Aug 29

Back to School

529 Plans, Back to school, College Savings Accounts, Expenses, Uncategorized, shopkick.com No Comments »

Tis’ the season….the back to school season that is.  The days of summer are dwindling down and it’s time to ramp up for the new school year.  If you are anything like me, you are scrambling to get haircuts, sneakers, backpacks, and of course the never-ending list of school supplies all before the school starts.  Let’s not forget the all important first day of school outfit.  All in, according to the latest report release by the National Retail Federation, the average family with students in grades K-12 is expected to spend $606.40 on school supplies and related items, up from $548.72 in 2009.  Total spending on kids K-12 is expected to reach $21.35 billion.

While spending on school age children is expected to increase, spending on college-specific items will remain similar to last year.  The average college student’s family will spend $616.13 on new apparel, furniture for dorms or apartments, school supplies and electronics. Students and their families spent only slightly more last year ($618.12). Total spending on back to college merchandise is expected to reach $33.77 billion.  Of course that doesn’t take into account the actual cost of college.

This year it’s all about smart school spending.  Comparison shopping, coupons, coupon codes (if buying online) and “daily deals” are making it easier than ever to avoid paying retail.  The latest technologies have brought discounting to the forefront and have become more accessible for all of us.  In fact, shopkick.com has recently unveiled a new smartphone application which uses geo-location technology for delivering custom-made discount offers to the mobile handsets of perspective shoppers.  With developments such as this, instead of having to look for discounts, the discounts find you.  Yes, things are still expensive, but saving a little here and a little there can really add up.

Other than cleaning out closets of clothes that don’t fit it’s also a good time of year to start re-thinking allowances and the chores and responsibilities that go along with it. Along those lines, I was thinking earlier that now is the precise time I  ”should” be contributing to college costs so that I have plenty saved by the time I need it.  Next on list: look into 529 plans and other college savings accounts and start budgeting for it.

I know that budgeting, saving, and smart spending is not easy.  If it were, we’d all be pros at it.  Thankfully, Kiboo will help simplify the process and make things a lot less difficult.

Enjoy the last unofficial days of summer.

Any thoughts or comments?  We’d love to hear from you!

Meredith

meredith@kiboo.com

Tagged with: • • • • • •
Aug 20

Giving Big Bucks to Small Acts of Kindness

Did you Know, Giving, Happiness, Ideas, Kiboo Causes, New York City, Uncategorized 2 Comments »

They say we are coming out of a recession, but from my vantage point, times are still tough. Employment rate is hovering at 9.5%, gas prices are pushing $3 bucks a gallon, credit is tight and lending is even tighter. I am not saying the world is coming to an end here…  actually, it’s the opposite. I see the brightest moments coming out the other side of the last 2+ years.   People are realizing the power of giving back (or maybe we are just becoming more vocal on the subject).

I heard Richard Parsons speak at an event last week and he said that to give back equals happiness. I could not agree more. People from all walks of life are starting to figure that out and I love it. We are finding ways, big and small, to make a difference. Whether it’s helping a neighbor, volunteering or forking over the green stuff.  My motto is do whatever you are comfortable with.

When I was a practicing estate planning attorney, I discovered that people fall into three camps: (1) I don’t believe in giving-only my family should benefit from the fruits of my hard work; (2) I want to give, but I am not sure how much I will need for myself and my family so I will give to charity when I die; (3) I believe in giving now to people and causes because I want to make an impact right now.  If you are inclined to give, great.  There are plenty of ways to do so that do not involve money.

Giving is like sharing. It is something that is taught or learned over time. I am a twin so sharing is something I became accustomed to quickly (probably in the womb). However, my first experience with giving that I remember was when I was about 14 years old and my synogogue made us volunteer at the nursing home across the street. I didn’t understand why and I complained to my parents that they were forcing me to go to a smelly place with old people that I didn’t know. My lack of maturity aside, it seemed plain weird to me. After a few weeks, I made real bonds and connections with the people and continued volunteering there until we moved.  When I landed in Manhattan, I started a Big Brother Big Sister program in my school and continued to find ways to volunteer.  Thinking about it, in many ways, helping others and giving back is a selfish act with a double-bottom line…doing good makes you feel good.

The Giving Pledge is Warren Buffet and Bill and Melinda’s Gates’ project to get uber-rich (I’m talk’n billionaires) talking publicly about giving. I know that many of the people on the list have been long time philanthropists, but reading the public statements from Larry Ellison,  Mike Bloomberg, George Lucas and others are inspiring. On the other side of the spectrum, is the story of Hannah Salwen convincing her father, Kevin Salwen, to sell their home, downsize and give half the proceeds of the sale of the home to charity. They tell their story in a book called The Power of Half. Another approach all together is believing in the power of people. For example, I heard on the radio the other day about a woman in Manhattan who was approached by a homeless man asking for cash to purchase Vitamin Water and cigarettes (Yes, Vitamin Water, it’s NYC). She didn’t have cash so she offered him her Amex card instead. He took her up on the offer and returned the card a few minutes later. Here is a link to the article in The Post.

Oh, and by the way, it’s not all about giving money. It’s about acts of kindness, big or small. Already today, I helped a blind person cross the street. It didn’t cost me a dime, helped another human being, and made me happy. The message here is try it once and if you don’t like it, you never have to do it again. But if you do find happiness, figure out ways to continue.

Lisa, Founder & CEO
www.kiboo.com
www.facebook.com/kiboo

Tagged with: • • •
Aug 13

How important is your Credit Score?

Credit Cards, Credit Score, Uncategorized, credit, money No Comments »

So what is it about those three numbers that have such a major influence and impact in our lives?  I am not talking about your weight or cholesterol level (although those are significant too), I am talking about your credit score.  A credit score is a 3 digit number that is figured out  through a complex algorithm to determine one’s creditworthiness that is available through your credit report.  Think it’s not that important, or that it doesn’t affect you?  Think again.

The world of credit has seen drastic changes lately.  Our creditworthiness has fallen sharply due to the recession and the housing bust.  As of April 2010, 25% of Americans had fallen into the least creditworthy category (a FICO score of under 600).   While interest rates are low, lending standards are much higher.  Having a high credit rating has become more important than ever.

How does this impact you? A low credit score affects our ability to get a credit card, the interest rates we pay on them, our capability of obtaining a mortgage or renting an apartment, and even the possibility of getting a job.

Annualcreditreport.com allows you to request a free credit report once every twelve months.  The 3 big nationwide consumer credit reporting companies are:  FICO, Experian, and TransUnion.  It is important for us to take advantage of this in order to identify and/or fix any possible errors.  Other ways to increase your credit score can be found in the accompanying short video.  To find out more about this topic, visit  http://money.howstuffworks.com/personal-finance/debt-management/credit-report1.htm

I hope this has shed some insight, and prove that these scores are not to be taken lightly.

Meredith

Tagged with: • •
Jul 30

Financial Reforms and Their Impact on You

Banking, Banks, CARD Act of 2010, Credit Cards, Dodd Frank Wall Street Reform, Overdraft Protection, Reform, Reg E Opt-In, Uncategorized, money No Comments »

It’s hard to keep track of all the recent legislation that has been passed within the last couple of months.  Without sifting through the thousands of pages it is difficult to make sense of it all.  Below is a brief summary of a few of these changes and how they can affect you.  For more in depth information on these reforms please click on the link provided.

The Credit Card Accountability, Responsibility and Disclosure Act (CARD Act)

The CARD Act went into effect February 2010.  Designed to protect consumers from unfair credit card and billing practices, this law has many new provisions around fees, interest rates, and marketing. Highlights include:

  • Notifications and Billing Requirements-Credit card companies must now give 45 days notice to any changes to the terms of their cards.  This includes interest rate increases and fees (annual or late payments).
  • Monthly bills must be sent out at least 21 days before it is due and must have a consistent due date .
  • Credit card companies can no longer increase your interest rate within the first 12 months of opening an account.
  • Student Cards-People under the age of 21 will now need a co-signer or significant proof of income as evidence that they will be ably to make monthly payments.  In addition, credit card companies can no longer market on or near college campuses.

The Good: We love rules designed to help protect us!

The Not-So-Good: Carefully review your credit card statements.  Credit card companies are likely to increase other fees (balance transfers, annual, cash advance, and inactivity) in order to make up for lost revenue.  It may also become increasingly difficult for young adults to build their credit history.

Reg E Opt-In (Overdraft Protection)

Going into effect August 2010, this Regulation includes provisions to eliminate consumer debit card overdraft fees. The rule applies to ATM debit card transactions as well as debit card store purchases. Financial institutions are now required to obtain permission from customers to opt into their overdraft protection programs. For customers who decline to do so, their purchase/withdrawal will simply be denied.

The Good: No more $35 fees for the $3 cup of coffee that led to an overdraft!

The Not-So-Good: Financial institutions will look for ways to increase revenues due to the $37 billion of fees related to overdraft payments last year they stand to lose.  Some of the “rumors” I have been hearing include doing away with free checking accounts as well as a reduction in rewards programs.

Dodd-Frank Wall Street Reform and Consumer Protection Act (The Reform Bill)

Signed into law by President Obama on July 21, 2010, this law takes aim at the behavior of Wall Street and the Big Banks and it’s contribution to the financial crisis.  The Bill establishes an independent consumer bureau within the Federal Reserve to protect borrowers against abuses in mortgage, credit card and other types of lending.  In addition, it provides the Government with new powers to identify risky banking institutions and have the ability to seize big, failing companies.  Furthermore, banks will now be forced to keep more capital on hand.  The law has also permanently raised the standard maximum deposit insured amount to $250,000 from $100,000.  Depositors now have the comfort of knowing that their money is completely safe as long as they are within the insured limits.

The Good: No more taxpayer bailouts!

The Not-So-Good: The Reform significantly limits the ability of banks to extend credit.  Others argue that this will stifle the economy.

Hopefully this has shed some light on the new rules and how they can impact you.  It is going to be interesting to see how all of this plays out.

If you have any thought or comments we would love to hear from you.

Meredith


Tagged with: • • • • •
Jul 24

White House Weighs In. . .Financial Overhaul Bill Is Finally Here

Banking, Banks, Financial Literacy, Uncategorized, money 1 Comment »

Below is the White House video summarizing the Dodd-Frank Wall Street Reform and Consumer Protection Act. It will take to some time to see how it will translate into reality, but the video is a simplified view of how we got to where we are now. Hey, hindsight is 20-20. . .

“>

The focus is intended to protect consumers so let’s see how it all plays out.

Lisa, Founder & CEO

www.kiboo.com

www.facebook.com/kiboo

Tagged with: • • • • • • • •
Jul 16

Travel Woes…

Expenses, Ideas, Kiboo, New York City, money No Comments »

Staying in a new place is always fun and exciting. My summer in New York City has been amazing! I can’t even imagine myself sitting in my room and twiddling my thumbs out of boredom. There is always something exciting to explore– Broadway shows, plays, museums, restaurants, clubs, cafes, concerts, tourist attractions…. The list is endless.

I want to make the most of the summer and see everything that I possibly can. But there is only one problem: Money.

Yesterday’s expenses made me realize this. They were as follows:

-          Morning cup of coffee: $2

-          Lunch: $10 (this is supposed to be “cheap” in New York, while in Charlottesville it classifies as “expensive”)

-          Starbucks mocha latte – my guilty pleasure: $4

-          Umbrella because there was a thunderstorm outside: $10

-          Cab ride home from dinner because of the thunderstorm: $10

-          Dinner: A whopping $50.

So what were my total expenses for one day?

$86.

Outrageous.

Of course, I don’t usually go to such expensive places for dinner. But according to my friend, it was all right for just the one time, in order to get a flavor of New York.

However, how many such “one time” expenses am I making? Didn’t the Backstreet Boys concert from last week, or the haircut from the weekend before, or the shopping expenses from a few days ago count as part of those “one time” expenses?  How much am I really spending  on the coffee that I classify as “necessary”? And, how much am I spending overall, on the mocha lattes that I excuse  as my only “guilty pleasure”?

Although I am only here for the summer, I am concerned about the transition I will go through when I enter the work environment after leaving college.

I can justify my holiday and my daily expenses all I want, not keep a serious track of them, and ask my parents for more money when my balance is low. Or, I could start to set aside a certain amount of money each month for entertainment, necessities, and transportation.  Then I could keep track of my expenses, identify patterns and see where I need to cut back.

As obvious as that may seem, not everyone is doing it, perhaps due to the lack of the formal tools available.  A Kiboo account will provide these tools, and I can’t wait to have one. I especially look forward to the application that will let me compare my expenses over different weeks.

Becoming more frugal does not mean that I will now have to sit in my room and twiddle my thumbs out of boredom. I can enjoy the dinners, drinks and Broadway shows while simultaneously explore the less expensive, but equally flavorful aspects of the city, such as parks,  street shows, and the many different neighborhoods. It’s all about figuring out the right balance.

Prerna, UVA Class of 2011

Kiboo Amabassador

www.kiboo.com

www.facebook.com/kiboo

Tagged with: • •
Jul 10

It Happened To Me-Hit With A Credit Card Fee

Banking, Banks, Credit Cards, Customer Service, Financial Literacy No Comments »

As hard as I try to stay out of trouble, I sometimes find myself in it.   Hey, I’m human.  To stay out of debt, I pay my bills on time and don’t carry credit card balances.  So I was surprised to find a credit card statement with a July 4th due date sitting on my desk when I got back from vacation on July 5th.  I thought, with the holiday weekend and all, I might catch a break by going into a branch first thing in the morning.  Well, was I wrong. . .

Before I tell my account of events, I want to set the stage: (i) I have been a customer of this bank for over 20 years; (ii) have never asked for anything from “my” bank; (iii) do not carry balances; (iv) always pay on time (except this time); and (v) hold several types of accounts (both personal and business).

At the branch, the clerk informed that a fee hit my account and recommended I call the customer service number on the back of the card because they do not deal with credit card fees at the branch.  10 minutes later: The customer service agent sternly informed me that this is my fault, not a bank error, and therefore the fee will not be reversed.  She continued to explain even though it was a national holiday and the branch was closed, I could have called customer service 24/7 to pay the bill.  Honestly, I truly didn’t think of it at the time.  Ok, I get it, it is my fault, but have a little compassion.  To think “my” bank would have a human emotion like compassion, is asking too much.

It’s funny how people go around saying “my” bank.  Right about now, I am not feeling like it’s “my” anything.  Once I realized, I was not winning this battle, I asked the representative to explain the fee.  She said that the fee is $39 dollars and that interest will be compounded for 30 days starting as the next billing cycle (what?). First, I tried to just pay the fee to stop the interest (there is no balance), but this was not an option.  Second, I asked the representative to explain how much interest will be charged and how it is calculated.  She could not tell me the amount or how it is calculated.  If it’s so complicated that even the bank can’t explain it, we have a problem.

I wouldn’t care that much if it was just the fee that I could pay and move on, but the fact that they are not letting me pay the fee just so they can charge interest on it is totally ridiculous.  Here are a few tips to not fall into the same trap:

  1. Set up an automatic payment from your checking or savings account.
  2. Set up a calendar alert the week before the due date so that you have time to transfer money into the linked account if you need to.
  3. Make sure to review the interest rates and terms and conditions on your credit cards.  Many credit cards will raise your interest rates if you are late on one payment.

Just in case you are wondering, I called customer service to cancel card.  This was the end of the line and the nice Mr. Brown of “loyalty services” (different from “customer service”) looked at my history and acknowledged that I am a good customer and July4th and 5th was a holiday and branches were closed.  He did me a solid by waiving the fees.  I learned my lesson on this one. . .

Lisa, Founder & CEO

www.kiboo.com

www.facebook.com/kiboo

Tagged with: • • • • •
Jul 01

Reduce. Reuse. Recycle.

Banks, Green, Recycle, Social Consciousness, mobile banking, online banking, remote deposit capture No Comments »

Paper or plastic? Or, maybe you bring you own…whatever your “bag” is there is no denying that social consciousness, green efforts, and environmental responsibility are here to stay.  While we all take certain measures…whether you drive a hybrid, conserve energy, recycle, or simply pick up litter there is little doubt that we all need to do our part to take care of Mother Earth.

Just as we as individuals feel our accountability, corporations (thankfully) are moving in this direction as well.  (Check out http://greenrankings.newsweek.com/top500 for more information).  Banks are no exception.  Online and mobile banking offer less paperwork and less mail.  In addition, direct deposit, online billpay, and remote deposit capture (ability to take a picture of your check and deposit it into your account without having to physically deliver the check to the bank) all promote a reduction in the use of paper as well as fuel consumption.  They are not only are more efficient, but have a positive impact on the environment.

While these are just baby-steps in what has to be a global effort, they are noteworthy nonetheless.

If you have any thoughts, ideas, or comments we would love to hear from you.

Meredith

www.kiboo.com

www.facebook.com/kiboo

Tagged with: • • • • • • • •
Jun 28

I Thought I Knew My Bank Account Balance. . .

Banking, Banks, Did you Know, Financial Literacy, Ideas, Uncategorized, money No Comments »

It’s all in the lingo.  It shouldn’t be that hard to know how much money is in your account.  When I check my account online, it says “available balance” and “account balance”.   The wording sounds almost identical and they are usually sitting right next to each other.  Sometimes the numbers are different and sometimes they are the same.  Here’s the issue when you go by your “account balance” and not your “available balance” you run the risk of getting into trouble which could result in fees, bouncing checks and, even worse, having a negative effect on your credit rating.  So here’s the skinny and a few tips:

  1. Always go by your “available balance”.  This is the amount you can use right now.  This number does not reflect deposits that have not cleared. 
  2. “Account balance” is the amount in your account at the beginning of the business day.  It’s the amount printed on your bank statement and to calculate interest payments on interest bearing accounts and to calculate whether you are meeting minimum balance requirements.  This number does not include your spending activity or checks written, but that have not hit your account.
  3. Floating checks can add to the confusion. We have all been there, you write a check, but it doesn’t hit your account for weeks (maybe even months).  Neither your “available balance” nor your “account balance” reflects these floating checks.  You go on your merry way spending and living by your “available balance”, but then one day BAM the check you forget you ever wrote hits and throws everything off.
  4. Tip: Sign up for direct deposit when possible.  The funds hit your account faster.
  5. Tip: Sign up for online bill pay to avoid writing checks.
  6. Tip: If you write checks, keep a register to reflect checks floating so that you know those funds are no longer available.

Lisa, Founder & CEO

www.kiboo.com

Tagged with: • • • • •
Jun 20

How well do you know your plastic?

Banks, CARD Act of 2010, Credit Cards No Comments »

Plastic….I am talking about the kind that comfortably sits in your wallet-whether it is credit, debit, and/or prepaid cards. Given the fact that in 2009 there were nearly 1.5 billion cards in circulation in the U.S., chances are you are quite familiar (maybe even too familiar) with what has become an indispensable part of the American way of life. There is so much that can be said on this topic, but for today’s purpose I will focus on credit cards and the college market.

The new CARD Act went into effect February 2010.  One aspect of the reform prohibits credit card companies from marketing to those under the age of 21.  Credit Card marketers can no longer offer cool “freebies” for filling out a credit card application anywhere on or near college campuses or at college sponsored events.  The ACT has also made it very difficult for those under the age of 21 to receive a credit card without an adult as a co-signer or showing significant proof of income.  The idea is to try to keep young adults from racking up debt they can’t afford.

What the CARD ACT does not speak to is the “special relationships,” or “affinity agreements” that bank-issued credit cards have with Colleges and Universities.  As reported in the Huffington Post, “Universities stand to gain millions of dollars from selling the names and addresses of students and alumni to credit card companies while granting those same companies special access to school events.”  In addition, colleges actually receive a portion of student charges and get bonuses if students carry a balance.  Essentially, the more that student credit card debt rises, the more the school stands to make.

At a time of soaring tuition and all of the costs associated with school, this is yet another way for these institutions to earn money.  But at the who’s expense?  With all of the talk about privacy issues and concerns, these little-known agreements have clearly demonstrated that they are not acting in the best interest of the students.

The decade-old “secret” appears to be out in the open.  I am eager to see what happens from here….

If you have any thoughts, comments, or insights to this post we would love to hear from you.

Meredith

www.kiboo.com

www.facebook.com/kiboo

Tagged with: • • • •
Previous Entries
preload preload preload