There’s something about a three-day weekend that has people itching to get out and go somewhere. However, those long weekend get-a-ways often end up costing a little more than expected. You can help prevent vacation and other budget busters by beginning a simple savings plan!

Start Saving Today

Now is the perfect time to start the 52-week money challenge. Starting on week one, save $1. On week two, save $2. On week three, save $3. On week 20, save $20 and so on until the final week when you’ll put $52 in savings. By the end of 52 weeks, you will have saved more than $1,300 to put toward a summer vacation or other financial goal. Consider these tips to help make it happen.

1. Create a separate savings account. Open a separate savings account for the money you will save with the 52-week money challenge.

2. Involve the entire family. If you have kids at home, bring them together for a family meeting and explain how the 52-week money challenge works. Explain what the money will be used for. This helps everyone have motivation to make the sacrifices necessary to save the money each week.

3. Create a 52-week money challenge chart. Help family members feel they are part of the challenge by creating a chart to track savings each week on either poster board or a piece of paper. Draw lines to make 52 boxes, decorate, hang where the family can see and watch the check marks fill up as you save each week. A variation is to create a chart on a piece of paper by drawing enough lines to make 52 squares. Next, number each square from 1 to 52. As you begin your challenge, there may be some weeks when you may be able to save $30, $40 or $50 a little easier than others. When that happens, put the money in your account and put a check mark or sticker on the square with the corresponding dollar amount.

Other Ways to Save

*Automate 1 percent. Send 1 percent of your income to a separate account. This won’t seem like a huge cut to your income but will add up over time. You can draw on this money as needed to supplement extra costs for long weekend trips or other expenses.

*Use the step-down principle. Envision a staircase with multiple steps. Now think of an area where you could cut your spending (eating out, entertainment, etc.) Decide what you can do to take one step down to spend less in that area and put the money you would have spent into a separate account.

*Take advantage of tax return time. While paying down debt or saving for retirement are key, it’s smart to take a bit of money and reward yourself. You may choose to purchase something you’ve been wanting or put money into your separate account for summer get-a-way expenses.

This article was written by Amanda Christensen.

Amanda is an Extension assistant professor for Utah State University. She has a master’s degree in consumer sciences from USU and is proud to call herself an Aggie! Amanda loves teaching and enabling individuals and families to make smart money decisions.

It’s the time of year when we see beautiful spring blossoms and blushing brides. When you’re in the middle of planning a wedding, plans to manage budgets and bank account balances as a new couple aren’t always popular discussion topics.

How to Start Saving

When you read the word “budget” what’s the first thing that comes to your mind? Unrealistic? Stress? Confined? Restricting? But you have to start somewhere, and you have to have the desire to manage your money.
Want to track how much money you spend eating out? How about cutting back on your monthly utility bill? Maybe there is a fun trip you are planning for next summer and you’d like to have a good chunk of money set aside for it. How about a little more Christmas money for that special someone’s gift? Whatever the reason, here are three baby steps to get you started:

1. Automate your savings. This is the KEY to getting off to the right start. Automatically sending a chunk of your paycheck into a savings account is a foolproof way to set money aside. You don’t have to remember a monthly transaction and the money is moving from checking to savings without you touching it—which equals less temptation to spend it.

2. Take out your personal allowance in cash every month. Allowing yourself to spend some of your money every month however you choose is an absolute must! Decide how much each person can spend and stick to it. Take the money, in cash, out of the bank and when it’s gone, it’s gone.

3. Use the PowerPay App. This free app allows you to enter all your debts and see how long it will take to pay them off, with or without power payments. Both spouses can download the app and stay on top of paying down debt together. Don’t have a smart phone? You can also find PowerPay at: www.powerpay.org.

These baby steps for budgeting, whether for wedded bliss or something else, will be helpful moving forward and will get you on the right track.
What tips do you have for newly married couples for managing their finances? I’d love to hear from you!

Also be sure to check out my YouTube channel for weekly videos about financial management—including more tips for newlyweds managing their finances.

Contact Me:
Twitter & Instagram: @FamFinPro
Facebook.com/FamFinPro
YouTube: Amanda Christensen (FamFinPro)

This article was written by Amanda Christensen.

Amanda is an Extension assistant professor for Utah State University. She has a master’s degree in consumer sciences from USU and is proud to call herself an Aggie! Amanda loves teaching and enabling individuals and families to make smart money decisions.

Some summer vacations can be pricey. However, it is definitely possible to get away without inviting the always-present friend, Debt.

Fun in the Sun

Spring is in full swing and summer is right around the corner! The warm weather soon to come will welcome swimming suits, lemonade and summer getaways. The summer months are a perfect time to travel; the kids are out of school, the sun stays out to play longer and the weather plays nice too.

The only con to traveling in the summer is the expense. However, with these three quick tips from Extension Assistant Professor Amanda Christensen, you can start saving right away for those perfect days spent in the sun with your family.

Have fun in the sun without your wallet feeling done!

References

https://extension.usu.edu/news_sections/videos/3_tips_to_save

This article was written by Leah Calder, a USU Extension Marketing Assistant.

In this age of technology, smartphones, apps and online games have become the norm for children, with thousands of options to choose from. While many apps offer little educational value, did you know hundreds of apps out there can help your children learn while playing?

Check out this video clip from Channel 5 to learn about finance apps that teach kids about money and savings. Though financial topics can be overwhelming to children, these apps make learning about money simple and fun!

Author – Nikki Capener

Christmas spending can be stressful and expensive. When purchased on credit, Christmas spending is often rolled into the New Year; leaving you with bills to be paid for over the next weeks and months. By planning ahead for Christmas, you can save yourself a lot of money, time and headache. Here are some easy steps to help you save:

1. Create a budget: You can’t stick to a budget unless you have one. Take the time to decide how much you can afford to spend for Christmas and then stick to it!
2. Start saving: Begin setting aside money now. If you put money aside early, even $5 a paycheck, you can pay for Christmas gifts in cash.
3. Start a change jar: Throughout the year, dump loose change into the jar each night  and use it for Christmas cash.
4. Create a Christmas list: If you have a list of gifts to refer to, you can purchase items when you see an awesome sale price throughout the year. Utilize online resources such as Groupon and LivingSocial to find even better deals.
5. Cut your spending: Consider slashing your morning coffee expense, regular lunch date or weekly theatre visit. Instead, make your coffee at home, bring your lunch or rent a movie. Add the money you saved into your Christmas budget; small saving amounts will add up fast.

Purchasing gifts in advance and using cash to pay for things will help make your holidays less hectic. Remember that meaningful gifts don’t have to be costly. Oftentimes, the most remembered gifts are those that took time and thought rather than money.

Nikki Capener is a student at Utah State University studying family and consumer sciences education. She is the family and consumer science intern in Box Elder County and has loved working with the Extension faculty and 4-H youth. Her experience working with Extension has been incredibly beneficial; she has learned much while working with Ann Henderson. Her hobbies include running, cooking, sewing and making crafts.

Author – Marilyn Albertson

Have you ever had a major emergency in your household? Did you have the cash flow to handle it? As you move through life, events often come up that you cannot anticipate but that require money immediately. Start now to build a strong financial foundation with an emergency fund.

Emergencies might include personal injuries, auto accidents, natural disasters, loss of jobs, major home or auto repairs, or a death in the family with accompanying expenses not covered by insurance. If your are in the farm or ranching business, emergencies could include  poor crop prices, poor crop yield based on weather conditions, natural disasters, lack of adequate grazing for cattle, higher prices for feed and farm equipment, illnesses in herds or flocks and more.

What should you have saved?

Financial experts suggest having 3 to 6 months of take-home salary or 6 to 8 months of living expenses saved.  (source 1 & 2)  Another way to calculate your needs would be to assess the time it might take to find a new job of equal or higher pay if you were laid off your current job.

The Bureau of Labor Statistics for June of 2014, detailed unemployed persons by duration of unemployment.  The report indicated that 48.5 percent were unemployed 15 weeks or longer, with 32.8 percent experiencing 27 weeks or longer of unemployment.

When should you start?

If you have not started an emergency fund, now is the time to start.  You may feel you have debt you need to pay off before you can start saving.  You might consider splitting your extra funds between the debt and an emergency fund.  Even a little saved will reduce the interest costs at the time when you have to pay for an emergency.  Financial planners advise consumers to wait to invest in retirement accounts, IRAs or the stock market until they have an emergency fund established that is easily accessible for the risks that could come up.

How will you save?

Start by creating a monthly budget and tracking your spending.  Identify areas where you could cut back within your flexible expense category.  For example, to help save you might try the “Step-Down Principle” by Alena Johnson, M.S.  On a piece of paper create a stairway with four to six steps. Write down the way you now purchase the item on the top step.  Then look at ways to step down the expense and keep working down the steps until you get to the least expensive way to purchase the item on the bottom step. Then ask yourself if you can step down one or more of the steps with this purchase.  This idea can also be used for stepping down the number of times a purchase is made.  For example, if eating out daily at lunch, could you cut back to three times a week or once a week and brown bag it the other days?  This could add up to a significant savings over time to build the emergency fund.

Another way to calculate how to save is to use the PowerPay.org website.  Calculators are available to determine how much to save and ways to pay down debt more rapidly to free up money for savings.  You may download the free PowerPay Mobile app by visiting the iTunes app store.  For a more comprehensive version go to www.PowerPay.org.

Where will you save it?

Compare interest rates at your local bank or credit union.  Check out online banks, which also have good service and offer competitive rates.   Some have higher rates but make sure they are FDIC insured institutions. Some accounts can be tied to your checking account so automatic deposits can be made directly from checking to savings.  They may offer money market accounts which are variable and have teaser interest rates for the first 6 months with a guaranteed one-year rate for new customers.   Read the fine print for features and limitations.  It is wise for you to check periodically to see if you are still getting the best competitive rates.  If not, don’t be afraid to move your money to another institution as long as it is insured.

Good luck saving for those unexpected emergencies!

And, for more preparedness information, be sure to come and visit the Utah Prepare Conference & Expo on September 27, 2014.
Marilyn Albertson, M.S., CFCS, has been a Utah State University Extension associate professor in Salt Lake County for 29 ½ years.  She provides family and consumer sciences education with emphasis in money management for children, youth and adults; housing education;  family resource management including food storage and emergency preparedness; and marriage and family relations for teens and adults.

Author – Amanda Christensen

Ever wondered how wealthy people got that way? While we don’t have any tips on how to make money quick, we have come across 11 habits of wealthy people that might help us explain what really sets the wealthy apart from the rest of us.

click over to Habits of the Wealthy to learn more.

Amanda is an Extension Assistant Professor for Utah State University. She has a master’s degree in consumer sciences from Utah State and is proud to call herself an Aggie! Amanda loves teaching and enabling individuals and families to make smart money decisions.

Follow Me:
Twitter: @FamFinPro
Facebook: Fam Fin Pro
Instagram: @FamFinPro

Author – Amanda Christensen

Are you looking for a way to budget that doesn’t include spreadsheets and calculators? It’s easy to spend money, but at the end of the month do you forget what money went where?

We’ve come up with an easy way for you to keep track of how you spend your money. All you will need is cash, envelopes and a little self-discipline. While this method is unrealistic for expenses such as a home mortgage or car payment; what about those expenses that we’re trying to control that can easily get away of us? Food? Gas? Personal allowance? The envelope method for budgeting allows you to take a specific amount of cash, stick it in an envelope labeled “groceries,” “gas,” etc. and consistently know how much you have left to spend that month in that category.

My experience: My husband and I recently purchased a new camera. One of the conditions of this purchase was that we would each contribute our budgeted allotment for our individual, personal allowance for the month. This money would go toward the new camera and its necessary accessories (camera bag, extra battery, etc.). At the checkout counter I reached into my wallet, pulled out the cash from the specified envelope (personal allowance) and surrendered it to the cashier. The prize was well worth giving up my personal allowance and the money was right there in my wallet for easy access. (By the way — when it’s gone, it’s gone. NO CHEATING!)

Tip: Sometimes we don’t want easy access to our money. For example, if our rent money was in an envelope in our wallet, we might be tempted to use that money for something other than rent. Not good. This is one reason to leave the rent money in the bank and use the cash in the envelopes for variable, monthly expenses. Then, if the stars lined up and you had money left over in one envelope at the end of the month, you could choose to put that money in the bank and save it, pay extra down on a debt or reward yourself and spend it! No guilt attached!

Tip: Speaking of guilt…variable monthly expenses can be budget busters. Using the envelope method to control some of those variable expenses can be a lifesaver as well as help you feel on top of your money management skills. Here is a list of some monthly expenses that might be good to use with the envelope method:

• Gas
• Food
• Eating out
• Entertainment
• Personal Allowance
• Date night
• Gifts

Remember, no cheating. You may be tempted to use money in the “gas” envelope for your

“entertainment” envelope, but once it’s gone, it’s gone, no matter what envelope it comes from! Good luck and happy budgeting! How have you used the envelope method with your family?

Here’s a link to some great DIY budget envelopes.

Amanda is an Extension Assistant Professor for Utah State University. She has a master’s degree in consumer sciences from Utah State and is proud to call herself an Aggie! Amanda loves teaching and enabling individuals and families to make smart money decisions.

Follow Me:
Twitter: @FamFinPro
Facebook: Fam Fin Pro
Instagram: @FamFinPro

Author – Amanda Christensen

Does having children worry you about their financial future? You’re not alone. A recent survey by Citi of 1,500 parents found that 56 percent of parents surveyed “are not confident that life for their children’s generation will necessarily be better than it has been for their generation.”

Are you wondering what you can do to help your children now? We’ve put together two Popular Options for Saving for Your Child’s Education.

The first thing families should do is decide where educational savings fits into their overall financial goals. Buying a home, preparing for retirement and providing an education for the children tend to be the three most costly family objectives. Few families have the means to tackle all three at the same time. It’s been said that you can’t get a scholarship for retirement. There are more options to cover the costs of higher education (scholarships among them) beyond having the savings entirely on hand. Given that, I suggest a retirement strategy be in place before establishing a means for college savings.

Here are two currently popular options: a 529 plan and the use of a Roth IRA.

529 Plans

A 529 plan is named after section 529 of the Internal Revenue Code, the provisions of which allowed for their creation in 1996, and each state has at least one. In our state, it is the Utah Educational Savings Plan (UESP) and it is consistently rated among the very best in the nation.

• A 529 savings account is initially set up for a named beneficiary, however, the recipient can be changed to another family member, with a wide range of people who can be named, including a first cousin. The donor to the account is in full control of the assets.
• Beneficiaries can attend qualified schools throughout the nation, not just in the state where the plan is held. This includes most community colleges, universities and even some vocational schools.
• The fees and other maintenance costs associated with 529 plans are generally lower than with other investments. This is especially true for direct purchase plans like UESP. These are self-directed plans.

• Among the UESP options are an FDIC insured account and a range of investment accounts that adjust with the beneficiary’s age. They automatically shift from aggressive investments to more conservative choices as the child draws nearer to college age.
• Contributions to a UESP plan (and other state 529 plans) are not tax deductible, but all earnings from investments in the plan are free from federal taxes. The USEP plan is also free from state taxes. This means that when distributions are made to pay for qualified expenses, there are no taxes due. Current Utah law also allows state residents to claim a tax credit based upon USEP donations.
• If distributions are not used for educational expenses, the earnings on your contributions are taxable and are also subject to a 10 percent penalty.

Roth IRA

A Roth IRA is another savings option that many families are considering for college expense planning. A Roth IRA was developed as a retirement savings program. Contributions to a Roth are not deductible, but earnings grow tax free.

• While contributions to a Roth IRA can be withdrawn anytime, withdrawals of earnings prior to age 59 1⁄2 are subject to taxes and penalties. That is, unless the funds are used for higher education purposes. This provision means that it is possible for families to use a Roth IRA for both retirement and college preparation.
• There are two other benefits of a Roth IRA. First, lower income tax filers may get a federal tax credit for contributions to a Roth IRA. Second, unlike an education savings account, retirement accounts like a Roth IRA are generally not considered when applying for financial aid. On the other hand, there are limits to annual Roth IRA contributions. If you use half of your retirement savings to send your kids to school, you may need to bank on them getting a good enough education and career to support you during retirement.

In summary, here are some issues families should consider:

• Tax considerations are an important aspect, but not the only factor to consider.
• Risk levels, potential rates of return and the range of investment opportunities will be part of any strategy.
• The investor must determine how much or how little professional help they desire.
• Family income levels and the number of children involved are critical components. Well-to-

do grandparents with lots of descendants have different challenges and opportunities than newlyweds expecting their first child.

Which will it be? A Roth IRA, a 529 savings plan or some other option? Think about it now because the toddler munching Cheerios on your kitchen floor today will be off to college before you know it.

Amanda is an Extension Assistant Professor for Utah State University. She has a master’s degree in consumer sciences from Utah State and is proud to call herself an Aggie! Amanda loves teaching and enabling individuals and families to make smart money decisions.

Follow Me:
Twitter: @FamFinPro
Facebook: Fam Fin Pro
Instagram: @FamFinPro

Author – Amanda Christensen

The “B” word is not always a pleasant one in the money management world. Honestly, when you read the word “budget,” what’s the first thing that comes to your mind? Unrealistic? Stress? Confined? Restricting? But you have to start somewhere. You might then ask, “What are some baby steps for budgeting?”

First things first: stop calling it a “budget.” Yikes! That word is daunting. Let’s call it a “spending plan” instead, ok?

Next: You have to have the desire to start managing your money. You want to see how much money you spend eating out. You want to cut back on your monthly utility bills. Maybe there is a fun trip you are planning for next summer and you’d like to have a good chunk of money set aside to spend. Or how about a little more Christmas money for that extra special someone’s Christmas gift? Whatever the reason, you have to want to take charge and move forward to make changes.

3 Baby Steps:

1. Automate your savings. This is the KEY to getting off on the right start. Automating a chunk of your paycheck to deposit into a savings account is a fool-proof way to set money aside. You don’t have to remember a monthly transaction, and the money is moved from checking to savings without you touching it. (Less temptation to spend.).

2. Take out your personal allowance in cash every month. Allowing yourself to spend some of your money every month is an absolute must! Decide how much and what the money can be used for (entertainment, fast food, gifts, etc.) and stick to it. Take the money, in cash, out of the bank and when it’s gone, it’s gone.

3. Use PowerPay. Powerpay.org is your new best friend. This is a free website that allows you to enter all your debts and see how long it will take to pay them off. Whatever steps you take to prepare for this holiday season, make sure you take time to manage your spending. Stop in or call your local USU Extension office for more money management tips or check www.usu.edu/extension.

Amanda is an Extension Assistant Professor for Utah State University. She has a master’s degree in consumer sciences from Utah State and is proud to call herself an Aggie! Amanda loves teaching and enabling individuals and families to make smart money decisions.

Follow Me:
Twitter: @FamFinPro
Facebook: Fam Fin Pro
Instagram: @FamFinPro