photo credit: Ange Soleil ( a.k.a Tweng )

Headlines seem to always highlight how unprepared we are for retirement, making even the recent college graduate feel like he won’t save enough to retire before 90. The good news is that you, everyone, can save enough to retire, even on a low income.

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Americans are very adaptable, and as times get tougher, frugality has gone mainstream. Instead of summer bar crawls, house parties are in style, and lavish evenings out are being replaced with gourmet potlucks. Indeed, being frugal is popular, and Americans are testing their cool factor.

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A surprising number of American families do not invest in 529 college savings plans, even though their deposits are tax-deductable and their income is tax-free. While everyone seems to have their own reasons to not use these funds, the experts are clear on this point: whether your child is just-born or already talking about college, a 529 college fund is an ideal way to fund his education.
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photo credit: Paul Worthington

August is just around the corner, and that means back-to-school shopping. While this may be a fun activity for kids, getting them excited for the coming school year, parents feel the economic pressure mounting. In a sluggish economy, retailers know that they need a hook to ensnare customers, so there are plenty of back-to-school bargains to be had.

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We all want our children to be financially responsible and independent when they grow up, but many of us don’t know how to prepare them for such a task. School does little to teach money management, and children’s programming is also woefully deficient in this area, so it really is up to you. Not to worry though, follow these steps to help your kids learn the value of a dollar:

• Be a good example: You will be your child’s only ongoing example of money management, so start by being financially responsible. Save your receipts and balance your checkbook, and invite you child to “help” you. Don’t hesitate to explain what you’re doing, either.
• Start early: A child’s formative years really are the best time to teach, so help promote good saving and spending habits when they’re young. For example, encourage them to save up for special purchases, and help them hunt down the best deals once they’ve saved the dough.
• Be honest: If you’re child asks you questions about money, don’t respond with the typical, unhelpful, frustrated-parent “money doesn’t grow on trees” response. Instead, use these moments to teach where money really does come from, and help you children understand basic finances.
• Make allowances: Experts debate whether allowances for daily chores help or hurt personal finance lessons. A good compromise is to have set amounts for chores outside daily duties — like extra dish washing or car washing — which allow your child to make his own fortune.
• Make it interesting: Do anything you can do to interest your child in saving. Decorate a piggy bank, create a monthly savings-counting ritual, or even offer to match each dollar spent with $0.50-$1 of your own.

For more tips, see how to teach your children the value of money.

photo credit: j / f / photos

If you are interested in investing in some stocks outside the United States, then there is an easy way for Americans to do so, using the ADR system. ADR - American Depositary Receipts - are a way of investing in a company abroad without having to actually send money out of the country, as such.

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photo credit: Dawn Ashley

Anxiety over the current poor economic situation is felt by different people in different ways, but the one thing in common is that nearly all Americans are feeling some kind of stress, judging by a recent survey. The results included some of the following statistics, none of which are especially positive:

• Many homeowners are feeling concerned about the effect of the current economic situation on their homes and loans. 25% are worried that the bank might foreclose on them and 45% are worried that a rise in property tax rates could mean they are unable to afford to stay in their home.
• Many people are worried about an inability to save money at the moment. 58% of people surveyed had nothing saved for retirement and can’t afford to save anything at the moment.
• Credit card problems are rife. 63% of people consider they have too much credit card debt.
• Inflation has many people scared. Almost 75% of people think that their salaries aren’t keeping up with general living costs and half of the people surveyed thought they won’t be able to keep up with their medical care costs.
• Many people are worried about the security of their employment: 38% of people are concerned that they could be laid off from their jobs.

photo credit: Christopher Dick

If you’ve started working for an employer like a non-profit organization, school, church or hospital, you might be eligible to use a 403(b) plan for your retirement savings. Many people are still in the dark as to what a 403(b) plan entails, but the main similarities and differences to a 401(k) are not so complicated.

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A recent Yahoo Finance report looked at a big bunch of research studies that examined various reasons why some people earn a higher salary than others. Some of the results were very surprising, and if the statistics are true, some of us just can’t help but earn less than others - and vice versa. Of course, statistics can often be manipulated to make the survey results more interesting, but perhaps there’s some truth in the matter? Have a look at this list to see whether or not you have a chance of earning more in the future.

• Taller people earn more than shorter people.
• Left handed people get paid more than right handed people - and college graduates who use their left hand earn around twenty per cent more than right handed college graduates
• People who drink alcohol have a higher salary than those who don’t.
• If you’re a man, and married, you make more money than a single man.
• Gay women who live together earn 10% more than woman living in a heterosexual marriage.
• Women tend to choose majors at college that end up paying them a lower salary - at least this is one point that we can actually change!

photo credit: swanksalot

Some finance people are calling the current state of the US economy a time of stagflation: but what is it, and how can we best deal with our finances during this kind of period? Some recent CNN Money tips might help you to deal with economic difficulties and your investments in these times. Being informed and staying prepared is, of course, always half the battle.

1. Understand stagflation: The economy is slowing down, but there is also high inflation - that’s what the experts call stagflation. It’s particularly nasty because unemployment problems could arise yet prices are increasing, so lots of people find themselves in trouble.
2. Stay in the stock market: Don’t be tempted to pull out your share investments during this time, even if their value is falling. You’re usually better off holding on to them and waiting for the market to rise again.
3. Invest in TIPS: Treasury Investment Protected Securities rise according to the rate of inflation so these can be a secure investment in times of stagflation.
4. Be careful with investments in general: There are not so many good ways to invest your hard-earned cash during these times, so make sure you research investment oppportunities carefully before making a decision.