Having the Holiday Smarts

For many of us, Black Friday is the kick off to holiday shopping. On this day, stores will have door busters, sales, and (maybe) great deals on most items in the stores. It all has been planned to attract gift shopping. However, all this emphasis on spending leads many people to overspend. Those who do not budget their spending barely have any money for themselves and for their own needs. Or, if they splurge on themselves, they don’t have the money to buy presents for friends and family. So think ahead and learn a few ways to budget and save for the holidays.

Always plan your holiday budget before you start shopping! Make a list of everyone you plan on buying a present for. You might budget for one gift per person and mention on your list a possible gift you would like to get for each of them. When shopping, make sure you stick to your original budget because it can be very tempting to overspend!

If you have a credit card, check to see what your card benefits are. Some credit cards offer price protection, which might help if you bought something at one store, but later find it was less expensive somewhere else. Your card might cover the price difference of the item and give you a refund. All you have to do is file a claim within a certain period.

Your credit card might also offer holiday season rewards. A smart phone app called Wallaby can show you available rewards on your credit card.

Also be aware you do not have to buy gifts for everyone! An easy way to save on the holidays is to make gifts for people. Do a Google search or use Pinterest to find DIY holiday gift ideas. Making your gifts can be more personable than finding something on a store shelf.

Another option is to host a gift exchange during the holidays. Everyone draws a name out of a hat and the name you draw is the person you buy a gift for. This way you can buy something nice for one person, yet save money by shopping only for that one person. You could also create homemade “gift certificates” for friends and family. Examples of services you could offer include a month of babysitting, doing household chores for your parents, cooking someone a dinner, etc. Use your imagination and come up with something special that people will appreciate.

READERS, what do you think?

1.     Do you buy/make gifts for your friends and family this year? Do you make a budget ahead of time?

2.     Have you ever participated in a gift swap? Did you feel that it saved you money? Did people receive gifts they wanted that way? (It is important to give gifts that people will appreciate.)

3.     Would you make a personal gift certificate for someone? If so, what would you give?

Reference:

Steinberg, S. (2014, November 6). 15 Ways to avoid holiday debt: Spread the holiday cheer to your bank account this season. U.S. News & World Report. Retrieved November 12, 2014, from http://money.usnews.com/money/personal-finance/slideshows/15-ways-to-avoid-holiday-debt.

The Truth about Cashing Old Checks

If you have ever received a check and forgotten to cash it, you’ve probably wondered whether it’s still good. Could you still take the check to the bank and get your money? If you have had questions about what to do with old checks, you are not alone. Every year millions of checks go uncashed.

The first thing to know is that there are no standard rules as to when a check expires. However, the Uniform Commercial Code does not require banks to accept checks that are more than six months old. Every bank sets its own rules for depositing old checks, so make sure you check with your bank first.

When cashing an old check, be courteous to the person or organization who wrote the check. If you deposit an old check without telling the person who gave it to you, their bank account could become overdrawn because they might not have enough money in their account to cover the check. (If they’ve decided you’re never going to cash it, they might have tallied the amount of the check as part of their bank balance.)

Give the person a call, let them know you have not cashed the check, and see if they will write a new check. If it was a gift and you did not write a “thank you” note, this is a good time to personally thank them. (Be sure also to write them a nice note, as you don’t want to seem ungrateful.)

Never assume that your bank will accept an old check! You could end up paying a “deposit item returned” fee for checks that bounce. These fees could be $30 or more for each bounced check!

Readers, what do you think?

1.    Have you ever tried to cash an old check? What happened when you did? Did the check bounce?

2.    Did you notify the person who gave you the check before trying to deposit it? What did they say?

3.    Do you see bouncing an expired check as a learning experience? If so, what will you do differently next time?

Reference:

Ross, A. (n.d.). 5 Things to Know When Cashing Old Checks. Bankrate.com. Retrieved November 11, 2014, from http://www.bankrate.com/finance/checking/cashing-old-checks-1.aspx?ic_id=Top_Financial.

Check for Defects When Buying a Used Car

Buying your first car can be very exciting. However, many people buy cars with defects, a mistake you can avoid by doing your homework beforehand. Have any used vehicle you are thinking about buying checked over by your own mechanic. Also make sure you know whether the vehicle is under recall by the manufacturer.

Many people whose cars are under recall continue to drive their unrepaired vehicles. According to Insurance Journal, “About a third of all recalled cars and trucks don’t get repaired….” This puts everyone at risk.

Pay attention to your warranty coverage. If your car is still under warranty, you can have it fixed or get a part replaced free of charge as part of the recall when you take it in for service or repairs. Authorized dealerships are reimbursed by the manufacturer for this. However, many drivers don’t realize their car model has been recalled. Manufacturers are supposed to send recall letters to owners of affected vehicles, but the letters don’t always reach the owners. The car company may not know if you have moved. And, if you bought the car used, you’re not likely to get a letter from them.

“In 2009, Ford Motor Co. recalled 4.5 million vehicles … for a part that could spark a blaze even if the vehicles were sitting in the driveway.” Clearly, this is not a minor defect. “Because the models stretched back to 1992, Ford was unable to reach 600,000 owners….”

A recent NBC News story has information on a current recall involving defective air bags that can explode, hitting drivers and passengers with metal shrapnel. This recall affects vehicles of many makes and models. Be sure to read the story accompanying this video to see if your vehicle is on the recall list.

READERS, what do you think?

1.    If you have bought your own car already, was it new or used?

2.    Have you found any defects in your car? Is it still under warranty?

3.    Have you checked to see if there is a recall on your car?

References:

Green, J. (2014, April 15). 1 in 7 Cars on Road Have Unrepaired Defect. Insurance Journal. Retrieved October 28, 2014, from http://www.insurancejournal.com/news/national/2014/04/15/326291.htm.

Aegerter, G. (n.d.). U.S. Expands Recall Warning for Cars with Defective Air Bags. NBC News. Retrieved October 28, 2014, from http://www.nbcnews.com/business/autos/u-s-expands-recall-warning-cars-defective-air-bags-n231216.