Tag Archives: money

Money Matters: 10 Reasons Why You Might Be Financially Stressed

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By Nathaniel Sillin

Stress can come from everywhere—career, school, family, relationships, health—and especially money.

The American Psychological Association (APA) recently reported that money remains the number one stressor for 72 percent of Americans. In fact,money has led the APA’s annual stress survey since its debut in 2007, the year before the financial crash that took the U.S. economy into its worst slump since the Great Depression.

Are you financially stressed? Here are 10 major signs of financial stress and ways to take action.

  1. You wonder if your job is secure. Even though the economy has improved in recent years, employers still cut and reassign workers and make occasional adjustments in pay and benefits. If you’ve spotted changes in other departments or news accounts suggest a shift in your industry, start thinking ahead. Action plan: Build up your emergency fund to cover six months or more of basic living expenses, update your resume and get organized for a potential job search.
  2. There’s no money to save or invest. If meeting basic expenses is a struggle and you have no savings or investments at all, it’s time for a serious review of where your money is going. Action plan: Making a basic budget is the first step to tracking every penny spent. Figure out extras you can cut and set more aside for savings and debt payoff.
  3. You have disagreements with a spouse or partner about money. A 2013 University of Kansas study noted that arguments about money are the top predictor of divorce. Action plan: Share information about all debt and legal issues and exchange respective credit reports and credit score data as you plan to solve all money problems together.
  4. You are paying bills late. Late payments can hurt your credit score. Action plan: Set up a physical or digital calendar to keep track of payment dates and budget in order to put more money toward debt and eventually savings
  5. You imagine a windfall. Waiting for a bonus, an inheritance or even a winning lotto ticket to ease your financial stress indicates you have a tendency toward financial denial. Action plan: If your current efforts at budgeting, saving money or paying off debt aren’t working, consider a reality check with a qualified financial advisor.
  6. You use your home equity like a cash register. Home equity loans or lines of credit can provide an interest-deductible solution for a variety of important needs, but a down housing market can wipe out your equity. Action plan: Either refinance if you qualify or stop using the line entirely until you can pay down the balance.
  7. You’re considering drawing from retirement funds to solve money problems. Think twice before taking out loans against these funds. Interrupting your retirement planning, particularly over the age of 50, can have significant financial consequences. Action plan: Re-budget your finances and seek qualified advice to help you find another solution.
  8. Late and overdraft fees are piling up. According to the Pew Charitable Trusts, the average bank overdraft fee is $35; credit card late fees are similar. Action plan: Schedule bill payments and opt for online billing when possible to save time on mailing. If you have to pay additional late fees, ask your bank or credit card company if it might forgive the fee; many will remove one fee a year.
  9. You’re late on student loan payments. It is difficult to have student loans forgiven, cancelled or discharged (eliminated) in bankruptcy if you can’t pay. Paying late can also hurt your credit score. Action Plan: Seek qualified financial advice that specifically addresses the type of student debt you have and resolve to pay bills on time.
  10. Your accounts are disorganized. It’s difficult to reach important financial goals when you really can’t track your finances. Action plan: Get some advice from a trusted friend or a qualified financial professional about how to best organize your accounts and whether online account management may be right for you.

Bottom line: Reducing your financial stress is a healthy decision. Review your money habits and get qualified help if necessary to lessen this burden.

Sherwood Park Makes a Splash

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By Emily Fedor

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Everyone deals with grief differently, but three Dunmore families that each faced a loss of their own chose to turn their grief into something positive and honor their loved ones in a very special way.

The Zayac family lost their “Sweet Baby Jude” in 2014 as the result of SIDS—Sudden Infant Death Syndrome. Mark and Diane Michalczyk’s son Ryan passed away in his sleep in 2009. And Dorothy French Conway lost her long and bravely fought 11-year battle with ovarian cancer in 2011.

Carol Conway, Dorothy’s mother-in-law, said that at the end of Dorothy’s life, she wanted a play area where children could gather and enjoy summertime fun to be constructed.

“She was such a wonderful mother and educator…and she loved children,” said Conway. “She just felt that establishing something would give them a focus. They needed to know that they were important. She was the most selfless person.”

With similar hopes of finding a way to give back to the community and memorialize their own loved ones, the Zayacs and the Michalczyks appeared to be the perfect partners to make that dream a reality.

***

Years ago, Sherwood Park was home to a small wading pool, an area where many children were able to play and keep cool during the hot summer months. But in 2006, the pool was drained and filled in.

Susan Brace, treasurer of the Sherwood Youth Association, said, “We had to fill in the pool because of rising insurance costs. We had to keep a lifeguard on duty, and the pool was actually deteriorating.”

Brace said the idea of creating another water attraction was in the making for years, but the organization never thought they would be able to secure the funds needed to make the idea a reality.

In 2008, Tammy Robson, a former Sherwood Youth member, did a college project on installing a splash pad at the park in the same spot where the old wading pool once stood. Robson included pictures and financial estimates and ultimately made the concept a little more concrete.

“This has been an on-going idea for years,” said Brace. “We saw them [splash pads]  in the area and wanted to build something where they [local children] could enjoy the summer months, but we never thought we’d be able to do it because we never thought we’d be able to raise enough funds.”

The Dunmore Summer Festival hosted annually at the park brought in some funds, but it was not until the Michalzyk family brought in the first major donation in May of 2014 that things finally got moving.

Diane Michalzyk said that her family worked to remodel the park area at St. Anthony’s Memorial Playground in Dunmore in 2011 in memory of her son Ryan. They had an idea to construct a water attraction there but quickly realized it was a big project to tackle alone. So when they heard Sherwood had a similar idea, they immediately jumped on board.

“With the combined resources from the families and Sherwood Park, we were able to accomplish that project faster than if we went at it on our own,” said Michalzyk, “and the experience was just priceless.”

Shortly after, the Conway and Zayac families heard about the park’s splash pad plans and joined the efforts to make the concept a reality. And with that, the dream team was fully assembled.

Each family had a memorial foundation established in names of those they lost—the Jude Zayac Foundation, the Ryan Mason Michalzyk Memorial Fund and the Dorothy French Conway Memorial. Different fundraisers that each family conducted provided crucial funds that allowed construction to begin. Sherwood Youth also qualified for a $45,000 state grant funded by Mount Airy Casino Resort slots revenues—a share of money distributed annually under the 2004 slots law.

In March, the final design was completed, the splash pad equipment was purchased from Aquatic Recreation Company, based in Eden Prairie, Minnesota, and construction plans began to play out. Reilly Landscaping excavated the former wading pool area in May once the frozen winter ground finally thawed, and in June, Perry’s General Contracting was chosen to spearhead the splash pad construction.

At the end of  nearly a month of construction, the non-slip finish was applied to the concrete surface, and the Splash and Play Zone was finally ready to be revealed.

The officers of the Sherwood Youth Association hosted a dedication ceremony and ribbon cutting to open the pad for public use on Sunday, July 19. The national anthem was sung by Thomas Pyeron, and a blessing was given by Rev. John A. Doris. Additionally, Mayor Patrick “Nibs” Loughney and each of the families were presented with plaques—a token of gratitude for the part they played in bringing the concept of the splash pad to life.

After a balloon release, the cutting of the ceremonial ribbon and the unveiling of a monument honoring Jude, Ryan and Dorothy, children from each of the three families pressed the activation ballard together—turning on the splash pad for the first time.

Greg Zayac, father of Jude Zayac, admitted that the day was a bittersweet but enjoyed seeing all the families who came out for the opening playing on the splash pad and having a good time.

“It was a little emotional,” said Zayac. “It’s unfortunate that we all had to lose someone for this to be a reality, but it’s really been inspiring and helpful in our grieving process. I think it’s a great thing for the community, and the kids really love it.”

***

The Sherwood Youth Association is now preparing for their annual summer festival, which will take place on August 13, 14 and 15. The fun-filled event will be the perfect platform to showcase the park’s new attraction and allow locals to enjoy some hot summer nights.

Building a Back-to-School Budget

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By Nathaniel Sillin

Back_to_school

Back-to-school spending isn’t just about clothes and markers anymore.

In 2014 Forbes reported that Accenture estimated that nearly half of respondents reported they would spend $500 or more on back-to-school expenses, including not only clothes and desk supplies but electronics as well.

Yet there’s one more aspect of back-to-school spending that’s growing and can add hundreds—and sometimes thousands—to a family’s overall K-12 education budget. Since the 2008 economic crisis, many public school systems have tried to make up for funding shortfalls by adding first-time or expanded fees for sports, extracurricular activities and specialized academics.

This means that back-to-school budgeting, even for families with kids in public school, now requires a more holistic, year-round approach to all back-to-school expenses.

Given their potential dollar amounts, parents should examine school fees first. Public education has never been completely free of charge beyond local taxes. (Parents have traditionally paid extra money to support their kids’ participation in sports, music or other extracurricular activities.) However, many school systems are adding fees for a broader range of offerings including after-school activities, top-level courses, lab-based instruction and even Advanced Placement or AP classes. So before you start spending money on clothes and supplies that can be bought off-season, on sale or possibly used, get a handle on how applicable instruction and activity fees might affect your budget. Parents in financial need may qualify for public aid or grants to cover such fees; if not, choices will need to be made.

Consider turning back-to-school shopping into a money lesson. Most kids like to have certain kinds of clothes, shoes or supplies. Those “wants” can be turned into a discussion about spending priorities, value, choice and comparison shopping. Using the back-to-school budget calculator with your kids can help them learn how create a budget before shopping so that you only come home with the essentials. As kids get older, the discussion can expand to cover bigger-ticket purchases like smartphones, computers and fees for special courses and activities they want to pursue. Some of these issues might evolve into a discussion about earning money through chores or a part-time job.

Once priorities are decided, every expense should be tracked, including a child’s round trip school transportation, meals, tutoring fees or immunization and health care expenses not covered by insurance. And once that budget is set, it means a constant search for smart ways to save. Some ideas may include:

  • Carpooling – Track your costs to make sure you’re not adding significantly to your overall transportation budget.
  • Packing lunches at home
  • Working with school administrators to raise outside donations or grant funding to cover parents’ out-of-pocket costs
  • Organizing school supplies in one place to avoid purchasing duplicates
  • Renting equipment, supplies or instruments used until a child’s interests are established
  • Scouting garage sales, thrift shops and online marketplaces for used, required-edition textbooks, instruments, electronics, sports equipment, clothes and other supplies you’d otherwise buy new; online resources shouldn’t charge shipping or return fees
  • Reviewing school and classroom supply lists before buying essentials
  • Bulk and group-buying supplies and services with other parents to get volume prices
  • Consolidating back-to-school shopping during tax-free days (if your state offers them)
  • Swapping used supplies and equipment with other parents
  • Checking retail memberships for any back-to-school savings they offer
  • Watching for print and online coupons or special discount offers through your school
  • Listening to your kids – They might spot money-saving ideas faster than you can

One final secret budget item—rewards. Saving money on back-to-school expenses can help parents meet a number of financial goals, but kids’ academic or activity success deserves recognition. Consider setting aside a little of those savings for a reward they can enjoy.

Bottom line: When setting your back-to-school budget this year, think beyond the supplies. Consider every possible fee and expense associated with your child’s school year and plan accordingly.

Nathaniel Sillin directs Visa’s financial education programs. Follow Practical Money Skills on Twitter at @PracticalMoney.