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Top 10 Things You Should Never Buy Used

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Stuff You Should Never Buy Used

By Maryalene LaPonsie

Buying used items is one of the top ways to consistently save money on everything you purchase. However, not every used item is a good value. Here are 10 things we think are better when bought new.

1. Cribs. Back in 2011, the government changed safety standards for baby cribs in response to infant deaths related to old designs. Whereas, drop-side cribs used to be common, they are now banned. Plus, the new rules require stronger supports and hardware.

The problem with buying a used crib is the chance you might end up with one of the millions that have been recalled. It may be easy to avoid drop-side cribs, but unless the seller can provide the original sales information, you may not know whether your purchase meets the new safety requirements.

Better safe than sorry, so we say skip the used crib and invest in a new, safer one.

2. Car seats. Car seats are another no-no when it comes to buying used. Again, safety is the reason.

A used car seat could have been in an accident or exposed to extreme elements, either of which could compromise the seat's durability. In addition, older seats may not be made to the latest safety standards.

You could save a few bucks and get a used seat or spend a little more and give your child the best protection possible. If you can't afford a new seat, contact your local social services agency or community wellness organization. They may have leads on programs offering free or low-cost car seats.

3. Helmets. A final safety item you want to buy new is a helmet. This could be a helmet for a bike or a helmet for a motorcycle. Here, the main concern with buying used is that the helmet could be compromised from a previous accident. Play it safe and purchase yours new.

4. Computers. A used computer is a giant question mark. You don't necessarily know how it's been used, and unless you're tech-savvy, you might not be able to see what programs are lurking on the hard drive. Laptops, in particular, are prone to all sorts of abuse, from being banged around in a bag to being dropped on the ground.

Now, there is one exception when it comes to buying used computers and laptops. We're talking about buying refurbished computers. These are either used or open-box items that have been inspected and cleared for resale. Buying refurbished items can be a safe way to get a bargain on used electronics. You can learn more in this article.

5. Digital cameras. Like laptops, a second-hand digital camera may not only be used, it could also be abused. It's hard to look at one and determine how well its previous owner cared for it. If you just need a basic point and click camera or video recorder, new models aren't all that expensive. Or you could just use your smartphone and skip the expense completely.

6. Shoes. If you're interested in having comfy feet and minimizing back pain, you might want to skip over the used shoe section at the thrift store. Shoes often conform to their first owner's feet, which can make them uncomfortable for you. What's more, worn shoes can literally be a pain to wear.

7. Makeup. I know, some of you are probably shocked to think that anyone would wear used makeup. And yet, you can find used mascara, lipstick and eye shadow at thrift stores, garage sales and on eBay. There's even a Reddit makeup exchange board for people to swap their barely used cosmetics.

Used makeup could be a completely harmless bargain, or it could contain scary bacteria or spread disease. We say it's not worth the risk, and you're better off buying your beauty products new.

8. Mattresses. Like shoes, mattresses tend to conform to the bodies of their users. In that case, buying used could mean you end up with a lumpy bed that leaves you tossing and turning all night long.

Even worse, a used mattress can harbor all sorts of nasty things like allergens, dust mites and bed bugs. In some cases, retailers may try to pass off used mattresses as new ones. The Federal Trade Commission has some tips to help you avoid inadvertently buying a used mattress that has been recovered.

9. Stuffed animals. Stuffed animals are another item that can contain dust mites and allergens. In addition, some animals may have safety issues, such as eyes that pop off and become a choking hazard. Buying used means you could end up with a toy that has been recalled or one that harbors unpleasantness that you may not want to bring into your house.

10. Underwear. The final item on our list makes the cut solely for the "eww factor." Some people might be concerned that used underwear may carry bacteria or germs, but I'm not convinced it's anything that can't be killed with a hot water wash and bleach.

The bigger question is why would you want to wear someone else's stretched out, used undies when so many stores will sell you a new pack for $10? All except the most destitute among us can certainly scrounge up that much money. Trust me, you're worth the luxury of spending $10 once a year on new underwear.
What else would you add to this list? Leave a comment below or head to our Facebook page to tell us what items you only buy new.

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Graduates, Here's How to Avoid Debt and Get Rich

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By Brian O'Connell

When Tom Meitner graduated from the University of Wisconsin-Milwaukee in 2008, he plunged aggressively into the working world -- but the social world too. Due to overactivity on the social side, he quickly found himself battling debt. He decided to do something about the problem.

"Actually, I wish I had put myself on a strict budget at the time just to minimize any further debt damage," says Meitner, the founder and editor of Cufflinked Magazine, a source for post-college graduate men. "If you don't tell each penny where to go, it'll disappear before you realize it. Too many people are racking up debt right out of college simply because they want to live a certain way before they are financially ready."

When Meitner got married in 2010, he and his wife got serious about their debt problems. "Together, we have paid off more that $150,000 in debt and interest since then by simply maintaining a strict budget, cutting out any extra debt and sacrificing some of the more expensive luxuries people our age indulge in, like going out, watching a lot of cable TV or taking vacations paid for with a credit card," he says. "Our motto now is, if you can't cash-flow it, you can't spend the money right now."

Other recent graduates agree, and some, like Meitner, have built a career out of better personal financial practices.

Helping Peers

Take Erin Millard, who graduated three years ago from St. Joseph's College and is now a brand and community manager at Wherewithal, a Charlotte, North Carolina, online personal finance advice provider for younger Americans. "We tell our community to start paying back your student loans as early as you can -- don't wait for the grace period to end," she says. "If your interest rates are higher -- in the 5 percent to 8 percent range -- paying early will make a big difference in the affordability of your payments."

Student loan borrowers can also make extra payments each month to pay loans back quicker, Millard says. "Conversely, if you're having trouble meeting minimum payments, don't wait to contact your lender. Speak with them at the first sign of trouble to see what alternative repayment options are available."

The best financial plans for Americans just starting out in their post-college years have similar building blocks. One element is credit -- specifically, the abundance of easy credit available to college graduates that can turn their financial lives upside down in just a few years, if it's abused.

"Don't get sucked into the credit game," advises Jo Webber, founder of Oink, a Los Angeles digital wallet companies geared toward younger financial consumers. "I didn't, but I saw many of my friends who did. They didn't realize that after being a student, you have to manage cash carefully -- and very suddenly. In that instance, you may find yourself without a job for a while, so don't spend money until you have earned it, and even then only if you have a safety net in place."

Starting Out on the Road Ahead

Webber offers new college graduates a road map of sorts for what is likely their first real stab at financial planning. Here's what she advises young professionals to do right out of college to get a better grip on their finances:
  • Get a student loan repayment plan. Many loans have grace periods to help students get on their feet before payments are due. Figure out which is best for you. As Millard says, though, the sooner you start paying the loan off, the better.
  • Set a starting salary goal. Search career websites to figure out how much people earn in your industry at your experience level. Most jobs have benefits, bonuses and even hidden commissions, depending on the company.
  • Plan to live off 70 percent of your income. The quicker you learn to budget your earnings, the sooner you will be able to pay off college debt and save for the future. These savings can help for a rainy day or for making more money with investments.
  • Plan to invest. Staying up to date with investments can help you get out of any tough financial situation faster. Talk to your parents or a financial advisor about how to start investing. Also, put money into a company 401(k) plan as soon as possible. Studies show that the earlier you start, the faster and heftier your account will grow until retirement. And yes, you should be thinking about retirement as early as your 20s.
  • Find a financial mentor. The best advice comes from someone that's already been in your shoes. Ask your parents, boss, mentor or a financial advisor what they did when they were your age to plan after college.

 

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How I Learned 3 Languages in 7 Months -- for Free

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duolingo.comDuolingo creators Luis von Ahn, left, and Severin Hacker
Last year we introduced you to Duolingo, the new(ish) online business that hopes to teach foreign languages to everyone in the world -- you included -- for free.

Since then, the Internet language learning site (available on PC and Mac, as well as on Android, iOS and Windows mobile devices) has attracted some 85 million users around the world, according to Head of Communications Gina Gotthilf. That's a big number, considering that according to S&P Capital IQ, Duolingo has only been in business since 2011. But the service's popularity isn't surprising.

In independent, third-party studies, 34 hours of online Duolingo study has been shown to deliver language proficiency equal to one semester of college-level language instruction -- which could cost upwards of $900 at published tuition rates .

Anecdotally, many users agree that completion of an entire language "tree" (course of study) on Duolingo delivers proficiency roughly equal to two full years of college study, but takes only months to complete. Gotthilf says completion of a tree is designed to bring a student to level "B1" on the Common European Framework of Reference for Languages scale -- which, according to Framework guidelines, provides "intermediate" fluency where a student can, for example, "deal with most situations likely to arise while traveling in an area where the language is spoken."

Today, Americans can gain similar fluency, and replace such expensive college study, in any of 10 different foreign languages currently offered by Duolingo, while speakers of 21 different foreign languages can learn English.

A Bit of History

Founded by Carnegie Mellon professor Luis von Ahn, the same man who invented the "reCAPTCHA" system that Internet sites use to confirm whether you're a human or a robot, Duolingo is a company on multiple missions. For one, by harnessing the "wisdom of the crowd," Duolingo wants to translate large portions of Wikipedia into other languages, disseminating that knowledge around the globe. Simultaneously, Duolingo aims to make English language learning accessible to folks who don't have a lot of money to spend on expensive language learning software packages.

In furtherance of both these missions, Duolingo is teaching people around the world to talk to each other.

It's noble work, to be sure. But how does Duolingo pay the bills?

The Economics of Online Education

Originally funded by venture capital, Duolingo set out to fund its ongoing operations itself, by selling translations (prepared by students in the course of practicing their skills) to companies such as CNN and BuzzFeed, which would pay to have content translated. Over the past few months, however, Duolingo has veered away from that course, seeking new ways to self-fund that wouldn't distract from its core missions.

Recent months have seen the company, for example, expand sales of branded merchandise from its online store. Duolingo's also exploring the idea of charging a small fee for language instruction for corporate and government clients. Most intriguingly, though, is one project that Duolingo has begun that promises to both make its services more useful to users and at the same time generate a modicum of revenue to fund its business.

Duolingo calls the new service "Test Center." In a nutshell, it's an online, remotely proctored test to certify a foreign student's English language proficiency (a prerequisite for enrolling at a U.S. college). To date, Gotthilf says about a dozen leading U.S. universities are considering accepting Test Center certification in lieu of the widely used Test of English as a Foreign Language exam to prove English language fluency.

Internationally, Princeton, New Jersey-based ETS charges foreign students as much as $250 to take the Toefl. Test-prep courses for the Toefl can add $2,000 or more to this tab. Duolingo, in contrast, charges just $20 for the test itself -- and provides all the test-prep a student wants, for free.

In this way, Duolingo is able to generate revenue while at the same time enhancing the practical value of its language courses to students. The company is in the process of setting up certification testing for U.S. students studying foreign languages as well, to help students "prove" language fluency and thus strengthen their resumes.

Does It Work?

Now, there's a natural suspicion that, when being charged $0 for a service, students might "get what they pay for." In Duolingo's case, however, that's not the case. You get a whole lot more than you (don't) pay for.

Taking on the role of guinea pig, I began using Duolingo to study Spanish back in August. Three months later, I'd finished the Spanish learning "tree," and then moved on to study German, and then Portuguese. Those last two took about two months each to complete.

And yes, Duolingo does work. While not conversationally fluent, I can attest that after completing any given learning tree, I was able to translate Wikipedia articles, offered as translation exercises by Duolingo, from Spanish, Portuguese or German, into English, pretty easily. And in line with anecdotal evidence, I agree that completion of any given tree is about equivalent to language proficiency gained through four semesters of college study.

And the fact that it took me just seven months, or barely the length of one semester to learn three languages on Duolingo, at zero cost? That's just guinda del pastel -- icing on the cake.

Motley Fool contributor Rich Smith currently speaks more than six languages -- English, Russian, Arabic, Spanish, Portuguese and German. Some of them, he even speaks well. He has no financial interest in any company named above.

 

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7 Types of 'Insurance' That Are a Waste of Money

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Protection That's a Waste of Money

By Hiram Reisner

Some types of insurance and financial protection aren't only smart, but legally required: Most states demand some sort of vehicle insurance. Now, with the Affordable Care Act, you can add health insurance to the required list. Other coverage just makes sense, such as renters insurance or flood coverage for people who live in low-lying areas.

But, there are many forms of protection -- sold in the name of insurance, monitoring and warranties -- that are at best questionable and prey on one of our most powerful natural instincts: fear.

Here are some that we believe require careful thought or should be avoided altogether:

1. Identity theft insurance. Identity theft insurance doesn't really prevent identity theft. The best way to protect yourself, according to tips from the National Association of Insurance Commissioners is to take measures to guard your Social Security number, shred financial documents and monitor your credit activity.

Identity theft insurance policies don't cover the money lost through an ID scam; most cover expenses incurred in restoring your identity and credit, and you can probably take most of these steps yourself, according to U.S. News & World Report.

The NAIC says insurance ranges from $25 to $60 a year; most policies have benefit limits ranging from $10,000 to $15,000; and many have deductibles requiring you to pay the first $100 to $500.

Closely related to ID theft insurance are credit monitoring services. But these, too, offer to perform functions already provided by your credit card company or watch transactions that you can monitor yourself.

You can get fraud alerts from your credit card company and free credit monitoring from some financial institutions and other organizations, according to the Privacy Rights Clearinghouse.

In addition, the Federal Trade Commission provides tips on how to protect yourself from becoming a victim, without the need for "insurance." So does the Identity Theft Resource Center.

2. Extended warranties. Whether you are buying a TV, a computer or a hedge trimmer, chances are when the salesman tallies up the bill you will be offered an extended warranty. In most cases, you don't need it.

According to Consumer Reports, stores keep 50 percent or more of what they charge for these contracts, which is a considerably larger profit margin than they make selling the product! The salesperson gets a hefty cut of every warranty sold.

Products seldom break during the two-to-three-year period after the manufacturer's warranty and service plan expires. And the repairs can cost less than the large amounts you are paying for the warranties, according to Consumer Reports.

3. Home warranties. Consumers frequently expect more than these plans deliver and end up frustrated, Money Talks News founder Stacy Johnson says. See: "Are Home Warranties Worth the Money?" for a breakdown of the pros and cons of home warranties -- the majority are cons.

If you decide to go with a warranty, you need to read the fine print to see what is really covered. Stacy tells of the time he had a home warranty that covered his refrigerator. "When it broke, I had to pay $50 for the repairman to come out," he says. "Then he said it was excluded because the condenser coils were dusty."

Furthermore, in my experience, the warranty dictates which repair company comes to your house: You don't have any say in that. If you have a trusted plumber, electrician or appliance service, this is another reason that a home warranty may not be for you.

4. Rental car insurance. You will be offered the insurance, but you might already be covered.

Call your insurance company before you rent to see whether your coverage includes rental cars. Most do, but it depends on your policy. Make sure you tell the insurer what type of vehicle you are going to rent, from my experience it can make a difference.

If you pay with a credit card, you also are probably covered as most cards give you rental-car insurance of some sort, according to the Insurance Information Institute.

In decades of business travel, working with many car insurers and car rentals, I have never found that I need additional insurance from the rental car company.

5. Air travel insurance. Travel insurance can minimize financial risks of traveling: accidents, illness, missed flights, canceled tours, lost baggage, theft, terrorism, travel-company bankruptcies, emergency evacuation, and getting your body home if you die, says travel expert Rick Steves.

Travel insurance can total between 4 and 8 percent of the cost of your trip, but can go as high as 12 percent, depending on the plan you choose, according to Travel Insurance Review, which also gives you a plan comparison.

Steves says your insurance needs depend on the specifics of your trip: whether it is prepaid, whether your ticket is refundable, where you're traveling (Norway or Nigeria?) and the financial health of your tour company and airline. It depends on your state of health and the value of your luggage. Finally, it depends on whether you already have coverage through your medical insurance, homeowners or renters insurance, and/or credit card.

6. Pet insurance. This is a tough one because most people consider pets part of the family and because veterinary bills are high. But this is a highly personal decision.

"There's no magic formula that will tell you if it's right for you and your pet," according to the American Veterinary Medical Association.

The AVMA suggests you talk to your veterinarian about the general health of your pet. The age of the animal is also a factor.

If you do opt for pet insurance, first take a look at the AVMA's guidelines for pet health insurance policies.

For more information see "4 Ways to Keep Your Pet Away From the Vet."

7. Cellphone insurance. "If your phone is super expensive and you're super likely to lose it, it could be worth it," Stacy says of cellphone insurance. However, very few people fall into this category.

If your problem is dropping your phone, you could instead invest about $10 to get a shatterproof cellphone screen cover -- essentially tempered glass that is very difficult to break.

So, unless you tend to drop your phone in water, you probably don't need insurance, according to iGrad.com. The average cost is around $5 a month and there is usually a fairly high deductible.

If you're still interested, check first to see whether your phone has a warranty and what it covers, and make the decision from there.

For more detail on this subject, see "Why Cellphone Insurance is not Worth the Cost," which illustrates that in some cases premiums and deductibles are greater than the cost of replacing the phone.

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How to Retire Before Your Spouse

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Getty ImagesIt can create tension if one member of a married couple retires before the other.
By David Ning

Money plays a big role in figuring out when you should retire. But most families would benefit from having thorough discussions about the transition into retirement that go beyond the financial realm. Retirement can be especially complicated for spouses who don't retire at the same time. Your role within the family will change for both the working and non-working spouse. Here are some potential complications you might face if you retire before your spouse.

Your significant other needs to be completely comfortable with you quitting work. I still remember the look on my wife's face years ago when I greeted her in my pajamas after her long day at work. Let's just say she didn't seem too pleased, even though I was working at home. It's difficult for one spouse to endure the grind with the thought that the other is relaxing all day. Make sure the two of you talk about how you feel about the new situation, and make an effort to resolve the kinks. Something as simple as getting dressed before your spouse gets home or preparing dinner can do a lot to ease tension.

You need to communicate with your spouse about your retirement plans. You and your partner may have different assumptions about what your role around the house is once you are no longer working from nine to five. The working spouse might expect the retired spouse to start doing more housework and errands. If you make assumptions instead of talking through who will do what, it can create conflicts later on. You may find that you would rather keep working than to take on extra household responsibilities. It's important to renegotiate household chores before leaving your job and to reach a compromise everyone is comfortable with.

You should be comfortable with the rhetoric of no longer earning income. Some people don't cope well with their spouse making money while they are retired. While you might feel comfortable telling others you aren't working because you sold a business for millions, it's quite another story to tell people you are retired while your spouse is still toughing it out in the workforce. And for those who retire early, it can be doubly difficult because almost everyone you know will still be working. Make certain you will be comfortable with your new identity before you actually quit.

Family members will need to adjust to you being around more often. It's not just your spouse who needs to be comfortable with you staying home. There are probably other family members who will see you much more often too. Work out a reasonable amount of time to spend together before you quit, because the intensity will only be heightened once you start seeing each other practically all day, every day.

Your spouse may want to quit shortly after you retire. Imagine how your spouse will feel when you stay in bed while she has to get ready for work, or when you stay up at night watching a movie while she has to force herself to go to sleep because there's an early morning meeting with the boss. I know I would feel awful and jealous at times. The working spouse may want to retire shortly after his or her partner, even if retiring was never considered before. It's ideal to get your finances in order before either of you retires, because it may not be best for the couple to rely heavily on one spouse working for decades longer. You probably don't want to tell your significant other that quitting isn't an option because the family can only afford for one of you to retire and you took the only spot.

Your retirement finances have to be in place before anyone considers retirement. But you also have to consider what is best for your relationship. Communication with your spouse becomes especially important as you transition into retirement. The more time you spend discussing the move, the better your family will cope with the change. You probably spent a substantial amount of time preparing your finances for retirement. It's wise for you to allocate some resources to preparing your spouse and other family members for the lifestyle change.

David Ning is the founder of MoneyNing.com.

 

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34 Savings and Money-Making Tips for Moms

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By Morgan Quinn

Raising a family on a budget is a daunting task. From infancy up to adulthood, having kids is expensive and it takes a lot of creativity and strategy to keep the finances in order. GOBankingRates asked some of the top female bloggers and finance experts (who also happen to be mothers) for their best money-saving tips for staying on top of family finances.

34 Best Savings and Money-Making Tips for Mothers

1. Build your weekly menu around grocery store sales. To combat one of the biggest expenses families face -- food costs -- take advantage of every bit of leeway your local supermarket offers. Jeanette Pavini, savings expert for Coupons.com, told us moms can get more control over their budgets by planning meals around sales. "By simply building their weekly meal menu around what's on sale at the grocery store, using reward/loyalty programs and coupons, you can save up to 40 percent on your grocery bill," she said.

2. Be financially independent. Part of being a parent is accepting the huge responsibility of protecting your family's financial future. According to Emma Johnson, founder of WealthySingleMommy.com, that starts with addressing your own personal finances.

"Never depend on anyone else for your financial security. Life can happen at any time -- death, divorce, disability," Johnson said. "It is your responsibility as an adult and parent to always take responsibility for the security of yourself and your family."

3. Make an extra mortgage payment. Just one extra mortgage payment a year can get your principal down, allows you to pay off your home faster and saves you money on interest, said Debbie Andersen of Pineapples & Palm Trees. She used this strategy herself, telling us, "Our home loan was paid off years before its time and my husband thanks me constantly."

4. Keep your pantry stocked. Cooking a family dinner at the end of the day can be stressful, but a well-stocked pantry can make this task easier, healthier and more affordable. So just what is a "well stocked pantry"?

Culinary expert and cookbook author Holly Clegg explained: "Think of a well-stocked pantry as a permanent shopping list. This tip will enable moms to cook more meals efficiently, timely and more affordable by saving money not having to pick up last-minute groceries, fast food or meals."

5. Say 'yes' to hand-me-downs. "Accept any hand-me-downs you're offered," advised Lori McDaniel, a mother of two, and a senior content manager and savings expert at Offers.com. "You have no idea how much money you'll save on everything from clothing to toys by accepting gently used items."

And if you don't end up using them, "you can simply donate the hand-me-downs you don't want," McDaniel said.

6. Do day care out of your home. Stay-at-home moms can earn some income by providing licensed day care right in their own homes. Marie Phillips at Family Money Values told us she did this back in the '80s to pay for her education expenses (she went back to school to become a computer programmer).

"Make it fun and educational," Phillips said. "Your kids will get instant playmates, you will earn considerable money and you will get experience being in business for yourself. ... It is hard work, but very rewarding."

7. Buy sale items in bulk. Coupon Mom and author Stephanie Nelson has some great advice on how to make the most of grocery store coupons. "Don't throw away money paying full price for expensive grocery items that go on sale for half price every other week," she told us. "Just buy twice as much as you need during sale weeks and you'll save hundreds of dollars a year with very little efforts."

As for which foods offer the best bulk value, Nelson recommends chicken, meat, pork and cereals.

8. Edit your grocery cart. Before you head to the checkout, Cherie Lowe from Queen of Free told us, there's one last step you should take. "Put back three to five items right before you check out at the grocery store," she said. "You'll easily save $5 to $10 without using a single coupon."

9. Pay yourself first. This age-old advice doesn't just apply to parents - everyone should listen up to it, according to Ella Newman, founder of Ella In Style and a stylist for the Doncaster Collection. "Pay yourself first, 5 to 10 percent."

Not sure how to invest the funds? "Put your savings in stock index funds or ETFs through a discount brokerage account," she recommended.

10. Head to your local library. Your local library is chock-full of free resources and activities for the entire family. "Moms can bring the kids to take out an armful of children's books or partake in story-time activities," said Susan Kessler, aka The Frugal Diva.

The parents don't have to leave empty-handed either. "You can pick up a movie to take home, a book for a DIY project or a novel for when the kids are sleeping," she said.

11. Use price-matching browser extensions for online shopping. Online shopping is convenient for most families: It's quick, easy and you don't have to drag your brood to the store with you. But there are certainly ways to make it more affordable, Liz Gumbinner of Cool Mom Tech told us. "Never ever buy anything without looking for a discount code online first."

Additionally, "Install a browser extension like Priceblink, which automatically searches the web and displays better prices at competitive retailers before you add a product to your cart. I've saved a fortune using it," Gumbinner told us.

12. Talk to your kids about money. Personal finance education should start at home, and there are plenty of money lessons kids can learn from an early age, TD Ameritrade managing director Nicole Sherrod told us. "It's important for kids to hear parents discussing savings, investing stocks and the economy because it will stimulate their interest," she said. "The sharpest adults I've come across tell me it was their parents who triggered their passionate interest in the markets and stimulated their financial education."

13. Give children an allowance. This can be a hot topic among parents, but Motherhood Moment blogger Bekah Jorgensen is a fan of giving kids an allowance from an early age. Jorgensen said it sets "a policy that if they want something that isn't a need, they buy it themselves or wait for the next gift-giving holiday."

"It avoids the battle in the store, helps kids be thrifty right from the start and helps parents save on impulse buys," she told us.

14. Shop the off-seasons. Slickdeals deals editor Amanda Tollis knows how to time her shopping just right. "Buying the next size up for your children in apparel or shoes while in the off-season or late season can score you deals that are hard to beat even in a second-hand shop," Tollis said.

Additionally, she said, like-minded parents who find great deals from well-known stores often share them on Slickdeals, so keep your eye out for great prices.

15. Resell your kid's stuff. Sheiresa Ngo, who provides personal finance advice at The Cheat Sheet, told us parents can "make some quick cash by reselling your child's old books, clothes and toys." Ngo recommended setting up an online shop on a site like Amazon, eBay or Swap.com.

16. Go wild with price-matching. Tameka J. Raymond, a mother, philanthropist, designer and cast member of VH1′s "Atlanta Exes," offered us one of her favorite ways to save money: "Price-matching. You can price-match anywhere, from grocery stores to department stores," she said. "Many stores will honor the price you find online, and still allow you to use coupons."

17. Tame the "Target crazy". Forget skipping your daily latte -- it's your Target habit that could be keeping you from reaching your savings goals. Patty Kennedy, blogger and CEO of marketing communication agency Kennedy Spencer, told us she was sick of reading tips like "cut your coffee," especially when "for many moms, coffee is a matter of survival." An easier way to cut down spending: Avoid the red bullseye.

"I know many women who go into that store, perhaps just for paper towels, and leave with $150 less in their pocket. This is a lot more damaging than the 30 cups of expensive coffee you'd have to drink to spend the same amount."

It's doesn't really matter if it's Target or another popular retailer, either. "What matters is that you are likely pouring a lot of money into those financial wastelands -- money that you likely completely forgot how it was spent the following week," Kennedy said. "If invested well, [that money] could mean more than $200,000 in your pocket later. Please think about that before you buy the third white shirt you don't really need."

18. Buy life insurance. Unfortunately, unexpected events can leave your family financially insecure. Cofounder of Aspire Canada Keisha Blair has first-hand experience with this.

"My husband died when I was just 31 years old and our life insurance that we paid just $20 per month for saved our lives," she told us. "I had two young sons and this happened eight weeks after I gave birth to the second one."

Emergencies can happen to anyone and anytime, so take the necessary steps to ensure you and your loved ones are protected.

19. Invest in groceries. Most of us have heard of investing in the stock market, but investing in groceries? Teri Gault, CEO of The Grocery Game, explains.

"Think like an investor -- stock up on half off and BOGO sales for your pantry, fridge and freezer," she told us. "Within eight to 12 weeks, make meals from your half price 'store' at home. Keep 'investing' and stick to weekly product specials, and you'll cut your food costs by about $500 a month."

Not only does this save money, but, Gault said, it's "the easiest lifestyle change for shopping and meal preparation."

20. Buy household items in bulk. Whether you have one child or many, your household likely flies through items like paper towels, toilet paper and tissue. These supplies can be expensive, unless you follow this tip from Tangela Walker-Craft of Examiner.com.

"Plan ahead and stock up on products that are popular in your home when they're on sale," she told us. You might have to get creative with storage, but the savings are worth it.

21. Carpool. Ellie Hirsch is founder of MommyMasters.com and mother to three little boys, so she knows a thing or two about schlepping kids around. "Instead of using gas every morning and afternoon, find a group of friends that are interested in carpooling," she told us. "It will not only create some extra time for you, but will be fun for the kids."

22. Get a side job. Side jobs can give many parents the opportunity to save money, bring in extra income and build a business. Heather Stephens, manager of the FatWallet blog, has some ideas on how to do this.

"If you have a car, start a shuttle service to help elderly people get to doctor appointments or shopping, or taking kids to lessons and practices," she said. "If you have a computer, become a virtual assistant, freelance writer or graphic designer. If you love the outdoors and live in a beautiful area, organize tours for hikers, campers, boy or girl scouts, fishermen and photographers."

It might seem overwhelming to think about, but the money-making possibilities are endless, Stephens said, "if you take what you own and know and put a creative twist on it."

23. Think of saving like paying a bill. Karlene Sinclair-Robinson, "mompreneur," small business advocate and alternative financing expert, told us how she manages to keep savings at the forefront of her priorities. "Moms should make savings a 'priority bill' that must be paid first," she said. "When we consider savings as a bill, our mindset shifts over time. It becomes a consistent habit, so at the end of a certain period, moms would have saved more money than they expected."

24. Buy last year's model. Even if you are a die-hard fashionista who needs to have the latest and greatest, buying the previous season's goods can save you a bundle, said Erica Harriss, founder of Saving Grace Beauty. "I have a particular tennis shoe I love that retails for $160," Harriss explained. "By snatching them up when the new colors are released, I usually save about 30 to 40 percent buying the 'old style.'" After all, as Harriss said, "Full-priced equals overpriced!"

25. Stick to sack lunches. Dr. Cynthia Bailey, president and CEO of Advanced Skin Care and Dermatology and a seasoned mom of now grown children, is a strong supporter of the sack lunch. She started this tradition when her kids were young, keeping the pantry well-stocked with lunch food and treats they could look forward to. Not only was this a way of keeping her own household expenses low, but it also taught her children a valuable life lesson. "My grown kids still make their own lunches and live on tight budgets," she said. "They are proud of their self-competence and my 25-year-old son even cooks his own dinners. Buying premade food is expensive, is usually less healthy than homemade meals and doesn't teach your kids to be resourceful in the kitchen."

26. Give your kids their own debit card. If this concept feels a little terrifying, just listen to what Cherie Corso, a parenting and lifestyle expert, has to say about it.

"I found giving my daughter a debit card was amazing," she told us. "She learned fiscal responsibility, plus math. Mother let their kids use their credit cards to buy iTunes and sneakers and things online, but it's more effective when they have their own card."

27. Become a work-at-home mom. Sometimes cutting expenses isn't enough to make ends meet. Parents who take time off to raise children can still find ways to keep one foot in the workplace and one in the playspace. Gaby Merediz, who owns Tmuffin, a kid's playspace, and Make Your Perfect, an online community for moms, told us crowdsourcing can be a great platform for a side income. "Websites like crowdsource.co and textbroker.com let moms write for projects with low commitment and pay anywhere, on average, from $5 to $50 an hour," she said. "Moms can bring in some extra income this way while staying home with the kids."

28. Cash in on competitors' sales at grocery stores. According to The King's Care blogger Abisola Osho, many grocery stores will match competitors' sales. "If you have a favorite store but the price is not the cheapest, ask them if they price-match," she recommended.

Osho also added one more helpful tip: "A smart way to identify the store for you is to write a list of the 20 items you most often use and check various stores' pricing."

29. Don't order off the kid's menu. Lauren Mendel, financial planner for MilitaryPlanners.com, offered up some unique advice on how parents can save more money. When she dines out with her toddlers, Mendel brings snacks from home to keep them busy and fill them up before the food arrives.

"I like to save money by avoiding kid's meals like the next dirty diaper," she told us. "By the time we get the meals we've ordered, everyone is full and ready to color. In the off-chance that someone is still hungry, I can always share my usually-way-too-big meal, which in all likelihood is what they want to eat the most anyways."

30. Focus on presence, not presents. We love this simple and down-to-earth piece of advice from Sherlyn Pang Luedtke, author and founder of PresentParentTraining.com. "Show your child love with your presence, not with presents," she told us. "Giving you child 100 percent of your attention for as little as 15 minutes a day increases your connection and reduces the need to compensate by buying gifts that will never fill your child's need for a relationship with you."

31. Always keep your money growing. Saving money on day-to-day expenses is important, but parents also need to keep their eye on the prize: retirement. Cheryl Fields, a specialized financial planner and the founder of Lifestyle Wealth Group, told us, "You want your money to grown tax-free and without restrictions so you can use it to enjoy life, enjoy retirement, ensure you never outlive it and then pass it on to the next generation."

Fields also gave us some simple guidelines to help novice investors keep their money growing no matter what happens in the stock market or economy. "Look for investments that 1. carry no market risk (yes, they are out there), and 2. have no risk of rising taxes eating away or destroying your wealth and your plan for retirement," she said.

32. Don't stop working. Farnoosh Torabi, a financial strategist, journalist and best-selling author, offered her words of wisdom for how mothers can find financial success. "Don't opt out from the workforce," she told us. "Child care is expensive and it may seem like the only option you have is to quit working to become the full-time caretaker, but try to avoid staying out of the work force for more than a year. Continue to work when your children are young so that you can go on to earn the seniority that's often necessary to call the shots and create a better work/life integration as your kids grow older and demand more of your time."

Torabi pointed out a stat Sheryl Sandberg mentions in her book, "Lean In": Women's average annual earnings decrease by 20 percent if they are out of the workforce for just one year, 30 percent after two or three years.

33. Hire an au pair. Au pairs (live-in nannies who are typically from other countries) aren't necessary limited to the wealthy. Summer Blackhurst writes for Go Au Pair and is an expert on the costs of child care in the United States. She says if you have two or more children, an Au Pair can cost half of what traditional day care expenses would be.

Not only do parents save on child care costs and gas from driving to and from day care centers, but it's less stressful having a child care provider in the home who can help in the morning, prepare meals at night and even assist with light household chores.

34. Block out time for your own projects. "If you have a running list of money-making projects you need to complete, the only way to turn those ideas into cash is to make the time for them," Carrie Olsen of Derek & Carrie told us. "Plan your week every Sunday evening, and block off time to work on your projects. You can even use a productivity app to help keep you on track."

 

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Job Growth Regains Steam, Keeping Fed Rate Hike on Track

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Economy Jobs
M. Spencer Green/AP
By Lucia Mutikani

WASHINGTON -- U.S. job growth rebounded last month and the unemployment rate dropped to a near seven-year low of 5.4 percent, signs of a pick-up in economic momentum that could keep the Federal Reserve on track to hike interest rates this year.

Nonfarm payrolls increased 223,000 as gains in services sector and construction jobs offset weakness in mining, the Labor Department said Friday. The 0.1 percentage point decline in the unemployment rate to its lowest level since May 2008 came even as more people piled into the labor market.

We see this report as reducing concerns that weak first-quarter growth represents a loss of economic momentum.

While the report suggested underlying strength in the economy at the start of the second quarter after a bad stumble, wage growth was tepid and March payrolls were revised downward, leading financial markets to push back rate hike bets.

"We see this report as reducing concerns that weak first-quarter growth represents a loss of economic momentum," said Michael Gapen, chief U.S. economist at Barclays in New York.

Nevertheless, he said the bounce back wasn't strong enough to think the Fed could bump rates higher before September.

March payrolls were revised to show only 85,000 jobs created, the fewest since June 2012. That resulted in 39,000 fewer jobs added in February and March than previously reported, underscoring the weakness in activity at the start of the year.

Investors on Wall Street cheered the report, with major stock indexes rising more than 1 percent.

Yields on U.S. Treasury debt slipped and futures contracts showed traders clinging to bets the U.S. central bank would raise rates from near zero this year. The dollar was little changed against a basket of currencies.

Labor Market Tightening

The drop in the unemployment rate pushed it within a whisker or two of the 5 percent to 5.2 percent range that most Fed officials consider consistent with full employment.

Some economists said the tightening labor market could push Fed officials to tighten monetary policy despite anemic wage growth.

"Even without wages or inflation picking up, we do not think the Fed will feel comfortable sitting at zero as the unemployment rate closes in on 5 percent," said Michelle Girard, chief economist at RBS in Stamford, Connecticut.

Also encouraging, the labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, rose 0.1 percentage point to 62.8 percent, although that was just up from a 36-year low.

Other measures on the Fed's so-called dashboard also improved further.

A broad measure of joblessness that includes people who want to work but have given up searching and those working part-time because they can't find full-time employment fell to 10.8 percent - the lowest level since August 2008.

In addition, the number of long-term unemployed continued to fall.

Tepid Wage Growth

Wages, however, were a weak spot. Average hourly earnings rose just 3 cents in April. While that took the year-on-year gain to 2.2 percent, it remained stuck in the range it has been in for the past few years.

The weakness in average hourly earnings is in stark contrast with other compensation measures that have suggested solid wage growth in recent months.

"With the unemployment rate approaching full-employment levels it will only be a matter of time before wages start to rise at a somewhat swifter pace," said Scott Anderson, chief economist at Bank of the West in San Francisco.

Last month, the government reported that the economy expanded at only a 0.2 percent annual rate in the first quarter, but data earlier this week showing a wider-than-forecast trade deficit suggests GDP actually shrank.

There was a broad-based acceleration in job growth in April, with the exception of the mining sector, where a plunge in crude oil prices has undercut energy production.

Schlumberger (SLM), the world's No.1 oil-field services provider, said last month it would cut a further 11,000 jobs, bringing total layoffs this year to 20,000. Baker Hughes (BHI) and Halliburton (HAL) have also announced thousands of redundancies.

Mining payrolls fell 15,000, logging the fourth straight month of declines. Manufacturing employment increased 1,000 after being flat in March as factories struggle with a strong dollar. Construction payrolls jumped 45,000 after falling 9,000 in March.

Private services employment rose 182,000 and government payrolls increased 10,000.

 

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Week's Winners and Losers: Priceline Beats, Keurig Retreats

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The Priceline travel website is seen on Friday, February 20, 2015.  The Priceline Group reported fourth quarter earnings beating
Richard Levine/AlamyPriceline.com website
There were plenty of winners and losers this week, with the world's top travel portal keeps an analyst-thumping streak alive and the top dog in single-serve coffee brewing fails to gain traction with its new brewer.

Priceline.com (PCLN) -- Winner

The leading online travel portal kept an impressive streak going this week, beating analyst profit forecasts. Priceline has landed ahead of Wall Street pros on the bottom line for 21 consecutive quarters.

This doesn't mean that Priceline's report was well received by the market. In fact, the stock slipped on lukewarm guidance. However, consistently besting analyst targets is something that deserves to be applauded.

Noodles & Co. (NDLS) -- Loser

One of the hottest restaurant IPOs of 2013 continues to be a wet noodle in 2015. Shares of Noodles & Co. hit a new 52-week low after another uninspiring quarterly report. The chain of fast-casual eateries specializing in its namesake noodles is warning that earnings will fall flat in 2015, off from its earlier target of 20 percent growth. This is the second year in a row that profit growth will be nonexistent. That certainly wasn't what investors were bargaining for when they hopped on to the stock after a scintillating start two summers ago.

Pandora Media (P) -- Winner

Pandora investors can breathe easier. The leading music streaming platform emerged victorious in a music royalties lawsuit. The Second U.S. Circuit Court of Appeals shot down efforts by music industry royalty collector ASCAP to get Pandora to pay more to license its music in a deal that also could have gnawed away at Pandora's digital catalog.

Pandora isn't out of the woods just yet. High music royalties that terrestrial radio stations don't have to pay remain a barrier to consistent profitability. Monetization and competitive challenges also remain. However, for shareholders who have suffered through a stock that has shed more than half of its value since peaking early last year, it's a welcome break.

Keurig Green Mountain (GMCR) -- Loser

Things aren't brewing the way that the company behind Keurig single-cup coffee machines was expecting. Keurig saw its year-over-year sales growth inch just 2 percent higher in its latest quarter, and the big culprit is the Keurig 2.0 machines that scan K-Cup portion packs to only brew those licensed by the company.

The backlash resulted in a 22 percent plunge in brewer sales, and while that was offset by a 7 percent uptick in sales of K-Cup portion packs, it doesn't bode well for the company if it can't get new customers to trust its java-brewing platform.

Lumber Liquidators (LL) -- Winner

Better late than never, Lumber Liquidators. The struggling flooring retailer announced this week that it will stop selling wood laminates from China. The chain's booming business was decimated after a "60 Minutes" report called into question the safety and product quality of its China-sourced merchandise.

Lumber Liquidators defended its business, but customers bailed. Comparable-store sales plunged nearly 18 percent in March relative to the same month a year earlier.

Halting the imports will help ease concerns of potential shoppers. It also helps that the problem may not be as widespread as some have feared. Lumber Liquidators has been offering its customers free inspections and lab kits, and less than 3 percent of the homes tested have fallen outside of the protective guidelines set by the World Health Organization for formaldehyde levels in indoor air. Obviously, anything north of zero percent is a problem, but at least we can now start to quantify the liability as Lumber Liquidators takes the risk off the table from future orders.

Motley Fool contributor Rick Munarriz owns shares of Keurig Green Mountain. The Motley Fool recommends Keurig Green Mountain, Lumber Liquidators, Pandora Media and Priceline Group. The Motley Fool owns shares of Lumber Liquidators, Pandora Media and Priceline Group. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool's one great stock to buy for 2015 and beyond.

 

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Disney Needs to Be Afraid of King Kong

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universalorlando.comUniversal's Islands of Adventure latest attraction -- "Skull Island: Reign of Kong" -- opens summer 2016 at Universal Orlando.
Sooner or later, Disney (DIS) is going to have to address the 800-ton gorilla in the room.

Comcast's (CMCSA) Universal Orlando unveiled Wednesday the latest addition to its collection of theme park experiences. Skull Island: Reign of Kong -- set to open next summer at Universal's Islands of Adventure -- will take riders through a re-creation of King Kong's Skull Island.

"You'll navigate perilous jungles, explore ancient temple structures and encounter hostile natives -- and that's only the beginning," the official pitch claims. "Throughout the rest of your excursion, you'll brave foreboding caves crawling with prehistoric creatures, fend off unspeakable terrors -- and even come face-to-face with the colossal Kong himself."

The new attraction announcement isn't exactly a surprise. Guests to Islands of Adventure in recent months have been able to see the massive ride building going up, and online chatter has been talking up the construction as a Kong-themed experience for just as long. It's been hiding in plain sight, and it seems that the only one that doesn't see it now is Disney.

Mouse vs. Beast

Just a few miles away from Universal Orlando, Disney isn't exactly setting the world on fire the way that Universal has with Harry Potter additions to both of its Universal Orlando theme parks. Disney's attendance is at record levels, but a good chunk of that is the handiwork of Universal's booming popularity drawing more visitors to the area.

Universal Orlando's attendance isn't quite at Disney World's level, but it's closing the gap. Universal parent Comcast reported a 34 percent year-over-year surge in revenue for its theme parks in its latest quarter. That compares to a more modest 6 percent uptick for Disney's theme parks. These metrics include the performance of Comcast and Disney theme parks outside of Florida, but third-party reports find Universal Orlando's overall growth climbing a lot faster than Disney World's in recent years.

It's clear that Universal is hungrier. It's been adding more marquee attractions than Disney in recent years. It's also been quicker about it. Disney has two major announced attractions -- a "Frozen" ride at EPCOT and an "Avatar"-themed land at Animal Kingdom -- but neither will be ready for guests before the new Kong ride.

It probably doesn't help Disney's cause that two of its four Florida parks have fewer attractions than they had a couple of years ago. Outside of the New Fantasyland addition at the Magic Kingdom, Disney World's been coasting at a time when Universal is raising the bar.

Wake Up, Sleepy

Disney's slumber won't last. It's been closing too many attractions at Disney's Hollywood Studios to not be about to announce a major addition to what has become its least-visited Florida theme park. A makeover fueled by "Star Wars," Pixar, and some Marvel franchises (it can't use the four franchises licensed to Universal's Islands of Adventure in Florida) is a no-brainer, but it's not as if renaming the park to Superhero Studios would be enough.

This isn't the time to be patient. Disney seems content to wait until after the new "Star Wars" movie premieres in December before breaking in new themed attractions. As that happens, Comcast is rolling out a new Kong attraction months before the new Kong movie hits theaters in late 2016.

There's nothing that Disney can take for granted here, and that includes its once-firm grip of Central Florida tourists. Universal is building a water park and its fifth on-site resort hotel. It wants to be the place where tourists can come for a weekend or an entire week without having to leave the property, something that Disney has enjoyed for decades.

The battle for theme park supremacy is heating up.

Motley Fool contributor Rick Munarriz owns shares of Walt Disney. The Motley Fool recommends and owns shares of Walt Disney. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool's one great stock to buy for 2015 and beyond.

 

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What Traffic Tickets Really Do to Your Auto Insurance Costs

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Woman looks into distance after being pulled over, horizontal
Getty Images
By Jason Notte

NEW YORK -- Getting a traffic ticket isn't great under any circumstance, but your insurance company thinks you should be sweating some offenses more than others.

The Insurance Information Institute notes that spending on auto insurance has held remarkably steady in recent years. Though the average annual cost of auto insurance rose from $798 in 2011 to $815 in 2012, according to a December 2014 report from the National Association of Insurance Commissioners, AAA notes that costs differ based on the driver. The average low-risk driver with a clean driving record for a policy with a $500 deductible for collision and a $100 deductible for comprehensive coverage paid $1,023, down from $1,029 in 2012, according to AAA.

"Auto insurance expenditures have remained relatively stable when compared to other life essentials, such as housing, food and health care," said Robert Hartwig, economist and president of the institute. "People are spending about the same for auto insurance as they did a few years ago, adjusted for inflation. Meanwhile, other expenses continue to eat up bigger portions of their budget."

But only if they can keep their driving record fairly clean, or at least avoid the moving violations that insurance companies hate most. Laura Adams, senior analyst for insurance information and pricing site insuranceQuotes.com, says that only 19 percent of Americans who got a traffic ticket in the past five years are paying more for car insurance as a result. That's down from 31 percent in 2013, with drivers ages 30 to 49 picking up the most tickets and drivers 18 to 49 the most likely to see their insurance rates increase after getting a ticket.

Of all the moving violations a motorist can earn a ticket for, however, Adams says these three are by far the worst:

DWI/DUI
  • Percentage of average rate increase: 92.49 percent
While driving under the influence is not a terribly surprising list-topper, it's incredible how much the insurance penalty can vary by state. For a first offense in North Carolina, a DUI conviction results in an average (average!) rate increase of 337 percent. That's closely followed by a 289 percent uptick in Hawaii and a 184 percent surge in California. While that rate hike goes down to a surprising 15 percent increase in Maryland (below the 16.49 percent average nationwide rate hike for driving without a license), insurers tend to keep a DWI/DUI on a client's record much longer than any other violation.

"If you get a ticket, it's not just an increase in one year's premiums: That violation will stay on your record for up to five years," Adams says. "DWI and DUI tends to stay on your record for 10 years. That's in a category all by itself because, when you get that kind of a ticket, the state is pretty proactive in telling the insurance company about it."

Reckless Driving
  • Percentage of average rate increase: 83.29 percent
This one doesn't sound bad enough to be the No. 2 most-costly violation in the country, but just consider what it has to entail.

"With reckless driving, the ticket shows that you had some intent to do something reckless," Adams says. "You were speeding, you were playing a game of chicken with your friends on the highway."

If you missed a yield sign and caused an accident, however, it may be in your interest to argue that ticket down to careless driving if possible. While it sounds similar to reckless driving, it lacks the intent and, in insurers' eyes, merits an average 27 percent premium increase. Considering that reckless driving can double your insurance rates in Massachusetts, Michigan and Illinois, nearly triple them in California and quadruple them in Hawaii, obliviousness is preferable.

Speeding 31-Plus Miles Over the Limit
  • Percentage of average rate increase: 29.26 percent
Thirty-one is the dividing line between "where's the fire?" and lapping the firetruck.

On most highways, that's putting you into 95- to 100-mph territory. In cities, it's roughly or more than doubling the speed limit. Taking it down a notch doesn't help either, as speeding 16 to 30 mph over the speed limit boost rates by about 28 percent.

"A lot of people don't realize that speeding is as harmful to your driving record and insurance as it is," Adams says. "It's pretty serious. If you're speeding one to 15 miles over the speed limit, it's still raising your rates by an average of 21 percent."

As for the more minor violations, some are more obvious than others. Failure to wear a seat belt, the least menacing ticketable offense in an officer's arsenal, only raises rates 5.6 percent on average. Driving without a license, somewhat surprisingly, not only merits only a 16.47 percent increase, but is deemed a lesser offense than driving solo in the carpool lane (17.91 percent) and failure to signal (18.55 percent).

"The intent behind these violations is what's really important to the insurance company," Adams says. "They view it as how likely you are to get into an accident and make a claim on your insurance policy. When you look at some of the minor violations, it doesn't indicate intent or risky driving."

-Written by Jason Notte in Portland, Oregon, for MainStreet.

 

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Walmart Targets One-Time Target Stores in Canada

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The Target
Rick Madonik/Toronto Star via Getty ImagesTwo men peer into a closed Target store in Brampton, Ontario. The location, shut on April 12, closed earlier than expected.
NEW YORK -- Walmart (WMT), already Canada's biggest retailer, wasted little time in cementing that title after its rival, Target, retreated back to the U.S.

The company is buying 13 former Target (TGT) stores and one distribution center and said it will hire 3,400 new employees. It is spending $290 million to buy and renovate the stores and said that will created 1,500 construction jobs.

Target closed the last of its 133 Canadian stores in April after a rough two-year venture into the country and laid off more than 17,000 people.

A number of retailers have struggled in Canada because of regulatory pressures and competition. Big Lots (BIG) and Best Buy (BBY) have both closed stores in Canada. Sony (SNE) is closing all of its 14 stores.

Sears (SHLD) sold most of its stake in its Canadian unit, but asked former Target employees in January to apply for jobs at Sears Canada Inc.

Walmart Stores Inc. has 395 Canadian stores and has expanded further on Target's withdrawal.

Walmart reported $485.7 billion in total revenue in its last fiscal year and about one-quarter of that total came from Walmart's international business. Canada is its fifth-largest market outside the U.S. in terms of stores.

 

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Meet the Cheap Airfare Site That Airlines Don't Want You to Know About

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United Earnings
Gene J. Puskar/APSkiplagged.com uses a little-known secret among frequent fliers to help people find cheaper plane tickets.
Tech-savvy travelers have been leaning on the Internet for getaway deals for years, but there's one site that's shaking up the industry in a way that's giving passengers deals and airlines fits. Skiplagged.com -- as in "Skip Lagged," not "Ski Plagged" -- scours fares to find the best offers available to desired destinations. That's not new: Priceline.com (PCLN), Expedia (EXPE), and smaller rivals do exactly that.

However, what sets Skiplagged apart is that it also smokes out itineraries with connecting flights where the ultimate destination is one of the connections. For example, a flight from Miami to Charlotte with a stop in Atlanta might be cheaper than a direct flight to Atlanta. A customer booking a flight through Skiplagged would purchase the flight to Charlotte, getting off at the Atlanta stop.

A longer flight doesn't automatically translate into a higher fare. Disparities exist given the competitive nature of metro markets, so a faraway destination with aggressive discounters could force major carriers to charge less than they do on a stop along the way.

It's hard to pass up a great deal, and as a bonus for frequent fliers, it might also translate into more miles being awarded.

Coffee, Tea, or Ethics

It's not perfect, of course. A passenger can't check any baggage, since those belongings would continue on to the booked destination. This might not be such a big deal these days, however, as extra fees for checked baggage find more and more people packing light enough to fill overhead cabin bins.

Another knock on these so-called "hidden city" bookings is that they can only be used for one-way flights. Passengers taking advantage of this trick naturally wouldn't be able to board the return flight from the booked destination. This isn't a big deal, either: Two one-way bookings are as good as a roundtrip flight. However, it is something to consider.

The third and final thing to worry about is that while not illegal -- "hidden city" bookings are technically legal -- it does violate the fare rules of most leading airlines. If this type of airfare reservation grows in popularity, eating at the industry's profits, it could force airlines to refuse service to frequent bookers of "hidden city" tickets.

Buckle Your Seat Belts

Airlines probably don't want to single out passengers for using this trick: The negative publicity would be brutal for business in a highly cyclical industry.

However, that's not going to stop them from going after Skiplagged. It's been so disruptive that the site has now been sued by at least one air carrier and one online travel portal. It settled with Orbitz (OWW) earlier this year, and a judge threw out the case initiated by United Airlines (UAL) on grounds of jurisdiction a few days ago.

The legal fisticuffs aren't likely over, so deal-seeking passengers will want to weigh the pros and cons of going this route. However, until the industry corrects the inefficiencies of its route-pricing dynamics, it's not going to stop opportunists from finding ways to get where they want to go by paying the least amount possible.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Priceline Group. Try any of our Foolish newsletter services free for 30 days. Check out our free report on one great stock to buy for 2015 and beyond.

 

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U.S. Postal Service Reports $1.5 Billion Loss

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Karen Bleier, AFP/Getty ImagesA Postal Service carrier delivers mail during a snow storm last March in Manassas, Virginia.
WASHINGTON -- The U.S. Postal Service on Friday reported a net loss of $1.5 billion during the first three months of this year, noting that while more people are using its shipping and package services, it's costly to do and revenues from other products have declined.

The Postal Service is an independent agency that receives no tax dollars for its day-to-day operations but is subject to congressional control. It has asked to end most Saturday deliveries, a request that was blocked by Congress amid opposition by postal unions and others.

According to its latest financial statement, which covers Jan. 1 through March 31, the Postal Service sent 420 million fewer pieces of mail compared to the same period last year. First-class mail fell by 2.1 percent and standard mail by 1.1 percent. But a 14.4 percent increase in shipping and package volume contributed to a slight uptick -- 1.3 percent -- in operating revenue.

That $223 million increase in operating revenue, however, was tempered by high operating expenses. The Postal Service says it found some relief because of a decline in workers' compensation cost that quarter. But the Postal Service said it's still dealing with "higher compensation costs from growth in the labor-intensive shipping and package business, as well as higher retirement contribution rates" mandated by the government.

"Shipping and package services are a key business driver. However, operating margins in this business are lower than in mailing services," Joseph Corbett, the Postal Service's chief financial officer, said in a statement. "And, while we're pleased to see a small increase in controllable income, to improve our margins, we'll need to make investments in our network infrastructure and delivery vehicles."

The National Association of Letter Carriers said the figures show that the Postal Service is turning itself around because of an increase in "controllable income." Controllable income excludes certain factors including a requirement that the Postal Service prefund retiree health benefits.

If the retiree health benefit prefunding expense was excluded, the net loss would have been only $44 million. That would be compared to a loss of $447 million during the same period last year.

 

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To the Beach! AAA Sees Most Holiday Travelers in 10 Years

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Memorial Day Travel
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With more money in their pockets thanks to lower gas prices and an improved job market, AAA expects more than 37 million Americans to travel for Memorial Day, the most since 2005.

AAA said Friday that the number of Americans taking a trip of 50 miles or more will rise 4.7 percent to 37.2 million over the period May 21 to May 25. Nearly nine of 10 travelers, or 33 million, will drive to their destination, making for crowded highways.

Gasoline should be around $1 cheaper this Memorial Day. The average price for a gallon of gas Friday was $2.66. Last year on the holiday it was $3.66.

Following a harsh winter, many Americans are trading in their snow boots for flip flops and making plans to start the season with a vacation getaway.

AAA says the number of people flying should rise 2.5 percent. A thriving stock market has boosted the net worth of wealthier Americans, who more easily can afford to fly for vacation.

The economy is strong enough to give consumers more confidence to travel. Employers added 223,000 jobs in April after a slow start to the year. Last year, job growth averaged 226,000 a month. Although wage growth is sluggish at 2.2 percent, combined with lower gas prices it does give consumers more disposable income.

AAA is suggesting cabin fever may play a role as well.

"Following a harsh winter, many Americans are trading in their snow boots for flip flops and making plans to start the season with a vacation getaway," said Marshall L. Doney, AAA's president, in a statement.

The total number of travelers and the number opting to drive should be the highest since 2005, when 44 million people traveled, 37.3 million of them by car.

AAA predicts that travel by other means, such as bus, train and cruise ship, will decline for the first time in five years, to 1.6 million people from 1.7 million a year ago.

 

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Market Wrap: Stocks Leap as Wall Street Applauds Job Growth

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By Noel Randewich

NEW YORK -- U.S. stock indexes ended more than 1 percent higher Friday after strong jobs data indicated U.S. economic growth was picking up momentum, but not enough to raise concerns about an earlier-than-expected interest-rate rise by the Federal Reserve.

U.S. job growth rebounded last month and the unemployment rate dropped to a near seven-year low, suggesting underlying strength in the economy at the start of the second quarter after growth hit a soft patch in the first.

The market loved the jobs report. Couldn't have been better.

"The market loved the jobs report. Couldn't have been better," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. "It wasn't a strong enough number to prompt any concern by the Fed."

Nonfarm payrolls in April increased by 223,000, just below expectations, while the unemployment rate dropped despite more people entering the job market. Tempering that good news, March payrolls were revised downwards to show only 85,000 jobs created, the fewest since June 2012.

"The revision to last month is certainly significant. I think this is consistent with most of the data that has been coming out. The economy is slowing a bit, job creation is slowing a little bit," said Uri Landesman, president of Platinum Partners in New York.

Capping off a week of choppy trading that saw investors fretting about valuations and increasingly focused on interest rates, the Dow Jones industrial average (^DJI) rose 267.05 points, or 1.5 percent, to end at 18,191.11.

The Standard & Poor's 500 index (^GSPC) gained 28.10 points, or 1.4 percent, to 2,116.10 and the Nasdaq composite (^IXIC) added 58 points, or 1.2 percent, to 5,003.55.

The last time all three indexes gained more than 1 percent in a session was on May 1.

For the week, the Dow was up 0.9 percent, the S&P 500 was up 0.4 percent and the Nasdaq was down fractionally.

Boosting Interest Rates

For six years, ultra-low borrowing costs have fueled stock gains and market participants have wondered how the U.S. market, which is trading at historically expensive valuations, will fare once the Fed begins raising interest rates.

The S&P 500 is trading at 17 times expected earnings, compared to its 10-year median average of 15, according to StarMine data.

The Dow is 0.5 percent short of its all-time high close set in early March and the S&P 500 is 0.1 percent below its record high close set in April. The Nasdaq is 1.7 percent lower than its record close on April 24.

Next week, labor expenses will be a key focus as big retailers, including Macy's (M), Nordstrom (JWN) and Kohl's (KSS) post quarterly results.

On Friday, all the 10 major S&P 500 sectors posted strong gains, led by a 1.62 percent jump in the health index.

Microsoft (MSFT) rose 2.3 percent to close at $47.75 after Reuters reported that the company wasn't weighing an offer for Salesforce.com. Salesforce.com (CRM) fell 2.9 percent to $72.40.

AOL (AOL) surged 10.2 percent to end at $43.42 after reporting revenue above analyst expectations.

Advancing issues outnumbered declining ones on the NYSE by 2,468 to 604, for a 4.09-to-1 ratio on the upside; on the Nasdaq, 1,737 issues rose and 1,023 fell for a 1.70-to-1 ratio favoring advancers.

The S&P 500 posted 23 new 52-week highs and 2 new lows; the Nasdaq composite recorded 71 new highs and 42 new lows.

About 6.6 billion shares changed hands on U.S. exchanges, below the 6.8 billion daily average for the last five sessions, according to BATS Global Markets.

 

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Restaurant Reservations Are Broken. Here's a Simple Fix

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By Allison Schrager

Eric Blinderman, owner of New York City restaurants Almanac and Mas Farmhouse, has nothing nice to say about people who blow off reservations without cancelling. He estimates no-shows make up 10 percent, sometimes even 20 percent of his booking each night. "When people don't show up, it's catastrophic and horrible."

Most restaurants operate on thin margins. No-shows can be the difference between red ink or black for the evening. Reservations as they exist today create what's called an information-asymmetry problem. Restaurants don't know how likely a diner is to honor their booking. Maybe the reservation-holder is a die-hard foodie who will brave a blizzard for squid ink agnolotti, or maybe she's a flaky trendster who booked five other tables to choose from that very same night.

That uncertainty is what leads restaurateurs to overbook their dining rooms, forcing some customers to wait at the bar for a half hour while, at the same time, dropping checks on diners who are taking their last bites of dessert.

Calling a restaurant, or booking on the big daddy of reservation websites, OpenTable, just doesn't work. In a typical market, a scarce product or service with excess demand is auctioned off to the highest bidder. But because restaurants don't normally do this, there are chronic shortages. Trendy yuppies and hipsters can't find seats at hip restaurants during peak hours. They are stuck on the outside looking in at people who planned months in advance or have connections with staff or ownership.

Answers Via Apps? Nope

Forever striving to improve the lives of the elite, Silicon Valley has produced several apps, with names like Resy and Shout, to resolve this. Diners who book via their smartphones can pay a premium for prime tables at high-demand restaurants. But they're going the wrong way: the benefits they offer are one-sided. A cheaper, easier solution is possible: it's time to start rating restaurant patrons, Uber style.

Before I explain the ratings system, let's look at what OpenTable, which has all but cornered the online reservations business, has gotten wrong: According to OpenTable's Tiffany Fox, "you can either punish or reward" diners who use the service. But right now OpenTable only doles out punishments: skip out on four reservations in a year without canceling (which you are free to do up to the moment of your reservation), and your OpenTable account will be closed. The shutout is automatic since the system automatically logs no-shows.

As with Uber customers, reservation software could include a diner rating based on their on their reservation-honoring history, their behavior, and maybe even their tipping habits. Ratings could impart more granular information than simply shutting people out. For instance, from a restaurant's perspective a last minute cancellation is almost as bad as a no-show. A rating system would allow restaurants to track all such undesirable behaviors in a user's profile.

Indeed, the four-strikes-and-you're-out rule has not been effective because diners can and do open new OpenTable accounts with a different email addresses, escaping their unsavory histories. There is little cost to losing an OpenTable account because good behavior is not rewarded. That OpenTable VIP badge simply rewards those who frequently use the service, and there are few, if any, perks bestowed to diners with the status.

Ratings System With Rewards and Punishments

A ratings system that rewards well-behaved diners as well as punishes no shows would create a huge incentive to maintaining status. Five-star diners who show up and behave themselves would get prime tables. Diners with fewer stars would only be offered less desirable times at less popular restaurants, and jerks would be shut out altogether. Knowing they are being rated would motivate diners to behave, and ratings would follow diners to different cities.

In fact, some high-end restaurants are already taking extreme measures to avoid reservation-flakes, forcing diners to front money for their tables. Nick Kokonas owner of Chicago's famed Alinea, requires diners pay for the entire meal when they book. And diners pay slightly more for peak times. Kokonas says this ticketing model has reduced his no-show rate from over 15 percent to around 1 percent.

"The reservation apps are totally customer-centric, but they don't really solve the restaurant's problem," says Brian Fitzpatrick, Kokonas's chief technology officer. "One of the biggest problems isn't just no-shows, it's when only part of the party shows and you have to give a party of two the table of four they booked. With tickets, restaurants know exactly who's coming.

"Restaurants also have the revenue upfront," he adds. "That means they can work out better deals with their food suppliers. That means cost savings and less waste."

Tickets for Set Times and Dates

Kokonas first tried ticketing in 2011 with his restaurant Next, and now uses it at his other establishments. He and Fitzpatrick are developing software that other restaurateurs can use too. Thomas Keller, owner of top restaurants French Laundry and Per Se, is a financial backer, and is expected to start using the service.

The concept is simple: instead of calling, prospective dinners will visit a restaurant's website and buy tickets for a set time and date. Restaurants will also have the option of only asking for a smaller deposit -- say $20 -- that is applied to the check. The software will be ready later this year, and 17 restaurants have already signed up.

Customers who expect to use the service to shop around town for a table will be out of luck. "It's intentionally not a search engine. There's Google for that," Fitzpatrick explains. "The whole idea is the relationship between the diner and restaurant."

Prepaying is most likely to benefit destination-restaurants that feature superstar chefs and restaurateurs, and prix fixe menus. Tickets turn fine dining into a major event. And, in that sense, it's a great concept for special event dining, like a graduation dinner, an anniversary, or birthday meal.

But it's not clear the dining public is ready to rethink how they pay for a more typical night out, when there is a good chance their baby-sitter will flake. Blinderman says even asking for a credit card upon booking risks alienating customers. "People think of restaurant reservations as free," he says. "They get offended at the idea of paying for something they did not have to before."

Reviewing the Diners

It's safe to say that smaller, more casual restaurants have a more fickle customer base, leaving them with less leverage. And that's where diner ratings come in: they bridge the information gap, giving restaurants a shot at avoiding dodgy customers at virtually no cost.

Armed with diner ratings, restaurants won't need to overbook. They might also become more transparent: There's another reason prime tables are hard to find online: every time someone books through OpenTable, the restaurant pays the site a fee. That means Blinderman, along with many other restaurateurs, don't offer prime time tables on the site. They can fill those tables with people who call the restaurant directly, saving the fee. But the certainty they would gain from ratings might make putting those tables online more palatable.

Now consider: the very fact that OpenTable has all this information means they could use it as the start of a ratings system that would fix the no-show situation for restaurants forever. But if you're wondering, the company says it has no plans to do so at this time. Silicon Valley startups looking for an older dotcom company to disrupt might want to take note.

Ratings would empower restaurants, whose own reputations can be sunk on sites like Yelp, to hold customers accountable. Rather than resorting to premiums or tickets for prime tables, ratings would keep fine-dining open to the well-behaved, unconnected, disorganized masses. Well, to the masses who don't mind shelling out for a $100 meal, anyway.

Allison Schrager is an economist with a focus on pension issues. This story originally appeared on Quartz.

 

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12 Ways to Avoid Obnoxious and Escalating Hotel Fees

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How to Avoid Paying Outrageous Hotel Fees

By Marilyn Lewis

The world for consumers has changed for the worse since some diabolical genius discovered it's possible to break a service into many separate fees. The airlines have led, if you can call it that, by charging additionally for bringing a suitcase on a plane, priority boarding, leg room, food and drink.

Hotels seem to be perfecting the practice. Especially insidious are mandatory "resort" fees: charges for services that historically have been part of a room rate. Resort fees are a single charge covering such services as Internet access and Wi-Fi, bottled water, use of the swimming pool, beach chairs, spa, gym and towels, parking, local phone calls and a "complimentary" newspaper at your door in the morning.

Resort Fees

ResortFeeChecker.com explains: "Most resort fees are mandatory and are on a per room, per night basis. Resort fees can range from as low as just a few dollars per night to over $30. Because they are mandatory, hotel guests often feel that they are used as a way to make the nightly rate appear lower than it actually is. A room at $70 per night with a $30 resort fee is no different than a $100 per night hotel with no fee."

Resort fees generally are found at higher-end properties and in popular vacation locales like Florida, Hawaii, Las Vegas, Puerto Rico and the Caribbean, says travel blog The Points Guy. Orlando is the capital of hotel fees, writes USA Today. USA Today found a traveler who paid a $60-per night hotel fee in addition to his room rate at a Puerto Rico resort.

But it doesn't end with resort fees. Other fees in the hospitality industry are multiplying like rabbits in spring. There are early check-in fees, early check-out fees, cancellation fees, fees for using the room safe, fees to hold your baggage behind the front desk and automatic gratuities (tips for staff), says CNN.

Hidden Fees

Hotels have become adept at hiding fees, revealing them only in fine print on a website, in the final stages of a transaction or as you check out at the end of a stay to find, for example, a $25 charge on your bill for using Wi-Fi, or a fee for storing your own yogurt in the minibar fridge.

Randy Greencorn, co-founder of ResortFeeChecker.com, says in an email: "Virtually all online travel agencies and most hotels hide or bury mandatory fees to some degree. In almost all cases, the fee is only disclosed after a consumer sees the basic room rates, decides on a hotel, and begins the booking process."

In 2012 the Federal Trade Commission warned 22 hotels against "drip pricing" through add-on fees that are not disclosed on their online sites and may only become apparent after arrival or upon checkout. If you've been misled about mandatory fees the FTC urges you to file a complaint.

As a result, though, hotels just ramped up the fees, according to USA Today: "Instead of eliminating resort fees, as some predicted, hotels simply improved their disclosure, with the government's blessing. Hotels saw that as a green light to add more fees, as long as they told their customers."

Sadly, hotel fees may be here to stay. It's on consumers these days to be vigilant. So let's talk tactics. Here are 12 ways to help you find and avoid or fight hotel fees:

1. Read the Fine Print

Shocked incredulity may not be an effective defense when, at checkout, you discover surprise fees added to your bill. You'll need to learn what you are up against:
  • Find and read the rules found on a hotel's website, at checkin and in the room.
  • Ask for a list of fees when you check in.
  • When shopping for a hotel, keep a look out for "daily resort charges" and "resort charge" in ads and promotions.
  • "A reputable resort will reveal the fee on your final confirmation," says USA Today. Cancel, if you don't like it.
2. Call Ahead

"You can also avoid fees in many cases by calling ahead to the hotel and asking about packages, many of which include fee waivers, especially for Wi-Fi and parking," CNN advises.

3. Look Up Resort Fees

Use ResortFeeChecker.com to find fees charged at the hotels or resorts you are considering.

4. Negotiate a Waiver

Some hotels will waive fees if you tell them at check-in that you won't be using the items covered by the fees - Wi-Fi, for example, or the hotel's gym or pool, Isar Meitis, president of Last Minute Travel, tells Kiplinger.

5. Shun Hotels With Fees

The surest way to deal with hotel fees is to avoid hotels that charge them. Select establishments whose rates reflect all charges upfront:
  • Book a room in an independent hotel or motel or a bed and breakfast instead of a chain. Check local Chamber of Commerce or visitors' sites for local lodging options.
  • Find hotel booking sites that disclose booking fees upfront. Kiplinger likes these two: Stayful and Getaroom.com.
6. Use Peer-to-Peer Home Rentals

Skip hotels entirely and instead rent a private home through sites like AirBnB, HomeAway and VRBO. These typically charge a cleaning deposit and booking fee, but companies' websites should display these clearly and incremental fees for use of equipment or amenities are uncommon.

7. Use a Loyalty Program

"Loyalty programs are the best way to avoid extra fees and surcharges, since loyalty programs typically offer fee waivers," Melanie Nayer, a travel journalist and hotel expert told CNN.

"Hotel-branded credit cards and hotel loyalty programs ... may be able to save you on certain fees, but you probably won't be able to avoid all of them," says CreditCards.com, adding: "Information for the American Express' Starwood Preferred Guest credit card, for example, clearly states that if you redeem points for a free stay, some hotels will still charge you for mandatory service and resort charges. Hotel loyalty programs may give you things such as free Internet access, free early check-in or late check-out, free newspapers or free gym access, but they won't get resort fees waived."

8. Get Loyalty Program Elite Status

Some fees, like late check-out and for Internet, typically aren't charged to elite members of a chain's loyalty program, says MilestoMemories travel blog. "I have also had mixed success with getting resort fees waived at select hotels," the blog says, adding that hospitality chain rewards programs typically offer elite status to guests who use their co-branded credit card.

TheTravelSisters blog compares features of hotel loyalty programs, including Hyatt Gold Passport, Starwood Preferred Guest, Marriott Rewards, Hilton HHonors, IHG Rewards Club (formerly Priority Club) and Club Carlson.

9. Book With Awards Points

ThePointsGuy says that some chains or certain hotels in a chain will waive resort fees when you book using awards points. Read the blog post for a detailed discussion.

10. Park Elsewhere

Hotels, even suburban hotels and motels, have begun charging to park in their non-valet lots. (I know. What is the world coming to?) Your options:
  • Find free on-street parking
  • Stay in the suburbs where parking is often free or cheaper.
  • Search the Internet for cheaper parking garages near your hotel.
  • Use a coupon. Search online for "parking" and "coupons" and the city's name. Kiplinger points to Icon Parking Systems, with coupons for discounted rates in 200-plus garages throughout New York City, as one example.
11. Rethink the Minibar

Some hotels charge you just for picking up and replacing an item from the minibar. A $25 fee is not unheard of for using your hotel room's refrigerator to store snacks you've purchased elsewhere. Your options:
  • Don't eat or drink treats from the minibar unless you are desperate or ready for big charges.
  • Don't even open your room's refrigerator. Avoiding it entirely is the best way to avoid a shock on you room bill.
  • Want a chilled beverage or snack? Fill your room's ice bucket with ice from down the hall and keep your goodies in it.
12. Foil Wi-Fi Fees

One piece of good news from the American Hotel & Lodging Association: "Fewer hotels are charging for in-room Internet services. Only 11 percent of respondents charge for Internet service. This figure is down from 23 percent in 2012." However, if you find your hotel charges for Wi-Fi, here are some workarounds:
  • Own your own Wi-Fi hotspot. (At least one offers free monthly service.)
  • If it's capable, turn your cell phone into a personal hotspot. "A Personal Hotspot lets you share the cellular data connection of your iPhone or iPad," explains Apple in this how-to. (Don't forget to check with your wireless carrier to find out if this will cost you additional data charges).
  • Jog down to the lobby and see if you can use Wi-Fi there free of charge.
  • Use WeFi to find nearby Wi-Fi hotspots.
  • Find a nearby Starbucks or local, independent coffee shop and use it as your home away from home. Meanwhile, enjoy a retro vacation - sans Wi-Fi.
Like this story? Share it with your friends on Facebook. Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash.

 

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15 Surprising Ways That Bad Credit Can Hurt You

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By Max Wong

Everyone knows that bad credit can prevent you from getting a mortgage, credit card, or other loan. But did you know that in addition to hurting you financially, bad debt can damage you emotionally and even romantically? If you have a low credit score, it's important to improve your number in order to avoid these problematic issues.

1. Damage to Your Relationships

Often when people cannot borrow money from a traditional lender due to bad credit, they turn to friends and family to bail them out. Being late on a credit card payment will damage your credit rating. But being late on a promise to pay back a friend can destroy your relationship.

Bad credit has a terrible impact on marriages. Jeffrey Dow, a Faculty Fellow at the National Marriage Project, has extensively studied the impact of consumer debt on marital satisfaction. Dow's research uncovered that, in addition to being cited as the leading cause of divorce in America, financial disagreements were a much better predictor of future divorce than even sexual disagreements.

"Compared with disagreements over other topics, financial disagreements last longer, are more salient to couples, and generate more negative conflict tactics, such as yelling or hitting, especially among husbands," Dow says. "Perhaps because they are socialized to be providers, men seem to take financial conflict particularly hard. Not surprisingly, new research that I have done indicates that conflict over money matters predicts divorce better than other types of disagreement."

And, talk about kicking you when you are down. During a divorce, a credit score can be used as leverage when dividing up assets.

2. Lack of Access to Emergency Money

One of my friends nearly lost her dog to cancer last year. Because of her low credit score, she was unable to get an emergency loan to cover her beloved pet's medical bills. Luckily, she was able to raise the money for treatment by crowd sourcing. Unfortunately, this kind of happy ending is uncommon. Outspending your means could leave you vulnerable to a medical catastrophe.

3. Limited Mobility

Hurricane Katrina was devastating to just about everyone in New Orleans, but many people were put in harm's way due to financial obstacles. Katrina struck on August 29, two days short of payday for some of the city's poorest residents. With no cash on hand and no credit, people literally lost their lives because they couldn't afford to pay for a bus ticket or gasoline to evacuate the area.

Airline tickets cannot be purchased with cash. While this seems like a First World problem, homesickness and the desire to go home is a universal feeling. In addition to keeping you away from loved ones, having a low credit rating can keep you from getting the best credit card for travel. With the right rewards card, travelers can save thousands of dollars by using mileage points to purchase tickets and accommodations, and avoiding foreign service fees for cash advances and purchases. Poor credit can also keep you from owning a car or getting affordable insurance, which in turn can keep you from taking jobs that require a car.

4. Costlier Car Insurance

Although this is illegal in some states, some car insurers have decided that there's a connection between on-time payments and reckless driving -- and jack up the rates or deny auto coverage accordingly. Not having car insurance can obviously negatively impact the quality of life of anyone who is dependent on a car for work.

5. Increased Property Insurance Costs

Some insurance companies see a correlation between low credit scores and high insurance claims, and inflict punitive rate increases on customers with poor credit. Although California, Massachusetts, and Maryland prohibit this practice, people with poor credit pay a least twice as much as people with excellent credit in most states. For example, if you live in West Virginia and have poor credit, you will pay up to 208 percent more than your neighbor with a high credit score!

6. A Struggle to Refinance a Mortgage

Following the epidemic of foreclosures, new banking rules have been applied that make borrower's creditworthiness even more critical to negotiating a reasonable interest rate for home loans. Getting a loan allowed me to turn my rundown house into a beautiful rental property that pays for itself every month. The ability to get a loan for home improvement revolutionized my life by putting me on the fast track to financial independence.

7. Difficulty Renting

As a landlord, I check the credit score of potential tenants for late payments. I won't rent to people with too many late payments because the eviction process costs me too much time and money. It doesn't matter how much I like the prospective renter; I've learned the hard way that any goodwill I might have will be quickly turned into hate by tardy renters who have to be nagged into paying. Most landlords I know only look at the credit score and don't allow potential renters to put their low score into context (i.e. "I was hit by a drunk driver and my medical bills bankrupted me!").

8. Grim Job Prospects

Most people I know don't have a poor credit rating because they are shopaholics. When the recession hit, a lot of unemployed people had to make emergency financial decisions that are still dogging them today.

There's a push to prevent employers from using credit reports against potential employees. But right now you can be denied a job due to a poor credit score. Allegedly, employers are supposed to inform you if your credit is the reason you were not hired, but this is no consolation to any job seeker who really wants and needs to work. One out of four Americans have had to go through an employer credit check, and one out of 10 are denied work because of a low credit score.

9. Stunted Growth for StartUps

Many lenders require borrowers to put up their home as collateral for a small business loan. But even getting a home equity line of credit requires a good credit rating. Like landlords, many franchisers make decisions about licensing new franchises based on credit rating.

10. Higher Interest Rates

Even if you are able to borrow money, borrowers who are considered to be higher risk pay higher interest rates.

11. Loss of Basic Utilities

Utilities regularly check credit before beginning service. If you have been late making payments -- especially utility payments in the past - you might be required to pay a deposit in order to get service.

12. Impact on Professional Licensing

The Fair Credit Reporting Act allows government agencies that regulate professions to use credit reports. This means that states can require proof of creditworthiness before issuing everything from medical licenses to doctors, to construction licenses to contractors.

13. Lack of Disposable Income

I am working furiously to pay down my home equity line of credit early, so I can achieve the peace of mind that financial independence offers, and save thousands of dollars in interest payments. In order to achieve this goal, I have cut out pretty much all varieties of elective spending. No eating out. No dry cleaning. No college classes. No new purchases beyond the absolute necessities, such as food and health care. While I spend part of every day feeling annoyed and inconvenienced by my lack of ready cash, I make an effort to realize that my situation is temporary. I will enjoy a better retirement because of the savings I am making today.

People with poor credit spend more on fees and interest and, therefore, have less money to spend on experiences that enrich their lives.

14. Increased Stress

When I was 20, I watched as a sales clerk cut up my credit card right in front of me. That experience scared me straight. I will do almost anything to avoid public shaming, including pay my bills on time. However, most people would rather struggle with the stress of debt than admit that they can't afford something.

15. Poor Quality of Life

Debt can keep you from getting an education. It can keep you in an unhealthy relationship. It can keep you from getting a better job. Debt can keep you from fulfilling your potential as a person.

Every journey starts with a single step, including the journey towards creditworthiness. Even if you can only afford to pay down an extra $10 a month on your credit card debt, that is $10 you are spending to make your future better and more financially secure. Don't you deserve a better future?

 

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How Color Choices Can Cost or Save You Money

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By Lars Peterson

Henry Ford famously said "any customer can have a car painted any color that he wants so long as it is black," and from 1914 to 1926 the company's cars did, in fact, only come in black. The great industrialist's decision to stick with black was at first a cost-cutting move -- black paint was cheaper and more durable -- but eventually it turned out to be a choice that cost him. In 1926, dwindling sales forced Ford Motor Co. to offer cars in more than black to compete with competitors.

While we aren't likely to make color decisions as big as Ford's, our choices do affect our bottom lines, often in unexpected ways. Here are a few:

Cars

According to Axalta's 2014 Global Automotive Color Popularity Report, white is the most popular automotive color in the U.S., followed by black and silver. For buyers planning to sell their cars in several years, these colors would be sound choices. Their popularity means your car will have more potential buyers.​ Owners of silver cars can expect to spend less on car washes and detailing because their cars hide dirt and blemishes so well.​

White has been the leading color in North America since 2006. A few studies have looked at the connection between car color and accident rate. A 2007 study from Monash University in Australia concluded that white is the safest color because of its visibility during daylight hours.

Finally, there is no truth to the idea that red cars attract more speeding tickets, according to Edmunds.com. Red won't cost you more in speeding tickets, although your lead foot might.

Paint

A "cool roof," which uses material to reflect sunlight and absorb less heat than a standard roof, can reduce roof temperature by as much as 50 degrees F, according to the U.S. Department of Energy. One of the easiest ways to get a cool roof over your head is to paint your roof in light, highly reflective paint. A cooler roof translates into cheaper air-conditioning costs.

With paint, real estate professionals and home designers often advise their clients to opt for neutral colors, wherever possible, to broaden the market and boost sales. Idiosyncratic colors may please owners, but renters and potential buyers may not share the enthusiasm. That burnt umber dining room should probably be repainted beige.

Dustin Edwards, a property manager and real estate agent in Long Beach, California, is a neutral hue proponent. "Using neutral colors on walls and trim of your house leaves room to be bold on colors with your accessories," he says. "Our go-to colors for interior paint are Toasted Cashew and Swiss Coffee by Behr. We steer a little darker on the color palette for the main exterior color with Fig by Behr to help the landscaping pop."

Dining Ware

In a study published in the journal Appetite in 2013, scientists found that food served on red plates suppressed consumption of popcorn and chocolate chips more than those served on blue and white plates. Another study in Appetite saw the same effect with snack foods and soft drinks served in red and blue cups.

Scientists at Cornell University's Food and Brand Lab made another discover about the effect of color on appetite. The so-called "Large Plate Mistake" describes a tendency to serve ourselves large helpings if our plates are large. Researchers found that color can play a role here, too. Low color contrast between food and plate -- green beans on a green plate, for example -- resulted in larger servings. Higher contrast -- like pasta with tomato sauce on a white plate -- led to smaller servings. Intriguingly, low contrast between dinnerware and background -- between the plate and the table or tablecloth -- had the opposite effect. The end result? Choosing the wrong plate and tablecloth colors might cost you in food dollars and calories.

Retail

Researchers have found that color can be used to enhance the "isolation effect," or our ability to recall things that stand out. For example, store sale signs are often painted red, which may lead you to believe that the color motivates purchases. Instead, it's the sign's contrast with the rest of the store that draws attention. In this case, it's not the color you choose that may be costing you, but how color encourages you to make the choice. Buyer beware.

 

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What Bill Gates Foresaw in 1999 - and How Accurate He Was

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GATES MICROSOFT
Richard Drew/APBill Gates in a contemplative mood in 1999.
By Eugene Kim

In 1999, Bill Gates wrote a book titled "Business at the Speed of Thought." In the book, Gates makes 15 bold predictions that at the time might have sounded outrageous. But as business student Markus Kirjonen pointed out on his blog, Gates' forecasts turned out to be "eerily prescient."

1. Price Comparison Sites

Gates' prediction: "Automated price comparison services will be developed, allowing people to see prices across multiple websites, making it effortless to find the cheapest product for all industries."

What we see now: You can easily search for a product on Google or Amazon and get different prices of the same product. Sites like NexTag and PriceGrabber are built for price comparisons.

2. Mobile Devices

Gates' prediction: "People will carry around small devices that allow them to constantly stay in touch and do electronic business from wherever they are. They will be able to check the news, see flights they have booked, get information from financial markets, and do just about anything else on these devices."

What we see now: Smartphones -- and now smartwatches -- do all of this.

3. Financing and Health Care Is Better Online

Gates' prediction: "People will pay their bills, take care of their finances, and communicate with their doctors over the internet."

What we see now: Tech hasn't been able to change health care all that much, but there are sites like ZocDoc that makes finding a doctor and scheduling easier. You can now borrow money online through sites like Lending Club and easily make payments through sites like PayPal and Venmo.

4. Personal Assistants and the Internet of Things

Gates' prediction: "'Personal companions' will be developed. They will connect and sync all your devices in a smart way, whether they are at home or in the office, and allow them to exchange data. The device will check your email or notifications, and present the information that you need. When you go to the store, you can tell it what recipes you want to prepare, and it will generate a list of ingredients that you need to pick up. It will inform all the devices that you use of your purchases and schedule, allowing them to automatically adjust to what you're doing."

What we see now: Google Now, a smart assistant that runs on mobile devices, is starting to head in this direction. Smart devices like Nest collect data on your daily routines and automatically adjust the house temperature. Beacons will send you store coupons based on your past purchasing habits.

5. Online Home Monitoring

Gates' prediction: "Constant video feeds of your house will become common, which inform you when somebody visits while you are not home."

What we see now: Dropcam sells home surveillance cameras that make home-monitoring easy. Google bought the company for $555 million in 2014.

6. Social Media

Gates' prediction: "Private websites for your friends and family will be common, allowing you to chat and plan for events."

What we see now: Social-media sites like Facebook and Instagram take care of this.

7. Automated Promotional Offers

Gates' prediction: "Software that knows when you've booked a trip and uses that information to suggest activities at the local destination. It suggests activities, discounts, offers, and cheaper prices for all the things that you want to take part in."

What we see now: Travel sites like Expedia and Kayak offer deals based on past purchase data. Google and Facebook ads can offer promotional ads based on the user's location and interests.

8. Live Sports Discussion Sites

Gates' prediction: "While watching a sports competition on television, services will allow you to discuss what is going on live, and enter contest where you vote on who you think will win."

What we see now: A bunch of social-media sites allow this, with Twitter being the clear leader. You can leave comments in real time on sports sites like ESPN.

9. Smart Advertising

Gates' prediction: "Devices will have smart advertising. They will know your purchasing trends, and will display advertisements that are tailored toward your preferences."

What we see now: Most online advertising services have this feature, where advertisers can target users based on click history, personal interest, purchasing patterns.

10. Links to Sites During Live TV

Gates' prediction: "Television broadcast will include links to relevant websites and content that complement what you are watching."

What we see now: Almost every live sports game has ads featuring links to a specific site. The ads also show the teams' Twitter handles in some cases.

11. Online Discussion Boards

Gates' prediction: "Residents of cities and countries will be able to have internet-based discussions concerning issues that affect them, such as local politics, city planning, or safety."

What we see now: Most news sites have comment sections where people can have live discussions, while many sites have forums where people can ask and respond to certain questions. Twitter and Facebook played roles in political revolutions in Libya, Egypt, and Tunisia.

12. Interest- Based Sites

Gates' prediction: "Online communities will not be influenced by your location, but rather, your interest."

What we see now: All kinds of news sites and online communities focus on single topics. Many news sites expand to separate verticals, offering more in-depth coverage on a given topic.

13. Project Management Software

Gates' prediction: "Project managers looking to put a team together will be able to go online, describe the project, and receive recommendations for available people who would fit their requirements."

What we see now: Tons of workflow software is revolutionizing how you recruit, form teams and assign work to others.

14. Online Recruiting

Gates' prediction: "Similarly, people looking for work will be able to find employment opportunities online by declaring their interest, needs, and specialized skills."

What we see now: Sites like LinkedIn allow users to upload résumés and find jobs based on individual interest and needs. Recruiters can search based on their specialized skills.

15. Business Community Software

Gates' prediction: "Companies will be able to bid on jobs, whether they are looking for a construction project, a movie production, or an advertising campaign. This will be efficient for both big companies that want to outsource work that they don't usually face, businesses looking for new clients, and corporations that don't have a go-to provider for the said service."

What we see now: Many enterprise softwares are focused on the social aspect, so users can reach out to other businesses and start a conversation that could lead to bigger projects within their apps.

 

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