Budgeting can be fun? Actually, in the current economy, making a budget requires a lot of creativity and planning, which can be made into a really fun adventure for the whole family. Some fun budgeting ideas include creating a household competition to see who can recycle the most, use the least amount of resources or save the most money. Such activities would see kids clipping coupons, rinsing cans and bottles for the recycle bin and even using timers when brushing their teeth or taking a shower. The winner could get a special treat or the chance to pick out what the family will eat for dinner. (more…)

If you haven’t been watching headlines or nightly news broadcasts you may be unaware of the fact that the average house price in 2009 is expected to decline. While this is not necessarily the case for every real estate market in the country, on the whole, house and property values are expected to continue dropping at unprecedented rates. (more…)

photo credit: Here in Van Nuys

A recent study based on unpublished Internal Revenue Service (IRS) statists shows that the rich ($200,000+ annual income) cheat more on their taxes than any other income group. How do they do it? Simple: they understate their adjusted gross incomes by an average 21 percent, 13 percent more than those with incomes between $50,000 and $100,000 annually.

The study, which has not yet been officially endorsed by the IRS, was written by Joel Slemrod, an economy professor at the University of Michigan, and Andrew Johns, an IRS economist. The study reviewed 45,000 individual 2001 tax returns, and was the first such IRS study since 1988.

The study also found that the rich cheat more because a higher percentage of their income comes from sources easier to hide. Among these, self-employment, rental income, S corporations and capital gains. In fact, the IRS estimated that individuals underreported incomes by a whopping 43 percent in 2001, which adds up to a significant loss in federal tax income.

Of course, this doesn’t mean that the rich get away with cheating. The IRS has collected billions in back taxes over the years, and the biggest offenders are often slapped with extra fines and even jail time. If you ask me, that’s a hefty risk to run.

photo credit: derek olson

America’s children have always followed the trends — when my parents were young, they wanted record players in their room and when I was a little girl, a phone and CD player in my room were all I needed. Today, kids want cell phones, and not the cheap kind either, because cell phones are the tween and teen status symbol of the 21st century.

Of course, cell phone service is expensive, and it’s parents who foot the bill for this techie obsession. And in some cases, costs are out of control. Take Ellen, for example: in just two months, her teen daughter racked up $1,100 in cell phone charges, including text messaging, music and Internet access.

For some parents, these options are surprising and financially threatening. Most cell phone companies encourage line owners to open all options, hoping that their customers will inadvertently spend much more than they intended. If your kid’s got a phone, that business tactic is clearly working in the company’s favor. And even when you think you’re covered — lots of minutes and unlimited text messaging — you’re not. There are too many extras (cell phone horoscopes, anyone?) that cost dollars, adding up to unexpected phone bills.

In the end, parents need to draw the line at how cool they can afford their kids to be. Remember, you shouldn’t have to take a second job just to pay for your children’s right to text, so stand up for yourself, make rules, and require your kids to stick to them.

photo credit: JLStricklin

The economic slump has hit us all, and singles may feel the pinch more than others. It’s common for serious couples, married folks and families to stay in and watch a movie with microwave popcorn, but singles are supposed to tear up the town, frequent upscale bars and take their dates to on expensive outings. Now though, singles are looking for creative, inexpensive date ideas, hoping to stretch their dollars farther.

If you’re in this boat, not to worry; there are plenty of options. If you live in the city, museums are a cultured and inexpensive way to spend the afternoon, allowing you to save your bucks for a nicer dinner than you might otherwise have. And don’t overlook the fun of a casual date at a local bar or restaurant/bar - it may not have “classy” written all over it, but plenty of men and women would have just as much fun throwing darts and shelling peanuts as they would downing expensive wine at a stuffy restaurant. In fact, forget the formal dinner date and branch out into other formats - afternoon hikes, visits to the park or inexpensive cultural events. After all, the key to a good date is not how much you spend, but how much fun you have.

Unlike many countries, America’s higher education system almost requires students to go into debt… deep debt. And today, more than any time in the past, students are feeling the burden of huge student loans - fewer jobs and lower pay are tough to handle when student loan payments don’t get any smaller. In fact, recent studies show that two to four percent of student loan owners have left the country, and many see that as the only option to escape their debts.

Students are often first time borrowers, and may not know what they’re getting into. It’s easy to miscalculate or simply wishfully think it into a smaller number, but when graduation day is over, huge monthly payments may be staring you in the face. Right now, there is about $60 billion in defaulted student loan debt, and searching for debtors abroad is an expensive process that cuts into loan company’s profits.

If you or someone you know is having trouble paying off a student loan, there are several steps to take. Filing for economic hardship deferment or forbearance can either defer or eliminate your monthly payments. Under other circumstances, you may be able to talk with your company, and extend your loan term; though you’ll pay more in the long run, you’ll at least be able to meet your monthly minimums.

We all love the idea of stretching our dollar, but sometimes the steps we have to take can be daunting: biking to work? Only possible on casual Friday! Eat more at home? I already do that, and don’t want to feel guilty when I do go out. What most of us need are tips on almost effortless ways to trim the monthly budget, whether by a dollar or ten.

• Reuse food containers & ziploc bags: Lots of food already comes in great, reusable containers: margarine, ice cream, cream cheese, even milk. Instead of tossing your containers (or even once-used zip-up freezer bags), wash them out and run them through the dishwasher for sanitization. They’re a free, environmentally-friendly way to use something you already have.
• Double your dinner: This technique will work for any dinner meal, but is particularly suited to bulk meals, like soup and spaghetti. Make extra — preferably double — what you think your family will eat, and then send everyone off to work or school the next day with leftovers. This will almost always be more cost effective than pricey sandwich meats, and it super convenient.
• Utilized under-used kitchen appliances: Believe it or not, all those appliances you got from your wedding registry are very handy: they save electricity! Your stove uses lots of energy (think of how big it is to heat up), so try cooking in your crockpot, rice cooker, or electric skillet.
• Make your own cleaner: You might be surprised at how efficient a bit of vinegar and baking soda can be!
• Hang your clothes out to dry: Okay, this obviously cannot work year-round, but if you wash on a sunny day, consider hanging your clothes out to dry in the sun - it’ll help you save energy, and your clothes will smell wonderful.

Okay, so you want to save gas, but can’t afford (or don’t want) a hybrid or electric car. If you live an urban or suburban area, you might have another solution at your fingertips: commute via scooter. Scooters are the gas gods of the transportation world - averaging 60-80 miles per gallon, they give you a huge bang for your buck. In fact, some scooters only cost $5 to fill up, and that’s taking into consideration today’s gas prices!

If you choose to scooter up, you must take safety precautions. First and foremost, buy a helmet. Get familiar with your scooter and with your neighborhood drivers. Keep in mind that you’ll be much harder to see on a scooter, so practice (very) defensive driving at all times. Try to travel on roads with slower speed limits, as well - this way, you won’t put yourself in the normal frenzy of high-speed commuters.

Also remember that you may need a special license to drive your scooter, so check with your state DMV for more details. Finally, get insurance — which can be as inexpensive as $100/year — to protect yourself and other drivers. Always be responsible and safe on the road.

MSN Money’s Liz Pulliam Weston doesn’t think that we’re headed into the next Great Depression, but for those who do, she offers some great tips. In fact, many of Pulliam Weston’s tips just make good sense, and help us all prepare to pinch our pennies until they’re wrung dry.

• Live like you’re unemployed: If you had just lost your job, what changes would you make? How would you live? This “austerity budget” is a great way to manage your finances, even while you’re raking in the dough. Spend money on essentials, be frugal, and shop smart. For example, if you wouldn’t keep your cable subscription during a financial crisis, shut it off now.
• Pay off your debt: I know, you’re sick of hearing about paying off your debt. But it really is a priority - while you still have a steady, monthly inflow, you need to pay off debt and eliminate those rapidly-growing interest balances.
• Keep your credit card accounts open: It may seem counter-intuitive, but keep your accounts open. This will help your credit score and give you an emergency exit in case of extreme circumstances.
• Keep your job: It seems obvious, but this means that you should do every, single thing possible to stay employed. Work harder, produce more, do whatever it takes to show the boss that you are worth every penny of your salary.

Even the wealthy have been hard hit by the country’s economic problems — Bill Gates alone has lost more than $1.5 billion — and their luxurious homes are the first to hit the chopping block. CNN Money reports on seven mega mansions, ranging in price from $1.5 million to $15 million, that Sotheby’s auction house plans to auction off on March 28, 2009.

The auction’s most affordable home, which comes in at a mostly-unaffordable $1.495 million, is located in Fort Lauderdale. The 5 bedroom, 3.5 bathroom home is billed as a cottage, and sits adjacent to fabulous golf courses and country club offerings. Marble floors, a golf course view, and a beautiful 30′ by 15′ pool round out the home’s assets.

Sotheby’s most expensive home, also located in Fort Lauderdale, was originally priced at $14.999 million. The 9 bedroom, 9 full bath and 4 half bath home will sell for much less (if at all), and its proud new owners will enjoy an infinity pool, spectacular landscaping, a home theatre, massage room, and even an indoor pool. No word on the mansion’s starting bid price.

Clearly, even the country’s wealthy home owners have seen their investments dive. If you’re one of the lucky few who still a bank account full of disposable income, check out CNN Money’s auction rundown… great deals are sure to be had.