Digital Savings 101

 

Did you know that 96.8 million adults will use digital coupons this year? Are you one of them? Normally I am not but my mom recently turned me on to RetailMeNot.com. If I'm not shopping on Amazon, I'll always search the store on Retail Me Not prior to purchasing to see if they have a valid promo code to save a little extra.

Wondering where to look? The Internet can be a treasure trove when it comes to getting the most for your money. Thanks to Family Circle magazine, Denise Winston, author of Money Starts Here! Your Practical Guide to Survive and Thrive in Any Economy, and money-saving expert Andrea Woroch, these recommended sites are the best to bookmark for bargains on food, fun and more.

CouponBlender.com
At this gateway to savings, you'll see dozens of deals at a glance from the top couponing destinations (the homepage is constantly updated with a slew of news feeds). Each of the featured sites includes a range of shopping categories, so you can snag coupons for groceries as well as your teen's favorite mall store from the same page.

PriceGrabber.com
Got your eye on a leather handbag or that space-saving coffeemaker? Find product details, where-to-buy info and current sales prices for everything on your wish list and shave costs by an average of 20% to 25% on clothing, appliances, electronics and home goods. Set up an alert so you'll be notified when a certain item hits the price you've named.

MyGroceryDeals.com
Pocket some dough while filling your food cart. Make a shopping list and then search locally for those products with the "Quick Shop" option, which can save you up to 50% by culling rock-bottom prices from various stores.

Travelzoo.com
If you need some inspiration for a budget getaway, Travelzoo's e-newsletter, This Week's Top 20, gleans great deals on flights, hotels, trip packages and cruises with the help of more than 2,000 travel and entertainment companies. All recommendations have been expert-tested to ensure they're first-rate.

Restaurant.com
Buy certificates at reduced prices to more than 18,000 restaurants nationwide and you can enjoy more family dinners out (and date nights too) without groaning over the tab. Search by name, location or cuisine to find exactly what you're craving.

GiftCardGranny.com
We've all been given gift cards we'll never use. Sell them to Granny and then buy discounted ones (most are more than 10% cheaper than current value) for the stores you love. Sign up to be alerted when a card at one of your preferred vendors becomes available.

Dealery.com
No time to skim local daily deal sites? No problem. Let a newsletter do the work. Create one by choosing your favorite sites from the many offered here (LivingSocial, Groupon and Woot, for example) and you'll be sent a list of bargains. Discounts are available in more than 200 cities.

RetailMeNot.com
It's the place to go for printable coupons and online promotional codes. On average you can save about $20 per transaction with discounts for chains like Macy's and Target as well as local boutiques.

MrFreeStuff.com
Subscribers receive information on samples and giveaway contests in addition to deals and coupons several times a week. What's not to love?

Did you know??

...that certain colors influence your spending?

Thanks to Real Simple magazine, I came across this article that I thought was too good not to share. Marketing experts agree that people subconsciously associate specific social or cultural messages with color. Next time you walk through the mall, look at the rainbow of colors on signs, labels, doors, and shopping bags. These colors are usually always strategically placed in an effort to get you to loosen your purse strings.

Below explains how 10 different shades affect your purchasing habits;

BLACK: The signature color of sophistication (hello little black dress), it dominates high-end makeup packaging and can even make inexpensive blushes and lipsticks seem more upscale. Insert: MAC cosmetics.

BLUE: Most people like blue. No wonder it connotes trust and dependability and is a favorite logo color for financial institutions seeking to make people feel more secure. Insert: My husband's company, Deloitte & Touche. Blue can improve customer loyalty too. Patrons are 15 percent more likely to return to stores with blue color schemes than to those with orange color schemes, according to a 2003 study published in the Journal of Business Research.

BURGUNDY: This color reminds us of all things rich and refined (think red wine), so don't be surprised if the Merlot duvet cover you covet costs more than a white one in a similar style. Its prismatic cousin, brown, has similar connotations of luxury.

GREEN: Retailers often employ this color to attract eco-minded clients. But remember: just because an item is green doesn't mean it's environmentally friendly. INSERT: Whole Foods.

ORANGE: The color is associated with fairness and affordability which is why you'll find it at stores offering good value. Insert: Home Depot and Payless Shoes.

PINK: This sweet color - in particular a shade close to bubble gum - has calming effects, according to research published in the Journal of Orthomolecular Psychiatry. Scientists found that seeing pink slows people's endocrine systems and tranquilized tense muscles. Wondering how that might influence your wallet? Feeling relaxed may make it less painful to part with cash. Insert: Victoria Secret.

RED: Although plenty of shops embrace this color (Target, TJMaxx) and still find financial success, market experts warn that, just like a stop sign, a red placard can make consumers hit the brakes. It serves as an alarm, triggering a more careful consideration of our outlays.

VIOLET: Purple reigns in the beauty industry, especially in the category or anti-aging products. When people see it, they think of royalty. Consequently, a purple box may help us persuade us that the product has special properties and is worth a princely sum. Insert: Alterna's Anti-Aging line at Sephora.

WHITE: In branding, white suggests simplicity and purity. Note: 75 percent of top skin-care brands are packaged in white. Insert: Oil of Olay to name one. It also stands for modernity and honesty, which may be why Apple swears by it.

YELLOW: A mainstay at fast food restaurants, yellow evokes energy and increases appetite, perhaps explaining why your stomach may start to growl when you pass those golden arches.

Interesting, eh? I thought so.

Shop Smarter: Avoid this Retail Trick

 

While some of us have our shopping completely done, others haven't even started so here's a quick tip to avoid spending more...

Retail stores have a clever way to get you to spend more: "the decoy effect." Behavioral research conducted by Dan Ariely, Ph.D of Duke University, has shown that when customers were given a choice between two products, one of which is priced lower and is lower quality (say an MP3 Player that holds fewer songs), they'll often choose the cheaper one.

BUT when a third (decoy) item is introduced at an even higher price, shoppers are more likely to opt for the mid-priced-one. Meaning - adding another product nudges shoppers up the price scale instead of making them stick with the bargain buy.

Bottom line: Think carefully when you see a display of products at varied prices, and hold steady at the price you can afford.

Must Have: Quarter Dispenser

A product I can't live without: The Quarter Dispenser.

I love it so much I gave it as a summer "Favorites" gift at our most recent girl get-together. For $2.99, you can have a stash of quarters handy and organized.

Perfect for when you pull up to the beach and you unexpectedly have to pay a parking meter. Great for toll roads on those summertime road trips. Camping. Laundromats. A spontaneous stop for ice cream when you don't have your wallet. Also a great gift for a recent grad going off to college for laundry and vending machines.

Just stock with quarters and throw it in your center console or glove compartment of your car so you're never inconvenienced again. Or buy two and put one in your travel bag or purse. Truly a must have. Available at The Container Store

If you do one thing this week...

Use less - of EVERYTHING.

If you’re looking to save money, there are some obvious solutions; you might want to track your spending, avoid impulse buys or try going cash-only. But have you ever thought that you might be throwing savings down the drain, literally? Do you know how much you really need of things of consumable goods like like shampoo and dish soap?

Sierra Black of Get Rich Slowly recommends using half of what you normally would. The idea is to reduce half the amount of these things you use by doling out smaller portions. Normally use a quarter-size dollop of shampoo? Try cutting back to a dime.

There’s no need to stop at half, actually. You can keep scaling back your usage gradually until you hit a point where you actually don’t have enough, and then creep back up to the last place it felt good. Maybe that dime-size drop of shampoo isn’t enough for your hair, but a nickel-size portion gets the job done nicely.

This approach  - he calls the 50% solution - works. Stock up at Costco and it will take you forever to run out. Try this next time you come home from Costco - Pour your bulk product into smaller containers — at half strength. For example, fill the soap container next to the kitchen sink with half water and half soap. You'll use the same amount when washing the dishes, but go through the soap at half the rate.

In addition to basic consumables, you can apply the 50% solution to:

• Shopping for clothes.  Ask yourself - Do I need two of these? Stop buying multiples of the same things! (A problem of mine.)


• Going out to bars and restaurants. This is often another trouble spot for me, since I love going out. Scaling back that type of social activity by half lets me stay close to the people I care about without busting my budget.


• Over the counter medications. Take one instead of two. Or two instead of four. I wouldn’t suggest trying this with your prescription meds, but for simple over-the-counter stuff like headache medicine, I’ve found that a half dose is often perfectly effective.


• Groceries. Kids will eat a near infinite amount of fresh fruit, pretzels, and yogurt. How much is enough? The only way to tell is to gradually buy less until you run out and they complain. Cut your grocery budget in half by combining this with other grocery savings hacks.  This way too you won't waste any food. 


• Therapeutic appointments. Scale back on wellness appointments from twice a week to only twice a month. This saves time and money. As with all these measures though, the key is to get to enough. Cutting back too much on these appointments (massage, physical therapy, chiropractor) could cause pain and interfere with life. The balancing act is to be sure you get what you need, without over-committing resources that could be better used elsewhere.

Basically, try tapering off anything you routinely spend money on where you have some control over the amount you use. In general, this approach will save you money. But the more important thing isn’t how you save the money, it’s what you do with it. A dollar saved is only really saved if you don’t immediately spend it on something else. The savings from these gradual reductions in consumption are often harder to see than the clear figures one gets from canceling a subscription and saving the monthly fee.

I love the 50% solution because it acts as a checkpoint for purchases. Do I really need this? Do I need all of this? Could I make do with less? Being in the habit of asking myself those questions has saved me a lot more money than just cutting my shampoo with water does. It helps me stay in a frugal mindset when I’m shopping. That’s not easy to do. Stores are designed to push you towards impulse buys, and being armed with mental money hacks helps me fight back against their subtle (and not so subtle) marketing.

I also love this approach because it helps me find balance. It’s not about committing to a life of extreme austerity, it’s about avoiding waste. I often think of the curve at the beginning of Your Money or Your Life that shows a person’s happiness increasing as they have the resources to supply their basic needs, and then some comforts and finally a few luxuries. Beyond that magic point of "enough," the curve falls off as more and more luxuries are piled on but fail to satisfy. The 50-percent solution helps me know what my personal "enough" is. What’s enough soap? Enough entertainment? Enough snack food?

Scaling back incrementally lets me find those magic points on the curve and stay close to them. I get to have enough to be happy, without wasting resources like money, time and energy on acquiring more of something than I need or want.

Now it's your turn. Give it a try.

Time Saving Money Apps

If taking charge of your finances is one of your New Year's resolutions, then this post is for you. Anymore it's naive to think you have to stand in line at the bank or be near a computer to take care of your money. It's 2012 people - managing your money from a mobile device is legit and has many advantages. In fact - Carl Scheible, managing director of PayPal UK, claims that by 2016 you'll be able to leave your wallet at home and use your mobile as the 21st century digital wallet. Crazy huh? Seems alittle Jetson'ish but I guess it's the sign of our digital times.

So if you're pressed for time, want to feel more organized with your accounts and/or feel like you need to become more current with how you do your finances, give these mobile apps a try;



Pocket Money -- Allows you to track unlimited accounts (checking, savings, etc.), make deposits and transfers, and much more. Sync with certain desktop expense programs for easy data tranmission. ($4.99, iPhone & Android).





Pageonce -- Provides a one-stop place to view all of your accouts (bank, credit card, frequent flier, 401(k), IRA, etc.). You can set it up to recieve bill due date reminders too. (Free, iPhone, Android & Blackberry).






PayPal -- Lets you send cash from any of your linked accounts on the go. The new version allows you to take a photo of a check you've recieved to auto-deposit into your PayPal account. (Free, iPhone, Android & Blackberry).





Expensify -- Makes expense reports a snap. Import charges from a credit card or bank accout, and when you take a picture of receipts they automatically become part of the report. (Most features Free, iPhone, Android & Blackberry).

If you do ONE thing this week...

...FIND A WAY TO SAVE $25.

Now I know money is tight as it is but I can almost guarantee that you're spending money here and there that you don't need to. Brew your own pot of coffee at home. Forego the 'Value Meal' that sets you back $6.00 and pack your own lunch. Paint your own nails instead of going to the nail salon. (That's $20 right there!) Buy a bottle of wine from the grocery store instead of hitting up your after work Happy Hour spot. Meet your girlfriend for a walk instead of coffee. Use up the beauty products in your cabinet before rushing out to buy brand new. Buy generic, not name-brand. Don't give into buying the overpriced goodies at the concession stands at sporting events.

If you can get in the habit of doing this on a regular basis, you'll be amazed at how much the un-necessary items add up. And how much more money you'll have to spend on things you do need! If you're like me and need to visibly see your work pay off, put the money in a piggy bank and watch it grow. This shouldn't be too tough - it's $5 bucks Monday thru Friday. If you can do this, you'll save an extra $100 per month. Doesn't seem like much but it all adds up!

SAVE it or SHRED it?

I was recently asked by a friend of mine what we do with old bills. I can't take credit for Dave's 3-ringer binder system but it's very effective in keeping paper organized. Unfortunately I don't have time right now to go into detail on how this system works but I think with any organizational project it's important to weed out the bad before you do anything good. The same principle applies when packing to move - don't waste time packing stuff that you know doesn't have a place in the new house. Toss (or donate) beforehand.

With that being said, any good organizational project requires time to figure out if you really need it. So the big question is; what do you save and what do you shred?

Keep for 1 month:
Credit card receipts
Sales receipts for minor purchases
Withdrawal and deposit slips - Toss after you have checked them against your monthly statement

Keep for 1 year:
Paycheck stubs
Monthly bank, credit card, mutual fund, brokerage and retirement account statements

Keep for 7 years:
Taxes
W-2's, 1099s and other tax return items (Checks to back-up tax returns)
Year end credit card statements, brokerage and mutual fund summaries

Keep indefinitely:

Receipts for major purchases
Real estate and residence records
Wills and trusts

Keep in safe deposit box:
Birth and death certificates
Marriage licenses
Insurance policies
Divorce papers

Target Addict: MOBILE COUPONS

Have you signed up to receive Mobile Coupons from Target yet? If not, what are you waiting for? Thanks to OC Deal Mama I just learned about this convenient new feature. Although I'm all about saving a buck, I'm not a "coupon-cutter" so this is right up my alley.

These are Target Store coupons (that can be stacked with a manufacturer coupon on the same item for even greater savings) sent directly to your cell phone, via text message. If you would like to receive Target mobile coupons, text OFFERS to 827438 (Target), or sign up online. These are so easy to use. Simply pull the offer up on your phone at checkout, and have the cashier scan the bar code. That’s it! Request yours today!

SAVE BIG: Summer Travel

Everyone loves alittle time away for some R&R but with this tough economy, it's hard to justify shelling out hard earned cash for a vacay. But if you're itching to get away and want to make it feasible to do within your budget, try these 9 smart strategies for a less costly summer vacation.

Lift off from a smaller airport: You can reap significant savings if you’re willing to put up with a bit of inconvenience. Often you can snag a better deal on airline tickets if you bypass the majors and fly out of a regional airport instead. For example, at press time, Real Simple magazine found that it was $50 cheaper to fly to New York City from the Akron-Canton Airport than from the Cleveland hub. Use the search feature on the easy-to-navigate Kayak.com to compare airfares near you. But bear in mind: Given the high, and rising, prices at the pump, the cost of driving to a more remote airport could wipe out some of your savings. Go to fuelcostcalculator.com, run by AAA, to estimate your outlay on gasoline.

Check bags for $0: Baggage fees have become a massive profit center for airlines: In 2010 the industry raked in more than $2.5 billion in these charges. But two airlines still let you check bags for free: JetBlue Airways allows one bag per passenger; Southwest Airlines permits two. Fly on them whenever possible and you’ll save $50 or more round-trip per passenger. If those airlines don’t suit your plans, sign up for a credit card with travel perks: Delta Airlines waives one baggage fee per flight for customers who use its American Express SkyMiles credit card, and Continental Airlines allows two free checked bags per traveler when the flight is booked on its Chase Presidential Plus card.
Find hidden hotel freebies: Room prices are down from their peak - averaging $99 a night as of this past February, compared with a high of $109 a night in 2008, according to the data firm STR. But à la carte fees, for everything from Internet access (about $10 to $15 daily) to parking (about $20 a night or more), can cause sticker shock when it’s time to pay the bill. Go to priceline.com/freebies to search for hotels that provide guests with complimentary breakfast, parking, or credits toward spa treatments or rounds of golf. And check out wififreespot.com, which lists hotel chains, such as Homewood Suites by Hilton and Hyatt Place, that offer Wi-Fi on the house.

Cruise from a port closer to home: Until a few years ago, many vacationers had to fly to Miami or Orlando to hop on a cruise. No longer: Several companies, including Norwegian Cruise Line and Royal Caribbean International, now set sail from ports located near large population centers around the country, such as New York City; Seattle; Galveston, Texas; Charleston, South Carolina; and Baltimore. And if you live near one of those locations, that can save you a bundle. Case in point: As of mid-April, taking a Carnival Cruise Lines trip directly from Charleston to the Bahamas cost $569 less than flying from Charleston to Miami, staying one night in a hotel, and departing the next day. The only drawback? It takes longer for the ship to reach the destination, so you spend more time on the boat.
Get the cheapest possible set of wheels: Prices for loaner vehicles fluctuate constantly, but not many travelers take the time to recheck rates after booking, even though there’s no fee to cancel or change a reservation with any major car-rental company. To make this task easier, book with autoslash.com, a site that continues to check prices (on both domestic and foreign reservations) until your pickup date. If it finds a lower rate, you are automatically re-booked for free, and the new confirmation details are sent to your in-box. For a recent week-long car rental in Los Angeles that originally cost $227, AutoSlash re-booked the reservation twice, reducing the price by $19. It also offered a free upgrade from a compact to a mid-size car.

Use Bing's Price Predictor: Who hasn’t read about a major fare sale the day after putting down a nonrefundable deposit on a reservation? (Ouch.) Bing.com/travel helps you decide when to pull the trigger. After you put in your desired flight itinerary, the site tells you whether to buy your ticket now or to wait, based on historical fare data and price trends. (The site claims to have about a 75% accuracy rate, which independent experts don’t dispute.) You can use Bing’s “rate indicator” to shop for hotel rooms, too. It tells you whether a current price is a “deal,” an “average rate,” or “not a deal.”

Follow Twitter sales: Twitter has become the place for travel companies to announce sales that seem too good to be true—but aren’t. Followers get first dibs on fare cuts before they go viral on the Web. The specials are often for last-minute getaways. A recent one advertised tickets on Spirit Airlines (@SpiritAirlines) from Washington, D.C., to Fort Lauderdale, Florida, for just $54 each way. JetBlue Airways (@JetBlueCheeps) also offers noteworthy deals. The boutique-hotel specialist Quikbook (@Quikbook) is another good source, informing followers of discounts of up to 40% at independent hotels in major U.S. cities, such as the Hollywood Roosevelt Hotel in Los Angeles and Chicago’s Peninsula Hotel.
Look for overseas discount carriers: Flights by low-cost foreign airlines (such as EasyJet, based in the United Kingdom) don’t show up on Expedia.com or Orbitz.com. But you can still take advantage of their rock-bottom prices: Book a ticket to a hub like Paris or Rome on a major carrier, then use Skyscanner.com or Momondo.com to reserve seats on a low-fare airline if you’re headed to a smaller city, like Copenhagen or Nice. These tickets can be ridiculously cheap, sometimes less than $20 one way, according to Pauline Frommer, the creator of the Pauline Frommer Guides travel books.

Don't get dinged by credit card fees: Many banks add a 3% foreign-transaction surcharge to the total cost of your purchase when you use a credit card abroad. But you can find ways around this charge by signing up for a credit card that waives the fee. Capital One does not assess the fee on any of its cards, and American Express has dropped the fee on its Platinum card. Citi has followed suit on its Thank You Premier and Prestige lines, and Chase waives it on cards issued with British Airways, Hyatt, Continental Airlines, and United Airlines, among others. You might also avoid ATM charges by calling your bank before you travel and asking if it has any financial partners at your destination.

Happy Travels!

Raise a MONEY smart kid

Last week I did a post on children and allowance. It was such a hit that I thought I'd follow it up with some tips on how to raise a money smart kid.

If the idea of schooling your child in personal finance seems overwhelming, take heart. Instilling money literacy doesn't require a lot of planning or knowledge. Focus on the basics, like comparison shopping and the importance of planning and saving. When your child masters these concepts, they'll know more than many adults. In fact, according to a 2010 survey by T. Rowe Price investment company, fewer than one in five parents give themselves top grade for their understanding of fundamental savings and investment principles. The key is to start young and keep your talks kid-friendly.

As parents, we have to teach our kids so many things, and as they get older, we realize a lot of what they learn, we don’t even realize we’re teaching them… they’re learning by watching us! If we have good habits, then that’s great, but if we don’t have the best habits, we could be teaching them things we really don’t want to be. An example? If we’re trying to teach them about exercise and nutrition, but they never see us exercise, and all we eat is junk food, our kids are going to pay more attention to what they see us doing than what we tell them to do. The same can be said for financial habits; if our kids see us making smart money decisions, they’ll learn those good habits, too.

Below are some tips on how to teach your children the basics of money to give them a head start in money management and the skills needed to succeed in life. These are all things we can be explaining to them as we do them!

ATM'S DON'T GIVE YOU MONEY: Nowadays kids don't think money grows on trees; they think it comes out of ATMs. It's so easy for a child to assume that the ATM shells out money for free. As you drive up to the ATM, this is a perfect opportunity to explain to your child that these machines are like piggy banks. They hold your money and when you take some out, you have less for next time. How do you get more? By earning it.

CREDIT CARDS AREN'T THE ONLY WAY: Grasping the idea of a credit card for a child is tough. It basically looks (and feels) like "free" money. If your kids see you using credit cards for everything, they’ll think it’s normal and acceptable to do the same themselves. If you’re using a credit card to save points for a reward, explain that to them, and let them see you writing a check to pay the credit card company. Also be sure to show them the statement, so they can see the interest, and how it adds up to real dollars and cents.

CASH ACTUALLY STILL WORK: If you never use cash, ever, then your kids might think it’s not a good idea, and sometimes, it’s the best way to pay. Let them see you use cash, and better yet, let THEM pay for things with cash!

WHAT'S A BUDGET: Most of us didn’t see our parents paying bills, or balancing their checkbooks, so we had to learn about these things in an abstract way in an economics class, or worse, the hard way by doing it ourselves. Let your kids see you paying bills, and explain to them what you’re doing, and why. If you have a budget, let them see that, too, and see how paying the utility bill and cell phone bill fit into it.

GOING TO WORK: If your kids don’t understand why you go to work (to get paid), they might not make that connection on their own. If it’s possible, when they ask for a big-ticket item, show them how many hours you have to work to pay for it, and figure out how many days of work that amounts to.

CREDIT & DEBIT ARE DIFFERENT: In item 2, I said it was a bad idea to use credit cards all the time. If you use a debit card for most purchases, explain the difference between that and a credit card. Explain that it instantly comes out of your checking account, and let them see you enter that amount into your checkbook.

PRIORITIES: If your children don’t see you pay bills, or know how a monthly budget works, they might not understand financial priorities, like paying mortgage or rent first, then utilities, then car payment, then groceries, then savings, then fun money. This is a lesson they can learn early, and the earlier they learn it, the more natural it will seem when they need to start prioritizing their own spending.

IT'S OKAY TO WAIT: If you never let your children see you NOT purchase an item you want, they might get the idea that you, and they, can always get what they want, when they want, without having to wait for a sale, or for you or them to save the money. If they ask for an item, help them save for it, and let them know when they have the money for it. More Matchbox cars?? Sure, once you have enough saved… it won’t kill you to wait.

KEEP YOUR MONEY FOR SPECIAL THINGS: The goal is to help your child develop his own saving goals. Explain saving along these lines - "Every month we set aside money for stuff we'd like to have or do in the future. Eventually we'll be able to have enough for something special." Avoid steering toward something longterm like college. At age 6, he can't be expected to wait longer than a month to get what he wants.

BORROWING COSTS MONEY; SAVING EARNS IT: Compare a loan to taking out a book at the library and then returning it. But make the distinction that when you borrow money you have to pay what you owe plus an additional amount. That's why you should only take out a loan when you're buying that you need and can't afford to pay for all at once, like a house.

All of these lessons about money are so important for our kids to learn, and the best way for them to learn them is to see you doing them yourself! Which of these money lessons have you taught your kids? Are there others you think are important, too? Please let me know!

The answers on ALLOWANCE

I was recently in a convo about giving your child an allowance. Although I am years away from giving Chase any money besides the extra chump change I find at the bottom of my purse, it never hurts to start thinking about what I would do when the time comes. I always find it beneficial to talk with other veteran moms to see what worked for them to get ideas and then it makes for a great dinner conversation for Dave and I.

Ultimately you are going to do what makes sense (no pun intended) for you and your family but below are helpful answers and tips to some of the questions you might be having if you're contemplating giving your child an allowance. According to Janet Bodnar, Kiplinger’s Personal Finance executive editor, and author of four books on kids and money including, Dollars & Sense for Kids, "an allowance is the best money management tool that you can give your kids." She claims that kids will spend unlimited amounts of money as long as it’s yours, but as soon as it’s their money that’s on the line, it’s a whole new ball game.

So when should you start? For an allowance to succeed in teaching kids how to spend responsibly most experts suggest that parents should establish a weekly payout usually around six years of age or first grade. Any younger and they don’t really have a sense of what money actually is and they can't think in abstract terms. It’s not until they reach the first grade that they start to learn about money — that four quarters equals a dollar, for instance — that they can begin to understand the concept and figure out how much that dollar will actually buy them.

Next big question - How much do you give each child? Every family is different and you should do what feels comfortable, but as a guide the experts say an allowance about half your child’s age is appropriate. For example; A six year old would receive $3 a week; a ten year old gets $5. If that much money raises your eyebrows, Bodnar insists that not enough actually defeats the purpose of an allowance. “If it’s too little, a child can’t make any real decisions on how to spend it,” she says. And spending it is how a child learns how to manage it.

Once a dollar amount is in place and what expenses are expected to come out of it (if any), parents should essentially back off and set the kids free, allowing them to make their own discoveries, and many times, mistakes. According to Paul Lermitte, a registered financial planner and author of Making Allowance: A Dollars-and-Sense Guide to Teaching Kids about Money, you want them to learn to become savvy consumers, and one way is through action. Experts all agree that unless your kids want to purchase something that you find objectionable (like a violent video game) or unsafe (like an air riffle) butt out. Lermitte believes you have to let them make choices.

Apparently, when it comes to money management, failure is a good thing — it teaches the kids to be smarter consumers the next time around. The experts do, however, say that it’s perfectly fine to give an opinion on the impending purchase — after all it’s your responsibility as a parent to put in your two cents — but the decision to buy or not to buy should ultimately be up to your child. According to Lermitte, it’s all about confidence building. “You’re teaching them to make good decisions by making some bad decisions that really don’t cost a lot of money,” he explains.

Next question - Should you tie it to chores? No. Think about it; do you want your child expecting to get paid for every task you ask them to do?? Assign them household duties at age 2 or 3 and expand them as they get older. If they fail to do them, give them a consequence tied to the action (such as taking away his toys if he doesn't pick them up).

In an era of “plastic money,” designer clothes for babies, and $200 gym shoes, it’s more important than ever to instill good money values in our kids — to teach them to use credit responsibly, look carefully at each and every purchase, and to save for their futures. After reading this, I can't wait for the day when my kids cry, “Mom, can we get that?” I'll have the perfect answer. “Sure. Save your allowance.”

SAVVY SAVINGS: Kid's Clothing

So I'm walking through Target the other day and as I'm trying to maneuver around two (clueless) moms lollygagging around in their designer heels pushing their high-end strollers, I hear the one say to the other as she held up an adorable polka dot dress;

"Tell me this isn't cute?"
"Oh my gosh, suuu-per cute!"
"See, Target has cute stuff riiiiiight??"

I'm thinking...Duh, where have you been?? Continuing on...

"For sure. BUT it's Target ya know!?"
"I know. So get this - I found the most fabulous deal the other day for Kylie. A pink zip up Juicy jacket for $70! A-mazing!!"

Time-out...$70 for one kid's item?? I don't care if it's Juicy Couture, that insane. And downright ridiculous to drop that much cash on clothing that kids are going to wear a handful of times and outgrow before you know it. C'mon. The topic of kid's clothing is such a hot button for me. Maybe money isn't an issue for those two particular women but I can almost guarantee that those wives have husbands who are out busting their butts in a down economy and sadly their wives are out spending money they don't have and putting them deeper and deeper in debt paying only the minimum balance on their credit cards. All for Kylie to look cute in her $70 zip hood that nobody even notices.

Don't get me wrong, I'm all about buying quality kid's clothing that will last. But this is an area where when money is tight, you should be saving. Below are 10 creative cost-cutting techniques to save more and spend less on kid's clothing according to Allyou.com and my own personal tidbits. Some of the tips can apply to your own personal shopping as well.

1. Go on deal days: Target usually slashes kids’ clothing prices on Mondays; Old Navy and Gap often mark down items midweek. Keep in mind that most major retailers offer price adjustments, so ask for one if an item goes on sale soon after you purchased it.

2. Be counter-intuitive: By shopping the sales at the end of each season for the following year, you’ll pay a fraction of the full retail price.

3. Shop stores like TJ Maxx or Marshalls. Their prices for name brand clothing are unbeatable. Last week to kill time before picking up Dave at airport I snagged up $130 worth of Ralph Lauren polo shirts for Chase and Lance. Had I paid full price at Nordstrom for these 10 polo shirts, I would have paid $293. Talk about a deal yo!

4. Thrift and consignment stores usually allow you to sell your own kids’ clothes for credit at the store, which can reduce or eliminate your bill entirely. Buying on Craigslist and Ebay will also save you $$$.

5. Shop the sales: For even deeper discounts at consignment stores, keep up with current promotions near you at consignmentmommies.com.

6. Trade outgrown clothes for new ones at thredup.com, kizoodle.com, zwaggle.com and peaceloveswap.com. Thredup is personally my favorite. It's website is easy to search and the concept is brilliant. If only they posted pictures of the clothes.

7. Shop alone: Duh - no brainer! Along with saving you your sanity, it will curb impulse buys if you leave the kiddos at home.

8. Buy clothes that will last: To get the most bang for your buck, look for items in classic colors and patterns that are likely to match your child’s current wardrobe. Avoid trendy pieces that will look dated before they wear out.

9. Don’t overbuy: How many times have you cleaned out your daughter’s bulging dresser only to find clothes she never wore before she outgrew them? Weed out clothing regularly to keep the selection easily accessible, and once your kids have enough clothes in their size, STOP buying.

10. Join a local Moms Club: These are a great resource for connecting with other moms in your area for advice, child care and play groups, and to buy, sell or swap kids’ items.

TIME & MONEY saving gadget

Ever wish you could compare an in-store item price with an online one to see which is cheaper? Or better yet - interested in what other's are saying about the product before purchasing? I know I have. Just last week in fact. After buying far too many toys that never get played with or fall apart, I've learned my lesson; check the reviews of what other mom's are saying before buying. With these fantastic new barcode scanning apps, I was able to do just that!! Talk about the perfect shopping assistant!

Barcode scanning apps have revolutionized the way people shop. They have made in-store price comparison bigger than ever. Apps like RedLaser, Shopsavvy, Stripeylines, Sccopes and Thefind are all shopping companions for bargain and info hungry shoppers who want to ensure they are getting the best deal. These apps help users to search and compare products and prices, create product wishlists and favorites, listen to scanned CDs through iTunes and instantly download, purchase directly, or post products and comments to Facebook, Twitter and eBay.


All you have to do is download the app on your phone for FREE and then the next time you're in the store, just scan the item with the barcode reader to compare pricing or to check product and customer reviews. You can also search by product code, name, brand, or browse by category. If the online-price is better than the store price you can click and buy right then and there. Some even allow you to scan a DVD and listen to the song straight from i-Tunes when trying to decide if you want to buy or not. Pure. Genius.

WEEKEND WARRIOR CHALLENGE: DIY??

It's the new year and possibly a new you. Maybe a goal of yours is to become more handy. Become more ambitious. Maybe you want to save money around the house by trying to figure things out before rushing to call for help. My husband has always been a "Do It Yourself" type of guy. D.I.Y. - get it now? But he does acknowledge that there are just some things that just don't make financial sense to do them yourself. In addition to the cost of materials, you need to factor in your time (and frustration) and weigh out if it's really worth it to DIY.

With the new year comes new projects. Before you decide to tackle them yourself or hire someone to save the day, you need to check out this awesome website - http://www.diyornot.com/. This free web tool allows you to search for a project and find out the relative cost (specific to your zip code) and the time it would take to do it yourself compared to hiring a professional. The site's database also provides information for more than 300 home projects, like repainting cabinets and installing a dimmer switch. And if offers basics instructions and a list of the supplies you'll need if you decide to tackle the task on your own.

For your WEEKEND WARRIOR CHALLENGE, I encourage you to list out all your potential home projects and analyze which projects are worth nagging your husband to complete and which warrant hiring a professional.

Can you afford a furry friend?

Is your significant other or child begging for a pet this Christmas? Are you torn on what to do? You've got a few days left before Christmas to decide what you should do. Of course you want to surprise them and make their wishes come true but the question is - can you afford one?

The amount of money we spend on our pets has nearly doubled in the past 10 years, rising to more than $38 billion, according to the American Pet Products Manufacturers Association. That figure dwarfs the toy business ($23 billion) and candy industry ($24 billion). It’s not just the purchase price of a pet that costs money; it’s the feeding, grooming, vet bills, and boarding that can really add up to a lot. Before you bring that lovable critter home for the holidays, there are a few things you should consider. The last thing you want to do is fall in love with something you realistically can't afford. The following is a list of expected annual costs for your new member of the family thanks to the non-profit adoption organization, Pawprints and Purrs, Inc.

Small Dogs: They may be pocket sized and lovable but they're no small cost. While crate costs and spay/neuter fees are lessened, a smaller dog, like a Yorkshire Terrier and Pugs, can still cost nearly $800 annually.

Medium Dogs: Coming in a close second, medium-sized dogs, like Beagles and Cocker Spaniels, are nearly the most costly pets, fetching up to $1,115 annually.

Large Dogs: Big dogs like Golden Retrievers, Labrabors, and Dalmatians may have a special place in your heart but get ready to make room for them in your wallet. Obvious expenses like food and crates for large dogs are high and first year total expenses can reach $1,500.

Cats: Cats can provide warmth and companionship with considerably fewer demands than their canine counterparts. However, every furball comes with a price tag. Total first year costs for a cat can reach upwards of $640.

Rabbits: Rabbits may require even less attention than felines but costs for a floppy eared friend can exceed $800 for the first year. Where a Rabbit may not require walking, litter costs for your pet can more than double that of cats reaching a total of $885.

Guinea Pigs: Though many vets do NOT spay/neuter Guinea Pigs, the procedure is highly recommended for the many health benefits of spaying/neutering. The litter costs for these Guinea Pigs are as high as for that of a rabbit. Costs for a Guinea Pig can exceed $745 in the first year.

Gerbils and Hamsters: Though many vets do NOT spay/neuter Gerbils and Hamsters, the procedure is highly recommended for the many health benefits of spaying/neutering. Gerbils and Hamsters qualify as small mammals and incur the least in costs for quadrapeds. There are other costs to consider, such as cages and litter, which can bring the tab up to $500 in the first year.

Birds: Small birds such as Parakeets or the cheapest pets to keep but that doesn't mean free. One must provide toys and treats and a cage for their feathered friends. That can cost up to $255 in the first year.

Fish: Fish have their own costs and concerns. Tanks, trinkets and playgrounds for your fish can raise costs up to $185.

Obviously, smaller is cheaper. The difference between a large dog and a small one is $720 per year - and that's a lot of kibble. Now, let's just look at the dogs and cats. Let's say each of these pets lives 15 years. Here's the lifetime costs:

Cat - $9,600
Small dog - $11,700
Medium dog - $16,725
Large dog - $22,500

Promise me this - if you do get a pet, don't complain that you can't afford college for your kid! You know your budget. And you know your tolerance. Sure they are cute and cuddly but besides the cost, they are a lot of work. Best of luck in making your decision.

Etiquette: HOLIDAY TIPPING

Last week the topic of "holiday tipping" was suggested by a reader (Thanks Janice, I love suggestions!). My first reaction was - is holiday tipping different than everyday tipping? As I got to doing my research I quickly learned that holiday tipping is a big deal. Hmmm. Where have I been?? I personally believe you should tip because someone exceeded your expectations and provided outstanding service, no matter what time of the year.

Some believe that during the holidays you should absolutely, no question about it, tip more. I do agree that the holidays are a time to say an extra special thank you to those that worked hard for you throughout the year. Where I have a problem is when those service providers begin to expect it. Tipping should come from your heart. Something you want to do, not something you feel pressured to do. I was raised to shower the people who provide year round service with gifts - not money - during the holiday season hence my naivety on "holiday tipping." I did learn however that gifts qualify as tips although I still think of tipping as a monetary thing.

I am not going to rant and rave about why you should or shouldn't tip. It's personal. Depending on where you live, it could be culturally unacceptable. Or maybe your budget just doesn't allow. But if you do believe in giving thanks for all their hard work, whether it's in the form of money or a gift, and are wondering what is proper holiday tipping etiquette, below is a breakdown by profession according to gifts.com and MSN Money Watch --

BABYSITTER

Budget: One to two nights pay.

What to Gift: You can get away with a tip, but try a gift card instead — it's like giving cash, yet it's more personal. If you know her favorite interests, you can give a movie lover a Fandango gift certificate, a music lover an iTunes card, or a college-bound sitter a certificate to Target. Still not sure? A girl of any age loves to shop at Sephora. You can also add a special homemade gift from your child, like a drawing or craft project.
Hint: You don't need to give an occasional sitter a holiday tip. But if she's really gone above and beyond the call of duty or if you use the same babysitter often during the year, you should reward her for her hard work.

FULL TIME NANNY (live-in or out)

Budget: One week to one month's pay (based on tenure) for both a personal gift and tip.
What to Gift: Buy something your nanny wouldn't get for herself like a designer handbag — it should be something that's a special indulgence.
Hint: Avoid kid-oriented presents like a new baby carrier or diaper bag. You want to reward your nanny for her hard work, not add to it!

DAY CARE STAFF

Budget: $25-$70 for each staff member plus a small gift from your child.
What to Gift: Cash and gift cards are the best (and easiest) choices. But you should take the extra time to personalize your present with a card or a holiday token that your child picks out.
Hint: If only one person takes care of your child, you should give more generously, but if there's an entire staff of people, spread the wealth. In this case, it's okay to give less to each.

COACH

Budget: Less than $25
What to Gift: Remember that these are their jobs, not necessarily their only interests. Try something personal from your child, like a book or a drawing of the entire team.
Hint: If you're not up for giving a gift, a simple handwritten thank-you note from you and your child is a great way to show your appreciation.

TEACHER

Budget: $25-$100
What to Gift: A unique house plant is always welcome. But, you could also get the class to chip in for one big gift that's more personal — like a cooking class or a Kindle.
Hint: Check your school's policy because gift giving might be against the rules. Gifts are usually given when your child has one teacher all day. Don't feel obligated to buy presents for everyone.

MAIL CARRIER

Budget: Non-cash gifts with value up to $20 — civil servants are not allowed to receive cash tips. What to Gift: If you want to reward for delivery through snow, sleet and rain, buy a gift card for a coffee shop near your carrier's route or a cold weather accessory for those tough winter days.
Hint: An added non-cash token of your appreciation could be a glowing letter or email to a supervisor — it might even mean more than a present.

ASSISTANT

Budget: $50 or more; take into account your position in the company and how long the assistant has been with you.
What to Gift: Ask around for advice on your assistant's interests like a certificate to dine at a fine restaurant or tickets to a big event. A stylish home accent is nice too.
Hint: Avoid gifts that are too personal like clothes or perfume, and avoid anything too practical. They're practical for you all year round, this gift should give them a break!

For the people below, you can forget the pretty wrapping and bows. You can show your appreciation with cold hard cash.

Apartment Doorman
Budget: $10-$100 each

Hint: You don't have to spread the tips equally - those who serve you more should get a bigger tip.

Building Superintendent
Budget: $10-$100 each

Hint: The IRS considers tips income, but most supers don't want to declare their Christmas gifts so consider tipping in cash. You can also tip less if you tip throughout the year.

Country Club Staff
Budget: $50 for your regular servers, locker-room personnel, front-desk employees and golf professionals; $100 for head servers or special service.

Hint: Cash tips during the holidays are appropriate regardless of the club's tipping policy.

Dog Walker
Budget: One to two week's pay

Hint: A great way to show your walker that you feel her pain? Also include a gift certificate for a pedicure to cure her tired feet.

Garbage Collector
Budget: $15-$30

Hint: Pay attention to who collects your trash. If your garbage man is really a truck driver who operates a mechanical arm that does all the work, there is no need to tip.

Gardener
Budget: $20-$50

Hint: If you use a service that sends a different gardener each week, don't worry about tipping.

Hairstylist
Budget: Cost of one haircut

Hint: If the same person that cuts your hair, styles, and colors it too, you may want to give more.

Housekeeper
Budget: Up to one week's pay

Hint: If you use a cleaning service and never know who shows up, don't tip at all. But if the same housekeeper comes every week and does a great job, tell her with a holiday tip.

Beautician
Budget: Cost of one session

Hint: If the person who does your nails is the shop's owner, they might refuse your cash tip. Either way the gesture will be appreciated.

Newspaper Carrier
Budget: $10-$30

Hint: If you tip your deliverer throughout the year, give a smaller gift at the holidays. Usually they'll leave an envelope at your door. If they don't, ask the company to add a tip to your bill.

Package Delivery (UPS/FedEx)
Budget: Less than $75

Hint: Each delivery company has their own rules: FedEx doesn't allow cash or gifts worth more than $75, but UPS doesn't have a policy. Don't get them in trouble, do your homework first!

Personal Trainer
Budget: $60-$100 upon reaching goal, or cost of one session.

Hint: If you're going to add a gift to your tip, stay away from chocolates, candy or anything that's not health-conscious.

Etiquette author Peter Post of the Emily Post Institute suggests these TIPS FOR HOLIDAY TIPPING:

1) Prioritize your most important service providers. If someone's work makes your life dramatically better, that person should be at the top of your holiday tipping list. The trusted housecleaner, the hairdresser who fits you in at the last minute and the baby sitter who always does a great job tending your kids should get more of your holiday tipping resources than service providers you use infrequently.

2) Don't skimp on your employees. If you have household workers, such as a nanny, a housekeeper or a caretaker for an elderly relative, Post cautions against forgoing holiday bonuses if at all possible. The holiday bonus is often considered part of the employee's compensation. It all depends on your past practices, what's customary in your area and what you promised when you hired the person, of course, but withholding or shortchanging the bonus could be considered a cut in pay and you could wind up losing a valued worker because of it.

3) Tip strategically. If you live in a building with a doorman, superintendent or both, failing to tip can lead - unfortunately - to bad service. The higher the customary tip, the less likely a plate of cookies will cut it. Talk to your neighbors to see what the going rate is and try to come close to that figure to make sure your packages still get delivered and your friends can get into the building.
4) Consider need. The lower-paid the worker, the more holiday tips are likely to be appreciated and the bigger impact your gift can have. Your tip to a manicurist or gardener may be a bigger deal than the same sized token to a package delivery person.
5) If you tip generously all year, you can skimp a bit. A smaller tip or a modest gift at the holidays is fine.
6) A note should accompany any tip. Your message doesn't have to be elaborate, but should include a couple of sentences thanking the person for his or her good work and wishing a happy holiday.

If you want to give but are too strapped to afford it, Post recommends one of the following:

A holiday card with a handwritten note: A warm thanks is appropriate, and you can touch on why your tip is smaller or nonexistent. "You don't want them to think the lack of a tip is a reflection on their service," Post says. You can say something like - 'Thank you so much for all you've done. It's been a terribly difficult year financially but we appreciate all your hard work."

Handmade gifts or treats: A plate full of holiday cookies or candy is a low-cost way to express your appreciation. One evening of baking can produce a dozen or a dozen and a half cookies for each (recipient).

Question: To check or ship?

I received an email from a girlfriend who knows we travel a lot asking if during the holidays we ship or check our luggage? Her concern was that with all the stuff they have, they would get dinged by the airline's ridiculous baggage fees. Thanks to the massive amount of traveling my husband does for work and his MVP status, we do not incur any fees (assuming I stay under the 50 lb weight limit which isn't always easy to do) therefore we always check our luggage but in my attempt to help my friend, I set out to a little research on what makes more financial sense - to check or ship?

Ironically, as I compiled my statistics, I came across an article in Real Simple magazine that was exactly what I was looking for. Below is the article that will shed some light on what to do come packing time --

Article from realsimple.com: "You probably assume that checking your luggage is the cheaper option, even though you’re stuck paying the airline about $25 for the first bag (each way) and $35 for the second, not to mention additional fees for heavy or large items. And sometimes it is. But not always, says Susan Foster, author of Smart Packing for Today’s Traveler (Smart Travel Press, $20, amazon.com). So before you jet off, it’s worth doing the math. If your baggage is unusually heavy or bulky, shipping may be a better deal—provided that you don’t send your Samsonite overnight or by two-day mail, says Jami Counter, a senior director of Seatguru.com, a travel-resource site. Case in point: UPS can ship a 75-pound box from New York City to Orlando, Florida, for $57. Checking an item that heavy would probably cost between $100 and $175 - one way. Get quotes from the two options that you have for shipping: a standard delivery or courier service, such as FedEx or DHL, or a specialty luggage handler - particularly useful for bulky items, like skis - such as Sports Express (sportsexpress.com).

You should also consider shipping your baggage if you want to hit the ground running at your destination (which means skipping the luggage carousel), or if you want to be assured that those bags will be waiting for you when you arrive, says Peter Greenberg, a travel editor for CBS News. “Shipping is an especially good idea if you have a connecting flight, which increases the risk that your bags will be misplaced,” says Greenberg. And delivery services offer far more bells and whistles than air carriers, says Counter, such as superior insurance, better tracking, and, best of all, picking up your luggage at your home. No schlepping!"

Hope this helps! And with that, adios amigos. Hailey's Helpful Hints will be back next week! xo

10 things you should NEVER buy USED

If anyone loves a good deal, it's me. I will scoure Craigslist before I even think to buy new. But knowing what's a good deal vs. a not so good deal is an art. Although scoring a great deal on Craigslist and Ebay is satisfying and exciting, many second-hand purchases are actually terrible deals. A lot of the time the financial or safety risk outweighs the savings.

In my companion piece, "10 things you shouldn't buy new," I listed lingerie and make-up as two items for which you'd best pay retail. Below is a list of 10 more items where the cost savings don't justify the risks of buying used:

1) Laptops: You're taking a chance when you buy any used computer, but the math really doesn't work when you're talking about a unit that's as prone to abuse and problems as a laptop. They're more likely to be dropped, banged around and spilled on, simply because they're out in the world while a desktop computer sits (mostly) safe at home. That's why laptops are one of the few products where springing for an extended warranty with free tech support makes sense, in addition to the standard warranty that typically comes when you buy new. Buy used, and you'll have neither option - along with no idea what maltreatment your laptop has suffered or when the hard drive, optical drive or other important parts will die on you.

Exception: You're buying a refurbished unit that comes with a warranty. Mobile technology consultant Catherine Roseberry, who writes a column for About.com, said she's purchased two laptops from companies that refurbished leased corporate computers, and had no problems with either. Both came with 90-day warranties. If you want even more security, buy a laptop that's been refurbished and certified by the manufacturer.

2) Car seats: A car seat that's been in one accident may not protect your child in another. And damaged car seats aren't uncommon; a survey commissioned by Sainsbury's Bank in England discovered one in 10 car seats currently in use in that country had been involved in an accident.
Brand-new car seats can often be purchased for as little as $50, and safety technology tends to improve with each year, said Denise and Alan Fields, parents and authors of "Baby Bargains." That makes getting a new one pretty much a no-brainer.

Exception: You're getting the car seat from a friend or relative whom you'd trust with your child's life, because that's what you're doing. Still, check with the National Highway Traffic Safety Administration to make sure the model you're getting hasn't been recalled. Regardless of whether you buy new or used, have an expert check your work to make sure the seat is installed correctly.

3) Plasma and high-definition TVs: Here's another of those rare cases where you want not only the warranty that comes with the television, but an extended warranty. You'll want the coverage because if your screen dies, it can cost hundreds or thousands to fix or replace - sometimes almost as much as it would cost to buy a new TV. While defect rates have declined from 7% in digital TV's early years to about 1% with some of the better models, problems with this technology are still common enough - and repairs expensive enough - that an extended warranty makes sense, said Phil Connor of PlasmaTVBuyingGuide.com.

Exception: If you're getting such a screaming deal that you don't really care if the TV blinks out shortly after you get it home.

4) DVD players: In the previous article, I recommended buying used DVDs, since their quality tends to remain high (unless they have scratches, which are usually pretty easy to spot). The same is not true of DVD players, however. These have lasers that will eventually wear out and cost more to replace than the unit is worth. Whenever repairs cost that much, buying new is often advisable. Add to that the fact that prices are constantly dropping while the technology is constantly improving, and buying new becomes a slam dunk.

5) Vacuum cleaners: Here's another item that is among the heavy-duty household appliances that tend to get a lot of use and abuse. They can also cost more to fix than if you bought them new right from the start. Consumer Reports says a good, basic upright can be purchased new for less than $100, and that the fancy features that push prices higher often aren't worth the extra cost.

Exception: You're handy and don't mind teaching yourself vacuum repair. No thanks.

6) Digital cameras and video cameras: Like laptops, used digital and video cameras are likely to have been dropped and banged around. It may not be obvious, but once the damage kicks in, it’ll be expensive to repair. If you know what to look for in a digital camera, you can get a great new camera without breaking the bank.

Exception: You're buying a refurbished model that comes with a warranty. RefurbDepot.com, for example, posts many models that still carry a factory warranty.

7) Shoes: Poor-fitting shoes can cause everything from bunions to back problems, so don't buy footwear that's already been molded by someone else's tootsies. This is particularly important for kids whose feet are still growing. Shop sales, buy last year's models, but don't give in to the temptation to save a buck now that's going to cost you more in pain and hassles later.

Exception: You're buying old cowboy boots for a costume. Or any occasion where you'll only be wearing them one time.

8) Mattresses & Bedding: Think of all the stuff you do on your mattress. Now think of sleeping in someone else's stuff. Ewwwww. Just think: You may be sleeping with other people’s mold, mites, bacteria, and bodily fluids. Besides, even the really good mattresses are only supposed to last eight to 10 years, and it’s hard know for sure how old a used mattress may be.
Exception: When "used" is really almost "un-used," such as a mattress from someone's rarely visited guest room. Still, you'd really have to trust the buyer to know, and disclose, everything that's happened on that bed, which is why you're still probably better off buying new. You shouldn't ever pay the list price, because haggling is expected. Consumer Reports suggests you need to spend about $800 to get a good-quality queen-size mattress and box spring set. That works out to about 25 cents a night - a small price to pay for cleanliness and comfort.

9) Wet suits: These spongy coverings tend to lose their ability to keep you warm over time. If you're a scuba diver, the constant change in water pressure will eventually take its toll. Also, ozone attacks neoprene suits so they become less stretchy and more likely to tear with age."
If diving, snorkeling or other aquatic activities are your passion, a good wet suit will set you back $100 to $400.

Exception: You're surfing, rather than diving, exclusively in warm waters. If you're trying to outfit a growing child and don't want to pop for a new suit, consider renting from a reputable shop that sanitizes the suits between uses.

10) Helmets: Like a car seat, a helmet is meant to protect against one accident and no more. A crash typically crushes the foam inside the helmet casing, according to the Bicycle Helmet Safety Institute, so the damage may not be visible. Since you usually can't tell if a helmet's ticket has already been punched, you're smarter to buy new. Kid's sports and bike helmets retail for about $20; you'll pay $30 to $40 for the adult size. Motorcycle helmets usually start around $100 and climb steeply from there; you can contain the cost by resisting the fancy paint jobs.

Exception: None. Helmets aren't that expensive compared to a funeral or a lifetime as a quadriplegic. Spend the money.

10 things you should NEVER buy NEW

Few people really enjoy wasting their hard-earned money, but many of us do it every day by buying new. We could do our pocketbooks, and the environment, a big favor by opting to be the second owner of some of the stuff we buy.

Obviously, some things are best purchased new; lingerie and makeup pop quickly to mind. But lots of other stuff depreciates quickly while still having plenty of useable life left. Here are 10 items where the cost vs. use equation strongly tilts toward buying used.

1) Books, books, books: Reality is that most books don't get read more than once, if that, and they're astonishingly easy to find used at steep discounts - if not absolutely free. Although you may think of your local library as obsolete, they have hundreds of shelves of FREE reading material. Check out the abounding used books stores, both in your town and online. And don't forget about those weekend garage sales - just stop by and pick up four for $1.

Exception: Reference books you'll use again and again. Ok to slurge and buy new.

2) DVDs and CDs: Used DVDs and CDs will play like new if they were well taken care of. Even if you wind up with a scratched disc and you don’t want to bother with a return, there are ways to remove the scratches and make the DVD or CD playable again. Some online retailers, like Amazon.com, now surface used versions of many of the DVD movies they sell new. Other good hunting grounds for purchase of used items: movie rental chains like Blockbuster, used record stores and yard sales.

Exception: When you simply must have the latest release by your favorite singer/director/actor, right now. It can take a few days or weeks for the used versions to show up, and perhaps a few months for the price to get discounted enough to compensate for the greater hassle you might face trying to return a defective or unsatisfactory purchase.

3) Little kids' toys: How long do games and toys remain your child's favorite before they’re left forgotten under the bed or in the closet? Parents know: it's all but impossible to predict which toy will be a hit and which will lie forlorn at the bottom of the toy box. So rather than gamble at full price, cruise consignment shops and yard sales for bargains. You can also find used children’s toys in great condition at moving sales or on Craigslist (MY FAV), or you can ask your neighbors, friends, and family to trade used toys. Just make sure to give them a good wash before letting junior play. Better than cheap, though, is free. Some parents set up regular toy-swapping meets, or you might be lucky enough to score hand-me-downs from friends and relatives.

Exception: Some parents get away with giving used toys for birthdays and holidays, but most of us (and our kids) have been fairly well brainwashed into believing that gifts should be purchased new. Try to opt, though, for classics.

4) Jewelry: Fat markups on most gems (100% or more is fairly common) means that you'd be lucky to get one-third of what you paid at a retail store, should you ever need to sell. Check out estate sales and reputable pawn shops to find great deals on unique pieces. Best if you can find a pawn shop that's been in business for awhile, get to know the owner and ask him or her for recommendations. Some readers have had good results buying via newspaper ads and Craigslist, but I'd want to take the piece to a jeweler for an appraisal first.

Exception: Your wedding ring!!

5) Sports equipment: We may buy everything from badminton rackets to weight sets fully intending to wear them out, but too often they wind up collecting dust. Buy someone else's good intention and you'll save some bucks. Happy hunting grounds: yard sales, newspaper, Craigslist, and resale stores like Play It Again Sports.

Exception: Shoes, baseball mitts and anything else that molds to the wearer's body. In addition, some people shun buying anything used if it has a motor, like a treadmill. They worry they won't get enough use out of the piece before it dies. Given how little work most such devices see before they're sold, though, you might want to take the chance.

6) Timeshares: You could call these a notoriously lousy investment if you could call them an investment at all, but you can't - because what real investment is guaranteed to lose 30% to 70% right off the bat? That is, unless you buy used. There's a huge number of folks who caved in to three hours of hard sell and are now desperate to dump their shares.

Exception: Some of the higher-end properties in exclusive resorts don't lose much value, and may offer benefits like frequent-flyer miles that could be worth the extra money if you buy from the Developer. Before you buy, though, check resale values online; don't take an agent's word for how much depreciation to expect. Also, a relatively new type of expensive time share, called a fractional interest, may actually gain in value over time.

7) Vehicles: My husband's favorite. You’ve probably heard this before: Cars depreciate the second you drive them off of the dealership's lot.The average new car loses more than 12% of its value in the first year, according to Edmunds.com; on a $25,000 car, that's $3,000, or $250 a month. Some cars depreciate even faster, depending on demand, incentives offered and other factors. Why not let someone else take that hit? Not only will you be able to save money (or buy more car), but you'll pay less for insurance. Cars are better-built and last longer than ever before, which means you're less likely to get a lemon. Companies like CarFax allow you to trace a car's history. Many late-model used cars are still under warranty, and a trusted mechanic can give your potential purchase the once-over to spot any problems.

Exception: You can pay cash and you really, really want that new-car smell.

8) Software and console games: Buy used, and you'll pay half or less what the software cost new. Console games like those for the Xbox 360, Nintendo Wii and Sony PlayStation 3 that list for $60 new, for instance, can often be purchased used for $30 or less a year after release. But it's more than just a matter of economy. Letting someone else be the early adopter also allows you to benefit from their experience. You'll find more reviews and information on software that's been out a year or more (and you won't be that far behind the leading edge). The bugs will have been identified, along with any workarounds, although you may have to live with some problems that are fixed in later versions.

Exception: If you do a lot of work with graphics, multimedia or image editing and you have a newer, more powerful computer, you'll probably want the state-of-the-art version. Some software restricts the number of computers on which it can be installed, which can make it difficult (but not impossible) to transfer the product license to a new owner.

9) Office furniture: Built to take a beating and last a lifetime, good-quality office desks, filing cabinets and credenzas are relatively easy to find even when a recession isn't cratering the local economy.

Exception: Some people balk at buying used chairs for the same reason they won't buy a used catcher's mitt - it's had too many hours to mold to someone else's body.

10) Hand & gargening tools: Well-made tools with few or no moving parts - like hammers, wrenches, shovels, hoes, etc. - can last decades with proper maintenance and are relatively easy to find at yard sales. If you're not going to use a tool frequently, you may be able to rent it or borrow from a friend or neighbor rather than buying something else to clutter up your garage.

Exception: You're a hard-core do-it-yourselfer and you need power tools, especially cordless versions. These have a relatively limited life span and you may not know how much time they've got left. If the tool is cheap enough, of course, that may not matter, but most often you'll want to buy new if the power tool will get substantial use.