Alpha Consumer
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Alpha Consumer Goes on Maternity Leave
Continue reading… 4 CommentsYou've heard about my personal finance issues with pregnancy ultrasounds and we've discussed strategies for planning maternity leave. Now, it's time for me to take a few months off to take care of the cause of all those stories, my new daughter. I'll miss tracking the ups and downs of everyday money issues, but will be back, with lots of personal finance ideas and consumer advice, in February 2010. In the meantime, feel free to email alphaconsumer@usnews.com with thoughts and questions; I look forward to addressing them when I return.
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The New Money Savvy Generation
Continue reading… 1 CommentWhile 20-something consumers might be best known for their love of iPods and Facebook, one of their strongest traits turns out to be a kind of money savviness usually associated with older generations. Stephanie Noble, associate professor of marketing at the University of Mississippi, has studied this group, also known as Gen Y, which technically spans ages 15 through 32, and how they make their shopping decisions. Perhaps because they grew up at a time where it was easy to do research before making a purchase, these shoppers like to know they're getting a good deal. Here are excerpts from my conversation with Noble:
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Tweeting Their Way Into Your Wallet
Continue reading… 3 CommentsWhen companies have Twitter and Facebook pages, are you more likely to buy their products? Or does it feel fake and turn you off the brand? I've heard a range of reactions to socially-networked corporations, and many of them have been negative. "It's almost obnoxious to me," says one 27-year-old insurance broker. He thinks it's annoying when companies pretend to be his friend.
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Should Seniors Receive $250 Checks?
Continue reading… 13 CommentsWhen the Social Security Administration announced yesterday that benefits would not increase in 2010 for the first time since 1975, the reaction was swift: Stories about financially-strained seniors filled the evening airwaves and newspaper stories, and President Obama urged Congress to give an additional $250 to each Social Security recipient. Less often mentioned was the fact that in 2009, benefits went up by a whopping 5.8 percent based on the inflation index, even though most working adults—the ones paying into the Social Security system—received no such equivalent pay raise.
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Audio: $500 for Every Newborn?
Continue reading… 0 CommentsI recently spoke with WTOP in Washington about a new policy that would give every newborn in the United States a $500 savings account. The money would grow and could be put towards education, a first home, or retirement. Research suggests that such a program would encourage people to save more money on their own, to invest in their futures, and to feel more in control of their lives. The cost—about $37.5 billion for the first 10 years—concerns many of those who oppose the program.
Coming Soon: $500 for Every Newborn?
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Working Mothers Hardest Hit By Recession
Continue reading… 3 CommentsA new study from Citi found that the recession is taking a big toll on working moms: Over half of the 1,000-plus women surveyed reported working longer hours, while just one in four women without children and one in three men reported doing so. Meanwhile, working moms have also adjusted their spending more than other groups: Three in four said their habits are forever changed, compared to six in 10 women without children. In fact, more than half of women with children said they've put off buying a car or other big-ticket item and 52 percent said they've tapped into savings to make ends meet. One in three said they're headed back to school in order to ultimately improve their job prospects.
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Gen Y: Investing Is Fun, Not Scary
Continue reading… 3 CommentsOnline brokerage company Scottrade is out with some surprising findings about 20-something investors: It turns out they consider investing an enjoyable activity. Unlike older generations, they're more likely to manage their money on their own and to feel confident that they will recover their losses from the recession. In fact, one in three of those surveyed said they invest because it's fun, an increase from about one in four last year.
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Should Newborns Get $500 Each?
Continue reading… 11 CommentsA proposed bill that would give each American baby a $500 savings account rubs a lot of people the wrong way: After my recent story on the legislation, dozens of readers wrote in to express their dismay. Sam from Massachusetts wrote, "Enough is enough. This would be insanity. Who gives the government the right to tax us all and pay for this." Katie of Missouri agreed: "What happened to supporting your own family? This is outrageous and I would like the names of the Republicans that support such idiocracy."
George from California dubbed it a socialist policy; Seth from South Carolina preferred the term "nanny state." Even Jay Leno got in a jab at the bill during his monologue last night. He joked that illegal immigrants would be lining up to give birth in this country if each baby received $500.
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Preparing for Inevitable Life Events
Continue reading… 2 CommentsToday's guest post comes from Mark Gavagan, author of two workbooks that help families plan and organize their personal and financial affairs: The It's All Right Here: Life & Affairs Organizer, an in-depth binder of information, and 12 Critical Things Your Family Needs To Know, which more quickly covers the essential topics.
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Audio: Hidden Fees on Credit Cards
Continue reading… 1 CommentOver the weekend, I spoke with WTOP in Washington about the hidden credit card fees we all pay each time we buy anything with a credit card. The merchant pays 2 percent of the purchase price to the bank that issues the card. (The fee is known as the "interchange fee.") Merchants are now lobbying Congress to limit those fees, which they say cut into their own bottom lines.
Hidden Fees on Credit Cards
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The Fine Print Behind Credit Card Rewards
Continue reading… 3 CommentsToday's guest post comes from Odysseas Papadimitriou, founder and chief executive officer of Evolution Finance, which is the parent company for Wallet Blog and Card Hub.
In the last year, 15 percent of American adults, or nearly 34 million people, have been late making a credit card payment. Additionally, the credit card default rate in 2009 was the highest it’s been since 1991. These days, many cardholders have no choice but to miss one or more of their credit card payments. However, what many consumers don’t realize is that by doing so, they may not only be damaging their credit score, but also sacrificing the benefits that their credit card reward programs offer.
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How to Rebuild Credit, Post-Bankruptcy
Continue reading… 2 CommentsDear Alpha Consumer,
My wife and I just emerged from bankruptcy. Before that, we both had excellent credit scores and access to good credit cards with major lenders. Unfortunately, I've been laid off three times since 9/11 because of company downsizing, and we had to charge our health insurance COBRA payments and food and other essentials to our credit cards. We only started making late payments on the advice of our lawyer, who said we had to be late prior to filing for bankruptcy. -
Gwyneth Paltrow Offers Budgeting Advice
Continue reading… 2 CommentsIn the current issue of her newsletter GOOP, Gwyneth Paltrow offers personal finance tips, ranging from how to beat inflation to how to stick to a budget. An article by fund manager Rod Rehnborg urges people to invest savings in vehicles that will earn more than the rate of inflation. Personal finance guru Lynnette Khalfani-Cox offers 10 tips on how to save more, including negotiating discounts, boosting your credit score, and taking a stopwatch on shopping trips. Khalfani-Cox writes:
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Frugal Living: Embedded in American History
Continue reading… 0 CommentsLauren Weber grew up in a family that values frugality. Her father, in particular, avoids waste wherever he can: He uses tea bags up to a dozen times and keeps the thermostat tuned to an almost-frigid 50 degrees. That experience inspired Weber to write In Cheap We Trust: The Story of a Misunderstood American Virtue, that challenges the idea that being "cheap" is a bad thing, or something shameful. She looks to American history, as well as contemporary culture, to show that frugality is thriving, and popular. While we might not use earwax as lip balm, as one thrifty writer recommended in the 1800s, other creative techniques, such as dumpster diving for food, are alive and well. Here are excerpts from my recent conversation with Weber:
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'Stingy Scoundrel' Spills His Secrets
Continue reading… 1 CommentToday's guest post comes from Phil Villarreal, a contributing editor at the Consumerist, reporter at the Arizona Daily Star and film critic at OK! Magazine. His humorous money-saving book, Secrets of a Stingy Scoundrel, is now in stores.
Alpha Consumer readers, I’m sorry to report that you’ve been scammed. Instead of getting to benefit from the wise financial advice of Kimberly Palmer, you’re stuck with a guest writer. And the least trustworthy type of guest at that—one with a book to peddle.
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Audio: Why Renters Insurance Is Worth It
Continue reading… 0 CommentsOver the weekend, I spoke with WTOP about the benefits of taking out renters insurance. Most young adults don't have it, despite the fact that many value their belongings at over $10,000. Renters are also more at risk for theft than homeowners. In a big city, renters insurance for a one-bedroom can start at around $100 a year—less than $10 a month.
Why You Should Get Renter's Insurance
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John Bogle: Why We Have 'Enough'
Continue reading… 5 CommentsJohn Bogle, the founder of Vanguard, is frustrated not only with the financial world, but also with how many of us seem to focus too much on stuff, and not enough on the more important things in life. In his book Enough, he reflects on his career and life experiences to offer ideas on how to counter our culture of greed and complicated materialism. At 79, he sounds a bit like a wise grandfather gathering his readers by his side for a long, cozy chat.
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Getting 'Financially Naked' in Relationships
Continue reading… 1 CommentIn Manisha Thakor and Sharon Kedar's new book, Get Financially Naked: How to Talk Money with Your Honey, the authors argue that many women make the mistake of relying too much on the men in their lives to provide financial security. That's despite the fact that one-third of women earn more than their husbands and recent research from the Center for American Progress shows that 5.4 percent of working wives now have husbands who are unemployed, up from 2.4 percent in 2007. Thakor and Kedar say it's time for women to take more control, starting with honest conversations about finances. Here are excerpts from our recent conversation:
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Shopper's Dilemma: Is More Better?
Continue reading… 6 CommentsFast Retailing, the Japanese company that's been getting a lot of attention lately for its cheap but trendy clothing, raises the classic shopper's dilemma: Is it better to buy fewer, more expensive items, or a larger selection of cheaper ones?
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The Cost of Getting Married
Continue reading… 2 CommentsMarriage has long been advocated as a way to counteract poverty, since something about making a lifetime commitment seems to help generate wealth. That's one reason some people advocate public policies that encourage walks down the aisle, from subsidized marriage counseling to tax credits. But recent research by professors at Saint Mary's College and the University of Notre Dame found that in some cases, current tax policies penalize marriage, especially among low income couples.
