Probably not. Dealers usually don't make auto loans themselves. Instead, they work with other lenders. In fact, our credit union works with several auto dealers. Your best bet is actually to come into the credit union before you begin shopping for a car and apply for the loan. Once approved, you'll be in a better position to negotiate with the dealer.

If you're looking at different loan options, be sure to read the fine print so that you understand exactly what you're getting. What happens if you miss a payment? It's not something you plan to do, but circumstances beyond your control may make that happen. Also, what is the APR? In order to compare apples to apples, don't look at the payment, but ask specifically for the APR.

Once you've checked it out you'll know if what you see is truly what you'll get. The credit union may have a better deal simply because credit unions are not for profit, and most other lenders are for nothing but profits.

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Good question, and you are to be commended for looking for the positive while many people can't see past the 'help! What's next for this country?' message that we're all getting from the media.

Right now, if you're still employed (as well over 90% of the population is), you will find excellent opportunities in the current market. Not that you want to capitalize on the retail sector's losses, but a store going out of business is going to offer deep discounts. Even stores that are staying in business are competing for less consumer dollars. Because of that, so many consumer goods, including luxury goods, are heavily discounted. Vacations can be discounted too, so shop around before making any decisions.

It's a difficult time out there and you don't want to spend more than you have to spend. However, what you do need can be found at lower prices if you do a little homework before buying.

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At this age, your children are more affected by peer pressure than by anything mom or dad says or does. An interest in designer clothing may be a true interest in the fashion world. Most likely, however, your child's interest will be fleeting and only last for a few short years, if that long.

What you do now depends on your parenting style. Personally, my kids know that if they want a designer sweater, mom will pay for it... up to what I consider 'normal' for a sweater. So they get $15 from me, and pay the other $45 themselves. That's A LOT of babysitting.

They may tell you it's not "fair" because "everyone else" is getting things from their parents.

Tough.

If you feel strongly that a label is not worth paying for, communicate that to your children. Spending mom and dad's money is easy. When it's their own money they'll have to spend, they may see it very, very differently.

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Should you sell out? Probably not. Unless you need the cash or have other investment plans you think will do better, there's no need to panic. Yes, the market is in turmoil, but investing in the stock market is a long-term proposition. Some days are better than others and some years are better than others. Selling now might take you out of the running for a potentially excellent comeback. So no, don't walk away from the stock market completely.

If you're looking for good buys, there are plenty of blue chip stocks that are well-priced now. Having said that, it's always a good idea to diversify. Instead of keeping all your eggs in the stock market basket, spread them between stocks, bonds, money market accounts, savings certificates and other more conservative investments.

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For tax purposes, investments fall into two categories:

(1) Investments (stocks, bonds, real estate, and anything else) in retirement accounts are tax-deferred (IRAs, for example). That means you do not owe taxes on those investments' earnings until you start making withdrawals from those accounts, usually after you retire.

(2) Income on investments outside a tax-deferred account-we'll call that a taxable account -is taxable when you receive it.

Investment income also falls into two categories:

(1) Ordinary income includes dividends from stock, rent from real estate, and interest on bonds or savings accounts; for tax purposes, it's treated more or less like a paycheck.

(2) Capital gains (or capital losses) include profits (or losses) from the sale of something that you bought at a different price. If you bought stock in Acme at $20/share and then sell it for $40/share, you have a capital gain of $20/share. If you sell it for $15/share, you have a capital loss of $5/share. If you have not sold the investment, any change in its value has no tax significance. Sorry.

For investments in taxable accounts, if you itemize your deductions, a capital loss is deductible in certain ways. It's easiest to explain with a simplified example:

If you have $40,000 in capital gains and $50,000 in capital losses for the year, then when you calculate your taxes, you can take a $40,000 deduction against your capital gains. You still have $10,000 in capital losses left over, and you can deduct $3,000 of that against your ordinary income. You still have $7,000 in capital losses that you can carry over to the next tax year -- and possibly to years after that -- until you have deducted all your losses from your income in calculating the taxes you owe.

In a tax-deferred retirement account, taking a deduction for a capital loss is much trickier and probably impossible. Some contributions to some tax-deferred retirement accounts for example, IRAs, 401(k)s or 403(b)s are tax deductible. If the tax-deferred account in which you suffered the capital loss was completely funded with tax-deductible contributions, you can't deduct any capital losses, ever. If you could, you would be getting two tax deductions on the same money. The IRS just isn't going to be that generous.

You can deduct losses from an IRA that was funded with after-tax dollars, but you would have to liquidate that IRA and probably all of your IRAs the tax rules on not completely clear on this issue. For that to be worthwhile, the loss would have to be so large that it wipes out all your contributions and all the earnings in the account(s).

Deducting losses from a Roth IRA is more of a possibility, since contributions to a Roth IRA are never tax-deductible. Given the magnitude of recent stock losses, if you recently opened a Roth IRA, you may well have a deductible loss.

Note: This column is NOT a tax advisor; it only suggests topics that you can discuss with your actual tax advisor.

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Think about who you are, what you are looking for, and what you have to offer. Make notes about your past jobs, club activities, community service, and anytime that anyone has ever told you, "Good job!"

Next, call people who have jobs that are similar to what you are looking for. Ask how they got there. They'll be flattered, and you might get some useful information. You can also hit the library and/or the Internet to learn what kind of resumes employers like these days.

Start posting your resume in the hundreds of general and specialized online job boards that are searched by employers and recruiters. Get yourself a profile on LinkedIn.com—it’s free. Also check out the "how to get the most out of LinkedIn" articles for some good ideas. Use the network to look for people that you've lost touch with. Join a LinkedIn industry group and join some of the discussions if you have something to add.

And don't forget to follow up—on everything. Be careful about spending money on job search advice or "work at home" projects but do feel free to stretch your comfort zone a little in all directions. Show this to your husband, and good luck to both of you! Though it is a tough market, people are still getting jobs. With a little persistence, you and/or your husband may soon be one of them.

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Think about who you are, what you are looking for, and what you have to offer. Make notes about your past jobs, club activities, community service, and anytime that anyone has ever told you, "Good job!"

Next, call people who have jobs that are similar to what you are looking for. Ask how they got there. They'll be flattered, and you might get some useful information. You can also hit the library and/or the Internet to learn what kind of resumes employers like these days.

Start posting your resume in the hundreds of general and specialized online job boards that are searched by employers and recruiters. Get yourself a profile on LinkedIn.com—it’s free. Also check out the "how to get the most out of LinkedIn" articles for some good ideas. Use the network to look for people that you've lost touch with. Join a LinkedIn industry group and join some of the discussions if you have something to add.

And don't forget to follow up—on everything. Be careful about spending money on job search advice or "work at home" projects but do feel free to stretch your comfort zone a little in all directions. Show this to your husband, and good luck to both of you! Though it is a tough market, people are still getting jobs. With a little persistence, you and/or your husband may soon be one of them.

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The first thing I'm going to tell you is to check with your tax advisor (CPA, Accountant, or attorney) because only a tax advisor is certified to answer your question. However, theoretically speaking (and again, verify this with your tax advisor) the interest paid on the mortgage of the house you live in (your primary residence), is tax deductible.

Home equity loans are usually tax deductible too. However, make sure your loan is not one of the '110% financing' schemes that don't exist anymore. A home loan is only tax deductible up to the value of your home when you purchased it.

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Bonds are a great gift idea. It's true that the child you gift it to will have the option of cashing in before the bond reaches maturity, but once they understand that the longer they wait, the more money they'll have, most people will wait. It's also a whole lot less enticing to spend a bond than it is a $100 bill.

Having said that, consider carefully what you're trying to teach the child. Assuming you view the gift as an educational one, you may be better off opening a savings account at the credit union for him or her. A bond is a gift the recipient will enjoy later; membership at a credit union is a gift the recipient will enjoy now AND later.

Credit union membership teaches young people about credit unions and gives them the opportunity to try their own budgeting and other financial management techniques.

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While nothing is one hundred percent secure, it's a good bet that your credit union is safer than anything else today. Banks are insured by the FDIC, but with several large banks tottering on the brink, many people are beginning to feel more secure with their credit unions.

Your deposits at the credit union are insured, as they are with banks, for up to $100,000. However, it isn't the FDIC that insures your money, but the NCUA; which is also a government agency. Is one more secure than the other? Technically, no. But with so much happening, I'd feel more comfortable with the NCUA, who hasn't had to shell out nearly as much as the FDIC. Thus, your best bet may be your credit union.

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Who do you trust more: your credit union or an investment broker who works on sales commission? In these bleak times that have consumers resting on unsteady financial ground, many are turning their attention to credit unions. In fact, credit unions have recently been featured in major publications like "Fast Company" and "The Wall Street Journal" among others. There are stable and wise investment options at many credit unions and some even offer investment services.

Nothing is one hundred percent risk-free, but keep in mind that you can minimize your risk though careful planning and research. The higher the risk, the higher the potential rewards. Look into mutual funds and money market accounts, both good choices for the novice investor, and feel free to stop in at the credit union for a personal look at your options.

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It is never too early to start saving for your son's college education. If you save $20 a week from the time your son was born until he graduates from high school, you will save $27,000 at a 4 percent interest rate. If the savings is increased to $50 a week, you will save $68,000 over the same period of time.

If you are able to save $2,000 annually starting from the age of one, you will have $80,893 by the time your son is 18 (with an 8 percent investment return annually). Even if you don't start saving until your child is 7, you will have saved $40,991. Every dollar saved early will only decrease your son's later dependence on loans, grants, or scholarships to pay for his education. While these options are used regularly by college students, they are not necessarily the best choices to pay for college.

For example, the interest on loans will only increase the overall cost of the loan and lengthen the repayment timeframe. While grants and scholarships may sound nice, you cannot expect them to be a guaranteed part of your son's college financial planning.

Options such as the Coverdell Education Savings Account (CESA), 529 plans, or Upromise and LittleGrad college savings rebate programs simplify the process of saving for college. Talk with a financial planner about what type of college savings plan fits best with your family's current finances and future plans.

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It is much easier to get a new auto loan than a used auto loan. A lender looks at the value of the auto purchase because that vehicle is held as collateral. An older auto with less value equals less collateral for the financial institution that gives the loan. When a financial institution loans money for a new auto, they know they have a new and valuable vehicle if the loan goes into default due to non-payment from the borrower.

Additionally, if a loan is given for a used car, the financial institution or dealership may charge higher interest rates than they would for a new auto loan. As a result, the higher rate may make the vehicle cost more in the long run because of costs related to the interest. A new auto, however, depreciates in value once mileage is put onto the vehicle. Usually the largest depreciation happens in the first two years of owning it.

Whether you decide to go with a new or used auto loan, don't assume the dealer will have the best interest rate. Sometimes, dealership rates are even higher than rates offered by financial institutions or online options.

Become an empowered buyer who knows your financial plans and options before walking through the dealer's doors. Research and compare interest rates to find the best loan rate. Look online. Call different dealers and financial institutions. By having your financing plans in place before you go to the dealership, you will have more bargaining power to negotiate the best possible interest rate.

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The first thing you should do is congratulate yourselves, because while most people know they should have an emergency account, few actually take the steps to make it happen. So here's a pat on the back for the two of you.

To answer your question, your emergency fund, and the size of it, is going to be dependant upon your lifestyle – and your budget should be used to help you determine the level you are comfortable with.

Standard advice from many financial professionals for the size of an emergency fund is enough to cover three to six months of expenses. Again, you budget will help you determine this figure. However, if you don't have a budget, consider the following: your monthly minimum payments on bills and outstanding debts such as auto loans and mortgages, routine monthly expenses, expenses that might be incurred while seeking a new job, and other routine mandatory expenses such as tuition or taxes.

You might also want to keep a separate emergency fund for unexpected expenses, so you have something to fall back on without going into debt, even if there is no crises involved. Come into the credit union to discuss the options available for saving. While an emergency account should be kept liquid, it shouldn't be so liquid that it's easy to dip in to for non-emergency purposes.

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An education consolidation loan is a loan that repays your current student loans and replaces your multiple payments with a new, single student loan with one payment and one due date. You are basically refinancing your student loans.

There are two types of education consolidation loans:

Private consolidation loans typically have higher interest rates than Federal consolidation loans, so it may not be in your best interest to include Federal loans in a private consolidation loan.

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Sure. You can do that . . . if you want to pay even more and continually feel like you are always behind in your debts. The temptation of that little plastic card sometimes makes us forget that we'll still have to pay for what we purchase. On the flip side, if you were a rigorous saver and emergencies were less frequent, you'd always have money to pay cash. But as we know, the world is not perfect. So how about doing both?

Remember that every time you have income, it's an opportunity to save. Pick a percent, say 5-10 percent, and make a rule that you will always put that portion into your savings where it can earn dividends and be available to pay off your credit card balance as necessary. That way, you won't have to pay interest on your card balance when you have to use it. Plus, if you card has a rewards program tied to it, you'll still earn points that can be used for rewards later.

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Ooohh . . . this has got to be the most commonly asked question when people begin to consider the idea of 'pay yourself first'. If you're hardly making it through the month, how will you possibly survive on 90% of your income?

But look at it this way-how much of your money is really YOURS? You pay the supermarket, the auto dealer, the gasoline station, and the cleaners. Shouldn't some of your hard-earned money remain your own?

While taking 10% of your income and stashing it away to save (and possibly invest) sounds good, there doesn't seem to be anything left to put away at the end of the month. Interestingly, most people find that when their income goes up, so do their expenses. Is it possible, then, that by skimming 10% off the top, so you're living off 90% of your income, your expenses will go down?

I can't really answer your question without knowing your exact income and expenses, but it's been the experience of most people who try this, that once the money is put away, they somehow manage without it and their nest egg grows.

So give it a shot. Put aside a little bit every month. If 10% seems like too much, try it anyway. If you find you really can't manage without it, go down to a more manageable number, if for no reason other than to establish the habit. The key, though, is to make a point of taking 10% (or less, if you feel you really can't spare that much) off the top. Hence the expression; pay yourself FIRST.

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This is a common issue. Difficult as it is to face, children learn the lessons we don't want them to learn better than they learn the ones we try so hard to instill. They learn by example. If you're saving, and are open about why you're saving, what you're saving for, and how important it is, she'll learn to save. If you, as a parent, treat your own income as completely disposable, using everything that isn't earmarked for bills immediately, you can't expect your daughter to act differently.

Having said that, there's a lot you can do to help your daughter develop good financial habits. Have an open conversation about the family finances, and discuss what you're doing to save, and how much you're putting away each month. If you're not yet saving on a consistent basis, get started immediately. Talk about the difference between where you are now and where you want to be, and how saving money will get you there. Talk about what it is you're saving for. Set long term and short term goals. Pick something every member of the family will enjoy and start saving for it. Discuss how much closer you are to your goals every week.

Once the groundwork has been laid, offer to match or at least supplement your daughter's savings. With some understanding of savings, positive role models and a little motivation, your daughter can develop an important habit early in life.

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Assuming there is enough equity in your home, a home equity loan is your best bet.

A refinance might have made sense when rates were low, but there's a good chance that the interest rate on your current mortgage is lower than what you'd get if you refinanced now. Add to that the fact that you've already made payments on your current loan and may even be several years into a 30-year loan, and you'll see that starting from payment number one is not a smart option. More of your payment is applied to principle as the age of your loan increases. Given that fact, you may be better off keeping your current loan even if your interest rate is somewhat higher than rates are today. Unless, of course, you have an adjustable rate mortgage (ARM). If that is the situation, you might want to refinance and get a fixed rate.

Your other option, credit cards, is certainly the easiest to come by, but remember that not only will your rates be higher, but you will not have the tax deduction that comes with a home loan. Check with your tax advisor, but a home equity loan is probably the smartest option.

Because each situation is different, come into the credit union and meet with a loan officer for a personal consultation. Happy building!

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The decision to lease or buy your car really depends upon your individual circumstances. There are pros and cons to both.

If you lease a car, you have the advantage of constantly owning a new car that is under warranty. In the short term, you will have lower monthly payments, since in leasing a car you pay for your usage of a car and not the car's full value. You will also have a smaller or no down payment.

However leasing will always be more expensive than long term buying since the monthly payments never stop. It's important to know that most leases have built in GAP insurance coverage, while most car purchases do not. GAP insurance pays the difference between what you owe on your loan or lease, and what your vehicle is actually worth if your vehicle is stolen or destroyed.

Most lease plans have a limit on the amount of miles you can drive. If you own a business, leasing a car will be an opportunity for tax deductions. Also, when leasing, be very careful to understand all the clauses in the contract, such as additional wear and tear charges. If you desire to drive a more expensive car, leasing might be your only option.

If you buy a car, you will have higher monthly payments and a big down payment since you will be paying for the cost of the actual car. However, in the future you will own the car - and have no payments to make.

If you drive the car as long as the cost of maintenance does not exceed the cost of replacing it, you will end up saving money. Since a car declines in value from the moment it rolls away from the dealer, a car is not a good investment, but most people don't buy vehicles as investments. In fact, you may actually end up paying more in interest than the car will be worth by the time you own it.

You will also have to figure the cost of unexpected repairs once the warranty on the car expires. You can drive an unlimited number of miles, but remember that the value of the car goes down in direct proportion to the miles you clock up.

Consider all the factors and decide what's more important to you in your particular situation.

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Paying off your credit cards as quickly as possible is a great goal, and well worth the effort you will invest. As you probably realize, it's more important to measure your bills by interest rate than by balance.

One of the best methods to use is what is called the Snowball. Using the snowball, you first pay the minimum payment on each card and then take the remaining funds and add them toward the payment on the card with the highest annual percentage rate. When that card is paid off, you add onto the payment of the card with the next highest interest rate and so on.

Though sound financial planning tells you to pay off the credit card with the highest interest rate first, some people want the feeling of accomplishment that comes from paying off an entire credit card. If you'll only feel tangible progress by paying off your lower balances first, do it; but remember that the most important thing is to pay off those higher interest cards that might take longer.

Once you've started, stick with it. When you see you're making progress, don't slack off.

Establish an affordable monthly payment plan, and when one credit card is paid off, transfer those payments to the next one. An extra $50 per month on your payment can mean the difference between paying off a $3,000 debt in three years or eight years.

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Congratulations, you have avoided a big pitfall that many people fall into unexpectedly . . . impulse decisions. Buying a home is an exciting experience, but it also impacts several other areas of your life and there are often additional expenses you may not have thought about.

For instance, will you need new furniture? What about fresh paint on the walls of the rooms? Will you need to buy new towels to match the bathroom? Are the appliances in good condition... I'm sure you get the idea.

While a home truly is an investment, there are many things you must consider with regards to retaining the value, such as the neighborhood where it is located, the age of the home and how well you can efficiently maintain it.

Ultimately, the decision it yours, and the credit union feels that you can handle it, or they would not have approved you. But remember, just because you are approved for a $175,000 house, it doesn't mean you have to spend that much. Shop around and you may find a house that is the right size for $110,000 instead. Then, you'll likely spend less in heating and cooling the house, can spend more to upgrade it or even work your budget to place some money into a college savings plan each month.


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Congratulations on reaching the point where you KNOW something has to change! This is truly something to be proud of. Many people realize their spending is out of control, but do nothing about it. Instead, they hope the problem will resolve itself. However, inheritances and lotteries aside, it never does.

As in every area of life, you need a solution that works for YOU. If you feel constrained by a budget, as many people do, there are other ways to get a handle on your money. But, before you write off budgeting as something that would cramp your style, give it some honest thought. What IS the problem with a budget? If the tracking and paperwork seem too overwhelming, and you would like a system that is easier to maintain, I can understand that. But, perhaps you do not like having to make decisions on what you will and will not be able to purchase because you do not have an infinite amount of money to work with. Time for a reality check. Any system will do the same thing because the fact is this: everyone has only a limited amount of money to spend, whether that limit is $10 or $10,000.

Having said that, here are three alternatives for getting your finances under control:

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