Tuesday’s need-to-know money news

Credit card backgroundHow to avoid wrecking your credit, using your credit card to support your pet causes, and the most underrated jobs in America.

5 Habits That Can Wreck Your Credit
Complacency is a credit killer.

5 Tips to Help 50-Somethings Make Ends Meet
These tips can also help ease the transition into retirement.

How to Pick a Socially Responsible Credit Card
How your credit card can benefit the causes you support.

3 Ways to Make Your References Most Effective
Getting the most from your former employers.

What are the most underrated jobs?
What do a librarian, EMT and accountant have in common?

Credit denial: a corporate trick or cause for alarm?

Dear Liz: A few years ago when buying my son his college laptop computer, I applied for the store card at a big, well-known electronics store (at the encouragement of the sales associate). I was denied. I have never been denied a credit card before. I have eight cards that are always paid off monthly, own my own home and have a satisfactory retirement income and a top credit score. By receiving the card, I would have had a substantial savings on the computer. The denial has bothered me ever since. Was this a ploy on the company’s part to deny me the savings?

Answer: That kind of bait-and-switch happens sometimes, but there may be other reasons you were denied.

When you were turned down, the company should have provided you with the name, address and phone number of the credit agency it used to evaluate you. You should have immediately requested your report from the agency to see if the information was accurate. Someone may have stolen your identity, and credit denials are often the first sign many victims have that there’s a problem.

A collections account also could have torpedoed your scores. Many people discover that a medical bill, library fine or parking ticket went unpaid only when they find the resulting collections on their credit reports.

Monday’s need-to-know money news

Chevy VoltSaving for the holidays, how to manage your finances while having ADHD, and how letting Big Brother ride shotgun could save you money on car insurance.

Why You Need to Save Now for Christmas
Yes, it’s only September. No, that’s not too early.

5 Years After Financial Crisis: Meet the New Consumer
The financial crisis of 2008 changed the way we shop and spend.

Budgeting After College
Even though you can finally afford more than ramen noodles, post-college life still requires budgeting.

Managing your finances when you have ADHD
Having ADHD can make managing your finances difficult, but there are strategies for making it easier.

Should You Let Your Car Insurance Company Spy On You?
Having Big Brother in the car could reduce your insurance rates.

Something to be proud of

As you may know by now, I won’t be writing for MSN after Sept. 30, when the site pulls the plug on original content. (Translated: instead of paying writers, MSN will be getting its articles for free from other sites.)

I don’t know what’s next, but I’m kind of excited by the possibilities that are presenting themselves. Expanding this site, doing more on the radio, writing for long-admired outlets that are doing great work, delving deeper into the worlds of sustainability, alternate consumerism and zero waste….mmmmm. Tasty, tasty possibilities.

I feel incredibly grateful that our family is in good financial shape (although as one friend said, “If YOU aren’t in a good position to handle this, what hope do the REST of us have?”). Hubby is gainfully employed and his sideline business is taking off. We have a fat emergency fund. We’ve had to cancel the remodel of our 1980s kitchen (stifled sob), but honestly, everything works and looks fine and I’m embarrassed I even care, given what so many families are up against these days.

Before I can move on to other things, though, I have to finish my last columns for MSN. A friend and I were laughing about how ridiculously hard it is to make yourself sit down and write when you know it doesn’t matter.

I’m having a flashback to the last time I was laid off, which was more than 20 years ago. Our leaders at the Anchorage Times informed us in an early-afternoon meeting that the last press run would be that night, and that venerable paper would be no more.

Everybody else filed their last stories and headed off for the bar. But my beat was the city, and there was a city council meeting that night (up there it’s known as the “municipal assembly”). So while my colleagues and friends were drowning their sorrows, I had to try to pay attention to this motion and that notice. As the meeting dragged on, I got more and more sullen, desperate for it to just end already so I could join my shell-shocked buddies at the bar.

Then Mark Begich, who was the youngest Assembly member at the time (and who’s now a U.S. Senator), brought up the news that the Times was closing. I half expected him to lead a cheer, as he was a pretty progressive lawmaker and the Times’ editorial stance was decidedly conservative. Instead, he asked the chamber to join him in a round of applause–for me. I forget exactly what he said, but I remember it was flattering, and had something to do with being fair and maintaining high standards. The whole Assembly, which included a few members who were not always happy with my nosy (and sometimes stupid) questions, joined in.

I filed my story. I tried to make it as good as I could. The editors and copyeditors and pressmen who also had to stay late did their jobs as well as they could, too. Everyone who was at the bar streamed back to watch that final press run, and thought about how, for a while there, we’d created something to be proud of. Then we scattered into the night and into the rest of our lives.

So please watch for my last couple of MSN columns. I’ll make them as good as I can. The editors and copy editors who are still there will do their jobs as well as they can, too. For a while, we created something to be proud of. And now we’ll scatter into what’s next.

Friday’s need-to-know money news

CollegeWhy Generation X needs to accept the inevitable, coping with a layoff, and how the key to financial prosperity could be inside a funeral home.

Survey: Gen X seriously short on life insurance
Note to Gen Xers: You’re not getting any younger.

3 Ways You May Be Throwing Money Away Without Realizing It
Hands off that retirement account.

What to Do if You Just Got Laid Off
What you need to do once the panic subsides.

4 Tips to Help 30-Somethings Save for a Rainy Day
In every life, a little rain must fall.

10 Unusual Jobs That Pay Surprisingly Well
What cruise ship entertainers, hot dog vendors, and morticians have in common.

Are prepaid cards good for an allowance?

Dear Liz: My son is 12 and receives a regular monthly allowance that I’ve been giving to him in cash. I think it might be time for a checking account. I would like to teach him about using a debit card and not overdrawing his account. All the banks that I have called will not open an account for a minor, even a joint account. I’ve heard about prepaid cards being used for allowances, but I’m concerned about the fees.

Answer: You’re right to be concerned. You wouldn’t be teaching financial responsibility — the whole point of an allowance — if you gave him a prepaid card larded with fees to access his own money.

Prepaid cards, also known as prepaid debit or reloadable cards, typically aren’t linked to a checking account as regular debit cards would be. Instead, you can “load” them with cash in a variety of ways and then use the card to spend that money wherever regular debit cards are accepted. Many prepaid cards also can be used to withdraw cash at ATMs.

Unfortunately, many issuers charge fees to open, use and close their cards. Monthly “maintenance” fees and fees to replace cards or talk to customer service are common. Some of the most expensive cards are the ones endorsed by celebrities. Those marketing expenses have to be recouped somehow, and fat endorsement contracts often seem to be paid for with higher-than-average fees.

Anisha Sekar, vice president of credit and debit products for card comparison site NerdWallet, recommends two cards for allowances: the Bluebird from American Express and the Chase Liquid.

The Chase Liquid card doesn’t charge most of the usual fees. There’s no fee for activating a card, closing an account, getting paper statements or paying bills. The card can be loaded with money for free at a Chase bank branch or Chase ATM. Withdrawing cash at a Chase branch or Chase ATM is also free. The monthly fee is $4.95, but it’s still one of the cheapest cards available, she said.

The Bluebird doesn’t charge a monthly fee, and activating the card is free if you apply online. The card allows free ATM withdrawals within the MoneyPass network if the cardholder is enrolled in direct deposit; other withdrawals incur a $2 fee. The card can be loaded for free from a bank account or by using cash or a debit card at a Wal-Mart. Loading with a debit card costs $2.

You’ll still face age limits, but there’s a work-around. Most cards have to be opened by someone 18 or older. A child must typically be 15 or older just to have his name on the account as a joint user. (With the Bluebird the age limit is 13.) So you would have to open the card in your own name and then give it to your son to use.

Another option may be to simply wait a year. Some national banks, including Wells Fargo and Chase, offer teen checking accounts for those 13 and older, although the accounts may not be available in all areas.

No spouse, no kids. Time to cancel life insurance?

Dear Liz: I am 43 and divorced. I have a mortgage and an auto payment. I fully fund my 401(k) each year and am funding a Roth IRA. I also have emergency savings of $30,000 and a term life insurance policy for $350,000. What I don’t have is children or a spouse. I am thinking of canceling the policy, but is this a good idea?

Answer: The most important question to answer about life insurance is whether you need it. If no one is financially dependent on you, the answer is probably no.

Then again, canceling your policy is a bet that your life isn’t going to change — that you won’t someday have a partner who may need your income to pay the mortgage or other expenses, for example. If you’ve canceled your policy, you may find it difficult — not to mention more expensive — to get similar coverage later.

Term insurance is typically fairly cheap. Current quotes for a $350,000 30-year level term policy for a woman your age are typically between $40 and $60 a month. You’ll have to weigh whether the savings is worth what you’d be giving up.

Does charged-off debt disappear?

Dear Liz: I understand that creditors eventually write off unpaid debts and receive a federal tax deduction for the loss. Then they sell that “debt” to a collection agency. However, isn’t the debt rendered void by the fact the original creditor charged it off and got the deduction? So how can collection agencies attempt to collect an invalid debt?

Answer: Charging off a debt and taking the tax deduction for the loss indicates the original creditor doesn’t believe it can collect the money. That doesn’t render the debt invalid or erase it in a legal sense. Debts typically exist until they are paid, settled or wiped out in Bankruptcy Court.

Thursday’s need-to-know money news

School Kids DiversityWhy joint accounts aren’t always a good thing, how to raise financially savvy kids, and the psychology behind overspending.

4 Ways Joint Accounts Can Ruin Your Credit
Sharing isn’t always a good thing.

7 Personal Finance Tools Every Kid Should Have
Starting your kids off on the right financial foot.

ABCs of Obamacare: a glossary for consumers
Become familiar with the Affordable Care Act.

How to Know You’re Ready for Retirement
Preparing for one of life’s biggest transitions.

3 Reasons You Overspend
What makes us spend the way that we do?

Wednesday’s need-to-know money news

creditWhich debts you should settle before applying for a mortgage, what to glean from your free credit report, and why crowdfunding is no longer just for opening a new coffee shop.

The Right Way to Pay Off Debt to Get a Mortgage
Which debts you should pay off before trying to get a mortgage.

The Ten Commandments of Personal Finance
Ways to avoid financial confession.

4 things you don’t know about 529 plans
What you should know before withdrawing funds from the popular college savings program.

5 lessons from free credit score notices
Things to keep in mind while reviewing your free credit reports.

Crowdfunding for Student Loan Debt?
Could the Kickstarter method be used to paid down student loans?