Twila Van Leer

Spouses Who Lie bout Finances

February 11, 2018 by Twila Van Leer

Managing money is one of the top concerns couples list when they talk about problem areas. Throw in a situation in which one – or both – of the partners are not truthful about money matters, and you have the makings of marital disaster.

The lies can be about any aspect of the couples’ money management, but often include hiding spending on unplanned shopping, gambling or taking on additional debt without consulting the partner. It’s the cause of a lot of anguish in many marriages. Some experts go so far as to call it a form of infidelity.

If you suspect that your spouse is failing to tell the whole truth about finances, what do you do? Before confronting the spouse, experts advise, find out as much as you can about your current financial condition. Check bank statements over the past year to see if the untruths have been going on for an extended period. Try to have specific examples of the issues you want to discuss.

It is possible that your assumptions are not correct. Discuss your concerns in a calm way and listen to what the offending spouse has to say. It is possible that lies about money are related to other problems, such as shopping addictions, gambling or possible criminal behavior. You may find that as a couple you have more debt issues than you supposed.

Could be that the problems are so serious that you consider them a deal breaker. The answer is particular to the two persons involved. Whenever there is a breach of trust, healing may take a long time. If the offending partner is not willing to address underlying issues and make a real effort to change things, it may be hard to move forward.

If you choose to remain together, make definite plans for handling your money. Considering separating your accounts with each taking responsibility for certain expenditures. Or let the responsible partner have control until trust has been re-established.

A budget is the easiest way to account for money. In most cases, each partner would be expected to make the same contribution toward shared expenses. The person who has lied about money issues should be willing to share records that account for his or her money handling.

Seeking counseling may be necessary if there is evidence of an addiction related to money. Such addictions are as real as those related to drugs or alcohol.

If the marriage is to be salvaged, there must come a time to forgive and forget the issues so that you can move beyond them. That may take some time.

Giving And Getting For Christmas

December 16, 2017 by Twila Van Leer

Even though most people subscribe to the wisdom that giving is better than receiving at Christmas, the same people also hope that the gifts they receive will be what they want.

Some assure themselves of the right gifts by buying them for themselves. Nothing wrong in that as long as they keep the costs in control.

TD Bank surveyed holiday shoppers and reported that the average amount they expected to spend for gifts was $500. But when all is said and done, one in five (one in three in the Millennial group ) admit to spending more than they had planned — $263 on average. A lot of the overage is consumed in buying items for themselves. In doing so, these shoppers may sacrifice the ability to reach other financial goals they have set., such as building emergency savings or increasing retirement funds.

Creating a budget before the holidays arrive and sticking with it is the best solution. The problem, though, is that while shopping, the shoppers see more items they would like for themselves.

Five ways to assure that you get the gifts you’d like without breaking your own bank:

Ask For Gift Cards

Ask for gift cards. That might have been a breach of holiday etiquette in years past, but it has become more common. More than half of Americans (56 percent overall, 67 percent of Millennials) say they do it. Consumers who were surveyed said they would rather get cards than traditional gifts. Be sure to use the value of the gift card to purchase what it is you want. You can convert the value of the cards into savings if that is your goal.

Create A Wish-List And Share It

Make a list and check it twice. Presenting a list of preferred gifts to your family and close friends will increase your chances of getting what you need/want.

Sell Unwanted Gifts

Sell gifts that you do not care to keep. Consider using eBay, OfferUp or Craigslist to sell non-clothing items. Shoes and clothing can be sold trough poshmark.com or thredup.com. Unused gift cards can be swapped out or exchanged via sites such as giftcardsgranny.com.

Or you can start at the beginning and include the items you want for yourself in the initial budget. That will only work if you are honest about how your self-gifts will affect your overall spending. You’ll have to decide if you will have to trim your list if you are on it.

Create A Special Christmas Account

Start early. Review what you did last holiday season. Open a separate savings account that anticipates what you are likely to spend this go-round. Automating the deposits into this account will spare you the temptation to bypass the arrangement to accommodate an immediate desire. Putting the savings into a high-yield account will increase the holiday fund and possibly allow you to shift the excess money into an emergency or retirement account when the season is over.

Managing Financial Stress

January 13, 2015 by Twila Van Leer

Know the difference between needs and wants.

Americans born after World War II grew up in an era of unparalleled prosperity and now it shows. Part of what built that great economy was the entrenched attitude that “I need more.”

The result was unmanageable national debt, waste of natural resources, class conflict and a frustrated populace. Now, those who are retiring may find their resources have shrunk. Those still in the workforce are facing the necessity of living lean, a lifestyle for which they aren’t prepared. It is no longer possible to rob the future to pay for fun and games in the present. Now it’s time for serious reflection on whether “wants” can be allowed to dictate personal finances.

It is possible to live frugally and build up a reserve that will create financial security. But it requires some thinking in advance. At the top of the list is the essential attitude that needs must trump wants. You NEED a roof over your head. You WANT a mansion with a backyard pool. Getting the difference engrained in your mind is the starting point for financial independence.

As a very practical exercise, consider two scenarios: If you have a home with 2,300 square feet of space, purchased for $310,000 with 20 percent down on a 30-year mortgage at 4.5 percent interest, you pay some $1,259 per month. Under the “I need more” mode, you could consider a 3,200-square-foot home with an asking price of $496,000. The 20 percent down is now $99,200, a $37,100 increase. At the same mortgage rate and term, you face a monthly payment of $2,011, an increase of $752 per month. Investing the difference between the two houses, at 6 percent average growth rate, could net you $980,000 in reserves.

The comparison does not consider taxes, insurance, utilities and upkeep expenses or the pressure to fill extra space with “things” worthy of the more expensive home.

Owning too much actually can cause mental stress, experts say. Psychiatrist Elana Miller notes that “Having too much is hazardous to a healthy way of life. The more you own, the more time and energy you use to keep track of it and the more you worry about breaking or losing what you worked so hard to get.” She recommends learning to be grateful for what you have and determined to get by with less. An attachment to physical things may force you to work beyond the usual expectations.

Many of today’s health problems are related to excess. Obesity is rampant, with two in three Americans grossly over healthy weights. This has contributed to increases in diabetes, heart disease and some cancers. Surgeries to counter weight gain have made surgeons wealthy, costing $18,000 to $35,00, with costs likely not to be reimbursed by health insurance plans. The blame for the epidemic in overweight is directly attributable to overeating and the overuse of high-calorie foods and drinks. The size of portions also has increased as Americans clamor for more. The nutritionally wise suggest half of what the standard restaurant serves.

Better yet, they say, cut down on eating out and fix more nutritious and less expensive meals at home. If you do go out, share an entrée or take half home for another meal. Cutting 500 calories a day, for many people, can lead to a one-pound-per-week weight loss. Both your wallet and your body will be happier.

Living lean can result in more savings, more security for retirement, and the sense of well-being that comes with not stressing over possessions. You may live not only longer, but better if you feel positive about yourself and your situation. You’ll have more control of your future.

Federal Reserve Notes Steady U.S. Economic Growth

November 28, 2014 by Twila Van Leer

Federal Open Market Committee and the Governors of the Federal Reserve Board met on Oct. 28-29. Their next meeting will be in mid December.

Fed. Concerns: Market Unrest, Overseas Weakness

October meetings of the Federal Reserve dwelt on turbulent financial markets and overseas weaknesses, but these items failed to deter the fed from going ahead with plans to end landmark bond buying.

Recently released minutes from the meeting showed that the agency was concerned about fluctuations in U.S. stock prices and in economic wavering in Europe and Asia. Inflation, which has been held below 2 percent, could go even lower because of falling energy prices and strengthening of the dollar.

If the Europe and Asian economies continue to dip, it could have a dampening effect on U.S. growth, although the nation’s finances are deemed to be on solid footing and expected to keep improving.

When the fed announced in September that an increased interest rate would be delayed, Wall Street experienced a big rally. The October viewpoints seem to have had little effect on the market. It is now anticipated that the rate hike will take place next June, depending on how the data fall out between now and then.

Based on information coming out of the October meeting, most private economists are taking a mid-2015 rate increase as most likely.

The Fed has been gradually decreasing its bond-buying program since last December. It was a move aimed at keeping long-term interest rates low. Improved employment statistics has promoted a decline in the program, an indication that the Fed is less concerned with the labor market.

Most participants of the meeting agreed that economic activity continues to expand at a moderate pace.

They reported that the recent decline in energy prices will provide a nice boost to consumer spending in the near future. Lower-income households in particular will benefit. Low interest rates, rising consumer confidence and a decline in the levels of household debt to income ratio are part of what will make the coming months look brighter.

Wal-Mart Offers new GoBank Accounts Without Overdraft Fees

October 31, 2014 by Twila Van Leer

WalMart New Accounts — Shopping giant Wal-Mart has opted to provide a card-based program for customers who may overspend their accounts while purchasing in their stores

Joining other large retailers that engage in semi-banking practices, shopping giant Wal-Mart has opted to provide a card-based program for customers who may overspend their accounts while purchasing in their stores.

The world’s largest retailer had teamed with Green Dot Corp., a leader in creating reloadable prepaid cards. New mobile checking accounts issued by Wal-Mart under the cooperative effort will not require fees for overdrafts and bounced checks. An $8.95 monthly fee will be charged for these GoBank accounts. The fee is waived if there is a deposit of $500 or more each month.

Accounts can be opened by purchasing a $2.95 starter kit at any Wal-Mart Store. A smartphone is a necessity, since most of the banking transactions are done through an app. Credit Bureau ratings commonly used to determine eligibility are not part of the application requirements. The idea behind GoBank is to provide options for people who don’t have a lot of money and may have poor credit scores.

The kit includes a MasterCard debit card that can be used to withdraw money or make purchases. No fee is charged for ATM withdrawal services at the 42,000 locations around the country. If money is withdrawn from ATMs outside the system, a $2.50 charge is levied. A 3 percent fee is added to withdrawals outside the United States.

The new arrangement is one of several moves being made to help Americans who are still feeling the effects of the recent recession. Both Bank of America and Citibank have begun offering fee-free accounts this year.

Regulators have been looking more closely at overdraft fees, which in some instances can go up to $35 per incident. The regulators have responded to concerns by requiring banks to get written approval from a customer to provide overdraft protection, which allows a customer’s account to dip below zero. Those who choose to have the overdraft protection still pay high fees. Some customers at large banks regularly rack up fees in the neighborhood of $260 a year, according to the Consumer Financial Protection Bureau.

Wal-Mart’s Daniel Eckert, senior vice president for services, said GoBank was the retailer’s response to customer concerns that regular banking fees are too high.