Preparing for the holidays: Best time to buy flight tickets

By Josh Smith

With temperatures dropping across the nation, it’s time to put summer vacations behind you and focus on getting the best deal on tickets for your holiday flights.

If you’re reading this, and you haven’t already started your search for a holiday flight deal, you should get started.

When to Buy

Unlike the rest of the year, where demand is less predictable, Airlines know that the holidays will be booked up.

Despite this confidence, if you buy early, you can still score some deals, as airlines are still cautious. As planes fill up, prices will go up. Additionally, the closer you get to takeoff, the higher prices will be. There are no last minute deals on airfare, so you should make plans now, stick to them, and purchase tickets as soon as you can.

If you need to stay in a hotel during your holiday travel, you can often get a better overall price on the trip if you book them both at the same time. In some extreme cases, you can purchase cheaper tickets by adding a hotel and not using it.

When to Fly

Unfortunately airlines are adding fare increases earlier and earlier each year. If you are able to fly before December 17th and return after the New Year is over you can score cheaper airfare, but this isn’t realistic for most flyers.

Look for early morning flights and those with connections to cut back on the cost of flying, but beware of potential delays if you have a layover in a bad weather location.

If you are able to fly in or out on Christmas Day, you can normally score some deals.

How to Find the Best Deals on Holiday Flights

Bing Travel lets you search a number of airlines and airfare price comparison search engines, and delivers an easy to follow price predictor. Bing analyzes flight trends to figure out if prices are going up or down.

You’ll get a tip to buy now or wait, and Bing’s confidence of the prediction. Ultimately, this is one of the easiest ways to find out if you should buy now or wait.

Google has also launched a new tool for flights that helps you find the best deals on holiday airfare. Google Flight search lets you search many airlines and use visual tools to find flights that meet your needs.

One of the nice features of Google Flights is the ability to see which weeks offer the best pricing on trips like yours. For example, if you plan on taking a five day trip this December, Google can help you see the cheapest weeks for that trip. If you need a shorter or longer flight, you’ll see the best weeks for that trip. Just click on the calendar icon next to the return date at Google Flights.

It’s also worth checking directly with your favorite airline to see if they are offering a good deal, and don’t forget to factor in the cost of checked baggage to your price comparisons.

How to Handle a Suddenly Full Nest (Again)

By Carla Fried

An increasingly popular coping mechanism for recent college graduates who are finding it excruciatingly difficult to launch their careers when jobs are so scarce-and college loans are so large- is to move back home. That’s what family is for. But at the same time, parents are wise to set ground rules on how the once again full-nest will run. Your child will always be a child, but they are also an adult now. Setting some financial ground rules isn’t punishment. It’s instilling a sense of adult responsibility. And let’s be honest, that’s going to make the time together run a lot more smoothly for you as well.

Some tips to help your family live happily ever after (again) under one roof:

1. Insist on Rent. Doesn’t matter if you need the help or not. This is about conveying to your child that you do not see them as a 10 year old, but as an adult 22-year-old. While they are looking for a full-time career job they can also find some part-time work to contribute to the family.
2. Save The Rent for Their First Deposit. If you’re still squirming at the idea of charging rent, how about tucking away that money into a separate savings account. Then when your child lands a job you can spring it on him or her that you saved every penny they paid you. That should be a huge help with the deposit when they are ready to move into their own rental.
3. Make Sure They are on Top of their Student Loans. There is a six-month grace period between graduation and when the first payment is due on student loans. That means November or December is when most grads must begin repaying their loans. Simply ignoring this fact will only make matters worse. Much worse. As in penalties and fees, and a huge ding on their credit report. And a credit report ding is the last thing they want to self-inflict. Many employers now request permission to check a job applicant’s credit report. Your child can’t afford to have any red flags show up. And make sure your child understands that even if they do not have a job they still must contact their lender and make a formal request for deferment. The federal loan program is set up to allow deferment for the unemployed, but only if borrowers apply for deferment. Otherwise you are considered to be in default. Private loan lenders have no obligation to offer deferment, but that doesn’t mean they won’t agree to a delay. Again, the important step is to be proactive and ask for the deferment before the loan is in default.
4. Insist on Health Insurance. If you have a health plan through work, you can re-enroll your child on your plan. A provision of the 2010 health care reform legislation allows adult children to piggyback on a parent’s insurance until the age of 26. (And again, don’t be shy about having your child pay at least part of the premium cost.) Or insist that your child obtain a short-term insurance plan on their own. Yes, the odds are thankfully low that a healthy young adult will need costly medical care. But low does not mean zero. Your family cannot afford that risk. Send your kid over to ehealthinsurance to shop for short-term insurance. If you need to suspend or scale back rent payments so your child can cover this expense that’s a solid parental assist.

How much do you store on your phone and how safe is it?

By Josh Smith

These days, your smartphone has more in common with your wallet than it does the first flip phone you purchased.

As more of our lives become digital, our phones have become a constant companion with access to incredible amounts of personal and financial information. Unfortunately, this means that much of our private data is always on the go, and easy to lose.

What all do you store on your phone?

 

• Bank Information
• Personal Photos 
• Login and Passwords
• Membership Information 
• And much more.

If you don’t take a few precautions, this personal information could easily fall into the hands of anyone who has access to your phone. You might say, “No one would want to steal my information, I don’t have enough money to take.” But I assure you, thieves don’t care, they’ll take your information and sell it to other thieves.

In addition to unscrupulous people who have access to your phone, Android users need to be sure that they don’t get infected with malware. Just like your computer can leak your information to a thief if it is infected, malicious apps can steal your information or cause you to be charged for calling and texting premium phone numbers.

How to Secure Your Phone

Aside from storing passwords on your phone, the rest of the information listed above is fairly safe to keep on your device if you take a few smart steps when setting up your phone and the apps with access to it.

Lock Your Phone – All modern smartphones allow you to lock the device with a password. This PIN number can be a set of numbers or an easy to remember connect the dots code.

However you plan to do it, you should secure your phone with a lock code. In an emergency, your spouse or child could still make an emergency call, so you don’t have to worry about shutting out help when it is needed.

Lock Your Apps – Any banking app worth using offers the ability to add another layer of protection by locking it with another PIN. Just like you shouldn’t reuse passwords, don’t use the same PIN you use elsewhere for this.

Your banking apps, PayPal and other apps that store private information likely has a built in locking tool. Check the settings or the app manufacturer’s web page to figure out how to set it up for your specific device.

Security Solution – If you are on Android, you may want to get a security solution to protect your smartphone from malware. You can find several offerings on the Android Market, including Lookout Mobile, Norton and McAfee apps.

These apps can help keep bad apps off your phone and some can even remotely wipe your smartphone if you lose it so that no one can get access to your information. Check out Lookout and Norton first, as they offer better free services.

Common Sense – When you are downloading apps to your phone, use common sense. If an app has a long list of permissions that seem out of place, Google the app first to find out if it is legit. You should also be sure to stick to well known app stores like the Android Market and Amazon’s App Store.

Your smartphone carries a lot of personal and financial information, but with some common sense and a few passwords, you can keep your information safe.

 

HOW TO TACKLE THE FINANCIAL AID PROCESS

By Carla Fried

If you have a high school senior in the house, now’s the time for both student and parent to get serious about applying to college. Your kid is in charge of the school application, but parents need to take the lead in making sure your family is on top of the financial aid application process.

Here are four tips for helping your family navigate the financial aid process:

1. Treat the FAFSA application as the Holy Grail.

The Free Application for Federal Student Aid (FAFSA) is the ticket to all potential grants and loans. If you don’t complete this form, you are basically rendering your family ineligible for most financial aid. While the form says “federal”, it is also typically used to determine any state or private aid your family may qualify for. One of the biggest mistakes families make is to assume they shouldn’t bother with the FAFSA because they won’t qualify for any aid. In fact, all families regardless of financial need are eligible for an unsubsidized Federal Stafford loan. These loans start at $5,500 (this year) for freshman and rise to $7,500 for juniors and seniors. The interest rate is a fixed 6.8 percent. Yet if you don’t complete the FAFSA, your child can’t snag an unsubsidized Stafford.

There’s no sugarcoating the fact that the FAFSA is a bit of a pain to complete. It requires a fair amount of detail—including info from your federal tax return. Just remind yourself that the hours it may take to get it completed is the only way to give you and your child the ability to qualify for financial aid that can save you thousands, if not tens of thousands of dollars.

Important tip: The official deadline for completing the FAFSA application is June 30th of the year your child will be in school. (You apply for financial aid every year of school, not once.) Ignore that deadline and aim to get the application filed as soon after January 1st as possible. A lot of aid is parceled out on a first come, first serve basis. Wait until close to the deadline to get your application complete, and much if not all of the money may already be doled out. Learn more about FAFSA.

2. Don’t assume you won’t qualify.

If you already have one child in school and didn’t qualify for aid, don’t make the costly mistake that you won’t qualify this year. If there has been any change to your financial situation, that’s going to obviously change how the financial aid folks size up your situation. Moreover, if you will be juggling two children in school this year, that’s going to increase your odds that your older child may now qualify for aid (or more aid). Schools are indeed sensitive to the burden of having more than one child in school.

3. Focus on scholarships no later than the fall of senior year.

Now’s the time for your child to get serious about applying for scholarships. If you wait until the spring you’re shutting yourself out of plenty of potential scholarships with earlier deadlines. You and your kid can learn more about how to maximize their scholarship potential, and search potential scholarships at fastweb.com.

4. Keep money out of your kid’s name.

Your family’s eligibility is a function of the parents’ finances as well as any money in the student’s name as well. It’s crucial to understand that your assets and your child’s assets are treated differently. Retirement assets for a parent are not part of the calculation at all, and all other parental assets are factored in at a low 5.64 percent rate. But any money that is held in your child’s name—an UGMA or UTMA account for example-will be factored in at a rate of 20 percent. If you want to maximize your family’s eligibility for aid it’s best to spend down any assets in a child’s name before senior year of high school.

How to Save Hundreds By Asking

By Josh Smith

Don't you wish you could get discounts every time you shop? I can't help you save at Walmart, but I can tell you how to save big on almost any major purchase. Saving is actually really simple. You just have to ask for a better price. This is hard to do the fist few times, because we are so used to having other people tell is how much we should charge and how much we should pay, but after a few times it will be as natural as reaching for your debit card. I used this method to save $100 on a recent furniture purchase, just by asking for a cheaper price -- and that was on top of the already reduced clearance price.

How to Get a Better Deal by Asking:

Be Nice - When you go into the store, make friends with the sales person. This is as simple as repeating their name back to them when you say hello and ask how they are doing. Little things like this can go a long way, especially at the end of a busy day.

Bundle - If you need more that one thing find everything you want before you ask for a discount. This will help show you are willing to spend, you just want a better deal and allows the store to cut a price on a high margin item and still make a profit.

Be a Regular - For electronics, furniture and other items you will buy repeatedly, look for one local store to frequent. This may not be possible all the time due to low online prices, but it can help build a bond for bigger purchases.

Ask about Warranties - Stores make big bucks on extended warranties. If the sales staff thinks you are going to buy a high profit item like a warranty you may get a better deal. While purchasing furniture my discount was the same price as the warranty. Coincidence? I think not.

Ask Nicely - After you follow all the steps above, don't forget to ask nicely. A simple, "I know these items are already discounted, but can you bundle them or cut me a deal for buying more than one?" does wonders.

As you get more comfortable you can ask for discounts in a more straightforward manner. Remember, it never hurts to ask for a discount. It will feel weird the first time, but it is worth it in the long run. You will have the best luck at small businesses, but if you ask the right person at a chain store you can occasionally score a better deal if you bundle and play up your interest in the warranty.

In the Market for a Used Car? Read this First!

Josh Smith

If you are looking for a new used car, buying online can help you find the car you want faster and cheaper than going to every local lot and looking for a used car. We’ve rounded up a collection of tips that will help you get a better deal on your next used car.

When you start looking for a car online, your first stop should be a ratings website like Edmunds, which can help you figure out what the right price is for the car or cars you are interested in. This will save you time while you look for used cars online, separating the overpriced right off the bat.
The next stop is to head to the popular online car buying web sites such as AutoTrader and EBay Motors. We like these two tools because they make it easier to narrow in on specific makes, miles, conditions and locations. You can check Craigslist, but too often the sellers want to play games and are unreliable.

The next best way to buy a car online is to look for your local and nearby dealerships websites. Practically every major dealer now has a web sales manager that is easy to find on the dealership webpage.

Rather than call or visit every dealer, create a short email telling the dealer what make, model and year you are looking for as well as any color and option preferences and email the same letter to all the dealerships near you. Feel free to include all the dealers in the same email if you want to kick up the competition. Even if the dealer doesn't have the car you want, many will be able to track down specific models.

Before you head to the dealer or decide to buy a car online, stop in at your bank and check on a loan. The terms and rates are generally more favorable at your bank or credit union than at a dealer -- even if the dealer is offering special financing.

Getting a good deal when buying a used car online really is that simple.

How Your Kid’s Summer Job can Jumpstart Retirement Savings

Carla Fried

 

Okay, I know it sounds absolutely crazy to suggest a teenager or college student should be thinking of retirement. But if your child has a summer job that pays—or a job any time of year that he gets paid for-one of the best parental assists and lessons you can deliver is to get your child to open a Roth IRA account.

 

Here's how a short summer job could turn into a tax-free $50,000:

• Parents can help kids fund an IRA. To be eligible to open an IRA your child must have earned income. That's the summer job. But here’s the neat part for parents, grandparents, aunts, uncles (you get the idea): The child's IRA contribution doesn’t have to come out of his or her earnings. Anyone can provide the actual money that goes into the IRA. The only stipulation is that the child actually earned an equal (or greater) amount during that tax year. So let’s say your daughter makes $2,000 this summer. She is eligible to contribute $2,000 in the IRA, but you could be the one to give her $2,000 of your own money to fund the IRA.

• Introduce the Matching Contribution Concept. Let’s face it, suggesting a 15 year old, or 20 year set aside summer earnings for some goal 50 or 60 years off is not going to go over too well. But at the same time, maybe you don’t have to finance 100 percent of the IRA either. How about offering a generous matching contribution deal: For every $10 your child contributes you will contribute $50 or $100. Just remember the child must have earnings equal to the total amount contributed.

• Show the Carrot. You’ll want to provide incentive to do this. I’d pull up a simple future-value calculator and show what the investment today can grow to in the future. For example, a $2,000 investment that grows at an annualized 6 percent –that seems like a rational rate of return for a long-term goal—will be worth close to $50,000 in 55 years. And that's just for one year's contribution. Do this for a few years while your kid is in high school and college and you’ve given them an absolutely huge assist on their future security.

• Choose the Roth IRA. There’s absolutely no reason to choose the traditional IRA. It's not as if the upfront tax deduction on a traditional IRA contribution will be of any value to a child with limited income. The prospect of 100 percent tax-free withdrawals in retirement from a Roth IRA is the better deal. Besides, the money contributed to a Roth can always be withdrawn for any reason without any tax or penalty. It's just the earnings on those contributions that must stay invested until age 59 ½ to qualify for tax-free withdrawals. Of course, you don’t want your child to withdraw the money for a spring break jaunt to Cabo. But explain that they can in fact access their contributions and discuss what constitutes a true emergency.

• Don't Worry about the Impact on College Financial Aid. Money a parent or child has invested in a qualified retirement account is not part of the calculation used to determine a family's financial aid eligibility.

 

3 Steps to Saving for the Future While in College

Josh Smith

Saving money, really saving money, in college is a pretty overlooked idea, but it doesn't have to be. We are going to show students how to save for a new car, down payment, apartment security deposit, wedding or trip around the world without living like a starving student.

Between book bills and trying to save $10 on snacks and beer, most students don't even think past graduation when it comes to savings. This is bad news but you may not know it yet. If you are working a part time job and using loans to get through school, you probably have the most disposable income you'll see for several years past graduation.

How to save money in college, for after college:

Increase your cash flow - You're young, you can afford to burn the midnight oil a bit. Go look for a part time job or a second job. If you have a 12 hour a week campus job and can find another small side gig you'll be ready to put money in savings in no time.

To make sure you don't miss out on the college experience look for jobs with downtime that will allow you to do your homework. Working in the tech center, at a coffee shop or some other location with bursts of activity then downtime will allow you to get homework done so you can have fun when work ends.

Save that money - Take the cash from your second job and have it direct deposited into a high yield savings account that you DON'T have a debit card for. Check out Moolanomy for the best interest rates, and ask at your local bank to see what rate they can offer you on a higher yield savings account.

This will allow you to earn the most on your money and make it harder to tap into it for a late night craving or a new iPad 2.

Invest while you learn - Take some of the money you earn and invest it in the stock market. This may seem daunting at first, but most colleges have a student investment club that will show you the ins and outs of investing for free. You can also get access to a lot of inviting tools, news sources and advice from this group that would normally cost a decent amount of money.

To find your college's investment club, stop by student life or the business department and you should be pointed in the right direction. If there is no investment club, take an elective on investing or ask one of the professors for help. You may be surprised how quickly a professor will jump in to help when you show some initiative.

With a little bit of work, and some smart planning, you will be able to graduate with enough cash in the bank that you'll have an emergency fund and some extra set aside for a down payment or one of life's other expenses.