by Kristin Jackson | Nov 21, 2014
It won’t be long before you start to smell “holiday scents” and hear “holiday music” almost everywhere you go. These holiday smells and sounds are a marketing tactic. According to research conducted by Spangenberg, Gorhmann, and Sprott, when Christmas music is played in conjunction with an ambient Christmas scent being released, consumers have more favorable reactions to retailers, merchandise, and the overall shopping environment. Despite this retailing trick, consumers can avoid overspending by doing three things: make a budget, make a list, and stick to your plan.
Make a budget
Ideally, budgeting is something that is done in advance and practiced year round. If you already have a budget in place, simply begin to plan how you will spend the money you have set aside for this holiday by category. If you do not have a budget, make a decision about how much money you are willing to spend this holiday season and stick to it. Some categories you may want to include in your holiday budget: Christmas cards, postage/shipping, gift wrapping expenses, decorating, travel expenses, and items for special meals/potlucks. For a printable holiday budget template, click here or visit the University of Maryland Extension website at http://goo.gl/5957ic.
Make a list
Once you have an idea of how much money you have for each budget category, get specific. Under each category, list individuals/groups to whom you want to give cards or gifts, decorative items you wish to purchase, places you will travel to, and food items you may want to prepare that are outside of your normal grocery list. Once you have identified the specifics based on your budget, decide on the total amount you can spend on each item.
Stick to your plan
Stick to your list and do not buy things you cannot afford. The idea seems simple enough, but, ultimately, this is where some will fall short. In 2013, a study conducted by Harris Interactive found that 57% of U.S. adults with children said they would be willing to take on debt in order to make their children happy for the holidays. When you buy gifts on credit or receive refund anticipation loans, title loans, or cash advances, you are taking on debt and may be buying items you cannot afford. Items purchased on credit that cannot be paid off before interest accrues end up costing more.
Tricks are for Halloween. This holiday season, don’t get fooled into unplanned purchases by the ambient smells and sounds retailers use to entice consumers. Shop smart by making a budget, making a list, and sticking to your plan.
References:
Spangenberg, Grohmann and Sprott. (2004). It’s beginning to smell (and sound) a lot like Christmas the interactive effects of ambient scent and music in a retail setting. Journal of Business Research 58:2005 (1583-1589).
University of Maryland Extension (2013). Stop Seasonal Stress with a Holiday Spending Budget. Retrieved 31 October 2014 from http://goo.gl/5957ic
Lexington Law. (2014). With the Holiday Season Nearing, Lexington Law Examines How Important Presents Are and How Much People Spend on Them. Retrieved 31 October 2014 from http://goo.gl/i3KDXm
by Elizabeth | Mar 31, 2014
As you are clearing out clutter, sprucing up, and getting ready for summer, you also should start your financial spring cleaning by figuring out where you stand financially. Here are a few tips to help you get started:
1. Get organized.
Build a personal financial filing system; get out your financial paperwork and file it in order of importance. Separate bills – that way, you can track them as they come in, reducing the chance of missed or late payments.
Use a plastic tote for a filing cabinet – these keep your files dry and are easy to carry from one room to the next should you need to.
2. Create a budget.
How much money do you have? Are you spending more than you earn? If you don’t have a spending record, start one. You can still get on with your financial spring cleaning today. If you haven’t been keeping a record, just make a deliberate effort to start now. Try to note all your spending for the next month, right down to the candy bar. Then, in a month’s time, you’ll be able to see where your money is going and, hopefully, see some areas where you can cut back.
3. Pay off Debt
Now, let’s discuss what most people agonize over, but is a very important subject: debt. If you have any debt beyond a mortgage, you should try to focus on paying off this debt as quickly as possible. It’s also important to try to negotiate your interest rates down with your credit card company if you can. Although this option may not be available to everyone, especially if your credit is not good, it’s worth trying.
If you are not successful, you can use these steps to reduce debt:
- Stop using credit; charging new items increases the balances on what you already owe.
- Do not open new lines of credit.
- Request a free copy of your credit report from www.annualcreditreport.com and honestly assess the problem. Understanding your situation helps when trying to resolve debt issues. Stop denying that you have a debt problem and work on it. You can analyze your debts using Powerpay®. This website gives you a personalized report and plan to reduce your debt based on your input.
- Break your debt load into manageable chunks; define your goal and focus on reducing manageable amounts.
For more information on financial education and tools to help you get out of debt; contact your local county Family & Consumer Sciences Agent.
by Kristin Jackson | Feb 28, 2014
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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 Judy Corbus | Jan 27, 2014
Set your thermostat to 68 degrees or lower in the winter to reduce heating costs.
Winter definitely is here! Thankfully, we are not shoveling snow here in the Panhandle like our neighbors to the north, but our electric bills most likely have risen as the mercury has dropped. To save money on your winter heating bill, follow these tips:
- Set thermostats no higher than 68ºF when people are home.
- Lower the thermostat when you sleep or are away from home. The Energy.gov website states that if the setback period is 8 hours or longer, savings of as much as 1% for every degree setback can be achieved.
- Put on a sweater or warmer clothing for comfort and lower the thermostat even more. Layer clothing. Closed or tighter cuffs and collars help to retain body heat. An extra blanket or throw will keep you toasty with a lower thermostat setting.
- Use ceiling fans to circulate heated air. Most fans have a switch that allows users to adjust the direction of the fan blade movement. Set fans to move in a CLOCKWISE direction in winter. The upward air flow will move stagnant hot air off the ceiling area and down into the living space. This allows for a lower temperature setting on your heating unit without a reduction in the comfort level.
- To ensure the heat gets to where it is supposed to go, use mastic or foil-faced tape to seal the seams and any cracks in air handling ducts.
- Have the heating system serviced each year to ensure efficient operation.
- Check caulking and weather stripping around doors and windows. Replace as needed to reduce heat loss.
- Clean or replace heating system filters. Dirty filters reduce the efficiency of the heating system and waste valuable fuel. Check filters monthly and clean or replace as directed by the manufacturer.
- Do not place furniture and curtains over or around the heat registers or in front of cold air returns. These items will block the airflow.
- Never use the stove for additional heat. It is dangerous. Besides causing a fire hazard, fumes given off by combustion from gas appliances can result in increased carbon monoxide levels.
- On sunny days, open blinds, shades, and curtains, especially if your windows face south. At sunset, close the blinds, shades, and curtains to help keep heat in your home. This really makes a difference.
For more household energy saving tips, visit the UF/IFAS Energy Efficient Homes series.
Source: No to Low Cost Actions to Save Home Energy and Money
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 Ricki McWilliams | Oct 30, 2013
Last year, the Consumer Federation of America (CFA) and the Credit Union National Association (CUNA) found that 12 percent of people said they were planning to spend more during the holidays than in the previous year. That number was up from 2011, where only 8 percent planned on spending more than in the previous year. This year, help reverse this trend and plan on spending less and saving more. Remember, it’s the thought that counts, not the amount you spend. Helpful tips for spending less and saving more:
- Make a Budget and a List: Decide how much you can afford to spend and stay within that budget. Make a price list of all gifts and other holiday items you plan to purchase. Take the list with you shopping to avoid overspending and impulse buys.
- Comparison Shop: You can easily save more than 10 percent on most items, sometimes considerably more, by comparing prices at different stores. The Internet and smart phones have made comparison shopping that much easier. But when shopping online, shop wisely. Be sure you are purchasing from a secure site and review emailed statements for accuracy as you receive them.
- Make Time Your Ally: The reason to start sooner rather than later is that when you delay, you pay. At the last minute, you have to settle for something, and it might cost more than you had wanted or planned to pay. Another benefit to starting early: It gives you more time to find the “right” gift and avoid impulsive decisions, which too often leave you less happy with your purchase.
- See what’s in your supply drawer: You may have more wrapping paper, ribbons, unused cards, and gift boxes stored away from last season than you realize. Use up those holiday supplies first to trim down the amount you’ll have to buy this season.
- Find Some Low- or No-Cost Ways to Celebrate: Adding a few changes can ease the strain on your spending budget. For example, draw names to reduce the number of people you have to purchase gifts for; give homemade items; make your own gift wrap; or organize a potluck rather than trying to make, and pay for, the entire holiday meal yourself.
With the money you save on gifts, you can give yourself the gift of financial freedom by paying down debt or building your emergency savings fund.
Need help finding ways to save? Take the America Saves pledge to make a commitment to yourself to save and to receive emails and/or text messages to keep you motivated. (America Saves, managed by the Consumer Federation of America (CFA), is a non-profit research‐based social marketing campaign that seeks to motivate, support, and encourage low- to moderate-income households to save money and build wealth. Learn more at americasaves.org.
Source: Katie Bryan, America Saves Communications Director
Additional ways to make a difference in YOUR financial future:
FREE ON-LINE CLASSES: Participate from your office, home, or web-enabled device. It is easy! Visit the registration link to reserve your spot. Then log on the day of the webinar to participate. All webinars are scheduled 11:30am – 12:30pm (CST).
• Credit Use and PowerPay Debt Reduction Tool – October 30
This webinar will cover strategies for wise credit use, factors that impact credit scores, and methods to pay off debt using a free, self-directed debt reduction program called PowerPay. Registration link: http://bit.ly/PowerPayToday
• The Cost of False Health & Nutrition Promises – November 1
This webinar will cover some of the myths and misleading claims that induce consumers to spend time and money on health products & supplements that have not had enough scientific scrutiny. Registration link: http://bit.ly/FHCCost
• 5 Simple Steps to Seasonal Savings – November 13
This webinar will cover seasonal stressors, developing a holiday spending plan, alternatives to pricey gifts, and fine-tuning your financial plan for the holidays. Registration link: http://bit.ly/ssss2103
To view archived webinars, please click here.
It won’t be long before you start to smell “holiday scents” and hear “holiday music” almost everywhere you go. These holiday smells and sounds are a marketing tactic. According to research conducted by Spangenberg, Gorhmann, and Sprott, when Christmas music is played in conjunction with an ambient Christmas scent being released, consumers have more favorable reactions to retailers, merchandise, and the overall shopping environment. Despite this retailing trick, consumers can avoid overspending by doing three things: make a budget, make a list, and stick to your plan.
