Now we are once again in the midst of resolution season.  Once again this year, financial resolutions are topping the list with scores of people committing to saving more or paying down debt.  But, as with most resolutions, remaining committed past the first few weeks of January will require sticktoittiveness…tenacity.

There are ways to set yourself up for success.  Simple acts can help you make the leap from resolution to reality.

Change the routines that lead to overspending. 

• Buying groceries at Target may be convenient, but do you find yourself tempted to buy things you don’t need?  It may be better to shop for food at the grocery store – with a list of course!
• Lunch at the food court, can be more affordable than eating at a restaurant, but are you using those last few minutes of your lunch hour tempted by the sales? Eating at the restaurant may end up saving you money – better yet, bring your lunch and save about $1,200 a year.
• Shop in the morning.  Studies suggest that you will be better able to avoid temptations earlier in the day when you are more rested.

Tell the people around you about your resolution.   Get your friends and family excited about supporting you and your resolution.

• Getting together for coffee or lunch?  Try meeting at the lake for a walk instead.
• Redefine girls’ night out and try a get together, like a game night, at home.

Change your gift giving traditions for birthdays and holidays.  Now is the time to throw out the idea of drawing names to exchange gifts in a group for the coming year.

Engage in new activities that will lead to success.

• Have a gym membership?  Try at class during your lunch hour.  Better yet, bring along a friend for the class, too!
• Learn to cook.  Make it fun to try new recipes at home.
• Take up reading.  There is nothing better than getting drawn in by a great book – especially one at no cost from the library! Plus, there are no advertisements or coupon codes to tempt you.

Exercise sticktoittiveness!

You will be tempted and, chances are, you will end up reverting to your old habits every once in a while.  The key is to start fresh the next day, reaffirm your commitment to improve your finances and stick to it!!!

November signals the beginning of the holiday season.  For many of us that means enjoying the warmth of family and friends, decorating our homes, and eating more pumpkin pie than we care to admit.  But for some of the homeless people in our area, the falling leaves signal falling temperatures, scarcity of light, greater preoccupation with finding a warm place to sleep and increased demand on our food pantries to satisfy hunger.

Boasting a median income level of more than $100,000/year, it’s hard to imagine homelessness in Howard County.  But for the more than 200 people who are living in shelters, the woods or in cars, homelessness is not something they imagine; homelessness is a daily struggle for food, safety and stability.  Hundreds more of our residents are at risk of becoming homeless– doubled up, moving from sofa to sofa, threatened with eviction or foreclosure.  Shelter beds are almost always full with about a dozen people being turned away each day.

Some of the faces of our homeless have changed in recent months and others remain the same. Our chronically homeless population, those people who may suffer from severe mental illness or addiction, continue to need our help.  In addition, the struggling economy has created a growing number of situationally homeless families, those people who for a variety of reasons lost everything.  Many were laid off and can’t find work; some lacked adequate health insurance when a major illness occurred; and some simultaneously lost a loved one and the steady income they once provided.  For many of these families, homelessness was something that happened toother people… until it happened to them.

Homelessness is not inevitable. We don’t have to learn to live with it.  It can be prevented and other communities are showing it can be done.  Howard County has a Plan to End Homelessness (visit www.howardcountymd.gov, click on Departments, then Citizen Services, to download a PDF of the full report).  To accomplish this goal, there must be a focus on prevention and rapid re-housing.  Prevention involves increasing efforts to identify and provide stabilization to people who might otherwise become homeless.  Rapid re-housing (Housing First) refers to an approach to move homeless people to permanent housing quickly in conjunction with organized efforts to provide basic support services to keep them housed.

Homeless people in our community have several places to turn for support. Grassroots Crisis Intervention Center is Howard County’s only full service shelter serving both men and women.  There is also the Cold Weather Shelter, run by Grassroots, which is open during the late fall through the winter.  Consisting of a network of several faith based organizations in our community, congregations take turns offering our most vulnerable residents a meal and warm place to sleep.  In addition, also relying on the generosity of volunteers, the Day Resource Center, sponsored by Grassroots and located on Rte. 1, provides a safe place to take care of basic needs for homeless people who do not have shelter. But for the Center, homeless people living in the woods would not have a place to shower, do laundry, get basic medical care or receive support services.

There are a number of other non-profits in our community, in addition to Grassroots, that strive to prevent homelessness, help our homeless population regain stability, and treat the devastating consequences homelessness creates.  Bridges to Housing Stability provides both transitional housing and case management to help families get beyond immediate crisis and remain sheltered.  The Community Action Council also provides a variety of support services including housing, food and energy assistance. The Domestic Violence Center provides women in crisis a place to rebuild their lives through shelter, counseling and case management.   And there are many more organizations in our area providing support services and financial assistance to residents in immediate need. Unfortunately, the emergency funds run out before the emergencies do.

The holiday season is traditionally a time when we think of others—sending cards, gifts and warm wishes.  This year, please consider supporting the organizations that provide services to our homeless population and those at risk of becoming homeless. They need our help.   Here are some links to get started:

http://grassrootscrisis.org/WishList.aspx

http://www.cac-hc.org/CAC/CACDocs/FoodBankItems.pdf

http://www.bridges2hs.org/giving.php

 Fast forward to the heat wave of this week… On Friday, as we expected, the A/C was cycled off at 11:30 and remained off for about 8 1/2 hours. The temperature in the house reached a toasty 91 degrees. With that, we abandoned ship and headed out for dinner and relief in an air conditioned restaurant – to the tune of about $40. So, there goes the $25 credit for this month – plus some!

 We’re sticking with the program. This is the first time we have been uncomfortable enough to have to seek relief so we’re still over $200 ahead since we enrolled – but this is a perfect example of how the quest for a discount can cost you. How many people do you that drive far out of their way to save a few pennies per gallon on gas, or drive across town for a small discount on an item? Discounts are great, but be sure that as you search out a great deal, it’s not costing you more overall!

 PS – While we’re at it, here are some great tips for saving money on energy costs: BGE Blog – Let’s Get Summer Ready!

Young Kids (K-2nd)

Make money fun for young kids.  One summer, our family had a daily treasure hunt around the house early each morning.   We had a jar of coins and mom would hide 15-20 each evening after the kids went to bed.  In the morning, the kids would hunt for the coins and then add them on a piece of paper.  Then, the coins would be returned to the jar for the next day’s hunt.  It was a great way to keep up their math skills and the kids loved it!

Young kids love to collect coins too.  Think about using the summer to begin a collection of the state quarters, or coins from particular years.  You can add a social studies lesson to this activity, too!  Learn the capital of each state, or an interesting fact about each asyou  go.

Older Kids (3rd-5th grade)

As kids get older, they can begin to add to their money sense by earning money and making choices about needs and wants.  If you pay your kids an allowance, check out this great, free site – www.zefty.com.   You can set up the system to automatically track the amount your child earns weekly.  Then, kids can set up a login, track their earnings, and even “write a check” when they want to cash out their allowance to make a purchase.  It’s a great way to begin teaching kids banking skills.

Pre-Teens (6th-8th grade)

For middle school aged kids, keep developing money sense at home with lessons around earning, spending and saving, but consider taking advantage of some of the great financial education camp experiences that are available.   Our local community college offers some great money camps for kids (Course: Money Matters), and organizations like Junior Achievement have amazing summer programs. 

High Schoolers

The summer is a great time for teens to add to their money skills.   Take your teen to open a bank account.  Have them make regular deposits of the money they earn.  Begin to talk to your teens about your family budget.  Help them understand the REAL cost of housing transportation and food.  They will be on their own soon, this is the time to get real about money.  This is also a great time to keep talking about careers and philanthropy as well.

Battling with your kids over “screen time”?

There are some great computer games that teach money skills.   Visa’s Financial Football is a fun way to sneak in some money lessons during the summer.   Also, television shows like Biz Kid$ can offer a fun way to learn about money and business while watching TV.  Click the link and enter your zip code to find out when the show airs in your area. 

There are so many great options to keep kids developing their financial skills during the summer.  Let us know how your family keeps the learning going even when school is out!

Gifts with meaning…  Consider giving a little piece of family history to your niece/nephew or grandchild who is graduating or getting married this year.  A piece of your family’s china you haven’t used in a while can make a very special gift.  I have proudly displayed a small, single saucer given to me by my aunt that was a piece from my great grandmother’s set.  Be sure to include a little note or sticker to highlight the family significance.  (Another option if you don’t want to break up the set is to buy a piece at Replacements.)  Regardless, by giving pieces with meaning, you can get away with giving less.   Graduates may enjoy a special family piece of jewelry (or a tie tack or cuff links for the guys).   

Gifts with a theme… Think useful!  Gifts with a laundry or fix-it theme are great for grads.  And for the newlyweds, you can expand the ideas to include the kitchen or the garden.   In any case, the container starts these gifts off right.  First, package the items in something useful!  (Laundry basket, toolbox, mixing/bowls or baking dish, or flowerpots all make great containers for the gift — check places like Walmart to get great prices on these types of items.)  Second, fill the container with some low cost items.  (Things like bath or dish towels, or event potting soil will work.)  Finally, top the package off with 1-2 small, special items.

Get crafty… You can save big money if you’re willing to put in a little time and elbow grease when it comes to giving.   Grads might enjoy picture frames, bulletin boards, storage boxes or desk blotters that you create yourself.  For the couple-to-be, make a no-sew table runner and placemats — here’s inspiration from Ballard Designs: http://www.ballardstylestudio.com/how_to/make-a-table-runner/.  Be sure to grab one of the 40% of coupons for the larger craft and sewing stores to stretch your dollars further. 

Put a personalized spin on the gift…  You can use fabric stamps to personalize table linens for newlyweds.  For grads, some stamped, personalized stationery or a personalized tote-bag is a perfect gift.   The key is to take something ordinary and transform it into a special one-of-a-kind gift. 

In the end, giving a gift with special meaning adds value and is a great way to avoid overspending on gifts.  What great, budget-friendly gifts have you given or received???

Next – our school system’s Academy of Finance program is looking for a few good businesses out there who might be willing to offer a summer position to a business student.  I serve on the community board for the program and we have 5 teens who have not yet been placed in jobs.  The Academy of Finance program is an intensive 2 year high school program for juniors and seniors looking to jumpstart their career in business.  The students take a series of classes (truly college-level material) in economics, banking, accounting, marketing and international finance. 

In the summer after their junior year, the students are expected to obtain a paid internship experience at a local business.  In this economy, it’s tough to come by those paid jobs though.  The internship should be 180 hours at minimum wage (or higher) — a total cost of just over $1,300 or so for the host business.  Check out what local law firm Davis, Agnor, Rappaport and Skalny said about their 2010 intern DARSLAW.

Our remaining five students have expressed strong interest in working with firms in the areas of:  law, marketing, accounting and finance.  All have indicated that getting experience with general business work would be helpful too.  So really any local organization could provide a perfect opportunity to learn the fundamentals of business.  I’m attaching the flyer with the contact information for the instructor of the Academy of Finance program. Flyer for Internships2011. 

If you have some pesky projects and no sign of getting a RoundTuit… perhaps working with one of these students this summer might be just the ticket. 

For all our criticisms of the IRS, the agency seems to embrace technology to make its operation more efficient and to better serve the public.   Some readers will certainly disagree — but I find it absolutely amazing that the agency will process over 82 million returns in what amounts to about 80 days.   And the public has embraced the techonology too.  About 80% of returns (either self-prepared or prepared by a professional) are now e-filed.   And, despite our image of the midnight run to the post office in Baltimore, most people file early — with about 3/4ths of returns in before April even hits.   I’m not sure the government loves this, though.  With the filers receiving an average refund of about $2,970, this is, in essence, a 244 billion dollar little loan from 2010 that the American public is calling due.

Ever wonder how the government is spending your taxes?  Here’s a great little tool/illustration:  http://www.wheredidmytaxdollarsgo.com/.  Plug in your income and roll over the pie chart. 

Last, I can’t sign off from this post without adding the old two cents on that refund the average household will receive.  I’m seeing news stories about giddy retailers hoping that (unlike last year when consumers held onto their refunds) we’re all going to enjoy some retail therapy after the tough economic times the past couple of years.   Given sky-rocketing gas prices (not to mention the resulting price increases on food), we all need to think twice about how we spend that refund.   Perhaps a good strategy would be to put the refund into savings for a few months before allowing yourself to spend it.  A few months of delayed gratification can offer a ton of perspective.  Alternatively, let yourself spend a small portion of it — perhaps 10% — on a splurge, and put the rest into an IRA or college savings account for your child.  I wonder how the Liberty Tax guy will spend his refund?  Maybe on a warm March day in 2012, driving down Route 40, I’ll have the chance to ask him. 

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Got savings?

Far too many don’t.  (Or don’t have nearly enough.)  The standard for emergency savings used to be 3-6 months of expenses.  These days the recommendation is to have at least six months.  Unfortunately, this typically means finding a way to accumulate tens of thousands of dollars — a daunting task to say the least.  But in the end, finding a way to start funding your savings for emergencies will likely mean the difference for your ability to successfully withstand crisis.  Start small and start today.  Ask your employer if you can direct deposit into two accounts.  Then, open a small savings account and begin allocating 5-10% of your take home pay into this account.  For most folks, putting the money directly into the separate savings account is an easy way to save — and most find they don’t even miss the money!

Pay down your debts!

You’ve got some credit cards with a big balance, right?  But, you pay at least the minimum every month and you pay on time — so no dings on the credit report.  So what’s the big deal?  Well — besides the obvious money flying out the door toward interest on the debt — there’s another, even greater risk.  By maxing out on the cards, you don’t leave yourself any cushion to use the cards in times of crisis.  That’s right — if you have a sudden loss of income, you’re going to need to be able to use those cards without going over the limit to pay for necessities like food and fuel.  The rule of thumb says you should never carry a balance more than 30% of your available credit.  And, although we always suggest limiting the number of credit cards you carry, it’s probably better to spread your balances out over a couple of cards — even if it means having 1-2 extra accounts.  The key is to avoid the temptation to spend the extra cards up to the limit. 

Don’t be fooled when they say… “You CAN afford this…”

Whether it’s a house, or a car — or any big purchase you borrow for — recognize those tricky words.  Just because you CAN afford it, doesn’t mean you SHOULD buy it.  Your house payment shouldn’t be more than 30% of your take home pay.  (And, perhaps only 30% of the net income of just one of the earners in the house for extra security.)  Your total transportation costs (car payment, plus gas and maintenance) shouldn’t be more than 12-15%.   The housing costs are particularly tough in Howard County — but keeping the guideline in mind will help you shop smarter. 

Student Loans

During times of crisis you may be eligible for deferment of your student loan.  Contact the lender who holds the loan to inquire.  This should only be undertaken for short periods of time.  According to FinAid, deferring a student loan for 3 years, doubles the cost of the loan — so this should only be a short, stop-gap measure.  It is, however, critical that you not just ignore your student loans in times of crisis.  Student loan debt appears on your credit report and will stick with you forever — it’s one of a just a few types of debts that even bankruptcy will not dissolve.

Be Reflective…

This is probably the toughest one for most people.  Go through your monthly expenses and write them down — ALL OF THEM!  Then, multiply them to see how much you are spending on the little stuff over the course of a year.  This may be just the reality check you need.  How much of your money is going to Comcast or Verizon?  How much is going to Starbucks or Panera?    Once you add all this up — you may find that the $5,000 a year you are paying for TV’s and phones just isn’t worth it.  Are you really creating fulfillment for you and your family with the choices you are making?

While it’s great to start taking action to prepare for a crisis today.  Chances are you’ll not only sleep better at night knowing you have a solid plan in place to deal with emergencies, but you may make different choices that make the days more enjoyable too.  And, the next time Congress decides to play political badminton your paycheck — and we know they will  — you’ll be ready.

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We offered a scavenger hunt for kids at the fair this year – and thought you might enjoy testing your money trivia skills on a few questions.  Might be a fun way to celebrate Financial Literacy Month at the dinner table with the kids tonight!

1) Which President’s face is on the dime?

2) What building is on the back of the nickel?

3) What materials are used to make a one dollar bill?

4) Where are U. S. coins made?

5) Where is the best place to keep your money?

6) The amount you pay to borrow money is called…

7) Where did the piggy bank get its name?

8 ) A U.S. $1 bill usually lasts how long in circulation?

9) According to history, the first banks and loans were recorded in what century?

10) Who made the first credit card?

11) All U.S. bills (any dollar value) weigh the same.  How much?

12) How many out of every 10,000 U.S. bills are counterfeit?

13) On an original Monopoly game board, what is the total value of all the property? (No houses or hotels.)

14) How many times does the phrase ”The United States of America” appear on a $100 bill? (Note this is the pre-2010 issue of the $100)

15) True or False? It costs more than a penny to create a penny at the mint.

16) The highest value U.S. bill currently printed is the….

Answers here: Money Trivia Answer Key

So how did you do??? 

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First, let us highlight the AMAZING line up of events being offered by the Howard County library system this month.  Schools are off early tomorrow, why not pack up the kids and head over to Are You Cents-Able at Glenwood?  It’s a great opportunity to instill good money sense at an early age.  And, believe me, there’s nothing that will keep you sticking to a resolution like having your kid looking over your shoulder!

Saturday is the flagship financial education event for our community.  Founded by Council Chairman Calvin Ball 5 years ago, the Money Matters event is offering a host of great activities for kids and adults.  When was the last time you reviewed your credit report, set a savings goal, learned about financial aid or saving for college, had your tough tax questions answered, reviewed your insurance, asked questions about scams?  Yep, they’ve got an expert for that!  Plus the kids will enjoy a variety of crafts, activities and games at the event too.  New this year, the event is featuring a pilot VITA (Volunteer Income Tax Assistance) site.  For families that qualify , the VITA program offers FREE tax preparation and filing AND ensures that they are connected with a variety of available tax credits (details at: http://www.hclibrary.org/uploads/VITAFlyer2011.pdf).  Also at the event, families that may be struggling financially can check in to determine if they are eligible for help from the Community Action Council, receive financial and housing counseling from the Office on Aging, and learn about a variety of helpful housing assistance programs from the Department of Housing.    

During the event, at 11 o’clock a Joint Proclamation declaring it Financial Literacy Month in Howard County will be read and we will be joined by Comptroller Franchot and Congressman Cummings.  Also at that time, we’ll be presenting the award to our own winner of the Passport to Financial Literacy Reflections Essay Contest. 

The Money Matters event on Saturday is just the start of a great series of financial literacy programs for all ages during April.  On April 7th, noted columnist Michelle Singletary will join us at the East Columbia Library at 7 pm to discuss managing money in the new economy.  Other events will focus on saving for college, buying a car and a host of programs for kids and teens.  On April 14th our friend Robert Wasilewski, the D-I-Y Investor will help you Maximize Your Investing Power at the Glenwood Branch at 7PM.

So, what’s in your wallet?  Certainly with all these great (free!) programs around the county this month to help you develop the skills to better manage your finances, there’ll be MORE in your wallet at the end of April!

Know of any other great financial education programs we’ve missed????  We want to hear!

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