When you have a long list of holiday gifts to buy, it can really pay off to spend time looking for deals on those gifts. Every deal you find is more money you get to keep in your pocket or spend on someone else. However, finding the deals and knowing when to buy can take some of your time and attention. Start preparing now so you are ready to shop when the deals start rolling in. From Black Friday to Cyber Monday It used to be that Black Friday, the day after Thanksgiving, was the biggest shopping day of the holiday season. Stores offered huge sales to bring customers in the door and, for many stores, bring their calendar year sales from the red into the black. Online merchants have focused their attention in recent years on Cyber Monday, offering great deals on the Monday after Thanksgiving. In the last couple of years, though, stores have expanded their sale window to extend through much of the week surrounding Thanksgiving. Deals start popping up the day before Thanksgiving, on Thanksgiving afternoon and evening, and during the weekend between Black Friday and Cyber Monday. Therefore, you’ll need to be on alert for the whole week to really get the best deals on your holiday purchases. Strategies for Maximizing Your Savings Through all of the holiday shopping frenzy, maintain a big-picture perspective on your spending. Yes, you might be able to get a great deal on an item, but if that item still costs far more than you were planning to spend on a gift for that recipient, you may be better off skipping the purchase. Sometimes a thoughtful or homemade gift is just as good, and far less expensive.

Find the Best Holiday Shopping Deals

View Resource Find the Best Holiday Shopping Deals
Once upon a time, it would have been the ultimate taboo to ask for cash as part of a wedding gift registry. Back in the day, couples were starting out and often establishing their first households, so they needed everyday items as gifts. Today, people are getting married later in life. They have usually already set up living spaces, apartments, or even bought a home before taking a walk down the aisle. So, it is less common for them to need the essential registry items of yesterday and to benefit more from gifts that involve cold hard cash. Fortunately, it is not as uncommon today, as you may have been led to believe, for couples to ask for cash in place of wedding gifts. In fact, the wedding planner site ‘The Knot’ has listed ‘asking for cash’ as one of its top wedding trends for 2018. Proper Etiquette Of course, there are still many wedding guests who may be put off by cash gift requests. One thing personal finance website Bankrate recommends is that you tell your guests what the cash will be used for when doing so. That allows them to feel like they are contributing to a more substantial gift rather than merely giving away money — especially if this gift involves something for the couple’s future, such as a down payment on a home, a honeymoon trip, a pet adoption, kitchen appliances, or new furniture for the bedroom. The more specific you can be about how you will use the money, the better. Oddly enough, in many cultures, it is traditional to give gifts of cash. It has only recently become a trend in the U.S. There are things you can do that will make it feel less awkward. Cash Gift Registries Cash gift registries are excellent tools to help you ask for cash without feeling awkward about doing so. Before you dive in, though, be aware of (and communicate) the fees that may be involved for you or your gift-giving friends, family, and wedding guests. Registries to consider include: With more wedding registry sites like these cropping up all the time, it is easier than ever to let your guests know that cash is a welcome alternative to another toaster or more towels. Putting it Into Perspective Ultimately, it is your big day, and the people who attend your wedding are your guests. Registries offer an opportunity to ask for things that are important to you as a couple or that can help you acquire those things. Few items work better than cash for both objectives.

Building a Cash Wedding Registry

View Resource Building a Cash Wedding Registry
Financial literacy is one of the primary life skills that some argue we fail to teach adequately in middle schools today. That leaves the responsibility for educating middle school students squarely on the shoulders of today’s parents. Many of these parents feel they are entirely unqualified to teach on the subject, due to their money struggles. Whether you feel like you are barely managing to manage your money or that it is ultimately managing you, only you can help your children avoid similar struggles as they enter the workforce and begin managing their finances. These are a few vital lessons your middle schooler needs to know – as a foundation for greater financial literacy later in life. Earning Money Your child needs to understand where the money comes from and that it is mostly an exchange of one thing for another. Earning money comes mainly from the fruits of their labor. Whether they labor mentally or physically, there is work required to make money. Once they understand this fundamental fact and see it in action in their lives, they can begin to comprehend its value on a different level. It is only then that they begin to correlate the value of the things they want to buy with the amount of time and effort needed to earn money to do so. Spending Money Let your middle schooler help with grocery, food, and clothing shopping. It gives real-world experience for understanding how much things cost. Consider helping your child get real work experience by doing the following: By the end of the shopping trip, your child will have learned a valuable lesson about the costs of groceries for a household and have a new appreciation for what you go through each week to keep food on the table. More importantly, your child will understand the process of spending money on essential items, like food and groceries. Saving and Investing One of the most challenging lessons to teach middle school students in today’s consumer-driven society is the value of saving rather than spending. It is hard to instill these values when all around them, people are buying the next new thing to hit the market as soon as it comes out. However, teaching them young to put half of their earnings into savings allows them to watch their savings snowball, and encourages them to prioritize their spending, so they only spend on what matters. Once they have a sizable amount saved, you can show them the value of investing and how that can kick their savings efforts into high gear! Borrowing Money Borrowing is a tricky issue to tackle with children. Some middle school children will struggle with the concept that money borrowed must be repaid. However, requiring your middle school child to return borrowed money fosters an even greater appreciation of the “contract” whether written or implied, of borrowing money and the importance of repaying it promptly. You might also want to consider creating penalties, late fees, or “interest” for your child if the money is not paid back as agreed. Takeaways You Can Use to Build Your Child’s Money IQ Teaching middle school children valuable lessons about money is something you can do, even if you are struggling with money yourself. Use the advice above to help your middle schooler handle, manage, borrow, and spend more responsibly.

Things Your Middle Schooler Should Know About Money

View Resource Things Your Middle Schooler Should Know About Money
If you are like most parents with children in high school, you are so busy trying to stay ahead of expenses that you do not have time to think about the opportunities your child’s high school offers to educate them about money. Financial literacy is one of life’s primary skills needed for success. Yet, according to the 2017 National Report Card on State Efforts to Improve Financial Literacy in High Schools, issued by the Champlain College Center for Financial Literacy, only five states received an “A” for their efforts to teach financial education, and an astonishing 27 states received grades “C”, “D” or “F”. For most, then, that leaves the responsibility for educating high school students squarely on the shoulders of today’s parents. Unfortunately, some parents may even feel they are entirely unqualified to teach on the subject, due to their money struggles to take on the mantle. Making Financial Decisions One way you can help educate your child about money and finance is to allow your child to make a few financial decisions on his or her own. While you are not handing over the keys to the bank account, you can set your teen up with an account of his or her own while you hold the reins, set spending limits, and monitor transactions. That ends the constant run to mom or dad asking for funds and forces teens to make financial decisions based on the money that is available to them. Making Money While some parents would prefer their teens not hold jobs while going to school so they can focus on making better grades or participating in extracurricular school activities, they do need opportunities to make money on their own to learn about budgeting and finances. Aside from part-time jobs where they earn regular wages, other opportunities exist for teens to make money that will not interfere with their education such as: There are all kinds of opportunities available to teens, including some part-time jobs that only require a few hours of their time each week. Budgeting Basics Sit down and work with your teen to create a budget for their essentials. This includes the things that are necessary for them to get through their week that aren’t food, such as: Give your high school student a strict budget to work with every month with the reminder that he or she needs to plan for larger purchases and may need to sacrifice smaller purchases to make room for more significant expenses along the way. It also allows them to see the value in shopping sales, comparing prices, using coupons, and ditching name brands in favor of more cost-effective products in a pinch. Banking Basics Setting high school students up with student accounts from their parents’ banks allows parents to monitor their activity with a safety net in place. That prevents them from getting in over their heads while giving them an invaluable education in how to operate their bank cards, balance their accounts, and manage their money. Keep these things in mind, though to make it a positive learning experience. Working with your teen to make sure he or she understands banking basics now will help prevent big banking mistakes as adults. Send Your High Schooler into the World with Solid Financial Skills Please do the following to help your teen develop financial literacy before they need to put it into action on their own. The thought of sending your high school student out into the world is thrilling and terrifying at the same time. Follow these critical steps so you can be confident you’re sending your teens into the world with the education they need about money.

Things Your High Schooler Should Know About Money

View Resource Things Your High Schooler Should Know About Money

If you are starting your search for a home and considering a home loan, you should use this handy financial tool to first calculate how much you can afford.

Your ability to obtain a loan for a new home purchase is based on a number of factors. Lenders typically make lending decisions based on three key ratios: (1) Loan-to-value ratio (LTV), which represents the ratio of the loan amount to the value of the home. Lenders ideally want to see an 80% LTV, meaning a 20% down payment is preferred; (2) Housing Ratio. which represents the percentage of your total income that goes towards housing expenses; and (3) Debt-to-Income Ratio, which represents your total debt payments, plus housing expenses as a percentage of your total income. Lenders will typically look at any of these ratios as constraints, meaning once any of these ratio limits is reached, the amount of the loan will be capped.

Home Affordability

View Resource Home Affordability
Mobile phones are everywhere now and are no longer just for making calls and sending texts. People use their phones for everything from navigating a new city to watching TV, getting work done, and managing calendars. It is only natural that over the course of the last decade, many people have come to use their phones more often than they use their wallets when making a purchase. There are several major types of mobile payments, each with a different method of making the payment and different overall purpose or use. Simply speaking, online mobile payments are when you use your mobile device to make a payment via an app or website. You might use your credit card or bank account information as the actual payment method, which you need to enter in the app or website if you have not previously saved it there. Direct carrier billing is another type of mobile payment, but rather than using a credit card or bank account; the charges are added to your phone bill. Buying apps and making in-app purchases tend to be the most common types of direct carrier billing. Depending on your mobile phone carrier, you may also be able to purchase digital content, like TV shows or movies, through direct carrier billing. SMS payments allow you to send money to someone by entering their phone number in a payment app. The recipient gets a text notification to their phone and, if they have not previously done so, must designate an account to receive the money. It could get deposited into a bank account, PayPal account, or another type of digital account. Mobile point of sale payments allows vendors to accept payments from physical credit cards swiped through a reader attached to a mobile device. The touch screen of the device itself displays the details for the buyer to confirm the purchase. This method is often used by small businesses that do not want to use a stationary point of sale console at a store, but instead receive payments at different locations and want the flexibility of accepting credit card payments from anywhere. Square, PayPal Here, LevelUp, and Shopkeep are some of the biggest mobile point-of-sale providers. Mobile wallet payments using NFC (near field communication) are arguably the most exciting type of mobile payments. They allow users to make purchases in stores using their phones, rather than needing to use cash or a credit card. Payments are typically made through the terminal that processes credit and debit card payments, but rather than swiping a card, you only need to bring your phone in close proximity to the terminal and confirm on your phone that you want to make the payment. Choose from several mobile wallet options, depending on the type of device you have.

The Basics of Mobile Payments

View Resource The Basics of Mobile Payments
A credit card can provide you with the financial freedom you need to make larger purchases and quick buys when you do not have cash handy. However, credit cards can also saddle you with mountains of high-interest debt. The key to using credit wisely often lies in choosing the right credit card for your needs. There are a host of factors that you should consider before signing up for a credit card. If you study your options carefully, the odds are higher that you’ll make the right credit card choice. Interest rate The most important number to know when it comes to a credit card is the card’s interest rate. Usually expressed as an annual percentage rate, the interest rates on most consumer credit cards range from 12 percent to as high as 25 percent. The lower the rate, the better. The interest rate kicks in when you do not pay off your credit card’s balance each month. Moreover, if your card’s interest rate is high, the amount of charged interest can soar quickly. Consider that the Federal Reserve Board estimates that a credit card balance of $4,000 with an interest rate of 18 percent will take 94 months to pay off if a minimum monthly payment of $80 is made each month. During this time, you’ll pay $3,448 in interest charges on that $4,000 debt. That does not seem like a good deal because it is not. Carrying high balances on your credit cards can cost you thousands of dollars. That is why it is important to find the lowest interest rate possible if you are likely to carry a monthly balance on your credit cards. Of course, if you pay off your card’s balance every month, interest rates will not matter. They only kick in when you carry that card balance from one month to the next. Penalties Credit card companies often charge a host of fees. It is important to study the paperwork that comes with your credit card so that these fees do not surprise you. Your card might charge an annual fee that you’ll have to pay every year. These fees vary but can range from $20 to more than $100. Some cards will charge an application fee when you apply for them while others will charge a set-up fee after you open a new account with them. Cash advance fees can add up, too. Most cards will charge you every time you use them to get cash. That fee might be a flat fee of, say, $5 or a percentage of the amount of cash you access with your credit card. Some cards might even impose a credit-limit-increase fee if you ask for and obtain a higher credit limit. All cards will charge you penalty fees if you pay your bill late or make purchases that put you over your credit limit. These fees, too, will vary, with some as little as $15 and others $40 or more. The real penalty with paying your credit card bill late, though, often comes in the form of a higher interest rate. Read your card agreement carefully; some credit card companies reserve the right to boost your low-interest rate to one as high as 29.99 percent if you do not pay your bill on time. Moreover, these same companies might keep your rate at the penalty level indefinitely. Don’t forget to keep these fees in mind when selecting a credit card. Too many fees and your low-interest-rate credit card might not seem like such a bargain after all. Special offers Some credit cards come with special offers and incentives. Cash-back cards, for example, are attractive today. These cards will refund a percentage of the purchases you make with them. You will then receive those dollars — usually credited to your credit card account — at regular intervals. Some cash-back cards are category specific. They’ll provide you 5 percent cash back every time you use your card to buy groceries, fill your car with gas or make hotel reservations. Other cards provide a blanket cash-back amount, awarding you a percentage of cash back with every purchase that you make with your cards. You can also choose from several rewards cards. These cards provide you with rewards points for every purchase you make with them. After your points add up to a high enough level, you can cash them in to buy electronics, book hotel reservations or purchase restaurant gift certificates. Other rewards cards let you accumulate airline miles with every credit card purchase you make. After you gather enough miles, you can turn those miles into free flights to destinations across the globe. Rewards cards are enticing. However, they can also be dangerous. Make sure that any rewards card for which you sign up doesn’t come with high fees or interest rates. Higher rates and fees will negate any rewards or cash-back bonuses you receive. Make sure not to overspend with these cards in an effort to rack up more rewards or cash-back bonuses. Again, the amount of debt that you acquire can more than negate the rewards they provide. Credit card shopping Shopping for the right credit card is no easy task. Fortunately, it is easier than ever to shop for credit cards today thanks to the Internet. You can quickly access the customer agreements of a wide variety of credit cards online. You can also quickly access the interest rates, fees and incentives that these cards offer, also online. Remember, though, that even cards with advantageous terms can lead you to financial trouble if you do not use them correctly. It is important to not overspend with credit cards. Credit card debt that comes with high interest rates can make that debt spiral out of control quickly. If you find that you need help with your credit card spending, consider signing up with a legitimate licensed debt or credit counselor. Such a professional can help you uncover the reasons for your overspending ways and draft strategies to combat them.

Choosing a Credit Card

View Resource Choosing a Credit Card
The perks that come with some credit cards can be very rewarding if you use them correctly. Applying for a couple of good cards that have a reward system in place can get you things like free hotel stays, free flights, cold hard cash, and more. These credit card reward programs can be so good that often people will apply for a bunch of cards all at once to take advantage of them, racking up the points to earn frequent flyer miles and other perks. Types of Reward Cards The most popular types of credit rewards cards involve earning points, receiving cash back, redeeming for gift cards and merchandise, and receiving discounts. Points This type of credit card assigns you with a certain number of points for every dollar you spend. Typically, it falls under a 1:1 ratio with certain categories offering you extra points. You can redeem these points for different types of rewards including dining, cash, and travel. These point systems can be complex since you are not working with actual dollar amounts. Point conversions can sometimes be perplexing and tricky in some cases. Cash Back Cash back reward cards are fairly common and popular. According to a recent survey, 63 percent of the people surveyed chose the cash back option. While each program will have its restrictions and specifications, the main concept of this reward system is to offer you a percentage (usually between 1 to 6 percent) of cash back on the purchases you make throughout the year within a certain category. There are usually annual limits attached which mean you might not be getting the high percentages you think you are. There can also be a lot of harsh restrictions attached to them, which are sometimes even rotated. That can make them confusing. Some of the popular cash back categories include spending for: Redeeming Points for Gift Cards/Merchandise Gift cards are a highly functional and convenient option and in some cases, credit card companies partner up with retailers to offer you other types of discounts in addition to gift cards. This can provide you with even more savings. Discounts This is your basic discount reward program where you can cash in your rewards to obtain discounts on different services and products. Best Tips If you are looking to make the most of your reward programs, there are some tips you should follow which include: You should stay up-to-date on all the latest deals to maximize your reward perks. Credit card companies often launch new cards, change their bonuses and remove old programs on a continual basis. Being Responsible and Wise with Credit You can get much value from credit card reward programs when you use them wisely and responsibly. You should always pay your balance off every month to avoid those interest rates and late fees. Choose rewards that suit your lifestyle preferences. For instance, receiving airline miles would not do you much good if you do not travel much or like flying in airplanes. Make sure you research all reward programs and align a program with your goals, lifestyle and brand/vendor preferences. Also, stay in budget and do some comparison shopping when selecting reward cards. When you get right down to it, applying for a couple of good reward cards and using them wisely will help you roll in the perks. Just stay on top of the best deals and pay your balance each month and you will position yourself to maximize the rewards you get from your credit cards.

Maximizing Credit Card Rewards

View Resource Maximizing Credit Card Rewards

When making a major purchase, using a home equity loan or line of credit is an alternative to financing offers often provided by a seller or manufacturer. In such cases, buyers often have the option of taking the seller-provided financing offer or a rebate on their purchase. Taking the rebate and using the equity in your home may provide a better alternative to the seller financing.

Using Home Equity for a Major Purchase

View Resource Using Home Equity for a Major Purchase
If you are in the market to buy a new home and have less than a 20 percent down payment, you are usually required to buy private mortgage insurance. Overview of PMI Private mortgage insurance (PMI) is a mandatory mortgage insurance you have to pay when you take out a conventional loan. PMI protects the lender in the case you cannot make your mortgage payments. The lender arranges the PMI, and private insurance companies provide coverage. It is usually required if you take out a conventional loan, but you have a less than 20 percent down payment of the purchase price of the home. It is also required if you are refinancing your house, but you do not have at least 20 percent equity in your home. PMI typically costs between 0.5 percent and one percent of the full loan on an annual basis. Therefore, if your loan is $150,000, you could be paying as much as $1,500 a year (or $125 per month) in private mortgage insurance — presuming a one percent PMI rate. Avoiding PMI There are several ways to get around PMI. Sometimes lenders will offer conventional loans that don’t require PMI if you have a small down payment. With these loans, you may pay a higher interest rate, which can often be more expensive than the PMI itself. That depends on several factors, including how long you intend on living in the home. Not paying PMI and paying more in interest rates could affect your taxes, so it is a good idea to talk to your tax advisor before going this route. Another option you have if you have a small down payment is taking out a different loan like an FHA loan. Loans like this could end up being more or less expensive than a PMI required conventional loan depending on your down payment, credit score, general market conditions, and lender. The best way to avoid PMI is to save up your money until you can put 20 percent down on the house. PMI is not required if you pay the 20 percent down. Paying the 20 percent may also lower your interest rate. Getting Rid of PMI Once the principal balance of your loan drops to 80 percent of your home’s original appraised value, you can ask to have the PMI canceled. Note that you will have to be current on your loan once the balance reaches 78 percent to get the PMI removed. The steps you can to take to cancel your PMI sooner include:
  1. Refinance: To have PMI removed, you will need at least 20 percent equity in your home. If home prices in your area have been noticeably increasing, you will have built additional equity in your home. Refinancing with a better loan-to-value may put you past the 20 percent threshold.

  2. Have your home appraised again: To see if you now meet the 20 percent equity threshold, some lenders may allow for a new appraisal rather than going by the original sales price.

  3. Make prepayments on your loan: Even small payments a month added to your regular mortgage payment can help you get your loan balance down quicker.

  4. Remodel: Consider adding a pool or an additional room to increase the market value of your home. Then ask your lender to use the new value figure to recalculate your loan-to-value ratio.
When the market is experiencing near record low mortgage rates, refinancing will not just eliminate your PMI but will lower your interest payments each month as well. You can still buy a home even if you do not have 20 percent down. Conduct research to learn more about how PMI works and when you will be able to get rid of yours.

About Private Mortgage Insurance

View Resource About Private Mortgage Insurance