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College Saving Secrets

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These days, it’s probably a toss-up who’s more nervous about college: you or your child. Graduates leave school with an average of $26,600 in debt — but you don’t have to leverage your 401(k) if you want to contribute. All it takes is a little planning and help from your teen to cut costs and minimize loan payments.

Do Prep Work

Assess your retirement savings. Invest in yourself first: Start putting money into a 401(k) or Roth IRA before contributing to your child’s college bills. “You can’t take out a loan for your retirement,” says Carol Stack, coauthor of The Financial Aid Handbook. “And you don’t want to end up relying on your kids to support you.” Use an online calculator like the ones on our website to find out how much you should be setting aside each month. By keeping your savings goals on track, you may have more leeway to fund your child’s education.

Discuss your contribution. It’s not easy to talk about finances with your children, says Stack, but if your teen is counting on you to help pay for school, he or she has to know whether and how much you plan to give each year.

Save without budgeting. If you’re maxed out on what you can set aside for college, consider signing up for a rebate plan. Sallie Mae’s Upromise program offers as much as 8% back on your purchases, which can then be applied toward tuition. Before your teen enrolls in school, the rebates can be transferred into a 529 plan; after your child graduates, the reimbursements can be put toward loan payments. (Grandparents and other relatives can also sign up).

Have “the other talk.” Choosing a university requires thought and planning. Most teens don’t decide on their top colleges until junior or senior year of high school, says Scott Weingold, cofounder of College Planning Networking. Even then, many make choices based on where their friends are going. “Starting at the beginning of their sophomore year, talk to them about what their strengths and interests are and what they like to do,” he says. “College is obnoxiously expensive enough — now add on that it’s not uncommon for kids to take up to six years to graduate.” So get them thinking in advance about schools, majors and potential careers.

Win the Scholarship Game

Start early. Even if your teen is years away from college, they should apply for scholarships. “You’d be surprised how many there are for elementary school students,” says Mark Kantrowitz, publisher of FinAid.org. Some examples are spelling, art and writing awards — not to mention a seriously lucrative $25,000 Jif prize for the most creative peanut butter sandwich. Find a list of possibilities at finaid.org/age13. Some school assignments (like a science fair project or an essay) can even qualify.

Search online. College students earn an average of $2,800 in scholarships, according to one report, making it among the best ways they can save for school. “Every dollar they are awarded is a dollar less they have to borrow,” says Kantrowitz. The best sites include ScholarshipAmerica.org, Fastweb.com, and CollegeBoard.org.

Here’s how your child can maximize their efforts:

  • Rule #1: Fill out the entire profile. Scholarship “matching” sites find awards for teens by asking them to complete detailed questionnaires about themselves. Answering all the questions, including the optional ones, says Kantrowitz, will yield more results.
  • Rule #2: Apply for (almost) everything. If a student isn’t eligible for a scholarship — let’s say, they just barely missed the GPA requirement — then they can skip it. Otherwise, your teen should pursue all potential matches, says Kantrowitz. “Many applications are essays that require personal statements. The first half dozen or so will be labor intensive, but after that kids can start recycling answers,” he says. Teens should set up a Google Calendar with due dates for all scholarships and make sure they’re aware of how much time they’ll need to complete the paperwork.
  • Rule #3: Beware of scams. The biggest red flag is being asked for an application or processing fee. “Legitimate providers want to give you money, not take it from you,” says Kantrowitz. “Never invest more than a postage stamp.” Also be wary of sites that ask for personal information, like a bank account or Social Security number.

Encourage community service. Schools aren’t the only organizations that value teens who volunteer. “It looks good to many scholarship providers too,” says Lauren Segal, CEO of Scholarship America. “And it can be the tipping point for winning.” Keep in mind that colleges like to see a history of service — not just a few stints started in junior year.

Go door to door. If they’ve exhausted paper and online searches, students can visit local organizations like the Rotary club, church groups and nearby businesses to ask about scholarships. You and your spouse should also check with your human resources departments: “I’m amazed at how many companies offer grants to the children of employees,” Segal says.

Keep your teen’s Facebook account appropriate. According to a new report, about one in four scholarship providers check their finalists’ online profiles. “Companies want to find students who reflect well on them,” says Kantrowitz. “They search for inappropriate behavior and offensive language, and even look at students’ natural writing style to see whether their parents probably wrote the essay for them.”

Strategize Your Search

Target a range of colleges. Include a few options that won’t leave your family or child with too much debt. “You don’t want your teen to fall in love with a school they can’t afford,” says Stack, who points out that the number of students defaulting on their loans within two years after graduation is now 9.1%. (One reason: It’s becoming harder for current graduates to find jobs). But you don’t necessarily have to rule out all private schools, which may have more money to offer than state ones, says Weingold. “Some colleges have generous aid-giving policies, so you never know what you’ll get until you apply,” he says. To estimate how much tuition and living expenses will come to — and to get an idea of how much assistance your family may receive — visit each college’s website and look for the “net price calculator”; all U.S. schools are now required to post one.

Barter for a better financial aid package. You don’t have to accept a college’s first offer, says Weingold. Call the school’s financial aid office and explain why your family still can’t afford the expenses. If your teen has received a better package from another university, write an appeal letter, including the offer, to her first-choice school, which may match it.

Cap your borrowing. Ideally, your child’s student debt shouldn’t be higher than their yearly starting salary, says Stack. The average income for college graduates is about $42,000 and varies depending on career; visit naceweb.org to see a range of salaries. Another strategy: Keep debt below $31,000, which is the maximum you can borrow over a four-year-period through federal Stafford loans. Unlike private loans, government ones have fixed interest rates and more safety nets, plus they offer some income-based repayment plans and loan forgiveness.

Article Source: Familycircle.com

7 Tips for Saving Time & Money When Shopping Online

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Ever wonder what the real experts know that you don’t when it comes to online shopping?

Little tricks of the trade that make the buys better, the discounts deeper and the whole experience of online shopping even smoother?

It comes down to a few smart strategies, a little organization — and the willingness to walk away from sites that skimp on consumer must-haves, like convenience and security. These days, when it comes to retail goods, shoppers are making more than one out of every six purchases online, according to statistics from the National Retail Federation. And that number is growing. Want to make your surfing, clicking and buying quicker, cheaper and easier? Here are seven insider strategies:

1. Get the coupons, skip the spam.

What’s the difference between getting a big discount and missing out entirely?

With online shopping it can be a matter of timing. Most online shops “release coupons on the second of the month or on the 27th or 28th,” says Hillary Mendelsohn, author of “the purplebook” online shopping series.

“So that’s good to know, timing-wise,” she says. While coupon codes are great, stores don’t always release them to coupon code aggregating sites, Mendelsohn says.

Her strategy: She registered for a free email account and uses that address to sign up for coupons at the stores she regularly shops. When she’s ready to buy, Mendelsohn logs into the email account and does a quick search for that store. What she has instantly: All its coupons.

“This is a great way of not having your [regular] email box filled with spam and being able to access the deals you want all the time,” Mendelsohn says.

2. Consider automating regular buys.

Have something bulky or heavy that you buy regularly?

Instead of lugging it home yourself, consider setting up an automated order, says Mendelsohn, who uses Amazon’s “subscribe” feature to get her kids’ favorite tea by the case every other month.

“I don’t have to place the order, and I get a discount,” she says. “And it’s free shipping. It makes a huge difference, and I don’t have the schlep it.” What it’s good for: “Big things you need constantly” from diapers to dog food, she says. “You save money, you save time and you save schlep energy.”

Free shipping can also sub in for “free delivery” for large one-time purchases, such as patio furniture and ping-pong tables, she says. With all the options for shopping and delivery, it pays to think strategically and “be smart about what you order online and what you go to the store for,” Mendelsohn says.

3. Coupons + discount gift cards = more savings.

What’s better than a coupon for something you need? Being able to combine that coupon with a discounted gift card to amp up your savings.

And while you often can’t use two different coupons on one item, you can use a coupon with a gift card purchased for less than face value, says Michelle Madhok, founder of SheFinds.com, an online shopping site.

Madhok’s tip: Use a gift card search site (her favorite: GiftCardGranny.com) to find a reputable seller for whatever card you need. And stick with well-known, legit companies, rather than individuals, she advises.

You can often buy them for 6% to 15% off face value and many are ecards, so you don’t have to wait for delivery, Madhok says. Then “stack the deal” with a coupon or promo code, Madhok says. Recently, “I used a digital gift card and coupon code on a $300 purchase and ended up saving about $50,” she says. Want to ratchet that up even more? Use a credit card that gives you rewards or cash back, says Madhok. Some cards will even boost those rewards if you buy from certain merchants or use the card’s app or online site as a jumping off point for your shopping.

4. Use alerts to save, not spend.

Be careful about subscribing to those “daily deals,” says Kit Yarrow, consumer psychologist and author of “Generation BuY: How Tweens, Teens, and Twenty-Somethings Are Revolutionizing Retail.”

Here’s why: They present a sudden deadline, plus an element of competition, she says. “People make hasty decisions when they feel like they’re competing with other shoppers.”

“I’ve found that shoppers tend to end up buying more, and they also buy less-satisfying things through this process,” Yarrow says.

When alerts can save: After you buy. Set up a price alert for the item and if the price drops, email customer service about a refund of the discounted amount, says Madhok, who used this recently to save $70 total on two separate buys. “Usually, they’ll honor it within two weeks” of purchase she says.

5. Make the most of that shopping cart.

If you want to save a few bucks, that shopping cart is valuable real estate.

“Pre-load your shopping cart with items you’re hoping to buy, in order to snap them up quickly if they go on sale,” says Yarrow.

“Most sites don’t empty your shopping cart if you’re a registered user,” she says. “So when they go on sale, you’re ready to go.”

It gives you time to rethink your buying decision, too, she says. “This process also helps shoppers make better decisions because it forces a ‘cooling off period.'” Want an extra incentive not to spend? Consider the cost and hassle of returning before you click “buy,” says Yarrow. And find out who pays return shipping.

6. Find out upfront: Available or back-order?

Shopping under a deadline? Check back-order before you pay, says Leslie Linevsky, co-founder of Catalogs.com.

Ideally, sites should notify you that something is out of stock when you place it in your shopping cart, she says. But not all of them do. Some notify you after you’ve given your card information, but before they bill you, Linevsky says. Others may not tell you at all. So keep back-order in mind as you shop and look for indicators that your merchandise is actually available. If the site doesn’t disclose if an item is in stock, call before you place the order, says Linevsky. Or go to a site that makes it plain, she says.

7. Practice safe shopping.

If you really want to save time and money, it pays to be as safety conscious online as you would be at your neighborhood mall.

Some smart habits:

  • When you’re supplying personal data (such as your name, address or card number), make sure you’re on a secure, encrypted page, says Frank DeBlasi, co-founder of HooplaDoopla.com, a cash-back shopping site.
  • If the URL has an “s” (for “secure”) after the “http,” that means “any information you send is being transmitted securely,” he says. “You never want to shop anywhere that doesn’t have that.”
  • Likewise, you don’t want to use public or office computers for shopping. Information can linger, even if you think you’ve erased it. (Not to mention that some employers actually monitor your keystrokes.)
  • Skip the public WiFi, too, says DeBlasi. “You never know the true level of security of the network you are connected to,” he says. “On your home network, you have control of the level of security.”
  • And watch how you pay. “Always use a credit card when you purchase online, not a debit card,” DeBlasi says. With a debit card, if something goes wrong, you’re fighting to get back cash that’s already missing from your account, he says. “When you use a credit card, you have a middle man in the transaction. And the money isn’t removed from your account.”

Article Source: Foxbusiness.com

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Fed Up With Your Bank? Consider a Credit Union

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Last year, credit union membership grew by 2 million people and credit union deposits topped $1 trillion for the first time ever, according to the Credit Union National Association. This was after banks got a bad rap during the financial crisis for their part in risky mortgage lending and for fees that many consumers view as unnecessarily greedy…

Think of credit unions as not-for-profit banks. That’s what they are, although they are not allowed to call themselves by that name. Do they have something to do with credit cards? Only partially. Or unions? No. Are they private clubs that few people can join? No again.

Today anybody can join a credit union. There’s always a way, and yet many people don’t realize that. True, in the old days, you could only join a credit union if your employer offered one. That’s still a great way in, but there are plenty of other ways to join. For example, one credit union runs a charitable foundation in its community and if you donate $25 to the foundation you are eligible to join the credit union. To become a member of First Financial, you must live, work, worship, volunteer, or attend school in Monmouth or Ocean Counties, New Jersey, as well as keep at least $5 in a base savings account with the credit union.*

Why would you want to? Since credit unions are not-for-profit, they can often afford to offer their members lower rates on loans. They are also more flexible in listening to members’ stories rather than just looking at their credit scores. So if you have imperfect credit, but there’s an understandable reason for it, such as an illness in the family, or a recession-related job loss, tell your story and you may still get approved for a loan at a credit union.

What size savings might you find? Here’s one example. After researching interest rates online for a $25,000 car loan, some banks were charging as much as 11.22 percent. The lowest rate found was at a credit union. Over the course of the loan, a lower rate of 4.25% would save you nearly $2,000!** Check out First Financial’s current loan rates to see if you can save money by refinancing or applying for one of our loans.

Go ahead, consider at least adding a credit union like First Financial to your financial strategy. Americans seem to be catching on that credit union membership is a beneficial piece of the financial puzzle.

“Every member of the credit union is an owner,” explains Issa Stephan, President and CEO of First Financial Federal Credit Union. “Money doesn’t go to a few investors, or to rally the stock price. We put what we need in capital as required by the federal government. Everything else goes back to the members through lower rates on loans, higher savings rates, updated technologies and assisting members through hard times. A lot of people lost their jobs and went through difficult times recently, and we use our resources to help our members with integrity and commitment to their long-term financial success.”

Doesn’t this make you interested in trying a credit union? If you’re not a member already, spread the word to family and friends! Call us at 732.312.1500, stop into any one of our branches, or visit us online at www.firstffcu.com to open a membership today!

*Click here to view the article source.

*$5 in a base savings account is your membership deposit and is required to remain in your base savings account at all times to be a member in good standing. All credit unions require a membership deposit. **Credit worthiness determines your APR.equal%20housing%20lender%20logo-resized-600

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Don’t Eat the Marshmallow! 4 Tips for Financial Self-Control

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The “Marshmallow Theory,” based on a landmark Stanford University experiment, has been used countless times to demonstrate the power of self-control in your financial and personal life.

The experiment followed children who were left alone with a marshmallow and told that if they didn’t eat it they would get a second one 15 minutes later. Some of the kids waited the full 15 minutes, some ate the marshmallow immediately, and others waited for a short period of time before eating it.

Years later, researchers tracked down the children and found that those with the willpower to wait to eat the marshmallow — 1 in 3 of the test subjects — grew up to become more successful adults than those who ate the marshmallow immediately.

Temptation Never Goes Away

Joachim de Posada, an author, motivational speaker, and adjunct professor at the University of Miami, has gotten a lot of mileage out of the marshmallow experiment. He’s written three books based on the theory.

His latest — “Keep Your Eye on the Marshmallow” — teaches readers how to take responsibility for their own financial, career and personal success by keeping their attention focused on long-term goals rather than instant rewards.

“One of the lessons we can learn from the marshmallow experiment is that among the 1 out of 3 kids that didn’t eat the marshmallow, some already had willpower and some understood they needed to use different techniques to avoid eating it,” says de Posada. “Leadership, like willpower, can be inherited, but it can also be learned through emotional intelligence.”

While the children in the Stanford experiment resisted eating the marshmallow by turning their backs on it or distracting themselves by drawing on the walls, de Posada suggests that adults can use similar techniques (defacing property notwithstanding) to avoid the allure of instant gratification.

4 Ways to Artificially Boost Your Willpower

If you lack financial willpower (e.g., the wherewithal to save your paycheck instead of spending it right away), de Posada recommends the following workarounds to help you delay gratification:

1. Choose an accomplice. Let’s say you have a goal of saving 10 percent of your paycheck until you have enough to cover six months of living expenses to stash into an emergency fund. If you can’t do this on your own, de Posada suggests you identify someone whose willpower is stronger than yours either to keep your money for you or be the person to whom you are accountable.

“If you trust them, send them the money and tell them they can’t give it back until you’ve reached a certain goal,” says de Posada. “Or have your mother or your brother or a close friend call you every 15 days and ask you how much you saved or what you spent your money on during the previous two weeks.”

2. Have your boss hide away part of your paycheck. If you work for a larger company, de Posada says you should have at least 10 percent of your income transferred into a 401(k) or other financial instrument before you ever see it. Just like the kids who looked away from the marshmallow, your money will be out of sight and out of reach.

The Investment & Retirement Center located at First Financial can assist members with saving, investing, and planning for retirement. Set up an appointment with the Financial Advisor by calling 732.312.1500 or stop into any branch and ask a representative to schedule an appointment for you.*

3. Use a money planner. “You schedule your time with your iPad or your calendar, so schedule your money in the same way,” says de Posada. “Give yourself orders that you need to follow in your planner, such as saving a specific amount each week.”

Committing these money appointments to your calendar makes them more concrete, as opposed to vague, far-off goals.

De Posada suggests establishing your financial priorities as you would other activities, with the “A” level urgent actions that must be done today, such as paying a bill on the due date; “B” level tasks that are important but can be accomplished by a future deadline, such as reducing your debt by a particular amount; and “C” level long-term goals such as funding your retirement. He recommends checking your money planner weekly rather than daily.

4. Take action now for future rewards. Overcoming a bit of discomfort in the short term often accompanies actions that pay off in the long term. Investing in the stock market requires weathering the inevitable short-term gyrations and reminding yourself that over the long term the market has steadily risen.

“You need to understand who you are and your appetite for risk, but be aware that when you’re younger you can be more aggressive in your investments,” says de Posada.

De Posada says the most important part of the marshmallow theory is to understand how you would react to the experiment.

“If you know intrinsically that you’re a marshmallow eater, then find a technique to overcome that character trait,” he says. “Recruit someone to help you or put systems in place that will force you to wait for that second marshmallow.”

Click here to view the article source.

*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

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4 Easy Steps to Raising Money-Smart Kids

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Human beings may be destined to do everything the hard way. Consider teaching kids about money – parents can do this quite simply, following a few guidelines. Parents are hands-down the most influential force in any child’s life, and studies show that this extends to money management. Yet, the money talk still doesn’t happen in many U.S. households.

Meanwhile, we have a global movement to bring financial education into the classroom. Too many kids go to college or get their first job without a basic understanding of budgets, debt, and saving.

Jonathan Clements is one parent who has made a big effort at raising financially literate children. A former personal finance columnist at the Wall Street Journal, Clements is now the director of financial education at Citi Personal Wealth Management. He started family money lessons at age 5 with his children, who are now twenty-somethings with enviable money management skills.

Clements believes there are four simple guidelines to raising money-smart kids:

  1. Make them feel like the money they spend is theirs. One way to do this is pay an allowance, explain what the money is for and never give in when they ask for more. “The first rule of parenting,” Clements says, “is to never negotiate.” With young children, play the soda game. When you eat out, offer $1 if they drink water instead of a soft drink. It’s shocking how often they take the $1. Pay allowance to a bank account so that they must make a withdrawal before they can spend.
  2. Tell family stories that illustrate money values. Clements’ own grandfather inherited and squandered a small fortune. He says he grew up hearing the story over and over from his parents; it ingrained in him and his siblings the lesson that money spent is not easily replaced. Share stories about your humble roots or how you struggled when starting your career. That way your kids will understand they must work to earn their lifestyle.
  3. Lead by example. Even if you are not a financial whiz (and who is?), you can set a good example by paying your bills on time and staying out of debt troubles. “If your kids know you’re up to your eyeballs in credit-card debt, they aren’t going to pay much attention to any wise words you might have about managing money,” Clements says. “Your kids are more likely to do as you do, not as you say.”
  4. Manage expectations. In their teens, Clements’ kids clearly heard what Dad would and would not pay for as the kids reached adulthood—how much he would pay toward college, what kind of support they could expect after college, and how much he would pay toward a wedding. This gave them a realistic sense of what was coming and there were “no bruised feelings” later. 

And there you have it. The hardest part may be consistency with your message and, for some, staying out of money trouble themselves. That’s all the more reason to commit to a plan like this, which will benefit you too!

Click here to view the article source.

No Business Owner is an Island – Tips for Getting the Right Advice from the Get-Go

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Starting your own business is one of life’s most exciting and harrowing experiences.  Good planning is essential to helping you stay on course and deal with unexpected hurdles. Research is the first step in the planning process and you don’t have to go it alone.

While you should be an expert on your industry, products and services, there is no way that you could be an expert on everything that running a successful business requires, particularly the financial, legal and tax requirements.   You may waste precious resources – your time, energy and possibly money- in the long run trying to do things yourself that you are not qualified to do.

Outside experts can include bookkeepers/accountants, lawyers, web designers and business coaches.  Too often, we think we have all the answers and are the only people who can really get things done.  The reality is that we are in danger of stretching ourselves too thin, and can risk the potential success of our business by not utilizing outside expertise.  Consider hiring on a consulting basis to keep costs low until your revenues start growing.  Look to your industry for references – the ideal professionals are those who have specialized in yours.

Unless you are a numbers whiz or have a degree in accounting, it is advisable to get a professional to set up your accounting system.  Each start-up is unique but generally most start ups can begin with a bookkeeper.  The bookkeeper will help start you off with a good record keeping system, handle financial transactions, and produce financial statements.  An accountant will cost more, especially if you plan to aggressively grow.  To keep costs down, you can use an accountant for year-end tax planning; the right accountant will not only help you with tax returns, but also with longer term tax planning and networking.

Good legal advice is worth its weight in gold; bad advice can destroy your business.  A good business lawyer will provide vital assistance in almost every aspect of your business, from basic zoning compliance, copyright and trademark advice, to formal business incorporation, lawsuits and liability.

Hire a web designer who can design both your logo and website.  You want a website focused solely on your company that is easy to navigate and full of useful information.   Before the designer gets started, think about exactly what you want someone to do and how they should feel logging onto your site.

Get a coach.   Even if at first you don’t get a business coach to help you and guide you in your planning and operation, get someone who is objective and outside of your business whom you can rely on for nitty-gritty business advice and to hold you accountable for getting results.    Another set of eyes can work wonders for how you operate both for you and your business.  An outsider can also make sure you are getting the numbers you need both on the top line and the bottom line to survive.

Working with these professionals from the start will not only increase your business success factor, but also free you to thrive in doing what you do best – your business!   Remember no successful business owner is an island; plan to utilize financial, legal, technical and marketing professionals from the beginning.

Have a question about business planning, products, or services?  Contact Business Development or leave a comment below.