Check out the 5 financial tips for the 2nd week of January 2012

Tip no 1 - Take advantage of federal student aid to lower your child's education cost.

Apply for a federal student aid when your child is at college. The school tuition fees have increased in most states of the country. If you have not opened a 529 savings account for your kid, then it will be very difficult for you to bear the educational expenses. During these times, it becomes more than essential to apply for a federal student aid.

Download and fill out the requisite forms as soon as possible. Gather all the relevant documents and submit them to take advantage of federal student aid.

Tip no 2 – Consider how much you are saving, before you sign up for a debt consolidation program.

A debt consolidation program makes the debt repayment process comfortable for you. It helps you pack back your creditors without making too much financial sacrifice. However, keep in mind that you need to have some money to erase debt through a consolidation program. The counselors will charge a fee for negotiating with your creditors on your behalf. Moreover, they will not pay back your creditors out of their own pockets. You'll have to send money to the debt counselors every month. This is why it is better calculate how much you are saving before enrolling into a consolidation program.

Tip no 3 - Have regular "financial" family meetings.

Sit with your family members at least once a week. Talk about the family income, expenses, savings, etc. with your family. A weekly meeting will help you know about the financial progress of the family. You can find out if the family expenses have been more than the budgeted income in a certain week. If that is the case, then you and your family can take steps to control the expenditures in the following week. The biggest benefit of weekly financial meetings is that your family can avoid getting into a debt cycle.

Tip no 4 - If you have dependents, get disability/life insurance, a will and an estate plan!

If your spouse, children and parents are depended upon you emotionally and financially, then you need to make some arrangements for their well-being, especially when you're not physically present in this world. Purchase a life insurance policy to help them financially recuperate after you've gone to heaven. Make a will to distribute your assets amongst your descendants. You'd never want that your family fights over money issues when you're not here any more. Purchase a disability insurance policy for having a steady source of income when you lose your job due to accident.

Tip no 5 - Be a smart shopper and spend money only on most essential things.

A smart shopper is the one who does not waste any money. He/she purchases the essential items from the stores. A savvy shopper will refuse to spend bucks on the items he/she does not need. He/she will create a shopping list before heading to the store and purchase the items accordingly. The shopper will use coupons to get discounts on the items. He/she will purchase the items in advance (especially in the festive season) and take advantage of the sale offers. The main motto of the smart shopper is to buy essential things at minimum cost.