My Spending Diet

After a month of ridiculous spending, I decided that I would try to see how long I can go without spending any money at all besides paying essential bills such as rent, groceries, car payment, etc. I’ve made it FOUR days so far. These four days have been fairly easy as I started on Sunday, Monday was a holiday and I work full time so I don’t have too much time to shop on the weekdays. Here are some tips about how I’ve saved money so far:

Pack Your Lunch: I pack my lunch to take to work 99% of the time. Occasionally I won’t pack if I know I’m going to be traveling around to meetings all day and my lunch will get left to get hot in my car. Hot lunch = salmonella, so no thanks to that.

Bring Your Own Drinks and Snacks to Work: By bringing pop, bottled water and snacks I already have at home, I can save a bunch of money. The pop machine here costs $1.25-$1.50 per bottle of pop or 60 cents or above for a snack.

Stay off Amazon.com and Other Websites: I LOVE Amazon. I buy most gifts and home items off their website. I also LOVE books. It’s way too easy to click “add to cart.” Solution: Just stay away.

Pay at the Pump: When getting gas, I don’t go into the convenient mart to pay. I use my debit card or credit card at the pump. That’s saves me the temptation of all those delicious goodies inside.

Drink Less Pop: I’ve made a point to try to drink less pop and more water at work. I have a metal bottle that I refill at our handy-dandy water cooler. Less pop = less money out of my pocket.

Think About It Before You Buy It: There’s a gift I would really like to get my boyfriend for our anniversary in October. When I originally saw it, I wanted to click “Buy” right away. Instead, I closed the internet browser and walked away from the computer. Why buy it then? It wasn’t on sale at the moment. I needed to research the gift more. I also needed to ensure he didn’t already have something like it. Instead, I’ve set up a savings plan for this gift AND done my research to ensure that it is a good gift. I haven’t decided whether or not to buy the gift for sure yet, but I’m glad I took the time to think about it before pressing the “Buy” button. Too often, we press that button before thinking clearly and end up buying something we don’t need. Wait a day, a week, a month before you buy something to ensure you actually will use something and you aren’t buying something just for the immediate gratification. Example: My boyfriend has been looking at the Dyson fan for a LONG time. Each time it has gone on sale on woot.com, he’s debated buying it. Yesterday, it was under $100 (that’s about 1/3 of the actual cost). He researched the cost on other websites and looked at reviews. He decided to buy the fan. I applaud him for searching for the best deal and waiting to buy something instead of buying immediately for the instant gratification a purchase can have for some people.

My challenge for my no spending challenge will be this weekend. My boyfriend and I love to go places on the weekends: Lowe’s, the local mall, Target, etc. to get out of the house and go somewhere. We will see how long I can make it. Even if I just make it to 7 days without spending, or 5, I’ll be happy. That’s 5-7 days that I didn’t waste my money on something I didn’t need. How long can you go without spending?

Everything You Need to Know About Student Loans: Private Loans

Thanks to some reader suggestions. We decided to cover a few more topics in the financial aid world. In my first blog on the topic, we talked about a lot of myths and facts about financial aid, its uses and how federal financial aid works. I wanted to take a look at the other side of loans, private ones you can get through your bank or other financial institution!

Private student loans can be obtained at almost any financial institution – your local bank, credit union or companies like Sallie Mae, Wells Fargo and Discover also offer different types of student loans. Traditionally, private student loans are thought to cost more than a government student loan. This is because many of these loans have a variable interest rate (meaning it can change) and they can be more difficult to qualify for as credit checks and co-signers are often needed. These private loans were and are often used by students to ‘fill in the gap’ between their government loans and any grants or scholarships they have received. However, many of the private lenders are starting to aggressively compete for your business! Fixed rate loans are not so uncommon anymore along with it being a lower interest rate. This is great news for current and soon to be students thinking about their financial aid choices.

When taking out a private student loan your number one priority should be shopping around for the best rate and plan that fits your budget and needs. Each lender is going to have its own loan program with different interest rates, repayment policies, plans and qualifications. Don’t go walking into the first place you see and take out a $50,000 loan! Go to various lenders armed with questions: what is the rate, what are your repayment options, how do you handle forbearance or deferment, is there a grace period, how long do you have until you must start making payments, do you qualify – just to name a few! Unlike government student loans where you have one amount, one interest rate, one deal - private student loans are going to need a little more foot work but with great reward! 

Some helpful websites:

https://www.discover.com/student-loans/index.html

https://www.wellsfargo.com/student/planning/steps/private

https://www.salliemae.com/

Other Great Community Partners Programs at FSWP

I wanted to let you all know about a few other services we provide here at Family Services of Western PA as part of our team.

ROCS

First off is ROCS, or Reaching Out to Create Success. This program is for youth who are transitioning out of foster care or have already aged out of the foster care system. It is a FREE resource program offered to youth between the ages of 16 and 24. Once in the program, youth design Goal Achievement Plans to help them identify short and long term goals.Some goals have included getting a GED, workforce development resources, financial education, and much more. ROCS staff work with youth in obtaining the right supports and resources for these goals.

For information on ROCS, email Shayla at sojourners@fswp.org.

Supported Employment

Are you looking for a job? Do you need assistance in finding a job? Supported Employment helps their consumers explore their interests and find their strengths in job hunting. SE staff can provide assistance with resume writing, meeting employers, and achieving employment goals. Our staff works with both our local community in Allegheny and Westmoreland counties as well as FSWP consumers.

For information on Supported Employment, email Megan at syputm@fswp.org or Curtis at terryc@fswp.org.

Supported Education

Are you looking to finish high school, get a GED or go to college? Need help? Supported Education staff can help you reach your education goals. We provide one on one help to assist you in finding resources to further your education. We can get you on the right track to getting that education you’ve always wanted.

For information on Supported Education, email Curtis at terryc@fswp.org.

Ways to Work

Ways to Work is a Transportation Loan Program that helps the community by giving low interest loans to working individuals that need transportation to get to work. These loans are for individuals that cannot get traditional loans due to poor/no credit.

For more information or to apply, please visit: http://www.pawaystowork.org.

Educational Assistance

The Educational Assistance Initiative provides financial assistance for post secondary education to economically disadvantaged youth who have been served by social service programs in Western Pennsylvania. This program helps students with the supplementary costs of attending college or vocational school, such as computers, transportation assistance, rent and living costs, and college or vocational training fees. Many students begin in their senior year of high school, and in some cases, students in their early 20s who have decided to pursue post-secondary education. Support to all students in this program is provided throughout their time in school.

To apply, click here.

Summer Class Schedule!

As we approach the official start to summer, we felt it was high time for a Financial Wellness class update! The Financial Wellness classes are going strong, each location holding its own unique variety of individuals and discussion. 

One main topic that has come up in many of our discussions is the difference we find between what we actually make and what we are spending. For some of us, we have a number of how much we make in our head and then spend our money accordingly to what we ‘think’ we have to spend. The problem is, there is often a HUGE different between these two numbers! I would challenge you to do this exercise. On a piece of paper, write down all the things you spend money on (wants and needs) and how much you would guess or know you spend on them in a month. After that, write down how much income you make each month – are you making more than how much you are spending? Hopefully, the answer is yes! But if you answered no, it’s time to evaluate your spending habits and make some healthy changes!

Financial Wellness is something each and every person can benefit from – you can never stop learning! If you are interested in attending a class, our summer schedule is listed below. If you do not see a class near you or would like to host a class, contact us in the Economic Empowerment Department at: 412-820-2050 ext 419. Cheers to your financial health!

Here are our current classes for this upcoming summer with many more to come! 

Tuesdays, 2:00PM: Catholic Charities of Pittsburgh

Fridays (starting June 1), 2:00PM: Three Rivers Center for Independent Living

Mondays (starting June 4), 1:00PM: Rainbow Kitchen in Homestead

Tuesdays (starting June 5), 5:30PM: Family Services of Western PA, Greensburg

Wednesdays (starting June 20) 1:00PM: Westmoreland Case Management and Support, Inc.

Thursdays (starting end of June/beginning of July – Young Adult Class!) 10:00AM: Valley Point YMCA

Tuesdays (starting July 10) 10:00AM: Mercy Behavioral Health

Money for Dummies: Six Tips

The "...for Dummies" books are fairly popular, so I thought we could start our own "Money for Dummies" series. Today, I'll cover 6 "Money for Dummies" tips to help you get your finances under control.

1. Spend less money than you make. In a society where folks feel that they must buy, buy, buy all the time, it is hard to keep spending to a minimum. Know how much you make each month and write a budget. Stick to that budget so you aren't spending more than you make.

2. Pay your bills ON TIME. Not paying bills on time is just one way to keep spending money in stupid ways. Every day/month you're late, there is a fee. Automate the bills you can to save yourself the late fee charges.

3. Save something. A dollar, five dollars, 50 cents. Save what you can each month. It's a dollar, five dollars, or 50 cents you didn't have before. You never know when you'll need that later.

4. Know the difference between needs and wants. I hear all the time, "I NEED to get my nails done." Is that really a need? Absolutely not. It's something you wanted. Pay for your needs before you pay for your wants.

5. Know what you can afford. If you're at a store looking at, say, a new pair of jeans, can you truly afford that $60? I know I can spend $400 each month on groceries, entertainment, etc. I keep tracking of my spending throughout the month, so I'd be able to look in my little notebook and see whether or not I could afford those $60 jeans that month or if I have to wait until next month.

6. If you have debt, don't get yourself in more debt! If you're in credit card debt up to your eyeballs, don't get another credit card or car payment or house payment. Pay with cash for everything and throw as much money as you can at those debts. Pay as much as you can to your highest interest rate first and keep going until you pay them off. You can do it! I know you can!

Student Loans: Everything You Need to Know About Federal Financial Aid

Lindsey, one of our Budget Counselors, was a Financial Aid Advisor for one of our local Pittsburgh colleges before coming to work at FSWP. She has put together a list of facts and tips about Financial Aid and what you need to know.

Fact: You can fill out the FAFSA at any point in time.

Contrary to popular belief, you can complete the FAFSA at any point during your academic career – there is no ‘deadline’ for completion. What happens if you fill out a FAFSA into a Fall or Spring semester, your ‘award year’ for financial aid is going to run slightly opposite your academic year. For example, you filled out the 2012/2013 FAFSA during the winter of 2012. You will still be in your 2012/2013 academic year credit wise when you have to fill out your 2013/2014 FAFSA. This is not going to hurt your academic progression and your financial aid officer should alert you to when you need to make the switch.

The FAFSA is also 100% free. If you are filling it out online and are asked to pay something than you are not on the correct site! (See some helpful links below!) You are also going to need your previous year’s tax return to fill out the FAFSA. There is now a helpful link between FAFSA and the IRS you can activate that will bring up your tax information if you don’t have it handy. 

Tip: Fill it out as soon as possible!

While you can fill out and/or receive any federal financial aid or Pell grant if you qualify, there are many other government or state grants that you may be able to receive providing you apply early. Many grants are on a first come first serve basis and applying early can give you a better chance at receiving them!

Fact: You have an ‘aggregate limit’ for federal financial aid

Sadly, when I previously worked in a financial aid department, I saw many students who had no idea what an aggregate limit was. An aggregate limit is a limit set forth from the government to how much federal financial aid they will loan you in your lifetime. Loans through your FAFSA are called Stafford loans and there are two types. Subsidized loans do not collect interest while you are enrolled in school and unsubsidized loans do collect interest while you are in school. Aggregate limits are based upon your grade level, dependency status and whether it is a subsidized or unsubsidized loan. These can change on yearly bases, so you will want to always check what they are when you are filling out your FAFSA. Right now the total (subsidized and unsubsidized) undergraduate limit is: $57,500.

Tip: Don’t borrow the maximum amount and try to make some sort of payment

When you apply for federal financial aid, some students may be eligible to receive more than what it actually costs to attend classes. When this happens a student can receive a ‘stipend’. This is an actual check from your unsubsidized portion of your loan (so it collects interest while in school) for you to use for ‘educational’ purchase. This amount can go up every year, making it so you get more and more back in a stipend. While $57,500 seems like a lot of money, between the rising cost of tuition and the large stipend that are able to be received you can reach that very quickly! When you hit your aggregate limit you are unable to receive any more federal financial aid and must resort to more expensive and sometimes harder to receive, private loans. To avoid this, only take out what you need to attend classes and try to make some sort of payment on your loans while you are in school to avoid costly interest charges. If you are unsure where you stand with your aggregate limit you can go to the website link below and check! 

Fact: If you are dependent student and your parent qualifies for the parent plus loan, your options may be limited. 

When you are a dependent student you need your parent’s information to fill out portions of the FAFSA. If you parent is found to be eligible for a Parent Plus loan then you cannot receive independent level funds. If you parent is unwilling to take out any sort of loan for you to attend school, you are likely to not have enough funding in dependent level loans. 

Tip: Discuss options prior to filling out financial aid with your parents and look into private loans

Some parents may not be familiar with how federal financial aid or a Parent Plus loan works. If you are a dependent student (a student who is under the age of 24, has no children and/or does not support themselves) have a conversation with your parents prior to filling out the FAFSA to see what they are willing to contribute, if anything. It is a good idea to see if you parent qualifies for the Parent Plus loan.If they do not, you will be granted independent level loans. If you fill there is a reason you should be considered an independent (you live on your own, have a child, etc.), then you can petition for a professional judgment through your school to see if you can get the additional level loans!

Fact: Student loans are not included in bankruptcy 

Sadly, many Americans are finding themselves in financial crises. Between mortgages, student loans and various other expensive it can b e hard to stay afloat. Bankruptcy is becoming more common. While the right choice for some people, for others, much of their debt may in fact be from student loans. With a shaky job market, it can be hard to find a good paying job, or even a job in your field and you can feel overwhelmed. If student loans are making up a huge portion of your debt, consider this before filling for bankruptcy. That student loan will still be there when all is said and done. 

Tip: Wait to continue your education 

Many people feel that if they continue their education, it will help them with their current student loans in the long run. You can put your undergrad loans on deferment (you will not have to make any payments while you are in school) and hope with a higher degree you can get a better job with a bigger salary. While this does work for some, others find that they not only cannot find a higher paying job. Instead, they've added on another couple grand to their already large student loan. If you are considering continuing your education, make sure you are financially ready and it is a step that will indeed help your career. 

Fact:  A four-year institution may not be the best thing for you

It’s no secret. A traditional college or university is much more expensive than a community college or trade school – even higher if it is a ‘private’ institution. It also is no secret that at 18 years old, many do not really know what they would like to do in regards to a career path and each major change can send you farther from graduation and further into debt. 

Tip: Take your time to figure out what you want to do

Just because everyone is ‘going to college’ after high school doesn’t mean you should follow the crowd. Do you really and truly know what you want to do ‘when you grow up’? If the answer is no, then try taking some of your general education courses at a community college while figuring it out. It will be cheaper and they should transfer to a four year school. Many community colleges have arrangements made with other institutions for people to transfer in after two years. If you feel that college isn’t for you, look into a trade school. There is no shortage of skill and trade specific jobs with good pay; you just need to spend those nine or twelve months in school to get them! Bottom line, there is no rush when figuring out how you are going to spend your educational money. 

Fact: You can’t go to school for free 

When I previously worked in a financial aid department at a university one of the number one things I heard was, “I don’t want to take out loans. I want to get grants and scholarships to pay for school”. The sad truth is that it is pretty much impossible to go to school for free. Yes, some Division 1 athletes, science genius or other rare individuals can come across a ‘full ride’ for school, but since most of us are not in that category, loans are a reality of school. Education is an investment in yourself and your future, if you are okay with investing in you, than a few loans will be okay. 

Tip: Research and apply to as many grants and scholarships as you can

There are hundreds upon thousands of different scholarships and grants out there. There is even a scholarship just for having red hair! The key is doing some research and applying for as many as you can. It can be tedious and time consuming, but if it’s a couple hundred dollars you get that saves you from taking that out in loans, why wouldn’t you want too? If you are working, look into whether or not your employer offers any sort of educational assistance.  You can also do some of the previously mentioned items like filling out your FAFSA early to see if you can receive any additional state or government grants!  

Helpful Websites!

www.fafsa.ed.gov [Fill out your FAFSA here!]

www.pin.ed.gov  [Create your personal identification number for your financial aid here. You can look up your pin if you forgot it here or change it.]

www.studentloans.gov [Fill out your Master Promissory Note and complete Entrance Counseling here. You can also find out lots of information and documents for the Parent Plus Loan]

www.nslds.ed.gov [Look up your current and past student loans, repayment status, how close you are to the aggregate limit and any other additional loan information. Any student loans you have will be here!]

www.finaid.org [A good scholarship resource!]

www.fastweb.com [A good scholarship resource!]

Money Saving 101: Decorating on a Budget

I don’t know if you are anything like me, but I tend to get bored with my surroundings. My guilty pleasure is walking through Crate & Barrel, Bed Bath and Beyond or Target to look at decorations, wall art, furniture and plants. I want it all, until I look at the price tag! Updating and redecorating can be expensive. Since I enjoy switching things up more often than not, here are some ways I have discovered to give you house a whole new look, even if you are not necessarily a ‘crafty’ kind of person and without breaking your bank to do it! 

Try rearranging your furniture and pictures! Sometimes all you need to do is switch your couch with your TV and bring out an old picture you have seen in awhile to hang on the wall. Do this and all of the sudden, your room feels and looks so much different! I have done this about every six months since I was a little. My parents would come into my bedroom only to find me dragging my dresser across the wood floors. (They were not happy about the scratches!) Now that I am older, I make my husband do it. (We have carpet, so no scratches!) 

Changing the scheme and color of a room is not as hard as you think. For example: your living room is blue themed (pillows, lamps, etc.) and now you want it to be red. Instead of going out and buying new throw pillows or lamp shades and spending lots of money, try working with what you have. Buy a red patterned pillow case and some fabric glue. Put your current throw pillows in the pillow cases and glue them shut – you now have new pillows! I would also recommend hitting up some yard sales, thrift stores or the clearance at your local Ross/TJ Maxx/Marshalls. You never know what you may find. 

Paint is your best friend. I am by no means an artist, but I can still paint a wall! Try repainting your walls, picture frames or doors. A new color can give a space a whole new lease on life. You can pick up inexpensive can of paint almost anywhere or check with friends or family that have recently done some painting and see if they have any leftover. 

Try getting a little crafty! If you see something you really love at Crate & Barrel, try mimicking it by picking up a similar thing at a craft store (even the Dollar Tree sells some craft items) and doing it yourself! You can get cheap wooden or glass wall accents, shelves, frames or decorations and all the supplies you would need to make that perfect item! I recently purchased two large wooden, decorative shelves at my local Michaels craft store. They cost me $14.00 each. I also bought a can of white paint for $2.00. I painted them and hung them up on a big empty space in my living room. Not only does is look awesome, but I only spent $30 and to buy the same thing at Target it would have cost me $70+! 

Get creative! Try hanging your main utensils on hooks in your kitchen for decoration. If you love paintings try buying a poster of your favorite and faux wooden poster frame. There are so many DIY (do it yourself) sites and ideas out there, you don’t need to be an interior decorator or Van Gogh to spice things up in your house or save money!