FirstJobs.org

If you’ve read a newspaper in the past 3 years, you may have been alarmed at reports of a volatile stock market, high unemployment, and retirement plans in jeopardy. Ever wonder if there’s anything you can do to protect yourself during troubling financial times? There is. And the more you can do to protect yourself from the economic factors outside your control, the better off you’ll be — not only now, but also when the Great Recession is officially behind us.

1. Finish your college degree. What do most people who have survived the recession financially intact have in common? A college degree. According to the Bureau of Labor Statistics, the unemployment rate for people without them (10.7%) is more than double that for those with a bachelor’s or better (4.4%). If you haven’t completed your undergraduate coursework, get it finished now to improve your employment prospects.
2. Cut your living expenses. The more you can do to reduce your monthly living expenses, the better. That might mean carpooling to save on commuter costs, trading in your vehicle for an older model to cut down on your car payments, or even moving to a cheaper apartment. Sounds painful, but once you make a few cuts on your monthly expenditures, the savings add up fast. Just be sure to put it into an emergency fund in an interest-bearing account.
3. Stay employed while job hunting. This one isn’t entirely under your control, but if you’ve contemplated quitting your job — don’t. More hiring managers are enacting “unemployed need not apply” policies. It’s not illegal, even if it doesn’t seem fair. Bottom line: Having a job while job hunting makes you seem more desirable in a competitive applicant pool, so don’t give up on yours, even if you can’t wait to leave.
4. Pay off debt ASAP. If you have any debt with unfixed interest rates — like student loans, credit cards, or a mortgage — refinance to secure the best terms you can. Then pay that debt down as quickly as you can. If interest rates rise, you’ll save a bundle in the long term and you’ll feel the freedom of being debt free.
5. Network when times are good. Having a group of people concerned about your wellbeing means you’ve got a list of people to call if you’re ever out of a job. To take one personal example: A friend of mine was laid off at the beginning of this year. She got home that night and starting calling people she knew in her industry — and one of those calls quickly led to a job offer. You never know until you ask.

The news can seem bleak, but the economy has weathered worse dips before. At the end of the day, economic indicators simply reveal trends by individual consumers. Make the right choices to protect yourself and your family and sooner or later, the economy will recover. It always has.

Sulekha.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

There are a million articles on how to save more money, but how many of them contain advice you can actually use? We distilled the best advice we’ve ever gotten into five simple and universal truths.

1. The best way to save money is not to spend it. Even if you’re getting something on sale or at a great price, you’re still spending money. So when shopping for anything — from groceries to a house — make sure you really need it before you pull the trigger.
2. Learn how to comparison shop. For airfare and hotels, check multiple airlines at once using aggregate data from sites like Kayak.com. Check what interest rates different banks are charging on mortgages and credit cards on Bankrate.com. And before filling up your tank, find the cheapest gas in your zip code on GasBuddy.com.
3. Knock out impulse purchases. If “I just want to treat myself” is in your vernacular, add up how much a $5 nail polish, $10 iTunes album download, or $4 magazine costs you on a monthly basis. That may be enough to make you speak a different language soon.
4. Know when to buy used. Certain things — like mattresses and medicine — should always be purchased new. (Just whispering the words “bed bugs” in New York will cause many people to run screaming from you.) But there are plenty of normally pricey items — from jewelry to musical instruments to home decor — that can save you a bundle on great-quality stuff when bought used. Know what they are and get friendly with Craigslist and Kijiji.
5. Ignore the Joneses. Keeping up appearances when you can’t afford to puts you on the fast track to debt and financial insolvency. That may mean limiting your contact with people who live a faster lifestyle than you do, but a friendship with a competitive undercurrent is not a friendship you will miss.

TheFreshXpress.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

There’s a difference between dating cheap and being cheap — we’re not endorsing the latter, but there are many ways to show your crush a creatively good time without emptying your wallet. Here are a few of our tried-and-true methods for romance on a dime.

1. Go bowling. Few things take the awkwardness out of a first date faster than goofy shoes, victory dances, and sharing a plate of nachos. Expect to pay under $20 for at least an hour of fun (or check if your local alley offers all-you-can-bowl nights.)
2. Pack a picnic. Fall is the perfect time to pack up a picnic lunch and hit the trails or park to gaze at foliage. Homemade tomato/basil/mozzarella sandwiches, a couple of seasonal apples, and a bottle of wine will run well under $20 for a gourmet lunch.
3. Appreciate fine art for free. Many nonprofit institutions offer free admittance to museums, film festivals, and concert series. Browse FestivalNet for local listings of music and film festivals and fine-art fairs.
4. Get outside. Channel nervous energy into an adrenaline rush by partnering up for rock climbing, hiking, biking, or kayaking. If you’re less sporty, nature walks and zoos will provide you plenty of conversation starters without making you break a sweat.
5. Show off your cooking skills. We don’t recommend it for a first date, but serving up dinner at home is a surefire way to cozy up with a date. Hopeless in the kitchen? Epicurious.com offers free access to the recipe databases from the Bon Appetit and Gourmet magazine archives.

PawprintsCrossStitch.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

First, we should start by mentioning that yes, you can buy a house with less than 20 percent down. The question is, Is it financially wise? There are some substantial benefits to a large down payment, so be informed and proceed knowing the following facts.

1. You will avoid private mortgage insurance (PMI). If you buy a house with a down payment under 20 percent, you will pay PMI until the loan-to-value ratio hits 80 percent. According to the Mortgage Bankers Association of America, that fee is typically .5 percent of the loan per year (so $1,500 per year on a $300,000 loan).
2. You can get better interest rates. According to Bankrate.com as of today, if you wanted to get a 30-year mortgage for $300,000 in the D.C. metropolitan area, the best interest rate is 4.125 percent with 20 percent down. But if you put only 5 percent down, that rate goes up to 4.25 percent. It doesn’t sound like much of a difference, but over 30 years, it amounts to an extra $7,873 in interest you will need to pony up to the bank.
3. Your offer will be more attractive. In the event of a bidding war — particularly over a short sale or foreclosure, where the bank gets to choose the bidder — having a “clean” offer is a huge benefit. Being able to provide a large down payment in cash could mean the difference between getting your dream home and continuing your search.
4. You start off with more equity. Think about it this way: With 20 percent down, you already have a decent amount of equity in your house. If you put only 5 percent down, any downward fluctuation in the real-estate market could put you underwater so that you owe more than the house is worth.
5. You demonstrate good financial discipline. Homeownership is not typically less expensive than renting, and expenses will always pop up. Having the discipline to save up 20 percent of a home’s value shows that you know how to save and can handle budgeting for the unexpected.

ScholarshipExperts.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

At the beginning of the summer, we brought you our tips on finding your first apartment. Now it’s time to make your space your own. Read on for our advice for doing so on the cheap.

1. Buy secondhand furniture. Ikea may be cheap, but it isn’t necessarily the least expensive way to furnish your apartment. Stalk Craigslist and Kijiji for deals on used furniture in your area and you can score excellent deals on high-quality pieces (just don’t forget to negotiate — sellers expect it!). One caveat: A lot of cities are experiencing a bedbug epidemic, so it may be best to steer clear of upholstered furniture and used mattresses unless you can be certain they’re pest-free.
2. Vet your roommate(s) carefully. When you sign a lease with other people, you’re tying your home life to them. So first make sure you’re all on the same page about the financial rules and who is responsible for paying each bill on time. Nagging a previously good friend for his share of the rent every month or begrudging her for eating your cereal is a surefire way to erode friendly feelings fast.
3. Use a good credit score to negotiate on utility deposits. Got a great FICO score? That could be your ticket to getting utility companies to reduce or waive deposits on starting service. At the very least, it doesn’t hurt to ask. If your credit score could use some rehab, here’s how to go about it.
4. Read the fine print on interest-free loans. It’s par for the course for appliance stores to offer zero-percent interest on purchases for a set period of time. But miss a payment and the interest rate becomes exorbitant. Before you splurge on an awesome media center or laundry set, know what you’re putting your signature to.
5. Don’t always buy in bulk. Going to a big-box store to stock your pantry is always a good idea, right? Not necessarily. Everything you buy and don’t use for a long time is money that’s sitting in your pantry instead of earning interest in a bank account, so bulk-buy wisely. (For more tips on saving money on groceries, click here.)

MarthaStewart.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

After paying for housing and utilities, the grocery bill is often the largest single line item in a household budget. So if you haven’t already tried these tips to shave dollars off the cost of feeding yourself and your family, they’re worth a shot.

1. Organic foods aren’t proven to be healthier. If you are on the organic bandwagon because of environmental reasons, that’s fine, but there’s no compelling health argument to justify paying more for organic. The Mayo Clinic says there’s no nutritional difference between organic and conventionally grown produce, so don’t feel bad about not paying the premium.
2. Don’t let a sale price entice you to buy something you don’t need. Remember: The easiest way to save money is not to spend it. Saving 20¢ on pudding still means spending two dollars that you weren’t planning to part with, so ask yourself first whether you really need it.
3. Plan your meals before you hit the supermarket. We’ve all been guilty of buying a nice piece of fish or a bunch of kale with the best of intentions, only to find days later it’s wilted and starting to smell up the fridge. Knowing what you plan to cook and when can go a long way to saving you from throwing away spoiled food.
4. Skip convenience foods. Pre-washed, cut, and bagged broccoli can be double the cost of a head of the cruciferous veggie. You’ll also pay extra for salad kits instead of lettuce and dressing, baby carrots over bunches, and pre-formed hamburger patties rather than a package of ground beef. Take the extra time to prep your food and your savings in the checkout line will add up.
5. The freezer is a budgeter’s favorite appliance. Buying the value pack of chicken breasts and the giant bag of peas is always smart because frozen meat and vegetables can keep up to six months in the freezer. Learn to read the cost-per-ounce section of every label to stretch your grocery dollar as far as possible.

RetireSensibly.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

CDs, money markets, and Roths — oh my. The world of saving for the future is an alphabet soup, but we’ve put together this handy glossary for helping you figure out where you should stash your cash for a rainy day.

1. Savings and checking accounts. A savings account is probably the very first account you ever opened — perhaps back when going to the bank meant a free lollipop. These linked accounts are the simplest way to put away money and have access to it when you need it. Just make sure you’re not accidentally draining it by paying overdraft or ATM fees.
2. Online money market account (MMA). If you would like to make better interest on your money than what your savings account is offering, consider an online money market account. Online banks can pay a higher interest rate on savings because of a lack of overhead (you can check yields here). However, transferring money to your checking account can take 3 days and you may be limited to a certain number of debits per month, so it’s not the best place for a true emergency fund that could save your hide in a crisis.
3. Certificate of deposit (CD). A CD is a perfect option if you have cash you won’t need for a few years (like for a down payment) and want it to grow with very little risk. Bankrate reports that 3-year CDs are currently paying between 1.5 and 1.9 percent in interest, many with no minimum deposit. However, if you withdraw that money before the CD matures, you’ll pay a penalty that will cancel out whatever you’ve earned in interest.
4. 401(k) and 403(b) plans. These common retirement account is available through many employers: 401(k)s through companies and 403(b)s through nonprofit groups. If you get a company match or are looking to pay less in taxes, it is your best bet for saving for your golden years. You can deduct any money that you contribute to it and pay taxes when you withdraw it in retirement. Also, a company match is free money that your workplace is trying to put in your pocket, so take them up on that benefit!
5. Traditional and Roth individual retirement accounts (IRAs). A traditional IRA is similar to a 401(k) in that you can contribute pre-tax dollars to it (up to $5,000 per year). But you can open it yourself at a bank of your choosing in any year in which you earn income. If you are not offered a company match or you think there’s a chance taxes on retirees will be higher in the future than they are now, the Roth IRA is a better bet. You fund it with post-tax earnings so you do not get the tax savings now, but the money can grow and you won’t have to pay taxes on it again in the future. And remember: They earlier you start contributing, the more your money can grow.

Still undecided about how best to save? Check out our features on retirement savings and starting an emergency fund.

RuggedElegantLiving.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

You probably already know that buying a new car is a fast way to burn through your savings. But if you’re nervous about getting stung on a used car, fear not. Here are a few handy ways not to be taken for a ride on previously owned wheels.

1. Know what the car you want is worth before you shop. Use Kelley Blue Book’s free online database for an estimate of what the car is worth, based on model year, condition, and options. Note that the price for a car in a private-party sale should be lower than the same car sold from a dealership (see below).
2. Browse private-party sales on Craigslist and other local websites for good deals. Dealers mark up the value of used cars so they can earn a profit by selling it. Private owners have no similar incentive, and can tell you more details about the car’s history and why he or she is selling it. If it seems like a good reason, that’s easier to trust than a used car salesman’s spiel.
3. Demand service records to show that the car has been well-maintained. Complete records will contain not just oil changes but mileage-based service, invoices on brake jobs/wheel alignments, body work, and so forth. Be suspicious of an older car (say, more than 5 years) that appears to have never had any work beyond oil changes done.
4. Make friends with a good mechanic. Take it to a mechanic you can trust if a potential purchase hasn’t been serviced recently (within the past month or two). Or ask him if he knows anyone selling a car you may be interested in. And be sure to check Carfax.com to find out if your desired vehicle has ever been involved in or damaged in an accident.
5. Trust your gut. Never be afraid to walk away if anything seems fishy.

Lowes.com

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

Maybe you’ve just graduated and need to find a new place to live, or perhaps it’s time to say adios to your roommates and get a place of your own. Moving can be one of the most stressful experiences in life, but if you follow our advice, you can minimize the financial drama and be kicking back in your new living room in no time.

1. Get your credit in tip-top shape. Many landlords use your credit score to assess your trustworthiness as a renter. Pull your credit report — you can do this three times a year for free from AnnualCreditReport.com — to make sure it’s an accurate representation of your financial history, and give yourself some time to clear up any cases of mistaken identity or erroneous information.
2. Save up for a security deposit. Depending on your city, you’ll probably need to come up with a deposit worth at least two months’ rent before you take possession of an apartment. Start saving early so you’re not crunched for cash right around the time you’re itching to buy furniture for your new home.
3. Be aware of moving scams. WalletPop.com has a good article on identifying the most common scams perpetuated by moving companies. If a mover gives you references, check up on them before you give them access to all your worldly possessions.
4. Review your lease carefully. Never sign anything you haven’t read in full. If you don’t understand the terms of your lease, ask for clarification rather than assuming it’s boilerplate. Trust your gut if something seems fishy, even if it means walking away from the “perfect” place. You don’t want to get stuck with major bills and heartache if something goes wrong.
5. Protect yourself by inspecting the apartment. Take a video camera through your new pad before you’ve moved in your furniture so you have a record of its condition. Take written notes of chips in the paint, a rotted window sill, and any appliances that don’t look factory-fresh, and give a copy to your landlord. It will come in handy when you move out and want to get your deposit back.

Wendell T. Webber

Welcome to this week’s edition of our Tuesday Top 5, Econ4U’s weekly tips post to help you manage your money in five easy steps.

If you’re a parent or plan to be, you are in a position shape the money habits your children will have, even as adults. Beyond living by example, there are a few ways to make sure the lessons they learn are the best ones. Here are a few tips to put the next generation on the right path.

1. Be open about the household bills. “If you don’t talk about money, it’s almost like it doesn’t exist,” said Pamela Yellen, a financial educator, in an interview on NPR last week. Speaking frankly about the household budget and how you decide where limited resources go is a lot more instructive than a vague “money doesn’t grow on trees” parable.
2. Show them how to use credit responsibly. Let your kids watch you handle your bills so they can connect the dots between credit use and paying the bank monthly.
3. Teach them that plastic is a tool. Credit and debit cards can be useful products when handled properly. Consider putting their allowance on a prepaid debit card to teach them the practical applications of plastic — and that when the money runs out, the fun stops there.
4. Encourage entrepreneurial ideas from a young age. Got a kid who’s excited to start a lemonade stand or babysitting club? Great! Today’s roadside beverage purveyor is tomorrow’s Fortune 500 executive.
5. Look for everyday examples of economics in action. Keep your eyes peeled for teaching moments about economic lessons like supply and demand or price sensitivity.