by Kristin Jackson | Mar 17, 2014
Your credit score is the most frequently and widely used method for determining your credit worthiness, but what if a 700 credit score was not just a 700 credit anymore? What if there was a way to try to predict consumer debt delinquency behavior even among those individuals that have 700 credit score? Recent research by Xiao and Yao suggests that where you are in your family life cycle could also be another predictor. Xiao and Yao reviewed 15 different life cycle stages
Check your credit report at annualcreditreport.com
and found the following groups were most likely to be delinquent:
- Young couples with children aged seven
- Middle-aged singles with children age 15 or older
- Middle-aged singles with children under 15
- Middle-aged couples with children under 15
- Older couples with financial dependents
What does this mean for the consumers that fall into these groups? It means that financial institutions, bank and credit unions or alternate financial service providers such as payday lenders, cashing services or high interest lenders may profile you for targeted marketing campaigns. What can you do be proactive and avoid negative or sub par offers as a result of being profiled?
- Check your credit report at https://www.annualcreditreport.com/. (It is the only official government authorized free credit reporting site.)
- Before making a major purchase requiring the use of credit, you may want to know your actual score (Often times this is not free).
- Make sure you understand your credit report and/or score. To learn more, contact the Family and Consumer Sciences Agent in your local UF/IFAS Extension Office.
- Research financial institutions or alternate service providers to insure you are getting the best offer base on your score
Don’t be a victim of profiling any longer. Take action now. For more information on credit scoring, contact your Family Consumer Science Agent.
Read the following publications for more information:
References:
Jing Jian Xiao, Rui Yao, (2014) “Consumer debt delinquency by family lifecycle categories”, International Journal of Bank Marketing, Vol. 32 Iss: 1, pp.43 – 59
by Kristin Jackson | Mar 17, 2014
The deadline to enroll in health insurance through healthcare.gov is March 31, 2014
UF IFAS Extension Northwest District cares about you having all the facts necessary to use research based information to make informed choices for you and/or your family. One important choice coming up for almost 70,000 uninsured adults in the Big Bend (Gadsden, Franklin, Jefferson, Leon, Liberty, Madison, Wakulla, Taylor and Dixie Counties) is the decision to obtain health insurance coverage. The deadline to enroll in health insurance through healthcare.gov is March 31, 2014.
Research estimates that the majority of the uninsured are working families with low to moderate incomes, so some individuals and families are unable to pay for health care insurance. The Affordable Care Act gives individuals that are uninsured or underinsured the chance to obtain health insurance or to obtain better insurance. Due to the cost of insurance some low to moderate income individuals may qualify for an exemption, but there are still financial implications for not having health insurance coverage. Five important financial implications of not having insurance are:
1) Out of pocket and are often billed at a higher rate than insured.
2) Financial strain from medical bills and out-of-pocket cost.
3) Inability to pay for their or their family member’s medical care.
4) Compromised credit score.
5) Inability to obtain assets (such as a car or house)
Individuals and families without insurance and who do not have an exemption, will have to pay a penalty. The fine in 2014 will be the greater of $95 or 1% of your yearly household income. The penalty is expected to increase in 2015 and beyond.
If you have additional questions about the Affordable Care Act and would like free research based information contact your local UF/IFAS County Extension Office. Many local UF/IFAS County Extension offices offer information on the Affordable Care Act. You can find your local UF/FAS Extension Office by visiting http://solutionsforyourlife.ufl.edu/map/ or by calling the United Way’s 211 number.
References:
Kaiser Family Foundation. (2013). Key Facts about the Uninsured Population. Retrieved 3 March 2014 from http://kff.org/uninsured/fact-sheet/key-facts-about-the-uninsured-population/
Robert Wood Johnson Foundation. (2013). County Health Rankings & Roadmaps Health Factors Uninsured. ? Retrieved 3 March 2014 from http://www.countyhealthrankings.org/app#/florida/2013/measure/factors/85/data/sort-0
U.S. Centers for Medicare & Medicaid Services. (N.D.) What if Someone Doesn’t Have Health Coverage in 2014? Retrieved 3 March 2014 from https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/
by Kristin Jackson | Feb 28, 2014
Normal
0
false
false
false
EN-US
X-NONE
X-NONE
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin-top:0in;
mso-para-margin-right:0in;
mso-para-margin-bottom:8.0pt;
mso-para-margin-left:0in;
line-height:107%;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:”Calibri”,”sans-serif”;
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}
Are you “liquid asset poor?” If a household experiences an unexpected financial strain, such as a job loss, illness, or other large expense, and does not have enough liquid assets to cover basic expenses for three months, they are considered liquid asset poor. Liquid assets consist of money held in checking or savings accounts. According to recent research conducted by the Corporation for Enterprise Development, approximately 49% of Floridians are considered liquid asset poor.
Emergency funds focus on increasing liquid assets though savings. An emergency fund can allow households to adapt when unexpected financial strains occur. In the past, three to six months of income was considered to be a good emergency fund. In more recent times, the economy and unemployment have caused households to need much larger emergency funds. University of Florida professor, Dr. Michael Gutter, in “Money and Marriage: Saving for Future Use,” encourages families to consider the following factors:
- How much protection is provided by insurance
- Number of household incomes
- Household needs and fixed obligations
- Family financial support
- Retirement proximity
- Age of children
- Available credit
You can get an estimate of your household’s liquidity by completing the following steps:
1) Calculate the total amount of cash you have on hand and in your checking/savings accounts.
2) Develop a spending plan to allow you to estimate your monthly expenses.
(For help with developing a spending plan, check out Building a Spending Plan)
3) Enter your total cash and monthly expenses into the household liquidity formula:
Total Cash ÷ Monthly Expenses= Household Basic Liquidity
If the household basic liquidity is equal to or less than 1, this would be interpreted as having enough liquid resources to sustain your household’s current spending for only a month or less. If the household basic liquidity ratio is greater than one, that number is the number of months you would be able to live on your liquid assets based on your current spending. If you are not at your desired or expected number, take the pledge to start saving today at America Save$!
References:
Corporation for Enterprise Development. (2014). “Liquid Asset Poverty Rate”
Gutter, M. (2011). “Money and Marriage: Saving for Future Use”
Turner, J. (2001). “Show Me The Money: Lesson 5: Savings and Investments”
by Kristin Jackson | Jan 22, 2014
The Voluntary Income Tax Assistance (VITA) program offers free tax preparation to qualifying taxpayers.
Tax season starts officially on January 31, 2014. Now is time to start gathering documents and deciding on a tax preparer. For low to moderate income individuals and families, the VITA (Voluntary Income Tax Assistance) program maybe an option. Generally, VITA offers free tax help to people making less than $52,000.
When taxpayers use VITA everyone wins! The Federal government saves money due to increases in electronic filings and reduced filing errors. Local economies benefit when taxpayers receive their entire refund to spend in the communities where they live and work. Thanks to the help of Internal Revenue Service (IRS) trained and certified volunteers, qualified taxpayers save money on tax return preparation fees by receiving free high quality tax preparation service with access to e-file and direct deposit.
Volunteers will prepare:
- Form 982, Cancelation of Debt***
- Form 1040EZ, 1040A, 1040
- Schedules A,B,D***,C-EZ,EIC,R, SE
- Schedule E, Supplemental Income and Loss***
- Schedule C, Profit or Loss from a Business***
- Form 1040-V Balance Due Returns
- Form 1040 –ES Estimated Tax Payments
- Form 2016, Employee Business Expenses***
- Form 2441 Child and Dependent Care Credit
- Form 3903 Moving Expenses
- Form 5329 Additional Taxes on Qualified Plans and Other Tax-Favored Accounts (part 1)
- Form 5405, First Time Homebuyers
- Form 8863 Education Credits
- Form 8880 Credit for Qualified Retirement Savings Contributions
- Additional Child Tax Credit
- Form 8888 Allocation of Refund
- Form 88889 Health Savings Accounts***
- Form 8949 Sales and Other Dispositions of Capital Assets
- Form 1040-X Amended Returns***
***These services are limited and depending on the scope of the request may require the assistance of a paid preparer.
For assistance finding a VITA site near you contact your local UF/IFAS Extension Office http://solutionsforyourlife.ufl.edu/map/
or United Way (dial 211 or visit www.211.org).
by Kristin Jackson | Jul 30, 2013
Evaluate your life insurance needs if you have children.
Life insurance is protection against the loss of income that would result if the insured passed away. According to Life Insurance and Market Research Association International (LIMRA), approximately 35 million households are uninsured and 50 million American have inadequate life insurance. September is national life insurance awareness month, but the time to start preparing is now. Take the first step and consider whether you need life insurance.
“The top two reasons people don’t buy life insurance are: competing financial priorities or because they think they cannot afford it,” (LIMRA, 2012). How do you know if you should give life insurance serious consideration or rethink whether you have enough? If one or more of the following situations apply to you or your family you may want to evaluate your need for life insurance:
- If you have children and both parents work
- If you have children and one parent works
- If you have children and you cannot afford to pay for their final expenses
- If you are a single parent
- If you have an outstanding shared debt
- If you are married and your spouse could not support your current lifestyle without your help
- If you are married and your spouse may have to care for one or more elderly parents
The above list is not exhaustive, but is meant to get you started thinking about the kinds of family or lifestyle situations when life insurance could benefit you in providing for your love one(s). For more research based information on life insurance you may want to read Understanding Life Insurance (http://web.aces.uiuc.edu/vista/pdf_pubs/LIFEINS.PDF) by University of Illinois Extension. Remember, family conversations about money can be difficult. “Can We Talk? Improving Couples’ Communications” (http://edis.ifas.ufl.edu/fy044) is a great refresher on effective communication before tackling a delicate topic like money.
