Don’t Let Your College Kids Break the Bank

If your child is getting ready to leave for college or has already flown the coop, you know how expensive it can be. Tuition is only part of the cost. There’s also housing, meal plans, books, lab fees and spending money. If you don’t set spending boundaries in the beginning, your college student could become your biggest source of financial stress.

Here are some tips to help you set boundaries and avoid unexpected additional financial stress.

Be sensible about textbooks. When I was in college, there was only one way to buy books – at the campus bookstore. Now kids can rent textbooks, buy them online and even get some in an e-book format. If you buy them in person, look for used books in good condition. At the end of the semester re-sell the books your student no longer needs, either online or where you bought them, and use that money for books the following semester. I actually re-sold one of my college books online, 15 years after I used it, for $32.

Buy a meal plan. These can be expensive, but at least you know your young adult is eating something. My nephew was a college student who didn’t want the meal plan but was too proud to ask his mom for money. Some days he didn’t eat at all. A meal plan gives them access to food and keeps them from spending so much on fast food.

Set spending limits. My parents paid my car insurance when I was in college. I had to buy my own gas and come up with my own spending money. If you don’t want to be that parent, set spending limits. Have a specific amount deposited to the student’s account every pay day. If they run out, they have to wait until the next pay day like a grown up does. You might give them a credit card for emergencies, but put a limit on the card in case their definition of emergency is different than yours.

Remember Neighborhood Credit Union is here to help. Neighborhood Credit Union offers you a variety of tools to help manage your finances and teach your college student about money management. FinanceWorks is an easy to use budgeting tool and a complimentary service of Neighborhood Credit Union. Simply log-in to online banking and click the 'FinanceWorks' tab to get started today!

Following these guidelines won’t just save you money. It will teach your student responsible money management, as well.

Saving is Important, Even During Tough Times

We’ve had an exciting week here at Neighborhood Credit Union. One lucky member won $10,000 just for having and using our prize savings account. As a member, you get one entry for every $25 you deposit to your prize savings account. The more money you save, the better your chances of winning the grand prize.

That, alone, is a great reason to save money. Not only do you earn interest on the money you save, but you increase your chances of winning a lot of money. I can’t speak for anyone else, but I know I could certainly use $10,000. Can you?

One of the reasons we offer this promotion is that we know how important it is for our members to save money, even when times are tough. I know this first hand. If you have followed these blogs, you may know that my husband lost his job at the end of February. Life has not been easy since that happened. I think we have eaten out maybe three times since February and my refrigerator is not nearly as full as I used to keep it. Even with very little debt and have very few bills to pay, we have still had to dip into savings on occasion.

Like many people, we didn’t expect to be cut to one income. When it happened, we didn’t think he’d still be looking for a job six months later. Of course, this couldn’t happen when it was cooler outside, so we have had some large electric bills to contend with, not to mention expensive prescriptions, for which we pay full price because we don’t have health insurance. If you have never been the recipient of unemployment before, I have some bad news for you. It pays very little. One two-week payment doesn’t even cover all of our prescriptions and the electric bill.

This is why it is so important to save, even during tough economic times. Six months ago, we were living very comfortably, probably eating out once or twice a week, buying whatever we wanted at the grocery store and even giving money to our church. Most importantly, we were stashing away money in savings, just because we could. I am so thankful we did it when we could, so we have it when we need it most.

Even if you don’t make much, try saving $25 a paycheck. Think of it as one entry into our grand prize drawing every pay day. If that’s too much, try $20 or $15. Do as much as you can and if possible, have it deposited directly to your prize savings account on pay day. After a while, you don’t even miss it. If a time comes when you actually need it, you’ll be glad you took my advice.

The economy is still tough, and the unemployment rate is still high. Save money now so you can be prepared for anything.

Getting the Most Savings From Texas Tax-Free Weekend

It’s the weekend many parents eagerly await. This year, Texas Tax-free Weekend will be August 17-19. Texas shoppers will not have to pay sales tax on most clothing, footwear, school supplies and back packs priced under $100 – in person or online. Generally, you save $8 on every $100 you spend for those items. Lay-away plans can be used to take advantage of the sales tax holiday.

I have not always been a big fan of the tax holiday, because I don’t think it offers that much savings on its own, and people often overlook back-to-school sales held earlier in the summer so they can save on sales tax in August. I have already purchased all of my son’s back-to-school items by taking advantage of great online deals and promotional codes, where I didn’t have to pay tax or shipping.

If you are waiting for the tax holiday to do the bulk of your shopping, here are some tips to help you get the best deals.

Shop Ahead of Time

If you will be shopping online, look for advanced sale ads online the week before the tax holiday. Many stores will post them like they do for black Friday. Put the stuff you want in your online shopping cart and save it so you just have to check out when the clock strikes midnight on August 17. If you wait much longer, many of your items could be out of stock.

If you will be shopping in person, go to those stores several days in advance, find your items and hide them behind other things. Get to the store as early as you can on the 17^th to locate your “stash” before others do.

Use Promotional Discounts on Already Discounted Merchandise

I spent less than $300 on a pair of Nikes, a pair of Asics and 15 clothing items for my son, because of an online promotional code that applied to all merchandise, including sale items. We’re talking polo shirts and nice quality shorts as low as $3 each. Take advantage of those promotions.

Do Your Homework

Don’t buy something you don’t need just because it’s a tax-free item – especially if it’s not on sale. If you buy something for $50, you’re only saving about $4. If that item goes on sale the week after, you could save even more. Do as much comparison shopping as possible and only buy those items that are bargains.

Know Which Items Qualify for the Tax Break

Just because it’s a school supply item sold in a store, doesn’t mean it qualifies as tax-free. Know what qualifies before you get to the check-out. Here are some links to help you.
Qualifying School Supplies    
Qualifying Clothing

Also, be sensible. If you see an unbelievable sale somewhere before Texas Tax-Free Weekend, don’t wait just to save $8. You may be saving a whole lot more by shopping early.

 

Ideas for Making Some Extra Cash

A friend of mine made me a proposition. Knowing that we are short on money these days, she offered to let me take her child home after school and keep him for an hour every day, instead of sending him to day care. She’ll pay me $50 a week. At this point, turning down $200 a month is not an option, especially for doing next to nothing. I have to take my own child home from the same school every day. I’m just bringing a friend with us now.

With school getting ready to start in just a few weeks (sigh), there will be many opportunities for moms or dads to bring in a little extra cash. Here are some other ideas.

School Shuttle Service

Offer to take kids back and forth to school for a weekly fee. I see at least 10 “mom” shuttles at my son’s school every day during the school year. They work before school and after school and make anywhere from $500 to $1,000 a week on a full schedule.

Personal Shopper/Assistant/Delivery

A friend of mine is moving out of her home and is absolutely overwhelmed with everything she has to get done. She has hired me for $12 an hour to help her purge stuff and organize her stuff. It’s not always easy work, but she pays me cash, and she pays me immediately. If you have good organizing skills or are a bargain shopper, offer those services for a fee to people or even small businesses which could use a few hours of help.

After School Extra Curricular Activities/Tutoring

Are you an artist or musician? Can you sew or cook? Perhaps you have a real talent for helping kids understand their school work. Offer after-school classes for kids in your home or a local recreation center. My son takes art classes and drama classes after school on different days of the week. I pay $50 a month for each. If you have as few as 10 students, that’s an extra $500 a month.

Substitute Teacher

The average pay for substitutes at a public school is about $75 a day, and you generally have to have a college degree or relative certification. Check with your local school district for more information.

Child Care

If you are home during the day and are good with kids, you might consider babysitting services, either for the whole day or just as needed. This can be for working parents with pre-school aged children or for parents who are home during the day but have doctor appointments where they can’t bring their kids.

Pet Sitting

People actually pay money for doggy daycares so their pets don’t have to be alone during the day. If you like pets and you’re home during the day, why not open your home to one or two non-destructive pets? They entertain each other and you earn some extra money.

With today’s busy lifestyles, people need and are willing to pay for help to get things accomplished. What are some ways you earn extra money?

Tollway Drivers Beware: Fees Add Up Faster Than You May Realize

If you drive the Dallas toll roads on a regular basis, you may already know how much you are spending on tolls in a given week or month. If you have a toll tag, have you looked at your online statement lately?

I am guilty of not paying attention to how much I spend on the toll roads. I am fortunate that I don’t have to drive often or long distances. Could it really cost that much during those few times when I need to use the tollway?

I actually left my toll tag at home one day and recently received an invoice for the driving I did. It was a huge wake-up call for me. Just going five miles to dinner on my birthday (10 miles round trip) cost nearly $6. If I would have had my toll tag, it would have been closer to $3, but that still seems pretty high to me for the distance we were going. Without a toll tag, it costs $2.28 just to take the closest exit to my house. That’s almost $5 just to start and end my trip, and that doesn’t count all the in-between tolls.

According to the North Texas Tollway Association website, the cost to drive the tollway is 15.3 cents per mile with a toll tag and about 23 cents per mile without a toll tag. If you drive 41 miles, which is the distance from my house to DFW airport, it costs about $6 ($12 round trip) with a toll tag and nearly $10 ($20 round trip) without a toll tag.

Keep in mind you still have to pay for your gas, too. My 14-year-old car gets nearly 30 miles to the gallon. A trip to the airport is 82 miles from my house. That’s about 2.5 gallons of gas. At $3.50 a gallon, that’s $8.75 one way or $17.50 round trip. Add that to my $12 round trip cost on the tollway and that’s about how much it costs for my family of three to eat at one of our local restaurants.

Now, I’m not telling you to stop driving on the tollway. I will definitely be curbing my tollway habit slightly, but even I will have to drive on a toll road from time to time. Just pay close attention to the tolls you are paying – especially if you have a toll tag. Most toll tag users do not pay attention to exactly how much they are spending to drive on those roads.

Be sensible and do the math. Can you take a different route or an earlier/cheaper exit? It may pay to find out. I just paid $72 in toll bills for my husband who does not have a toll tag and only uses the tollway for job interviews. Trust me. It adds up fast.