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Fun and Frugal Ways to Observe Memorial Day

Myscha Theriault — Mon, 20 May 2013 10:36:31 +0000

Memorial Day is the official American kick-off event for summer, and a time when we stop to remember lost loved ones and the sacrifices made by members of the armed service over our nation's many years of history. Here's how to save on everything from food and fun to more formal remembrance activities. (See also: Don't Buy Memories, Make Them)

Food

Most of us can’t imagine observing Memorial Day without some sort of feast. While hosting an event like this does require an outlay of cash, the fact that these gatherings are expected to be extremely casual provides you with a fair bit of financial wiggle room. Here are a few ideas for chowing down on the cheap.

Barbecues

This is frequently the chosen menu focus, but backyard barbecues can be more affordable than you might think. Potato salad and baked beans make inexpensive side dishes, and even full-on carnivores have resources at their disposable to save money on meat. Grocery store sales, veggie combo skewers, and inexpensive selections like drumsticks can come to the rescue of a determined penny pincher.

Picnics

If you choose to spend the day away from home, then you may be looking for picnic ideas instead. Packing a basket of your favorite fried chicken and homemade whoopie pies for a crowd is one option, but those observing the holiday with a new boo might prefer to enjoy a romantic picnic of wine, cheese, croissants, and fruit.

Tailgating

Some consider it unpatriotic not to participate in at least one tailgating event during the year. Try some of these tailgating menu ideas to accommodate vegans and vegetarians, or toss some riblets and corn on the grill for an inexpensive carnivorous experience. Portable grills are the name of the game here, if you want things to be as fuss-free as possible. Think premade kabobs or hot dogs in order to enjoy yourself and any guests who happen to stop by.

Fun

While the intention behind the holiday is to honor lost loved ones and to reflect on the sacrifices made by those lost while serving the nation, the fact is that most families work a bit of fun into the weekend as well.

Parades

If you live in a small town, chances are you can walk to the event. If not, your only cost to attend is gas or a subway ticket. As I covered in the article relating to family fun in Aroostook County, small towns and rural destinations often have limited access to cultural events. So if you have a chance to go see a free parade while resting on the grass with a blanket and snacks, why not?

Decorations

To keep the patriotic color scheme to the forefront, try using a red wheelbarrow or red children’s wagon as the ice bucket for your picnic. You need only to add your chosen beer or other bottled beverage along with perhaps a stick flag or two for a finished — and functional — Memorial Day yard decoration. Small to medium red galvanized buckets are a rustic way to house flatware, cookies, and other food goodies while you feast with your family.

When you finish eating, make a group activity out of planting affordable flowers that you purchase in flats into the buckets to take with you when visiting the cemetery. Other basic ideas include an abundance of small paper flags on sticks, along with red and white streamers and perhaps a few window clings. And of course, there’s always the classic yellow ribbon tied on trees and porch posts.

Crafts

Rather than purchase a bunch of decorations for the big weekend, why not make decorations as a family? These paper poppies are an international symbol of remembrance and the red blends in with our standard patriotic color selection of red, white, and blue. This preschool poppy craft is designed more for artists with little hands and recycles home materials creatively.

One of the coolest Memorial Day craft ideas I found was this hand and footprint flag from Tip Junkie. It uses paint-covered hands and feet to create a flag on white paper that can be placed into a large frame once it dries. It struck me as one of those rare activities that parents get to do with their kids that is actually frame worthy when it’s finished. It would look great behind the food table or greeting guests at the door.

Movie Marathon

This is a good idea to have up your sleeve if you get stuck with rain for the holiday.

I’ve written about cinematic theme parties before, but didn’t include one with a military focus. Think "Platoon" or "Saving Private Ryan." Basically, any war movie that depicts a famous war that America participated in throughout history. It brings home the point that those who made a career out of military service weren’t exactly having a party during these periods in history, and gives your guests a conversational starting point to discuss the main reason behind the holiday weekend. Granted, this is more appropriate for grownups than youngsters, so you might want to have an alternative film selection available for the kids in another room.

Formal Remembrance

It’s important to take the time to incorporate formal observances of the holiday, particularly if you have young children you’re trying to teach about its history.

Cemeteries

This was something my family did every year growing up. Basically, we recycled containers from year to year, although they occasionally needed a fresh coat of spray paint. Other than that, the only cost was a few flats of affordable flowers from the greenhouse and a few ribbon-making supplies. We got any extra dirt we needed from our garden. We picked a time to create new arrangements for lost loved ones and fallen family members and on one of the days during the holiday weekend, we would make the rounds to the cemeteries where they were all buried to place the fresh boxes of blooms.

National Moment of Remembrance

Every year there is a national moment of remembrance on Memorial Day itself. Participation is free, and it can be scheduled via a simple alarm on your watch or cell phone. This is a simple one to do as a family, and even works if you’re a road warrior on a business trip who hasn’t managed to get the weekend off.

Recite the Poem "In Flanders Fields"

"In Flanders Fields" is a classic, historic piece of poetry which served as the inspiration for poppies becoming such a recognized symbol of Memorial Day and fallen heroes in general. You could have one printed out, read it from your tablet, or even have it written out and framed on an easel to help decorate your food table. At whatever time you feel is appropriate, have someone from the gathering read the poem aloud.

Travel

This one might not seem like the most cost-effective, but there’s a method to my madness. If you are on the road anyway, or want your children to have a truer sense of the sacrifices made on their behalf, why not incorporate a trip to the site of a battle or important military cemetery? If not Flander’s Fields themselves, then perhaps Arlington if it’s within reach. There are many battle sites in the Pacific for instance, as well as Europe. Often, a physical visit to such a place drives home the concept more than discussing it or watching a video ever could. If you’re looking for a way for your travel dollars to have a more significant impact, this might be the solution.

How do you typically observe Memorial Day? Do you have a special tradition or form of remembrance others might enjoy trying?

Written by Myscha Theriault and published on Wise Bread. Read more articles from Wise Bread.

5 Questions You Should Ask at Every Job Interview

Tisha Tolar — Mon, 20 May 2013 10:24:56 +0000

When you go into a job interview, you likely have rehearsed what you're going to stay to the interviewer about your skills and experience. But then comes the part of the interview when your potential employer offers you the opportunity to ask questions. Many in the hot seat will often reply that they don't have any, even though their brain is rapid-firing plenty of unanswered questions.

The presented opportunity to learn more about a company hiring new employees is one that should not be wasted. You want to be sure you are pursuing vacancies that are actually worth going after. If a job or company is not right for you, you will end up wasting everyone’s time. If a job does sound like a good fit, you will want to be sure you have the right expectations if you do get hired.

Here are five great questions to bring up during a job interview. (See also: How to Answer 23 of the Most Common Interview Questions)

How Often Does Your Current Staff Receive Promotions?

You should understand how committed a company is to promoting from within. Many employees take positions just to get a job but fail to find out what the advancement potential is in a company. If the employer has a lot of positive things to say about an employee’s ability to move up the ladder, you can ask more specific questions relevant to your own career path. If they are unable to provide you with information or try to avoid the question, you need to carefully consider whether the opportunity is right for you.

How Are Employees Compensated for a Job Well Done?

There are a wide variety of ways a company shows appreciation for loyal employees that exceed expectations. While financial rewards are always good, it is important to explore what else the company may provide outside of money. You want to identify businesses that do not acknowledge employee efforts, and asking such a question can give you a more in-depth look at how a company treats its staff.

Have You Ever Mentored an Employee to Help Achieve Their Career Goals?

If the interviewer is the person who will be your direct supervisor, you can learn a lot about their leadership characteristics through their answer to this question. There are many great leaders who are happy to help others get ahead and there are many in leadership positions just looking for a paycheck.

How Do You Promote Teamwork and Maintain a Motivated Environment?

If you are interviewing just to secure an income, you may not care to pose this question. However, if you are interviewing for a long-term career positions, you will want to check out the health of the work environment and understand things from the management’s perspective. You may also want to reach out after the interview to employees who already work for the company to see how their experience compares. If you get a positive review from management and a negative one from current employees, you may want to do more research into the realities of the work environment.

What Is the Process for Employee Reviews?

Career-focused individuals should want to know how they are doing periodically. Find out how employee reviews are done and if they are done on a regular basis. Some employers do not bother to communicate effectively with their staff, which can ultimately leave you dissatisfied and frustrated on the job in the near future.

While there are many more situation-specific questions to ask during an interview, you can use these starter questions to help you brainstorm. Ideally, you should take time to prepare your questions on paper in advance of your appointment day. As people tend to be nervous during the interview process, they forget their concerns and leave with too many unanswered questions.

A job interview should be much more than just finding out what the salary and benefits will be. If you plan to commit to a job, you should have a good understanding of the company policies and the right expectations about the kind of work environment you will be reporting to every day.

Written by Tisha Tolar and published on Wise Bread. Read more articles from Wise Bread.

Best Money Tips: Money Lessons From Star Trek

Ashley Jacobs — Mon, 20 May 2013 10:00:31 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some fantastic articles on money lessons from the new Star Trek, budget travel 101, and sending your child to preschool for less.

Should Your Next Car Be Electric?

Kelly Kehoe — Mon, 20 May 2013 09:48:32 +0000

With the national average cost of a gallon of gasoline currently hovering around $3.58 (or even $4+ in some areas), filling up your car may seem like a nightmare. Car fuel is one of the most volatile categories under most families' budgets, because prices fluctuate due to a variety of factors, from Middle East tensions to oil spills or refinery fires. (See also: 5 Simple Ways to Cut Your Car Expenses)

Luckily, there is an increasingly popular alternative to driving environmentally unfriendly, gas-powered cars — electric cars. Forbes reports that at least 47,500 electric cars were sold in 2012 and, although these sales only account for 0.4% of overall car sales in the U.S., electric cars are gaining popularity among American consumers. Whereas a few years ago, SUVs were all the rage, we are seeing a societal shift towards smaller, more fuel-efficient cars, and those vehicles powered by electricity are leading the way.

But are electric cars right for everyone?

Cost

One of the biggest factors people take into consideration when shopping for a new car is the cost. With electric cars, you're saving money right off the bat, thanks to federal electric car tax credits, which can reduce the initial cost of the car by $7,500. You also get to eliminate the cost of gas from your budget (unless you drive a gas/electric hybrid), which leads to long-term energy savings.

There are some downsides to the electric car, however. The purchase prices for these vehicles are much higher than similar model, gas-powered cars. For example, the hybrid 2013 Chevy Volt starts around $31,000, the 100% electric Nissan Leaf is "as low as $21,300" (after federal tax savings and without all the fancy add-ons), and the 2013 electric Ford Focus starts at $39,200. Even with the fuel savings, it might take several years to break even.

These high costs make electric cars unaffordable for many low and middle-income households, and even though they're electricity based, there are still more costs involved. For instance, you will probably need to install a charging station in your garage (factor in $1,000 to $5,000), and don't forget regular battery maintenance or replacement costs. All of these costs start to add up, and even without the added car accessories, the final price tag for an electric car is too high for many drivers.

Efficiency

One of the greatest advantages of electric cars is their energy efficiency. A new term was created for electric cars to determine their fuel efficiency — miles per gallon of gasoline equivalent (MPGe). Most electric cars get over 100 MPGe, even larger vehicles like SUVs and station wagons.

The downside here is that electric cars can generally go only 250 miles on a fully charged battery. The infrastructure for public charging stations is scarce in the U.S., so long road trips are out of the question, and if you run out of electricity while on the road, you can't simply go to the nearest gas station and fuel up. This makes electric cars more of an inconvenience for their drivers, but they can still be valuable investments if driven locally and charged regularly.

Environmental Factors

There are few, if any, comparative disadvantages to electric cars where the environment is concerned. Whereas the EPA estimates that gasoline emits 8,887 grams of CO2 per gallon (PDF), electric cars have close to zero emissions. Regardless of your views on what causes global warming and how serious a problem it is, the fact remains that electric cars pollute the air much less than their gas-powered counterparts, and, as the driver of an electric car, you can vastly reduce your impact on the environment.

Final Word

Multiple factors ought to be taken into consideration when buying a car, particularly when you're deciding between a gas or electric car. Although electric cars are more costly upfront, the long-term fuel savings could make it worth your while. And, as technology continues to develop and more car companies produce electric cars to meet the steadily growing demand for them, the cost will likely drop in the coming years.

Have you bought or are you planning to buy an electric car? Why or why not? Let us know in the comments below!

Written by Kelly Kehoe and published on Wise Bread. Read more articles from Wise Bread.

Ally Bank Review: Flexibility and Decent Yields

Miranda Marquit — Fri, 17 May 2013 10:36:37 +0000

Ally Bank is one of the most prominent banks in the online space. While it seems that Ally is a new player in the banking game, the reality is that the bank’s roots actually date back to 1919 when the company now known as Ally Financial was founded as the General Motors Acceptance Corporation.

Ally Bank is a subsidiary of Ally Financial, and is known for its competitive yields on cash products, as well as its customer-friendly attitude.

A Brief History of Ally Bank

Ally Financial was started in 1919 as the General Motors Acceptance Corporation (GMAC), and was originally meant to help finance auto purchases for those buying GM cars. The company’s headquarters is in Detroit, Michigan.

Over time, the financial services offered by GMAC expanded to include consumer banking, mortgages, and even insurance. However, after decades, GM began selling its stake in the company. In 2006, a 51% stake in GMAC was sold to a consortium of buyers led by the private equity firm Cerberus Capital Management.

GMAC was hit hard by the financial crisis, and in 2008 received TARP funds. In 2009, GMAC Bank was rebranded as Ally Bank. The overall company name was changed to Ally Financial in 2010. Ally is still about 74% owned by the U.S. government, and an exit plan is being developed. Ally claims that it has repaid about $6.1 billion to the U.S. Treasury as of May 15, 2013.

Along with the rebrand, Ally began focusing heavily on customer service, and offering no-nonsense accounts with competitive yields. The consumer banking side of Ally is fairly basic, offering a few products and services, and receiving recognition for its efforts.

Ally is FDIC insured, so your accounts are protected up to the maximum amount. Additionally, Ally Bank has a mobile banking app that allows you to keep track of your accounts no matter where you are.

Features and Benefits Ally Bank

For savers looking for reasonably high yields, Ally Bank offers a few options. While you won't find as many products and services with Ally as you might find with other institutions, the offerings at Ally Bank focus on boosting yields on cash products, making Ally a decent choice for emergency fund holdings. On top of that, Ally Bank compounds interest daily, boosting your total earnings from interest.

Certificates of Deposit

Ally is well-known for its certificates of deposit. In 2012, MONEY Magazine awarded Ally the recognition for "Best One-Year CD." CD rates change often, but as of this writing the High Yield CD with a one-year term has a yield of 0.94%.

Ally also offers a no-penalty CD. This CD is a little different, in that you can withdraw your money early with no penalty (as long as you wait at least six days). This is a somewhat unique situation, especially since there is no minimum deposit to open the no-penalty CD. The yield on a no-penalty CD is lower than what you will get for a more conventional CD, but if you want the freedom to withdraw your money when you want, it can make sense to use this option.

You can also choose the "Raise Your Rate" CD, which allows you to take advantage of higher CD rates. If the rate rises during the term of the CD, you have the option to raise your rate. However, you can only raise your rate once during a two-year term, and twice during a four-year term. This is still a nice feature, however, since it gives you the opportunity to improve your yield, even after you are "locked in" by a specific maturity.

Ally also offers a handy CD laddering tool that can show you how to maximize your CD earnings with the help of a ladder.

Online Savings

Ally's online savings account has been recognized as one of the best savings accounts available. There is no minimum deposit to open your account, and no monthly maintenance fees. As of this writing, the variable APY on the savings account is 0.84%.

You can set up automatic deposits to your online savings account, and you can transfer money out of the account up to six times a month.

Money Market

If you want a little more flexibility with your savings account, Ally offers a money market savings account. You receive free standard checks, as well as a Visa debit card. You don't have to pay ATM fees on the Ally end, and Ally will also reimburse your ATM fees from other banks. Because it is a savings account, you are limited to the six transactions per statement cycle if you want to avoid fees, pursuant to federal law.

Checking

You can earn interest on your checking account balance with Ally, and this can make the account a valuable addition to your emergency savings strategy, providing you with the ability to use your MasterCard debit card, as well as get free checks.

The checking account is compatible with Popmoney, allowing you to quickly and easily send and receive personal payments. You can make deposits remotely with eCheck Deposit, and you don't have to worry about ATM fees. On top of that, you can earn cash back with Ally Perks.

IRA Products

You can also find IRA-friendly products with Ally. The IRA CD options come with much higher yields, but you have to be willing to commit to a longer term. You can open a Traditional, Roth, or SEP IRA with Ally. However, carefully consider this option before you commit some of your contributions to cash products.

Ally Bank also offers links to other services that fall under the Ally Financial umbrella. One of these is auto financing and leasing. Even though this isn’t a service of Ally Bank, it’s possible to learn more about personal and business auto financing by following the link from Ally’s main web site.

Bottom Line

Ally Bank has managed to successfully rebrand itself into a competitive bank with high yields and products that consumers hold in high esteem. Ally is straightforward in its materials, offering upfront information. As a place to park your emergency fund cash, Ally is a good choice, offering flexibility and good rates.

Written by Miranda Marquit and published on Wise Bread. Read more articles from Wise Bread.

7 Places Teens (and Adults) Can Learn About Money

Julie Rains — Fri, 17 May 2013 10:24:31 +0000

We all want to encourage financial literacy in our teens (and ourselves). But what exactly does that mean, how is financial literacy best accomplished, and where can you go to learn? (See also: The Best Money Tools and Toys for Every Age Group)

What to Learn

Financial literacy is defined by the National Financial Educators Council as "possessing the skills and knowledge on financial matters to confidently take effective action that best fulfills an individual's personal, family and global community goals."

At the practical level, courses and workshops on financial literacy typically cover one or more of these topics:

Earning
Budgeting
Spending
Borrowing
Saving
Investing

Developing financial literacy and competency is a two-step process. First, learn foundational, timeless principles for managing money (e.g., spend less than you earn to save money; take more risks to earn higher investment returns).

Next, develop an understanding of real-life practices, which evolve with trends and technology. For example, comparison shopping and investing today is much different than years ago before mobile apps and online discount brokerages. Regulations pertaining to taxes, saving for retirement, handling financial transactions, and more also change frequently.

Understanding a general principle is important and then learning how things work within the current context is crucial for navigating personal finance.

How to Learn

In my experience, the best way to learn is to gain knowledge about key topics and then field test principles in the real world.

For example, I've discovered that some banks are more likely to alert you to problems or waive fees than others, despite what their printed materials may state. Similarly, the concept of risk tolerance is best grasped by gauging my reaction to investment losses following bad economic news, not by listening to a lecture about market fluctuations.

The hands-on approach reinforces concepts in ways that simply consuming information cannot. Still, personal trial and error can be a costly way to learn. Talking with your parents, friends, and colleagues about their experiences can be an effective way to gain insights into financial matters without the money-related consequences.

An effective program is project-based, fun, interactive, and relevant to current needs according to Jim Clark, President and CEO of the Boys & Girls Clubs of America. His organization offers a financial literacy course that has educated more than 500,000 teenagers since its inception about 10 years ago. He attributes its success to a design that "puts concepts into practice through experience."

Where to Learn

There are many places to learn about personal finance, many likely available in your area. Take advantage of opportunities in places you already go, like high school or the library, or seek out courses beneficial in helping you to make good decisions without angst. Here are several places that you may want to check out.

1. Boys & Girls Clubs of America

The Boys & Girls Clubs of America offers Money Matters, a program developed and sponsored by the Charles Schwab Foundation.

An adult facilitator who is a positive personal-finance role model guides participants through lessons that include discussions of real-life experiences in a small group setting. These talks include challenges that teens face, such as finding money to attend college and lessons learned from mistakes, such as bouncing a check or getting dinged with late fees. Through sharing of struggles and triumphs, along with adult mentoring and guidance, teens learn good financial practices from each other plus receive support and encouragement.

Teens are kept engaged by being recognized for their efforts and given a forum to “show off.” For example, Money Matters graduates are recognized for completing the program and are eligible for college scholarships. They can also participate in the Money Matters Music Mogul contest.

Adult Version:

For adults 50 and older, AARP offers a three-part workshop entitled AARP Foundation Finances 50+, a new program also developed and sponsored by the Charles Schwab Foundation. Face-to-face guidance is offered in several metropolitan areas. The participant guide and volunteer leader guide are available for free (you can download files or order a printed copy).

2. Student-Run Banks and Credit Unions

Banks and credit unions may have branch offices in local high schools. Students who help run the branches can develop working knowledge of banking systems. Often, hands-on experience is combined with a business class associated with the bank or credit union operations.

Teenage customers can open and manage their accounts at these branches, allowing them to become familiar with banking practices. Specific skills they gain are basic but essential, such as how to open an account, make a bank deposit, check an account balance, and withdraw money for expenses. Plus they can learn that though banking services are often available 24/7 online, branch offices have limited hours.

Adult Version:

Local credit unions may offer educational resources that cover topics such as establishing credit, borrowing for your first home, and general money management.

For instruction on how your checking account and savings account work, arrange to sit down with a knowledgeable representative. They should be able to explain monthly and transaction-based fees, ways to minimize fees, and methods of avoiding a shortfall or insufficient funds for payments you initiate.

3. High School Civics and Economics Classes

Though both of my kids have taken required coursework in civics and economics, the class seemed to make the biggest impression on my youngest son.

Most memorable was the documentary "Maxed Out," which the teens watched in class. The film covers predatory lending practices of many financial institutions. My son’s synopsis of lessons learned: “you go to college, you get a credit card, you max out the credit card, and then you die.”

Adult Version:

"Maxed Out" is available for viewing online and through streaming services, such as Netflix.

4. Scouting Programs

Scouting programs, such as Boy Scouts of America and Girl Scouts, offer many ways for teens to learn about personal finance and money management. Fund-raising activities for camping trips, special outings, and troop operations can help kids of all ages understand that money is needed for various activities. Plus, there are lessons to be learned from Girl Scout cookie sales.

Badges for financial empowerment in Girl Scouts (PDF) cover topics such as budgeting, comparison shopping, establishing credit, saving for large purchases, and entrepreneurship. The Boy Scouts’ Personal Management merit badge deals with planning for major purchases, making decisions about investing, household budgeting, and more.

Adult Version:

Parents can learn by teaching badges or sitting down with their teens as they cover the curriculum. They may find badge exercises to be useful, such as tracking income, expenses, and savings for 13 weeks (PDF).

5. College Classes

Many colleges and universities offer personal finance classes as part of their degree programs. Courses may be focused in investments, fixed income, real estate investing, and entrepreneurship. Learn in your teenage or young adult years before entering the workforce or starting a business.

Adult Version:

Pick up classes at your local university or community college offered through continuing and professional education. Choose among courses such as personal taxation, retirement planning, and investing.

6. Community Venues

Community venues, such as public libraries, often host financial literacy workshops and classes for teens. Topics covered may include investing, saving for college, and managing a bank account.

Adult Version:

Seminars and workshops on financial topics for adults are generally available at public libraries and community centers. Multi-week courses, such as Financial Peace University, are often held at churches and other houses of worship or community gathering places.

7. Home

You can learn about money at home, often in collaboration with your parents, siblings, and friends.

Things that my teens have learned recently include how to:

Sell items on eBay
Get college textbooks and supplies at a discount
Transfer money from PayPal accounts to bank accounts
Delay spending to get a price reduction
Forgo spending to save for future needs
Set aside gifts and windfalls for large purchases

They’ve also learned that savings accounts pay very little interest right now though having money set aside is valuable by itself.

There’s much more to learn but I’ve found that teens learn best when financial lessons are timely and relevant. Instructors can be parents, sisters and brothers, and friends who are willing to provide guidance and give ideas on what has worked for them.

Adult Version:

When you are ready to make a financial decision, learning all about a subject is desirable. Tapping the knowledge of your spouse, parent, friend, or even teenager can help you navigate personal finance issues.

A big difference between adults and teens, though, is that there are many topics you need to understand now, before a crisis or major financial decision. For example, you can’t wait until retirement to figure out how to generate income for household expenses. You must learn today how to develop streams of income to fund your retirement in the future.

Many financial literacy programs encourage you to apply concepts while you are participating. If not, though, act on your own. Open an IRA and start investing soon after you finish an investing class, for example. The sooner you use newly acquired knowledge, the better for your financial literacy and the faster your financial savvy will grow.

Where have you learned financial literacy?

Written by Julie Rains and published on Wise Bread. Read more articles from Wise Bread.

Best Money Tips: All You Need to Know About Saving for Retirement

Ashley Jacobs — Fri, 17 May 2013 10:00:32 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some stellar articles on all you need to know about saving for retirement, personal finance experiences for older kids, and average tax refunds.

Get It in Writing: A Quick Guide to Agreements and Contracts

Thursday Bram — Fri, 17 May 2013 09:48:59 +0000

Everybody's heard that worn-out piece of wisdom — get any deal you make in writing because something could always go south with the deal. We hear it regularly, but not all of us do it. It's a bit of a hassle, especially for small agreements. It doesn't make sense to require a contract if you're paying a neighborhood kid a little cash to mow your yard, after all. And if you're not writing out that agreement, why write out something that's a little bigger? Before you know it, it's easy to justify avoiding contracts entirely. (See also: 16 Things Your Lawyer Won't Tell You)

But it's time to refresh the saying and start following it a little more closely. It is important to get things in writing — and it's even more important to know what that writing means.

You Need It in Writing, Even When You Think You Don't

Technically, a verbal contract is supposed to hold up just fine in court. But the reality is that you can get into a situation where each side of the argument remembers the contract in a different way. Neither side may be lying in such a case. If the deal was not incredibly specific, each party may remember his interpretation of the deal, rather than the actual words used when the deal was struck.

Writing down the terms of an agreement does more than make legal situations easier to sort out. The act of writing encourages you to be as specific as possible. As you're writing, you may even find some details that really ought to be hashed out before you finish setting up the agreement.

Ask for Help

I'm not a lawyer. You should consult a lawyer any time you're not sure about signing a contract or an agreement, as well as get help when constructing your own contracts. There's a question of practicality in play, of course. You're probably not going to worry about legal counsel unless there's enough at stake to make it worth the cost of consulting a lawyer.

But any time you feel out of your depth, you should make a point of asking for help.

The Difference Between Contracts and Agreements

When we think of contracts, our minds often go straight to documents written with tons of legal jargon. In reality, a contract can be written plainly. A contract just has to be a legally-binding agreement that meets certain requirements, such as showing a benefit to be received by each side of the agreement. Many agreements are legally binding, even when they aren't contracts, but not all are.

Since we can't all go to law school, it's best to plan to jot down the key terms of any agreement you come across, and don't worry about whether it's a contract or not.

You also want to make a point of reading any agreements presented to you before you sign them. As much as no one ever wants to do so, this even includes reading the fine print presented to you when you sign up as a member of a website.

Understanding Legal Capacity

One of the key issues that goes along with making a valid contract (or even an agreement) is that the people involved have to have legal capacity — the ability to understand what they're doing when they sign a contract. Someone who is intoxicated or mentally ill, for instance, cannot agree to a contract.

There are specialized laws to deal with minors. Someone who is a legal minor can make a contract, but he can also "disaffirm" a contract, essentially backing out of it. In such cases, the minor is required to return anything he gained through the contract. There's a legal quirk where trades or barter (including when a retail item is purchased for cash) are not considered contracts.

Dealing With Boilerplate

Quite a bit of a contract may be standardized, but what is considered boilerplate (the text of a contract that can be used over and over again for similar situations) can differ between types of contracts, industries, and other factors. It's worth studying up on the clauses you're likely to see often, but don't be surprised any time you see a new one. These are a few of the more common provisions you may see:

Waiver of Jury Trial

Many contracts will include a clause requiring that, in the event of a problem, the parties go through arbitration, rather than take the matter to a jury trial.

Notice Provisions

In the event of changes or termination of the contract, each party needs to be notified. That requirement is written out as a notice provision.

Governing Law Clause

Because laws can differ by state, most contracts include a clause specifying which state or country's law the contract will be enforced under.

Force Majeure Clause

Things happen that are outside of the control of any one party, ranging from wars to hurricanes. Therefore, many contracts include a clause that lays out what should happen in the event that one party can't carry through on the contract due to one of these causes.

There are plenty of clauses and provisions that show up on a regular basis in different types of contracts. It's worth investing time in learning about the specifics of the types of contracts you'll likely deal with. The same goes for the laws that help define how we handle contracts and other agreements. At minimum, learn about how broken contracts are handled in the courts of the state you live or work in.

Have you ever been surprised by a clause in a contract or agreement? Have you ever wished you'd "gotten it in writing?"

Written by Thursday Bram and published on Wise Bread. Read more articles from Wise Bread.

2 Investing Concepts Everyone Should Know

Matt Bell — Thu, 16 May 2013 10:36:31 +0000

Investing is arguably the most complicated and intimidating topic within personal finance. Understanding (and making use of) two key investing concepts will go a long way toward demystifying the process while dialing down the fear factor. Let's get started! (See also: The 10-Step Staircase to a Comfortable Retirement)

Compound Interest

At first glance, this one seems like no big deal. Compound interest is simply interest earning interest. For example, if you invest $100 and are able to earn 10% on that money, in a year it will have turned into $110. The next year, assuming you are still able to earn 10%, it isn’t just the initial $100 that earns interest, but the interest you earned last year will earn interest as well. So, you won’t end up with $120 at the end of year two; you’ll end up with $121.

Okay, so it’s not that impressive. But wait. Let’s put more money to work and give it more time.

Imagine investing $200 per month for your retirement beginning at age 20. And let’s assume you can get a 7% return on that money. By age 30, you will have invested $24,000. That’s $200 per month for 10 years. However, because of the 7% return, your $24,000 will actually be worth $34,617. Not bad, right? You racked up more than 10 grand in interest in just 10 years!

Don't Stop Believing

But wait. The longer you give it, the better it gets. Let’s run this all the way out to age 70, which, let’s face it, will probably be considered "early retirement" by then.

The $200 you’ve been dutifully tucking into your 401(k) plan all that time adds up to $120,000, an impressive amount unto itself. But because of the power of compound interest, that sizeable sum has become much, much more sizeable. In fact, it’s now worth more than a million bucks. Now that’s impressive. You’ve earned about $970,000 in interest through the power of compound interest.

This is why Albert Einstein reportedly called compound interest "the eighth wonder of the world." Even if he didn’t say that, it doesn’t take a Nobel prize-winning scientist to understand that compound interest is a relatively powerful concept.

Speaking of Einstein, there's a complicated looking formula for calculating compound interest. It's actually pretty straightforward once you understand the terms.

Even better, here's an online tool that calcualtes it for you.

On a side note, this is exactly why it takes so long to get out of debt. Debt takes the strong wind of compound interest and flies it in your face. Keep the wind at your back by investing.

“Fair enough,” you say, “but where can I get a 7% return?”

Asset Allocation

Pick up any personal finance magazine and you’re likely to see breathless headlines about the latest mutual fund to rack up impressive returns. But you’re not fooled. You realize that last month’s hot performer might be tomorrow’s dog. So which fund will do well next month?

Surprisingly enough, generating a respectable return on your investments isn’t so much about the specific investments you choose. It’s how you spread your investment dollars around. This is known as asset allocation. It may have a boring name, but asset allocation has been found to account for about 90% of investment returns.

Choosing Between Stocks and Bonds

The key asset allocation decision is what percentage of your investment dollars to put in stocks and what percentage to devote to bonds (or stock-based and bond-based mutual funds). Stocks are riskier than bonds, but they have the potential to earn a higher return. In general, the younger you are, the more your investment mix should tilt toward stock-based investments, but your risk tolerance matters as well. You can find lots of free asset allocation calculators online.

The calculators will typically suggest something a bit more detailed than stocks vs. bonds; they may recommend that you devote different percentages of your money to large-cap stocks (the stocks of large companies), small-cap stocks, foreign stocks, and bonds. Most brokerage houses, such as Fidelity, Vanguard, Schwab, and others, offer index mutual funds in these categories, which can provide a low-cost, relatively simple way to invest in those categories.

So, those are two key steps toward becoming a knowledgeable, successful investor. First, make use of the power of compound interest by getting started with investing as early as possible (although it’s best to wait until you’re out from under any credit card or vehicle debt and have a base of savings totaling three to six months’ worth of essential living expenses). And second, base your investment decisions on an intentional asset allocation plan that’s tailored to your age and risk tolerance.

What are your key investment concepts?

Written by Matt Bell and published on Wise Bread. Read more articles from Wise Bread.

The 5 Best Washing Machines

Jeffrey Pu — Thu, 16 May 2013 10:24:31 +0000

The washing machine is a staple appliance in any household because of our need to keep our clothes fresh and clean. But while many of us are familiar with the use of a washing machine, what happens when we have to purchase a brand new one for our homes? There are a number of factors to consider when purchasing a new washing machine, and this list is here to help you figure it out.

What Is a Washing Machine?

A washing machine is an appliance that is used to wash laundry. The process includes immersing and agitating dirty clothing in water mixed with detergent and/or bleach. There are two main types of washing machines: top-loading and front-loading machines. Top-loading machines are the least expensive of the two, but also do not wash as well and use up more energy. High-efficiency models help mitigate this problem, but these come with a higher price tag. Front-loading machines perform better and more efficiently than top-loaders, but they’re also more expensive.

Best 5 Washing Machines

Maytag Maxima XL MHW7000AW

The most highly rated front-loading washing machine on Consumer Reports, the Maytag Maxima XL MHW7000AW was well-reviewed in washing performance, energy, and water efficiency. With a carrying capacity of 4.3 cubic feet, it can fit a very large load of laundry and has a number of automatic controls to ease the washing process. Currently $1,079 on Amazon Marketplace.

Samsung WF210ANW

While the usual trend is that front-loading washing machines are typically more expensive than top-loaders, the Samsung WF210ANW offers front-loader efficiency without the hefty pricetag. However, while the Samsung does comply with Energy Star standards, users agree that it is only mediocre in terms of washing performance. Its noise and vibration levels are also not top-of-the-line and it has a relatively large cycle time. Currently $699.00 at Lowe's.

Whirlpool Duet WFW97HEX

Well-reviewed at both Consumer Reports and Good Housekeeping, the Whirlpool Duet WFW97HEX is known for its Precision Dispense Ultra system that allows you to select detergent concentration and water hardness, giving you great control over your laundry. Users agree that it tackles heavily dirty laundry with ease and is highly efficient, saving you both water and energy. Currently $1,410.99 on Amazon.

LG WM2650HRA Front Load Steam Washer

The LG WM2650HRA Washer is considered by many users to be a great front-loading washing machine at a price that does not break the bank. With a large carrying capacity of 3.6 cubic feet and 9 different washing programs, this LG can take care of just about any laundry load. Additionally, users find the special steam cycle to work on even the toughest stains. However, best plan ahead if you intend to use the steam cycle — it takes at least 2 hours to finish. Currently $817.99 on Amazon Marketplace.

LG WT4801CW

A Consumer Reports Best Buy, the LG WT4801CW is considered the best top-loading washing machine available. Not only is it highly efficient, it doesn't suffer from the performance problems of its fellow brethren, all the while maintaining a reasonable price tag. Users of this LG also note that it is quiet and easy to use. The biggest complaint against this washing machine is that it is not the most gentle on clothing, and laundry can get tangled or wrinkled after being washed. Currently $599.93 at Sears Outlet.

Written by Jeffrey Pu and published on Wise Bread. Read more articles from Wise Bread.

Best Money Tips: Balance Multiple Jobs Without Losing Your Mind

Ashley Jacobs — Thu, 16 May 2013 10:00:32 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some great articles on balancing multiple jobs, better ways to invest your tax refund money, and saving on your home entertainment system upgrade.

Join Our Tweetchat on Thu 5/16, 12pm Pacific for a Chance to Win Prizes

Ashley Jacobs — Wed, 15 May 2013 22:55:32 +0000

Join our Tweetchat this Thursday at 12:00 pm Pacific for lively conversation and a chance to win prizes! Use #WBChat to participate.

This week's topic: Having a frugal Memorial Day Weekend! Learn about taking advantage of sales, saving on travel, and throwing a frugal BBQ! Tell us about your Memorial Day Weekend plans and let us know your number one tip for keeping things frugal this Memorial Day!

For an easy way to keep track of the conversation, try using our special Tweetchat Chatroom.

Anyone can participate, but you must be following @WiseBread and RSVP below to win our prize!

To make it easier for us to keep track of attendees and pick our winners, please RSVP below with your twitter ID (put that in the "Link Title" field), email address, and your twitter URL (put that in the "URL" field, do not put your blog's url in there). Winners will be selected at random from RSVPs. If a winner is chosen who RSVPed but did not attend a 2nd winner will be chosen.

New Parenting Chat Immediately Before #WBChat

Our sister blog Parenting Squad (@ParentingSquad) will be hosting a parenting chat every Thursday at 11:00 am Pacific. Drop by for fun parenting conversations and a chance to win prizes! Use #PSChat to participate.

Written by Ashley Jacobs and published on Wise Bread. Read more articles from Wise Bread.

12 DIY Ideas for Creating Inexpensive Art

Kentin Waits — Wed, 15 May 2013 10:36:30 +0000

People get intimidated by art and I’m not sure why. I’ve always thought that art should be engaging, fun, experimental, and personal — the perfect thing to create for ourselves. Whether you’re on a budget or not, creating art can be an inexpensive and exciting way to decorate and personalize your environment. If your walls are bare and your hands are willing, here are twelve ideas to get your creative juices flowing. (See also: But Is it ART?)

1. Repurpose Wallpaper

Intricate or bold wallpaper designs can become modern art statements when framed and hung. Make sure to use enough paper to clearly show large or repeating patterns. Frame one large piece or use several smaller frames to repeat the same design in a cluster.

2. Press Some Flora

Single large pressed leaves or groupings of flowers make great subject matter for homemade art displays. Press and dry, mount on a white background, and frame simply. Experiment with off-center arrangements and mix plant types for visual interest.

3. Make a Collage

If you’re feeling creative, try your hand at collage. Use photographs, text, scrap wallpaper, and other media to create an original piece of art. Collage is a forgiving medium; just cover up what you don’t like and try again.

4. Snap in Black and White

Use a digital camera and printer to experiment with black and white photography. Snap images of faces, landscapes, architectural details, or close-ups of unique design features of almost anything. Manipulate and refine your photos using photo-editing software. Group together or create a mini-gallery in a long hallway.

5. Channel Warhol

Product labels with bold or classic graphics make excellent subjects for artwork. Labels from canned food, vintage perfume bottles, bars of soap, or fruit crates are particularly good places to start. Carefully remove labels (soak stubborn labels in warm water and then press dry), mount, and frame.

6. Frame Your Frames

Sometimes frames can be the art. Collect interesting frames in graduated sizes and “nest” them together for a bold and unexpected twist on traditional artwork.

7. Get Graphic

Old magazine covers or vintage ads are an inexpensive and easy way to make an elegant artistic statement. Look for subject matter that clearly represents an era — vintage fashion, cars, appliances, or travel destinations are great places to start.

8. Thumb Through a Catalog

It’s getting harder and harder to find old store catalogues, but if you can, consider framing their pages. Vintage catalogue listings that feature camping equipment, clothing, or bicycles can make interesting displays.

9. Frame Postcards or Greeting Cards

Arrange multiple postcards or vintage greeting cards in a single frame or frame cluster. Group cards of similar color, style, or subject matter together for a more curated and striking look.

10. Display Your Collections

Use an inexpensive shadowbox to display collections you would otherwise store in a cabinet or on a shelf. Silverware, political buttons, jewelry, perfume bottles, found objects, or antique keys can be grouped and displayed as artistic collections.

11. Unbind a Book

Vintage book covers or illustrations are ready-made art just waiting to be seen in a new context. I once found an old copy of the children’s book, "The Little Prince," by Antoine de Saint-Exupery. Most of the volume was badly damaged, but I managed to pull one pristine illustration from it. I mounted and framed it for a baby shower gift to a dear friend.

12. Wax Poetic

Have a favorite poem, story, or quote? Print and frame it. Experiment with font, text size, and composition to create a piece that’s visually bold.

Here’s one important tip that will help keep your art on a budget: buy your frames first. Creating a piece that you’re really proud of and then not being able to frame it properly is disheartening. Scout thrift stores and yard sales for solid wood frames that can be rehabbed with a bit of stain or paint, then create based upon the sizes of your frames. It’ll help motivate your creative efforts and prevent you from breaking the bank at custom frame shops.

Do you decorate with your own artwork? What ideas, tips, and tricks do you have for beginners?

Written by Kentin Waits and published on Wise Bread. Read more articles from Wise Bread.

Fixed or Adjustable? Choosing the Right Mortgage Loan

Miranda Marquit — Wed, 15 May 2013 10:24:31 +0000

Part of the home buying process is choosing a mortgage. Most of us can't afford to pay cash for a home, so borrowing to complete the purchase is necessary.

However, when you use a mortgage to buy your home, you have options. What you choose depends on how much you can afford each month, as well as what interest rate you want to pay, and how long you expect to be in debt with the mortgage. (See also: 5 Things Our Realtor Told Us That Weren't True)

Before you begin the process, make sure you understand your mortgage choices, and choose what is likely to work best for you.

Fixed-Rate Mortgage

Fixed-rate mortgages are popular because they allow homebuyers to plan ahead. With a fixed-rate mortgage, you "lock in" your interest rate for the entire period of the loan. When you have a fixed-rate mortgage, the principal plus interest portion of your payment remains the same for the whole term.

Shorter Term = Higher Payments

Usually, you choose between getting a fixed-rate mortgage for 30 years (most common) or 15 years. Often, you can get a better interest rate if you choose the 15-year fixed-rate mortgage. However, the monthly payments are usually higher. A 30-year loan will cost you more in the long run, but it is also more manageable on a monthly basis. If you are concerned about cash flow, a 30-year loan can be helpful.

Plan for Flexibility

One strategy is to agree to a 30-year mortgage, but make payments as if it's a 15-year mortgage. There will be a higher interest rate on the loan, but paying it off faster means that you save overall. The reason some homebuyers go this route is to retain flexibility. If the higher 15-year payment becomes untenable, the borrower can cut back to the agreed upon 30-year payment.

Adjustable Rate Mortgage (ARM)

The other broad category of loan types is the ARM. With this type of mortgage, the interest rate changes periodically. With the changing interest rate, you are also subject to changing mortgage payments. If the market rates rise, then you will end up with a higher monthly payment. On the other hand, if the market drops, you see a reduction in your mortgage payment.

Rate Resets Mean Unpredictability

Interest rates are usually set by adherence to a particular index. The lender will tell you how the rate is set, and how often it is set. Many rates are set quarterly, semi-annually, or annually. It's common to find an ARM with a rate that sets annually. On a particular day each period, the current rate is used to set your interest charges for the following period. If you are on a semi-annual schedule, your rate will be set for the next six months.

ARMs can make it a challenging to plan your finances, especially if the rate changes every quarter or every six months. It can also be difficult if rates begin rising. With the rate going up regularly, you find yourself paying more and more for your home each month. In some cases, if you remain in your home for the full term of the mortgage, the rate decreases (and subsequently lower payments) are not enough to offset increases. An ARM can be more costly over time than a fixed-rate mortgage, depending on the market conditions.

Low Initial Payments

With an ARM, one of the biggest advantages is that you often start out with an interest rate that is very low. Most ARMs have initial rates that are lower even than a 15-year fixed-rate mortgage. If you think you will move soon, or if you are confident that you can refinance to a fixed-rate mortgage before rates really start rising, an ARM can make sense. You have the advantage of a low rate initially, and as long as you can sell or refinance before a higher rate starts costing you, and ARM can be a good choice.

If you decide to use an ARM, make sure that you find out about interest caps. Many ARMs have caps on the interest rate, which means that you have some measure of protection in the event that interest rates rise dramatically.

Hybrid ARM

A subset of the ARM is the hybrid ARM. This type of mortgage is fixed for a set period of time, and then adjusts after the initial period is up. One common type of hybrid ARM is the 5/1 ARM. With this type of mortgage, your rate is fixed for five years, and then the rate is adjusted each year after that.

It's also possible to get a 7/1 ARM or a 3/1 ARM and lots of other ARMs. Realize, though, that the longer you have a fixed rate, the higher your rate will be. With a 7/1 ARM, you will pay a slightly higher interest rate than with a 5/1 loan. The 3/1, on the other hand, usually has a lower initial interest rate. If you want a lower rate, you have to be prepared to give up a certain amount of certainty.

Loan caps on hybrid loans also operate a little differently. You are likely to see three different types of caps with a hybrid ARM:

Initial Adjustment: This cap represents the first adjustment made after your initial fixed term is up. If you have a 5/1 hybrid, the cap might be 5%. This means that the lender can add up to 5% to your initial rate in its first adjustment.
Rate Adjustment: A rate adjustment cap is the maximum adjustment made each period. If you have a cap of 2%, it means that the lender won't adjust your rate up by more than 2% above your current rate at adjustment time — no matter what the market indicates.
Lifetime: Finally, the lifetime cap represents the highest an interest rate can go. Once you hit the lifetime cap, your interest rate won't go higher.

Depending on your situation, a hybrid ARM with a reasonable cap can be a good choice.

If you are looking for a low initial rate while you start your career, or a business, or if you have variable income, it can make sense to start with a mortgage that has an adjustable rate. However, you need to be prepared for the possibility of higher interest down the road. It makes sense to save extra money, or to refinance when you can to a fixed rate so your payments are more predictable over time.

What type of mortgage do you have? Fixed, adjustable, or hybrid?

Written by Miranda Marquit and published on Wise Bread. Read more articles from Wise Bread.

Best Money Tips: Freeing Yourself From Debt

Ashley Jacobs — Wed, 15 May 2013 10:00:32 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on freeing yourself from debt, reasons to not send professional emails after dark, and renting vs. buying stuff.

Ask the Readers: Do You Grow Your Own Food?

Ashley Jacobs — Tue, 14 May 2013 10:36:33 +0000

Growing your own food can be a very rewarding activity in many ways, from watching the fruits of your labor grow day by day to enjoying the actual fruits (and vegetables!) harvested fresh from your garden. You'll trim your grocery expenses over time, and if you join a co-op or community garden, you'll even expand your social circle!

Of course, it may take some time, labor, and upfront costs to get a garden planted and flourishing. While it's useful to have your own food garden, it might not fit some people's lifestyle.

Do you grow your own food? Where do you grow them? Have some crops been more successful than others? What issues have you come across, and how did you solve them? If you don't grow your own food, would you like to? What would you grow?

Tell us whether you grow your own food and we'll enter you in a drawing to win a $20 Amazon Gift Card!

Win 1 of 3 $20 Amazon Gift Cards

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Mandatory Entry:

Post your answer in the comments below. One commenter will win a $20 Amazon Gift Card!

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Giveaway Rules:

Contest ends Monday, May 20th at 11:59 pm Pacific. Winners will be announced after May 20th on the original post. Winners will also be contacted via email.
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Tell us whether you grow your own food and we'll enter you in a drawing to win a $20 Amazon Gift Card!

Written by Ashley Jacobs and published on Wise Bread. Read more articles from Wise Bread.

13 Ideas for Entertaining on a Budget

POPSUGAR Smart Living — Tue, 14 May 2013 10:36:32 +0000

Hosting a party at your home doesn't always have to drain your wallet — you can be a hostess with the mostest on a littlest budget. The main thing you have to keep in mind is to focus on the experience. If the activity is fun enough, then there's no need for expensive decor and fancy appetizers. (RELATED: 22 Cheap Ways to Treat Yourself)

1. Music Swap

Ask friends to come over with their favorite songs, make sure you have speakers set up for all to hear, and listen to some jams all night.

2. Board-Game Potluck

Invite over a handful of friends, and ask each person to bring his or her favorite board game plus a snack to share. Take care of the drinks yourself or ask guests to pitch in if things become costly.

3. Nail Party

Do something different from the usual movie or board-game night this weekend — organize a nail party with your girlfriends. Use this as an opportunity to try out fun nail art that would cost a lot of money to get done in a salon

4. Magazine Article Club

This weekend, instead of hosting a book club, plan a magazine article night. It's very simple: just pick an article you find interesting and ask your friends to read it, too. Then you can all come together over a glass of wine to discuss what caught your attention, what was missing, and more.

5. Clothing Swap

Save money and revamp your wardrobe all at once by hosting a clothing swap with your friends. Not only will you get a chance to clean out your closet, but you'll also be able to add new items for free.

6. Travel Party

While you might not be able to take trip this weekend, you can still get away — sort of. Plan a night in centered around travel, and you'll feel like you're in vacationland from the comfort of your very own home without spending too much.

7. Painting Party

Turn your living room into an artist's studio and knock some of those must-try projects off your (ever-growing) to-do list.

8. Makeover Party

Invite your girlfriends over for a beauty workshop of sorts, and make a night of it. With help from YouTube tutorials and your friends, you'll go from novice to expert in five minutes or less at hardly any cost.

9. Karaoke at Home

Karaoke is one of those activities that most people enjoy but don't get the chance to do very often. Throw a karaoke party at home by downloading Karaoke Anywhere, which works on both iPhone and Android and features more than 50,000 karaoke songs. All you have to do is plug your phone into your TV. Plus, it lets you record and share with other people.

10. Wine Tasting

Wine tasting has become a big trend, but you don't need to plan a trip to Napa or the South of France to join in on the fun. Instead, try hosting a wine tasting party in your own home. When you invite your friends, ask them to bring a bottle to contribute. You'll cut costs and not have to worry that you'll run out of drinks.

11. Adult Sleepover

Slumber parties were a form of entertainment for us back in the day. Not only was it a way to pass a Friday or Saturday night, but it was also a way to bond with our friends. As we get older, the venues we meet our friends in don't give us the same type of quality time a sleepover gives us; bars are way too noisy, and everyone can hear your conversations at a restaurant. Do something different this weekend, and invite your friends to your home for a nostalgic sleepover.

12. Sewing Party

Throw a sewing party with your girlfriends, and use it as an opportunity to mend or alter clothing you've been meaning to deal with.

13. Book Club

Starting a book club may be for you if you find yourself constantly gushing over books with your friends or having heated debates on which character is more swoon-worthy. Getting a bunch of like-minded bookworms together for a book club is a fun and frugal social activity that will enrich your minds and friendships.

What are your favorite fun and cheap get together activities?

If you're not careful, your at-home shindig can cost as much as going out. Keep your gatherings fun and affordable with these creative activities.

Guest Post Blurb:

This is a guest contribution from our friends at POPSUGAR Smart Living. Check out more useful articles from this partner:

Written by POPSUGAR Smart Living and published on Wise Bread. Read more articles from Wise Bread.

Spice Up the Conversation by Skipping "What Do You Do?"

Nora Dunn — Tue, 14 May 2013 10:24:31 +0000

A few years ago I sat down to dinner with a new acquaintance while I was visiting Sweden. But the conversation was unlike any other first encounter I'd ever had, and it has changed the nature of "cocktail chat" for me ever since. (See also: 7 Ways to Be the Life of Every Party)

I'm not sure what inspired me. Maybe I subliminally knew she was a kindred spirit, or maybe I sensed she was dreading the standard roll call of questions people ask when getting to know each other...starting almost inevitably with:

So, what do you do?

I read her pursed lips and took a chance. As she unfolded her napkin and prepared her "elevator speech" describing what she does for a living, I instead opened the conversation with a question that stopped her in her tracks:

What excites you?

She blinked and looked at me for a while. With each passing moment, I increasingly feared something was lost in translation or I had trodden on culturally sensitive ground.

Then her face relaxed and she smiled widely. "Nobody has asked me that before!" she said as she then considered how to answer it.

Career and Identity

In an ideal world, we love what we do for a living — and it creates part of our identity. We spend a large portion of our waking lives working at our careers, so it should stand to reason. This is why an easy opening question often surrounds career.

But for many people, careers represent little more than conduits to income, and their true identity and passion comes from their activities outside of work.

So why not open the conversation with a question that allows somebody to talk about something exciting; something that makes them bubble over with enthusiasm — and which can ultimately lead to new frontiers of conversation?

The Spicy Question

You may wish to choose a different question than "what excites you" (which in some scenarios could even be construed as suggestive).

But choose a spicy question or two to have in your coffers for your next meet-and-greet situation; it will surely lead to an interesting exchange. Keep your question open-ended — it's important not to pry. Instead, focus on something that can be answered in many different ways.

Some ideas:

What's the most important thing to you in life?
If you had all the money in the world, what is the first thing you would do?
What has been your greatest adventure in life so far?
What have you always wanted to do but haven't had a chance to yet?
If you could wave a magic wand and do or change anything, what would it be?
Where in the world have you always wanted to visit?
What's the number one item on your bucket list?
What are you happiest about right now?

The point of a spicy question isn't to shock your conversation partner (although often it will surprise them since it's not a "standard" opening question). The idea is to encourage somebody to reveal a passion, dream, experience, or story that they're excited to talk about — which in turn, leads to deeper connections, or at the very least, a conversation you'll both remember.

Once you've asked your question, listen to the answer. According to networking principles, what your conversation partner says will lead you to the next question, as long as you're attentive and open-minded.

What's your best "spicy question"?

Written by Nora Dunn and published on Wise Bread. Read more articles from Wise Bread.

Best Money Tips: Dinner Recipes for $2 or Less

Ashley Jacobs — Tue, 14 May 2013 10:00:32 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some fantastic articles on dinner recipes for $2 or less, where spending money could save you money, and resume red flags to avoid.

Why You Should Never Buy Souvenirs

Kelly Kehoe — Tue, 14 May 2013 09:48:38 +0000

Tourism is a multibillion-dollar industry and souvenir sales make up a significant portion of that pie. If you’ve traveled at all, you’ve likely noticed gift stores on almost every corner in high-traffic, touristy areas and smaller vendors in less-traveled areas that welcome out of town visitors. There are no limits to what you may find in a souvenir shop: stuffed animals, clothing, shot glasses, or even "souvenir water" from places like Niagara Falls. (See also: The Easiest Way to Save Money on Vacation)

Most of these items are pretty useless, but we feel good when we buy souvenirs because we’re certain our friends and family back home will love them. But if your friend isn’t an avid keychain collector and your kids are too old for stuffed animals, is it really worth paying all that extra money for the sake of bringing back souvenirs? Or, to take it a step further, should you buy souvenirs at all?

I’d say no.

Zero "Obligation"

There is little utility value to most souvenir items, and yet we still find ourselves buying impractical, overpriced trinkets out of some sense of obligation to the folks back home. Remember that tourism is a highly profit-driven industry and extreme markups on cheap items (sometimes in excess of 50-60% of the item’s actual value) are commonplace. Travel is expensive enough; why squander Euros, rupees, yuan, etc. on souvenirs that will inevitably find their way to the back of someone’s closet?

Travel Hassle

In 2010, I was returning to the US from a month in Europe with a group of other exchange students. One girl bought a snow globe for her parents on the way to the airport, as a last-minute, obligatory souvenir. Unfortunately, it was bigger than the allowable "tennis ball size" snow globe and airport security promptly confiscated it. Since 9/11, the number of limits on carry-on items has skyrocketed, particularly where liquid or "sharp" items are concerned. Souvenirs present another hassle to already-hectic air travel plans, and, sometimes, you could be encouraging illegal activities without even realizing it.

"If you come across people selling wildlife or wildlife products, be aware that those 'souvenirs' could very well be endangered species that have been poached from the wild and are being sold illegally," Senior Policy Officer for U.S. Government Relations Will Gartshore said in a World Wildlife Fund article. This is especially true of the fur and ivory industries, which are targeting tourists who may not be aware of these illegal activities. Why risk it? Not buying souvenirs at all is a simple way to avoid this problem.

Worker Exploitation and Scams

In addition to animal-related incidents, there have been reports of worker exploitation on the fringes of the tourism industry. Allegations of souvenir companies overworking their laborers and exposing them to toxic chemicals in the factories have come to light, and New Zealand’s tourism industry recently experienced scandals involving mislabeled and overpriced "Made in New Zealand" rugs (that were really made by cheap laborers in Peru). These are only a few instances amongst many, and as a frugal tourist, remember that getting a bargain on souvenirs may have some unforeseen consequences.

Alternatives

But if you don’t want to avoid buying souvenirs altogether, there are a few, frugal ways to bring a little something back for your friends and family. Photos and maps are inexpensive and probably last longer than a cheap keychain. You could also bring back coasters and pens from hotels you stayed at, and places like Disney World or Disneyland hand out freebies such as pins (for special occasions), character or princess stickers, and the Autopia "driver's license." If you're vacationing off the beaten path, consider taking home a pressed leaf (they make for great wall art) or a little jar of sand (though mind the rules about removing sea shells from the beach, especially if you're in an environmentally-sensitive area).

Saving the best for last, postcards are the true winners when it comes to souvenirs. They’re simple, personalized, and affordable (just pay for the postcard and postage). That way, your friends and family still get a piece of your vacation without cluttering their homes or overstretching your wallet like traditional souvenirs often do.

What about you? Do you like buying souvenirs or do you have something else you like to bring back home? Tell us in the comments below!

Written by Kelly Kehoe and published on Wise Bread. Read more articles from Wise Bread.

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