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Important Dates:

February 24, 2017 by 5 pm – Deadline for essay submissions to be received

March 31, 2017 –  Finalists notified, make arrangements for recognition ceremony

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In support of Money Smart Week taking place April 22-29, 2017, Money Smart Week— St. Louis Metro, an effort of the Greater St. Louis Financial Education Collaborative, will be sponsoring the Money Smart Kid Essay Contest. Students in grades 6–8 are encouraged to answer this year’s question with an essay of 300 words or less. Three finalists will be recognized at the Money Smart Kick-Off Event. One student will be named the 2017 Money Smart Kid, winning a $2,000 scholarship from COUNTRY Financial, a second student will be awarded a $1,000 scholarship from the Metropolitan St. Louis CRA Association, and a third will be awarded a $500 scholarship from Vantage Credit Union.

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2017 Money Smart Kid Essay Contest Question:

Do you think there is a connection between financial health and physical health? Please explain your answer. And what can a city, state or national policymaker do to help promote financially healthier citizens?

What Parents NEED to Know

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You already know why you should have ongoing discussions about money with your children.

  • It teaches them to be responsible with spending and saving.
  • They can learn from your mistakes and your accomplishments.
  • It sets them on the path for financial success.

On the flip side, your child doesn’t need to know everything you’re thinking, when it comes to money. Giving all your knowledge, facts, feelings and information about money to them all at once, or too early, can be overwhelming for children. In order for children not to worry, or the opposite – to feel as there is an endless supply of money, it is better to talk about finances in general terms.

  • Teach the differences between needs and wants.
  • Discuss debt in general and ways to avoid it or manage it.
  • Talk about the importance of saving money, even if you don’t have much.

Start teaching toddlers the difference between needs and wants as soon as they understand that they need food and a bed to sleep in. Needs and wants change as a child grows, keep those conversations going. Give children guided choices in spending allowances, birthday money, etc. Some children are successful with dividing their money among a few goals; saving (e.g. a new game system), spending (e.g. snacks, small toys), sharing (e.g. donations, gifts), and investing (e.g. college).

When a younger child asks how much money your family has, you may reply with, “I make enough money so that we can afford to pay all of our bills, pay for the car, and pay for…” this provides your child enough information to know you are able to take care of him–and you won’t have to worry about him spilling your financial business to his classmates.

When your child starts asking why others have things that your family doesn’t, you don’t have to make excuses, or get offended. “What parents should say is, ‘every family has its own way of doing things,’” Keeping the conversation about your own household helps your child focus more on what your family is doing and what your values are, and less on what is going on in their friends’ homes.

Involve your children in some saving aspects of the family finances. A family vacation is a perfect example of involving the entire family. How much does it cost to go camping nearby, to visit family in another state, to make a trip to Disney World? Set a date one to two years away, make plans, and start saving together.

As your child becomes older, you may choose to discuss you family finances in more depth. Remember to concentrate on solutions to money problems (e.g. cutting credit cards, using lists when shopping) and the choices made for accomplishments (e.g. Christmas savings account, budgeting).

For more Money Smart information for yourself or your children, check out the many free workshops offered all over the St. Louis region during Money Smart Week.

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By Angie Henderson, AFC

Did you know that there’s a new financial guidance resource for St. Louis’ veteran population? The Consumer Financial Protection Bureau (CFPB) has launched a new, nationwide initiative to assist our nation’s veterans in the area of personal finance and the best part is – it’s FREE!

There are roughly 250,000 service members who leave active duty every year. Veterans face unique financial challenges compared to their peers without military experience. They often deal with major career changes when they leave the military, which can affect their income. They also grapple with moving often, which can make it difficult for spouses to earn money, further challenging the household budget. So it is easy to see how personal finances often top the list of concerns of newly separated veterans. To help with those struggles, the CFPB recently launched a Financial Coaching Program to help veterans take control of their finances.

The goal,” says Holly Petraeus, CFPB’s Assistant Director and head of the Office of Service Member Affairs, is to assist military personnel and their families in getting the financial education they need to make better consumer decisions. “The idea is to help them proactively take control of their finances at crucial moments and end up becoming financially stable and achieving the financial goals they’ve set forth,” she says.

So what is financial coaching? Financial coaching is a tool that empowers the client to take charge of their personal finances. Through a series of one-on-one meetings, a client can expect to receive support and guidance to pinpoint their financial goals, identify barriers that may be keeping them from attaining their goals, recognize what they can do to achieve them and come up with a plan of action to help them accomplish their objectives. Financial coaches can help access financial education, find resources and seek the right financial interactive tools that will work best for the client to make well thought out and confident decisions while working toward their financial goals.

The coaching services are provided free of charge, funded by CFPB’s Civil Penalty Fund. “(The coaches) give one-on-one advice and encouragement, driven by the client,” Petraeus says. “When we can set up our veterans for success, it benefits all of us,” she adds.

Interested? Contact your St. Louis metropolitan area coach today to set up a confidential one-on-one appointment at (314) 201-0308 or ahenderson@afsc.com.

Estate Planning Without an “Estate”

Web photo 2014When the words “estate planning” come to mind, many people think of billionaires such as Bill Gates or Mitt Romney. These wealthy Americans certainly do have an estate and a very complex estate plan. However, anyone with a few dollars in the bank or a life insurance policy technically have an estate. Your estate is anything you’ve accumulated over your lifetime. Therefore, it’s important to have an estate plan even if you don’t feel like you have an “estate.” Below are a few tips to consider, including some information that may surprise you:

  • Basic Will – We all know that a will is used to give our property to certain people or charities upon death. However, did you know that wills also provide for guardianship provisions for children? If you have children who are not considered adults in your state of residence and you don’t have a will, you may be putting your family at large risk in the event of a tragedy. For example, let’s assume two parents are married and have one child. If both parents passed away in a car accident and did not have a will with guardianship provisions, the children may have guardians appointed by the state. These guardians may be family, but it may not be the family member(s) you envisioned raising your children. Having a will is very important for children and even adults who need special care.
  • Revocable Living Trust – This estate planning tool is a bit more complex than a will, but can offer many more benefits. Please remember, a trust isn’t just for the wealthy. If you have a car, a house, some investments and a bank account, along with children under your care, a trust may be for you. First, if used properly, a trust has the potential to avoid probate court in the event of death. Avoiding probate may mean saving probate court expenses, saving months of time dealing with the probate court system and keeping your estate private versus going through the public court system. Second, a trust has the ability to dictate how assets are distributed among family, friends and charities. For example, you may want to give money to a grandchild, but only if they use if for college. If not used for college, you may want them to wait until age 35 to receive any monetary gifts. With a trust, this type of unique request can be made. There are also many other potential benefits to a trust that are unique to each person and family. What’s the downside? It’s going to cost a little more to create than a basic will.
  • Payable on Death Agreement – This handy tool is common with banks, but not every state allows such an agreement to be used. In the states of Missouri and Illinois for example, they are allowed. Adding a “POD” agreement to a checking or savings account allows those assets to pass to the named beneficiary upon death without probate court intervention. The best part about POD is that it’s generally free to do at your local bank. Please keep in mind, special rules apply when appointing minor children, incapacitated adults or other unique beneficiaries on a POD form.
  • Transfer on Death Agreement – Like the POD mentioned above, the TOD has the ability to keep assets such as vehicles or non-IRA investments out of probate. As an example, in the state of Missouri, you can add a TOD beneficiary to the title of a vehicle. In the event of death, the vehicle may then be able to pass to the TOD beneficiary even if a loan exists on the vehicle. Each state varies greatly on TOD rules, so be sure to check with a legal professional for any questions.

Hopefully this list of popular estate planning documents has been helpful. Please be sure to speak with a qualified estate attorney before making any changes to your estate plan. This can be a very complicated topic, so professional guidance is important.

By Vena Stevens, Gateway EITC Community Coalition

Date:   January 9, 2015

Tax season is quickly approaching.  Knowing a few simple facts about tax preparation and filing will help you avoid mistakes and may even save you money.

There are several options for preparing and filing your federal income tax return. You can prepare and file your own tax return.  This is a good option for someone who has a simple return. Those making less than $60,000 for the 2014 tax year can even do this for free online through www.MyFreeTaxes.org and the IRS Free File website.

The majority of Americans will have their returns done for them.  There are some things that are important to know before deciding on a tax preparer. There is currently no U.S. regulation or minimum educational requirement for tax preparers. Only four states have regulations; Missouri is not one of them. According to the IRS, about 60% of tax preparers operate without any oversight or educational requirements.

Options for having your taxes prepared:

  • Certified Public Accountants (CPAs) – Make sure they specialize in individual income tax returns.
  • Enrolled agents (EAs) – EAs are federally licensed tax preparers.
  • Tax preparation chains – Preparers found in tax preparation chains are not CPAs or EAs and are not required to have professional training or pass any tests. They are likely to have varying degrees of training and experience.
  • Individual storefront tax preparers – These are not usually CPAs or EAs and often have no tax law training at all.
  • Free tax preparation – This program is available to households making $53,000 or less, persons with a disability, and the elderly. All preparers are certified by the IRS. Call United Way at 211 for site locations and hours.

Tips for Choosing a Tax Preparer:

DON’T

  • Use a preparer who bases their fee on a percentage of your refund
  • Use a preparer who claims that they can get larger refunds than other preparers
  • Use a preparer who claims they can get you your refund faster
  • Use a preparer who offers to give you a portion of your refund when you leave their office
  • Use a preparer who operates another business such as, car dealerships, furniture stores,  or those who provide other financial products such as prepaid cards and check cashing

DO

  • Ask about preparers experience and credentials
  • Get a recommendation from a friend or family member
  • Make sure you can contact preparer after tax season, should there be a problem
  • Get a written price quote before agreeing to use the service – If they refuse, go somewhere else

Other Dos and Don’ts:

  • Do keep all relevant financial documents in an accordion or similar file to bring with you
  • Do check your return before you sign it
  • Do ask preparer to explain anything you don’t understand
  • Do get a copy of your return and a breakdown of fees before the return is filed
  • Don’t allow a preparer to deposit a refund into his or her account
  • Don’t sign a blank return

 

thomas

By Thomas Nitzche, CFEd, ClearPoint Credit Counseling Solutions

Date: March 20, 2014

Winter doesn’t want to leave, but many of you may be ready to start your spring cleaning.  While images of mops, broomsticks, and vacuums traditionally come to mind, cleaning up your credit is an important part of maintaining your household. Start off your spring credit cleaning by getting a copy of your credit report through a reputable site that offers free credit reports like www.annualcreditreport.com.

Your credit report is an extremely important factor in becoming financially secure. There are many reasons why every consumer should pull their credit report yearly. The main reason is that you need to know exactly what is being recorded on your credit report by your creditors, and you need to make sure that information is reported correctly.

Credit reports can affect your ability to get a job, purchase a new car or home, and can also influence how much interest you will pay on your credit cards and other debts.

Many companies now pull credit reports for job applicants.  They may require your score to be above a certain number or that you are current on all of your debt obligations. You need to make sure your credit report is positive when applying for new career opportunities.

Potential lenders for new car or home loans will pull your credit report. It is part of their due diligence, and in most cases is required. All lenders have specific guidelines for who will and will not qualify for a loan. The cost of the loan will also be determined by your credit report and credit score.

When applying for new credit cards, the prospective creditor will pull your credit report. The credit line you receive and the interest rate you will pay is determined by your credit report and credit score. In most cases, lenders/creditors also take into consideration your income and assets.

Often, inaccuracies are reported to the credit bureaus and these can have significant effects on your credit rating. It is essential that you review your reports from the three major credit bureaus at least once per year to maintain good credit. You don’t want an error to be holding down your credit score and negatively affecting the way you are viewed by creditors.

Once you have your credit report in hand, the true cleaning can begin. First, review everything to be sure there aren’t any accounts you were unaware of. Then check to see if there are any negative factors being reported that you believe may be inaccurate. Should you find any information that you believe is incorrect, make sure to file a dispute in the dispute area of your credit report (disputes are generally resolved within 30-45 days).  Next, take a look over the accounts you have and make a plan to improve your score through taking care of old debts, making timely consistent payments, catching up on any past due amounts, reducing balances owed, and maintaining lower balances on your accounts over time.

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