possible. Of course you are not going to fret over getting a big refund, despite knowing that Uncle Sam had taken you for a free ride. Now it’s time to take care of yourself and get some burden off your back. Having a debt balance is like helping someone else to make millions with no returns for yourself. The 18 to 20 percent interest rates that credit card companies typically charge on balances are especially raw deals. To make this matter worse, many credit card companies have boosted interest rates in anticipation of the new credit card law; so carrying a balance now costs you even more. Pay it off, or at least pare it down first. Then take a good look at your mortgage, and if you can put the money toward the principal and not the interest for greater savings. Pay off a balance with an 18 percent interest rate is just like earning 18 percent on your money. Now this is an incredible Warren Buffet – class investment return with zero risk.

Build or rebuild your emergency fund. If the turbulent experience in the past couple of years had taught us anything, that would be the importance of having an emergency fund to fall back on. People lost jobs overnight; 401k’s became 101K’s; and college tuition bills were on the way. Keeping three to six months’ worth of expected expenses squirreled away in highly secure places could ease the pain. The money you put in the emergency fund must be very liquid; and the investment must be nearly risk-free. That leaves you not many choices but to stick with boring vehicles such as insured savings accounts, short-term CD’s, or high-quality money market funds. They pay puny yields – from no more than 2% (short-term CD’s) to almost nothing (savings accounts), but at least can help you sleep well at night. Remember, this is an emergency fund, which will provide you with some legroom and cushion if another crash is heading your way.

Boost your retirement savings. The meltdown of the financial market place has scared away many; you shouldn’t be one of them. In fact, with the markets having been way down and still in recovery mode, this is a good time to participate in the rally. Assuming that you have stopped giving Uncle Sam a free ride, made a serious dent in your debt, and built up a comfortable emergency fund, why not add more nest eggs for your golden years? For 2009, you have until April 15, 2010 to contribute up to ,000 to an IRA (or ,000 if you are age 50 and over). You can even contribute to a Roth IRA if your modified adjusted gross income is no more than 0,000 (for single tax filers) or 6,000 (for married couples filing jointly). You can only invest after-tax money in a Roth IRA, but its tax-free withdrawal feature makes it my favorite retirement savings vehicle outside of 401K.

Establish or improve college savings. Have had all the above bases covered? Kudos to you! Now maybe you’ll be able to lend a helping hand for your children’s future. Most people will cringe when they think about the ever-rising costs of putting their kids through college. So start savings early, and take advantage of a couple of excellent investment vehicles where your money can grow tax-free. Right now, you can contribute up to ,000 a year to a Coverdell Education Savings Account. But I prefer the larger and more flexible 529 plans, which are now offered by every single state. You may cross state lines to find a 529 plan and put in over 0,000 per beneficiary. You can use the money at least federal tax-free for college tuitions and related costs. The website http://www.savingforcollege.com has a full alley of useful information on college savings.

There is a lot more to do when you receive a nice chunk of tax refund money. Since every penny counts, make sure every penny is counted for.

Put Savings First With a Budget

Put Savings First With a Budget

Where does that money go? America, it seems, is in the midst of a savings crisis. Personal savings rates have dropped in recent years and remain low by historical standards as many people continue to spend beyond their means.

If you’re among those Americans who can’t seem to save, it might be time to create a budget. A budget allows you to understand where the money goes and may help you free up cash for important savings goals, such as college and retirement.

Getting Started

Setting up a budget will require some work, but the benefits more than offset the time invested. How you create your budget is up to you. You may choose a piece of financial planning software, such as Microsoft Money or Quicken, or you may choose the paper and pencil route. The above worksheet is a simple yet inclusive budget that you can use to get started.

The first element of any budget is your income, or how much money you receive each month. This can include paychecks, legal settlements, alimony, royalties, fees, and dividends from investments that you do not reinvest. Once you know what your monthly income is, you can use a budget to make sure you don’t spend more than you earn, thus helping to reduce debt and freeing up cash for savings.

Next, you need to know how you spend your money. Start by tracking your spending for a month. Gather bills and receipts, and don’t forget to include newspapers from the corner store and trips to the soda machine. Don’t assume any expense is too small to record.

Write down your expenses and break them into categories. Using the budget worksheet as an example, we find Fixed Committed Expenses — mortgage, loan, and insurance payments that stay the same from month to month; Other Committed Expenses — things you can’t live without, like food, utilities, and clothing; and Discretionary Expenses — things you like but don’t necessarily need.

Less Spending = More Savings

Once you know where the money goes, it’s time to analyze your expenses. There probably isn’t much you can do about Fixed Committed Expenses without moving or getting rid of the family car. However, if these expenses are greater than your monthly income, you are probably carrying too much debt to effectively save.

You may find some room to economize in Other Committed Expenses, but look at Discretionary Expenses first. This is typically the easiest place to reduce spending. Begin by canceling magazine subscriptions to titles you don’t read. Eat fewer meals out, or choose less expensive restaurants. Across much of the country, you can rent two DVDs for the price of a single adult ticket to a movie and throw in some microwave popcorn for a dollar more.

Digging Deeper

Once you’ve reduced discretionary spending, look at those Other Committed Expenses. Can you reduce the grocery bill with coupons or more economical meals? How about taking public transportation instead of cabs?

One area to closely examine is credit card debt. If a high balance is keeping you from saving, you need to find ways to trim those monthly payments. Call your credit card company and ask them for an interest-rate reduction, or shop around for a card with a lower rate. You can find a list of low-rate cards through CardWeb (1-301-631-9100 or online at http://www.cardweb.com). Beware of low introductory “teaser” rates that increase to much higher rates after six months.

You could also consider a home equity loan, which may offer a tax deduction, or a consolidation loan. Make sure that you’ll be able to afford the monthly payments before you take the loan. Banks can foreclose on a home equity loan within 90 days if you miss payments.

If your savings are still being crushed under the weight of debt, or if you’re having trouble making minimum monthly payments and covering necessary expenses, consider getting some help. The nonprofit National Federation for Credit Counseling (call 1-800-388-2227, or visit http://www.nfcc.org) can help you set up a budget and negotiate payment schedules with lenders for a modest fee. Once you start paying off your credit cards, the extra money can be used to build savings.

The Goal: More Savings

Once you’ve figured out where to economize, you can enter amounts in the Expected column of the budget. Notice that Savings and Children’s Education appear under Fixed Committed Expenses. This is to encourage you to pay yourself first, a key rule of saving. By setting aside a certain amount each month for savings, you can build toward your goal without missing the money. You may be able to set up a payroll savings plan through your bank or credit union. Also look into any employer-sponsored retirement plans you may have at work, which potentially offer tax benefits along with savings for the future.

It might also help to set a savings goal, both for short- and long-term needs. Studies have revealed that families with savings goals tend to save more.

Remember that your budget is a living document. As your circumstances change, so will your goals and needs. Review your budget every few months to make sure it reflects your goals and to see if you are saving as much as you possibly can.

Summary
You can use computer software or a pencil and paper to create a budget.
Analyze your spending for a month to see where your income goes. If your living expenses are greater than your income, you’ll need to find ways to economize.
Your spending can be broken down into three categories: Fixed Committed Expenses, Other Committed Expenses, and Discretionary Expenses.
To free up cash for savings, begin by reducing Discretionary Expenses, then look at Other Committed Expenses.
Pay down credit-card debt aggressively. Once the debt is paid off, direct the extra money to savings.
Set aside some of each paycheck for savings goals. Ask your bank or credit union about payroll savings plans and investigate your employer-sponsored retirement plan.
Review your budget periodically to make sure it is still in line with your needs and goals.

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6 Things Your Teen Needs to Know About Sex

As awkward as it may be, educating your daughter about sex can keep her healthy—and even save her life. Unfortunately, most teens have different views than their parents when it comes to what constitutes a sex talk. About 90% of parents nationwide say they’ve spoken to their teens about sex, according to a 2006 ABC News poll. But something is getting lost in translation, because only half of their teens agree. Here are six facts that every teen should know, along with specific ways to get your point across.

Talking point: Using a condom isn’t as effective—or as easy—as you think.

Fact: Condoms are almost as effective for preventing pregnancy as the Pill when they are used correctly. Condoms also drastically reduce the chance you’ll pick up a sexually transmitted infection—and you can’t tell by how someone looks if they have one.

Additional advice: “A couple may not put on a condom until the last minute,” says Paul Fine, MD, associate professor of gynecology at Baylor College of Medicine in Houston, “and in the heat of passion, he might not have the control he usually has, so that’s never foolproof.” Besides, youcan get pregnant before ejaculation; so-called pre-ejaculate is “loaded with sperm,” says Dr. Fine. A 2002 study of college students documented typical condom misuse, slippage, and breakage. Of the men surveyed, 40% said that they had failed to leave space for ejaculate at the tip of a condom, for instance, and 15% had taken the condom off before completing intercourse.

Talking point: If you have unprotected sex or the condom breaks, emergency contraception is an option.

Fact: Plan B is a high-dose birth control pill that is available over-the-counter and can prevent pregnancy if taken within 72 hours, though it is most effective when taken right away.

Additional advice: Many women’s health organizations recommend purchasing it before you need it, so that it’s readily available if you ever do. Call a doctor, a health clinic, a pharmacy, or a Planned Parenthood office, or place an overnight order from Drugstore.com.

Talking point: Teens and young adults can be at high risk for STDs.

Fact: Young people ages 15 to 24 represent 25% of the sexually active population—but they account for almost 50% of new STD cases, according to a 2006 Centers for Disease Control and Prevention surveillance report.

Additional advice: Depending upon your child’s sexual behavior, testing might vary from frequent (once every few months) to occasional (once every two years, in the case of a monogamous relationship, for example). “Young people ought to get tested once a year for HIV, syphilis, chlamydia, and gonorrhea,” says H. Hunter Handsfield, MD, a clinical professor of medicine at the University of Washington and a nationally recognized STD expert who has helped develop HIV testing guidelines for the CDC.

Talking point: Some STDs have few or no symptoms.

Fact: Women can have gonorrhea, chlamydia, hepatitis, HIV, and syphilis without having any obvious symptoms. Chlamydia is a sexually transmitted bacterial infection that usually starts out with no symptoms but it is very destructive in the long term, especially to women’s reproductive systems.

Additional advice: Jeanne Marrazzo, MD, an STD specialist at the University of Washington medical school, advises annual chlamydia tests for younger women. “If you have multiple partners, you may want to be screened more often,” she adds. Since chlamydia can be detected with a simple urine test now, a full pelvic exam isn’t necessary. You can also request a gonorrhea test at the same time, if you are concerned that you may have been exposed.

Talking point: If you’re a sexually active adult, you’ve probably contracted several of the 100 different types of the human papillomavirus (HPV) out there—more than 30 of which are sexually transmitted—and you probably had no idea.

Fact: HPV is the number-one cause of cervical cancer and genital warts.

Additional advice: To screen for possibly HPV-caused, potentially precancerous abnormalities in the cells of the cervix, all women should get annual Pap smears. Women under 26 should also consider getting theHPV vaccination, says Dr. Handsfield.

Talking point: The Pill does more than prevent pregnancy.

Fact: The Pill is so safe and effective these days that it is available over-the-counter in some countries. Depending on the formula of the medication, the Pill can:

Help reduce menstrual bleeding for women at risk of anemia
Reduce painful periods
Cut back on the risk of uterine infection and ovarian cancer
Treat PMS mood swings
Help clear up mild to moderate acne

Additional advice: Though safer than ever, the Pill still has minor side effects, such as breast tenderness, headaches, and nausea, but they often subside after a few months. But rare, serious side effects include blood clots, heart attack, and stroke.

Video of Joan Marshall, Executive Director of the College Savings Plans of Maryland answering the question: Can you use these plans at any school in the country or just those in Maryland?

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How to Create a Personal Savings Plan

Saving money is one of my favorite hobbies. It is so much fun watching the amount of interest increase each month. It doesn’t matter if it is a few cents, , 0, or more, this is income that I don’t have to work for, just keep my paws off the principle and it grows. You can’t ask more than that. And seeing that balance increase each month (or whenever I want to peek at it) gives me such a feeling of accomplishment and security. Emergency, short term, and long term savings are all equally important to planning for our future.

EMERGENCY SAVINGS:

Our first goal is to save enough for emergencies that may come up unexpectedly. This is savings to take care of you and your family for unexpected emergencies, such as: if you are laid off from your job, not able to work for some reason, a victim of a natural disaster, or any other like emergency. The goal for this category is 6 months of expenses minimum (1 year preferred). You will be able to figure out this goal by our earlier analysis. This is often an overwhelming amount to think of for most people, so just remember each little bit adds up and gets you closer to the goal.

SHORT TERM SAVINGS:

Next we will define Short Term Savings as setting aside funds for something we will need in less than a year. These are needs we know about and are planning for. This could include saving for a new sofa, vacation, or even Christmas gifts. If you can set aside money over time for these items, you will be saving greatly over high interest rate credit cards. It really pays to plan ahead.

LONG TERM SAVINGS:

This will include large items we are saving for which are more than a year in the future. This would include saving for items such as a down payment on your first home, your children’s college education, and your retirement. The more you are able to set aside for these future expenses now the easier it will be in the future. If your company offers a matching 401K, do your best to max it out (at least to ensure you get the highest amount in the match). This is like getting a raise immediately.

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