Save Money by Paying Bills
Susie Hayman is the owner of In Your Business Professional Organizing Services (www.inyourbizness.com). Susie has been in the organizing business since 2002, and is a Golden Circle member of NAPO (National Association of Professional Organizers) and President of the NAPO-Richmond Chapter.
It’s easy to become frustrated by rising costs and unexpected expenses. It’s equally overwhelming to go through the process of paying bills.
Sometimes, looking at bill paying from a different, and even positive perspective, can alter the way we view that dreaded routine. The nature of when and how we pay those bills can actually save us time and money.
Using our bank’s bill pay system to pay our bills online saves us the expense of stamps and additional checks; and, we don’t have to drive somewhere to place them in a secure mailbox. It’s easy to set up and there are various options – we can schedule payments each month, schedule recurring payments or automatic deductions, even get e-mail reminders. Also, think of the time we save to do something really fun!
Paying our bills on time avoids the dreaded late fees. How many times have we forgotten or misplaced a bill? Keeping our bills organized and together, and scheduling when we pay them will eliminate those extra unnecessary expenses. Again, having an organized system in place for paying bills, will give us time to do other things.
Paying for what we buy when we buy it is the ultimate and ideal money-saving way to go. Aside from paying those credit card payments in full to avoid interest charges, there are small ways we can save dollars. Many professionals and service providers (hospitals, insurance companies, and contractors) offer percentage discounts for payment early or payment in full. When we have the cash accessible to do this, it’s a win-win for everyone!
So, are paying bills and saving money an oxymoron or can we accept that paying our bills online, on time and in full or early will save us money and maybe even earn some?
If you have questions or comments, please contact Susie at susie@inyourbizness.com.
Get It Together - The real-world money guide for graduates
Have you ever wondered what would happen if you knew now what most people don’t know until well into their 40s or 50s? What if you had the wisdom to make the right financial choices without having to learn from experience first? And if you could get all of this knowledge in an easy-to-read, easy-to-understand interactive book, wouldn’t that be great????
Get It Together – The real-world money guide for graduates, is a guide to personal finance that includes everything from understanding one’s paycheck to mastering credit, debt, taxes, investments, and health insurance, student loans, and everything else associated with heading out on one’s own after school. Authored by Shannon Prosser and Hallie Hawkins, this interactive book makes a great gift for high school or college graduates.
Make More Cents asked Prosser and Hawkins to answer some of the key financial questions a graduate might have.
What’s the single most important financial thing to do now that I have graduated?
The most important thing to do financially is to start building up your credit and your savings. Both of these things will give you the financial foundation you want as you build your future. The savings you accumulate now will have more time to grow – so start saving!
Do I need to have a credit card to establish good credit?
Having a credit card account that you manage well is a great way to establish credit. Be careful, charge only what you can afford and pay it off every month. Do this and you will start establishing great credit.
What should I do first: invest, save, or pay off my loans?
All three. You can pay down your debt and save for both the long and short term all at once. The best way to do this is to separate your money into “buckets” and create a goal and a monthly contribution amount for each bucket.
I have my first job. How much of each paycheck should I put away?
20% of your paycheck should go to savings, and this should be split between short and long term savings. This is a great time of life to build up a cash reserve while you have fewer obligations and expenses than you may in the future. And the habits you create now will be with you forever!
I’m thinking of buying a house. How will I know it’s the right time in my financial life?
Buying a house is about more than just the house, it is about making a good decision about a financial commitment you will have for years to come. Think about how long you plan to be in the area, how much you can afford to put down on a house, and the stability of your income. If you think you may move in the next few years you should reconsider buying a house. If you are going to be there for a while, have a steady income and a down payment, buying a house may be a good option.
What should I think about financially if I want to go back to school?
The first thing to think about is why you are going back to school. What will the next round of schooling allow you to do that your current education will not? Then figure out how much you can expect to make in your new profession when you gradate – and be realistic, do some research, talk to people in the field. Then figure out how much it is going to cost you to go back to school. Evaluate the cost and the rewards like a business decision, does it make sense both personally and financially to go back to school?
Is my credit score really that important?
In a word –YES!!! Your credit score is important because it is not just used to get credit. It is used by employers as a way to evaluate your level of responsibility. It is used by insurance companies as a part of their calculation of your insurance rate. And of course it is used by financial institutions and lenders when they decide if, and at what interest rate, to lend you money.
What’s more valuable in a job offer, a high salary or good health insurance?
Both are important – look at the numbers. A company can tell you what it costs them to insure you and any dependents you may have. As with all things, know what you need and how much you are willing to pay for it. If you are in good health then a basic plan accompanied by a job with a high salary may be right for you. If you have health issues, then great insurance may offset a slightly lower salary.
When should I start saving for retirement?
NOW! Do not pass go – start saving for retirement. Even if you can only put away a small amount each month because of debt and short term saving needs, put away something. The money that you save now will have time to grow, and time is the best thing that you can give your money. In this case, a little can eventually go a very long way.
I can’t afford my student loan payments, what do I do? Do I really have to pay it all back?
Yes, you do need to pay back your loans. There are special circumstances that you may fall into where you do not have to pay back all of your loans, but don’t count on it. Even if it is a small amount each month, start paying something.
I want to buy a car, what should I know?
Before you step foot into a car lot know exactly how much you are willing and able to pay for a car. Know how much you have for a down payment, and how much you can pay monthly. I recommend that your car loan be no more than 48 months. There are many online calculators that will help you, put in the amount you want to pay each month, the amount of time you will pay, and the interest rate and it will tell you how much the total car cost can be.
For more financial wisdom purchase Get It Together – The real-world money guide for graduates.
Chris
Chris Hayman
804-360-8337
Helping Children to Start Saving
Many people ask me how to get kids started on the path to saving. Here are some very basic tips to begin to build a good understanding of money management and start them on the journey:
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Begin having conversations about saving as soon as children learn to count. Once children start asking you to buy things, they are ready to learn about being responsible with money.
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Give your child a bank and encourage them to start saving. Banks now come in a wide variety of styles and capabilities, from traditional piggy banks to digital coin banks that count and track your savings. Clear banks work well as they allow you to see your coins increase and motivates children to continue to save.
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Give money gifts or allowances in small bills or coins, so that a portion of it can be saved.
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Periodically, empty the bank and, together, count the accumulated savings. When the bank is full, open a savings account for your child. Many banks have saving clubs that offer special incentives and “freebies” for children who open a savings account.
Keep on saving,
Chris
Chris Hayman
804-360-8337
The Power of Loose Change
For many people loose change is just an annoyance. It weighs down your purse, clutters your desk drawer or accumulates between the sofa cushions.
Factoid: Coinstar estimates that there is over $10 billion in loose change hiding in people’s houses. That is an average of $85.00 per household.
For some, loose change represents a saving opportunity. I am one of the latter, who uses the accumulation of loose change as a way to contribute to a rainy day fund, vacation or general savings. Every evening, I dump any loose change I have into my money jar; sometimes I even throw in a few dollar bills. Once, I accumulate $75.00-100.00, I send it in to Sharebuilder and use it to buy stocks. This is money I do not miss, and now I have that loose change working for me.
At a holiday gift show, I had the opportunity to hear loose change experiences from my customers. Many who purchased our giant bottle banks had a unique story to tell about how much they had saved. One customer dumped all her silver coins each day in the bottle and in 1 ½ years, she had enough money to go to France on vacation. She said she never missed the change she they dropped in every evening and was astonished at the amount she saved.
So get a money jar, coin bank, or a recycled mayonnaise jar – it doesn’t matter – and start saving that change. Unleash the power of loose change and let it start it working for you!
Keep on saving,
Chris
Chris Hayman
804-360-8337
Monetary Rewards and Your Child’s Health
Obesity is a serious health concern for children and adolescents. Recent studies estimate that 17 percent of children and adolescents ages 2-19 are obese. Experts agree that the lack of physical activity and poor eating habits are contributing factors to this national epidemic.
Mike Heppert, a physical education professional, has developed a unique solution to this serious problem. Mike has developed the Physical Activity Rewards System or P.A.R.S. Using rewards as an incentive, P.A.R.S. is a designed to increase physical activity and decrease sedentary time. Here’s how P.A.R.S works:
- Parent and child agree on rewards for pre-determined amount of time spent in physical activity.
- The time is tracked and measured with the Polar Activity Watch.
- Time is uploaded to the P.A.R.S. software
- The P.A.R.S. software tracks the earned time against the goal.
Once the child reaches the goal, he or she receives the agreed upon reward. Some P.A.R.S. families have used monetary rewards with great success. Families can make the reward a fixed monetary amount for an increase in physical activity, or they can determine a variable amount based on the time spent in physical activity.
As the saying goes, “You cannot manage what you don’t measure.” P.A.R.S. utilizes scientific research that shows how rewards affect behaviors. Behavioral studies have told us that frequent monetary and social rewards for increased physical activity and better nutrition can help young persons achieve and maintain their ideal weight. Additionally, corporations and insurance companies are on the bandwagon, by offering cash rewards or reduced premiums to adults who adopt healthy lifestyle changes.
To find out more about Mike Heppert and New Way Fitness’ Physical Activity Rewards System, visit their website New Way Fitness or e-mail Mike at Mike@newwayfitness.com.
The Beach…..Sun Screen……Money Management
Make More Cents, welcomes our guest blogger, Paul Richardson. Paul is the Founder of 9to5MoneyCamp, LLC. Check out his book titled “The $52.00 Pizza.” Sign up for his sometimes humorous, always timely and targeted e-newsletter titled “ The Piggy Bank Gazette.” E-mail him @ 9to5MoneyCamp@comcast.net to receive this monthly gem. Friend him on Facebook/The $52.00 Pizza!
Parents, helping children understand the money basics need not take a holiday just because they are out of school. In fact, this just might be the best time. Just remember to keep it light, interactive and fun. Check out these five fun ways to get your money message across during the coming months. Buy your copy of The $52.00 Pizza on Amazon.com today!
- What language do young folks understand…the e-language of course! While driving (no accidents please) to your vacation spot this year, text them Top Ten, Did You Know, Funny Money Trivia type questions, all based on money concepts. It keeps things fun and upbeat, while laying the foundation for future money “talks”.
- Mobile Needs vs. Wants: Play this game while traveling to grandma’s house, the Grand Canyon, the beach or to the practice field. See a sign, billboard, commercial; on-line or off? Determine if that product or service is truly a need or want. Have the kids state their answer, debate it, talk about it. Remember, no right or wrong answer. No judging. This is an excellent teachable moment and so very revealing. Unscripted communication is powerful!
- Race the Clock: See how many different ways your kids can make change combinations from a dollar. Use a stop watch, have time limits, play a specified amount of rounds. Winner donates a portion of change to a charity or church. Dual purpose; this game keeps their math skills sharp. BTW: 293 different ways to make change. Did you know that?
- Tech Wizard: Kids love video games. Why not incorporate technology and learning about personal finance? Play into their strengths, better results. Check out The Great Piggy Bank Adventure, this interactive game teaches kids ages 8-15, about saving, having goals, spending wisely and basic investing. This is truly the 21st Century model for success. Parents, I dare you to play this game, can you best your child’s score? Play in the car or at home.
- Garage Sale Saturday: Led by the kids (supported by parents) in the neighborhood. Have them do the marketing, setting up, delegating, collecting, tagging and negotiating. A portion of the individual proceeds go to a predetermined charity and their college fund. Fun and learning: The best teacher!
April is Financial Literacy Month
April is Financial Literacy Month. This is the perfect time to start educating your children about financial literacy and basic money management. Use our age-based plan as a guide and create a teaching curriculum for the month of April. Give your kids the financial literacy, personal finance and money fundamentals to ensure their success!
Ages 3-5
- Start teaching kids about money as soon as they show an interest.
- As they learn to count, teach them the difference between pennies, nickels, dimes and quarters. Playing “store” with children, using real change to buy things, is a fun way to teach them the value of the coins.
- Give your children banks and encourage them to start saving. Banks now come in a wide variety of styles and capabilities, from traditional piggy banks to digital coin banks that count and track your savings.
- Introduce the concept of “needs vs. wants.” Talk with your kids about prioritizing the things they need versus things they would like to have.
Ages 6-10
- Start your children on allowances, teaching charity, discipline and goal-setting. Keep allowances reasonable and the process simple. Allowances can be linked to chores or spending/saving responsibilities.
- Educate your children on the simple money management strategy of allocating a certain amount of money to save, spend and share.
- Use shopping trips and coupon clipping as opportunities to talk to your kids about finances.
Ages 11-15
- At this age, kids can earn additional money. Make sure they have a bank account and get in the habit of depositing money on a regular basis.
- Involve your children in family discussions around budgeting and goal-setting for large purchases. Studies have shown that family financial discussions are critical to having financially confident children by the time they are 18.
- Expose them to more complex financial terms and concepts, such as the stock market, IRAs and saving for college.
Ages 16 and Older
- During this period, kids need to acquire the basic skills to live independently — managing a checking account, using ATMs and credit cards properly.
- Have your children be responsible for paying a portion of their cell phone, clothing and entertaining.
- Work with your kids on making the right money choices, rather than succumbing to peer pressure.
- Begin setting expectations for college. How much of the cost will they be responsible for?
Keep on saving,
Chris
Chris Hayman
804-360-8337
Did You Know We Have A New Penny?
With little fanfare, a new penny was unveiled on February 11, 2010. The penny received a partial facelift as part of the 2005 Presidential $1 Coin Act. Although, “Heads” remains the same, “Tails” is now a union shield with 13 vertical stripes representing the original colonies that formed the union.
The shield replaces the long term image of the Lincoln Memorial, and the four reverse designs that commemorated last year’s 200th celebration of Lincoln’s birthday. The shield is symbolic of President Lincoln’s preservation of the union as a single, united country.
I continued to be amazed at the resiliency of the penny. In spite of the fact that it costs more to make than it is worth and the many foes fighting for its repeal, the modest little penny seems to have “nine lives.” Thanks to Congress, this new design update has gives the penny another “life” and ensures that it will continue to be around.
For more thoughts on the penny’s survival, visit our blog post, The Penny Controversy, April 2009.
Factoid – The term, heads or tails, was derived from a coin-flipping game that can be traced back to the Romans. During that period, it was typical for coins to have a ship on one side and the head of the emperor on the other.
Keep on saving,
Chris
Chris Hayman
804-360-8337
Gumball Machine Banks Stand the Test of Time
Growing up, I had a gumball bank, and it was always fun to see how much gum I “bought” and how much money I deposited in my savings account. We recently started carrying gumball machine banks at Make More Cents. I did some research to learn more about the history of the bank and was surprised to learn that gumball machines date back to the early 1900s. Although, vending machines that dispensed gum were around as early as 1888, gumball machines did not make an appearance until 1907.
Make More Cents chose to carry machines manufactured by the Ford Gum Company, who started making gumball machines in 1934. At one point, Ford had over 500,000 vending machines on counters and pedestal stands all across the United States. The banks we sell are replicas of the vintage antique banks that Ford has manufactured for 76 years. Little has changed about the banks, with the exception they have been updated to dispense candy and nuts, as well as gumballs.
Keep on saving,
Chris
Chris Hayman
804-360-8337
Moonjar Moneybox Savings Bank – The New Piggy Bank
Three Compartment Piggy Bank - Spend, Save and Share
Make More Cents is proud to announce the arrival of the Moonjar Moneybox Savings Bank. The award winning Moonjar Bank is an enlightened version of the classic piggy bank. Instead of the one-slot to deposit savings, the retro-tin Moonjar consists of three boxes that form a six-sided bank into which children can make three types of deposits. Money they plan to spend goes into the green box; money they plan to save goes into the blue box; and money they intend to share goes into the red box. The Moonjar is created for visual and kinetic learners, kids have a place to set goals and track their progress with this teaching bank whether it is $10 to buy a gift or $10 to send to Haiti, they are learning to make choices and understand the budgeting of those choices!
Created in 2001, by Eulalie M. Scandiuzzi, the Moonjar is a tool for children and families to integrate strong financial values and practices into their daily lives. “You want to teach them responsible spending along with their role in society,” says Ms. Scandiuzzi. “Our mission at Moonjar is to help children and families learn the three basic principles of money management: saving, spending and sharing.”
To implement the save, spend and share concept at your home, Moonjar recommends the following:
- Start the conversation about money early – You can begin conversations about money concepts with your children as early as 4 or 5 years.
- Encourage money as a means, not an end – Discuss the difference about wants versus needs with your kids.
- Make giving a family event – Create a monthly family night where you discuss causes and share ideas for giving.
- Set goals and priorities – Use pictures to help visualize the children’s giving goals and attach them to the Moonjar as ever-present reminders.
- Allow for choices and decision making – Be supportive of the choices your children make.
- Be positive role models – Parents should make their own giving visible, whether putting the donation envelope in the mail together, or clicking the send button for the online donor form.
Keep on saving,
Chris
Chris Hayman
804-360-8337
