Let’s face it. The economy stinks right now. But the holidays are upon us and we want to buy our loved ones gifts, entertain, and possibly even travel. As we saw by the recent events at various Wal-Marts and other locations on Black Friday, shoppers are really stressed out and are doing anything they can to get a good deal.

If you’re like most Americans, your shopping list is a mile long, your social calendar is full, yet your patience is thin and your budget is stretched to the max. So what can you do to achieve your holiday shopping goals and stay sane at the same time?

If your holiday mantra is “Bah Humbug!” rather than “Ho Ho Ho”, try these tips to reduce your stress and enjoy the holiday season:

• Relax your expectations. You don’t have to find the perfect present. You don’t have to cook the perfect meal. Your family loves you for yourself, not for your Beef Wellington.
• Let your kids pitch in. They may turn out to be excellent gift-wrappers or table-setters!
• Stick to your budget. Overspending will add to your stress for months or even years to come. See tip #1.
• Plan ahead. Shop early. Watch for sales. Set up a savings account for next year’s expenses.
• Have a car loan? See if refinancing makes sense, and cents (and dollars) in your pocket!
• Potluck! If you’re entertaining, save money, time and stress by making it a potluck!
• Find time for fun. As they say, laughter is the best medicine!

Holiday season doesn’t have to be stressful. Be thankful for what you have, and have fun!

Summer is here and we are going tropical! Visit any branch and enter to win a weekly drawing for either a $50 L&L Hawaiian Barbecue or Roy’s Hawaiian restaurant gift cards! While you’re here, enjoy Hawaiian music and find out more about all of the great products and services we have to offer, like:

• Free Checking
• Low-Rate Auto Loans
• MasterMoney Debit Cards
• Free Online Banking and Bill Pay
• No Annual Fee Credit Cards with Rewards

Visit us today and enter to win!

Aloha Days will run August 1-31, 2011. One gift card awarded weekly, with five winners total. One entry per person. No purchase necessary. Winners will be chosen by random drawing each Friday and the winner will be notified the following Monday.

How can you teach your children to be smart shoppers?

Turn off the TV. According to Money Magazine, kids watch an average of 40,000 TV commercials each year. It’s no wonder they know the jingles, slogans and mascots so well!

Talk to them. Explain what ads are and how companies are trying to influence their behavior. A little healthy skepticism is a good thing!

Teach them to comparison shop. Let them help you clip coupons. Show them how they can save money by waiting for sales. Challenge them to find the best price on those items they “have” to have.

Set a good example. Kids pay more attention to what you do, than to what you say. Be a smart shopper yourself, and your kids will probably do the same.

Want to teach your little one the importance of saving money?

Open a Kids Club Savings Account at Matadors Community Credit Union! We offer a Little Savers (up to age 12) and Teen Savers (13-17) accounts, plus a special Teen Savers Checking account if they’re 17. Learning about the value of money and how to manage your money should start at a young age. Your child or grandchild will thank you some day.

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

This is good news, considering many consumers may have purchased CDs, or Share Certificates, that expire in 2010, and they may not have been insured, depending how their accounts are vested, had the limits gone back to $100,000.

Also, it makes it easier for consumers to invest money in a credit union or bank if they are single with no beneficiaries and want to invest more than $100,000. Caveat – I always recommend adding at least one beneficiary to any bank or credit union account. Worst case, if something should happen to you, you don’t want your money sitting in probate, making it very difficult for your loved ones to get access to.

Remember – IRA Accounts are insured separately. So you can have a regular Certificate account for $248,000 (remember to allow for interest accruing, you don’t want to go over the insured limit!) and an IRA account for the same amount and still be insured.

Not sure how much you’re insured for at your financial institution? Find out how much you are insured for here !

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

Between diapers, bottles, formula, and clothes, the smallest member of your family can run up some pretty hefty bills. And these items are just the beginning! Here are a few unexpected expenses that will be helpful to consider before your baby arrives.

Even if you have health insurance, you may need to pay deductibles or co-pays. Since the first year of life involves plenty of doctor visits, these expenses can really add up. Review your policy carefully so you know what to expect.

Some families decide to have one spouse stay home, but the loss of income may require lifestyle changes. Other options include daycare, home daycare with a friend or family member, or hiring a nanny. You’ll need to weigh the financial costs against your desires for your child before deciding which option is best for you.

Once you have a child, life insurance is more critical than ever. The amount needed is different for everyone, but a general rule of thumb is six to ten times your income. This will allow your family to continue in their current lifestyle as well as provide for college and other expenses.

So what can you do? To help cover medical expenses, find out if a Health Savings Account, or HSA, can benefit you. HSA’s are what I like to call “medical IRA’s”. They help you save for future medical expenses, and come with several tax benefits, and may end up saving you money! Find out more here! Or, ask your insurance agent if an HSA makes sense for your situation.

To help save for your child’s education expenses, consider opening an UGMA, or Uniform Gift to Minors Account. The interest earned is tax-free until they’re 18 years old. Find out more here.

Or, you can open a 529 College Savings Plan, which also comes with major tax benefits. Keep in mind, though, that these plans are not federally insured. Find out more about 529 plans here.

It’s a good idea to start saving for your children, and the expenses that they come with, as early as you can. Even if you start small, over the next 18 years you’ll be surprised at the new bundle (of cash) that you have!

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

With more and more Baby Boomers reaching retirement age, Congress is beginning to pay special attention to IRAs. A few years ago, Congress approved increased contribution limits and raised the income threshold for deductibility of contributions. IRAs are a good, secure way for most Americans to build a nest egg for their “golden years.”

The real beauty of IRAs isn’t necessarily the tax-deductibility of your contributions (and remember to check with your tax advisor regarding deductibility). IRAs are still a wise choice even if you can’t take the deduction on your tax return. Why? Because you have the advantage of compounding over time. The sooner you open your IRA, the longer the funds have to accumulate interest. That’s the true value of an IRA.

It’s in your best interest to speak to a tax advisor before opening a new IRA to find out which one is best for you – Traditional or Roth.

Keep in mind that tax laws limit your 2008 and 2009 IRA contributions to $5,000 per year, or $6,000 if you’re age 50 or older, so starting later than 25 years of age means you’ll more than likely have to supplement your IRA with another savings account that may not provide you with the tax benefits of an IRA. And remember, you have until April 15th, 2009 to make a contribution for the 2008 tax year.

Leaving your company? Have a 401K? You can roll that 401K into an IRA with no tax consequences, as long as you do a direct transfer.

The moral of the story is the earlier you start planning for retirement and making it a regular part of your budget, the greater the chance that you’ll remain faithful to your plan. It’s never too early to start setting money aside, even if it’s a little at a time.

When looking for a home for your IRA, make sure you get all the account details. Will you be charged an annual trustee fee? Will you be charged if you decide to move your IRA to another broker or financial institution? Some of these fees can add up, so make sure you know the facts before you make the plunge.

Don’t want to put your money into the risky market? Matadors Community Credit Union offers a wide selection of IRA options at competitive rates. Choose from an IRA Savings Account with a low $100 minimum to open, or if you want to earn more interest, you can choose from a 12- to 60- month Share Certificate, with a $1,000 minimum to open. And both have no annual fees! You can even rollover your 401(k), 403(b), or 457(b) into an IRA at MCCU. For information or to start your IRA, contact MCCU today!

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

Basically, there is this family of seven – yes, seven - in Arizona who lives off of only $44,000 a year, and have already paid off their first house in just nine years and are almost paid off on their second home. Now, I don’t know if this is a coincidence, but their last name is Economides. That’s right. Maybe it’s in their blood to be economical?

How do they do it?, you might ask. Budget, budget, budget. And lots of careful planning. In a nutshell, they plan out their menus in advance, clip coupons, and when they hit the grocery store, they split up to find the best deals.

They also refuse to use any credit cards. Which backs up what I always say to students and groups I speak to about money management. Never charge on a credit card what you can’t pay back at the end of the month. If you think you can’t do that, then a credit card is not advisable for you. You don’t want to rack up thousands in charges and then pay interest on top of that.

The Economides’ advice to others: Make a plan and stick to it. Figure out what your monthly income is, and then what your monthly expenses are. Plan out your spending for the month, and don’t divert off the plan.

For more on how they did it, and to view their website (and family business) go here. In these tough economic times, I think we can all learn something from the Economides’. I am completely inspired by their story, and I hope you will be too.

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

But when do you start? As soon as a child can count and begin to distinguish between coins, he or she is ready for their first financial strategy: Don’t eat the money. Here’s how to teach about money at each stage.

Toddlers and Preschoolers

At this age children can sort coins, learn their value, and begin to understand how money gets converted into “things”.

5- to 7-Year Olds

By the time they start school, many children are ready to receive an allowance. The goal is to give your child the opportunity to budget, spend and save his or her own money. Most experts agree an allowance should not be linked to chores or grades. Extra money for special jobs such as cleaning out the garage is fine.

The amount of the allowance depends on which expenses the child is expected to pay, so sit down with your child and map out a weekly or monthly budget. One suggestion is to pay 50 cents per week for each year of the child’s age.

You can encourage saving by dividing the allowance among three jars. Money in jar 1 can be spent on whatever the child chooses. Jar 2 money is saved for a more expensive item, like a toy or book. Jar 3 is reserved for long-term savings, such as a college fund. Pay interest (even a few pennies at a time) to jar 3 money. Children are fascinated when money makes money.

8- to 10-Year-Olds

Make a trip to the credit union to open a savings account. Let your child fill out the deposit slip, and explain that the credit union will pay interest.

Include your child in family discussions of finances, such as budgeting and planning for family vacations. Explaining how you decided to forgo the fancy sports car in exchange for a sedan and a family trip to the beach can teach about trade-offs and your family’s values.

11- to 13-Year Olds

If your child shows interest in the stock market, choose a few stocks, such as McDonald’s and Disney, and follow them for a few months. If the child has earned income from a paper route or baby-sitting, for example, he or she can set up a Roth IRA that will accumulate a tax-free retirement nest egg. A $1,000 investment at age 12 can grow to over $150,000 at age 65.

MCCU offers Kid’s Club Savings Accounts – open it and earn interest with as little as $5.00. It’s a great way to teach your children how to save money and watch it grow.

Questions or Comments? E-Mail me at blogger@matadorsmoneymatters.com.

The article goes on to say that several insurance companies are rushing to open banks as more Americans open health savings accounts, a tax-sheltered way to pay medical bills. Managing that money is more profitable than offering health insurance. Interesting, yes? So what is a Health Savings Account anyway? Read on…

A Health Savings Account, or HSA, is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their health care. HSA’s enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis. The HSA doesn’t have a “use it or lose it” rule; your money will roll over to the next year.

If you’re on a high-deductible health plan and want to get a possible tax break, you should consider opening a HSA. It allows you to make tax-deductible contributions, and the earnings in your account grow tax-free. As long as your distributions are for qualified medical expenses, you will not pay any penalties or taxes. Remember, though, always consult your tax advisor before opening this account.

Am I Eligible?
To make contributions to a HSA, the account owner must meet all of the following requirements:

• Must be covered under a High Deductible Health Plan (HDHP)
• Is not covered by any other health plan that is not a HDHP
• Is not enrolled in Medicare
• Is not actively using a Flexible Spending Account (FSA)
• Cannot be claimed as a dependent on another person’s tax return
• Is less than 65 years old. Individuals may not make regular contributions to a HSA in or after the tax year they reach age 65.

What are Qualified Medical Expenses?

• Actual medical expenses, including doctor visits, prescriptions, transportation to get medical and dental care.
• Long-term care insurance
• Healthcare coverage when unemployed
• Certain continuation-of-benefit healthcare coverage

Need money to start your HSA? Do you have an IRA? You can make a one-time transfer from an IRA (Individual Retirement Account) to a HSA, with no penalties or taxes.

Talk to your insurance agent and ask them if it makes sense for you to be in a high deductible health plan. If it does, it might be to your advantage to open a HSA. You can open it with the minimum balance required and make monthly contributions.

Go here for more information including contribution limits and what qualifies as a HDHP.

And finally, just a quick little note about the fact that insurance companies are opening banks. In today’s economy, does it really make sense to open a new bank? Do they have the experience and knowledge to do this successfully? Personally, I would rather trust my money to a financial institution whose sole purpose is to provide financial products and services, not as a “side business” as these insurance companies are.

Questions or Comments? E-Mail me at blogger@matadorsmoneymatters.com.