Newsletters % - Sept.

School Daze

The school year is back already and you can hear the mixed emotions of parents everywhere. The cheers of a little peace and quiet and the boos of the mountain of school supplies that need to be purchased. Here are some things that you may have to budget for throughout the school year.

A lot of attention has been focused on the escalating gas prices this year. Setting up a carpool is an efficient way to ease the burden on your gas tank. The more people in the carpool the less you will have to drive.

If you are fortunate enough to live close to the school then you can walk your children to school. You may even let them ride their bikes to school. You will want to go over all the bike safety rules though.

Watch the circulars and paper for tax-free shopping days. Many states allow a week where all clothes and supplies can be bought tax-free.

Many students in college are pursuing a degree that requires extensive computer use. The problem is that you may not have a computer or yours is very outdated. You may be able to include those costs into your financial aid and student loans. This can be easier than financing through the computer company because student loans generally carry a lower interest rates.

For other big purchase items like furniture and electronics, search for display models. These are things that were used for in-store displays and demonstrations. They may be a little dinged up but can save you a ton when the store is looking to get rid of it.

Avoid buying pre-packaged lunches from the grocery store. Instead buy the ingredients to make sandwiches. You will be saving yourself a considerable amount of money by taking a few extra minutes each night to prepare a lunch for the next day. You can also pack leftovers for your child’s lunch. Find out beforehand if there is a way for them to reheat it, if not than just stick to food that does not need to be reheated.

You may also purchase school lunch tickets. There are also programs that are aimed at assisting families who have a limited income. Contact your school to find out what options may be available for school lunches.

Use cash when making purchases. Save extra throughout the summer if you have to but you don’t want to have to use your credit card on supplies so that you are paying them off over the next few months.

The beginning of the school year should come as no big surprise for anyone that has kids. This should allow you to properly budget for the upcoming school year. Continue to keep an eye on sales throughout the year and enjoy your child’s education.

Budget Boosters

I’m assumming that any extra money coming into the household is a good thing. The holiday season will sneak up on us faster than we think or it may be nice to cut away some of your debt. Many people are reluctant to take on the commitment of taking on an extra part time job, but there are some jobs that you should explore that can actually be enjoyable and not take away any extra time. There are also some jobs that you can do from your home.

A new popular choice for many people is using eBay to make money. You may have a collection of sorts that you don’t have much use for and can collect some bonus bucks. If you are an avid yard sale treasure hunter and know your way around the Internet then this may be a way to earn a little extra cash. There are easy-to-follow steps and tips on how to use eBay on their website.

Penny Pinchers Club

Are you the type of person that comes up with terrific ways to Pinch Pennies? If so please email us and share your ideas.

HERE IS OUR PENNY PINCHER FOR THIS MONTH

“In the past year, I have started buying the Sunday paper. The main reason for my purchase is for the coupons. Growing up I watched my mother clip coupons, and then organize them in her coupon book. I used to think that was such a waste of time, boy was I wrong. I know most stores now have their own savings cards that act like coupons but if you use your card coupons you would be amazed at how much money you really do save. Last week while I was grocery shopping I used my store card which saved me $28.93 and my coupons saves me $18.69 for a total savings of $47.62.

-Shannon M. WA

Mutual Funds for Beginners

The world of stocks and bonds can be intimidating and cause many people to avoid it at all costs. There is an easier way of investing that has fewer risks than conventional trading. Mutual funds allow you to invest in the stock market without having to be an expert.

When it comes to beginners, they may think of the stock market as picking a company and then buying some of their stock watching it radically fluctuate while they second-guess themselves. By investing your money into a single stock you are taking about a fifty-fifty chance of either losing or making money. Mutual funds have less risk because you have your money spread out or diversified among a group of specific companies.

With mutual funds, an investor is putting their money/faith into a company that invests that money into a number of different companies in which they believe are good investments. The mutual funds have experts on staff that stay current on all pertinent information and trends and then trades based upon that knowledge.

A mutual fund has the option of investing your money in different ways. They may choose to only invest in bonds while some may choose stocks. Others may invest in both. The good thing is that there are thousands of mutual funds to choose from so you are bound to find one that you are comfortable with.

Picking Up the Pieces

Last month we featured some chores you needed to do to prepare for and make it through divorce proceedings. This month we will include some things that you will want to do after the divorce. Here are a few things that you want to consider.

If you have kids than you will want to make arrangements for child support or alimony. Alimony is given to the spouse who was dependent upon the other. Each alimony case will be different and the amounts awarded are dependent upon a number of factors.

Child support is given to the parent who has taken custody of the children and is used to pay for costs associated with raising the child. If you are having difficulties collecting child support there are groups that will assist you in getting it. Alimony and child support can be agreed upon between the two parties or if there is no agreement reached it will be determined by a judge according to your state’s specific laws.

Some people may be in for a bigger lifestyle change if they were previously a stay at home parent. It may have been awhile since you have had a full-time job. It is important that you get your resume together and start applying for qualified positions. It is a rare occasion where you can survive off of your former spouse’s alimony.

Questions & Answers

Q: I’m trying to catch up on
my bills and was thinking
of either a home equity loan or borrowing against my 401(k).

A: Neither decision is the best for borrowing from. You are putting either your home or your retirement at risk. I would explore more options first. Take a look at your budget and find some areas
that you can reduce or eliminate all together.

Q: I’m 15 years old. Can 1
open my own checking
account?

A: Many banks won’t allow
you to open your own
checking account until you turn 18. Shop around because there are some who allow 16 year olds to sign up.

You could also sign up for a joint account with your parents. They would hold authorization over it until you were 18 and could get your own account.

You can still open a savings
account though. Many banks allow you to open a savings account at any age. You could also ask for an ATM card that is linked to the savings account.

If you do not have a copy of our FREE “Simplified Guide to Financial Life Skills” workbook, contact us and we will ship one to you at – NO COST! –

Pioneer Credit Counseling Clients receive The Pioneer Pilot for FREE. If you are not a client of Pioneer Credit Counseling, and would like a subscription to our monthly newsletter discounted to only $30 per year (a $60 per year value), please send a check or money order to:

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Rapid City, SD 57709

1.800.888.1596

Pioneer is not responsible for any advice given in The Pioneer Pilot. Everyone has a different set of circumstances that would determine if an idea or plan is the best one for them. Information provided should not be intended as legal advice.

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PRE & POST BANKRUPTCY COUNSELING

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In the News

Bank issued gift cards will soon have some changes. The Office of the Comptroller of the Currency (OCC) has come up with guidelines for gift cards. These include:

The expiration date on the front of the card.
Fees for monthly maintenance, dormancy or usage.
A toll-free number or a Web site where consumers can get other
information about their cards. They will also provide a form when
issuing the card that includes the following information.
The name of the issuing bank.
Other fees that may apply to the gift card, such as replacement fees
and foreign currency conversion, and how the fees will be charged.
Whether the card can be used in conjunction with another method of payment.
How consumers can make complaints about their cards.
Whether the issuer can change the terms of the gift card.

My Financial Journal

I have to admit that I am getting excited for the fall. Not much beats the cool weather, beautiful fall scenery, and of course football.

A few months ago I was offered a job running a poker tournament for a lounge. It was every Monday night from 5:30-10:30. I would get paid per person that would play that night. I also kept track of points for all the players. It figured out to around $50 every Monday night. Nothing to write home about, but it was an extra $200 each month. The money has come in very handy to pay the extra doctor’s bills or other baby necessities.

Student Loan Relief

Search online for your college textbooks. You can save over 50% off the price that they sell in the college bookstore.

Here are some sites where you can search for your books.

www.half.ebay.com
www.amazon.com
www.bn.com
www.campusbooks.com
www.bigwords.com

Use these sites to compare prices and choose the lowest price. Still compare it with the bookstore as they may have a special deal to help them compete with the popularity of online purchasing.

Credit Card Myths

For amny people who are in financial distress credit cards play a major role. Here are a few misconceptions and myths about credit cards.

Myth: I wouldn’t be pre-approved for a credit card if they didn’t think that I would be a responsible customer.

Fact: Pre-approved offers are not based on your individual credit worthiness. Offers are sent to hundreds of different people based on a mailing list. So that special rate that you think you are getting is also going to a few thousand others. These offers usually lead people who are already in credit card debt to acquire another unnecessary card.

Myth: My credit is fine because I pay the minimum payment on time each month.

Fact: Even though you may be preventing any credit damage you are wasting a lot of money by only paying the minimum. By only paying the minimum you are allowing interest to continue to stack up on any remaining balance. The best thing you can do is to pay your amount in full each month. If you are unable to do so, any amount more than the minimum will help you cut your pay back timeframe and save you thousands in interest. If you pay less than the minimum than you can be charged with late fees on top of the accruing interest.

Myth: If I cut up my credit card the account is closed and there are no more worries.

Fact: Cutting up your card is a good way to physically restrain you from using the card, but that account will still be open. Sometimes an unused open line of credit can be damaging to your credit. You need to call the company and request that the account be closed. You are still of course responsible for any of the remaining balance and/or other charges associated with that card.

Myth: Card companies will contact you and ask for your credit card number and social security for identification.

Fact: You will never want to give this information to anyone that contacts you. You will sometimes be asked your social security number to bring up an account or to verify identification. If someone calls you and requests this type of information ask for their name and contact number. Then you will want to use the number you have for the company and call them back. Only give this information if you know exactly with whom you are talking to.

This is the same with any emails that you receive. Don’t send this information over the Internet. Again, use the phone number you have for them (either on the back of your card or on your statement) and contact them to confirm the information they requested.

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