HealthyLife Articles

Tag: saving

  • Save For More Than Just A Rainy Day

    Financial Health

    Invest in your future.

    Money doesn’t grow on trees, but it can grow when you save and invest it wisely. First, identify what you want to save for:

    *  Emergency funds? (Plan for three to six months of expenses.) Holiday expenses? Vacations? A house? College for your kids? Retirement?

    *  Rank order your goals.

    Invest, but do not put all your eggs in one basket.

    Diversify with stocks, bonds, mutual funds, IRAs, real estate, and commodities, such as gold and silver. Find out more about investing fromwww.mymoney.gov. Things you can do on your own:

    *  If your employer has a retirement plan, such as a 401(k), have as much deducted from your pay as possible, especially if your employer matches some or all of the amount you contribute.

    *  Get resources on planning for retirement and long-term care fromwww.csrees.usda.gov/fsll.

    *  Check out “529” prepaid tuition and savings plans for college fromwww.collegesavings.org. These offer tax-saving advantages.

    *  Get professional investment advice from employer sponsored programs or from your financial planner. Find a certified professional from the Association for Financial Counseling and Planning Education atwww.afcpe.org.

    Revisit your budget:

    *  Pay off credit card or high interest debts first. Then use some or all of the payment money for your savings plan.

    *  Put aside whatever you can in savings accounts, checking accounts, and certificates of deposit.

    *  Look for additional ways to save fromhttp://investor.gov/sites/default/files/Saving-and-Investing.pdf

    *  Decide the best ways you are likely to save money.

    – Have your paycheck automatically deposited in your bank and have some go directly into one or more savings accounts.

    – Save money you get from tax refunds, work bonuses, and extra income.

    Action Step

    Beware of investments that promise high returns with little or no risk. If it sounds too good to be true, it usually is.

    Ways to Well-Being. Published by the American Institute for Preventive Medicine.

    © American Institute for Preventive Medicine

  • Make The Most Of Your Health Care Dollars

    SELF-CARE CORNER

    Image of doctor taking a patient's blood pressure reading.

    So you’ve got that high deductible health plan or flexible spending account. How can you save money-and spend your dollars wisely? Blue Cross Blue Shield of Delaware offers these suggestions:

    *Stay in-network.Make sure your doctors, laboratory, and hospital are a part of your health plan’s provider network so you save on copays and coinsurance amounts.

    *Use alternatives to emergency services.A visit to the hospital ER is generally unnecessary for issues such as the flu, minor cuts and sprains, or urinary tract infections. Overall costs are usually lower at walk-in clinics and urgent care centers. Check your health plan’s provider directory for nearby centers.

    *Take the tests.Receive the screenings, tests, vaccines, and other care that your plan covers, as recommended by your doctor. When you and your family stay healthy, you can avoid doctor visits and time off from work.

    *Take your medicine.To receive the full benefit of your medicine, remember to take the recommended dosage for as long as your doctor prescribes it. People who take their medicine as prescribed need less health care-and less expensive care. If you don’t understand how to take your medicine, ask your doctor or pharmacist.

    *Find the best price for the medication you need.Always ask if a generic prescription drug or an over-the-counter (OTC) drug would be best for you. For any brand-name drug, research the manufacturer before you fill the prescription. Then check its website for any discount coupons or free copay programs that may be available for that drug.

    © American Institute for Preventive Medicine

  • Piggy Bank Smarts

    FINANCIAL HEALTH

    Image of hand placing a dollar bill into a piggy bank.

    Smart money management begins at home. Washington University researcher Michal Grinstein-Weiss found that teaching kids about money in childhood helps them better manage their mortgage loans as adults. The study was in Social Work Research.

    The professor offers 5 ways parents can teach their kids financial literacy:

    1. Discuss and explain basic finances around the dinner table, especially the difference between needs and wants.

    2. Teach kids how to save and set short-term goals (a new toy) and long-term goals (college). Kids will follow by example if they see you saving for something such as a family vacation.

    3. Open a savings account for your child as early as possible. Even if you bank online, visit the bank with your child to make a deposit because actions reinforce behaviors. Review monthly statements together.

    4. Teach kids budgeting and money-management skills. Help your child figure out how much money to save for how long to reach a goal amount.

    5. Get kids involved in daily activities and decisions about spending. Take them grocery shopping and have them compare prices of different brands. Count out the cash during a sale.

    © American Institute for Preventive Medicine

  • Save More, Spend Less

    FINANCIAL HEALTH

    Image of women at kitchen counter with groceries and placing money in a piggy bank.

    According to the American Psychological Association, finances are the number one cause of stress in America. Whether it’s meeting the monthly bills or trying to build a retirement fund, financial worries can be difficult to deal with.

    If you’re looking for ways to stretch your monthly budget, the Federal Trade Commission offers some tips that may help you save more and spend less without feeling the pinch.

    Start with a budget.

    This may not be fun, but it doesn’t have to be long and difficult. You can use something as simple as a two-column sheet of paper. In one column, write your net income for the month. In the other column, record all your expenses: basic monthly bills (mortgage, food, transportation), lifestyle choices (entertainment, eating out, personal care, pets), and other expenses. This will give you a clear idea of how much you need to save or cut back on spending. The FTC website offers a free budget worksheet atwww.consumer.ftc.gov/articles/pdf-1020-make-budget-worksheet.pdf.

    Consider direct deposits into savings accounts.

    Have part of your paycheck go directly into a 401 savings or other type of retirement account. Have additional money put into another savings account for an emergency fund and major expenses as needed.

    Pack lunches.

    A daily $6 spent on lunch adds up to $800 a year. Instead, make extra food for dinner and take leftovers or make your own sandwich. Or, purchase healthy frozen meals when they’re on sale.

    Use free community services.

    Most cities have well-stocked libraries that have books, magazines, music, games, and movies. You can check these items out for free.

    Know that every little bit helps.

    Make small, manageable goals to help you save. Even just $1,000 less on your credit card bill could save you hundreds of dollars in interest each year. Eating out one fewer time each week adds up to big savings in a few months. Rather than being discouraged by a goal that seems impossible, look for small, doable ways to save a few dollars here and there.

    © American Institute for Preventive Medicine

  • Teaching Kids To Manage Money

    FINANCIAL HEALTH

    Image of boy holding money in one hand and thumbs up with the other hand.

    Good money management habits start early. In fact, even preschool age children can begin to learn about money and how to use it responsibly. Parents and caregivers have the power to teach children about proper spending, saving and sharing from a young age.

    Preschool age

    *  Use play money to “buy” items.

    *  Teach children about work. Tell them how your job helps you pay for things like food and clothes.

    *  Take them to the grocery store and talk about what items cost.

    *  If children get money for a birthday or holiday, have them put it in their piggy bank instead of spending it right away.

    School age

    *  Discuss the prices of items while shopping. Show your kids your shopping receipts and explain how much items cost.

    *  Have kids help you clip coupons and talk about how much you can save.

    *  Open a savings account for your child.

    *  Consider giving an allowance for chores. Talk to them about saving their allowance to buy something later, rather than spending it all now.

    Teenagers

    *  Show your teen how to balance a checkbook.

    *  Discuss responsible credit card spending and avoiding credit card debt.

    *  If your teen has a job, talk about taxes and help them fill out their income tax form.

    *  Explain how automobile and health insurance works.

    Don’t feel pressured to give your child a complete course in finances. Children learn by watching others, so setting a positive example for spending and saving is a great way to teach.

    Source: University of Minnesota Extension

    © American Institute for Preventive Medicine