Boomerang Kids: 85% Of College Grads Move Home

According to new statistics, there is a new group of kids in town: the boomerangers. They are college graduates who move back home because of extreme unemployment rates among their age group. Nearly 15% of taxpayers between the age of twenty and twenty-four are unable to find employment. According to CNN Money:

"This recession has hit young adults particularly hard," according to Rich Morin, senior editor at the Pew Research Center in DC.

So hard that a whopping 85% of college seniors planned to move back home with their parents after graduation last May, according to a poll by Twentysomething Inc., a marketing and research firm based in Philadelphia. That rate has steadily risen from 67% in 2006.

"It's peaking at levels we have not seen before," said David Morrison, managing director and founder of Twentysomething.

Mallory Jaroski, 22 graduated from Penn State University in May but has been living at home with her mother while looking for a job in press relations. "It's not bad living with my mom, but I feel like a little kid. I have a little bed, a little room," she says.

Jaroski thought she would stay for summer. But like many others, she's found her stay becoming significantly longer.

"There's almost an expectation that kids will move back home, there is no stigma attached," Morrison said. "The thought now is to move home for 6-12 months but in reality those young adults will be home for a year and a half or longer. Even if they have jobs, they are living at home."

Continue Reading…

Can Using Gift Cards Help You Stick to a Budget?

Most of us only think to buy gift cards for birthday or holiday presents. However, some savvy shoppers are finding a new use for them: budgeting tools. By purchasing gift cards ahead of time for gas, food, and other necessities, it forces them to stick to the budget.

More from WalletPop.com:

The holiday shopping season is drawing near, and if you're like many Americans, you may be wondering where to find the discipline to stay within your budget. Here's a new idea for you: Try using gift cards. You pay for them up front and there's no interest or late fees to pay, unlike credit cards. In fact, you don't need to wait for the holidays; gift cards could help you budget for a big expense like a vacation or a home-improvement project.

But while gift cards might help you establish a greater degree of control over your holiday spending, there are a few things you should keep in mind to stay on track, says Ruth Susswein, deputy director of national priorities for watchdog group Consumer Action. "It's not a bad idea if it helps you stick to a spending limit," Susswein says, although she notes that the people who really need financial discipline might still be tempted to whip out a credit card if their spending goes over the pre-set amount on the card.

There can also be an issue with the cards themselves, Susswein warns. "One thing I would caution is the cards with the most flexibility may cost something to buy and you may not want to waste your limited funds on purchasing the gift card," she said. While most chain retailers don't charge anything beyond the amount that's loaded on the card, the drawback is that you can only use the card at that chain or occasionally at one of its sister brands. If you want a go-anywhere card, you'll generally have to pay for it, and those cards can also hit you with fees.

Furthermore, Susswein points out, gift cards are less secure than their credit or debit counterparts in the sense that if you lose a gift card, it's just like losing cash: It's gone forever. If you plan to purchase gift cards to help you stick to a budget, do your research first so you're informed about any limitations, caveats or fees imposed by the seller.

One final point: Many rewards cards out there will let you cash in your points or miles for gift cards. Susswein advises against this, pointing out that because of the cards' various conversion rates, you almost always get a better bang for your buck if you take an available cash-back option. So instead of using $100 worth of points to purchase a gift card, she says, have those points applied as a statement credit, then take the cash and use it to buy a gift card at a retail store.

Read more here

California Senate Approves a Budget Plan

100 days after the constitutional deadline to pass a budget, the California Senate finally came to an agreement and sent a budget to Governor Arnold Schwarzenegger. According to News10.com, the vote came after a long night of floor votes and party caucuses. However, not everyone is happy about the new changes and spending cuts it includes.

"This budget has too much spending, which could make next year's deficit even worse. I'm voting no, "said Sen. Jeff Denham, (R) Merced.

Democrats say the spending plan is fair.

The state Assembly passed the main bill Thursday afternoon in a legislative package aimed at ending California's record budget impasse and closing a $19 billion deficit. Trailer bill list

Lawmakers voted 54-1 Thursday in favor of the measure, SB970, getting just enough support in the 80-member house to reach the required two-thirds vote threshold.

The budget package contains no new taxes or fees, and just 40 percent of the gaping deficit would be closed by additional spending cuts. The rest would be addressed through rosy revenue assumptions and creative accounting.

Your Card Has Been Declined, Just as You Wanted

If you are one of those people who just cannot seem to stay within your monthly budget, you might want to look into the new personal finance tools Citigroup plans to begin offering customers. They intend to offer a feature that will allow customers to set budgets for themselves, and have their card decline purchases that would put them over budget.

The service, called inControl and already in use by some Barclaycard holders in Britain, is a sort of financial chastity belt that offers the potential to prevent a variety of budget sins and other money traps.

Worried about your restaurant habit? If your bank adopts MasterCard’s service, you could tell it to have your debit or credit card reject any restaurant purchase above whatever monthly cap you set.

Sick of your credit card number falling into the hands of thieves? Tell your card issuer to never allow charges originating from the fraud-prone countries that end in “stan” or “ia.” (Don’t worry: You can instruct your bank to make an exception for Australia during the few weeks that you’ll be honeymooning in Sydney.)

Continue reading at NY Times.com…

High-Income People Would Benefit From Extension of “Middle-Class” Tax Cuts

According to the Center on Budget and Policy Priorities, the media seems to ignoring a set of tax incentives for middle class Americans when discussing the expiration of the Bush tax cuts. In addition to helping taxpayers with average incomes, they would also provide tax breaks to taxpayers making over $200,000 per year.

This is because the 2001 tax law’s reductions in the lower tax brackets benefit not only people whose incomes fall within the lower brackets but also those whose incomes exceed those brackets. In fact, high-income people actually receive much larger benefits in dollar terms from the so-called “middle-class tax cuts” than middle-class people do.

Specifically, recent estimates from the Joint Committee on Taxation show that extending just the middle-class tax cuts would provide more than $6,300 in tax cuts to households with incomes above $200,000, on average, compared to $1,132 in tax cuts for households with incomes between $50,000 and $75,000. The Joint Tax Committee estimates show:

• Households with incomes exceeding $1 million will receive an average tax cut of $6,349 in 2011 if the middle-class tax cuts are extended while the high-income tax cuts are allowed to expire. (They will receive an average tax cut of nearly $104,000 if the high-income tax cuts are extended as well.)
• The story is similar, if not quite as dramatic, for households that make between $500,000 and $1 million. They will receive an average tax cut of $6,701 if the middle-class tax cuts are excluded (and of $17,467 if the high-income tax cuts are also extended).
• For all other income categories, by contrast, the size of the tax cuts are about the same whether the high-income tax cuts are extended or not. Even for households with incomes between $200,000 and $500,000, the effects are similar. The Joint Tax Committee figures show that they would receive an average tax cut of $6,743 if only the middle-class tax cuts are extended, and of $7,152 if the high-income tax cuts are extended, as well.

Continue reading at CBPP.org…

New Jersey Democrats fail to extend millionaires tax

Do you think millionaires should be charged a hefty income tax? What if it was to solve one of the highest budget short-falls in history?

According to Reuters.com, New Jersey Democrats had wanted to reimpose a one-year, 10.75 percent tax on income above $1 million that would have hit 16,000 people. New Jersey's fiscal shortfall, at 37.4 percent of the current year's budget, is the second-highest among U.S. states, second only to Nevada, according to the Center on Budget and Policy Priorities. However, New Jersey Democratic legislators on Monday failed to gather enough votes to extend a tax on millionaires that would have been used to provide property tax relief for senior citizens and the disabled.

The millionaires' tax would have raised $637 million for rebate checks of up to $1,295 for some 600,000 senior citizens who would otherwise face steep increases in their property taxes during fiscal 2011.

Gov. Christie claimed the tax would keep the millionaire business owners from hiring in our tough economy. However, he proposed a constitutional amendment placing a 2.5 percent cap on annual increases in residential property taxes.

Read the full article here. Tell me what you think on Facebook or @ronideutch on Twitter.

Latest Budget Extender Includes Tobacco Taxes

According to an article on msnbc.com, lawmakers in Albany, New York will soon vote on an emergency spending plan in hopes of avoiding a government shutdown. The New York state budget is 80 days late; a large tax increase on tobacco products totaling $290 million is included in the latest bill. For example, the tax on a pack of cigarettes would go from $2.75 a pack to $4.35 a pack. Should the bill pass, the new taxes would take effect September 1. Because all State Republicans have indicated that they would vote ‘no’ on any tax increases. In order to pass, the bill would require all 32 Senate Democrats to vote ‘yes’.

What are your views on “sin taxes” such as these? Comment on my Facebook page or message me on Twitter @ronideutch!

Three American cities on the brink of broke

Jefferson County, Alabama, Harrisburg, Pennsylvania, and Detroit, Michigan are going broke. According to Fortune magazine, via CNNMoney.com, the leading causes of financial upheaval for these three American cities are rampant unemployment, timid consumer spending, and underfunded public pensions. These cities are facing financial ruin mostly brought on by problematic politics and poor financial decision making by city officials.

Municipal bonds that are issued to fund public projects such as roads and public buildings have a less than half percent rate of default within a 5 year average, and are historically the safest avenues to invest. However, municipal bond defaults are on the rise. If these cities default on their debt, then the other, already financially overburdened states, as well as American taxpayers will have to foot the bill.

Read more here. Tell me what you think about this topic:
www.facebook.com/ronideutch or
www.twitter.com/ronideutch

If He Can’t Put a Ring on it, He Can’t Sign For it!

It’s spring time! It’s generally this time of year, when many people say “I do”. Finding someone to spend the rest of your life with is fantastic, and often times the subject of finances is seen as a “buzz kill” when it comes to love and relationships. Budgets are Sexy contributor and Financial Planner, Tahnya Kristina, put together some financial advice for couples:

Moving in together can be an exciting time. It can also be quite stressful if you don’t discuss beforehand how the money will be spent. Think about it. You are merging two separate budgets into one—household bills and groceries! This is an important time to sit down and discuss finances with your significant other, and draft a personal and couples budget. In the article, Ms. Kristina recommends:

Budget for Necessary Expenses
Only merging together the necessities to ensure an equal share in the participation of monthly expenses. For example, in a joint account you would each put money in for essentials like food, shelter and related expenses. When it comes to a budget, first, determine your total monthly bills as a couple. Then, add those bills as an expense to your personal budget. What you have left over, as Ms. Kristina states, is yours to keep individually.

Think Twice about Joint Credit
If one partner can’t commit to the other and sign on the dotted line for happily ever after, then don’t allow him/her to sign the back of your credit card!

Joint Savings Account
Start a joint savings account as part of your couple’s budget. Each of you should contribute an equal amount into a savings account in both names for other joint expenses such as a couple’s vacation, new furniture, or a weekly eating out budget. It helps to break down budgets into shorter amounts of time such as a weekly budget. Read the rest of the article here.

The Dividend Tax Bill Arrives

As January 1^st, 2011 approaches Democrats in Congress are laying out their fiscal priorities. According to the Wall Street Journal, the Senate Budget Committee passed a fiscal 2011 budget resolution that includes an increase in the top tax rate on dividends to 39.6% from the current 15%—a 164% increase. This huge increase is much higher than the 20% rate President Obama proposed in his 2011 budget.

And that's only for starters. The recent health-care bill includes a 3.8% surcharge on all investment income, including dividends, beginning in 2013. This would nearly triple the top dividend rate to 43.4% in Mr. Obama's four years as President. We suppose the White House would call this another great victory for income equality.

But the driving impulse here isn't equity. It's money. According to the static revenue estimation rules that Congress lives by, maintaining the current 15% tax rate on capital gains and dividends will "cost" the government $347.7 billion over 10 years. The Congressional Budget Office hasn't broken out how much the higher 39.6% dividend rate alone would yield in revenue, but a reasonable guess is $200 billion. Congress simply wants that cash.

But this revenue estimate assumes businesses and investors are dumb and dumber. Dividends which are payouts from business earnings are already taxed once at the corporate rate of 35%. The individual dividend tax is a second levy on that same income and at a rate of 43.4% would take the total tax on each dollar paid in dividends to something like 60 cents.

Summertime, When The Livin' Is Pricey

Summer is on its way, and so are costly summer activities. As MP Dunleavey of MSN Money points out, although summer seems harmless with its lazy afternoons and warm weather, costly summer activities can cause serious financial troubles for many American taxpayers. Check out a few of Dunleavey’s tips for summer budgeting below.

The catalogs are coming

I know. You want to believe that summer doesn't pose any financial risks. You want to sit on your patio and drink a cold one and pretend you're not going to read the Boden and Brookstone catalogs.

Well, take those rose-tinted sunglasses off and look at the dangers:

• Wedding season.
• Graduation season.
• Long weekends where you go somewhere or guests come to you -- either way, it's expensive.
• Home improvement season (my husband is painting as I type).

Continue reading at MSN Money…

Bill Seeks to End Some Furloughs for California Workers

From MercuryNews.com:

California would end three-day-a-month furloughs for tens of thousands of state employees under a jobs bill that is scheduled for its first committee hearing this week.

The targeted employees would be those who work for agencies that collect taxes or receive their revenue from sources other than the state's general fund, such as the Department of Motor Vehicles.

Republicans have been critical of the Democratic proposal, saying it does not go far enough to create private-sector jobs.

The bill's sponsor, Senate President Pro Tem Darrell Steinberg, D-Sacramento, said allowing certain workers to return to their jobs full-time will actually generate more revenue for the state and improve customer service.

He said furloughing workers at the Franchise Tax Board is costing the state more than $300 million a year in uncollected taxes. His bill would exempt the tax board and the Board of Equalization, which is fighting the furloughs in court.

The state loses $7 in tax board collections for every $1 it saves by furloughing workers there, the Senate Office of Oversight and Outcomes calculated in a report released Friday.

"All it's doing is keeping our economy down," Steinberg spokesman Nathan Barankin said.

Steinberg's bill also would exempt other agencies that receive at least 95 percent of their budgets from federal money or fees, which are not tied to the general fund.

Obama's Budget Would Redistribute $112 Billion From Top 1% of Taxpayers

From The Tax Prof Blog:

True to his campaign promise to "spread the wealth around," President Obama's recently released budget targets high-income earners for income redistribution to low- and middle-income families, according to a new Tax Foundation report. The president's policies would redistribute an additional $112 billion from the top 1% of taxpayers down the income scale in fiscal year 2012.

On average, the president's budget would redistribute another $101,314 from families in the top-earning 1% to the rest of the income spectrum, for a total redistribution of $509,257 per family. ...

Families in the bottom-earning 10 percent stand to benefit the most from the president's policies. As a group, they'll receive an additional $8.7 billion in federal spending benefits. On average, a family in the bottom 10 percent will receive an additional $494 in income redistribution for a total of $17,962.

Obama's Budget 'Cheats' (by $98 Billion) in Reporting Cost of Child Tax Credit & EITC Expansion

From the Committee for a Responsible Federal Budget via TaxProf:

A few months ago, we pointed out that the Administration was cheating in its Mid-Session Review budget baseline. Essentially it was taking policies which President Obama had signed into law as temporary, under the stimulus bill, and assuming them as permanent. The implication being that, if the policies were a part of the baseline, they wouldn't need to be paid for when enacted.

[T]he Administration says it should be able to measure its policies off of a "current policy" baseline. We disagree; if President Obama wants to extend the Bush tax cuts -- the same ones which he criticized the Bush Administration for not paying for -- he should have to offset them, or else fess up to using them to increase our debt. For the sake of argument, let's accept that the Administration should be allowed to budget from a current policy baseline. The result would remain the same—they are cheating.

The Administration is taking two tax provisions from the 2009 stimulus bill -- expansions of the child tax credit and the EITC -- and claiming them as part of the "current policy" Bush tax cuts.

The Administration didn't inherit these policies, they created them. And worse, still, they created them as explicitly temporary, under a stimulus bill which they claimed was meant only to help bring us out of this recession.

Yet the White House wants to continue these policies, and they don't want to pay for them. So what do they do? They hide these policies in their baseline, in the hopes that they won't have to. For the tax cuts, as Bob Williams of TPC points out, they don't show this until "footnote 5 on page 170 of Analytical Perspectives."

So how much money is involved here? Well, putting these measures into the baseline makes the President's tax cuts for families appear to cost $143 billion over ten years, when they actually cost $241 (excluding the Bush tax cuts).

Budget-Strapped States Avoid the Word “Taxes”

From Washington Times.com:

Faced with severe budget shortfalls after a steep economic recession, state legislatures and governors are trying to raise money without raising taxes — at least not technically.

A fee hike, an increased penalty or fine, the elimination of a tax exemption — none of these technically counts as a tax increase, as far as many state lawmakers are concerned. Fiscal conservatives argue that a tax hikes are exactly what they are, but their arguments are likely to fall on deaf ears for legislators and governors wrestling with some of the worst budget deficits since the Great Depression.

"There's a certain American antipathy to raising taxes, so even if these are tax increases, there's an incentive to call them something else," said Joseph Henchman, director of state projects at the conservative Tax Foundation. "It's a trend we always see, but it's certainly going to be one that's stronger this year."

The National Conference of State Legislatures found that 35 states and Puerto Rico are facing deficits for fiscal year 2011, despite the Obama administration's $787 billion recovery package, which pumped tens of billions of dollars into state coffers last year.

Obama Budget: Record Spending, Record Deficit

Yesterday, The president asked Congress to approve a record amount of spending on economic relief. His administration insisted that in order for the economy to recover, the government must spend more money on the relief efforts. You can find a story of the announcement from the Associated Press piece below.

Spelling out painful priorities, President Barack Obama urged Congress on Monday to quickly approve a huge new shot of spending for recession relief and job creation, part of a record $3.8 trillion budget that would boost the deficit beyond any in the nation's history while only slowly beginning to put Americans back to work.

If Congress goes along with Obama's election-year plan, the nation would still end the year with unemployment pushing double digits at 9.8 percent and this year's pool of government red ink deepening to $1.56 trillion — by the administration's accounting.

The spending blueprint for next year calls for tax cuts for workers and business and more aid for cash-starved state governments as well as the unemployed. The jobs initiative largely mirrors last year's stimulus bill, but is about one-third its size. The president is asking for nearly $300 billion for recession relief and job stimulus.

Continue reading at Yahoo! News…

Extra Money for Science in Obama’s Budget

From the NewYorkTimes.com:

Calming fears that scientific research would be hurt by the Obama administration, the budget request for the Department of Health and Human Services was $81.3 billion, up from $79.6 billion a year ago. And the National Institutes of Health saw its budget request rise by $1 billion, to $32 billion, more than was requested last year.

The proposed budget, announced on Monday, now includes $6 billion for cancer research, intended to allow the agency to start 30 new drug trials and double the number of drugs and vaccines in clinical trials by 2016.

The first priority noted by the Office of Management and Budget was to support health insurance reform by strengthening policy on the use of computerized records, financing research to compare the effectiveness of different medical treatments and creating health centers to get more care to populations that lack it, like the uninsured and American Indians.

In other science-related budget requests, the National Science Foundation would get $7.4 billion, a nearly 8 percent increase from the budget last year.

Scientists had feared that budgets would be frozen and that stimulus financing that had been directed toward science would dry up in the coming fiscal year.

Separately, the State Department, through its own budget and that of the United States Agency for International Development, pours billions of dollars into global health. That money increased nearly 9 percent in the Mr. Obama’s budget request, rising to $8.5 billion this year from $7.8 billion, according to the department’s budget summary.

101 Ways to Save Money this December

The month of December comes with holiday expenses, a looming new tax year, and high heating bills. With all of the holiday cheer, it can be easy to spend more than you can afford. Fortunately, there are literally hundreds of ways you can save money this month. To help out my readers looking to keep costs down, I have compiled the following list of my favorite 101 tips to save money in December.

Send me a message on FaceBook, or an @ Reply on Twitter if you have a tip that you do not see on my list!

1. Make a winter budget that lists all of the expenses you anticipate this month. Then, stick to your budget and refer to it for all major purchases.

2. Before you buy any expensive presents for the holidays, make sure to look online to see if you can find a cheaper price than you would at a local store. Just be sure to order with enough time for shipping!

3. Instead of throwing away aluminum cans or plastic bottles, take them to a local recycling center to get a little spare cash.

4. Make a donation to your favorite charity and keep the receipt. You may be able to deduct this amount from your taxable income for the year, which may increase your income tax refund.

5. Avoid malls! In addition to their inflated prices, I find it almost impossible to go into a mall without buying dozens of items I did not intend to purchase. Instead, do your shopping online.

6. Make your own Christmas wreath. Instead of buying an expensive one, stop by your local craft store and you can easily put together a festive wreath for under $20.

7. Bundle up. By convincing everyone in the household to wear warmer attire, you can turn down the heat and save on your energy bill.

8. Love to read books by the fire during the winter? After finishing a book, take it to a used bookstore where you can put the credit towards a new book to read.

9. If you love to put up Christmas lights but always forget to turn them off, then consider investing in a light timer. It will reduce your energy bill this year, and can turn into a long-term investment if you put up lights every December.

10. Instead of buying expensive wrapping paper you could make your own from cheap shipping paper decorated with paint and stickers.

11. Although we usually think of buying loved ones presents, Kwanzaa traditionally encourages people to give gifts that are handmade and heartfelt. Get into the spirit of Kwanzaa and make a handful of presents this year to save extra cash!

12. Go with the generic option. Brand name household items, such as soap and shampoo, are often double the price of the generic brand and usually have the exact same main ingredients.

13. If you are a big soda drinker then be sure to shop the sales. Stores often have huge discounts on soda and by stocking up when it is on sale you can save quite a bit on your grocery bills. Or just give up the habit and start drinking water or low-cost tea.

14. Book all flights and hotel reservations for holiday travels in advance. If you buy a plane ticket later in the month then you are going to pay an inflated fare.

15. Everyone is busy in December. Instead of eating out more often, try setting up a crock-pot meal that can cook while you’re away. That way you will have a fresh and affordable—not to mention delicious—meal waiting for you when you return.

16. Save on your energy bill by placing a towel at the foot of any doors with a draft.

17. Drive the speed limit! It is always a good idea to drive more cautiously in winter weather, but going the speed limit can also help improve your gas mileage.

18. Know someone with a young child? Consider giving them a coupon for a free night of babysitting as a gift this holiday season.

19. Instead of just buying pricey chicken breasts, go for the whole bird. You can remove the breasts and use the rest of the meat as well. You could even use the extra meat and bones to brew your own chicken broth.

20. Visit Starbucks often? Well, quit the habit. Granted, their holiday cups are cute and their latte’s are addictive. However, by brewing your own coffee you can save quite a bit of money.

21. You can save even more on your energy bill by letting in natural light through the windows, and turning off lights whenever you do not absolutely need them.

22. Coupons are a great way to save, but the trick is to only use them for things that you were going to buy already.

23. Take advantage of free gift-wrapping if you purchase an item in a store that offers it. Remember, every little bit you save helps!

24. Create your own Christmas decorations. In addition to making your own wreath, you could also save by gathering pinecones and making your own festive decorations.

25. Buy batteries when you see them on a good sale. You never know when you are going to need batteries so it is a good idea to purchase them in advance.

26. If you are worried about buying gifts for all of your coworkers and friends, then you might want to suggest going the “Secret Santa” route. It is cheaper, and also adds an element of mystery to the season.

27. If you receive a lot of holiday cards in the mail, then you could save by reusing them the next year. Just cut off the message and use the picture as a post card. Though make sure that you do not send it to the same person who sent it to you last year!

28. If you have Christmas or Chanukah cards from last year, and do not want to reuse them as postcards, then you can use them for seasonal gift tags.

29. Re-gift a favorite book that is in good condition. This will save you cash, and free up some room on the bookshelf. You could even write a personalized message on the inside of the cover.

30. Empty boxes or picture frames wrapped to look like presents make for cute, low-cost holiday decorations.

31. While family members may require more thought, mass producing a standard gift—like a recipe jar—for a handful of coworkers or friends can save you lots.

32. If you are not a fan of “Secret Santa”, then try a white elephant gift exchange. In addition to saving on gifts, the game can also help you save on entertainment expenses.

33. Be sure to close the fireplace flue when leaving home for long periods of time. Otherwise, your warm indoor air will go right out the chimney and your heating bill will skyrocket.

34. Make a grocery list and stick to it. It is also a good idea to always go grocery shopping on a full stomach, that way you can avoid those impulse purchases.

35. Clean out your freezer and remove any items that you do not intend to use. It takes double the energy to keep a full freezer cold, so by cleaning it out you can save on your electric bill.

36. A subscription to your favorite magazine could make for an excellent gift. Additionally, publications usually offer screaming discounts during the holidays.

37. Spinning the Chanukah dreidel is an annual tradition, but to cut costs try using candy instead of cash while betting.

38. Use the Kwanzaa colors (black, green, and red) in your house to save big on decorations. Other traditional low cost decorations include corn and straw.

39. Weather-stripping doors and windows where needed may cost a little now, but will save you money on your energy bill for years to come.

40. To avoid expensive, last minute spending, start shopping for gifts early. Then you can avoid busy stores all together later in the month.

41. Get your children involved! If you have kids then you could set aside time to do some holiday crafts with them. You can make season gifts and also enjoy extra time with your family.

42. Do all of your shopping in one trip. Instead of driving to the mall dozens of times this month and wasting gas in traffic, brainstorm on a list and make only a few trips.

43. Lots of places offer free, or cheap ice-skating during the holidays. Instead of spending tons of money to see a movie this December, you could spend the evening ice-skating.

44. If you enjoy updating your winter wardrobe every year, then you might want to sell old ones to a consignment store for spare cash. Alternatively, you could donate them to a “coats for kids” charity drive.

45. When the weather is cold, remove window air conditioner units to save on your heating bill.

46. Any plain glass hurricane or candleholder can instantly be transformed into holiday decor with some simple holiday ribbon or candy.

47. Leave your credit cards at home! If you make a list and can estimate how much money you will need for your shopping trip, then just bring enough cash with you to cover your purchase. By leaving extra money and credit cards at home you can make sure you stick to your list.

48. Give to your talent. If you enjoy painting, or singing, etc., then try coming up with a gift that uses your talent. You could paint a picture for a friend, or even record a CD for a family member.

49. If you can, try to gather your own firewood instead of buying at a local home improvement store.

50. If you enjoy renting a cabin for the holidays, start checking prices now. Get several estimates, and make a list of attendees in advance to save.

51. Providing alcohol at a holiday party is always going to be expensive. First, consider having all attendees bring their own alcohol. However if you must host, then go to BevMo or a bulk store for prices lower than you would find at the local liquor store.

52. Instead of buying a new Christmas stocking you could modify your old one with some glitter and a few ribbons.

53. Another great way to save on your heating bill is to wash your clothes in cold water, unless you have a stained item you need to use hot water to treat.

54. If you are looking for ways to reduce your grocery bill then try cutting meat out of a few meals. A few garden salads, or cucumber sandwiches will help you save money while improving your health!

55. Instead of giving your kids money to buy gifts for their friends, you can schedule a family craft day when you can make dozens of presents to give out.

56. If you are lucky enough to live near an outlet mall then be sure that you stop by! Outlet stores sell high-end overstocked items for much less than a department store.

57. Save on hiring a landscaper to shovel snow or trim hedges by enlisting a friend or neighbor to help out. You could make an exchange and help them with their own yard work too.

58. Creating gift price limits with family and friends will help everyone save money this year.

59. If you have a lot of tile in your home, try putting down a few rugs to keep your feet warm instead of turning up the heat.

60. There has never been a better time to quit smoking than the present. Tobacco taxes are always on the rise, and by making the cut you can save hundreds of dollars per year. And thousands of dollars down the road in higher health insurance and medical bills.

61. Have your children help make baked goods for gifts or entertaining. This keeps them busy, and helps get the job done quickly.

62. Turn down the thermostat when you are baking. The oven will usually heat up the house on its own.

63. If you get cold during the nights, try investing in an electric blanket instead of cranking up the heat.

64. After opening holiday presents be sure to keep all boxes, paper, and bows for next year.

65. Instead of buying a gift for each of your children’s teachers, buy in bulk and make the same gift for each teacher.

66. Buy seasonal fruits and vegetables from your local grocery store. They are usually cheaper, and you can even plan meals around them.

67. Start a carpool! Find out if any of your coworkers live in your area and put together a carpool system to save on gas.

68. If you want to reduce your cable or satellite bill then you could try watching movies and shows online, or start a Netflix account.

69. Before you buy your son or daughter a new puppy for Christmas, make sure that you can really afford it. Remember, vet bills and other pet expenses add up very quickly and can become a massive expense.

70. Everyone loves a big hot meal on a cold winter night. After you have had enough, make sure to save the leftovers for the next day’s lunch.

71. Encourage the whole family to keep the thermostat low by putting soft blankets or throws over chairs and couches in social areas.

73. Check your withholdings one more time to see if adjusting them before 2010 begins will benefit you financially.

74. Cooking is low-cost fun for the whole family. Homemade chocolates and baked goods also make great gifts!

75. Knitting your own scarves is a fun, easy project that can keep your warm all December.

76. If you frequent certain stores a lot, see what sort of discounts they offer loyal shoppers. You might be able to sign up for a frequent shopper card, or possibly even open up a credit card for additional discounts.

77. A good quality fake Christmas tree looks very close to the real thing, and if you find a good sale you might even get a fake tree for cheaper than a real one. Additionally, you can reuse the fake tree for years to come.

78. While shopping for loved ones, it is easy to get distracted and buy yourself a little present as well. Just be sure you plan for this and put it into your December budget.

79. If your gas bill seems a little high, have the company who provides it for you come out and service your furnace. Having leaks fixed, filters checked, and burners adjusted could save you a lot of money.

80. If you are already engaged, consider getting married this December! Wedding experts say you can find the best deals in the winter months since most couples prefer to get married in the summer.

81. If you are hosting for many, but do not have all the accommodations then consider renting tables, chairs and other necessities instead of buying.

82. If you need to do some yard work but do not have a working lawn mower or proper hedge trimmers then ask a neighbor if you can borrow theirs before making an expensive purchase.

83. Never make the mistake of turning your heat all the way off in especially cold weather, or you could freeze and burst your pipes. Turning the thermostat down is a much more practical solution to lowering your heating bill.

84. Cranberries and popcorn strung on some thread make cheap decorations for your home and tree during the holidays.

85. Leave the kids behind! When you go shopping try to have someone watch your children instead of taking him or her with you. It will help you stick to your list since you will not have anyone asking you to buy them extra presents.

86. If you like to read then why not sign up for a card at your local library instead of purchasing new books to read.

87. Skiing and snowboarding are fun, but expensive hobbies. If you visit the slopes often then you might want to buy a season pass instead of paying for admittance every time you go.

88. Instead of giving individual gifts to your family or friends, try giving one gift that everyone can utilize such as a board game.

89. The holiday season is all about family, and if your family likes to talk on their cell phones frequently then you might save by switching to a family plan.

90. Stock up on candles! Not only will they give your home that warm holiday glow, but they will also help you save on heating and electricity bills.

91. Love to cook? Type up some of your best recipes and give out a cookbook as gifts for friends and family.

92. Making your own Chanukah candles can save you money, and will also give a more personal touch to the celebration.

93. Practice layering. By wearing tank tops under long-sleeved shirts you can keep warm without turning up the heat.

94. Instead of spending money on regular holiday cards, try going the e-card route. You will save on both materials and postage.

95. Use holiday lights made out of LEDs. They use less electricity and will also last much longer than regular lights.

96. Make your own snacks. Instead of buying expensive snacks for yourself, or your child’s lunch box, try making your own. All you need is a bag of granola, some raisins, and a couple different types of nuts and you have an instant trail mix.

97. For a great low cost holiday party, try hosting a seasonal movie night. You can easily rent a movie and buy a few frozen pizzas for only a few bucks.

98. Make your own Christmas ornaments by filling or painting clear glass bulbs, wood shapes, or pinecones.

99. Save your receipts! Odds are you will not use every single decoration and present that you purchase. By keeping your receipts somewhere safe you can make returns without any hassle.

100. On December 26^th stores will put everything related to Christmas on discount. Take advantage by purchasing supplies for next year in advance. You can also use some items, such as holiday colored zip lock bags throughout the year.

101. Visit your tax attorney before the years end and be sure you take advantage of every credit and deduction available to you before the New Year begins.

Food For Thought on Junk Food Taxes

From the LA Times.com

People love to talk, think, read and write about food. Ditto taxes. Put those two topics together, and you’re bound to get a dynamic conversation.

And so it is with the idea of a junk food tax, described in Sunday’s paper as a possible way to discourage people from eating unhealthful foods. Though scientific studies and real-world data suggest they wouldn’t be terribly effective at modifying people’s behavior, public opinion polls indicate that support for the idea is growing.

Here’s a sampling of some of the more thoughtful comments we’ve received about the story:

Peter Ford, a teacher in Inglewood, objected that a junk food tax would do plenty of harm and very little (if any) good:

“As a teacher in an urban school this tax would impact the people you're attempting to help; few of my students' parents shop at Whole Foods or Trader Joe's, and combining a tax on those things they eat too much plus our petroleum prices (and LAUSD looking to increase property taxes to pay for their construction bonds) and you make life more difficult for the people you allege you're trying to help.

People changing eating habits is a personal challenge that requires deep, intimate investment into the culture and habits of families and individuals; it's very difficult for any outside/government entity to impact that successfully.”

Beverly Smith, an educator in Calgary, Canada, noted that this problem will remain unsolved as long as healthful foods – like fruits, vegetables and lean meats – cost more than their calorie-laden counterparts:

“To tax those who have to eat cheap and fast is like hitting someone with crutches. First we must get cost of the good food down.”

Gregory Lites, who owns an entertainment company in Westwood, thought it was wrong to judge the effectiveness of junk food taxes based solely on whether they discouraged people from eating fattening foods:

“Raising taxes on soda and junk food across the board to help decrease obesity should be a secondary goal. The primary goal and the premise behind the tax hike should be that those that eat unhealthy (obesity) should contribute more towards health care than those that eat healthy. The revenue generated should therefore go directly to health care reform and/or national healthcare.”

For Richard Platt, a retired Army officer in Universal City, Texas, a junk food tax is unnecessarily complicated. In his view, it’s no mystery why so many Americans are overweight, or what to do about it:

“This is nonsense and requires a skill below a 4th grade course in mathematics. The solution is: Eat food low in calories and burn more calories than you consume and you will not gain weight. Or, in a more simple vernacular . . . eat less and exercise more and you will not gain weight. You should not interject the intrusive, gluttonous government into every private and personal decision.”

Wash. Gov Oks Tax Cut For Newspapers

From the Seattle Times.com:

Gov. Chris Gregoire has approved a tax break for the state's troubled newspaper industry.

The new law gives newspaper printers and publishers a 40 percent cut in the state's main business tax. The discounted rate mirrors breaks given in years past to the Boeing Co. and the timber industry.

Newspapers across the country have resorted to layoffs and other cost-cutting moves to deal with a wounded business model and a recession-fueled drop in advertising.

The Seattle Post-Intelligencer printed its final edition earlier this year and was converted to an Internet-only publication with a much-reduced staff.