Twila Van Leer

Cut Costs on College Textbooks

August 22, 2014 By Twila Van Leer

Save money on college textbooks by buying used books.

After tuition, the biggest financial challenge for many college students is the soaring cost of textbooks. On average, students pay about $1,200 per year on class texts and other materials, according to the College Board, whose members represent colleges universities and other educational institutions.

The costs rose about 6 percent a year from 2002 to 2012, about three times the rate of overall inflation, the Government Accountability Office reported. One of the reasons is the frequent issuing of new textbooks with little new material. Many texts also include workbooks and other supporting materials that boost the cost.

In 2008, the Higher Education Opportunity Act was passed, requiring publishers to inform college faculty about the content of textbooks along with pricing. Schools also are required to list a textbook’s price and the ISBN (International Standard Book Number) in course registration materials. The information is expected to help students to make decision as to whether they should buy new or used or rent a text.

There are some options that reduce the costs for students who are textbook shopping:

Armed with the ISBN, you can shop online. Punch in the numeric code and you can do some comparison shopping. One for-instance: college freshmen required to have “Campbell Biology” for their classwork will find the new copies selling at $241. But a used copy often will be available in the neighborhood of $181. Use comparison pricing websites to find even better deals – as low as $30 per copy. Remember that shipping times and fees will vary. Not all online dealers have refund policies. And not all used book have the CDs or electronic codes that access course content online. You’d have to buy them separately.

It is possible to rent textbooks, either from online retailers or college bookstores. Most of the 3,000 members of the National Association of College Stores now offer rentals. Most rental agreements are for an entire term, including the final exam period. The renter is required to keep the items in good repair and it may not be possible to jot notes in the margin as you might do with your own property. Renting has the advantage of not having to resell or store the book. The renter will tack on fees if you are late returning the text, and the supplementary materials that are assigned with many textbooks would have to be arranged for separately.

Many assignments can be read online. Consider an e-text. Digital books can also be rented at a fraction of the cost of buying a new textbook. There is no need for a dedicated reader. You can access the materials on most devices. Most have tools that assist you in highlighting and taking notes. Most young students today are comfortable with this kind of learning, but for those who didn’t grow up with computers, there may be a period of adjusting.

Work At Home? Balance Job, Family

August 15, 2014 By Twila Van Leer

Over 18 million home based businesses exist in America today.

Home-based businesses have gained respectability in the economic arena as their numbers have grown. The Bureau of Labor estimates that 18.3 million home-based businesses now exist in the country and some other sources say that number is too low, that there probably are closer to 38 million such businesses.

Maintain A Healthy Balance

That means a lot of people are balancing the competing demands of their work and their households, where children and other necessities make their presence felt. It’s the epitome in convenience coupled with the challenge of keeping on track, given the push and pull of two major demands under one roof.

There are some compromises to be made. Volunteering for school or charity work may have to be put on hold until it can be successfully undertaken without sacrificing time that might be spent adding to your income. The at-home business person may have to create a personal gauge for measuring what is most important on a day-by-day basis.

And unless the person who works from home is well-disciplined, there is a tendency to skip work for what seems at the moment to fall into that “important” category.

Schedule Your Time Wisely

The solution, experts say, is to set definite boundaries and firm time schedules. If your children know from long experience that from 10 a.m. to 3 p.m. is your work time, they will likely respect that time frame. On your side, it is necessary that you remember not to become so immersed in what you are doing that you forget it’s time to prepare dinner. When it’s time to shut down the computer, shut down the computer. If the schedule is maintained consistently, all parties will benefit. Some at-home workers say they wait until everyone else is in bed if they have left-over work that just won’t keep, rather than violate the accepted routine.

Scheduling important calls for times when children are occupied will save the embarrassment of having them interrupt. They’re famous for that, inevitably picking the moment that the call goes through to engage in an argument or otherwise disrupt your business. If they have a regular nap time or are in school, that’s the time for important calls.

Include Family Members As Partners

Getting the children on board as invested partners in the business is smart. Let them see how the results of your productivity affect them positively. When you have a particularly successful period at work, get them a special treat and be sure they know that the treat is the result of uninterrupted time at your work. As one mother described how it works for her, “They know that their job is to play so that Mommy can work.” A father said he gives his growing boys assignments to make their home business succeed. “The boys have both expressed interest in running their own business some day,” he said. “They are getting a daily education that you wouldn’t be able to get any place else.

A Positive Attitude Helps

Stay positive. When the going gets tough, recite the benefits: No travel to work. No boss. Little or no overhead. Freedom to set your own parameters. A greater amount of control over your own financial destiny. Flexibility when you really need it.

Believe in yourself. If you don’t believe you can make your home business work, it won’t.

Back-to-School Spending? Be Wise

August 11, 2014 By Twila Van Leer

The signs are there. The ads are appearing. The merchants are gearing up for what is a shopping frenzy second only to Christmas. The excitement of starting a new school year is spreading through the K-12 set, and Mom and Dad are anticipating the annual crick in the budget as they prepare.

The National Retail Federation predicts the average family with children in K-12 will spend $669.28 on clothing, backpacks, electronic gadgets to aid classroom work and other school necessities. The figure, the federation says, is up 5 percent from last year.

Many merchants give a hand-up by offering discounts and in some states, the politicians have looked at the situation and enacted sales tax holidays for items specifically related to the back-to-school spenders. Shoppers should stay aware of sales and perks and shop when the advantages are greatest.

An Associated Press article offers five ways to ensure that you don’t go into the annual holiday spending cycle still staggering from the school expenditures:

Make a budget. Knowing what you can afford helps you approach the list of what you need realistically. Calculate the costs of school supplies, clothing, shoes and what-nots and make it match the budget. Starting off without a brake can end in disaster. Look back at the preceding year, if possible. The list of required items likely will not have changed dramatically (although you might expect a little more expense as your child moves up the education ranks.) Don’t spend money on what is nice (fancy desk sets, etc.) but not necessary.
Shop on tax holidays if they are offered in your area. A dozen-plus states offer a break from taxes on certain purchases. Times usually are limited, usually three days’ window. You can save 3 percent to 7 percent on average. Most of the state plans target items that cost less than $10. In some states, routine school supplies are on the list of tax-free items and some include computers, which have become indispensable in many schools. Remember that local sales taxes won’t be included in the break. And if you are shopping online, the good must be sent to an address within the area affected by legislative largesse. You can learn if your state is one that does offer the holiday by going to tax admin.
Be wary of over-using credit. Stores sometimes offer special deals on their own credit cards, especially during times of traditional heavy spending. But look before you leap at what looks like a good deal. Especially if you will not be able to pay down the balance before interest kicks in, you may pay more than you want to. The interest charged on these cards usually is in the 15-to-19 percent range.
Comparison shopping takes a little more time, but can save money. Be aware of the prices of clothing and school supplies such as notebooks, in particular. Most stores have them on sale. If you’re going online, remember to factor in shipping costs. Use smartphone apps that compare prices, such as PriceGrabber and RedLaser. Users scan the bar code on a product and the app lists stores where the item is available and at what price. Some online sites such as Goodshop.com, offer coupons good at more than 5,000 stores. They then donate up to 20 percent of your purchase to a school or other charitable cause.
Wait a bit. Resist the hype in the back-to-school ads. After the initial push is over, many stores begin to clear their shelves to get ready for the upcoming holidays. Unless the immediate need is urgent, buy a minimum number of supplies to get your children started and then re-supply when the clearance sales are in full swing.

How To Save More Of Your Income

August 8, 2014 By Twila Van Leer

AARP Offers Many Good Suggestions For Saving Money

The annual AARP list of 99 ways to save money is out and it offers these nine suggestions to reduce your expenditures on financial matters:

Auto Insurance

Shop around for auto insurance. Insurers use a tactic called “price optimization.” That means they raise premiums based not on risk factors, but on how much of an increase they think you will accept. When it comes time to renew your insurance, bargain with your insurer for a better rate.

Pay Raises

Before you are called into human resources to discuss your next raise, ask for a salary range that informs you of the low-to-high range the company pays for a particular job. Knowing where you are in the range can become the basis for negotiation. Perhaps understanding the range will be impetus for more training so you can move up.

Credit Scores

Don’t pay for a credit score. It can be obtained free from Creditkarma.com or Credit.com or from Sharpen Your Financial Focus through its website, Sharpen Today.org.

Delay Social Security

Plan ahead on your Social Security. If you have reason to think you will live beyond age 80, wait until you are 70 to begin collecting so you will get the maximum benefit. If you are a couple and feel it likely you will live past 80, let the partner who had greatest earnings delay collection.

Home Renovations

If you are considering house renovations, these changes are considered the most likely to enhance the value of your property: Replace the front or garage door, add a deck, turn an attic space into a bed/bath or update the kitchen. That‘s from Remodeling Magazine’s 2014 cost/value report.

Divide Payments On Credit Cards

When you have heavy credit card expenditures, consider paying the bill in two increments instead of one monthly payment. Paying on time is the most important factor in calculating your credit score. Next is the percentage of credit you have available. People with the highest scores keep utilization under 10 percent. Paying your bill in two payments in a month keeps a lid on this number.

Tax Diversification

Consider tax diversification in your 401k. Like Roth IRAs, many Roth 401k’s allow you to put in money on which you already have paid tax. Then you may withdraw it at retirement tax-free. If there is a possibility your tax bracket will go up in the future, these tax-free dollars stashed in a 401k now be even more valuable.

Look at your banking institution. Some smaller banks and credit unions offer more than the going interest rate (about 2 percent) on checking accounts, even with balances of $10,000 or more. You’ll have to make direct deposits, in all likelihood to reap this benefit.

Talk to the vet who cares for your pets and see if he offers drug discounts or will provide samples of medications free. Ask if you can fill the vet’s prescriptions at a pharmacy for humans. Walmart and some other pharmacy outlets provide a $4 prescription price for many medications, which could save you money.

Child Care Is A Huge Expense

August 6, 2014 By Twila Van Leer

You child care costs can equal a year's college tuition. Have you added this expense to your budget? — You child care costs can equal a year’s college tuition. Have you added this expense to your budget?

Many women who opt to work to supplement the family budget quickly find that child care can make a huge dent in their contribution. The annual cost of infant care can equal a year’s tuition at a community college in 31 states, according to an article in Working Mother.

The options are many and you need to choose the type of care that you want for your child, and also fits into the budget comfortably.

Here are some alternatives, including the likely cost:

NANNY: Nannies are professionals. Some will live in your home and, besides caring for your child, will do housekeeping and meal preparation. They may assist with the child’s homework, take him or her to school and other events, such as play dates. The annual cost? About $36,275 yearly average. The wages may be tax deductible and eligible for flexible spending reimbursement. Working women whose jobs require unpredictable hours or frequent travel may find this the best option, even though the cost is commensurately high. Having just one caretaker may pose problems if the nanny becomes ill or otherwise unavailable and you have to find a replacement in a hurry.

CENTER-BASED DAY CARE: Much like a school, large day care centers often accept children in different age groups and provide multiple caregivers. They may offer amenities such as kindergarten preparation and instructive field trips. The average annual cost for full-time infant care is $3,863 to $16,430. Prices generally decrease as the child becomes older and does not need the same level of care. The cost may be tax deductible and eligible for FSA reimbursement. This mode of child care is most ideal for moms who have routine hours and who want their child to mingle with peers. The centers are not usually flexible for those who work early or late and may impose an extra charge – sometimes as much as $15 for every minute you are late. Problems may arise when the child is sick or cannot attend day care for any reason.

IN-HOME CARE: Providers in this category usually have small groups of children in their own home. The home atmosphere is attractive to many working mothers, and the annual cost is lower – $3,930 to $11,046 for full-time infant care. While the least expensive of the options, and offering the chance for a child to interact with a small group, the downside is how to provide when the caretaker is unavailable for any reason. (Most states have regulations and licensing standards for those who provide in-home care. Check.)

AU PAIR: Primarily young people 18 to 25 from other countries, who provide up to 45 hours a week of child care in your home. Light housekeeping and meal preparation are often part of the arrangement. Parents pay a stipend, provide a private room and meals. The average annual cost is $18,722, regardless of the number of children. The advantage for your children is exposure to another country’s culture and language and in-home care. The fee includes $500 a year toward the au pair’s enrollment in a local post-secondary education program. A two-week paid vacation is required. Wages may be tax deductible and FSA eligible. Agencies such as Au Pair in America arrange services. On the downside, au pairs are in the country on one-year visas, with possibility for one-year extensions, so continuity is not guaranteed.