Latest Family Financial Articles

Family Funds - Is Having Children Going Out of Fashion?

Sat, 07 Nov 2009 19:07:04 -0600

As we gradually move out of recessionary times, the need to save and to get the most from our savings is at the forefront of every parent's mind. While the simple answer for decent returns is to stop spending and to deposit a good amount of cash in a fixed rate account, this is easier said than done when plans for a family are still being thought about - and have been the subject of discussion since before the credit crunched.

Yet, while it is particularly difficult to predict when the best financial time to have children will occur, recent research from Irish parenting advice website, RollerCoaster.ie, is showing that some mothers may now be less enthusiastic about the prospect of having children because of the financial implications involved.

In results from a RollerCoaster.ie survey published in September, 78 percent of parents said they would hesitate to expand their families because of the increased costs involved. More than 50 percent of mothers asked admitted that it is not currently worth their while to work - because of costs such as those for childcare - and they would be better off if they were claiming social welfare instead.

The survey comes before child benefit payments are set to be either cut, taxed or means tested in the near future as part of the upcoming Budget. Yet the research does seem to have a definite focus on families that already have a number of children, and doesn't give much insight into whether prospective first-time parents are set to change their family plans. I don't hesitate to add that I doubt many adults who had plans to start a family around the time of the credit crunch are still set on putting it off - even if they did so a year ago.

Research in the UK signifies, at least, that it is not money itself which is of most concern to young mothers. In a survey by WorkingMums.co.uk, a 79 percent majority of mums pointed out that flexibility in work was the top priority during the recession - while more than half (54 percent) admitted that they would take a lower paid job for more flexible hours. One thing that is consistent in both sets of research, however, is that as the economy looks to improve more parents are eager to spend more time at home with their children - and employers are certain to need to adapt to this.

Benefits of Discount Dental Plans; Smile Sweetly!

Tue, 27 Oct 2009 01:37:44 -0500

Discount dental plans are fast catching up the hype which started when they emerged in the arena of the dental world. They are basically designed for individuals, families and groups looking to save money on their dental care needs. The article is about some of the benefits of discount dental plans.

In most of the discount dental plans, the participating dental care providers usually agrees to accept a discounted fee from plan members as payment-in-full for services performed. As a plan member, you simply have to show your membership card when visiting any participating plan provider and save on a lot money immediately.

Joining a discount dental plan will allow you to save money on quality dental care. Protect and preserve your family’s smile and overall health with one of our popular family plans. Some of the many benefits of our discount dental plans include:

· Savings ranging from 10% to 60% on most dental procedures

· Choose from thousands of participating dentists in more than many combined regional and national dental networks, especially if it’s a large dental network like AETNA.

· Immediate online enrollment and quick plan activation

· Easy-to-use search tools and plan comparison charts

· Qualified Customer Service Representatives to assist you which are mostly provided 24/7 service.

· No unnecessary paperwork hassles – everything is taken care about by them. You have to take note of the emergency number.

· Discounts on dental specialties available with most plans

· No health restrictions

Once you’ve joined the discount dental plans that right for you, you can start saving on quality dental care right away. Most plans activate within two business days after enrollment. Most sites which promote dental discount plans also have dentist searches to find a participating dental care provider in your area and make an appointment. It is essential to ensure and mention the dental plan listed on your membership card when contacting the participating provider. Simply present your membership card when you arrive to your appointment to ensure that you are charged discounted fees according to your dental plan. Payment for services performed is due at the time of service, and there are no paperwork hassles or tedious claim forms to worry about. Saving money on your smile has never been so easy!

Unlike dental insurance, dental plans provide plan holders with low-cost dental care for all dental work, including cosmetic procedures. There are now many dental plans available and, as with dental insurance, the benefits will vary according to the price you are willing to pay.

The advantages of discount dental plans over dental insurance are:

· There are no deductibles, for each and every dental task, your receive a discount.

· The monthly premiums for discount dental plans are mostly less than dental insurance premiums, which is again a major saving.

· There is no limit to the amount you can use your dental plan in any given period of time, unlike dental insurance. No matter how many dental visits you make, you are liable for discounts.

· Dental plans are not dental insurance and there is no waiting period. Hence you can make use of a dental care plan as soon as you receive your card.

Choose the right discount dental plan for yourself quickly. For queries, call us on 866-367-3459 and we will guide you to the best discount dental plans.

Where Your Energy Spend Goes

Fri, 16 Oct 2009 02:57:12 -0500

Have you ever wondered how suppliers decide what price to charge for the energy you use? Well, there are a variety of factors at play in how much you're charged per kWh.

The general factors in the mix are as follows:

Wholesale supply cost of purchasing the energy

This is the worldwide price of oil, coal and gas. This makes up the lion's share of your bill.

Distribution costs

This includes transport of energy, administration costs, overheads and so on.

Profit ambitions
The companies want to make a bit of money. As you might expect.

Prices set by competitors
Competition. Research by Ofgem says that almost all customers cite price as the main reason they switch supplier, and therefore suppliers know that less means more.

Over the last few years, increases in the cost of fuel worldwide, wholesale energy and environmental compliance have been driving forces in setting prices. As a result the average UK household has seen its bill more than double since 2004 (Ofgem, Household Energy Bills Explained, 2008).

The Breakdown

Now it's time for a chart with pretty colours. This shows the breakdown of gas and electricity bills in 2009*:

Typical household spend on Energy 2009

To give you a further impression of this breakdown, the average quarterly gas bill is £800, and for electricity it's £445**.

As mentioned above, wholesale supply cost is the big one here, and it makes up 74% of the gas and 69% of the electricity spend. These costs are on the rise due to the UK's increasing dependence on international gas markets. The UK is now a net importer of gas, whereas historically it has been more reliant on North Sea reserves. Though these still have a significant part to play, the UK also now pipes gas over from Norway, has developed further connections with Europe, and imports LNG (Liquefied Natural Gas) via tankers.

Distribution makes up 15% of each. It's worth mentioning that the government's environmental commitment plays a part here, as investing to renew the country's energy infrastructure and connecting more renewables is further pushing up network charges.

And then there's the cost of environmental programmes themselves. Considering they didn't even factor into bills ten years ago, they make up a small yet significant amount now - 8% for electricity and 3% for gas.

The main programmes are as follows:

* EU Emissions Trading Scheme is adding £24 per year to the average customer's electricity bill
* CERT (Carbon Emissions Reduction Target) is adding £45 annually to the average customer's combined gas and electricity bill
* CESP (Community Energy Saving Programme) is adding £3 a year to the average customer's combined gas and electricity bill
* The Renewables Obligation (RO) adds around £12 a year to the average customer's electricity bill

In addition to these costs, there's transmission (2% for gas, 3% for electricity), meter provision (2% and 1%), and a standard VAT charge of 5% for each.

*Source: Ofgem, Household Energy Bills Explained, 2009

**Based on average annual consumption figures of 20,5000 kWh for gas and 3,300 kWh for electricity. Excludes prompt payment discounts.

Understanding Your Energy Bill

Fri, 16 Oct 2009 02:33:53 -0500

Puzzled by your energy bill? You're not alone... Energy bills are notoriously difficult to understand, and many customers struggle to see how they have been charged for their usage.

It's sometimes difficult to ascertain when and where you are using most energy. This in turn makes it more difficult to reduce consumption, and also to find a cheaper deal.

In order to help you to understand your energy bill, we've compiled this guide in which we will address each part of the bill and explain in simple terms what each section means. To view, download or print an example of the bill follow this link.

1. Account Number: This is your unique customer number which you will need to quote if you contact your supplier.

2. Bill Summary: Your bill summary shows charges, discounts and VAT over the billing period.

3. Total Charges: This is the amount you are required to pay.

4. Date and Package Details: This is the date your bill was issued, and also the name of your tariff.

5. Contact Information: Suppliers must provide this information in case you need to contact them about your account.

6. Electricity Supplier Number: Your electricity supply number (or MPAN) is a unique number assigned to your meter. This is usually located on the front of your bill and can also be found on the meter itself.

7. Message Panel: The message panel features pricing information, special offers and announcements.

8. Account Details: This section shows details of your recent payments and dates they were made.

9. Bill Breakdown: This is probably the most important part of your bill as it shows how you've been charged. This includes kWhs used, standing charges, discounts and VAT. Suppliers must show the period you are being billed for, your meter readings at the start and end of the period, and the unit prices you are being charged.
Note that the meter readings are followed by an ‘A' (Actual Reading), ‘E' (Estimated Reading) or ‘C' (Customer reading). If your readings are estimated, it is likely that your usage has not been calculated correctly. It is therefore important to provide meter readings regularly, such as each quarter.
It's also useful to know that if you are charged at both higher and lower unit rates for your energy (for example, you may be charged 5 pence per kWh for the first 1000 kWh used, and 3 pence per kWh thereafter), this is shown on a pro-rata basis. So using this example, if you receive your bills on a quarterly basis, you will be charged the higher rate for the first 250 kWh used during that quarter. This is so that the higher unit rate is spread equally across the year.

10. Total Charges: Your total charges are shown again here (see 3).

11. Meter Point Reference Number: This is your MPRN, which is a unique number assigned to your gas meter. It's found on the meter itself, and also on your gas bill.

12. In Case of Emergency: Suppliers must provide details of who to call in case of electricity or gas emergencies, such as a loss of supply.

13. Minicom Services: These are details for those who are hard of hearing.

14. Calculating your Gas Charge: This section explains how your gas charge has been calculated.

15. Codes of Practice/Priority Service: This section advises on your supplier's additional services - including customer complaints, special needs and prepayments.

16. Customer Service: This section should advise you what to do if you are unhappy with the service you are receiving, or if you have any unresolved issues. Your supplier should also include contact details for the energy ombudsman.

17. Consumption Graph: This section shows your present energy consumption, compared to the same period last year. You can use this information to monitor and reduce how much energy you use, thereby saving you money.

Always remember to compare gas & electricity prices before choosing a provider.

'Tis the Season

Sun, 04 Oct 2009 21:09:25 -0500

With the busy world we live in it can be extremely difficult to find the time to go holiday shopping and with the way that the our extended families keep extending, the time it takes to make sure you remembered everyone can be daunting not to mention extremely expensive! However, with a little thought and a whole lot of planning you can easily buy for everyone you need quickly, efficiently and cost effectively.

The first step you take is to make a complete list and group it into several sub lists. For example, you can list it in age group, which can make group gift buying easier. You can list in relationship groups. Family member's in one group, friends in another and business associates in a final group. After that, you could even sub group into age. If you have a well-defined list of people you wish to buy for it will help you when decide on what to buy.

Once you have your list together utilize the Internet for gift ideas if you haven't put "feelers" out already. Using the Internet is one of the easiest ways to put a list together and honestly, it's also the easiest way to complete your shopping. However, for this guide, I'm assuming you love the hustle and bustle of retail in December! Se the Internet and decide on the item or items you would like to purchase. Write down each item and the store you would like to purchase the gift at. This will help you group your list by store once you have reached shopping mode.

On a cost saving thought, if you are buying for children often a group gift is a great idea. However, this is where keeping a list of age groups will help. You don't want to buy a group gift for age group one to seven. You might want to forgo buying a group gift for that one year old and possible opt for baby keepsake gifts instead. It's not likely that one year old would appreciate a video game anyway and we all know that your six year old would not appreciate a rattle at all!

Once you have your list together and you've picked out all of your gifts you must refrain from straying from your list. If you do that you'll likely end up more frustrated and with less money in your pocket at the end of the season. The biggest pit fall to holiday spending is impulse buying. This is also where most people end up returning gifts because it was purchased hastily and without thought.

A thoughtful gift idea will go a lot further then any impulse buy and you'll have a more enjoyable and festive time during the buying process. Also, don't forgot to have fun during the giving process. Many people focus so hard on buying that they never enjoy watching those special people open their gifts. This is often as hectic as the buying process. Take it slow and enjoy the season!

Ten Important Lessons From A Recession

Thu, 01 Oct 2009 21:35:05 -0500

The high unemployment rate brings back memories of my early years growing up in poverty. Unemployment always brought suffering to our family. I decided to write down the top ten lessons that I learned from my years in poverty:

1. Crisis Management: Don't panic during a crisis. Victims of generational poverty are accustomed to living in constant crisis. Some of our nation's largest corporations could have learned a few good lessons from poverty victims on how to SURVIVE this economic crisis.

2. Creativity: Get creative with problem solving. Sir Ken Robinson makes the point that without creativity we could never have an original idea. Choices are easy when you can borrow all the money you'll ever need. Take away the option of money and you'll be amazed at how creative you'll get. For poverty victims, being creative is a matter of survival.

3. Don't Get Above Your Raisin': This is the title to a song by Lester Flatt and Earl Scruggs. The lyrics in part are, "just a little high headed. That's plain to see. Don't get above your raisin. Stay down to earth with me." The point is-be genuine.

4. Pride goes before the fall: Hubris adds no value to personal development. It's okay to dream big. In fact, it's necessary. But don't pretend to be someone you're not, and don't promise more than you can deliver.

5. Whenever You Do a Thing, Act as if the World were watching: This famous quote by Thomas Jefferson is rarely quoted these days. This is another way of saying "make things right before they go wrong."

6. Be an Optimist: If there is one lesson that I learned while working my way out of poverty, it is that optimism will trump any hardship.

7. Put Things in Perspective: Don't sweat the little things- keep your focus on what's important.

8. Take Responsibility: Be a victor not a victim.

9. Never give up: There's no better training for fighting uphill battles than living in the pit of poverty.

10. It's not about the money: Love & relationships are far more important.

Tips On Trimming Your Insurance Premiums

Tue, 29 Sep 2009 22:36:09 -0500

Insurance is an essential element for all-round financial fitness, but nobody wants to spend more than is necessary on it. Luckily you can trim premiums quickly and easily by shopping around for better deals online - without any compromise on cover!

Get into the home zone

Don't readily accept your provider's renewal quote for your home insurance when there could be better deals available. If you don't already have a combined buildings and contents policy, shop around using an online comparison site for one, as many insurance providers offer a deep discount if you take both.

With buildings insurance, you only need to be insured for the rebuild cost of your property and not its market value. This amount is usually on your valuation or mortgage documents, but if you need an update the Association of British Insurers (ABI) has an online rebuild cost calculator.

And remember to never underinsure your contents as many insurance providers will not pay out a full claim if you are not properly covered for your total contents.

Motor ahead

Car cover is one of the easiest of all insurances to switch, and you can do it quick and easily online, including getting exclusive quotes that are not available elsewhere. You could save a significant sum in a matter of minutes and get a policy that meets your exact requirements.

One top tip is to look at fully comprehensive car cover as it is no longer always more expensive than third party. Fitting a car alarm or parking in your garage is another tip that could also help reduce premiums.

Cheaper life cover

If you have financial dependants don't be tempted to cut your life insurance just because money is tight. If you cancel a policy now, and then take a new one five years down the line for example, you may not get the same terms - premiums will be based on you being older and could be more expensive.

But it's easy enough to save money on life cover by quickly searching for a new deal that matches your current circumstances. And remember that losing a few pounds in weight or stopping smoking can make a big difference to your premiums - a double bonus of getting fit and saving money.

Assess all areas

Don't forget to take a look at all your other insurance policies. Travel insurance, for instance, can be significantly cheaper if bought online instead of through a high-street travel agents. And if you have an annual travel insurance policy remember not to renew it automatically - wait until just before you next go abroad or you will end up paying for cover during months when you are staying at home.

Think carefully before cutting any cover completely. If the reason you initially took out the insurance still exists, try to find a way to keep it in place. Either adapt the amount you are covered for (as long as you're aware of the potential consequences of doing this), or better yet, search online to find the same level of cover for less. But with the cheapest premiums, always have a good read through the policy details to ensure the cover is suitable for you.