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If you missed NBC’s Today Show – Money 911 segment this morning, make sure to watch it now. This week we discussed how to take advantage of cell phone loyalty programs, whether to use extra money to pay of student loans or put towards a home, and what to do about collection agencies harassing you about your debt. Hopefully our answers helped you this week. If you have a question you would like answered on Money 911, go HERE to submit it!

Live Rich,

David Bach

Question from Deena in Jacksonville, NC:
I am an active duty military spouse, currently a stay at home mom, but and I want to go back to school to become an Ultrasound Technician. I know my full tuition for a degree in that field will cost about $10,000. I want to take advantage of any free money I can get towards tuition, what are some grants/scholarships I should apply for?

Sharon’s answer:
First, make sure you don’t overpay for your degree. Choosing the right school is the first step. You want to attend the most affordable, accredited program in your area. Check to see if your local community college offers an ultrasound technician program — it may be much cheaper that a private institution. Also verify that not only that the college is accredited, but also the specific ultrasound technician program.

In terms of finding free money, here are a few steps to take right now:

1. File the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov.  You might be able to qualify for the Federal Pell Grant. The maximum award for the 2011-2012 school year was $5,500.

2. Look into post-9/11 GI Bill education benefits, which provides tuition, fees, as well as books and supplies for military spouses. Your husband’s unused benefits may be transferable to you. Find out more information at www.gibill.va.gov or www.military.com.

3. Look into the Military Spouse Career Advancement Account program (known as “MyCAA”.) This program offers a maximum benefit of $4,000 ($2,000 a year) in financial assistance. Again, more info is available at www.military.com.

4. Use Military Scholarship Finder at www.military.com to find many scholarships specifically for military spouses or scholarships that you may qualify for based on your field of study or other attributes. Go to www.fastweb.com or www.scholarshipamerica.org.

You’ll find many scholarships for military spouses, including $1,000 to $5,000 scholarships from Thanks USA, www.thanksusa.org, a non-profit tax exempt charitable organization focused on thanking American troops and up to $1,000 from the Joanne Holbrook Patton Military Spouse Scholarship through the National Military Family Association, www.nmfa.org.

Hope this can help you or someone you know and thanks Sharon for the great answer!

Live Rich,

David Bach

Grandma Rose, was the head buyer for wigs at Gimbel’s (back when Gimbel’s was one of America’s leading department stores), she was a working woman at a time when most women weren’t. My grandparents were never wealthy; in fact, they never even owned their own home. Nonetheless, my grandmother decided once and for all, at a very early age that she wanted to be an investor. 

Acting on her own, she took her earnings and put as much as she could afford into stocks and bonds. Over time, and without any advice from her husband (my Grandpa), she built up a high-quality portfolio. When she passed away at the age of 86, her investments were worth close to $1 million—this, from a woman whose first job paid only $10 a week!

There were many things my Grandma Bach taught me, but for our purposes, there’s one lesson that deserves to be singled out:

You don’t have to be rich to be an investor!

Of course, by becoming an investor, if you do it wisely like my Grandma Bach, you will almost certainly get rich!

She started teaching me this very lesson at the early age of seven when she helped me make my first stock purchase. Whenever I spent time with my grandmother, she would bring me to lunch at my favorite restaurant in the whole world, McDonalds. One day, at her prompting, instead of asking for ketchup for my fries when I marched up to the counter, I looked at the woman on the other side and asked, “Is this company public?”

The counter lady looked back at me as if I were nuts, then called over the manager. “Yes,” he told me, “McDonald’s is a publicly traded company.”  After a little persuasion from Grandma Bach (and a lot of vacuuming and dishwashing), I saved my allowance for three months and managed to accumulate enough money to buy three shares of McDonald’s Inc.

Since then McDonald’s stock has gone up in value and split so many times that those original three shares of mine have multiplied into close to 200 shares. Even more, I have been an investor ever since and have in turn taught my son Jack the same lesson.

Grandma Bach’s decision to become an investor and educate herself financially changed the destiny of my family for generations. She taught my father, my sister, and me how to look out for investment opportunities. Following her practice of keeping alert to the opportunities that were all around us, we would each become millionaires in our own right (my sister and I while we were still in our thirties).

She has been my inspiration to teach and empower women to take control of their finances and write my 9 New York Times bestselling books that have helped millions of people around the world.

Wishing you a Happy Mother's Day, Mom - I Love You!

What was the best piece of advice or lesson your mom or grandma ever gave you?

Share your story below or on my Facebook page at www.facebook.com/davidbach.

Also, tell YOUR mother or Grandmother the advice they gave you that has impacted you the most and how grateful you are to have them in your life. It’s a gift that costs NOTHING but will mean everything to them this Sunday.

Can’t wait to read your comments. And for all the mothers in my community – have a VERY Happy Mother’s Day!

Live Rich,

David Bach

If you missed NBC’s Today Show –  Money 911 this morning make sure to watch the segment now! Today we answered questions on whether or not to take your Social Security, whether someone is paying too high of a fee for their investments,  and where to find grants and scholarships if you are an active duty military spouse trying to go back to school.

After Money 911, I stuck around for a Live Web Chat on Today.com, where I answered your Retirement Questions – check out the archive HERE . Lots of great questions and answers you won’t want to miss this info!

Live Rich,

David Bach

The money conversation with your kids is so important, and luckily technology has made it easier for us parents to raise a money savvy kid. If you are an active member of my FinishRich Community then you know that I am involved with a company called Tykoon. Tykoon has created an unbelievable online platform that provides families an innovative way to engage children to become more fiscally responsible and the best part is that it is a platform that is totally customizable to your family’s rules and values and it’s FREE.

So how does Tykoon work? Here’s the breakdown—(It’s awesome!)

Teach your kids the meaning of EARNING: You can assign your kids various tasks including recurring chores such as cleaning their room, or one-time jobs and also daily responsibilities such as their homework. You choose how to assign rewards based on your own family practices and values. These rewards can be cash or non-cash such as stay up late time.

Tykoon’s parent dashboard allows you to view and approve all your kid’s tasks in a single place and on any device. You can also print a weekly calendar for your fridge or child’s bedroom, or access tasks on the go with their mobile app.

Teach your kids the value of SAVING: Learning to save from an early age can instill balanced, long-term financial practices that extend into adulthood. Tykoon allocates earnings to the savings category easily and helps establish a mind set for savings and setting and achieving goals.  In addition to putting away some of their earnings, your kids can also set up and save for a big or long-term goal. This can be an item that they want to purchase, a family vacation or trip or a savings goal for college or education.

Teach your kids the importance of GIVING: Through Tykoon, kids discover and learn about dozens of age appropriate charities and also share these interests with their family and friends. Tykoon reviews every charity before making it available to your children and they give you controls on what categories your kids can access. It’s a simple start that can lead to a lifetime of community involvement and giving back.

All transactions are secure through the use of Network for Good (one of Tykoon’s partner). They will collect your credit card information, make the donation to the non-profit in your name, and send you a tax-deductible receipt. It’s simple, secure and carries all the benefits of charitable giving for your family.

Teach your kids how SPEND and buy real goods with real money: When you use Tykoon your kids can purchase their favorite products which are delivered right to your door through part Amazon.com (making all transactions secure). The best part is that all products they can purchase are kid appropriate and Tykoon reviews every product to make sure it’s kid safe. Even better, you can control the product categories that your kids can see. Don’t want video games? No problem. The choice is yours.

If you already have an Amazon account, you can seamlessly checkout with through Tykoon with your Amazon ID or Amazon prime account. When purchasing through Tykoon, kids can’t move money and parents make the final decision on any item that has been marked for purchase or donation by their kids. Meaning you can rest assure that your children will not be spending YOUR hard earned money without you knowing.  

I am so excited about Tykoon and whether you use this system or not, I hope this post has inspired you to take action to spread financial literacy to the children in your life!

To learn more about Tykoon check out their website (www.tykoon.com) and sign up today.  

Live Rich,

David Bach

If you missed me this morning on NBC’s TODAY show – Money 911 make sure to watch the segment now, we had a great time as always, with lots of laughs and tons of information. This week we helped viewers with what do to help pay for college loans, gave advice on what to do with a home you’re growing out of, and how to distribute a mutual fund to help pay for your child’s college education.

Live Rich,

David Bach

In this week’s Today.com video I explain to a viewer why it’s a good idea to have separate accounts for emergencies, buying and repairing your cars, and other investment purposes.

Check out my 6 tips for setting up emergency accounts:

1)    KEEP YOUR EMERGENCY ACCOUNT SEPARATE FROM OTHER ACCOUNTS. This means you want to put your emergency cash cushion of at least three months’ of expenses into an account that is NOT your regular checking account, but one set up specifically for this purpose.  Once you set an account up I suggest you make your emergency fund automatic. That means every single time your paycheck is deposited, your checking account is set up to automatically sweep money into a separate savings account you’ve set up for your rainy-day fund.  I suggest you start by moving 5% of each paycheck to your emergency account until you reach the goal you set for yourself.

2)    DO NOT HAVE A CHECKING ACCOUNT OR ATM CARD ATTACHED TO THIS ACCOUNT. Why do I say this? If you don’t have an ATM card or a checking account attached to your money you will be more likely to leave the money alone, so you actually use it for what it’s meant for—an emergency. What’s a real emergency? It’s not just having to buy a new dress for that special party. Or finding an amazing set of wheels for your car at a once-in-a-lifetime price. A real emergency is something that threatens your survival, not just your desire to be comfortable. So unless your family is about to go hungry or be thrown out into the street, you shouldn’t be dipping into your emergency fund.

3)    SET UP SEPARATE ACCOUNTS FOR OTHER INVESTMENTS. If you are trying to save for a large purchase like a car or household appliances make sure you save for these in separate accounts, not your rainy-day fund.

4)    USE A MONEY MARKET ACCOUNT FOR SAVING YOUR MONEY. Once you’ve made the commitment to funding a rainy-day account, the next decision you have to make is where to park it. I used to emphasize the importance of finding a place that would give you a reasonable return on your money. But these days, I’d focus less on the kind of return you’re getting and more on making sure your emergency money is safe and accessible. 

A money market account is one of the simplest, most secure choices for someone who wants to put aside cash and earn a decent return. When you deposit in a money market, you’re actually buying shares in a mutual fund that invests in short-term government bonds and highly rated corporate bonds—the safest investments around.

5)    SEARCH FOR MONEY MARKET ACCOUNTS AT BANKRATE.COM. Today there are thousands of money market accounts out there, and the cost and quality vary widely. So just like you’d shop around for a car, shop around for a money market rate. Ask questions and don’t be afraid to play competitors against each other.

6)    CHOOSE A REPUTABLE BANK WITH FDIC INSURANCE ON THE ACCOUNT. If you find a bank with a rate that you’re interested in. Check to see if it displays the official sign of the Federal Deposit Insurance Corporation. As its name indicates, the job of the FDIC is to insure deposits—and thus allow banks to tell nervous customers that even if the bank fails, their money (or at least a good chunk of it) will be safe.  So make sure your money is safe by checking to make sure the bank is FDIC approved.

BONUS TIP: I didn’t mention this in the video but you can also let the Government help you save for a rainy day. The U.S. government has made it really easy to buy bonds online, and if you’re looking for a safe investment that’s guaranteed by the full faith and credit of the U.S. government, consider U.S. savings bonds. TreasuryDirect.gov is a terrific Web site that lets you quickly and easily invest as little as $25 a month in two types of U.S. savings bonds: I-Bonds and EE Bonds.

The fact is that without a cash cushion, we are only one job loss or one emergency medical expense away from disaster. I hope my tips help you with your emergency account. And if you do not have one yet, I urge you to set one up today. As my Grandma Rose Bach used to tell me, “David, when the going gets tough, the tough have cash.” Cash is king. Cash is security.

Live Rich,

David Bach

I am getting asked these questions because people are finally realizing that financial illiteracy among kids is becoming an epidemic that we can no longer ignore. But with any problem, we need to take ACTION to find a solution.

Now is the time to break this cycle and make the decision to start talking to your children about money. This first conversation can potentially change the future of your family for generations to come.  You just need to get the ball rolling towards raising a money savvy kid. So how can you do this? Well, I don’t have an entire book for you—just yet, but I do have a solution to help you take action—today.

I have recently been working with a new company called Tykoon, that has created an unbelievable online platform that provides families an innovative way to engage children to become more fiscally responsible. The site enables kids to EARN, SAVE, GIVE and SPEND real money. The online platform is customizable to each individual family’s financial values and the virtual environment is safe, secure and private. Kids can earn money through jobs, chores, and gifts; save based on personal and family goals; and through partnerships with Amazon.com and charity affiliates, kids can shop online and donate to charities in a safe environment with controls set by parents.

Just yesterday I was invited to speak on an expert panel for Tykoon’s Launch and Blogger Event, to discuss the importance of teaching kids financial literacy and how Tykoon can act as a platform to help promote financial education in everyday life. Check out some of the pictures from the event, and make sure to sign up for Tykoon—it’s FREE, it’s fun and it WILL help you start discussing the value of money with the kids in your life.

For more information, please visit www.tykoon.com and learn how Tykoon is creating a money smart world one kid OR TYKOON at a time. Also, make sure to like them on Facebook – www.facebook.com/TykoonNation.

Doug Lebda, Co-Founder & Chairman, Myself, and Mark Bruinooge, Co-founder & CEO

Mark and I having some fun before the event.

One of Tykoon's awesome slogans

 

 

Mark starting the presentation

 

 

Myself, Stacey Tisdale and Doug Lebda on the expert panel

 

 

Myself and Stacey on the panel

Mark teaching the press about Tykoon

If you missed me this morning on NBC’s TODAY show, Money 911 segment make sure to watch it now. We answered questions about tax liens, what to do if your mortgage is upside down, and paying taxes when it comes to cashing in an inherited IRA. Take a minute to check out the segment, our answers could help you or someone close to you!

Live Rich,
David Bach

This week on Today.com, I helped a Facebook fan with her question on how to save on groceries. Check out my 6 tips for saving money at the grocery store and watch the video above.

Our Facebook friend Michelle asks: How do you save the most money on groceries when you live in a small town and only one grocery store? The next town with more grocery stores is about a half an hour away.

My advice:

1)      Organize a trip and carpool to the grocery store(s) that are a half an hour away with friends in your area – make sure you go to the best place, with the best prices.  

2)      Look into “big box” locations like, Costco, Wal-Mart or Kmart to see what prices they have available.

3)      Shop Online for foods and other household goods if you can. Here you can save money from the comfort of your home AND save the gas money.

4)      Look to see if the online grocery retailers available in your area offer free shipping. Many times if you spend a certain amount on your groceries or household goods they will have this as an option—if they do, try to take advantage of it! (Just make sure you don’t over spend to take advantage of the shipping.)

5)      Do your research and look for coupons online.  Some sites out there right now are: CouponMom.com, DealSeekingMom.com, BeFrugal.com.

6)      Check out the grocery store’s website for their current deals and sales.

I hope these quick tips help! Now I want to know, what’s the best tip YOU have when it comes to saving on groceries?

Live Rich,

David Bach