The so-called “flash sale” discount sites are particularly enticing. A designer bag or new tech tablet is offered in limited quantities, and a timer runs nearby telling you how much time is left. Thinking to yourself, “I’ll never get a better deal,” you quickly make the purchase.

Sounds great, right? Not so fast: Spending more than you normally would, or spending on an item you don’t need (even if it’s on sale) is NOT saving—it’s overspending.

Here are a few tips about how to avoid the temptation to spend on the latest, greatest “flash” sale:

1. How Good is That Deal?

With a limited number of items and a limited time to buy, retailers are capitalizing on our impulse to buy now rather than later. But the deal you’re getting might not even be that great. As the New York Times reports, don’t be surprised if you find those same “exclusive” items on a different site, for less money and without the pressure.

2. Money For Nothing…

In an age of credit card information that’s automatically on file and “one-click” online purchases, sometimes it seems like you aren’t even spending real money. Reality check! The credit card bill is going to come every month, and it’s up to you to keep track of each purchase so you don’t blow your budget. Un-checking that “save my information” box at your favorite online retailer might be just the thing you need for a more frugal New Year.

3. Keeping up with the Joneses

Retailers on these “exclusive” discount sites have taken “Keeping up with the Joneses” to another level—not only can you purchase the new bag that your favorite celebrity is sporting, but you can also use social media to let your friends know about it. The best way to avoid going into debt is to stop keeping up with the Joneses – especially considering that the rich and famous don’t have much of financial track record to speak of.

SciencePhoto.com

Labor Day marks the unofficial end of summer, and for many teens and young adults, it also means the conclusion of the worst summer for finding seasonal employment in decades.

Our affiliate, the Employment Policies Institute (EPI), has released an analysis of new Census Bureau data showing unemployment among people ages 16 to 19 at or above 20 percent in 35 states through July 2011. Seven states and the District of Columbia were even worse, averaging more than 30 percent. (That should come as no surprise for anyone who spent the summer fruitlessly job seeking.)

In a press release, we delivered the grim news:

“The nation’s teens have just experienced their third summer in a row with an unemployment rate above 20 percent,” said Michael Saltsman, research fellow at the Employment Policies Institute. “As a result, thousands have missed out on the valuable career experience that comes from an entry-level job.”

Unfortunately, just because the school year is starting doesn’t mean that the job outlook is improving for students looking for after-school work. Wage mandates that were theoretically designed to help less-experienced workers earn more money have backfired, locking teenagers out from jobs and making the employment-seeking environment even more hostile to unskilled workers. Lawmakers need to reconsider the broad effects of minimum-wage laws and evaluate how they have affected the very constituents that needed the most help.

MSNBC.com

Last weekend, D.C. Mayor Vincent Gray granted an audience to high-school and college students in the Nation’s Capital to discuss the high teen-unemployment rate. At the beginning of the summer, the Bureau of Labor Statistics reported that teen unemployment had skyrocketed, with half the states showing unemployment rates above 25 percent. Even more depressing, the jobless rate for minority teenagers is 42.1 percent nationwide.

The D.C. government attempted to pre-empt this trend by spending more than $20 million to place 14,000 District youths in jobs at government agencies and local businesses. Still, many young people were left disgruntled at the reality of being unemployed for the summer, leading one 17-year-old to tell The Washington Post: “I think it’s not anyone’s fault. We need to go out there and get jobs, but at the same time, they could come to our schools and make it easier for us to sign up.”

However, we feel that sentiment misses a key economic point. With such a high teen-unemployment rate, the demand for summer jobs has clearly outstripped the supply. Teens who wish to work must show some initiative in pursuing the jobs that do exist, and lawmakers could rethink minimum-wage policies that tie employers’ hands in hiring less-experienced workers such as the young people who attended this town-hall meeting.

Beyond that, there are plenty of ways that teens can stay busy and earn money outside of traditional employment. If you’re looking to drum up a little extra cash before school is back in session, check out our tips post here.

DOE.gov

The New York Times had an article Thursday about the Obama administration’s proposal to cap health-insurance rate increases at 10 percent to begin in September. On its face, this may sound like a great plan: Who wouldn’t want to put a cap on prices to keep consumers from paying more?

But the trouble with capping prices for the health-insurance industry (or indeed, any kind of business)is that it does nothing to address the reasons why prices are rising. In the price paid by the business continues to rise, but the price they can charge is capped at a set amount, a shortage of the business’ good or service is inevitable. In fact, government-mandated price controls have been attempted by a presidential administration before — with spectacular failure.

In 1973, President Richard Nixon enacted price controls on the cost of gasoline, capping what gas companies were permitted to charge per gallon of fuel. Since gas stations couldn’t raise their prices to reflect their true costs, they simply operated fewer hours per day. It immediately lead to rationing as consumers lined up for hours to buy the limited remaining supply of gas so they wouldn’t be left with an empty tank. Those who didn’t have the time or inclination to wait in line chose instead to pay exorbitant prices for fuel on the black market.

It’s not unreasonable to believe that the same thing will happen with health insurers faced with a cap on rate increases. To keep expenses down, insurance companies will likely choose to scale back services or reduce the quality of their coverage. Other companies may decide to stop providing coverage altogether.

None of these consequences would benefit consumers, as the law presumably intends. Consumers, insurance companies, and regulators would do better to address the root causes of price increases rather than invent economically short-sighted laws solely for political purposes.

Lawn-Mower-Parts.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.

This year, it’s never too early for teens to be thinking about their summer job opportunities. A new analysis of data from the Bureau of Labor Statistics shows that teen unemployment has skyrocketed in recent years, with half the states showing unemployment rates above 25 percent. For minority teens, the statistics are even more dire: Nationwide, the jobless rate for black teenagers is 42.1 percent. There are myriad reasons for it — from a high minimum wage that encourages employers to hire older and more experienced employees over teenagers, to the increasing popularity of automation like self-checkout at the grocery store. One thing is for certain: Many high-schoolers looking for traditional employment this summer will be out of luck.

But there are other things teens can do to gain money or experience this summer. Here are some options:

1. Exterior home services. Lawn mowing and washing windows are easy ways to make cash and build up a steady list of clients without spending a lot of money on supplies. All you’d need is a lawn mower (which you could probably borrow from your dad) and a professional squeegee, dish soap, paper towels, and a bucket — all of which can be procured for $50 or less. Charge a reasonable price per window and per acre and you’ll recoup your outlays in just a few jobs.
2. Child care. Beyond babysitting, there are lots of ways to help parents out when school is out for the summer. If you’re a good swimmer, it’s fairly easy to get certified as a swim instructor and lifeguard through the American Red Cross. Giving swimming lessons to kiddos is a great way to stay active in the summer as well.
3. Errand runner. Ask any busy working parent if they’d like some help running errands on the weekends and you’re likely to get a hug. Negotiate an hourly rate for the service and offer to pick up dry cleaning, deliver kids to soccer practice, shop for groceries, and otherwise act as a personal assistant. Your clients will feel like celebrities.
4. Tutoring. You’re a smart kid, so why not make some money off those good grades? Ask your teachers if they know of tutoring opportunities for students within your school.
5. Volunteering. Money isn’t the only valuable thing you can earn in the summer — experience and solid references count just as much. Animal rescues can always use dog walkers and litter scoopers, hospitals typically have opportunities for candy stripers, and charities like Recording for the Blind & Dyslexic will appreciate anyone with a good speaking voice and a love for reading.

FICACreditScore.net

Somewhere between your SAT results and your cholesterol levels, your credit score becomes the most important number to govern how your life turns out. There are several factors that go into calculating your credit risk, and the result can have an impact in many arenas — affecting your ability to get an apartment, a mortgage, and even a job. Here are five questions you need to know the answers to regarding your credit score.

1. How many credit scores do I have? The Fair Issac Corporation (abbreviated as FICO) has the gold standard for credit-score computing. Based on a scale of 300 to 850, the FICO score is what the majority of banks use to determine what terms and rates a loan applicant will qualify for. To compete with FICO, the three credit-reporting agencies — Experian, TransUnion, and Equifax — have come up with their own system of credit scoring. The VantageScore scale starts at 501 and goes up to 990 and each consumer has three VantageScores (one from each credit bureau), which are calculated using a different metric from FICO. Introduced in 2006, VantageScore hasn’t really caught on with lending agencies at large yet, but it’s still not a bad idea to know what yours are.
2. Where do I check my score? You can get your official FICO score at MyFICO.com for $19.95, or you can get a free estimate of your score at CreditKarma.com. Users report no security issues and results that are pretty close (within 10 points on average) to their official score.
3. What about my credit report? Every consumer is entitled to three free credit reports per year — one from each bureau. AnnualCreditReport.com is the government-sanctioned website where you can pull your reports online. We recommend checking them every four months and saving them as a PDF on your password-protected computer.
4. How do I raise my score? In a nutshell, paying your bills on time, keeping old accounts open and active, and maintaining low balances are the essentials to increasing your score. You can find more in-depth advice in this Tuesday Top 5 post on how to beef up your credit score.
5. When should I try to raise my score? As a rule of thumb, maintaining a FICO score over 720 qualifies you for excellent interest rates and loan products. After your score surpasses 750, however, a higher score doesn’t net you any additional benefits. So while aiming for a perfect 850 might give you some personal satisfaction, rest assured that you’re already getting the best deals banks have to offer.

As we’ve blogged before, this is a tough summer to be a teenager. There are very few job opportunities for unskilled workers this year, as evidenced by the 26.4 percent national unemployment rate among teens who would like to score a seasonal job. (And it’s even worse for minority youths.) But if you missed out this year, here are a few ideas to make yourself an attractive job applicant by the time next summer rolls around.

1. Be willing to do whatever it takes. Your first job is unlikely to be glamorous — that’s why they call it “paying your dues.” Sure, flipping burgers or changing diapers may not rank up there on your list of dream careers, but at least you’re getting a paycheck. And if you do it with a genuine smile on your face, you’ll reap the rewards with stellar references.
2. Act fast when opportunities arise. This week in Massachusetts, Gov. Deval Patrick pledged $9 million in taxpayer money to create 4,700 new jobs for teens across the state through the YouthWorks program. Check in your district to see if anything similar exists and take the initiative to get on a waiting list to secure a spot before the word gets out.
3. Get experience any way you can. Set yourself apart from the pack by having some background in the job you’re applying for. Even if it doesn’t come with a paycheck, volunteer work can be a great way to gain the skills and knowledge of your field of interest.
4. Keep a structured schedule. Don’t take unemployment as an excuse to be glued to the Wii all summer. Use your free time productively and you could collect money for doing chores or offering to run errands for your parents and neighbors. Plus you’ll feel more fulfilled than if you stay inside all day.
5. Persist. A dog groomer in Connecticut said she received 60 applications for 8 job openings this year — most of them teens and college students. While the odds are against you, be polite yet persistent and tailor your resume to demonstrate to a potential employer all the reasons why you should be among the select few to get a coveted space on the employee roster.

If you’ve ever uncovered “found money” and decided to save most of it, you’re already acquainted with the idea of consumption smoothing. It’s the economic principle that people avoid abrupt swings in their standard of living, and income and saving go through cycles over a long period of time. There are many ways to use this theory to support a lifelong financial strategy:

1. Sock away about 90 percent of a windfall. Don’t let the extra money go to your head; you probably have some savings goals that could benefit from a boost. Have you maxed out your Roth IRA, assuming you qualify? Are you working on a down payment on a house? Divide the money among your various priorities, and think about which deserves the lion’s share.
2. Don’t deprive yourself… Especially in the event of an inheritance or work-related bonus, you should enjoy at least part of that money to respect the wishes of close friend or relative or as a reward for a job well done.
3. …but understand the usefulness of delayed gratification. One reason lottery winners so often go broke is that it feels like money will solve all their problems, and that such a large sum will never run out. However, without sound financial planning, neither assumption will be true in the long run.
4. Live like a college student for as long as possible. When your income is the lowest it will ever be, also committing to keeping your standard of living low will make it easier to save as you climb the job ladder and rack up raises. The younger you are when you strike the balance between saving and spending, the bigger your nest egg will be to sustain you when you’re older thanks to the power of compound interest.
5. Yet it’s never too late. Don’t get discouraged if you spent your 20s and 30s paying down college debt and trying to make ends meet for your young family. Income typically peaks around age 50, which puts most households in a great position to play catch-up. Take advantage of this upswing in your financial life-cycle and buckle down on savings when you’re best able to afford it.

Unfortunately, summer 2010 is turning out to be a tough job market for teenagers and unskilled workers, but there are still ways for young people to spend the summer productively. Here are a few ideas of how to scale the ranks quickly and set yourself up for success in the future.

1. Get certified. If you’re looking for work as a camp counselor or lifeguard, you’ll stand out from the job-seeking crowd if you already have first aid certification from a reputable organization like the American Red Cross. Some jobs will provide this training, but already having it under your belt is a surefire way to set yourself apart.
2. Volunteer. Logging hours as a volunteer, while it doesn’t pay, gives you on-the-job experience and great references when you need them in the future. And with so many worthy charities looking for help, you’re unlikely to be turned down.
3. Tutor younger kids. Put your good grades to work over the summer. If you’re a math whiz or have a talent for writing, ask your teachers if they know of tutoring opportunities for students within your school.
4. Don’t slack off. Remember that experience is cumulative, so if you work hard at a minimum wage job, chances are you’ll be promoted beyond it fast.
5. Strike out on your own. Love animals? Advertise a pet-sitting or dog-walking service in your neighborhood. Do you enjoy being around kids? Spread the word among your parents’ friends that you’re available as a babysitter. But for safety’s sake, stick to working for people you know and trust.

Making the most of the summer is a great way to position yourself for a better job opportunity in the future.

Consider this economics at work.

Below, a few statistics about the flight of the chicken wing:

• In the 1980s, chicken wings were selling for an average of 46¢ per pound to chicken breasts’ $2.01 per pound (in inflation-adjusted dollars). In March 2010, a pound of wings now will set you back an average of $1.61, compared to $1.35 for a pound of white meat.
• Wing-focused restaurant Buffalo Wild Wings opened its doors in Chicago in 1982. Twenty-seven years later in 2009, the chain reported revenue of nearly $489 million.
• A whopping 8.5 billion wings were sold in restaurants in 2008, and another 3.5 billion were purchased through grocery stores.
• Earlier this year, news reports started popping up regarding a possible wing shortage. It’s not because fewer chickens are being produced — it’s because that’s what crazy demand will do.

No word yet on whether bleu cheese dressing demand is also exceeding supply.