"Worried about sky high gas prices? Did you know that by keeping your car
at a steady speed, cruise control helps save gas. It can also help save you
money in tickets, since you can stay “under the radar,” by avoiding the creeping
increase in speed that tends to plague drivers on long, boring hauls.
Whenever you hit the accelerator, you burn a lot of gas. Braking wears out
the pads, and forces you to use more gas to speed back up. Your vehicle’s
systems perform most efficiently at a constant rate.
Although fuel economy can vary significantly with model and conditions, the optimal range of efficiency is generally between 25 and 55 mph, according to the EPA. On the open road, try not to exceed 55, and try to stay steady at the speed limit on city streets. You’ll get there. "
Thursday, November 15, 2007
Cruisin' Your Way to Lower Gas Bills
Here's a tip from The Daily Green on how to reduce your gas bills by using cruise control - and saving money on speeding tickets by slowing down . . . sensible advice!
Tuesday, November 6, 2007
Take a Bite Out Of School Lunch Costs
Every day when I make my daughter's lunch I carry on a tradition that started with my mom. She’d make my sandwich for school every day. And every day she’d take a bite out of my sandwich. For many years I didn’t even question it. It seemed so normal.
Then the kids started asking. “Who took a bite of your sandwich?” they’d ask.
“My mom,” I’d say. “You mean your mom doesn’t take a bite out of your sandwich?” I’d ask.
“No!” they’d laugh. I always felt a little sorry for them, assuming their mothers must not love them the way mine loves me. So now I carry on the same tradition…
“Geez mom do you have to take a bite out of my sandwich again?”
“Yes,” I said, mouth full. She caught me in the act … again.
But if you’ve taken a good look at the school lunch menu, you might understand why I take the time each day to maker her lunch. I've seen corndogs, nachos and pretzels with cheese on the menu. Excuse me but isn't that carnival food? The average calories per meal is between 700-800. I'm not a nutritionist, but that seems like a lot to me.
A friend of mine who recently started making her kids lunches had similar sentiments after making herself familiar with the school lunch menu. She was horrified and vowed to start making lunches in brown bags the old fashioned way.
Still, I have to give credit to the school lunch provider Sodexho. Making lunch for kids raised on McDonalds can't be easy. These kids grew up in a time when, until recently, the best tasting food made the biggest profit and few companies (or consumers, for that matter!) really cared about how healthy the product was. Taste came first at the sacrifice of health. Things are getting better. Still, lunchmakers like Sodexho (and me) compete for my daughter’s choice of lunch. My goal: nutrition. Their goal is to make a profit for their company and for the school district. If the food doesn't appeal to the kids they lose.
And I must admit this year’s school lunch menus are looking healthier.
Still, I make her lunch as often as I can – I think that whatever I send her is a little healthier than what they’re offering.
Plus it saves me money! I figure the cost of my homemade lunch at around $1, as compared to around $3. And then I get to take a bite out of her sandwich.
Then the kids started asking. “Who took a bite of your sandwich?” they’d ask.
“My mom,” I’d say. “You mean your mom doesn’t take a bite out of your sandwich?” I’d ask.
“No!” they’d laugh. I always felt a little sorry for them, assuming their mothers must not love them the way mine loves me. So now I carry on the same tradition…
“Geez mom do you have to take a bite out of my sandwich again?”
“Yes,” I said, mouth full. She caught me in the act … again.
But if you’ve taken a good look at the school lunch menu, you might understand why I take the time each day to maker her lunch. I've seen corndogs, nachos and pretzels with cheese on the menu. Excuse me but isn't that carnival food? The average calories per meal is between 700-800. I'm not a nutritionist, but that seems like a lot to me.
A friend of mine who recently started making her kids lunches had similar sentiments after making herself familiar with the school lunch menu. She was horrified and vowed to start making lunches in brown bags the old fashioned way.
Still, I have to give credit to the school lunch provider Sodexho. Making lunch for kids raised on McDonalds can't be easy. These kids grew up in a time when, until recently, the best tasting food made the biggest profit and few companies (or consumers, for that matter!) really cared about how healthy the product was. Taste came first at the sacrifice of health. Things are getting better. Still, lunchmakers like Sodexho (and me) compete for my daughter’s choice of lunch. My goal: nutrition. Their goal is to make a profit for their company and for the school district. If the food doesn't appeal to the kids they lose.
And I must admit this year’s school lunch menus are looking healthier.
Still, I make her lunch as often as I can – I think that whatever I send her is a little healthier than what they’re offering.
Plus it saves me money! I figure the cost of my homemade lunch at around $1, as compared to around $3. And then I get to take a bite out of her sandwich.
Thursday, November 1, 2007
Beware - New Credit Card Phone Scam
We recieved an alert from our contacts at other credit unions that a new, very tricky scam is being conducted by phone. The bottom line to remember is that a ligitimate financial institution will never call to ask for your account information, because they already have it! Never give account information to anyone who contacts you.
This scam is pretty slick since they provide YOU with all theinformation, except the one piece they want. The scam works like this:
Person calling says, "This is (name), andI'm calling from the Security and Fraud Department at VISA. My badge numberis 12460. Your card has been flagged for an unusual purchase pattern, andI'm calling to verify. This would be on your VISA card which was issued by (name of bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona ?"
When you say "No", the caller continues with, "Then we will be issuing a credit to your account. This is acompany we have been watching and the charges range from $297 to $497, justunder the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (gives you your address), is that correct?"You say "yes".
The caller continues - "I will be starting a Fraud investigation. If you have any questions, you should call the 1-800 number listed on the back of your card (1-800-VISA) and ask for Security. You will need to refer to this Control Number. The caller then givesyou a 6 digit number. "Do you need me to read it again?"Here's the IMPORTANT part on how the scam works. The caller then says, "I need to verify you are in possession of your card." He'll ask you to "turn your card over and look for some numbers." There are 7 numbers; thefirst 4 are part of your card number, the next 3 are the security numbers'that verify you are the possessor of the card. These are the numbers you sometimes use to make Internet purchases to prove you have the card.
The caller will ask you to read the 3 numbers to him. After you tell the caller the 3 numbers, he'll say, "That is correct, I just needed to verify that the card has not been lost or stolen, and that you still have you rcard. Do you have any other questions?" After you say, "No," the caller then thanks you and states, "Don't hesitate to call back if you do", and hangs up.
You actually say very little, and they never ask for or tell you theCard number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did! The REAL VISA Security Department told us it was a scam and in the last 15 minutes a new purchaseof $497.99 was charged to our card . Long story - short - we made a real fraud report and closed the VISAaccount. VISA is reissuing us a new number.
What the scammers want is the3-digit PIN number on the back of the card. Don't give it to them. Instead, tell them you'll call VISA or Master card directly for verification of their conversation. The real VISA told us that they will never ask for anything onthe card as they already know the information since they issued the card! Ifyou give the scammers your 3 Digit PIN Number, you think you're receiving acredit. However, by the time you get your statement you'll see charges forpurchases you didn't make, and by then it's almost too late and/or moredifficult to actually file a fraud report. What makes this more remarkable is that on Thursday, I got a callfrom a "Jason Richardson of Master Card" with a word-for-word repeat of theVISA scam. This time I didn't let him finish. I hung up! We filed a policereport, as instructed by VISA.
Sunday, October 28, 2007
Is the Latte Effect Really The Problem?
Shopping malls and retail stores are always packed, and there is a new restaurant on every corner. Everyone seems to be wearing designer shoes, jackets and jeans and sipping $4 lattes. Credit card commercials are constantly promoting splurging and, U.S. consumers have been more than happy comply.
So what's the problem? Why do so many middle class Americans with so much stuff say they feel so squeezed? If they are consumed by debt, isn’t it their own fault? I have always thought that many times we are responsible for the financial situations that we find ourselves in. After doing some reading on the topic I now wonder if our personal needs and consumption choices are really the problem.
Bankruptcy law expert and Harvard University Professor Elizabeth Warren spent a lot of time crunching the consumer spending numbers for her popular books, "The Fragile Middle Class” and “The Two-Income Trap.” In both, she makes this point: Despite all those $200 sneakers you hear about and the long lines at Starbucks, consumers are actually spending less of their income — much less — on discretionary items like clothing, entertainment and food than their parents did. In fact, after taking care of essentials like housing and health care, today’s middle class has about half as much spending money as their parents did in the early 1970s, Warren says.
The basics, our life essentials, now take up close to three-fourths of every family's spending power (it was about 50 percent in 1973), leaving much less left over at the end of the month.
Even though household incomes have risen about 75 percent since 1970, most of that they say, is the result of a second earner, generally a woman, joining the work force. In many cases that added income has been swallowed by rising fixed expenses, such as child care and housing costs, because many people try and buy more house than they can actually afford. The average family now pays at least twice as much for housing compared to what our parents paid in the 1970s.
Four in 10 Americans don't have even one month's worth of savings for use in case of an emergency, according to a survey by HSBC Bank published in 2006. And even with two incomes built into the family budget, the odds of a household getting hit by a layoff have doubled in the last generation. The combination of high housing debt, rising health care costs, lack of savings and greater exposure to unemployment has left many families in a dangerous financial position.
I see the biggest problem being that the largest portion of our budgets are spent on fixed costs like housing, has risen much faster than wages and inflation. That means mortgages, more than lattes, are the source of many of our financial problems.
I now think that the "latte factor" is only being used as a way to distract people from the real changes in the economy.
So what's the problem? Why do so many middle class Americans with so much stuff say they feel so squeezed? If they are consumed by debt, isn’t it their own fault? I have always thought that many times we are responsible for the financial situations that we find ourselves in. After doing some reading on the topic I now wonder if our personal needs and consumption choices are really the problem.
Bankruptcy law expert and Harvard University Professor Elizabeth Warren spent a lot of time crunching the consumer spending numbers for her popular books, "The Fragile Middle Class” and “The Two-Income Trap.” In both, she makes this point: Despite all those $200 sneakers you hear about and the long lines at Starbucks, consumers are actually spending less of their income — much less — on discretionary items like clothing, entertainment and food than their parents did. In fact, after taking care of essentials like housing and health care, today’s middle class has about half as much spending money as their parents did in the early 1970s, Warren says.
The basics, our life essentials, now take up close to three-fourths of every family's spending power (it was about 50 percent in 1973), leaving much less left over at the end of the month.
Even though household incomes have risen about 75 percent since 1970, most of that they say, is the result of a second earner, generally a woman, joining the work force. In many cases that added income has been swallowed by rising fixed expenses, such as child care and housing costs, because many people try and buy more house than they can actually afford. The average family now pays at least twice as much for housing compared to what our parents paid in the 1970s.
Four in 10 Americans don't have even one month's worth of savings for use in case of an emergency, according to a survey by HSBC Bank published in 2006. And even with two incomes built into the family budget, the odds of a household getting hit by a layoff have doubled in the last generation. The combination of high housing debt, rising health care costs, lack of savings and greater exposure to unemployment has left many families in a dangerous financial position.
I see the biggest problem being that the largest portion of our budgets are spent on fixed costs like housing, has risen much faster than wages and inflation. That means mortgages, more than lattes, are the source of many of our financial problems.
I now think that the "latte factor" is only being used as a way to distract people from the real changes in the economy.
Monday, October 15, 2007
Roth IRA - - more than just a great retirement investment.
The Roth IRA was first introduced in 1998. Since its introduction, it has become an investment program of choice for a number of our clients because of its versatility.
Like the regular IRA, annual retirement contributions for 2007 to the Roth IRA are $4,000 per person (or $5,000 if you are over age 50) and you have to April 15th to make contributions (Roth IRA contributions are subject to a phase out based on income. You need to be in a qualified income level to contribute).
And, although Roth IRA contributions are not tax-deductible, you may still benefit from the ability to withdraw earnings tax-free.
Here are a few examples of the Roth IRA’s flexibility.
Like the regular IRA, annual retirement contributions for 2007 to the Roth IRA are $4,000 per person (or $5,000 if you are over age 50) and you have to April 15th to make contributions (Roth IRA contributions are subject to a phase out based on income. You need to be in a qualified income level to contribute).
And, although Roth IRA contributions are not tax-deductible, you may still benefit from the ability to withdraw earnings tax-free.
Here are a few examples of the Roth IRA’s flexibility.
- Saving for college tuition? You can draw on a Roth account to help with your child’s educational expenses, and still retain control of the funds. In addition, if you hold onto your account for at least five years and you’re older than 59 1/2, no taxes would apply on earnings. In fact, contributions can be used at any time, free of taxes and penalties.
- Encourage your youngsters to save. If you have children who have part-time jobs, they too can open a Roth IRA.
- Shopping for your first home? If you’ve had your Roth IRA for at least five years, you can withdraw up to $10,000 ($20,000 for couples) in earnings “tax-free and penalty-free” if you use the money for a “first time home mortgage purchase.”
- Passing on your investments to heirs couldn’t be easier. You can bequeath the funds in Roth IRAs to your beneficiaries, who can withdraw money from the account tax-free over a number of years.
- Roths offer great estate planning advantages. Beneficiaries can withdraw money from a Roth account tax-free. And, unlike regular IRAs, there is no minimum distribution starting at age 70 ½, so seniors with earned income can keep investing in the Roth account at any age.
- If you’re a retiree, you don’t have to worry about being pushed into a higher tax bracket with your Roth distributions, since Roth IRA distributions are tax-free.
Keep in mind that a Roth IRA may not be appropriate for everyone. For example, the IRS requires the owner to hold his/her Roth for 5 years or until age 59 ½ (whichever is later) in order to avoid penalties and taxes on the earnings upon withdrawal. To determine whether a traditional IRA, Roth IRA or other retirement investment program is right for your specific financial goals, contact Mike Pozzi, our Hawthorne Credit Union Investment Adviser at (630) 983-2310.
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested.
Friday, October 5, 2007
Slow Down to Save Gas
Here's something I didn't realize...from The Daily Green (thedailygreen.org). This site offers tips to going green and some great healthy recipes, too. Subscribe to their daily emaily newsletter! An article appearing in todays' Daily Green newsletter:
Drive 55 (MPH)
On the highway, try not to exceed a speed of 55 miles per hour. Not only are you less likely to get into an accident, but the faster you drive, the more fuel your vehicle consumes per mile. That means more money and more greenhouse gases.
At 65 mph you’re burning 10% more fuel than at 55, according to the American Council for an Energy-Efficient Economy. At 70 you lose 17% of your fuel economy, and at 75 it’s 25%. The numbers get worse from there.
Even though you may thrive off living in the fast lane, if the national speed limit were reset to 55, it would save 1 billion barrels of oil per year — more than the U.S. imports from the Persian Gulf.
The reason why is simple physics. As your engine heats up at higher speeds, it burns gas faster. Plus, all that increasing resistance from air and road drag you down.
Drive 55 (MPH)
On the highway, try not to exceed a speed of 55 miles per hour. Not only are you less likely to get into an accident, but the faster you drive, the more fuel your vehicle consumes per mile. That means more money and more greenhouse gases.
At 65 mph you’re burning 10% more fuel than at 55, according to the American Council for an Energy-Efficient Economy. At 70 you lose 17% of your fuel economy, and at 75 it’s 25%. The numbers get worse from there.
Even though you may thrive off living in the fast lane, if the national speed limit were reset to 55, it would save 1 billion barrels of oil per year — more than the U.S. imports from the Persian Gulf.
The reason why is simple physics. As your engine heats up at higher speeds, it burns gas faster. Plus, all that increasing resistance from air and road drag you down.
Thursday, September 27, 2007
Hawthorne is Safe from Sub-Prime Mortgage Risk
What's going on in the sub-prime mortgage market? I am sure you have all heard of The Sub-Prime Mortgage Meltdown. According to the New York Times many of the top lenders in the nation are reporting serious losses, filing for bankruptcy protection, or looking for another company to buy them.
Hawthorne Credit Union continues to be a steadfast, strong financial institution. Other financial institutions entered risky ventures by holding sub-prime mortgages on their books, but Hawthorne did not.
Hawthorne maintains high standards in its lending practices, responsible investments and always strives for stable capital. We do not hold sub-prime mortgages on our books, which protects us from risk.
Further, Hawthorne Credit Union is here to stay. Since its inception in 1935, Hawthorne has been serving the people of the Chicago suburbs with honest service at affordable prices. Because we’re a not-for-profit financial cooperative, we’re owned by our members and therefore can’t be bought or sold.
If you entered into a mortgage that is too much to handle, contact our specialists at Hawthorne. Jean Harlowe, our mortgage specialist, can help refinance your loan into one with more affordable payments. For those with more serious needs, Sharon McCroskey, our credit counseling specialist, can discuss options and help find a desirable solution. Contact us at 630-369-4070.
Hawthorne Credit Union continues to be a steadfast, strong financial institution. Other financial institutions entered risky ventures by holding sub-prime mortgages on their books, but Hawthorne did not.
Hawthorne maintains high standards in its lending practices, responsible investments and always strives for stable capital. We do not hold sub-prime mortgages on our books, which protects us from risk.
Further, Hawthorne Credit Union is here to stay. Since its inception in 1935, Hawthorne has been serving the people of the Chicago suburbs with honest service at affordable prices. Because we’re a not-for-profit financial cooperative, we’re owned by our members and therefore can’t be bought or sold.
If you entered into a mortgage that is too much to handle, contact our specialists at Hawthorne. Jean Harlowe, our mortgage specialist, can help refinance your loan into one with more affordable payments. For those with more serious needs, Sharon McCroskey, our credit counseling specialist, can discuss options and help find a desirable solution. Contact us at 630-369-4070.
Thursday, September 13, 2007
September is Life Insurance Awareness Month: It's Time to Stop Gambling with Our Families Financial Futures.
Do you ever wonder what would happen to your family, if something happened to you? The thought is so scary and hard to think about, that a lot of us have decided that the possibility of this is unlikely and it is easier not to deal with the issue at all. Unfortunately there are many times when this solution does not work.
If you have found yourself or a family member in this situation, you know all too well, how true this is. Without the financial means to continue through life without a loved one that you were financially dependent on, the ability to deal with such a significant loss becomes even more difficult.
Gambling has become a popular pastime in America. Consider the craze over the multi-state Mega Millions lottery. Every time the jackpot rises to eight or nine figures, millions of Americans run to their local convenience store for a chance to become the next mega millionaire. Their chance of winning? About 1 in 175 million. The good news: the consequences of losing aren’t usually very severe, since the average investment is only a few dollars.
Contrast that to the financial consequences of dying prematurely and not having adequate life insurance protection. The outcome can be dire. Bills pile up quickly. Mortgage or rent payments get missed. Families are forced to find cheaper housing. Education plans are put on hold. Dreams get dashed.
What’s most frustrating is that all of this financial suffering is avoidable with proper insurance planning. Then why do three in ten adult Americans have no life insurance at all, and most of those with coverage have far less than experts recommend? The answer is simple. We’re a nation of gamblers. But in this particular case, many Americans are taking a bad bet.
Ask a 35-year-old man what his chances of dying are in the next 15 years and he’ll probably say, “Pretty slim”. Actually, he’s right. About 95% of men that age will live beyond their 50th birthday. But of the nearly 2.1 million 35-year-old US men, consider how many won’t live that long. 21,126 won’t live to age 40, 52,817 won’t make it 45, and nearly 100,000 35-year-olds (or 1 in every 21) won’t live to see their 50th birthday.
Most Americans don’t fully appreciate the gamble they’re taking by not having adequate life insurance coverage. The chances of dying too young are much greater than most people realize and life insurance protects your loved ones in case the unexpected happens.
For more details on life insurance or to schedule a no-cost, no-obligation appointment with Financial Network Registered Representative, call 630-983-2310, fill out our request form, or email us today. And watch for upcoming announcements on our no-cost financial seminars.
If you have found yourself or a family member in this situation, you know all too well, how true this is. Without the financial means to continue through life without a loved one that you were financially dependent on, the ability to deal with such a significant loss becomes even more difficult.
Gambling has become a popular pastime in America. Consider the craze over the multi-state Mega Millions lottery. Every time the jackpot rises to eight or nine figures, millions of Americans run to their local convenience store for a chance to become the next mega millionaire. Their chance of winning? About 1 in 175 million. The good news: the consequences of losing aren’t usually very severe, since the average investment is only a few dollars.
Contrast that to the financial consequences of dying prematurely and not having adequate life insurance protection. The outcome can be dire. Bills pile up quickly. Mortgage or rent payments get missed. Families are forced to find cheaper housing. Education plans are put on hold. Dreams get dashed.
What’s most frustrating is that all of this financial suffering is avoidable with proper insurance planning. Then why do three in ten adult Americans have no life insurance at all, and most of those with coverage have far less than experts recommend? The answer is simple. We’re a nation of gamblers. But in this particular case, many Americans are taking a bad bet.
Ask a 35-year-old man what his chances of dying are in the next 15 years and he’ll probably say, “Pretty slim”. Actually, he’s right. About 95% of men that age will live beyond their 50th birthday. But of the nearly 2.1 million 35-year-old US men, consider how many won’t live that long. 21,126 won’t live to age 40, 52,817 won’t make it 45, and nearly 100,000 35-year-olds (or 1 in every 21) won’t live to see their 50th birthday.
Most Americans don’t fully appreciate the gamble they’re taking by not having adequate life insurance coverage. The chances of dying too young are much greater than most people realize and life insurance protects your loved ones in case the unexpected happens.
For more details on life insurance or to schedule a no-cost, no-obligation appointment with Financial Network Registered Representative, call 630-983-2310, fill out our request form, or email us today. And watch for upcoming announcements on our no-cost financial seminars.
Friday, September 7, 2007
We Can Help You Save for the Holidays!
Believe it or not, it’s getting to be that time of year again! Time to start thinking about the upcoming holiday season! I know, you might think I am crazy, but before you know it you’ll be planning Thanksgiving, buying gifts and possibly traveling. Can you see the dollar signs yet?
As far as I am concerned it’s never too early to start saving money and shopping for the holiday season. For some of us, including me, this is easier said than done. In January it does not seem important to start saving for Christmas, since most of us are just starting to try and recover from the financial impact that the previous holiday season has had.
A couple of years ago I decided that I wanted to do something to prepare for the holiday season and make the holidays more enjoyable and less stressful on me and my family. I decided to open a Christmas Club Account at Hawthorne.
This is a savings account that I can deposit money into throughout year to effortlessly build up a nice gift fund. In November the money automatically gets deposited in to my savings account and I can go shopping without having to worry about paying for everything.
Last year I got a late start and only had $300 in the account when the money got transferred, but this year I have been doing better. I transfer $25 - $50 each pay period into my Christmas Club Account. This year when the deposit is made I should have about $800. This will help take some of the pain out of my excessive shopping.
For us, there is not a better way to save money for the holidays than this kind of savings account. So easy & painless!
Click here for more information on the Hawthorne Christmas Club Account.
As far as I am concerned it’s never too early to start saving money and shopping for the holiday season. For some of us, including me, this is easier said than done. In January it does not seem important to start saving for Christmas, since most of us are just starting to try and recover from the financial impact that the previous holiday season has had.
A couple of years ago I decided that I wanted to do something to prepare for the holiday season and make the holidays more enjoyable and less stressful on me and my family. I decided to open a Christmas Club Account at Hawthorne.
This is a savings account that I can deposit money into throughout year to effortlessly build up a nice gift fund. In November the money automatically gets deposited in to my savings account and I can go shopping without having to worry about paying for everything.
Last year I got a late start and only had $300 in the account when the money got transferred, but this year I have been doing better. I transfer $25 - $50 each pay period into my Christmas Club Account. This year when the deposit is made I should have about $800. This will help take some of the pain out of my excessive shopping.
For us, there is not a better way to save money for the holidays than this kind of savings account. So easy & painless!
Click here for more information on the Hawthorne Christmas Club Account.
Friday, August 31, 2007
Get your kids back to school on the right foot!
All the parents I know are so smiley and positive lately and there is a noticeable bounce in their step that I haven't seen in months. Oh yeah, school's back in session!
It’s that time of year again. The back-to-school frenzy has begun. Stores are running sales on backpacks and pencils, and computer companies are pushing laptops for the college-bound group. The money requirements on us hard working parents is back in full swing and once again the question of how to teach our kids how to handle the money that we give them for lunch, books and spending, rears its ugly head.
The Wall Street Journal ran a great column a few weeks ago on allowances. The main point of the article was that you should give your kids an allowance as soon as they can understand that money buys things. Now I am not suggesting that your kids should be paying for lunch or school supplies, or their books in college, but they should understand that now, that additional money needs to be part of your budget.
On Saturday, when we gave Zach his allowance we included additional money for the hot lunches that he wanted to get this week. We explained that we are now paying for this in addition to his allowance. His response was that he earns his money by doing work around the house for us, so that does not count. Not exactly the point I was trying to get across, but at least we tried.
To help you kids start saving money, Hawthorne’s Youth Account is a good place to start and Googolplex for Kids offers fun games & activities for kids of different ages.
I also found some good resources to help young kids understand financial literacy (I think I will need to make sure that visiting these sites get added to Zach’s list of things to do), they include:
Mykidscredit.com answers what you and your kids need to know about credit.
Jumpstart.org promotes financial literacy for K-12 youth. The site isn't especially pretty, but there's lots of good information there.
Consumerjungle.org. Click on students to practice money management skills.
For those of you will college age students, you can help get them off to the right start with some help from Hawthorne.
Student Loans We can guide you through the Federal Family Education Loan Program. Our credit union is an ideal place to learn about the Federal Family Education Loan Program (FFEL). While each loan varies according to your child's financial situation, here's an overview of Stafford and Parent Loans for Undergraduate Students :(PLUS).
Totally Free Checking With no minimum balance and no monthly fees, a student can save money and stay focused on studies. With Family Rewards, the ATM transactions could be free or discounted! The first 6 ATM transactions each month are FREE!
Hawthorne Visa® Check Card Accepted on and off campus, at millions of locations -- including grocery stores, book shops and gas stations. And it doubles as an ATM card, for access to cash. Hawthorne has 57,000 surcharge free ATM locations nation wide. We also offer a FREE easy ATM locator on our web site.
Student Visa® Credit Card Avoid high rate, high balance credit cards sold on campus. Provide your student with our card, which offers a low balance, low rate, no annual fee and a 25-day grace period on purchases. Great for emergencies!
Our student credit card offers a great way for college students to establish a credit history and learn to use credit wisely. The credit limit is $500 and is in the student's name. This card does not require a parent's signature.
Stay in Touch 24/7 You have the option to be a joint owner on the student account, which gives you access to view detailed, up-to-date activity checking account online at www.ehawthorne.org http://www.ehawthorne.org/.
Students out-of-state can call toll-free to access AnyTime® Phone.
Arrange for regular, automatic transfers from your account to your student's. You choose the date, the frequency and the amount. For more details, contact your nearest Hawthorne Credit Union office at 630-369-4070. Or, go online to http://www.ehawthorne.org/.
It’s that time of year again. The back-to-school frenzy has begun. Stores are running sales on backpacks and pencils, and computer companies are pushing laptops for the college-bound group. The money requirements on us hard working parents is back in full swing and once again the question of how to teach our kids how to handle the money that we give them for lunch, books and spending, rears its ugly head.
The Wall Street Journal ran a great column a few weeks ago on allowances. The main point of the article was that you should give your kids an allowance as soon as they can understand that money buys things. Now I am not suggesting that your kids should be paying for lunch or school supplies, or their books in college, but they should understand that now, that additional money needs to be part of your budget.
On Saturday, when we gave Zach his allowance we included additional money for the hot lunches that he wanted to get this week. We explained that we are now paying for this in addition to his allowance. His response was that he earns his money by doing work around the house for us, so that does not count. Not exactly the point I was trying to get across, but at least we tried.
To help you kids start saving money, Hawthorne’s Youth Account is a good place to start and Googolplex for Kids offers fun games & activities for kids of different ages.
I also found some good resources to help young kids understand financial literacy (I think I will need to make sure that visiting these sites get added to Zach’s list of things to do), they include:
Mykidscredit.com answers what you and your kids need to know about credit.
Jumpstart.org promotes financial literacy for K-12 youth. The site isn't especially pretty, but there's lots of good information there.
Consumerjungle.org. Click on students to practice money management skills.
For those of you will college age students, you can help get them off to the right start with some help from Hawthorne.
Student Loans We can guide you through the Federal Family Education Loan Program. Our credit union is an ideal place to learn about the Federal Family Education Loan Program (FFEL). While each loan varies according to your child's financial situation, here's an overview of Stafford and Parent Loans for Undergraduate Students :(PLUS).
Totally Free Checking With no minimum balance and no monthly fees, a student can save money and stay focused on studies. With Family Rewards, the ATM transactions could be free or discounted! The first 6 ATM transactions each month are FREE!
Hawthorne Visa® Check Card Accepted on and off campus, at millions of locations -- including grocery stores, book shops and gas stations. And it doubles as an ATM card, for access to cash. Hawthorne has 57,000 surcharge free ATM locations nation wide. We also offer a FREE easy ATM locator on our web site.
Student Visa® Credit Card Avoid high rate, high balance credit cards sold on campus. Provide your student with our card, which offers a low balance, low rate, no annual fee and a 25-day grace period on purchases. Great for emergencies!
Our student credit card offers a great way for college students to establish a credit history and learn to use credit wisely. The credit limit is $500 and is in the student's name. This card does not require a parent's signature.
Stay in Touch 24/7 You have the option to be a joint owner on the student account, which gives you access to view detailed, up-to-date activity checking account online at www.ehawthorne.org http://www.ehawthorne.org/.
Students out-of-state can call toll-free to access AnyTime® Phone.
Arrange for regular, automatic transfers from your account to your student's. You choose the date, the frequency and the amount. For more details, contact your nearest Hawthorne Credit Union office at 630-369-4070. Or, go online to http://www.ehawthorne.org/.
Friday, August 17, 2007
Sub-prime mortgage worries trigger market correction
Market volatility has increased dramatically in recent weeks. The new high of 14,000 on the Dow Jones Industrial Average on July 19 didn’t last long as the index fell 5.5% by the end of the month. The decline for the broader S&P 500 index was even greater, 6.3% in that same span. The catalyst for the downdraft was the housing market, particularly questions about the impact of rising delinquencies and defaults among lower grade mortgage holders. While housing construction and sales have slowed gradually over the past year, housing’s effect on the overall economy and stock market has been small. Other business sectors have remained strong, particularly those taking advantage of the growing international markets. However, the risk of actual defaults by borrowers in sub-prime mortgages has triggered concerns of losses spreading to other parts of the higher-risk debt markets and severely hurting stocks as well. Other analysts believe investors were seeking a reason to take short-term stock profits after the recent new highs in the markets, and the mortgage market problems merely provided that spark.
While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.
Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.
Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.
Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.
Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested
Everything you NEED to know about Identity Theft
News stories continue to appear about fraud committed with stolen personal information. Why is this so important? In today's information era, it is quite simply easy to have your identity stolen. As your credit union, committed to your financial safety, we feel you need to have the latest information to keep your self and your accounts safe.
Remember Hawthorne will NEVER ask for your personal information, account number, PIN, or any sensitive account information via email. If you receive an e-mail that claims to be from Hawthorne and asks for your account information- you should consider it to be a fraudulent attempt to obtain your personal account data for an illegal purpose and you should not follow the instructions in the e-mail. If you are confused or would like to verify the request, simply call 630-369-4070, 800-848-1697 (outside IL).
Some tips to help you REDUCE YOUR VULNERABILITY are listed below.
Remember Hawthorne will NEVER ask for your personal information, account number, PIN, or any sensitive account information via email. If you receive an e-mail that claims to be from Hawthorne and asks for your account information- you should consider it to be a fraudulent attempt to obtain your personal account data for an illegal purpose and you should not follow the instructions in the e-mail. If you are confused or would like to verify the request, simply call 630-369-4070, 800-848-1697 (outside IL).
Some tips to help you REDUCE YOUR VULNERABILITY are listed below.
- Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED".
- When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check processing channels won't have access to it.
- Put your work phone # on your checks instead of your home phone. If you have a PO Box use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks. You can add it if it is necessary. But if you have it printed, anyone can get it.
- Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel in case your wallet is stolen. We've all heard horror stories about fraud that's committed on us in stealing a name, address, Social Security number, credit cards. But above all- put these photocopies in a safe place!
- Never give your account numbers or Personal Identification Numbers (PIN) to someone who contacts you. The Credit Union (and most other financial institutions) will NEVER ask for your account information or PIN numbers in an email.
- Shred anything with your Social Security Number, birth date, or account number and all credit offers.
- Don’t carry your Social Security card, extra credit cards, passport or birth certificate in your purse or wallet if not absolutely necessary.
- Reconcile your accounts immediately, and challenge any purchases that you don’t remember.
- Cancel lost credit cards immediately. However, the key is having the toll free numbers and your card numbers handy so you know whom to call. Keep a separate list where you can find it quickly and easily.
- Report it to the Credit Union if your checkbook is stolen.
- File a police report immediately in the jurisdiction where your purse or wallet was stolen. This proves to credit providers you were diligent, and it is a first step toward an investigation if one is required.
- If you believe your Social Security number has been compromised, call the Social Security Administration’s fraud line to report it.
- Contact credit-reporting agencies. This is perhaps the most important and least discussed step. Call the three national credit-reporting agencies immediately and ask them to place a fraud alert on your name and Social Security number. With an alert in place, any company checking your credit knows your information was stolen and they must contact you by phone to authorize new credit.
Tuesday, August 14, 2007
Market Jitters
The market volatility over the past few weeks has been significant. Given the turbulence, it is good to hear from an expert (below) to keep everything in perspective. I believe in all markets it is important to keep invested according to a disciplined asset allocation based on your level of risk acceptance. It is also my belief that this is the way to grow wealth long term.
Stay the course!!
Mike Pozzi
Investment Adviser Representative
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested.
Sub-prime mortgage worries trigger market correction
Market volatility has increased dramatically in recent weeks. The new high of 14,000 on the Dow Jones Industrial Average on July 19 didn’t last long as the index fell 5.5% by the end of the month. The decline for the broader S&P 500 index was even greater, 6.3% in that same span. The catalyst for the downdraft was the housing market, particularly questions about the impact of rising delinquencies and defaults among lower grade mortgage holders. While housing construction and sales have slowed gradually over the past year, housing’s effect on the overall economy and stock market has been small. Other business sectors have remained strong, particularly those taking advantage of the growing international markets. However, the risk of actual defaults by borrowers in sub-prime mortgages has triggered concerns of losses spreading to other parts of the higher-risk debt markets and severely hurting stocks as well. Other analysts believe investors were seeking a reason to take short-term stock profits after the recent new highs in the markets, and the mortgage market problems merely provided that spark.
While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.
Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.
Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested
Stay the course!!
Mike Pozzi
Investment Adviser Representative
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested.
Sub-prime mortgage worries trigger market correction
Market volatility has increased dramatically in recent weeks. The new high of 14,000 on the Dow Jones Industrial Average on July 19 didn’t last long as the index fell 5.5% by the end of the month. The decline for the broader S&P 500 index was even greater, 6.3% in that same span. The catalyst for the downdraft was the housing market, particularly questions about the impact of rising delinquencies and defaults among lower grade mortgage holders. While housing construction and sales have slowed gradually over the past year, housing’s effect on the overall economy and stock market has been small. Other business sectors have remained strong, particularly those taking advantage of the growing international markets. However, the risk of actual defaults by borrowers in sub-prime mortgages has triggered concerns of losses spreading to other parts of the higher-risk debt markets and severely hurting stocks as well. Other analysts believe investors were seeking a reason to take short-term stock profits after the recent new highs in the markets, and the mortgage market problems merely provided that spark.
While most business sectors experienced declines in the sell-off, most of the pain was focused on those companies that had benefited significantly and now could suffer direct losses from the extension of the sub-prime loan problems. Home builders, mortgage companies, banks, and brokerage/investment management companies led the decline. Mortgage companies and brokerage stocks were particularly vulnerable due to their more direct involvement in facilitating the development of the sub-prime lending trend. Most of the major banking institutions had long recognized the potential risk of these kinds of loans and avoided significant involvement with either generating or investing in them. Recent second quarter earnings announcements show that severe losses have been contained to relatively lesser quality firms.
Against the fairly isolated sub-prime mortgage problems, second quarter profit reports support the view of a relatively steady economy. Second quarter GDP was better than expected. Reports to date by companies of the S&P 500 show second quarter profits modestly ahead of expectations. Wage and job growth offer support to the continuation of economic growth continuing at least through the year. This in turn leads to greater confidence that mortgage delinquencies will not spread to prime mortgage holders. However, many market analysts believe that market psychology may stay disconnected from the economic data and more focused on headlines surrounding mortgage-related problems for a while longer. This could lead to continued uneasiness among investors and more market volatility in the short-term.
Prepared by: Martin Cosgrove, CFA, Director of Investment Research
Research Department/ING Advisors Network
The views are those of Martin Cosgrove, Research Department, ING Advisors Network, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance information is historical and not indicative of future results. Investors cannot invest directly in indices. Please consult your financial advisor for more information.
Additional risks are associated with international investing, such as currency fluctuations, political and economic stability, and differences in accounting standards.
Financial Network Investment Corporation is an ING company. Affiliates and subsidiaries and/or officers and employees of Financial Network or ING may from time to time acquire, hold or sell a position in the securities mentioned herein.
Securities are offered through Financial Network Investment Corporation, a registered broker/dealer and member of the SIPC. Financial Network Investment Corporation is not an affiliate of Hawthorne Credit Union. Mutual funds, annuities and other investments available through Financial Network Investment Corporation are not insured by the FDIC, NCUSIF or any federal government agency, are not deposits, or obligations of nor guaranteed by Hawthorne Credit Union, or any other affiliated entity. Investments are subject to investment risks including loss of principal invested
Monday, August 6, 2007
Save money on food, by eliminating waste.
Does anyone else waste a lot of money by throwing out food that has gone bad? I always go grocery shopping with the best of intensions. I stock up on fruits and vegetables that I intend to eat soon, but by the time I am ready to use them, or finish eating them, they have gone bad.
When I clean out the refrigerator, I through away more food than I would like to admit. I am always trying to save money on just about everything else, but when it comes to food, unfortunately a lot of our money ends up in the trash.
I am very excited to report that I may have found a solution to this problem that will end up saving my family a lot of money. Yesterday, I saw a TV commercial advertising a product called “Green Bags” by Debbie Meyers. The advertisement claims that these bags will prolong the life of fruits and vegetables up to ten times as long. The bags control humidity and moisture build up, which discourages mold, bacteria, fungus and decay. They also help reduce vitamin loss by up to 50%.
Last night I went to the web site, http://www.buygreenbags.com/ and bought 20 of these bags for $9.99, and the bags can be used 10 times each. I will let you know if they work.
When I clean out the refrigerator, I through away more food than I would like to admit. I am always trying to save money on just about everything else, but when it comes to food, unfortunately a lot of our money ends up in the trash.
I am very excited to report that I may have found a solution to this problem that will end up saving my family a lot of money. Yesterday, I saw a TV commercial advertising a product called “Green Bags” by Debbie Meyers. The advertisement claims that these bags will prolong the life of fruits and vegetables up to ten times as long. The bags control humidity and moisture build up, which discourages mold, bacteria, fungus and decay. They also help reduce vitamin loss by up to 50%.
Last night I went to the web site, http://www.buygreenbags.com/ and bought 20 of these bags for $9.99, and the bags can be used 10 times each. I will let you know if they work.
Friday, August 3, 2007
Teaching Your Kids Savings Tips Along the Way
Certainly, summer is the time for vacations, travel, family adventures and a savings tip or two for the kids along the way.
We just got back for a short trip to Naples, Florida a couple of weeks ago, (yes, if you are wondering, it was very hot) and just like after every other vacation, when we got home I wondered where did all of our money go. Between the airfare, the car and dinning out all time, we ended up spending more than I had planned on. The next time we go on vacation, I’ve promised myself that we will save in advance by opening a Vacation Savings Account at Hawthorne.
One of the vacations savings tips that I have passed on to Zach is to never buy anything in an airport. This conversation started, because on our way through the airport for our departure we walked by the airport book store and he saw the new and last Harry Potter book, Harry Potter and the Deathly Hallows.
He went on to tell me how much he wanted to read the book and that he just had to have it, (he is only six and is not capable of reading the 759 page book, but of course I did not want to tell him that). I explained that you should never buy anything in an airport, because it is always much more expensive. The book in the airport book store was $50.
Once we were sitting down waiting to board the plane, I took out my laptop and we looked on the Walmart web site to find that the book would only cost $17.86 if we bought it there. He could not believe the price difference. After seeing this he said that we would definitely need to wait until we got home (not that he had a choice, but it was nice that he could figure it out on his own).
Since we've been home, I let Zach buy the book at Walmart with some allowance the he has saved up. I also overheard him in his room talking with his friend Joe, a couple of days ago. He was telling him that he should never buy anything in airport because it cost much more than buying the same item in a store. He continued to tell Joe about the Harry Potter book at the airport book store.
It made me feel good to think that some of the life lessons that I am trying to teach him along the way, may actually stick with him. Only time will tell.
We just got back for a short trip to Naples, Florida a couple of weeks ago, (yes, if you are wondering, it was very hot) and just like after every other vacation, when we got home I wondered where did all of our money go. Between the airfare, the car and dinning out all time, we ended up spending more than I had planned on. The next time we go on vacation, I’ve promised myself that we will save in advance by opening a Vacation Savings Account at Hawthorne.
One of the vacations savings tips that I have passed on to Zach is to never buy anything in an airport. This conversation started, because on our way through the airport for our departure we walked by the airport book store and he saw the new and last Harry Potter book, Harry Potter and the Deathly Hallows.
He went on to tell me how much he wanted to read the book and that he just had to have it, (he is only six and is not capable of reading the 759 page book, but of course I did not want to tell him that). I explained that you should never buy anything in an airport, because it is always much more expensive. The book in the airport book store was $50.
Once we were sitting down waiting to board the plane, I took out my laptop and we looked on the Walmart web site to find that the book would only cost $17.86 if we bought it there. He could not believe the price difference. After seeing this he said that we would definitely need to wait until we got home (not that he had a choice, but it was nice that he could figure it out on his own).
Since we've been home, I let Zach buy the book at Walmart with some allowance the he has saved up. I also overheard him in his room talking with his friend Joe, a couple of days ago. He was telling him that he should never buy anything in airport because it cost much more than buying the same item in a store. He continued to tell Joe about the Harry Potter book at the airport book store.
It made me feel good to think that some of the life lessons that I am trying to teach him along the way, may actually stick with him. Only time will tell.
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