Food inflation is a reality. You can hate it but can’t ignore it. Food is the necessity of life. You’ll have to buy and consume food to survive in this world. So, you’ll have to deal with this nasty culprit no matter how much you hate it. You simply can’t avoid it. Have a look at the article to know about the 6 tips to deal with the food inflation.

Tips to deal with the food inflation

Here are the 6 tips which you can use to deal with the food inflation with competence:

1. Purchase substitute products: Americans love to eat beef. They want it in their sandwiches, soups, pizzas, etc. However, the price of this much wanted food item has increased by around 8% in the year 2011. The price of beef has already increased by about 11% in the last year. So, this means that the overall price has increased by about 19% in the last 2 years.

If you love meat but don’t want to pay extra for it, then you can go for the substitute food items such as chicken and turkey. These meats are much cheaper than beef. You can cook various items of chicken and turkey till the price of beef comes down. Read the rest of this entry »

Bad news keep pouring in for the citizens of America. Student loans are going to be scarce in the near future. In addition to that, consumers may have to pay more for the checking accounts. If the reports are correct, banks are going to reduce the number of non-interest checking accounts in the country. Most of the banks don’t charge fees for these accounts. However, this situation is going to change soon. Most of the reputed banks are planning to cut down the number of these accounts by a considerable percent. Besides, consumers will not be able to take advantage of free checking option as easily as they used to do earlier.

Read on to know how the consumers may have to spend more bucks for the checking account.

Checking accounts becoming more costly

Go through the following lines to know about the various ways in which you may have to pay more for the checking accounts:

1. Maintenance fees are rising: An increasing number of banks have started charging account maintenance fees nowadays. The sad news is that these fees are increasing day by day. The account maintenance fee has increased to around $4.37 in the year 2011. The financial experts believe that the trend is less likely to change in the coming days.

2. Fewer options to avoid fees: Some banks offer several options to the consumers so that they can avoid paying the monthly fees on the checking accounts. However, the banks have started limiting these options for generating more revenue. Earlier, you didn’t have to pay any fee by maintaining a minimum balance of $249 in the checking account. Now, the minimum balance criteria have increased to $585 in the year 2011.

3. Free checking accounts declines: According to a recent survey, the number of free checking accounts is fast declining. In 2010, the number of non-interest checking accounts for which the consumers were not required to pay any maintenance fee was around 65%. This figure has dropped to around 45% in the year 2011. The financial experts are blaming the new regulations for the drop in the number of non-interest checking accounts. The correct economic condition has also played a major role in this.

4. Debt card fees will be more prevalent: Most debit card companies don’t charge any maintenance fees on the consumers. At present, around 4% of the debit card companies charge sale fee on the consumers. Nearly, 2% of the companies charge a fee for using a debit card. The fact is maximum people are not even aware of these fees. They hardly know how to interpret the account statements.

However, it is expected that the debit card fees will become more prevalent after the Durbin Amendment. So, great ready to pay a fee for carrying the plastic card or transactions.

5. ATM fees are increasing: The ATM fees are increasing for the past 7 years. The fee has increased to $2.40 in the year 2011, an increase of 3% from that of 2010. The ATM fees increases every year, which means consumers have to pay more each year.

3 Tips to avoid paying more for the checking accounts

Here are some tips which you can use to avoid paying more for the checking accounts:

1. Make a direct deposit: One way to avoid paying monthly fees on the checking account is to make a direct deposit. Some banks are not charging any fee on the non-interest accounts when the consumers are making a direct deposit. They are giving this option to the consumers to maintain a healthy relation with them.

2. Check your account statement: Keep an eye on your account statements from time to time. This will help you find out whether or not the bank has started charging any new fees.

3. Switch to credit cards: If the debit card issuer starts charging fees and you don’t want to pay it, then you can switch to the credit cards again. Make timely payments on the cards and take advantage of reward programs.

Finally, if you feel that your bank is charging an excessive fee on the checking account, then you can switch over to another bank. There are some banks and financial institutions that are still charging moderate fee on the checking accounts due to intense competition in the industry.

Your child is a good student in the class and respects all the elders. He is terrific in studies. But is that all? Does he know how to plan a budget and stick to it? Does he know how to use the plastic cards or pay the bills? Probably not! However, he will need these financial skills once he becomes an adult. So, as a parent, it is your responsibility to make your child go through money skill-building experiences from an early age. Read on to know about 5 financial skill-building experiences your kid should go through.

Money skill-building experiences your kid must go through

Here are the 5 financial-skill building experiences your children should go through for developing a good financial sense:

1. Ask your child to accompany you to the grocery store

When you go to the departmental store for purchasing the groceries this week, make sure you take your child with you. Usually, most of the kids love shopping. So, your child wouldn’t mind accompanying you to the store. Once you reach the departmental store, give $20 to your child and ask him/her to buy the dinner within this amount. Your child will get a lesson in choosing the nutritious food items as per the budget. She will also get to know about the role of sales-tax.

2. Ask your child to craft the budget of the family

Your child knows that his father works at a good company and earns good amount of money. However, he is clueless about how the money is spent every month. He complains to the neighbors that you don’t buy him a video game every month, unlike other fathers. So, ask your kid to plan the family budget for the next month along with you. Notify him about your income and the expenses need to be made in a month. This way, your child will be aware of the financial health of the family. He will learn budgeting skills and know the main difference between needs and wants.

3. Send your child to the creditor for making the bill payment

It often happens that you just don’t have time to pay the bills. In such situations, you can give the check to your daughter and ask her to hand it over the creditor. Make sure you write the check in front of your child. You can also ask him to write the check. This way he will learn how to write a check accurately. Tell him to calculate the bill amount before writing the check. If you usually pay all the bills online, then show him the online bill payment procedure.

4. Give daily allowance to your child and show the right way to spend it

You should give a daily allowance to your child even if the amount is as little as $1. Tell your child how to use his daily allowance. For example, you can ask him to spend 40% of the money for making various purchases. He can save 30% of his money for meeting the short-term financial goal. He can save the money for a few months and purchase his favorite video game. The remaining 30% can be used for donating in the charities and meeting long-term financial goals.

5. Show them the ways to earn money

Children will learn the value of money only when they know how difficult it is to earn a penny. An interesting way to do is by setting up a small business for your child. You can set up a lemonade stand in front of the nearest children park. Your son/daughter can sell lemonades to the people visiting the park in the evening. Your child will know how to build business/marketing skills, which is very important at the present time. On the other hand, your son/daughter can also make some quick money.

If you son is not interested in selling lemonades, then he can give pet service in your locality. He will learn to be self dependent in this way.

Last but not the least, you should show your child how to use a credit card without getting into financial problems. You may argue the need to show the right way to use credit card as it has become very tough for the college students to get one after the enactment of the Credit Card Act. However, it does not mean that the college students can’t get credit cards at all. This is why it is important for your child to get acquainted with the credit card basics before going to the college.

You can give a prepaid credit card to your child. Your child can use this card according to his/her wish. Make sure you inform your child that the money loaded in the card is his/her monthly allowance. This will make your child to use the card responsibly. They will try to not overspend. Apart from that, your child will get a first hand experience of how to use the card.

Gone are the days when wedding invitations used to fill your heart with excitement and thrill. Wedding invitations have become synonymous with extra expenses putting a hole in your wallet. Besides the big wedding day, you need to purchase several gifts for the pre-wedding ceremonies, which may leave you broke. Glance through the article to know about some frugal ideas that will help you enjoy the wedding ceremony without getting into credit problems.

Frugal wedding gift ideas

Go through the following lines to know about some interesting wedding gifts you can give without putting a strain to your wallet:

1. Set a budget for purchasing the wedding gift: Always remember that you have been invited to the wedding party because you are special to the host. It is a ritual to participate in the celebration with a gift. So, it is better to plan ahead for the wedding party before attending it. It will help you buy a suitable gift without inviting financial troubles.

Set a budget for the wedding gift. If your budget is $130, then make sure your purchase the gift within this amount. However, if you find a good item at $140, then don’t hesitate it to buy it. One should not be too mercenary.

2. Give an inexpensive gift in destination wedding: Is your friend marrying at an exotic tropical island? Do you have to stay there till the wedding celebrations are over? If yes, then there is no need to purchase an expensive gift for the couple. No one will expect you to give a lavish gift since you have to spend a huge chunk of money just to reach the wedding venue. The bridegroom may not be expecting any wedding present at all.

However, you can give a beautiful wedding card or a basket to the bridegroom. This will make the couple feel loved and cherished.

3. Buy an expensive gift in group: Your best friend is getting married. Your friend is very rich and expects you to give him a lavish gift, which he can show to his family with pride. You would love to give an expensive gift to your best friend, but don’t have the financial means to do so. In such a circumstance, you can give an expensive gift in group.

For example, you and the other nine or ten friends can contribute $200 each. So, in total you can accumulate $2000 and purchase a lovely gift for your friend. For instance, you can give a hand-tailored suit or a diamond ring.

4. Purchase a small gift for each party: If you have been invited to all the pre-wedding ceremonies, then it does not mean that you’ll have to purchase multiple gifts. You don’t have to attend every party with a gift in hand. However, if you do want give something, then you can give a bouquet of flowers or a packet of chocolates or a collage of photographs.

5. Send the gift after 6 months: According to a popular legend, guests can send a gift to the newly married couples before their first anniversary. No one believes this legend any more. However, if you can’t afford to purchase a gift at the time of wedding due to some financial constraints, then make sure you send the present within the next 6 months. Don’t delay it till one year as it makes a bad impression.

Finally, even if you can’t join the wedding party due to some urgent work, then also you should send a gift to the bridegroom. People invite you to the wedding party to bless the couple and not for the money. If you can’t afford to send a gift, then you can congratulate the couple over phone. Some people find it more endearing than the material gifts.

The east coast inhabitants are facing the nature’s wrath and fury in the last few days. You never know when you’ll be in a similar predicament in future. A hurricane, tornado, tsunami, or an earthquake can strike your place at any time. You’ll not wish to be left without any cash or important documents when a natural disaster hits your place. This is why it is better to prepare an emergency kit to minimize the psychological and financial damage that a disaster can bring upon your family. Glance through the article to know about the 6 things you must keep in your disaster emergency kit.

Things to be kept inside the disaster emergency kit

Here are the 6 things you should keep in the disaster emergency kit:

1. Account numbers: Write down the account numbers in a piece of paper or diary. It is not possible to remember the account number of your plastic cards, home loans, automobile loans, etc. Keep the paper or diary at the bottom of the kit.

2. Important telephone numbers: You should write down the contact details and phone numbers of the important persons and financial institutions in a diary. Note down the telephone numbers of the financial intuitions, cleaners, service providers, and relatives in the diary. You can also note down the e-mail address of your credit card issuer in a paper.

3. Money: You should keep some cash in your emergency kit. It is better to keep a few hundreds of dollars in your emergency kit. It is difficult to make a realistic estimate of the total amount you’ll need when a disaster knocks at your place. This is why it is better to store a significant amount in the disaster kit. It should be kept in mind that you’ll not be able to use ATMs if there is a major power failure in your locality. In case of an earthquake, the ATMs can be completely destroyed. So, save the amount in the kit and forget about it. Don’t use this money to meet your short term financial needs.

4. A credit card: Keep one credit card with a balance in your emergency disaster kit. You can use this card to purchasing food and other necessary items for a few weeks. If the damage is severe, then it may take a few weeks or months for the government to normalize the situation. Besides, you’ll also have a written document of all your disaster-related expenditures. You can use this document while making the insurance claim.

You should inform the credit card issuer that you’ll not be using the credit card on a regular basis. Otherwise, when you suddenly use the credit card at a distant place for making huge purchases, the creditor may assume it is a fraudulent activity.

5. Medical details: Gather all the documents related to your health insurance policies. If possible, make photocopies of insurance cards and claim forms. Note down the telephone numbers and the address of the hospital, medical stores, physicians, etc. Keep all these documents inside your emergency kit.

6. Legal documents: Include the copies of your will, property deed and other legal papers in your emergency kit.

In addition to the above mentioned points, you should also keep a spare cell phone with battery in the disaster emergency kit. You can save all the passwords of your online bank accounts, account numbers, insurance policy numbers, etc. in the cell phone. You can use this cell phone if the diary gets misplaced by any chance.