It was only about 4 years ago that I was a teenager and never really thought too much about how my driving affected others. With technology on the rise and touch phones such as the iPhone becoming increasingly popular, teens are spending more time paying attention to anything BUT the road.

Don’t get me wrong, I am not trying to single out the teenage population as many other generations have fallen prey to distractions while driving as well (smoking, eating, multi-tasking, texting, etc.). But in my opinion, it is best to target a population before the bad habits continue even further.

The statistics for teen driving are extremely scary and there has to be a way for parents and others to correct the path of destruction before it gets any worse. According to AAA, car accidents involving 15-17 year old drivers cost society more than $34 billion dollars! These expenses include medical and property damages as well as other related costs for 2006 alone!

So, how can you keep your children and others safe?

Here are a few tips:

SET AN EXAMPLE – Don’t show your kids what it is like to drive by e-mailing on your Blackberry or always being on the phone. Teens will learn quickly from what they have seen their parents or other family members and friends do.

SEATBELTS – I know that when I was younger I hated my seatbelt and didn’t really truly understand what it was there for. Explain to your children when they are young the importance of seatbelts and how they can be life-saving. Hopefully it will become a routine they don’t even have to think about. I automatically put on my seatbelt regardless of how long the trip.

INSURANCE - Car insurance is expensive no matter what. Put a teen behind the wheel and the price can skyrocket your rathes…sometimes by 50% - 100%! You don’t want to have to pay higher rates just because your teen is not being safe or smart behind the wheel. Make a deal with your teenager. Make sure they are following all your rules before you hand them those keys to your car! Give them the information they need to keep their insurance rates low. Some of these things include having a safer car, keeping your driving record clean (no tickets or accidents), or even doing well in school! Depending on your policy, your child could be awarded just for being a good student.

DRIVERS TRAINING CLASSES – There are tons of extra classes outside of the basic drivers education that offer teens a greater variety of learning such as driving in the rain, sleet, and snow. Skills such as what to do if you are broken down on the side of the road are also often taught. These classes can range anywhere from $60-$200 but may be extremely beneficial.

CURFEWS – In some towns there is a mandatory curfew and teens are not allowed to be out driving around past 10:00pm. However, even if your town does not have a curfew, often times it would be best if your teen had to be home at a certain hour so you knew where they were. I suggest letting them know that they can bring their friends home too (if it is feasible for you). This way they aren’t all driving around doing nothing. I know when I was in high school if we couldn’t find anything to do we would just drive around with our friends. Now that I look back on it?…How dumb and a huge waste of gas!! Make sure your teens have a trip with an actual purpose in mind.

TALK – Don’t just hand your teen the key to the car as soon as they get their license. Lay down the ground rules and make sure they understand. Tell them not to become another statistic. Maybe read them some of these…

• In a survey conducted for AAA, it was found that 15-17 year olds were involved in about 974,000 crashes that injured 406,427 people and killed 2,541 in one year alone (SCARY)!

Reader’s Digest reported some more surprising statistics:

• 87% of teen deaths involve distracted drivers (this includes radios, eating, texting, talking on your cell, etc.).
• Adding 1 passenger increases the fatal crash risk by 48%. A second passenger increases the fatality risk by 158%.
• Speeding is a factor in 35% of crash deaths involving young drivers.

All of these statistics are really scary and get you thinking about what you might be able to do to prevent this from happening. Obviously you aren’t going to have complete control over what happens…but at least you can take a step towards making things safer on the roads.

Photo: Wally Irwin

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Part of setting your budget is determining how much money you have and where it should go. And with this comes the important task of figuring out what you need verses what you want. Too many times people will set their bars really high to allow for those “extra” things that they think they need. The may put a little bit more in their food budget for those convenient snacks, or maybe a little more in the entertainment budget for those extra few drinks. But for those serious about getting out of debt, there is a lesson to be learned here. The more money you save on your wants, the more money you have to pay off your debts, and the sooner you will be debt-free.

Still trying to determine the difference? Check out what Sarah Winfrey had to say over at Wise Bread:

“But Mo-om, I want it!” How many times have you heard that in the grocery store, or the toy store, or anywhere else, for that matter? Probably more than you can count. And what do you think when you hear it? That poor parent? Or, thank God that’s not me anymore! Or, What is wrong with that child? Most of us go on our way, relieved for some reason. It’s not our kid, it’s not us, and we don’t have to deal with it.

I must admit that I am plagued with scenario every time I pass the toy section in the store with my kids. They wine and complain that they want a toy and will try to give me a valid reason for it. The answer remains the same - No. But then again, maybe I should sit back and think about my purchases, and wonder if I do the same thing. Do I try to give myself a valid reason for purchasing something just because I see it on the shelf? Keep reading:

The truth is that, as adults, there are times when we keep ourselves from throwing these sorts of tantrums by buying something we don’t need. We see an item, feel the same desperate need that child felt, and assuage our own feelings by buying the item. We have the power to do that for ourselves as adults. But these are the purchase we often feel guilty about, and one of the main ways to get rid of the guilt is to find a way to classify that purchase as something we do need. Actually, we can do this any time we regret a purchase.

So it’s time for all of us (and I include myself in this) to grow up, time to stop looking like adults on the outside but acting like children on the inside. To do this, we must learn to distinguish between what we need, what we need in certain conditions, and what we want.

Find out how to group your needs and your wants accordingly - read more of her blog here.

Also, you can share your ups and downs, ins and outs of budgeting with other users in the group It’s Time To Budget by joining in on our conversation here.

Imagine being out of work for a few months or even years! How would you get by without income? I know many of us (if not all of us) never want to find out. But if it does happen, it is best to take preventative action.

Not everyone has disability insurance and some may think they will never need it. However, disability insurance may be more important than life insurance due to the fact that you are more likely to get injured than to die (although neither is pleasant).

According to the National Association of Insurance Commissioners (NAIC) and an article on MSN.com, “Every year, 12% of the adult U.S. population suffers a long-term disability. One out of every seven workers will suffer a five-year or longer period of disability before age 65, and if you’re 35 now, your chances of experiencing a three-month or longer disability before you reach age 65 are 50%.” These statistics are greater than you would think.

Only being 22 years old, disability insurance has never even crossed my mind. I always assumed that it was for older people closer to the age of retirement.

Our partners on MainStreet.com explain that long-term disability insurance usually costs about 1% - 3% of your yearly income and protects you against the loss of your ability to get income. This seems minimal to me when you think about how much it can save you if something critical happens.

Long-term disability insurance typically covers an injury that lasts 6 months or longer where you aren’t able to earn an income.

MainStreet.com explains further that you will not regain all of your income while you are disabled and will usually get about 60% back.

The reason for this is clear – why would an insurance company want to pay you back all of your income? What incentive would you then have to return to your previous job?

Unfortunately, many companies do not offer their employees disability insurance and life insurance appears to be more popular. However, often your company may offer you workers compensation but it will not always cover as large amount as disability insurance and for different lengths of time. Make sure you know what your company offers before making a decision on disability insurance!

Different insurance companies will offer different plans with varying costs. Although it is impossible to predict what the future holds, preparing yourself for the worst possible outcome will be beneficial. Better to sacrifice a small percent of your income now than to lose it all in the future.

Photo: Stuart Whitmore

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How to Pay Extra on Your Mortgage, Save Money
Peter McDougall | MainStreet.com

The total interest you pay on a 30-year fixed rate mortgage (FRM) is typically greater than the actual amount of the loan. If you follow the payment schedule laid out by your lender, you could end up paying $256,035 in interest on a $200,000 30-year mortgage with a rate of 6.52%.

The faster you pay down the principal, the less interest you’ll have to pay over the duration of the loan.

One way to accomplish this is to arrange to pay an amount equal to half of your monthly mortgage payment every two weeks. That makes for 26 half-mortgage payments a year, or the equivalent of paying 13 monthly mortgage payments instead of 12. That thirteenth payment acts as a double payment and goes towards paying down your principal.

The savings can really add up.

Take a look at the biweekly mortgage calculator at BankingMyWay.com to see how much quicker you can pay off your mortgage with biweekly payments, and how much interest you end up saving over the life of your loan. Just enter in the amount, interest rate and term of your loan, and the calculator crunches the number for you.

Based on the above $200,000 30-year FRM at 6.52%, making the biweekly payments could save you $59,138 in interest payments over the life of the loan. You’ll also pay off the loan almost six years early.

Most lenders offer a biweekly option, but it will likely cost you. The one-time fee to set up the arrangement can cost upwards of a few hundred dollars, with additional smaller fees per year or per month totaling $50 to $60 per year. That could add up to nearly $1,500 in fees for a $59,138 interest savings.

That’s not a bad return, except that you can basically achieve the same savings without incurring any of the fees.

The typical biweekly payment plan deposits the money into an account every two weeks, and at the end of the month, your mortgage lender withdraws an amount equal to one full monthly mortgage payment. The leftover money accumulates each month, and is put towards the principal at the end of the year — an amount equivalent to a single monthly mortgage payment.

Your interest savings are based on that extra end-of-year payment, not on a biweekly recalculation of your compounding interest. (There are some biweekly plans that recalculate the interest based on each half-mortgage payment, but those require much more work on the part of the lender, and so the fees are much higher.)

If you want to avoid the fees, but achieve the same amount of savings, just add on one-twelfth of your mortgage payment to each month’s payment, and you will accomplish the same end of year prepayment. Most lenders even have a line included in your mortgage payment voucher for additional payments that are put toward paying down your principal — these are often labeled “principal curtailment.”

The trouble is, not all consumers have the discipline to add on that extra amount each month.

If you want the savings but have difficulty taking the necessary steps yourself, you should contact your lender about a biweekly payment plan. Be sure to look closely at the fees they charge, and discuss options for automatic withdrawals from your bank account.

Photo: photojock

5 More Messy Money Mistakes and Quick Fixes
Farnoosh Torabi | MainStreet.com

To read part 1 of Five Messy Money Mistakes and Quick Fixes click here.

Few mistakes irk MainStreet more than those made with money. Good thing many messy money mistakes can be solved pretty easily. MainStreet rounded up some capital money managing minds to tell you what to do.

MISTAKE: Ignoring Bills
Even if you pay your bills online, you should still take a look at the paper copies before tossing them in the trash. A quick glance at your Verizon (VZ) bill may show you’ve been going over your minutes and paying extra every month. You could also catch extra promotions or gift offers.

THE FIX: Hire a Snail Mail Scanner.
If you’re out of town often, have a fear of paper cuts or just prefer doing everything online, Earthclassmail.com is one solution. It’s an online snail mail scanner that lets you view your mail as a PDF document. It then shreds or forwards your mail, upon request.

MISTAKE: Writing Checks
While the use of checks is declining each year, the Federal Reserve still recorded some 30 million check payments in 2006. We spend $22 billion on stamps each year, alone, according to the United States Postal Service. But that’s beside the point. “It’s not the money you spend doing them, it’s the reliance on snail mail and the exposure to possible theft that are the major downsides,” says Greg McBride of Bankrate.com.

THE FIX: Hire an E-Payer.
There are legitimate Web sites that keep tabs on your bills and help you e-pay. Check with your bank first, as it may offer a free service linking your bank account to creditors. Otherwise, comparison-shop for a third party bill payer. Checkfree.com is the chief middleman for online bill payments. Facebook users can also download the Pay Me application for free, which is powered by PayPal (EBAY), for peer-to-peer electronic payments.

MISTAKE: Buying Extended Warranties
An extended warranty is a cash cow for retailers. “At some stores, it’s most of their profit,” says Daugherty of Consumer Reports. Plus you rarely need to use these “protection plans” as electronics have become more reliable. “If they’re going to break, they’ll break during the original warranties,” says Daugherty. For example, just 10% of digital camera buyers needed a repair within three years, according to researchers at Consumer Reports.

THE FIX: The 90-Day Rule.
If the manufacturer’s warranty expires in just a few months, then that extended retailer warranty may be worth considering, depending on the reliability of the product and what the retailer’s warranty actually covers. Consumer Reports suggests getting an extended service warranty for Apple (APPL) computers, for example, because the tech giant only offers 90 days of free support. Products like three and four year-old computers, riding mowers and lawn tractors also need more repairs. If you think you might need more coverage down the road, Tod Marks, a senior editor at Consumer Reports, says you can sometimes buy additional protection directly from the manufacturer. “I’ve received solicitations from companies like Sears and Honda, giving me an ‘opportunity’ to continue coverage after the initial warranty expired,” says Marks.

MISTAKE: Mystery Spending
You hit the ATM five hours ago and already your cash is gone. Men are the worst at forgetting how they spent their cash. Visa (V) USA recently found men 34 and under lost close to 60 bucks a week, or a total of more than $3,000 a year. Women, meantime, lost an average $2,700 a year on miscellaneous purchases.

THE FIX: Watch For a Week
While some traditional financial experts preach keeping a strict budget and writing down monthly purchases to learn your spending habits, that’s not practical. David Bach, author of Go Green. Live Rich, says seven days of tracking should be enough monitoring. “It’s an honest snap shot of how you spend money,” says Bach. “The key is to not change the way you spend money. Don’t become a better person on the third or fourth day.” In his research, Bach has found that on average many people spend 50% more a day than they actually think they’re spending. Sites like Bach’s automaticmoneymanager.com and mint.com can help track your spending, too.

MISTAKE: Not Giving Enough To Charity.
Your housing and car payments are eating up most of your disposable income, leaving you with little to no money to donate to your favorite charities. Besides the tax benefits, giving brings good karma.

THE FIX: Donate on Autopilot.
Determine how much you can contribute weekly, monthly or annually, and then look for qualified charities on justgive.org or guidestar.com. You can have a specified amount deducted automatically every month directly through the charity, or through sites like networkforgood.org/donate and guidestar.org. Also, American Express’s (AMEX) GivingExpress program awards points for being charitable. Visit americanexpress.com/give for more information.

ANOTHER FIX: Be a Venture Capitalist.
There are a growing number of social entrepreneurship sites like kiva.org, microplace.com and villagebanking.org that link business owners in developing countries with individual lenders. However, you can’t deduct part of this charitable giving from your taxes, because it’s technically recorded as a loan. But you can earn interest, “and you get to see who you’re helping directly online,” says Bach.

5 Messy Money Mistakes and Quick Fixes
Farnoosh Torabi | MainStreet.com

Few mistakes irk MainStreet more than those made with money. Good thing many messy money mistakes can be solved pretty easily and MainStreet rounded up some capital money managing minds to tell you what to do.

MISTAKE: Loaning Dough to Your Deadbeat Friends
Out of the 800 people surveyed in the new book Isn’t It Their Turn to Pick Up the Check? authors Jeanne Fleming and Leonard Schwarz discovered more than 40% of lenders never got repaid in full from friends and family. Nearly one in three got totally stiffed. “A lot of people find themselves becoming someone else’s ATM,” says Fleming.

THE FIX: Sic Your Friend on Someone Else
The internet is packed with people willing to finance your deadbeat roommate’s latest get-rich scheme - even if his credit stinks. Help your friend set up an account on social lending sites like prosper.com and lendingclub.com, which link individual microlenders with eager borrowers, at interest rates much lower than traditional banks. If you can’t say ‘no’ put an agreement in writing, so there are no misunderstandings, says Schwarz. And for big loans, more than $500, you may want to hit up a third party intermediary like virginmoneyus.com, which helps draft a contract, set up an agreeable interest rate and facilitate the loan payments to take the pressure off your back to collect.

MISTAKE: Getting Suckered into a Store Credit Card
Sure, the 20% initial discount is tempting, but unless you can pay off your balance in full every month, don’t bother opening a store credit card. They’re notorious for their hidden late fees and higher-than-average interest rates of more than 20%. So if you don’t pay on time, “the discount can disappear,” says Carmen Wong Ulrich, author of Generation Debt. Psychologically, these cards also seem like a fake license to spend more, adds Gary Schatsky, a financial planner and co-founder of objectiveadvice.com. Just to clue you in - consumers owed more than $100 billion on these so-called limited purpose cards in 2006, according to cardtrak.com.

THE FIX: Nab a Discount Anyway, By Asking!
Face it - You just want the card for the immediate savings. So, just as you’re about to ring up a big-ticket item, ask for a discount or freebies. That’s right. Ask. “Often they’ll try to accommodate you in some way,” says Greg Daugherty, executive editor of Consumer Reports. If you’re about to buy a heavy item, like an entertainment set or a treadmill, ask for free delivery. “In some cases maybe they’ll throw in pillows if you’re buying a sofa,” adds Daugherty. For electronics and appliance stores he suggests asking if they accept competitors’ coupons. “You may get 10 or 20 percent off right there.”

MISTAKE: Feeding a Bar Tab
Consumers racked up more than $2 trillion on major credit cards last year, according to surveyors at cardata.com. That includes rounds of tequila shots. Michael Sinensky, owner of four bars in New York, including the famous Village Pourhouse, says about twice as many patrons are opening tabs these days, versus two years ago. That’s good news for his revenue stream, bad for your bank account. “When you put down a credit card you feel like you’re not spending any money,” says Sinensky. Plus, you’re forced to pay a minimum $10 to $25 at many bars when you pay with plastic, even if it’s a debit card.

THE FIX: Go One For One.
Better to carry a limited wad of cash and pay as you go. This way, says Sinensky, “you realize your wallet is getting lighter and lighter,” and you can budget. You’ll also spend less on tips this way, dropping the acceptable $1 per drink versus 20% or more on a total bill. And as Sinensky explains, the heat is on when you’re ready to finally close the tab. “A lot of people feel when you have a tab at the bar, the [bartender’s] going to notice what you tip right away.

MISTAKE: Paying For Awful Service
Just 9% of unhappy male customers ever complain, according to a new study by Technical Assistance Research Programs (TARP). “The exception is being delighted,” says Dennis Gonier, CEO of TARP Worldwide. “[People] expect bad service.”

THE FIX: Kvetch
With the right panache, you can get out of paying for subpar service and maybe even score freebies. Your food’s undercooked or it came a half hour late? “Talk to the restaurant manager right on the spot and make a stink then,” says Walter Brewster of the Better Business Bureau in New York. If that gets you nowhere, follow-up with a formal letter cc’ing the industry enforcers (e.g. the health department, the BBB) and see if that does the trick. Internet’s been down for hours? “You’re entitled to a partial refund,” says Ben Popken, editor of theconsumerist.com, a consumer advocacy blog. Same goes for most contractual services that bail on you, like your cell phone or cab. Make a phone call immediately to customer service. When possible, speak immediately with the manager or CEO in person. “You want to makes sure you’re talking to someone who can actually fix your situation,” says “Complaint Girl” Ami Woods, a marketing consultant with amiwoods.com. And finally, adds Gonier, remember to thank them ahead of time for helping you out. “Never underestimate the value of charm!”

MISTAKE: Pre-Spending
You bought a couch with your anticipated tax refund. You rang up a new plasma TV before the annual bonus arrived. Spending money before you receive it is basically a fast-track to generating more debt. Can you blame us? “We are culturally programmed to celebrate before we have our win,” says David Bach. “We’re marketed to pre-spend our money.”

THE FIX: Pay Yourself First.
It’s Bach’s tried-and-true money mantra. Automatically putting away just an hour a day of your income into a savings vehicle will come in handy as a reserve next time you’re tempted to book a trip to Hawaii with the spot bonus (that you think you’re getting).

Go to MainStreet.com for more messy money mistakes, and quick fixes, tomorrow!

Photo: Álvaro Daniel González Lamarque

Retirement is a hot topic nowadays! With social security not guaranteed, people are trying to plan and prepare for the future more than ever.

BankingMyWay.com provides users with an easy step by step Retirement Calculator that lets you determine how much you should put away per month to reach your desired amount of money for retirement. The retirement calculator resource at BankingMyWay.com provides you with all the details to explain each number that you input into the calculator.

The retirement calculator takes into account your annual savings, expected rate of return, and your current age which will all have an impact on how much you should save each month.

Try out the calculator to see how much you should start saving today!

**Remember, saving early and planning your budget is one of the best things you can do to plan for your future!! Let Geezeo help you reach your expected retirement goals!**

My 3 year old has an interesting obsession with quarters. Everytime we go to the store, he wants one - but not for the toy machines (hint: we never stop in that area at the front of the store, so I doubt he even knows it exists). He wants to put it in a donation receptacle for the Children’s Miracle Network. Does he realize the good deed? I’m not sure. But for him it’s fun to watch the coins go around in circles before it drops into the bottom.

I’ve been thinking here recently about how we can be more effective at teaching our kids the value of money and the importance of saving it. I know, they’re only 3 and 1. But I’ve read in various articles that 3 is a good age to start. Here are some of the things that I have learned:

1. Give your children an allowance of $0.50 for every year of age/week. So a 3 year old would get $1.50 or a 10 year old would receive a $5 allowance.

2. Give the allowance on a Sunday so that they don’t blow it on the weekend.

3. If they run out of money do not give them any more.

4. Teach them to save a portion for purchasing goals that they may have (like a new toy). One portion should go to long term savings (bank account), another portion to midterm savings (piggy bank), a small portion to charity, and the rest is spending money. (This works best with older children.)

Of course, you should never make your child feel guilty about not saving their money if they choose to buy a toy instead. After all, how well are you doing with that personally?

They say to practice what you preach. So if you are trying to show your kids how beneficial it is for them to save their money, then why not prove it to them by actively saving money yourself. You could have a small amount that they see you put into a piggy bank, just like them, so that they will want to be just like you. Afterwards, you can deposit the rest of the savings into a safer place like your bank.

What are you doing to help your children learn about the value of earning, spending and saving money? Share your stories in the group Financially Frugal Families.

June is around the corner. Are you hearing the faint beginnings of wedding bells? If so, be careful and avoid some of the biggest marriage mistakes.

Here, another great article from Mainstreet.com.

—
Say ‘I Don’t’ to a Wedding Loan
By Jeffrey Strain

Taking out a wedding loan is one of the biggest financial mistakes a couple can make.

With the wedding season upon us, brides and grooms are going to be shelling out big money to get married. U.S. couples spend on average more than $28,000 for a wedding, with the average wedding in bigger cities costing as much as $50,000.

These numbers don’t even include the honeymoon, engagement ring, bridal consultant or wedding planner, all of which can add tens of thousands more to the cost of a wedding.

In the past, families of the bride and groom typically helped out with wedding expenses, but with the prices of weddings so high and people waiting until later in life to get married, it’s becoming more common for the bride and groom to pay for part or all of these expenses.

This is fueling the growing trend of couples getting wedding loans.

Both secured and unsecured wedding loans are available, and loan amounts can vary greatly, from as little as $1,000 all the way to the high five-figures.

Continue reading to avoid some common wedding and partnership money mistakes!

I was looking out my front door this morning, watching a bird perch inside the the top corner of my porch. At first, I passed it off as nothing since it flew away. However, I saw the same bird on the ground looking for something. I assumed it was food. However, the bird picked up some dried grass, flew back to the same spot, and carefully placed it, just to fly away again (to get some more I presume). When the bird flew away tho, it’s efforts seemed pointless since it kicked the blades of grass just enough for the wind to take them away.

Well, did the bird give up? No. The bird kept bringing back blades of grass, small twigs, anything that would be suitable for the nest it was making. Eventually, the nest settled into place and began to form.

You might wonder at this point what exactly this has to do with your finances? Good question. Use a little bit of imagination, and think about when you are trying to build a “nest” of savings. Every once in a while, a “gust of wind” may come along and blow some of it away, something that could quite possibly be out of your control. But should you give up trying to add to that savings, wondering if another “gust” will just take it all away? Of course not. Eventually, the pieces will fall into place and stick. Your actions will become habit, and you will be able to fulfill your goals of paying down debt, and building a substantial savings.

For instance, we recently came up with a master plan to solve our debt issues and build a decent “nest” of savings. We thought it was going to work just great. That is, until a “gust of wind” came along, and blew that plan out the window. Due to work slowing down, and the inability for the company to “afford him”, my husband lost his job this past week. While I could sit here and be upset and/or depressed about the situation, we decided to make the best with what we have. Our end goal is to still pay off debt and build a savings - that won’t change. What will change is the path we are going to take to get there.

Let Geezeo help you see where your finances are, create a budget to be able to live within your means, as well at set some goals to save for your “nest”.

(Photo Courtesy of: Niuet / Stock.xchng.hu)