ABC News Now - Frugal Holiday Tips Starting NOW

Here’s the link to my major media appearance on ABC News Now “Good Money” where we talked about frugal holidays. View the winning tips entries from Summer who lives in Springfield, OR; Sasha Payne and from Ann in Charlotte, North Carolina. Each of these frugal tipsters got a complimentary copy of my book, The Little Book of Big Savings, just for sharing their tips.

It’s no surprise that everyone racks up massive debt during the holidays, but I say the time to start saving and preparing is now! Buying early is the key to holiday savings. Set a holiday spending plan, make your list, scour the sales and mark off items purchased. By the time the holidays get here, you could have most of your gifts already bought and consequently have minimal credit card charges.

There are 2 areas we can save the most money: gift giving and the food. First, shopping for clothes: I think they are going to be a common gift item as families need practical gifts to recover from the recession year. The next time you’re shopping clearance racks at your favorite clothing store in the mall, don’t let the wrong size on the rack become a deterrent to saving. First, ask the sales associate to check the back for your size. Many stories do not put all their clearance items out front. Secondly, if they do not have your size, ask them to check another store, give you the sale price and ship it free. More and more stores are starting to offer this service in order to compete with online retailers.

The second area is food and it’s important to look out for how much you spend on groceries for the holidays. Don’t settle for just one kind of savings at the grocery store. Instead learn to add “layers” of savings such as store sales, coupons, double coupons, cash off your next shopping trip, store coupons and more. One place to go is http://www.couponmom.com/ to see what items are on sale with a coupon in your neighborhood. According to the USDA cost of food at home in 2008, the average family of 4 spends $7,968/year on food and by following these tips can spend in the thrifty category of only $4,068/year.

Thanks for your tip entries and keep posted for our next contest where you can win a book and have your tip or question featured on national television, too!

Ellie Kay

America's Family Financial Expert

http://www.elliekay.com/

Win Ellie's New Book - Submit Your Ideas for Frugal Holidays

It's time for you to have another chance to win a copy of Ellie Kay's new book, "The Little Book of Big Savings" (Waterbrook/Random House, 2009).

According to a new study, the new frugality is here to stay. The report indicates that post-recession spending is predicted to be at 86% of what it was pre-recession. So that means, Americans will be spending 14% less than we did before our economy tanked.

Along those lines, how you are going to be frugal during the holidays this year? What are you frugal tips to save?

Enter your frugal ideas at Ellie's blog at: http://halfpriceliving.blogspot.com/ and/or send a copy of your tips to assistant@elliekay.com .

If the producer selects your questions to air on ABC NEWS "Good Money" on Sept 15, 2009, we will send you a free copy of Ellie's book! Please be sure to send us your email address, so we can contact you if you win.

The deadline for submissions is September 14, 2009 at 6:00 PM PST .

Happy Savings!

Ellie Kay

America's Family Financial Expert (R)

http://www.elliekay.com/

Is the New Frugality Here to Stay? -- Ellie on FOX NEWS - Neil Cavuto

A new study by research firm AlixPartners indicates that when a new normal sets in after this recession is over, Americans will spend at about 86 percent of their pre-downturn level. Today, I was on Neil Cavuto to discuss with guest host, Stuart Varney, whether this new frugality is lasting or just a passing fancy.

I believe it's here to stay for several reasons. I think that the hard-earned, hard-learned lessons of the recession are not likely to fade as soon as our economy shows its first two quarters of growth. Some of those lessons came through job loss, foreclosures and underemployment and if you weren't directly impacted--you know someone who was.

Secondly, I think that we're not going back to those pre-recession spending levels because there will be what I call a forced frugality. While there will always be spenders out there, it’s going to be harder to spend because:

· NO MORE EASY CREDIT the days of easy credit won’t be so easy as lenders continue to scale back on available lines of credit. One of the reasons Americans could spend beyond their means was because of the ready availability of easy credit.
· NO EQUITY - there’s not going to be the equity in your home to leverage in order to pay for consumables. The people who used home equity to pay for vacations, get out of consumer debt or add a new kitchen are now wishing they had the equity instead. Some of these people are even upsidedown in their homes because of leveraged equity.
· EMPLOYMENT ISSUES – Because spending is down, more job sectors are going to continue to be impacted. As people spend less, more folks lose jobs and unemployment may continue to rise even after the recession if officially over. It’s going to take a while for the job market to bounce back—unemployment and underemployment are going to be continued problems.

Thus, the need to adopt the new frugality as a classic style rather than a passing fad. People like me, who have been preaching the gospel of living within your means, paying cash, paying down consumer debt and letting your kids go to a college you can afford---are now in high fashion.

I hope this kind of fiscal sensibility never goes out of style!

Ellie Kay
America's Family Financial Expert (R)
http://www.elliekay.com/

College Credit Card Debt -- Ellie answers on ABC NEWS NOW

As a mom of many (with three in college in 2009) and as "America's Family Financial Expert," I know a bit about college kids and credit card debt. Recent studies indicate that the average college student will graduate with $3,000 in consumer debt (in addition to $20K in student loans). This translates into BIG trouble for those starting out in life.

For example, our son, Daniel, recently graduated from college and then got married right away. Because he did things right and worked very hard, he has no car loans, no consumer debt, no student loan debt and a GREAT degree from the University of Texas. But then he lost his part time job--the one he was hoping would turn into full time work even as he was applying elsewhere (hint: it's not a great time to be a print journalist looking for work). But because he was debt free, he and his new wifey weathered the storm. Within three days, he had in 16 applications and within three weeks he was employed again--this time full time. If he had consumer debt, he would be in trouble.

So how do you navigate your kids toward financial literacy while in college? And how does the new Credit Card ACT impact your student? Click onto the link to hear the answers I gave on ABC NEWS NOW, "Good Money" to these questions and YOUR questions:

My question is why would you want to pay off a credit card while you're in college, making very little if any income? Why not pay the small minimum payment due each month, and pay off the balance after graduation? You would have a much higher paying job with a new college degree, and could pay off the balance (hopefully) within the first six months to a year of employment.
Teresa, Boise, ID

Our oldest daughter is entering her junior year of college, and has so far avoided any credit card debt by very purposefully not having a credit card. She has said that she knows the temptation for impulsive spending would be too great, so she would rather not open that door. While I admire her self-awareness, I am concerned that she is not establishing a "good credit" rating for herself. Is my concern valid? If so, do you have any advice for helping her manage a credit card responsibly?
Debra Devens, MA

Our daughter is a freshman this year. She is carrying 19 units so having a job is very difficult. She is on the waiting list for a job on campus and no one seems interested in hiring only for the weekends. It’s hard for her to get and pay off a credit card with no job. Do you have any suggestions?
Crystal Rough - Lancaster, CA

Is it a good idea to set up a debit card for college students so they can only spend what’s in the check acct? Wouldn’t that limit the % on a regular charge card if over extended?
Mitchell, West Bend, WI

Should parents help their student get a card, give them a set dollar amount, then let the student use the card to buy things, with the parents paying the bill, to build up the student's credit rating? Cherie Cheramie from Norton, OH

When you are a college student and keeping a budget, trying to pay credit card debt, what should you do if you don't have a stable income? Kelly, St. Louis Park, MN

All these readers got FREE copies of "The Little Book of Big Savings" and "Money Doesn't Grow on Trees." CONGRATULATIONS!

Ellie Kay

America's Family Financial Expert (R)

http://www.elliekay.com/

Win My New Book - Questions on College Credit Cards

Once again, it's time to give you a chance to win a copy of my new book, The Little Book of Big Savings . In case you missed the discussion about paying for college, then take a peek at ABC News Now for last week's media appearance. It answers questions as to how we are putting all of our kids through school debt free.

You'll see from previous blogs that others have already won their free book and this week, I'm throwing in one of my other titles as well: Money Doesn't Grow on Trees.

I'll be guesting on a national show on August 28th talking about: Credit card debt for college students: How to avoid getting buried in debt and finding ways to consistently pay if off even though they don’t have a steady income.

Get creative and ask me your questions on this blog or by emailing them to assistant@elliekay.com . If the producer selects your question to have me answer on the air, I'll send you both of my books as a way of saying "thank you." We need to have your questions posted or submitted no later than Tues, Aug 25th at 6:00 PM (PST).

Happy Savings,

Ellie Kay
America's Family Financial Expert (R)
http://www.elliekay.com/

Ellie Answers Your Questions on ABC News - "Good Money" Show

I was recently in New York on the set of a fun new show called "Good Money" and I solicited questions from this blog to ask on the air. By now you know if the producer chose your question to read on the air and you also have a free copy of my new book, The Little Book of Big Savings (Waterbrook, 2009) on its way to your mailbox! If you didn't win this time, don't give up! We'll post new ways to win a copy of my books in the future.

Here is a link of me answering your questions on ABC News Now - Good Money. Follow this live link to listen to my answers to the following award winning questions:

My husband and I want to get out of debt, but we each have a different idea as to how to go about achieving this. Any advice on how to get on the "same page"? Bren Jones - Vienna, WV

Deals4moms.org said... After all your experiences with counseling couples, can you say that your financial advice has helped to save marriages?If yes, what are the 3 top things that helped those couples?

Audrey asked...Here's my question-if one spouse makes more than the other, how can the budget be equalized?

L A Hughes said... Dear Ellie Kay,I saw your advice to the married couple who found it difficult to communicate about spending on Nightline. My question concerns couples who are dating, engaged, etc : Do you have any suggestions or tips for how couples can learn discover, understand or achieve common ground about attitudes about money--before marriage--without sacrificing romance, or without seeming pushy?

How can you have some fun and adventure with your spouse when you really shouldn't spend money to go out on a date night once a week because you have so many other bills to pay, and it gets boring just sitting home watching a movie and ordering a pizza or worse making your own dinner when it is supposed to be a break from the routine and not work. Kim from Manchester, Maryland.

OK, guys, we'll do this again in the future and please remember I didn't choose the questions to air, the producer did!

Ellie Kay

America's Family Financial Expert (R)

www.elliekay.com

Tax Free Holidays

Consumers across the country are searching for ways to cut their spending and still buy what they need, especially when shopping for back-to-school essentials for kids. Many states offer tax free holidays during the back to school shopping season to help families purchase back to school necessities.


The tax free holidays are just around the corner and if your state offers this, it's important to take full advantage of this holiday. Here are some tips to help:

• FIND OUT THE DEALS - Take advantage of savings opportunities linked by local retailers to the upcoming Tax Free Holiday weekends. Don't worry, there will be lots of ads in your local paper. Some stores like Sears even offer further discounts like $10 off a $50 apparel purchase just for showing your PTA or PTO card or student id. Be sure you go shopping prepared with these forms of identification to get your discounts.

• FIND OUT LIMITATIONS - Each state has its limitations, so ask the cashier at your retailer what the rules are for your state. For example, some states will only allow up to $100 on any single item of clothing and only up to $750 on a computer. So know the rules by googling your state, "tax free holiday" and "2009."

• FIND LAYAWAY - Some stores such as K-mart have reinstituted layaway in direct response to the recession. This option varies from family to family but our family tries to minimize credit card debt and layaway is another option that helps avoid consumer debt.

Upcoming Tax Free Holiday Dates

STATE

Vermont 8/22
Georgia 7/30 to 8/2
Mississippi 7/31 to 8/1
D C 8/1 to 8/9
Alabama 8/7 to 8/9
Iowa 8/7 to 8/8
Louisiana 8/7 to 8/8
Missouri 8/7 to 8/9
New Mexico 8/7 to 8/9
North Carolina 8/7 to 8/9
Oklahoma 8/7 to 8/9
South Carolina 8/7 to 8/9
Tennessee 8/7 to 8/9
Virginia 8/7 to 8/9

Happy Savings!

Ellie Kay

America's Family Financial Expert (R)

http://www.elliekay.com/