Money Smart Week comes to Chicago
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Thursday, April 15, 2010
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Money, like kids, doesn't come with instructions. But knowing how to spend it, save it and borrow it wisely is a crucial life skill. So financial institutions, not-for-profits, schools, libraries and lots of others are joining together to help support financial education during Chicago's ninth annual Money Smart Week, April 17-24.
More than 450 free educational classes, seminars and activities will take place around the state and focus on financial topics for people of all walks of life. For a complete calendar of events, go to moneysmartweek.org/chicago.
And here at ChicagoParent.com, we have financial planning help, kids' activities, and an exclusive Q&A with Jackson Beard, the Walter Payton freshman who was selected as the 2010 Money Smart Kid.
Of course, we also have some goodies to give away. One lucky Chicago Parent reader will win a $50 savings bond and custom-made piggy bank courtesy of the Economic Awareness Council. Want to win? Ask your financial planning questions as a comment below and you'll automatically be entered!
Our picks
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Heather, probably not because if put the money in a 529 the ownership will not change it will still be theirs, if open new a 529 account that you contribute to it will be in your name and may not have the same effect on future financial aid. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Denise, Education is important, but retirement should not be overlooked you should try a balanced approach for funding each and if there is a shortfall for education you may be able to qualify for financial aid , grants, scholarships or education loans that the kids would be responsible for. |
state college programBy Grace on Friday, October 21, 2011 Is it more worthwhile to invest in mutual funds, or use the state savings plan that can be used for state colleges? |
529 Savings PlanBy Heather on Friday, October 21, 2011 I just wonder exactly what a 529 plan is? My kids both have bank accounts that they have money in for college, but the accounts are in their names. Will this make it harder for them to get financial aid in the future? Should I maybe switch this money over to a 529 savings plan? |
"Extra Money"By Denise on Friday, October 21, 2011 Are we better off putting everything we have away for college (we have Bright Starts for our 11 year old and twin 6 year olds), or adding into our Teacher Retirement System accounts? My gut is to put everything into college.... |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Jaime, You can use a 529 plan or Coverdell Savings account to save for college, if you dont think that you can save enough on your own, you may qualify for financial aid or scholarships and if you don't there are student loan programs available. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Amanda, most everyone should have a emergency fund of at least 3 months to one years expenses, depending on if you have one income or two income household and other factors. this money should be pretty liquid, savings account, money market, or similar that you can get funds from without risking loss. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Liz, 529 Plans you can go www.savingforcollege.com to compare plans IL taxpayers get a state tax credit to use either of the two Illinois 529 plans. Icome earned is tax free when used for qualified college expenses and if your child gets a scholarship you can get the money back you just pay tax on the earnings in the plan. |
Saving for CollegeBy Jaime on Friday, October 21, 2011 How does a single parent save funds for their child to go to college? My child may some day be interested in Med School & I don't know how I would make that possible. |
how much should you have in a savings account?By Amanda on Friday, October 21, 2011 Is there a certain percentage of your money that should go in a savings account? |
Mother and p.t. tutorBy Liz Buschmann on Friday, October 21, 2011 What is the best way to save for my young child's college educatiion? |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Fred, In above respose I assumed you would need, $50,000 per year to live on you can adjust up or down |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Fred, there are many factors to consider in deciding how much is enough to save for retirement, life style, current age, risk tolerance, other goals, need for income from investments, employer retirement plans, etc. as you can see it is based on many factors but for most people they will need as much income in retirement as they currently spend plus increases ecah year for inflation. People are living longer now so if you retie at 66 you will need to fund enough for at least 30 years or so to make sure you don't out live you income stream. So someone getting maxium social security would need approximately $700,000 of retirement savings earning 6% with 3% inflatin rate. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Chris, if you have an emergency fund that is available for unforseen expenses usually 3 to 6 months of expenses is reasonabl then it makes sense to pay extra payments on your mortgage unless you could invest and get a better return than than the loan interest rate. Bottom if you feel better paying off your mortgage sooner than that makes it the right decision. |
RetirementBy Fred on Friday, October 21, 2011 What percent of my assets should be used for retirement? How do I know if I am saving enough? Is there any rule of thumb? |
MortgageBy Chris S. on Friday, October 21, 2011 We have extra money each month and I wonder if we should make an extra mortgage payment or keep the cash in savings. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Cathy a "Cash Balance" plan is a pension plan that the employer contributes to and manages the plan, a 401k is a plan the employee contributes part of their salary to and the employer may match a portion of the employees contribution, usually the employee makes the investment choices from a menu of mutual funds available. Some employers may offer both types which is a good thing and you will want to use both to maximize retirement savings. Also you may have to work for a certain period in order to vest in the cash balance pension plan. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Rosie, IBonds, are us.govt bonds that give you inflation protection the following web site give a very good explanation http://www.treas.gov/offices/treasurer/savings-bonds.shtml |
MoneySmartKid 2009 - Response to ChrisBy Jackson Beard on Friday, October 21, 2011 Question: How did you parents teach you the value of a buck? Were your parents savers themselves? Answer: My parents are both huge savers! I learned less from the word "no" and more from the idea that I could use saved money for something I wanted more. They taught me the difference between needs and wants, and I thank them for that. |
MoneySmartKid 2009 - Response to DebbieBy Jackson Beard on Friday, October 21, 2011 Question: When did your parents start to give you an allowance? How much was it and how did you earn it? Answer: I started getting a $5 allowance in 4th grade. For me, getting an allowance was dependent on my grades--I have to do well in school! |
MoneySmartKid 2009 - Response to ElenaBy Jackson Beard on Friday, October 21, 2011 Question: As a kid or teenager, how do you find money to save? How do you open a savings account? Answer: I admire your enthusiasm! If you want to save, find ways to earn money (i.e. babysit, allowance, chores), only buy things that you need (I skip out on the post-school outings that my school is known for), and then store your saved money in a bank account to keep it safe and allow it to grow. Bank accounts are super simple to start: just head to your local bank with your parent/guardian at hand and ask! |
Finance QuestionBy Cathy on Friday, October 21, 2011 Should I invest in 401K at work or the new cash-balance pension plan? What is the difference? |
ibonds?By Rosie on Friday, October 21, 2011 What are ibonds? are they better than other type of bonds? |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 George, the economy is showing signs of improvment everyday it is never a straight line back after an economic downturn especially one as bad as we just had, Emploment will lag for a while as will real estate prices, other area will be back sooner this year and next. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Rossana, Mutual funds spread out your risk by owning many stocks, most mutual funds own very little of any one stock so if one company goes out of business like a Lehman Brothers, you only loose on the one and the other investments in the fund are okey. Look at index funds as they are low cost and typically out proform about 70 to 80% of the funds trying to follow that index. |
Finance QuestionBy George on Friday, October 21, 2011 Do you see any light at the end of this economic nightmare and if so, when? |
Kids Earning MoneyBy Dean (age 3) on Friday, October 21, 2011 How can kids earn money? Do you have any suggestions? |
Start of MoneyBy Jenna (age 8) on Friday, October 21, 2011 How did people first begin using money? |
Finance QuestionBy Rossana on Friday, October 21, 2011 How do you feel about mutual funds? Are they a better investment than stocks? |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Lyn, it is not likly newspaper stocks will go back to what they were in the past plus you have all your eggs in one basket, I would sell and invest in a 529 plan for college costs. You may be able to deduct your loss on this years tax return. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Wendy, I don't like custodial accounts they are taxable accounts and because the child gets control at 18 or 21 and they can use the money as they choose. A 529 plan you stay in control no tax if used for college expenses, Plus illinos and some other states give tax breaks when you invest. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Priscilla, The best would be buying a no load index fund like Vanguard Total Stock Market Index. You will have to see if the $3000 minimum .investment is do-able additions are at a much lower level $100. Other index funds (no Load) may have lower minimums. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Phil,, You have the $64,000 Question, It depends on your lifestyle and the age you would like to retire, What savings you have and the risk level you would be comfortable with. For most people they will spend the same in retirement as they would while working only the types of expenses will change i.e. more for healtcare and travel, less for clothing and transportation. You also need to take inflation into account as your expense will probably increase at 3 to 4 % a year during retirement.. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Kristen, You can set up a 529 plan for your oldest and if you contribute and then use the money to pay for college expenses you save three percent up to $300. max per/year per parent, you can also look into qualifying for aide depending on your income and the schools that you choose, other alternative include loans some qualify for deferred payments and reasonable interest rates. Additionally you may qualify for tax credits that save you taxes and then can be used for college education expenses. A 529 would also be good for your second child. |
StocksBy Lyn on Friday, October 21, 2011 I own what was thousands of dollars worth of stock in a newspaper company. We all know what happened to that industry. Now the stocks are worth almost nothing. How do you know the right time to cut your losses and take what you get or to hold on in hopes that things turn around? We intended it as a savings plan for college. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Jessica P, Gail Marks Jarvis and Terry Savage both have good books on financial planning that you should find helpful. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Jamie, If you have $5000 or more with your old employer and you think the investment choices are good you can leave it there, otherwise you can roll it over to an IRA account at a discount broker and buy any thing you feel is appropriate for your retirement funds,. Index funds are a low cost choice to start with. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Sandy, A saving account is one way to teach kids about saving also buying a share of stock in Mc Donalds, Disney or other company that would be meaningful to your child is a way to get them interested in saving and investing. Some companies allow for direct investment with out opening a bokerage accout. |
Money QuestionsBy Wendy on Friday, October 21, 2011 Is it ever a good idea to set up a custodial savings account in your childs name to save for college? |
Financial Planning QuestionsBy Kristen on Friday, October 21, 2011 I have a son starting college in the fall and one going into high school. What is the best way to pay for college and still save for the next son to go to college? |
Money and kidsBy Priscilla Hogrewe on Friday, October 21, 2011 What is the best savings plan or account for a child? |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Marisa, You can use credit cards but try to pay off your charges each month, you will show that you are a good credit risk and you will not pay high interest rates. |
Financial QuestionBy Phil on Friday, October 21, 2011 How much should you save for retirement? |
booksBy Jessica P on Friday, October 21, 2011 What is a good basic book for someone that knows nothing about financial planning? |
Financial Planning Question- 401KBy Jamie McBain on Friday, October 21, 2011 I worked for a company for 5 years and had a 401K plan while I worked there...I've worked for a different company for over a year now and still have never done anything with it. (My new job doesn't offer one and my old job didn't match, they only set it up and facilitated my contributions.) What should I do with it now? And do I need to contact someone at my old job in order to move it, etc.? |
Financial QuestionBy Sandy on Friday, October 21, 2011 Is starting a savings account for a young child a good way to teach them how to save money? |
Money QuestionBy Marisa on Friday, October 21, 2011 I am really trying not to put anything on credit cards and pay everything with cash. I heard that is not wise as you cannot develop a good credit rating if you don't use credit? What should I do? |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Cheryl, good question If you are working and can contribute to your employers 401K plan and you get a match you may want to contribute you save taxes and you get free money from your employer plus a return on the investment you choose, you should also try to get you debt paid off especially if it is credit card or other high interest rate debt (pay off highest interest rate debt first), Then you can put the extra into savings. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Laura, all three are 529 type plans, in College Illinois you are buying college semesters at todays prices and it is great if your children go to one of the illinois Universities/Colleges the most benefit is gained if they choose not to go to an Illinois Public School the return on your investment may not be as good. All states have one or more 529 plans and anyone can invest in any states plan, BrightStart is one of the Illinois plans and you choose the investment allocation option i.e. 100% Stock, 100% Bonds or Age Based you can only change once a year. You can compare different states plans by going to www.savingforcollege.com plus get more info on 529 plans in general. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Wendy, Paying off your mortgage sooner should not hurt your credit rating in any way. If you don't pay it off sooner you may benefit economically depending on how you invest the extra money and how fast your home appreciates over time. Paying it off sooner may bring you peace of mind that you don't have any mortgage payments and you own your home free and clear. So as I see it there is no wrong answer the choice is yours. |
Financial Planning QuestionsBy Cheryl on Friday, October 21, 2011 Is it better to save a little each and have a little debt or pay off all your debt and then start saving? |
MoneySmartKid 2009 - Response to SamanthaBy Jackson Beard on Friday, October 21, 2011 Question: With the recession and loss of a job, it seems impossible to save even a few dollars from the unemployment checks after paying all the bills. I'ven had to cut the kids' allowances. What do you suggest to help us plan for the future? Answer: Hey there! I’m sorry to hear about your situation, here are some of my suggestions: Run washing machines and dishwashers overnight when energy rates are lower Use programmable thermostats to reduce heating and cooling costs Switch from paper to cloth napkins. Walk more places to save gas money (the weather is getting nicer!) Turn off appliances that are not in use. Do your best to negotiate prices when it comes to phone and television bills. But it’s possible that you will need more help than my simple tips. In that case, consider investing in professional consulting (just be sure to do your research first!) With regards to planning, decide on a budget and stick with it. Evaluate your costs. Think about potential job opportunities and the education/experience you might need. Consider explaining why you've cut your kids allowance. Good luck! |
MoneySmartKid 2009 - Response to SamanthaBy Jackson Beard on Friday, October 21, 2011 Question: With the recession and loss of a job, it seems impossible to save even a few dollars from the unemployment checks after paying all the bills. I'ven had to cut the kids' allowances. What do you suggest to help us plan for the future? Answer: Hey there! I’m sorry to hear about your situation, here are some of my suggestions: Run washing machines and dishwashers overnight when energy rates are lower. Use programmable thermostats to reduce heating and cooling costs. Switch from paper to cloth napkins. Walk more places to save gas money (the weather is getting nicer!) Turn off appliances that are not in use. Do your best to negotiate prices when it comes to phone and television bills. But it’s possible that you will need more help than my simple tips. In that case, consider investing in professional consulting (just be more sure to do your research first!) With regards to planning, decide on a budget and stick with it. Evaluate your costs. Think about potential job opportunities and the education/experience you might need. Consider explaining why you've cut your kids allowance. Good luck! |
MoneySmartKid 2009 - Response to TracyBy Jackson Beard on Friday, October 21, 2011 Question: How did you become the Money Smart Kid? What suggestions do you have for other kids who are interested in learning more about money? Answer: Well, the Federal Reserve Bank of Chicago sponsors an annual essay competition (the topic changes every year) for students between 5th and 8th grade, and the best essays are called in for an interview in front of a “panel.” At the interview, finalists are pretty much thrown dozens of questions relating to finance, and we try our best to answer them. After considering our answers and how well we acted under pressure, “the panel” chooses a Money Smart Kid! In a way, it’s like a kick-off to Money Smart Week. Check out moneysmartweek.org/chicago next winter for the new topic! I think any kids who want to learn more about money should start at home―I was surprised to hear everything my parents had to tell me about finances. The next step for me was to start researching terms and learning more about the financial system (the internet is my best friend!) |
529 Plans vs. Bright Start vs. College IllinoisBy Laura on Friday, October 21, 2011 I have a 5th grader, 3rd grader and kindergartener, all in Catholic schools. We don't have a lot of money to put into college savings, but wonder which of these three savings plans you recommend? |
Money Smart?By Wendy Crowe on Friday, October 21, 2011 We have been told that it's a really good idea to make 13 mortgage payments a year in order to pay off the mortgage quicker. But others have said that paying off a mortgage quicker is a bad thing. Somehow it messes with your credit. I don't understand how that is possible. Paying off your mortgage faster is bad?? What is your opinion? |
Value of a buckBy Chris on Friday, October 21, 2011 How did you parents teach you the value of a buck? Were your parents savers themselves? |
AllowanceBy Debbie on Friday, October 21, 2011 When did your parents start to give you an allowance? How much was it and how did you earn it? |
I want to save - now what!By Elena on Friday, October 21, 2011 As a kid or teenager, how do you find money to save? How do you open a savings account? |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Heidi, you should look at 529 plans as any return on your investment is tax free if used to pay college expenses. There is a web site that compares all of the state plans www.savingforcollege.com. Also Illinois residents get a credit on state tax return of up to $600 if each parent contributes $10,000..per/year |
Saving for CollegeBy Heidi Danos on Friday, October 21, 2011 What is the best strategy for beginning to save for a child's college fund? Where is the best place to put this savings to make sure we are getting the best return on our money? http://morajunction.com |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Samantha, The best thing any one can do in difficult times such as you are dealing with, is to keep a positive outlook to the future, things will get better and you will be able to make up your savings in the future, you are doing the best you can and you will be rewarded in the future. |
Money Smart Week VolunteerBy Sid Blum on Friday, October 21, 2011 Mary your question as to the difference between a Roth and a Simple IRA., a Roth IRA is similar to the traditional IRA except no deduction for contributions and no income tax on distributions if you leave the money in for 5 years and you are over 59 and 1/2 when you take the distribution also no miniumn distribution are required. A Simple IRA is an employer retirement plan for small businesses where the employee and the employer both contribute very much like a 401K plan. and contributions are pre tax , distributions are taxable. |
Money Smart?By Samantha Saezerg on Friday, October 21, 2011 With the recession and loss of a job, it seems impossible to save even a few dollars from the unemployment checks after paying all the bills. I'ven had to cut the kids' allowances. What do you suggest to help us plan for the future? |
Ms.By Mary Clemente on Friday, October 21, 2011 What is the difference between a roth ira and a simple ira? |
Money Smart KidBy Tracy Frizzell on Friday, October 21, 2011 How did you become the Money Smart Kid? What suggestions do you have for other kids who are interested in learning more about money? |
Money Smart Week Volunteer
By Sid Blum on Friday, October 21, 2011
Grace It depends on which school the kids actually go to if the qualify for the Illinois state school that want to go to you may be better off on the other hand if they go out of state to school it may not be as good as 529 plans.