Identity theft is a danger when tossing sensitive documents.

Better Business Burea

When you start cleaning out household papers that have accumulated over the months (or years), keep in mind that failure to shred sensitive materials puts you at risk for ID theft.

You have decided it’s time to get rid of household paperwork that is stashed away in various places. The Better Business Bureau (BBB) warns that, when it comes to reviewing and cleaning out financial records, failing to shred sensitive documents can put everyone at risk of ID theft.

Last year alone, 8.1 million Americans became victims of ID theft resulting in the loss of $45 billion. Contrary to popular belief, only 12 percent of ID theft is perpetrated online. The vast majority of ID theft occurs when the thief has direct contact with the victim’s personal information such as through a stolen or lost wallet, or by rifling through the victim’s mailbox or trash.

When people think of ID theft, they almost immediately focus on hackers and online security, the BBB noted. However, most ID theft happens when people have failed to secure or properly destroy important financial information including paper documents, IDs, and credit cards.

Properly destroying sensitive personal and financial documents is a key step in ID theft prevention and the BBB offers the following guidelines on when to shred the following documents:

Canceled checks
Canceled checks with no long-term significance for tax or other purposes can be destroyed after one year. However, canceled checks that support tax returns, such as charitable contributions or tax payments, should be held for at least seven years – long enough to cover the six-year tax assessment period. The BBB advises that consumers should indefinitely keep any canceled checks and related receipts or documents for a home purchase or sale, renovations or other improvements to owned property, and non-deductible contributions to an Individual Retirement Account.

Deposit, ATM, credit card and debit card receipts
Consumers should save credit, debit, and ATM receipts until the transaction appears on their statement and they have verified that the information is accurate.

Credit card and bank account statements
Credit card and bank account statements with no tax or other long-term significance can be discarded after a year; remaining statements should be kept for up to seven years. If a consumer receives a detailed annual statement, they should keep it and shred the corresponding monthly statements.

Credit card contracts and other loan agreements
Credit card contracts and loan agreements should be kept for as long as the account is active in case the consumer has a dispute with their lender over the terms of the contract.

Documentation of a purchase or sale of stocks, bonds and other investments
Investors should retain documentation of a purchase or sale for as long as they own the investment and then seven years beyond that time. Monthly or quarterly retirement investment account statements can be shredded annually after being reconciled with the year-end statement.

Paycheck stubs
Paycheck stubs can be shredded yearly after the income has been reconciled with a W-2 or other tax forms.

Utility or monthly bills
Monthly bills should be shredded the year after being received by the consumer. This way, if it’s a power bill, for example, consumers can compare the current bill to the bill for the same month last year for any major changes before shredding it.

Shred-it Checklist - Don’t just toss it, shred it!

• Documents that include Social Security numbers, birthdates, PIN numbers or passwords
• Banking documents and other financial information
• Leases, contracts or letters that include signatures
• Pre-approved credit card applications
• Medical or dental bills
• Travel itineraries
• Used airline tickets

For more advice from the BBB on preventing ID theft and for guidance on what to do if your identity is stolen, go to www.bbb.org.

NEA Member Benefits now offers NEA ID Theft Protection, with both individual and family coverage. Get details at www.neamb.com/idfraud.

This article, and hundreds more, can be found in the “Member Library” section on the NEA Member Benefits Web Site at www.neamb.com.

Here are some proven strategies for purchasing your next home.

Nolo (by Ilona Bray, J.D)

There are ways to find a good house at a comparatively reasonable price. This article contains proven strategies to finding the right door to the housing market.

Find the right door into the housing market. Are you experiencing sticker shock? Houses are almost never sold at bargain-basement prices. Still, with some effort and patience, there are ways to find a good house at a comparatively reasonable price.

Buy a stigmatized or overlooked property. In any market, a few houses get passed over, sometimes because they were simply overpriced to begin with and then got forgotten by buyers, other times because there’s something wrong with them -- maybe they smell like cigarette smoke or were the site of a violent crime. If you can live with or correct the problem and can negotiate a lower price, you may have yourself a deal.

Buy a fixer-upper, cheap. Houses that need work always sell for less, although you'll need to estimate the repair costs carefully to make sure it's a true bargain.

Buy a small house with remodeling potential, and add on later. Before buying, get a contractor's estimate and check local zoning laws to be sure your dreams are feasible.

Buy a shared equity house, pooling resources with someone other than a spouse or partner. This may mean either having an outside person invest in your house and gain a share of the profits when you sell, or simply sharing a purchase with someone who will live with you. It's a trend! For more information, see Cobuying a Home.

Rent out a room or two in the house, or buy a duplex, triplex, or house with a rentable in-law unit. Depending on your local rental market, the added income from rent may offset a good portion of your mortgage. And talk to your accountant: Renting is a sort of business, so you’ll need to add a Schedule E to your taxes. On the plus side, you can deduct a prorated portion of your home expenses and depreciation from the rental income.

Buy a house at an estate or probate sale. A house that belonged to someone who passed away can be a bargain, usually because the deceased person's family members are eager to get the cash out of the property. However, you may have to attend some court proceedings.

Buy a house subject to foreclosure (when a homeowner defaults on the mortgage). Houses subject to foreclosure or that have been foreclosed on are sometimes cheaper because the homeowner needs to sell quickly, or the bank has stepped in to sell the property, possibly at auction. However, it's a risky way to buy a house, because you can't always do physical inspections, and the current owner may have a right to pay off the debts and reclaim the house within a certain time.

Buy a house at an auction. House auctions, both live and online, are gaining in popularity. Just make sure you're given opportunity to inspect what you're buying before you get caught up in auction fever.

For the details on all of these strategies, see Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart.

Copyright 2008 Nolo

Nolo is the leading publisher of self-help legal publications, software and forms. NEA members get a 10% discount on books, forms and software at Nolo.com—that's in addition to the substantial discounts already available on their web-site. To view Nolo products and take advantage of the 10% discount, click here: Nolo Discounts

This article, and hundreds more, can be found on the NEA Member Benefits Web Site in the “Member Library” section: www.neamb.com/consumer_articles.jsp.

Find Out About NEA DUES-TAB Insurance, A Free Benefit for NEA Members

From NEA Member Benefits

DUES-TAB® is an NEA benefit provided by the NEA Members Insurance Trust at no cost to Active, Staff, Reserve, and Life Members (Life Members must be actively employed in the field of education). Since the DUES-TAB program began, more than $25 million in claims has been paid out to NEA members. Here's the coverage you get as a free benefit:

Term Life Insurance Benefit. If the death of an eligible member is due to natural causes, the benefit payable is $200 per year of continuous membership -- up to a maximum benefit of $1000.

Accidental Death Insurance Benefit. If the death of an eligible member is caused by an accident or assault, the benefit payable is $1,000 per year of continuous membership up to a maximum benefit of $5,000.

Accidental Dismemberment Insurance Benefit. In the event a dismemberment of an eligible member is caused by an accident or assault, the benefit payable is $1,000 per year of continuous membership up to a maximum benefit of $5,000.

Higher benefits apply while you are on the job or serving as an association leader.

• You are eligible for up to $50,000 of Accidental Death and Dismemberment insurance for any covered accident that occurs while on the job or serving as an Association leader.
  
• You are eligible for up to $150,000 of life insurance coverage for unlawful homicide while you are on the job.

Coverage is automatic, but you must register your beneficiary. You can register (or change) your beneficiary online at the NEA Member Benefits Web Site. Just click here: http://www.neamb.com/insurance/linall.jsp

To obtain a copy of the revised NEA DUES-TAB Summary Plan Description, please call the NEA Member Benefits Member Service Center toll free at 1-800-637-4636, Monday - Friday, 8 a.m. to 8 p.m. (or Saturday, 9 a.m. to 1 p.m.) ET. Hearing impaired members may call toll-free, 1-800-445-1269 TTY.

Financial planners say one of the best ways to get quality, low-cost life insurance is through a professional association, like NEA. It's easy to apply online, and you never have to deal with an agent. Rates are negotiated on a group basis. NEA Members Insurance Trust life insurance plans offer great features at competitive rates. To learn more about NEA group life insurance, call toll free 1-800-637-4636. Or get policy information and rates, and apply online at www.neamb.com/insurance/index.html.

Whether a fixed rate or adjustable rate mortgage is better depends on your needs and the current market.

Nolo

Before choosing a mortgage, you need to understand the differences between mortgage types: fixed rate mortgages, adjustable rate mortgages, and interest-only mortgages.

Before choosing a mortgage, you need to understand the differences between mortgage types: fixed rate mortgages, adjustable rate mortgages, and interest-only mortgages, to name a few.Fixed Rate Mortgages

Fixed Rate Mortgages

With a fixed rate mortgage, the interest rate and the amount you pay each month remain the same over the entire mortgage term, traditionally 15 or 30 years. You can use Nolo's fixed rate mortgage calculator to figure out your payment. A number of variations on fixed rate mortgages are available, including five- and seven-year fixed rate loans with a balloon payment at the end. (Nolo also offers a balloon payment calculator.)

Adjustable Rate Mortgages (ARMs)

With an adjustable rate mortgage (ARM), the interest rate fluctuates according to the interest rates in the economy. Initial interest rates of ARMs are typically offered at a discounted ("teaser") interest rate that is lower than the rate for fixed rate mortgages. Over time, when initial discounts are filtered out, ARM rates will fluctuate as general interest rates go up and down.

Different ARMs are tied to different financial indexes, some of which fluctuate up or down more quickly than others. To avoid constant and drastic changes, ARMs typically regulate (cap) how much and how often the interest rate and/or payments can change in a year and over the life of the loan. Use Nolo's adjustable rate mortgage calculator to figure out your payment.

Several variations are available for adjustable rate mortgages, including hybrids that change from a fixed to an adjustable rate after a period of years, or "option ARMs" that allow you to choose, on a monthly basis, whether to pay a minimum amount, an interest-only amount, an ordinary principal plus interest amount, or an accelerated payment amount.

Interest-Only Loans

A popular option recently has been "interest-only" loans, which allow you to pay only the interest amount each month -- not any principal -- for the first several years of the loan. This can lower your initial monthly payments significantly, allowing you to afford more house. But eventually you'll have to pay off the loan balance, and the shift in monthly payments can be a shocker. Most interest-only loans are adjustable, but it's possible to find fixed rate interest-only loans, too.

• How to Choose the Best Mortgage
• Next comes the question of which is better. Because interest rates and mortgage options change often, your choice should depend on:
• the interest rates and mortgage options available when you're buying a house
• your view of the future (generally, high inflation will mean ARM rates will go up and lower inflation means that they will fall)
• your personal financial and investment goals
• how willing you are to take a risk

When mortgage interest rates are low, a fixed rate mortgage is the best bet for many buyers. Over the next five, ten, or thirty years, interest rates are more apt to go up than further down. Even if rates could go a little lower in the short run, an ARM’s teaser rate will adjust up soon and you won't gain much if you plan to stay in the house more than a few years (the broker can tell you your break-even point). In the long run, ARMs are likely to go up, meaning many buyers will be best off locking in a favorable fixed rate now and not taking the risk of much higher rates later.

To tie it all together, Nolo's free mortgage comparison calculator allows you to enter the terms (rates, points, closing fees) of up to three different mortgage types to compare their value (total payments, taxes saved, and present value).

Refinancing (Refi) Options

Keep in mind that lenders not only lend money to buy homes; they also lend money to refinance homes. For example, if you take out a fixed rate loan now, and several years from now interest rates have dropped, refinancing will probably be an option.

There are several downsides to refinancing, however. Unless you can negotiate a low-cost refi, you may have to pay the same fees and points as for an original mortgage. This means you may reduce your monthly payment right away but not actually begin to save money on the refi for several years. (You can use Nolo's refinancing calculator to determine when you'll break even.) If you think you'll be moving again soon, a refi may not make sense.

Also, if you default on a refinanced mortgage, your position under your state's law can get worse. In California, for instance, when a homebuyer defaults (stops paying the mortgage), the lender can foreclose on the house but take nothing else from the homebuyer, while on a refinanced mortgage, it can go after the homebuyer's cash and other assets, after the house, to satisfy the debt.
Copyright 2007 Nolo

Nolo is the leading publisher of self-help legal publications, software and forms. NEA members get a 10% discount on books, forms and software at Nolo.com---that's in addition to the substantial discounts already available on their web-site. To view Nolo products and take advantage of the 10% discount, click here:Nolo Discounts

This article, and hundreds more, can be found on the NEA Member Benefits Web Site in the “Member Library” section:   www.neamb.com/consumer_articles.jsp

Here Is What to Do

From the Federal Trade Commission

The Fair Credit Billing Act (FCBA) and the Mail or Telephone Order Merchandise Rule offer protections and procedures for consumers so they don't have to pay for merchandise they ordered but never received.

Billed for Merchandise You Never Received?
 

You found the perfect set of linens in a mail order catalog. You call to place your order and charge it to your credit card. You're told that your linens should arrive in two weeks. Two weeks go by, then three and four, and still no linens. What you do get is your credit card bill with a charge from the catalog company.

So, just what do you do when you get a credit card bill but no merchandise? Get frustrated, to be sure.

But the error can be corrected. The Fair Credit Billing Act (FCBA) and the Mail or Telephone Order Merchandise Rule offer protections and procedures for consumers so they don't have to pay for merchandise they ordered but never received.

In addition, many credit card issuers have policies against merchants charging a credit card account before shipment. If you think a merchant charged your account prematurely, report it to the credit card issuer. Otherwise, the credit card issuer has no way to know that the merchant is not complying with its policies.

The Fair Credit Billing Act

To dispute a billing error on your credit card, you must:

• Write to the credit card issuer at the address for "billing inquiries," not the address for sending your payments (the address for billing inquiries is often found on the back of your most recent monthly statement); include your name, address, account number and a description of the billing error.
• Send your letter so that it reaches the credit card issuer within 60 days after the first bill containing the error was mailed to you.
• Send your letter by certified mail, return receipt requested, so you have proof of what the credit card issuer received. Include copies (not originals) of sales slips or other documents that support your position. Keep a copy of your dispute letter.
• It is important to send the letter to the correct company. In the case of Visa and MasterCard, you should send it to the bank that issued the card.

The credit card issuer must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has already been resolved. And the credit card issuer must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

What happens while your bill is in dispute?
You may withhold payment on the disputed amount (and related charges), during the investigation, but you must pay any part of the bill not in question, including any finance charges on the undisputed amount.

The credit card issuer may not take any legal or other action to collect the disputed amount and the related charges (including finance charges) during the investigation. While your account cannot be closed or restricted, the disputed amount may be applied against your credit limit.

You placed an order with a catalog company and they charged your credit card immediately. The catalog company contacts you two weeks later and says the shipment will be delayed 60 days. You agree to the delay. The 60 days have passed and you don't have the merchandise. Can you still dispute the charge?

Maybe. In delayed shipment situations, credit card issuers often are more generous when they calculate the time for allowing disputes. To take advantage of this flexibility, include the following information in your dispute letter.

• Tell the credit card issuer if the premature charge was unexpected. Some credit card issuers make an exception to the general industry rule against merchants charging before shipping if the merchant tells you about its practice at the time of sale. If you're certain the merchant said nothing or wasn't clear about its charge practice, the credit card issuer is more likely to allow the dispute.
• Tell the credit card issuer when delivery was expected. In no delivery situations, some credit card issuers will use the expected date of delivery rather than the charge date as the start time for you to dispute charges. If you dispute the charge within a reasonable time after the expected delivery date passes, chances are good that the credit card issuer will honor the dispute. When you order or when a merchant notifies you of delayed shipment, it's important to keep a record of the promised shipment or delivery date. Include a copy of any documentation of the shipment or delivery date when disputing the charge with your credit card issuer.

What if you used a debit card to pay for the merchandise? The consumer protections for a debit card fall under the Electronic Fund Transfer Act and may differ from protections for a credit card under the FCBA. So you may not be able to dispute a debit and get a refund for non-delivery or late delivery. Still, some debit card issuers voluntarily offer protections and solutions to problems like the failure to receive merchandise bought with a debit card. Contact your debit card issuer for more information about particular policies and protections.

What if you financed your purchase through the merchant? If you financed your purchase through the merchant, you also may have protections under state and federal law. Check your credit contract for the following language: Notice: Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services obtained with the proceeds hereof. It means that you may be able to claim that the seller failed to deliver the goods as stated in your credit contract.

The Mail or Telephone Order Merchandise Rule

This rule covers merchandise you order by mail, telephone, computer and fax. It requires merchants to have a reasonable basis for claiming they can ship an order within a certain time.

Ship Dates

By law, a merchant should ship your order within the time stated in its ads or over the phone. If the merchant doesn't promise a time, you can expect it to ship your order within 30 days. The shipment "clock" begins when the merchant receives a "properly completed order." That includes your name, address and payment (check, money order or authorization to charge an existing credit account -- whether the account is debited at that time or not). If the merchant doesn't promise a shipping time and you are applying for credit to pay for your purchase, the merchant has an additional 20 days (50 days total) to establish the account and ship the merchandise.

Delays

If the merchant is unable to ship within the promised time, it must notify you by mail, telephone, or email, give a revised shipping date and give you the chance to cancel for a full refund or accept the new shipping date. The merchant also must give you some way to exercise the cancellation option for free, for example, by supplying a prepaid reply card or staffing a toll-free telephone number.

• If you ignore the option notice, and the delay is 30 days or less, it's assumed that you accept the delay and are willing to wait for the merchandise.
• If you do not respond -- and the delay is more than 30 days -- the order must be canceled by the 30th day of the delay period and a full refund issued promptly.
• If the merchant can't meet the revised shipping date, it must notify you again by mail, email or telephone and give you a new shipping date or cancel your order and give you a refund.

The order will be canceled and a refund issued promptly unless you indicate by the revised shipping date that you are willing to wait. If you do not respond at all to the second notice, it's assumed that you are not willing to wait, and a full refund must be issued promptly.

Refunds

If you authorized a charge to your credit card account, the merchant must credit the account within one billing cycle -- not give credit toward another purchase. If you pay by cash, check or money order, the merchant must mail you a refund within seven working days.

Tips for Shopping by Phone, Mail or Online

Consider your experience with the company or its general reputation before you order. If you've never heard of the seller, check on its physical location and reputation with the local Better Business Bureau or the state Attorney General's office. Ask about the company's refund and return policies, the product's availability and the total cost of your order before you place your order.

Get a shipment date.

Keep records of your order, such as the ad or catalog from which you ordered; the company's name, address and phone number; any shipment representation the company made to you and when it made it; the date of your order; a copy of the order form you sent to the company or, if you're ordering by phone, a list of the items and their stock codes and the order confirmation code; your canceled check or the charge or debit statement showing the charge for your order; and any communications to or from the company.

Track your purchases.

When you order online, keep printouts of the web pages with the details of the transaction, including the merchant's return policies, in case you're not satisfied.

Contacts for Resolving Problems

If you have other problems with your purchase, try to resolve your dispute with the company. If that doesn't work, the following resources may be helpful:

State and local consumer protection offices. Contact the offices in your home state and where the company is located.

The Direct Marketing Association (DMA). Write:

DMA Mail Order Action Line
1111 19th Street, N.W., Suite 1100
Washington D.C. 20036-3603

Postal Inspectors. Call your local post office and ask for the Inspector-in-Charge.

Created for NEA members and their families, the NEA Member Benefits website informs, assists, and keeps you up-to-date on ways to get the best value for your hard-earned money. Each month you'll find exclusive members-only offerings and giveaways. You'll also find valuable interactive tools to help you invest and plan for retirement. Now, you can get rate quotes and apply online for many NEA sponsored products including: credit cards, personal loans, life insurance, auto and homeowners insurance. You can also check your balances on your NEA credit card and NEA Valuebuilder™ accounts. Visit www.neamb.com and take full advantage of your Association membership.

Changes in their capabilities may signal a need for a "care plan."

Federal Citizens Information Center

When you start noticing changes in mental and physical capabilities of a loved one or friend, it may signal a need to develop a "care plan."

As a relative or friend ages, you may see a decline in mental and physical capabilities, even though the changes are likely to be slow and subtle. You wonder what can be done if a senior you know needs additional care or support.

A "care plan" will help define the services and support needed to provide appropriate assistance. A major part of that plan is the assembling of key documents.

Organizing Documents and Paperwork

Encourage your loved one to organize important medical information and other papers. Offer you help in a tactful way. It's critical that this be done while your loved one is medically and mentally competent. For example, if he or she has specific wishes for end of life, they need to be documented.

In One Place

The following items should be assembled in one place so they're available when needed:

• Medicare card
• Social Security card
• All health insurance ID cards
• Copy of birth certificate
• Names, phone numbers, and addresses of doctors
• List of current medications, the prescribing physician, and pharmacy
• Will, living will, and power of attorney
• Copies of insurance policies
• Contact information to reach the person's tax preparer, if one is used

Laminated Reference Sheet

It is a good idea for every senior to have a complete list of emergency telephone numbers and information. Laminate the list and put it an obvious place, such as on the refrigerator door or by the telephone. Put it in a place where Emergency Medical Technicians or others can access it.

The laminated sheet should contain:

• Senior's name, address, birth date, and medical insurance information
• Name and contact information of primary care giver
• Primary physician's name and contact information
• List of medications and dosages
• Names and contact information for other caregivers or relatives
• Medical specialists who have worked with the senior
• Availability of a living will

Gathering the information in an accessible place will also give the caregiver some peace of mind that things can be found quickly if the loved one's condition deteriorates quickly.

This article and hundreds more can be found in the "Member Library" at the NEA Member Benefits Web Site at www.neamb.com.

What to do when you buy something at home and change your mind.

Federal Citizen Information Center

You purchase something from a salesperson in your home, but have second thoughts and want to cancel. You might want to initiate the "Cooling-off Rule."

If you buy an item from a salesperson in your home and then decide it was not a good purchase, you may have three days to cancel by using the "Cooling-off Rule." This also applies to purchases of $25 or more made at your workplace and places rented by the seller on a temporary basis, such as hotel rooms, convention centers, fairgrounds, and restaurants.

Enforced by the Federal Trade Commission (FTC), the rule requires sellers to tell you that you have three business days after the sale to change your mind.

At the time of the sale, the seller must give you two dated copies of a cancellation form (one to keep and one to send) and a copy of your contract or a receipt showing the salesperson's name and address, explaining your right to cancel.

To cancel a purchase, sign and date one of the cancellation notices and send it by certified mail, postmarked before midnight of the third business day following the sale.

Saturday is considered a business day, but Sunday and legally recognized holidays are not.

Keep the notice of cancellation for your records.

If you were not provided with this form at the time of the sale, your three-day period does not start until you receive it from the seller. You can also write your own letter to cancel the order.

Once you have cancelled, you must be given a refund within 10 days. The seller must notify you of the date for the product pick-up, and return any trade-ins you gave as a down payment.

Within 20 days, the seller must either pick up the items or reimburse you for mailing expenses.

Be aware that there are situations in which the "Cooling-off Rule" does not apply:

• You made the purchase entirely by mail or telephone.
• Your sale was the result of prior contact you made at the seller's permanent business location.
• You signed a document waiving your right to cancel.
• Your purchase is not primarily for personal, family, or household use.
• You were buying real estate, insurance, securities, or a motor vehicle.
• You bought arts or crafts at a fair, shopping mall, civic center, or school.

Remember that if you paid by credit card and are having difficulty getting your refund, you may also be able to dispute the charge to your card under the Fair Credit Billing Act.

This article and hundreds more can be found on the "Member Library" at the NEA Member Benefits Web Site at www.neamb.com.

Connecting to an unsecure network leaves you vulnerable.

Federal Bureau of Investigation 

There may be a skilled hacker nearby when you connect your laptop in a Wi-Fi hot spot. Your personal data — and ID — are at risk!

You’re at the bookstore…or enjoying a weekend afternoon at a coffee shop…thinking of connecting your laptop to a local Wi-Fi location for e-mail checks or online purchases.

But first consider this: there’s a chance that a hacker is nearby with a laptop attempting to obtain personal data from your own files. This intrusion might give the hacker access to your money or even to another organization’s sensitive information, according to the Federal Bureau of Investigation (FBI).

The FBI’s Cyber Division notes that there are more than 68,000 Wi-Fi hot spots in the U.S. at airports, coffee shops, hotels, bookstores, and other locations where thousands of people pass through every day. While many of the Wi-Fi spots have secure networks, some do not, says the FBI. Connecting to an unsecure network can leave you vulnerable to attacks from hackers.

How do hackers grab your personal data out of thin air?

The FBI explained that one of the most common types of attack is this: a bogus but legitimate-looking Wi-Fi network with a strong signal is strategically set up in a known hot spot.

The hacker waits for nearby laptop users to connect to it. At that point, your computer and all your sensitive information are at risk, including your user ID, passwords, and credit card numbers.

The intruder can mine your computer for valuable data, direct you to phony Web pages that look like the sites that you frequent, and record your every keystroke.

Another thing: the connection between your laptop and the attacker’s computer runs both ways. While the invader is taking information from you, you may be unknowingly downloading viruses, computer “worms” and other malware from the hacker.

What can you do to protect yourself?

The FBI says the best advice is to not connect to an unknown Wi-Fi network. Nevertheless, if you have to, here are some precautions you can take to decrease the threat:

• Make sure your laptop is up-to-date, with current versions of your operating system, Web browser, firewalls, and anti-virus software.

• Do not conduct financial transactions.

• Change the default setting on your laptop so you have to manually select the Wi-Fi network.

• Turn off your laptop’s Wi-Fi capabilities when you are not using them.

NEA Member Benefits now offers NEA ID Theft Protection Program with both individual and family coverage. Get details at www.identityfraud.com/neamb.

With higher prices at the pumps, there are ways to lower gas expenses

North Dakota Extension Service 

With the rising price of gasoline, people are looking for ways to make their vehicles more efficient. How you drive and maintain a vehicle can affect fuel usage.

Higher prices at the gasoline pump are focusing renewed attention on how to make a vehicle more efficient. The North Dakota State Extension Service says there are a few simple things you can do to save a few dollars on the fuel budget.

How you drive and maintain your vehicle can affect gasoline consumption. All vehicles are different, but there are a few basics that work for all types of cars and trucks.

Make sure your air filter is clean. Clogged filters make your engine work harder, burning more fuel to create the same amount of power. Replacing a clogged air filter can save up to 10 percent on fuel costs.

Check the air pressure in your tires. Tires that are not inflated to the proper level may reduce mileage per gallon by as much as 3 percent.

Slow down. Most vehicle mileage efficiency begins to drop off at speeds in excess of 60 mph.

Calm down. Aggressive driving, rapid acceleration and braking can affect fuel mileage. By avoiding such behavior, you can see savings up to 30 percent.

Remove extra weight. Those bags of traction sand you left in the bed of the trunk or truck or other unnecessary items are reducing your mileage. Extra weight will affect smaller cars more than larger cars. Removing extra weight, especially in excess of 100 pounds, can improve your vehicle’s efficiency.

Pool with other drivers. Combining trips with friends, family, or co-workers not only saves gas money, but also wear and tear on your vehicles.

Be leery of “gas savings” product claims. The U.S. Environmental Protection Agency has tested more than 100 fuel-saving products and has found that none of them significantly improves gas mileage.

Maintain the vehicle. Make sure your vehicle is maintained according to the manufacturer’s recommendations. Driving a car with the engine light on or one that obviously is not running properly can affect mileage drastically. An improper functioning oxygen sensor, for example, can make the engine use as much as 40 percent more fuel.

Reduce wind resistance. A loaded roof rack increases fuel consumption.

For more information on saving at the gas pump, check this U.S. Department of Energy Web Site: www.fueleconomy.gov.

EPA issues a “WaterSense” program for bathroom plumbing fixtures.

Environmental Protection Agency

Look for bathroom faucets that carry a “WaterSense” label, making it easier to find plumbing products that use less water than traditional fixtures.

Consumers will be able to identify high-performance, water-efficient sink faucets for their bathrooms now that the Environmental Protection Agency (EPA) has released a product-specification for ones that use about 30 percent less water than conventional models.

Water Efficiency. "EPA's WaterSense program just made it easier for consumers and communities to save money, energy, and water one tap at a time," said Assistant Administrator for Water Benjamin H. Grumbles. "Water efficiency is the wave of the future and WaterSense bathroom faucets will turn a trickle into a stream of savings without sacrificing performance."

Performance Standards. In order to earn the WaterSense label, faucets must be independently tested and certified by a licensed certifying body to meet EPA's water-efficiency and performance criteria. To meet the criteria, faucets and accessories such as aerators, cannot flow at a rate of more than 1.5 gallons per minute (gpm), or less than 0.8 gpm. EPA chose a rate that ensures both water savings and that the faucet flow rate will continue to meet the needs of the user.

Savings. WaterSense-labeled faucets not only save water, but they have the added benefit of saving energy used to treat, pump, and heat water. In fact, letting your faucet run for 5 minutes uses about as much energy as letting a 60-watt light bulb run for 14 hours.

Already on the Market. Consumers can already find the WaterSense label on more than 60 high-efficiency toilets. WaterSense labeled toilets use 20 percent less water than standard models and are independently tested and certified to perform as well as or better than their market counterparts. Retailers are starting to feature WaterSense labeled toilets in their plumbing sections, and bathroom sink faucets should be close behind in 2008.

Largest Use of Water. Bathrooms are, by far, the largest use of water in the home —responsible for about half of total indoor water use. By installing a WaterSense-labeled high-efficiency toilet and faucet or aerator, American homes will see water consumption going down.

For more information on the WaterSense-labeled program, go to: www.epa.gov/watersense/specs/faucet_final.htm.

This article, and hundreds more, can be found on the NEA Member Benefits Web Site in the “Member Library” section: www.neamb.com/consumer_articles.jsp.

Protect yourself when purchasing a pre-owned car.

Federal Citizen Information Center

An automobile's "history" will be a big help when looking for a used car. Get details about a pre-owned auto before making any purchase.

Looking for a used car? Here are some tips to help protect you when making the purchase:

Research the Vehicle's Past Life

Ask the seller for details concerning past owners, use of the vehicle, and maintenance. Next, find out whether the car has been damaged in a flood, involved in a crash, been labeled a "lemon," or had its odometer rolled back by running a check on a site such as carfax.com. The car's Vehicle Identification Number (VIN) will help you do this.

Inquire about the Title History

Your state motor vehicle department can research the car's title history. Inspect the title for "salvage," or "rebuilt," or similar notations.

Look Up Web Sites

The Internet sites www.carfax.com and www.autocheck.com sell information on the history of vehicles gathered from state motor vehicle departments and other sources. While helpful, these sources do not guarantee that a vehicle is accident-free. The Center for Auto Safety at www.autosafety.org provides information on safety defects and recalls.

Check Crash-tests

The National Highway Traffic Safety Administration at www.nhtsa.gov provides crash-test and rollover ratings for individual models and years.

Review any Warranty Coverage

If a manufacturer's warranty is still in effect, contact the manufacturer to make sure you can use the coverage.

Get it Inspected

Have the car examined by a qualified mechanic. Talk to the seller and agree in advance that you'll pay for the exam if the car passes inspection, and that the seller will pay if significant problems are discovered. Be sure to have the mechanic check the vehicle's frame, tires, air bags, and undercarriage.

This article and hundreds more can be found on the "Member Library" at the NEA Member Benefits Web Site at www.neamb.com.

From Nolo.com

We've all seen an irate traveler pounding his fist on the counter, face red and temples pulsing, screaming at the nearest available victim about his canceled flight, his shower's weak water pressure, or some other indignity. If your goal is merely to vent your anger, you might consider following his example. If, however, you want to actually resolve your problem, get a grip on your rage and start thinking strategically. Some time-tested principles will help you get results no matter what kind of problem crops up on your trip, from a lost suitcase to a canceled cruise.

Talk to the Right Person

Always try to speak with the right person about your complaint. This may mean reaching the most senior staff person or manager. Don't waste your time and energy talking to someone who has no authority to arrange a solution. If your hotel shower is broken, for instance, complaining to the maid is probably pointless. The maid will call a manager, not a plumber, so you might as well call the manager yourself. And a busy maid might not speak with the manager until hours later, while you and your family get more and more impatient.

On the other hand, don't underestimate the help available from rank-and-file staff. You’ll probably get towels and soap more quickly by asking the maid than the manager. Security guards and desk clerks are a good source for certain kinds of information and assistance.

The Regular Customer Advantage

When you're working out any problem with a business, keep in mind that its interest in keeping you happy is greater if you are a regular customer. Regular customers are particularly valuable to a company because it's much more expensive to attract a new client than to keep a current one.

Don't overdo or exaggerate your point, but politely explain that you regularly use their service and would like to continue using it. If you are a member of any frequent flyer, frequent rental or other program they offer, be sure to mention that, too. Also, let them know that many of your family and friends are customers; smart businesses know those people will hear about your experience, good or bad.

Focus on the Solution, Not on Blame

Angry tirades often reduce your chance of getting assistance. Instead, keep your cool and try to calmly explain exactly what went wrong and how you propose that it be fixed. The adage "You'll get more bees with honey than with vinegar" should be your mantra.

Many people become obsessed with assigning blame for the problem rather than focusing on possible solutions. Worrying about who was at fault is generally a waste of energy, and it derails the discussion away from the ultimate goal of finding a solution. Rather than making a hotel manager defensive by accusing him or her of losing your reservation, try to get the manager on your side so that you can work toward a solution together. If you apologize for your travel agent's apparent mistake, and let the manager save face, you'll almost certainly get a more cooperative and prompt response.

Stay Flexible

It's amazing how people are sometimes so dead-set on a specific solution that they fail to recognize an even better deal when it is offered to them. Don't reject alternative solutions out of hand; try to remain open enough that you can at least briefly consider multiple possibilities. Moving your whole family to the jointly owned hotel next door might initially seem like a real hassle, but it might be worth it if you get a luxury suite with a panoramic view.

Consider Leaving If You Are Still Not Happy

If all negotiations fail and no acceptable solutions have been offered or implemented, you might consider giving up and moving on to greener pastures: change hotels, get off the cruise ship at the next port, or rebook your flight. By refusing to accept a problematic situation, you will strengthen your case for a refund once you get home.

Copyright 2008 Nolo

Nolo is the leading publisher of self-help legal publications, software and forms. NEA members get a 10% discount on books, forms and software at Nolo.com---that's in addition to the substantial discounts already available on their web-site. To view Nolo products and take advantage of the 10% discount, click here: Nolo Discounts.

NEA Member Benefits is pleased to introduce Collette Vacations, a leading provider of escorted and independent tours, family cruises, and weekend getaway packages. Since 1918, Collette Vacations has taken millions of travelers to all seven continents for memorable vacation experiences. When you travel with Collette, your vacation will include centrally located hotels; meals that allow you to sample local flavors; activities, sightseeing and entertainment; and the services of a professional tour manager.

In addition, the optional "No Worries" Trip Cancellation Waiver gives you the freedom to cancel your trip at any time, right up to the day of departure. Click here for more information: www.neamb.com/discount/collette.jsp.

Why you should register your travel plans with the U.S. Department of State.

U.S. Department of State

When planning a trip to an international destination, the U.S. Department of State encourages American citizens to register their travel, a free service available online.

International travel takes special planning, such as making sure you have a valid passport, but there are other steps that can be taken to help you keep in contact with others if an emergency occurs.

The State Department strongly encourages American citizens planning travel abroad to register their trip with the federal government.

Travel registration makes it possible to contact a traveler, the State Department says, in the event of a family emergency in the United States or because of a crisis in the place the traveler is visiting.

Registration is a free service provided by the State Department and is easily accomplished online at travelregistration.state.gov.

After going to the Web Site, you first need to submit a personal I.D. and a password to start the enrollment process.  You will be asked to complete sections dealing with your name, address, date of birth, passport number, itinerary, contacts, and travel information.

(Note: In accordance with the Privacy Act, the Department of State may not release information about those registered without their express written authorization.)

If your family needs to reach you because of emergency, they can pass a message to you through the Office of Overseas Citizens Services, which can be contacted from within the United States at 1-888-407-4747 (toll free), and from overseas at 1-202-501-4444.

The Office of Overseas Citizens Services will contact the U.S. Embassy or Consulate in the country in which you are traveling in order to pass to the message to you.

The State Department also advises leaving a detailed itinerary and copies of your passport biographical data page with a friend of relative in the U.S.

NEA Member Benefits is pleased to sponsor Collette Vacations, a leading provider of escorted and independent tours, family cruises, and weekend getaway packages. Since 1918, Collette Vacations has taken millions of travelers to all seven continents for memorable vacation experiences.  When you travel with Collette, your vacation will include centrally located hotels; meals that allow you to sample local flavors; activities, sightseeing and entertainment and the services of a professional tour manager.

In addition, the optional "No Worries" Trip Cancellation Waiver gives you the freedom to cancel your trip at any time, right up to the day of departure. Click here for more information: www.neamb.com/discount/collette.jsp.

Safeguards to keep your bike from being ridden off.

California Casualty Management Company

Bicycles are a common target of thieves. Millions are stolen each year but only a small number are returned to their owners. Law enforcement officials say there are things you can do to help keep your back out of the hands of thieves.

Only a small number of the millions of bicycles reported stolen each year are returned to their owners, according to the National Bike Registry.

Bikes are covered under a homeowner's insurance policy. However, if a bike is stolen, the claim is still subject to a deductible. If the bike is an expensive model, you might want to consider purchasing a floater insurance policy. It will provide additional coverage for the bike — for just a few more dollars a year.

Prevention is always the best cure to ward off bike thieves. Here is some advice from law enforcement officials:

• Always lock your bike, including when you are going to be gone for "just a second."
• Think about locking the bike even if it is in the garage.
• Buy the best quality lock you can afford; cheap locks can be easily cut.
• Register the bike with local police. Be prepared to provide the make and model, as well as the serial number.
• Etch an identifying number or code into the bike's frame to help police officers identify it, if stolen.

Another tip: Keep the receipt for the purchase of the bike so you have proof of its value in the event it disappears.

NEA offers two homeowner's insurance programs: NEA Homeowners Insurance®, underwritten by Horace Mann Insurance Companies, and NEA Members Auto & Home Insurance Program®, underwritten by California Casualty Management Company. Both programs offer special features for NEA members. To learn about these programs, visit www.neamb.com.

This article and hundreds more can be found on the "Member Library" at the NEA Member Benefits Web Site at www.neamb.com.

Nolo, Shae Irving, J.D.

A world of careful planning won’t do any good if you can’t find important paperwork when you need it. Do what you can to help your mom or dad set up a good filing system.

A checklist for getting organized

1. Find assets. Often, just one spouse manages most of a couple’s finances. Be sure that your surviving parent knows where important assets are located. Over time, you may find it helpful to make a master list of bank and brokerage accounts, retirement plans, insurance policies, real estate, items in safe deposit boxes, and other significant assets. Make note of sizeable debts as well.

2. Collect insurance. Find out whether your surviving parent is the beneficiary of a life insurance policy and, if so, contact the insurance company and file a claim for benefits. This is one of the first things you can do to ensure there’s enough cash on hand.

3. Apply for benefits. Helping your parent apply for Social Security benefits should be near the top of your list of things to do. Contact the Social Security Administration (www.ssa.gov) for information about survivor's benefits. In addition, investigate other benefits to which your parent may be entitled, including pension, veterans, or other employment-related payouts.

4. Change title to jointly owned assets. If your parents owned property together -- as joint tenants or in another form of joint ownership -- the survivor should change the title document to show that he or she now owns the property alone. This will make it easier for your surviving parent to manage the property -- and for you to wrap up your surviving parent’s affairs when the time comes. Check title documents for real estate, vehicles, bank or brokerage accounts, and other significant assets to see whether you need to update ownership records.

5. Update will and trusts. Losing a mate will more than likely cause your parent to reevaluate his or her own plans for leaving property at death. If your surviving parent has a will or living trust, you should eventually have him or her review it and change it, if necessary, to reflect your parent’s current life circumstances and wishes. Also take a look at who is named as beneficiary of retirement plans and any other major assets that will pass outside the will or trust. 

6. Take steps to avoid probate court. When changing title documents and reviewing your surviving parent’s estate plan, you should consider whether any part of the estate will be subject to probate when he or she dies. Simple probate avoidance methods could save a bundle of time and money -- for example, your parent might name pay-on-death beneficiaries for bank or brokerage accounts that used to be jointly owned. 

7. Update insurance policies. If your deceased parent is still named as a beneficiary on insurance policies, those policies will need to be modified, cashed out, or canceled, depending on your parent’s current needs and wishes. 

8. Make a health care directive (living will). If your parent hasn’t already prepared a living will and a durable power of attorney for health care, now is the time. These important documents will allow your parent to set out health care wishes and name a trusted person -- perhaps you -- to oversee his or her care and make medical decisions if that ever becomes necessary. Making health care documents can also open the door to discussing your parent’s feelings about organ donation, burial or cremation, and other final arrangements. For more information, see  Helping a Loved One Make a Power of Attorney.

9. Make a financial power of attorney. This document lets your parent name someone to handle financial matters -- from writing monthly checks to managing investments -- if he or she ever becomes incapacitated and unable to take care of things alone. Without this document in hand, you or other loved ones would most likely have to go to court to get the necessary authority. For more information, see  Helping a Loved One Make a Power of Attorney.

10. Organize documents. A world of careful planning won’t do any good if you can’t find important paperwork when you need it. Do what you can to help your mom or dad set up a good filing system. Here are some critical things to keep track of:

• will, trust, and other estate planning documents
• powers of attorney
• bank and brokerage account statements
• retirement plan statements
• government benefit paperwork
• insurance policies
• business records
• tax returns
• credit card and debt information
• secured places, such as a safe or safe deposit box
• email accounts and passwords
• property records for real estate, cars, and other major assets.

The following resources can help you with the tasks described in this checklist:

The Executor’s Guide: Settling a Love One's Estate or Trust, by attorney Mary Randolph (Nolo), offers extensive legal and practical guidance to help you wrap up the affairs of a loved one who has died. It also explains the steps executors can take before someone dies, to help them get property and paperwork in order.

Eight Ways to Avoid Probate, by attorney Mary Randolph, demystifies the strategies you can use to keep property from ending up in probate court after a loved one’s death.

Get It Together: Organize Your Records So Your Family Won’t Have To, by Melanie Cullen with Shae Irving (Nolo), is a complete system for gathering and storing important documents, plans, and wishes. From wills to insurance policies to passwords, it lets you pull all your important records together in an easy-to-use format.

Copyright 2008 Nolo

Nolo is the leading publisher of self-help legal publications, software and forms. NEA members get a 10% discount on books, forms and software at Nolo.com---that's in addition to the substantial discounts already available on their web-site. To view Nolo products and take advantage of the 10% discount, click here: Nolo Discounts.

One way you can help a parent who is financially challenged is to look into a reverse mortgage on their home.   The reverse mortgage, a type of home equity loan, is fulfilling the financial needs of thousands of seniors across the country, offering them continued security and independence.  For more information on how NEA Member Benefits can help you evaluate the benefits of a reverse mortgage, click here: http://www.neamb.com/loans/hmfrev.jsp

Whether you need help picking investments to build your nest egg, establishing credit, buying a home, choosing insurance, or simply have questions concerning your finances, NEA Member Benefits can help. Visit    www.neamb.com    to learn about the many programs and services that will help you get the most from your NEA membership. You can speak to a Member Services representative toll free, 1-800-637-4636, Monday to Friday 8 a.m. to 8 p.m. (or Saturday, 9 a.m. to 1 p.m.), ET. Hearing impaired members call our TTY line at 1-800-445-1269. 

Internet rumors swirl around on sign-up deadlines.

Federal Trade Commission

Despite claims made in messages circulating on the Internet, it is not necessary for consumers to register their cell phones on a separate Do Not Call Registry to be protected from most telemarketing calls.

Rumors abound on the Internet, the Federal Trade Commission said, that there is some kind of deadline by which you must register your cell phone number on the Do Not Call Registry (DNC).

"Consumers should not be concerned that their cell phone numbers will be released to telemarketers in the near future," the FTC said.

Federal Communications Commission (FCC) regulations prohibit telemarketers from using automated dialers to call cell phone numbers. Automated dialers are standard in the industry, so most telemarketers are barred from calling consumers' cell phones, the FTC noted.

"There is only one National DNC Registry," according to the FTC. There is no separate registration list for cell phones.

The DNC Registry accepts registrations from both cell phones and land lines. You must call from the phone number that you want to register. If you register online, you must respond to a confirmation e-mail.

According to the telecommunications industry, your cell phone number will not be included in a wireless directory unless you want it to be listed (an "opt-in" process).

NEA Member Benefits now offers NEA ID Theft Protection, with both individual and family coverage. Get details at www.neamb.com/idfraud.

This article and hundreds more can be found on the "Member Library" at the NEA Member Benefits Web Site at www.neamb.com.

Stay out of financial trouble by planning for your living costs.

Nolo

Dorm life at college puts a roof over your head and meals on your plate, but it doesn't take care of other costs: books and school supplies, clothes, travel, entertainment, and more. First, you'll need to figure out how to pay for these costs: Do you qualify for financial aid? Will your parents give you an allowance? Do you need or want to take on a part-time job? After you figure out your income sources, you'll need to set a budget and stick to it.

Heading to college for the first time? Nervous? Excited? Whether you're bursting at the seams to get out of the house or worried about leaving your family's nest, college is a great place to learn some basic financial skills. This transitional time gives you the freedom and space to make purchases on your own while enjoying some provided necessities and, if you're lucky, a safety net.

Dorm life puts a roof over your head and meals on your plate, but it doesn't take care of other costs: books and school supplies, clothes, travel, entertainment, and more. First, you'll need to figure out how to pay for these costs: Do you qualify for financial aid? Will your parents give you an allowance? Do you need or want to take on a part-time job? After you figure out your income sources, you'll need to set a budget and stick to it. Here's how:

1. List your expenses. Here is a partial list of expenses you can expect to have:
   
   
   • Meals. If you're living in the dorms, your board may be covered. But you'll still want to eat meals out occasionally (or, if the food is terrible or you have dietary restrictions, maybe more than occasionally). If you'll be living in an apartment, determine what 30 days of meals might cost.
   • Books and supplies. You'll have to buy books for your classes every semester, and they can easily run to $500 per semester. You can save money by buying used copies, often offered at school bookstores, or by searching for the same books online. (Be sure to get the edition listed in the class syllabus, and check delivery dates.) You'll also need pens, pencils, notebooks, folders, printer paper, folders, and a good book bag.
   • Computer. If you don't already have a computer or if you need to upgrade, you might be able to get a discounted student rate if you buy one through your school. You can also get a good computer at a low rate by buying it used, locally, or through the online classifieds.
   • Printer. It's not hard to find low-cost printers, but remember to include costs for ink cartridges.
   • Clothes and bedding. You still need them, and if you're going to a region with a climate very different from the one where you currently live, the costs will go up. For instance, anyone heading from Southern California to New England needs some serious winter gear. As for linens, your current bedding may not fit your dorm-room bed, which may be an extra-long single.
   • Furniture. If you're not living in a dorm, you may need to buy some simple furniture -- a futon couch, for example, or a desk and chair.
   • Entertainment. Include costs for your extracurricular activities -- maybe eating in restaurants, seeing movies and plays, or going to the occasional concert.
   • Travel. How often will you return home, and who will cover those costs? Will you want to visit friends at other schools?
   • Phone. If you have a cell phone, your minutes are likely to increase, since you'll be away from your family and your friends. Consider changing your plan to accommodate your changing needs -- and remember to incorporate this change in your budget. If you don't have a cell phone, this might be the time to get one. If you prefer not to, consider a prepaid long-distance calling card.
   • Other. Some other expenses: laundry, hair cuts, athletic gear, medicines, toiletries, and batteries are a few.
   
   
2. Sit down with your parents and discuss money. Ask your parents to be very clear about what they'll pay for and what they won't. Tuition? Room and board (or rent and groceries)? Books and supplies? Clothes? Visits home? Discuss what to do in a financial emergency -- some parents give their kids a credit card to be used in emergencies only.
    
3. Make a budget. Decide how much money you'll need for the above. Some of the costs (computer, printer, furniture) are one-time outlays; separate these from ongoing costs. Allocate a certain amount of money for each category every month.
    
4. List your income. What are your sources of income? Will you receive any financial aid, scholarship money, or loans? How much money will your parents give you, and what will you have to earn on your own? This will help you determine whether you need a part-time job and how much money you need to make at that job.
    
5. Open a checking account. If you already have a checking account, make sure your bank has a branch in your college town, and give them your new address. If not, open a new account near your college, and get checks and a debit card.
    
6. Consider a credit card -- or not. You may want to avoid getting a credit card, because it's easy to wrack up debt. If you do get a credit card, get one with a low spending limit, and use it only for items you know you can afford.

With just these few simple precautions, you can get your finances in good working order -- which will relieve stress and give you more time to concentrate on the truly important stuff, like learning and having fun.

Copyright 2008 Nolo

Nolo is the leading publisher of self-help legal publications, software and forms. NEA members get a 10% discount on books, forms and software at Nolo.com---that's in addition to the substantial discounts already available on their web-site. To view Nolo products and take advantage of the 10% discount, click here: Nolo Discounts.

This article, and hundreds more, can be found on the NEA Member Benefits web site in the “Member Library” section: www.neamb.com/consumer_articles.jsp

Suggestions to put coupons to work for you

Utah State University Extension

Coupons, long a staple for budget-conscious families, save consumers nearly $3 billion annually. Yet, consumers use less than one percent of available coupons.

About three-fourths of Americans use coupons, totaling nearly $3 billion in annual savings for grocery and other items. However, less than one percent of coupons distributed to consumers are actually used.

Consider these suggestions to make coupons work for you:

• Be selective. Buy only those items that you normally select for your family. Just because you have a coupon doesn't mean you have to use it. Do not allow coupons to cause you to buy on impulse, rather than need.
   
• Comparison shop. Don't assume bigger is better. It may be less expensive to buy two smaller items with coupons than one larger item. If a coupon is good for any size, the smaller size is generally a better buy.
   
• Know store policies. Does the store match competitor prices and or/coupons? Do they have double coupon days? Can a manufacturer's coupon be used with a store coupon?
   
• Set up a coupon organization system that works for you. Some shoppers organize coupons according to store layout. Some clip coupons only for items they use.
   
• Take your coupons. There may be closeouts or other specials not listed in the store ads. Always take your coupons with you.
   
• Know how small savings add up. Remember that even coupons for small amounts add up quickly if they are for items that you use regularly.
   
• Combine coupons. Mix coupons with rebates. Combine manufacturer and store “buy one get one free” coupons. Use coupons on seasonal promotions and closeouts.
   
• Look for prescription offers. When buying prescriptions, many pharmacies offer discounts with multiple refills. New or transferred prescriptions may receive discounts or gift cards.
   
• Watch for other discounts. Don't forget to look for discounts on things such as home repairs, yard work, dry cleaning, photo developing, fitness centers, restaurants, car repairs, and travel.
   

This article and hundreds more can be found on the “Member Library” at the NEA Member Benefits Web Site at www.neamb.com.

A primer on leasing: before, during, and after.

The Federal Reserve Board

Leasing a car, rather than purchasing a vehicle, has become a popular way to acquire a new vehicle. However, it's more involved than just figuring how much it will cost per month, according to The Federal Reserve Board.

Leasing a vehicle is much more involved than just being concerned about the monthly payment. You will need to ask many questions. Under the federal Consumer Leasing Act, you have a right to information about the costs and terms of the vehicle lease.

A closed-end lease, the most common type of vehicle lease, allows you to choose the vehicle, return the vehicle at the end of the term, pay any end-of-lease costs, and walk away.

The Federal Reserve Board offers some key points to consider before leasing your next vehicle:

Comparing Different Lease Offers

When deciding on a vehicle and terms of the lease, examine these issues:

• The agreed-upon value of the vehicle — a lower value can reduce your monthly payment
• Up-front payment, including the capitalization cost reduction
• The length of the lease
• Any end-of-lease fees and charges
• The mileage allowed and per-mile charge for excess miles
• The option to purchase either at lease-end or earlier
• Whether the lease includes “gap” coverage, which protects you if the vehicle is stolen or totaled in an accident

Here are additional things to know about the beginning, middle, and end of the lease:

At the Beginning of the Lease

You may be required to pay your first monthly payment; a refundable security deposit or your last monthly payment; other fees for licenses, registration, and title; a capitalization cost reduction (like a down payment); an acquisition fee; freight or destination charges; and state or local taxes.

During the Lease

You will have to pay your monthly payment; any additional taxes not included in the first payment; insurance payments; ongoing maintenance costs; and any fees for late payment.

You will also have to pay for safety and emissions inspections that are required by the local or state government.

If you end your lease early, you may have to pay substantial early termination charges.

At the End of the Lease

If you do not buy the vehicle, you may have to pay a disposition fee and charges for excessive miles and excessive wear.

This article, and hundreds more, can be found on the NEA Member Benefits Web Site in the “Member Library” section: www.neamb.com/consumer_articles.jsp

Deductible Costs of Operating an Automobile

Internal Revenue Service

The Internal Revenue Service has issued the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving expenses.

From January 1 through December 31, 2008, the standard mileage rate for tax purposes for use of a car (including vans, pickups or panel trucks) is as follows:

• 50.5 cents per mile for business miles driven
• 19 cents per mile for medical or moving purposes, and
• 14 cents per mile driven in service of charitable organizations.

The Internal Revenue Service noted the new rate for business miles compares to a rate of 48.5 cents for 2007. For medical and moving purposes, the new rate compares to 20 cents for 2007. The rate for miles driven in service of charitable organizations remains the same.

For business use, the standard mileage rate is based on an annual study of the fixed and variable costs of operating an automobile. The standard rate for medical and moving purposes is based on the variable costs determined by the same study. The mileage rate for charities is set by law.

A taxpayer may not use the standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming Section 179 deduction for that vehicle, for any vehicle for hire, or more than four vehicles used simultaneously.

For more information, refer to the “Revenue Procedure 2007-70” issued by the Internal Revenue Service.

Created for NEA members and their families, the NEA Member Benefits web site informs, assists and keeps you up-to-date on ways to get the best value for your hard-earned money. Each month you'll find exclusive members-only offerings and giveaways. Visit us today at www.neamb.com and take full advantage of your Association membership.

by Melanie Cullen
From the Nolo Wills & Estate Planning Center

Help your family -- and make your executor's job easier -- by getting your paperwork in order.

Estate planning isn't just about legal issues -- there are practical ones as well. After you die, your loved ones will have to handle many tasks and decisions that usually aren't covered by basic estate planning documents. Among these are:

• Who should be notified of your death?
• Do you want a funeral or a memorial ceremony? If so, what type? Who should attend? Do you want people to send flowers, or would you prefer donations to charity? (For help, see Planning Your Funeral or Memorial Services.)
• Did you prepare a will or living trust? Where did you keep them? (For help creating a will or trust, see Nolo's Wills & Estate Planning Resource Center.)
• Do you own a life insurance policy, pension, annuity, or retirement account? Where are the documents stored? (For advice on sharing this information, see Help Your Family Claim Retirement Benefits.)
• Do you have bank accounts? Do you have a safe deposit box? Where are the records? (For some guidance, see Keeping Track of Secured Places and Passwords.)
• Do you own stocks, bonds, or money in mutual funds? Where are the records?
• Do you own real estate? Where are the deeds?

Most of us carry this information around in our heads and never discuss it with our family members in a comprehensive way. Our loved ones must do their best to sort it all out later.

Avoid Unnecessary Losses

Costly or painful losses can result from a failure to organize your affairs. Stocks, bonds, bank accounts, real estate, and insurance policy benefits may go unclaimed and be turned over to the state government. This happens surprisingly often. Each year, millions of dollars go into state treasuries because the rightful property owners couldn't be found.

On a more personal level, relatives or friends may not be promptly informed of a death, and valuable pieces of family history may not be passed down to future generations.

Fortunately, losses like these can be avoided with a little bit of planning, sorting, and organizing.

Organize Your Information

Making things easier for your family is not difficult, but it may be time-consuming. It's best to break the task into manageable sections and take it one step at a time. Start by thinking about some broad categories of information:

• Funeral plans (arrangements and whom to notify)
• Insurance policies
• Wills, living trusts, deeds, and other important documents
• Pensions and retirement accounts
• Bank, money market, and mutual fund accounts
• Stocks and bonds
• Items in safes, safe deposit boxes, and other locked or hidden places
• Family history, including the location of photographs, heirlooms, and other irreplaceable items

Then think about organizing this information in a way that will help your family handle your affairs after your death. You can structure the information any way you like -- even some scribbled notes left in an accessible location are better than nothing. But if you have the time and energy for it, consider a more thorough approach.

To organize your wishes, plans, and important personal information, you can turn to self-help products, available from Nolo or other publishers. One book, "Get It Together: Organize Your Records So Your Family Won't Have To," by Melanie Cullen with Shae Irving (Nolo), offers a comprehensive planner that prompts you to describe the types of information listed above, and more. Nolo's Personal RecordKeeper software allows you to sort, store, and change information quickly and easily. You may want to use a ready-made system like one of these, or design an approach that suits you better. However you choose to organize your affairs, what's most important is that you create a clear, easily accessible system that will light the way for your family and friends.

When you've got everything in order, be sure to store your information in a safe place. You might consider keeping everything in a fireproof metal box, file cabinet, or home safe. And be sure to discuss your new records with those closest to you. Your careful work won't help them unless they know where to find important papers when the time comes.

Copyright 2008 Nolo

Nolo is the leading publisher of self-help legal publications, software and forms. NEA members get a 10% discount on books, forms and software at Nolo.com---that's in addition to the substantial discounts already available on their web-site. To view Nolo products and take advantage of the 10% discount, click here: Nolo Discounts.

Whether you need help picking investments to build your nest egg, establishing credit, buying a home, choosing insurance, or simply have questions concerning your finances, NEA Member Benefits can help. Visit www.neamb.com to learn about the many programs and services that will help you get the most from your NEA membership. You can speak to a Member Services representative toll free, 1-800-637-4636, Monday to Friday 8 a.m. to 8 p.m. (or Saturday, 9 a.m. to 1 p.m.), ET. Hearing impaired members call our TTY line at 1-800-445-1269.

Students and parents need to study away-from-home coverage.

National Association of Insurance Commissioners

Children living away from home at college might not be covered by their parents' property, auto, or health insurance, according to the National Association of Insurance Commissioners. It will pay do look into the details of the family insurance coverage before fall classes begin.

The summer weeks are a good time to do some homework on the kind of insurance coverage that college-bound students will need for the coming school year.

The National Association of Insurance Commissioners (NAIC) strongly urges young adults — and their parents — to get smart about insurance. For insurance tips, NAIC suggests going to www.InsureUonline.org.

While at college, students might not be covered by their parents' policies for property coverage, auto insurance, or health coverage.

Parents do not need the unpleasant surprise of an insurance claim that is denied because their child is not properly covered, NAIC said.  The Association recommends that parents carefully review their homeowners, auto, and health insurance policies to determine what is—and what is not—covered for college-bound children.

Renter's Insurance

Whether students live in college housing or rent off-campus apartments/houses, they will likely have valuables — such as a computer, TV, stereo and/or video game system — that could be stolen or destroyed in a fire or natural disaster.

Parents should check their homeowners policy to see whether it will cover a college student's possessions. Furthermore, if students live in an off-campus apartment or house, parents should consider purchasing renter's insurance through their existing homeowners insurance provider.

Auto Insurance

If a college student is going to be using a family vehicle while at home, parents should make sure the child is listed by name on the family's auto insurance policy.

If the student will be taking a family car with them to school, parents should check the specific rates for the college's city and state before deciding whether to keep their child on the family's auto policy.

Parents should also consider raising the policy's deductible and only allowing their child to drive the family's oldest, least expensive car. In addition, parents might consider purchasing an older car for their child and foregoing comprehensive and collision insurance on that vehicle.

Health Insurance

Full-time college students are often covered under their parents' health insurance plans until they graduate or reach 23 years of age.

While students are away at college, it is important to check whether the campus health facility, local physicians and hospitals accept the family's insurance coverage. If not, it might be advisable to purchase a student insurance plan through the college.

Be sure the student has a copy of the relevant insurance cards and knows the procedure about obtaining referrals and approvals before seeking treatment.

This article, and hundreds more, can be found on the NEA Member Benefits Web Site in the “Member Library” section: http://www.neamb.com/consumer_articles.jsp

California Casualty Management Company

More than 10 ways to save yourself time, money, and grief.

You may find yourself renting a car on your summer vacation, and the National Safety Council offers some tips to help make the journey safe.

1. Before leaving home, review your auto insurance policy to see what it will cover. You should also check to see if your credit card company provides any auto rental supplemental coverage.
    
2. At the car rental lot, spend some time familiarizing yourself with the car's dashboard layout.
    
3. Find the heater, defroster, air conditioner, wipers and washer, and light switches. Turn them on and off, not only to determine that they work, but that you are familiar with their location.
    
4. Test the turn signals and horn to assure they work, too.
    
5. Check into the trunk to make sure you have a viable spare tire and jack. If there is an emergency road kit available, terrific. If not, either ask for one or bring one along from home.
    
6. Don't forget to bring an infant or booster seat for the children along, either. If you don't have one, perhaps the rental agency will provide one. Call ahead.
    
7. It is a wise idea to check the car's exterior for dents and scratches, and report them. It won't affect how the car runs, but you wouldn't want to be held responsible for a pre-existing condition.
    
8. When picking up your car, check and be sure you have a full tank of gas before you leave the lot. If not, the rental company will either fill it up or make note on the rental contract. When you check out the car, you may be offered a “fuel-purchase option.” This eliminates the need to bring the car back full (or on check-in, be charged for what you've used at higher-than-street rates). The downside of the fuel-purchase option is you may have bought some unneeded gas when not returning the car empty. In any case it is usually cheaper if you fill the tank yourself before you return the car.
    
9. Before leaving the lot, make sure the seat and mirrors are adjusted to your comfort level.
    
10. Drive around the lot, or around the block, to acquaint yourself with the car&'s steering and braking capabilities. If something isn't performing up to expectations, you can get the rental car agency to address it immediately.
     
11. Before leaving for your trip, make sure you are aware of the rental agency's emergency road service provisions.
     

With the NEA Car Rental Program, NEA members now enjoy the highest discount available to any association group from both Hertz and Alamo. Other benefits include no fee for an additional driver, unlimited mileage (at most locations), coupons for additional savings and convenient online reservations. To learn more about the program and reserve a car at a discounted rate, click here: www.neamb.com/discount/carpge.html.

Clean up that credit report before you apply for a loan or mortgage.

Nolo

To clean up your credit report, you'll need to order a copy of your credit report, determine what's inaccurate or out of date, and then request that the credit bureaus fix the information. You may have to follow-up several times with each credit bureau before your credit report will be sparkly clean -- or at least accurate. To do this right, you'll need to know what the credit agencies are allowed to report and for how long.

Clean up that credit report before you apply for a loan or mortgage.

To clean up your credit report, you'll need to order a copy of your credit report, determine what's inaccurate or out of date, and then request that the credit bureaus fix the information. You may have to follow-up several times with each credit bureau before your credit report will be sparkly clean -- or at least accurate. To do this right, you'll need to know what the credit agencies are allowed to report and for how long.

How to Get a Copy of Your Credit Report

Everyone is allowed at least one free credit report each year. If you've already gotten yours this year, you may have to pay a small fee for one.

Free Reports

The federal Fair Credit Reporting Act (FCRA), amended by the Fair and Accurate Credit Transaction Act (FACTA), allows consumers to get a free copy of their credit report each year from each of the three major credit reporting companies. Free annual credit reports are now available in every state.

To order your free report, go to www.annualcreditreport.com, and either order your report directly or download a form to mail in your request. You can also call 877-322-8228.

Also, you are entitled to one free copy of your credit report each year under any of the following circumstances:

• You've been denied credit because of information in your credit report and you request a copy within 60 days of being denied credit.
• You're unemployed and looking for work.
• You receive public assistance.
• You believe your file contains errors due to fraud or you are (or you think you are) a victim of identity theft.
• You've been denied employment (or another adverse employment decision has been made) based in whole or in part on information contained in a credit report.
• Your report has been revised based upon an investigation you requested.

Credit Reports for a Fee

If you do not qualify for a free report (for example, if you have already ordered your free report for the year), there will be a small charge for your credit report. The amount will vary from state to state because it is mandated by state law ($3-$10, with most states charging $10).

The three major credit reporting companies are Equifax, TransUnion, and Experian. It's best to order your report from all three. To order directly from one of these credit bureaus, call, email, or visit the company's website.

Equifax
P.O. Box 740241
Atlanta , GA 30374
800-685-1111
www.equifax.com

TransUnion LLC
P.O. Box 2000
Chester , PA 19022
800-888-4213
www.transunion.com

Experian
P.O. Box 2104
Allen , TX 75013
888-397-3742
www.experian.com

Information Required

When you request your credit report, you'll need to provide the following information:

• your full name (including generations such as Jr., Sr., III)
• your birth date
• your Social Security number
• your spouse's name (if applicable)
• your telephone number
• your current address and addresses for the previous five years, and
• sometimes, even a copy of a government-issued I.D. such as a passport or driver's license and a copy of a recent utility bill -- both documents showing your current address and the date of issue.

How to Clean Up Your Credit Report

After you get your credit report, you'll have to read through it carefully, try to decipher some of the account numbers and names, and start correcting.

Out-of-Date Information

As you read through your report, make a list of everything that's out of date. The following out-of-date information should not appear in your credit report:

• adverse information older than seven years, including lawsuits, judgments, paid tax liens, accounts sent to collection, criminal records (except criminal convictions, which may be reported indefinitely), late payments, and any other adverse information
• bankruptcies older than ten years from the date of the last activity (usually the date you received your discharge or the date the case was dismissed, although credit bureaus sometimes start counting from the earlier date of filing)
• credit inquiries (requests by companies for a copy of your report) older than two years, and
• overdue child support older than seven years.

Note that some adverse information regarding U.S. government insured or guaranteed student loans, or national direct student loans, may be reported for more than seven years.

Inaccurate Information

Next, look for incorrect information, such as:

• incorrect or incomplete name, address, phone number, Social Security number, or employment information
• bankruptcies not identified by their specific chapter number
• accounts that are not yours or lawsuits in which you were not involved
• incorrect account histories, such as a history of late payments when you paid on time
• any closed accounts that are listed as open -- it may look as if you have too much open credit, and
• any account you closed that doesn't say "closed by consumer."

Request Removal of Bad Information

After reviewing your report, complete the "request for reinvestigation" form the credit bureau sent you, or send a letter listing each incorrect or out-of-date item and explain exactly what is wrong. Once the credit bureau receives your request, it must investigate the items you dispute and contact you within 30 days. If you let the bureau know that you're trying to obtain a mortgage or car loan, it can often do a rush investigation.

If you are right (that the information is inaccurate or incomplete), or if the creditor who provided the information can no longer verify it, the credit bureau must remove the information from your report or modify it based on the results of the investigation. Sometimes credit bureaus will remove an item on request without an investigation if rechecking the item is more bother than it's worth.

What to Do If the Credit Bureau Disagrees

If the credit bureau responds that the information is correct, call the bureau to discuss the problem:

• Experian: 888-397-3742
• TransUnion: 800-888-4213
• Equifax: 800-685-1111

If you don't get anywhere with the credit bureau, directly contact the creditor and have the creditor tell the credit bureau to remove the information. Write to the customer service department, vice president of marketing, and president or CEO. If the information was reported by a collection agency, send the agency a copy of your letter too.

By law, creditors cannot ignore information they know contradicts information in their file, and cannot report incorrect information when they learn that it is, in fact, incorrect.

If you feel a credit bureau is wrongfully including information in your report, or you want to explain a particular entry, you have the right to put a brief statement in your report. The credit bureau must give a copy of your statement -- or a summary -- to anyone who requests your report. Be clear and concise; use the fewest words possible.

How to Rebuild Your Credit

After you've cleaned up your credit report, you need to get positive payment information into your record. You'll need to get a credit card if you no longer have one. If your credit score is too low to qualify for a regular credit card, almost anyone can get a secured credit card by paying a deposit of a few hundred dollars. After you've paid on time for six months to a year, you'll be able to get a regular credit card.

It usually takes about two years to rebuild your credit so that you won't be turned down for a major credit card or loan. After around four years, you should be able to qualify for a mortgage. For more information on rebuilding your credit, see Rebuilding Credit: Don't Use a Credit Repair Clinic.

Don't abuse your new credit card. Be sure to pay off your purchases every month to avoid interest charges. Don't keep your credit card in your wallet if it's going to cause you problems again.

Copyright 2008 Nolo

Nolo is the leading publisher of self-help legal publications, software and forms. NEA members get a 10% discount on books, forms and software at Nolo.com---that's in addition to the substantial discounts already available on their web-site. To view Nolo products and take advantage of the 10% discount, click here: Nolo Discounts.

This article, and hundreds more, can be found on the NEA Member Benefits web site in the “Member Library” section: www.neamb.com/consumer_articles.jsp.

Created for NEA members and their families, the NEA Member Benefits web site informs, assists and keeps you up-to-date on ways to get the best value for your hard-earned money. Each month you'll find exclusive members-only offerings and giveaways. Visit us today at www.neamb.com and take full advantage of your Association membership.

Identity theft again leads list of reports filed by consumers.

Federal Trade Commission

By an overwhelming count, Identity Theft was the leader in the number of consumer fraud-related complaints last year, according to the Federal Trade Commission.

For the eighth year in a row, Identity Theft was the number one consumer complaint in the annual Federal Trade Commission (FTC) Report: Consumer Fraud and Identity Theft Complaint Data, January-December 2007.

Of the 813,899 total fraud-connected complaints received last year, 258,427, or 32%, related to Identity Theft. A distant second was “Shop-at-Home/Catalog Sales” with 8% of the complaints filed.

The FTC report found that credit card fraud was the most common form of reported Identity Theft at 23%, followed by utilities fraud at 18%, employment fraud at 14%, and bank fraud at 13%.

More than $1.2 billion of fraud losses were reported by consumers, with the median loss at $349 per person.

Here is the top ten list of consumer complaints and percentages of total complaints reported:

1. Identity Theft, 32%
2. Shop-at-Home/Catalog Sales, 8%
3. Internet Services, 5%
4. Foreign Money Offers, 4%
5. Prizes/Sweepstakes and Lotteries, 4%
6. Computer Equipment and Software, 3%
7. Internet Auctions, 3%
8. Health Care Claims, 2%
9. Travel, Vacations, and Timeshares, 2%
10. Advance-Fee Loans, and Credit Protection/Repair, 2%

The FTC collects consumer fraud complaints from more than 125 other organizations. The complaints are made available to more than 1,600 civil and criminal law enforcement agencies in the U.S. and abroad.

To file a complaint, call 1-877-382-4357.

This article and hundreds more can be found in the “Member Library” at the NEA Member Benefits Web Site at www.neamb.com.

From the Nolo Rights & Disputes Center

Record the condition of the property to make sure your security deposit will be there when you expect it.

During the exhausting process of moving into a new apartment, the last thing on your mind is moving-out day. But since your landlord is probably holding a sizable chunk of your money in the form of a security deposit, it's risky not to prepare for the end of your tenancy right from the beginning. Before you start unpacking dishes and hanging prints on the walls, take a few simple steps to avoid the misunderstandings and disagreements that have made disputes over security deposits legendary.

Look Under the Hood

Give your unit a thorough inspection before you move in. (Better yet, do it before you sign the lease!) It's best to inspect the premises before you move in; it will be easier to spot problems while the place is bare. Don't neglect to check out things that might not be readily apparent, such as water pressure and sink drainage in the kitchen and bathrooms, the operation of appliances, the appearance of floors and walls, and the condition of the pads under the carpet.

Use a Move-In Checklist

Make a detailed inventory of what you find. The best way to do this is with a good checklist. The more you record about the unit when you move in, the better position you'll be in when moving out to show that certain problems already existed before you moved into the unit.

In some states (see list), landlords are required to give new tenants a written statement on the condition of the unit at move-in time, including a comprehensive list of existing damage. In other states, many landlords provide a checklist to new tenants, but some do not. You can write up a checklist yourself.

Ideally, you and your landlord should fill out the checklist together to prevent any disputes or disagreements. Otherwise, it's smart to bring along a roommate or a friend so that there's at least one other witness to the condition of the unit at move-in time. If you spot problems, describe specifically what is wrong. Rather than simply noting "damage to carpet," for example, state "cigarette burns, frayed edges in carpet next to picture window." The more detailed you are, the clearer it is that you're not responsible for those damages. You and your landlord should both sign the checklist after completing it. Make a copy so that each of you has one.

At the end of your tenancy, you'll make another inspection of the same items, noting their condition at move-out time. If items that were okay at move-in are now damaged, your landlord may hold you responsible for fixing them. But you'll be protected from being billed for damage that existed before you moved in.

Take Pictures

Besides completing a checklist, you may also want to document the condition of your unit with photographs or video. If you take photos, have doubles of them developed immediately (or print your digitals), write the date they were taken on the backs, and send your landlord a set as soon as you get them back. That way your landlord won't be able to claim that the photos were taken later than they actually were.

If you can, use a camera that automatically date-stamps each photo. If you videotape the premises, clearly state the date and time while you are taping, make a copy and send it to your landlord right away. Repeat this process when moving out.

Getting Your Security Deposit Back

If, despite your efforts, your landlord tries to hold on to some or all of your security deposit when you move, read Get Back Your Security Deposit.

Copyright 2008 Nolo

Nolo is the leading publisher of self-help legal publications, software and forms. NEA members get a 10% discount on books, forms and software at Nolo.com---that's in addition to the substantial discounts already available on their web-site. To view Nolo products and take advantage of the 10% discount, click here: Nolo Discounts.

This article, and hundreds more, can be found on the NEA Member Benefits web site in the “Member Library” section: www.neamb.com/consumer_articles.jsp

Take advantage of low rates with group coverage from your Association. NEA members can obtain renters insurance through two NEA-sponsored programs: NEA Homeowners® Insurance underwritten by Horace Mann Insurance Companies and NEA Members Auto & Home Insurance Program® underwritten by California Casualty Management Company. Both programs offer special features for NEA members and their families, at affordable group rates. To learn about these programs and get a rate quote online visit: www.neamb.com. These two programs can be found under Casualty Insurance in the Insurance Programs section.

From Nolo.com

If you want to keep your spending under control, it's essential that you make a budget. A budget allows you to get a handle on the flow of your money -- how much is coming in and where it goes out. With that information in hand, you can make intelligent choices about how to spend.

Keep Track of Your Daily Expenses

The first step in making a realistic budget is figuring out where your money goes. To keep track, you should make an expense record. You may be tempted to turn to a computer program, such as Intuit's Quicken, to keep track of your expenses. That may seem like an easy way to approach the task, but most of these programs have a significant shortcoming -- you don't record your cash outlays. Computer programs have you analyze your expenses paid primarily by check or credit card, and overlook the most obvious source of payment -- cash.

Rather than relying on a computer program, you can keep track of your expenses in an extremely low-tech but comprehensive way: with some paper and a pen. Here's how:

1. Take out eight sheets of paper. You will use one sheet per week, meaning you will record your expenses for two months. By doing this, you'll avoid creating a budget based on a week or a month of unusually high or low expenses.
2. Select a Sunday to begin recording your expenses.
3. Record that Sunday's date in the blank at the top of one sheet of paper.
4. Carry that sheet with you at all times.
5. Record every expense you pay for by cash or cash equivalent -- check, ATM or debit card or automatic bank withdrawal. Don't record credit card charges, as your goal is to get a picture of where your cash goes. When you make a payment on a credit card bill, however, list the items paid for.
6. At the end of the week, put away the sheet and take out another. Go back to Step 3.
7. At the end of the eight weeks, list seasonal, annual, semi-annual or quarterly expenses you incur but did not pay during your two-month recording period. The most common are property taxes, car registration, magazine subscriptions, tax preparation fees, insurance payments, and seasonal expenses such as summer camp fees or holiday gifts.

Total Up Your Income

Your expenditures account for only half of the picture. You also need to add up your monthly income.

On a blank sheet of paper, list the jobs for which you receive a salary or wages. Then, list all self-employment for which you receive income, including farm income and sales commissions. Finally, list other sources of income, such as the following:

• bonus pay
• dividends and interest
• alimony or child support
• pension or retirement income
• public assistance

Next to each source of income, list the net (after deductions) amount you receive each pay period. If you don't receive the same amount each period, average the last 12.

Next to each net amount, enter the period covered by the payment -- such as weekly, twice monthly (24 times a year), every other week (26 times a year), monthly, quarterly or annually.

Finally, multiply or divide the pay period into the net amount to determine the monthly amount. For example, if you are paid twice a month, multiply the net amount by two. If you are paid every other week, multiply the amount by 26 (for the annual amount) and divide by 12. (The shortcut is to multiply by 2.167.)

When you are done, total up all the amounts. This is your total average monthly income.

Make Your Budget

After you've kept track of your expenses and income for a couple of months, you're ready to create a budget. Your twin goals in making a budget are to control your impulses to overspend and to help you start saving money. Follow these steps:

1. On a blank piece of paper, write down categories into which your expenses fall. (See the list below for suggested categories.) Also, total up your two months' (or estimated seasonal, annual, semi-annual or quarterly) expenses for the categories you create.
2. Starting on a second piece of paper, list your categories of expenses down the left side of the page. Use as many sheets as you need to list all categories. These are your budget sheets.
3. On the sheets containing your list of categories, make 13 columns. Label the first one "projected" and the remaining 12 with the months of the year. Unless today is the first of the month, start with next month.
4. Using your total actual expenses for the two months you tracked and your estimated seasonal, annual, semi-annual or quarterly expenses, project your monthly expenses for the categories you've listed. To find your projected monthly expenses, divide your actual two months' expenses by two, divide your total seasonal or annual expenses by 12, divide your semi-annual expenses by six and divide your quarterly expenses by four. After you've divided up your seasonal or annual expenses, you might want to include only the major expenses -- such as quarterly loan payments or tax bills -- in your monthly budget projections. Just make a note of when smaller expenses, such as magazine subscriptions, are due so you can adjust your budget for that month. These temporary adjustments make more sense than trying to save $1.23 each month so you can pay for your magazine subscription once a year.
5. Enter your projected monthly expenses into the "projected" column of your budget sheets.
6. Add up all projected monthly expenses and enter the total into a "Total Expenses" category at the bottom of the projected column.
7. Enter your projected monthly income below your total projected expenses.
8. Figure out the difference.

If your expenses exceed your income, you will have to cut expenses or increase your income. One way to do this is to make more money -- but let's assume that you are not likely to get a substantial raise, find a new (higher-paying) job, take on a second job or make significant money by selling assets. This means you must decrease your expenses without depriving yourself of items or services you truly need. Review your expenses with any eye toward reducing. Rather than looking to cut out categories completely, look for categories you can comfortably reduce slightly. For example, let's say you need to cut $175 from your budget. You had also planned on spending $75 a month to eat out dinner, but are willing to decrease that to $25, thereby saving $50. Keep looking for categories in which you can make similar, small adjustments.

Staying on Track

Don't think of your budget as etched in stone. If you do, and you spend more on an item than you've budgeted, you'll only find yourself frustrated. Use your budget as a guide. If you constantly overspend in an area, you need to change the projected amount for that category -- without berating yourself. Keep in mind that a budget is designed to help you recognize what you can afford; it's not just an exercise in filling in the "correct" numbers. Check your figures periodically to keep an eye on how you're doing. If you never have enough money to make ends meet -- you're using credit cards and not paying the balance in full each month -- it's time to adjust some more.

If you continually come up short, you may need to consider some larger changes. For example, you might sell your newer car for an older used car to free yourself from car payments. As you make adjustments to your budget, give careful thought to your priorities. Everyone has different ideas about what luxury is, and different feelings about what they're willing to give up and what they just can't live without. Think about what you value, and be honest with yourself.

You may have to sacrifice some things that feel important to you, but don't expect to stick to your budget if you've taken away funds for almost everything beyond food, shelter and bills for your mundane necessities. Try making a list of things you feel you can't live without, and whittle your other expenses down to accommodate them. For example, you may decide to give up most of your magazine and newspaper subscriptions because you know you'd go nuts if you couldn't go to the movies once a week. If you make room for at least some of the things you love most, you're much more likely to succeed at your plan.

Home
rent/mortgage
property taxes
insurance (renter's or homeowner's)
homeowner's association dues
telephone
gas & electric
water & sewer
cable TV
garbage
household supplies
house wares
furniture & appliances
cleaning
yard or pool care
maintenance & repairs

Food
groceries
brea