Consumer Tips

Keeping sufficient records and updated copies of important paperwork is vital to your financial well-being. In the event of an emergency, having important papers organized is just as important as having an emergency savings fund.

The first thing you must do is gather original copies of your important documents. If it isn't possible to obtain an original copy of a document, get a certified copy. Once you have the necessary documents, be sure to keep them in a safe, yet easily accessible place - either a secure paper filing system or a trustworthy online space. The following information can help you determine what to keep and what to toss.

Retirement planning documents – Documents pertaining to IRA, 401(k), 403(b), or TSA statements should be kept in a secure location, such as a safe deposit box. Keep the annual summaries until you retire or close the account.

Tax planning documents – According to the Internal Revenue Service you should keep your individual tax return documents for seven years. You may also want to save W-2s. Paycheck stubs can be shredded once they are checked against your W-2.

Financial documents – Checking and savings accounts, bank and credit card statements, and bank information are important paperwork to have, but should be kept in a secure location. Bills for big purchases, such as furniture, computers, etc. should be kept in an insurance file for proof of their value in the event of loss or damage. Any unneeded financial statements should be properly disposed to avoid identity fraud.

Asset protection documents - In the event of an emergency, you’ll want to make sure your tangible assets are protected as well as your most valuable asset—yourself. Make sure you have updated, accurate records of medical, home, and life insurance policies and statements. Documents pertaining to buying, selling, or improving your home should be kept as long as you own the home.

Estate planning documents – It’s important to have a copy of any wills and power of attorneys. These are documents that your attorney should also have on file.

Shuffling through a pile of paperwork is a daunting task. But it is well worth it to make sure documents are properly filed and stored. Getting your financial house in order now will ensure peace of mind down the road.

Union Plus Credit Counseling

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

LEARN MORE

Here are some tips and tricks for ensuring your MLS listing catches some attention.

1. Hire or DIY: This is the first decision you need to make. Whether you’re FSBO or have a realtor – think about investing in having a professional take pictures of your home. They will have a good eye for lighting, camera angles to make your home larger and also special lenses to enhance the look of rooms. If you enjoy photography and have a good camera – there’s no reason to shy away from the job, but just be sure to follow the below steps to ensure you’re thinking about everything before you begin.

2. De-clutter and De-personalize: This is something you’ll hear from a realtor when getting your home “show ready” – the less clutter and personal items, the better. Invest in totes or an actual storage service if you’re not ready to get rid of things.

3. Light: When you take pictures, make sure it’s during the brightest point of the day (in your home). Depending on where your windows are located and the position of your home – it could be in the morning or afternoon. Open all blinds and shades to let ample light in and notice how much more inviting your home will look in your pictures.

4. Set the Scene: Think about buying fresh flowers for your dining room table, side tables, bathrooms or guest room. Set your dining room table with a beautiful tablecloth and place settings. Buy potted flowers for your porch and back yard. Buy a cozy throw to add color to your couch or bedroom. Remember you can always re-use things like plants and flowers in multiple rooms to add a pop of color to your pictures. Get inspired by thumbing through recent Pottery Barn magazines to see how they’ve staged their rooms – even the smallest details can make a big difference.

5. Highlight Your Best Features: If you have a beautiful kitchen or large backyard – be sure to highlight these areas with multiple pictures. You can never have too many good pictures for prospective buyers to view.

With these tips, you shouldn’t have any issues capturing some attractive pictures of your home. And as always, if you’re ready to talk to one of SIRVA pre-approved real estate agents, call 800-284-9756. With the Union Plus Real Estate Rewards, union members earn $500 cash back on every $100,000 in home value when you use a real estate agent approved by SIRVA.

The Union Plus Auto Buying Service is committed to a faster, easier buying experience. One part of the process you may be wondering about is the tendency for car prices to change. The simple answer is supply and demand.

The base price or manufacturer suggested retail price (MSRP) of a particular car does not fluctuate much. But to meet or drive changes in demand, manufacturers often offer incentives such as cash back or bonus cash. Dealers have the same opportunities to offer incentives based on their stock, which often happens towards the end of the month.

For example, one dealership might project high sales of a popular model. A smaller dealership in a different city doesn’t, requesting fewer vehicles from the manufacturer. This second dealer might not offer incentives because they believe their smaller inventory will sell, while the first offers them to quickly move more vehicles.

While prices fluctuate, using a platform like the Union Plus Auto Buying Service, you can receive upfront pricing information from participating dealers that includes available dealer and manufacturer incentives. The Union Plus Auto Buying Service uses TrueCar Certified Dealers who will help you find the vehicle you want and locate incentives you may qualify for, including potential extra savings.

When your income suddenly decreases or disappears completely, the question quickly becomes what do you do about all those bills you're supposed to be paying? If you find yourself in such a situation, the best first step is always is to communicate with each of your creditors explaining your situation. Tell them that you are unable, not unwilling, to repay as agreed. Remember, it is always best to contact your creditors before they have to contact you.

The best way to contact your creditors is in writing; after you have written your letters:

• Maintain accurate files. Before mailing your letters, make copies to keep for your files. If you must negotiate over the phone, keep detailed notes including the representative’s name, title, and phone number. Follow-up any phone conversations in writing.
• Stay organized. Write a summary list of your financial plan for quick reference. Revisit the plan regularly to make sure you are on-track.
• Be prepared for calls. After sending your letters, you can expect some of your creditors to call with additional questions. If they do, be honest and courteous.
• Keep your end of the bargain. If you are unable to make agreed upon payments, contact your creditors immediately to renegotiate.

Utility Companies 

Each utility company has its own procedure to follow before disconnecting service. The procedure generally includes notification in person, by mail, or by phone. Before shutting off service, the company may offer a budget plan to help you repay any past due amount. Remember, utility companies do not want to discontinue your service. They might even have information about available emergency funds to help you pay past bills.

Be sure to ask for help at the first sign of financial trouble. Once your utilities are disconnected, you may have to pay the past due bill in full or pay a substantial deposit to reinitiate service. You might also have to reapply for the utility and pay installation charges.

Housing lenders 

If you do not make your mortgage payments, you home could be foreclosed. Fortunately, there are many alternatives to foreclosure. For example, if you have the amount of money required bring your loan current, the mortgage company will reinstate your mortgage. You may also contact your mortgage company and work out a repayment plan.

For help, considering speaking with a HUD-certified housing counselor. If your home loan is backed by the Department of Veteran’s Affairs, call your local VA center. You can also check with your local United Way for assistance.

If you are a renter, contact your landlord about your situation immediately. The landlord may accept partial payment for one or two months. You may want to look for less expensive housing, but be realistic and remember to include moving expenses, deposits and family adjustments as you calculate costs. If it is a private landlord and you or family members are able, you may be able to do some maintenance work in place of part of your rental costs.

Car and Other Vehicle Lenders 

If you cannot make your car or other vehicle payments, they may be repossessed. Repossession means that the creditor takes the vehicle and it is sold at a public or private auction. If the vehicle is sold for less than the amount still owed on it, as is often the case, you are liable for the remainder that is owed on the vehicle.

Check with the creditor to see if the loan can be rewritten for lower monthly payments. Ask for an extension, with the extension fee attached to the end of the loan. If you do not need the vehicle, if it is a second car or a recreational vehicle, ask the creditor if you could sell the vehicle and pay the creditor off with what you receive. Also, find out about the procedure if you sold the vehicle to someone who would take over payments.

Credit Card Issuers 

Late fees and over-the-limit charges can quickly add up to a debt problem. In addition, nonpayment could lead to your accounts being canceled and the debt may be turned over to a collection agency.

Notifying your creditors of your changed financial situation may not stop all collection activity; however, many creditors are likely to assist by waiving interest, granting extensions, or reducing payments. Do not be tempted to replace income with credit card cash advances. Available credit should be used extremely cautiously.

Insurance Issuers 

Do not allow insurance to lapse. Write your insurers immediately and explain your situation. Ask what payment options are available. Check with your insurance company; there may be a grace period in making payments from 10 to 30 days. Determine your minimum needs for insurance. Cancel duplicate and non-essential policies. For basic essential policies consider these options:

• Car Insurance. By law, you may need to retain your liability coverage. You can research the possibility of reducing your premium costs by increasing the deductible on your collision and comprehensive coverage.
• Health Insurance. Check to see if the health insurance provided by your former employer is continued. If coverage is not available or if you can’t afford the premium, find out if you qualify for Medicaid. Also, check into policies that would pay for major hospitalization and find out what community services are available for routine medical concerns.
• Life Insurance. Consider changing your policy to a less expensive form. Check into the possibility of borrowing money on your policy to pay premiums.

Union Plus Credit Counseling

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

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We throw the term “financial literacy” around pretty frequently, and you probably have a good idea of what it means. But how does one actually test financial literacy? And how well would you do on a test of your financial literacy?

Let’s find out.

A Little Background

Researchers at George Washington University recently released a report, based on data from the 2012 National Financial Capability Study, which concluded that millennials think they’re more financially literate than they really are. In that 2012 study, financial literacy was determined through a series of five questions. Correctly answering the first three questions would indicate a “basic understanding” of personal finance. Answering all five questions correctly would demonstrate a “high level” of understanding.

Of the millennials surveyed, only 24 percent were able to answer the first three questions correctly and only 8 percent answered all five questions correctly. Could you do better? Here are the actual questions used in the survey:

1. Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

• More than $102 
• Exactly $102
• Less than $102
• Do not know
• Refuse to answer

2. Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year. After 1 year, how much would you be able to buy with the money in this account?

• More than today
• Exactly the same
• Less than today 
• Do not know
• Refuse to answer

3. Please tell me whether this statement is true or false. “Buying a single company’s stock usually provides a safer return than a stock mutual fund.”

• True
• False 
• Do not know
• Refuse to answer

4. A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage, but the total interest paid over the life of the loan will be less.

• True 
• False
• Do not know
• Prefer not to say

5. If interest rates rise, what will typically happen to bond prices?

• They will rise
• They will fall 
• They will stay the same
• There is no relationship between bond prices and the interest rates
• Do not know
• Prefer not to say

Ready for the answers? 1 – More than $102, 2 – Less than today, 3 – False, 4 – True, 5 – They will fall

How did you do? Did you meet your expectations? Remember that only 8 percent of the millennials surveyed were able to answer every question correctly, despite 69 percent giving themselves high grades for financial literacy. In general, it’s pretty common for many of us to think we know all that we need to know about money because we handle our money every day. In reality, however, being financially literate means having a solid grasp on a wide range of financial concepts.

If you struggled with some of the questions, don’t worry. In the weeks to come, we’ll be going in depth with each of the questions and the core concepts being tested. Besides, one of the true values of a test like this is learning what you don’t know. Once you see where the gaps are, you can work to increase your knowledge and fills those gaps.

Union Plus Credit Counseling

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more.

LEARN MORE

Many criminals who break into houses don’t actually break in — they enter through unlocked doors and windows. Don’t give thieves easy access to your home. Here’s what you can do:

1. Invest in a quality door. A door with a glass pane may present a security problem.
2. Install deadbolts on all exterior doors and the door connecting the garage to your house. inside the garage. (Deadbolts should be single-cylinder locks, at least 1 inch thick and extend at least 1 inch into the door frame when locked.)
3. Secure windows and sliding glass doors with locks.
4. Consider installing a home security system.
5. Light the outside of your house. Consider installing motion-sensitive lights.
6. Do not open doors to strangers. Always ask for identification.
7. Install wide-angle peepholes in all solid doors. Don’t rely on chain locks to see who is at the door. Chains can easily be broken once a door is ajar.
8. Keep your garage door locked and basement windows secure.
9. Lock outbuildings (e.g., storage sheds) with deadbolts.
10. Keep trees and shrubbery trimmed. Overgrown vegetation gives a burglar more privacy.
11. Don’t give keys to anyone you don’t know  well. Give parking lot attendants and mechanics your ignition key only, not your entire key ring.
12. If people you don’t know (e.g., previous tenants or owners) could have keys to your house, change the locks.
13. Always lock your doors, even if you’re gone only for a short while.
14. Avoid hiding a key outside your home. Instead, leave a duplicate set with a friend or trusted neighbor.

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Commission Costs

When you crunch the numbers, remember that you can always save money by not using a real estate agent on your end. But if a buyer comes in with an agent, you will be obligated to pay their commission. So, for instance, a typical agent will require a 3% commission. If you don’t use an agent but your buyers have an agent, you would save 3% or 6% if they don’t have an agent. When you’re considering the cost of using a listing agent, keep in mind that (conservatively) it will be about 3% of the total purchase price.

Your Time Comes at a Price

Fundamentally, you could probably For Sale By Owner (FSBO) easily in a seller’s market in the summer – when the conditions are perfect, without much effort. But, like most situations, there are usually challenges to overcome. Not to mention, if you work full-time, you have to be realistic about how much time selling your home could take away from your work or family. Marketing and showing your home alone are huge time-sucks, which can be avoided for a 3-6% commission.

Do the math and figure out what your time is worth, then calculate how many hours you might need to put against selling your home in order to justify the use of an agent.

Other Costs When FSBO

If you decide to go the FSBO route, take into account the extra things you might have to pay for:

• MLS listing fees
• Professional pictures or video of your home
• Home sale and open house signs
• Lawyer fees to review contracts
• Time off for home showings
• Staging advice
• Storage fees (for staging)
• Home buying agent commission fees
• Extra incentives for buying agents

Agents Have Connections

If you live in a small or big town, agents talk. This is one of the benefits of using an agent. They will use all of their networks, referral groups, Web tools and connections in order to market your home. Agents have access to the MLS, which is the number one home sale site. They also have connections with ancillary service providers that could market your home better, including photographers, home stagers, storage providers, etc.

Finding a trouble-free used car has nothing to do with luck and everything to do with applying good research and investigative skills. Knowing how to spot potential problems and determining how reliable a used vehicle is can save you from expensive automotive headaches down the road. The following advice can help you determine whether a used vehicle is a good value or potential trouble.

13 Tricks to Try

1. Check the Reliability Record
   A good way to reduce the risk of purchasing a trouble-prone vehicle is to select models with a good reliability record before you begin shopping. Consumer Reports' annual subscriber survey provides exclusive real-world reliability information that can help you narrow your selections. See best and worst used cars for a quick-reference list of the best and worst used cars from our most recent survey. Also read the reliability-history charts that accompany most of Consumer Reports' vehicle profiles to get a more detailed view at how specific models have held up in 17 trouble areas as well as overall.
    
2. Read the Window Sticker
   The Federal Trade Commission requires dealers to post a Buyer's Guide in every used vehicle offered for sale. Usually attached to a window, it must contain certain information, including whether the vehicle is being sold "as is" or with a warranty, and what percentage of repair costs (if any) the dealer is obligated to pay. The Buyer's Guide information overrides any contrary provisions in your sales contract. In other words, if the Buyer's Guide says that the vehicle is covered by a warranty, the dealer must honor that warranty. If any changes in coverage are negotiated, the Buyer's Guide must be altered to reflect them before the sale.
   
   If a sale is designated "as is," it means that the dealer makes no guarantees as to the condition of the vehicle, so any problems that arise after you have made the purchase will be your responsibility. Many states do not allow as-is sales on vehicles selling for more than a certain price.
    
3. Check the Exterior
   Begin by doing a walk around of the car, looking for dents, chipped paint, mismatched body panels or parts, broken lamp housings, and chipped windows. Gaps between body panels should be of a consistent width and line up.
   
   A closer inspection can reveal paint overspray on chrome or rubber trim or in the vehicle's wheel wells. This is a telltale sign of body-panel repair.
   
   Test for the presence of body filler with a small magnet. If the magnet doesn't stick to the panel, the car may have filler under the paint (some vehicles with plastic or fiberglass panels, however, won't attract a magnet at all). A door, hood, or trunk that doesn't close and seal properly is evidence of previous damage and/or sloppy repair work. A CAPA (Certified Automotive Parts Association) sticker on a body panel means the part has been replaced. Inconsistent welds around the hood, doors, or trunk also indicate repair.
    
4. Check the Interior
   
   
   A long look into the cabin can reveal many obvious problems, such as a sagging headliner, cracked dashboard, and missing knobs, handles, and buttons. Frayed seat belts or ones with melted fibers (because of friction) may be evidence of a previous frontal impact above 15 mph--damaged safety belts should always be replaced.
   
   Prematurely worn pedals or a sagging driver's seat are signs that the vehicle has very high mileage. An air bag warning light that stays lit may indicate that a bag has deployed and been improperly replaced--or not replaced at all. A mildew smell, caused by a water leak, can be very hard to get rid of. Discolored carpeting, silt in the trunk, or intermittent electrical problems may be signs of flood damage.
    
5. Check Under the Hood
   At first glance, the engine, radiator, and battery should be relatively grease-free and have very little or no corrosion. Belts and hoses should be pliable and unworn. Look for wet spots, which can indicate leaking oil or fluids. Melted wires, tubes, or lines, or a blackened firewall may be signs of overheating or even an engine fire.
   
   With the engine cool, insure that all fluids are clean, filled to the proper level, and do not have leaks. Check the engine oil while the engine is cool. Remove the dipstick from its tube and clean it with a dry rag, reinsert it and remove it again. The oil level should be between the "full" and "add" marks. Normal engine oil is brown or black, depending on when it was last changed. Gritty or gelatinous oil may indicate long stretches between oil changes. Thin, frothy oil that's the color of chocolate milk may point to a blown head gasket or to a severely damaged block or cylinder head. Fine metal particles in the oil indicate internal damage or heavy wear.
   
   The transmission fluid dipstick is usually located in the rear of the engine compartment. Check it right after the car has been driven for more than 10 minutes. With the engine at idle and both the brake and parking brake applied, shift through all the gears. Leave the engine running and put it in neutral or park (according to the owner's manual) and check the level in relation to the dipstick marks. Also inspect the fluid's condition. The transmission fluid should be bright red to light reddish brown, not dark brown, black, or mustard colored; those colors can indicate serious problems. If it has a strong burned smell, that can indicate severe wear.
    
6. Check the Tires
   Wear should be even across the width of the tread and the same on the left and right sides of the car. Tires that are frequently used while over-inflated tend to have more wear in the middle; tires driven while under-inflated tend to wear more on the sides. Heavy wear on the outside shoulder near the sidewall of the tire indicates a car that has been driven hard. This can be a sign that other parts of the car may suffer from excessive wear due to aggressive driving. Cupped tires, those that have worn unevenly along the tread's circumference, can indicate various problems with the steering, suspension, or brakes.
    
7. Check the Steering
   With the car idling, turn the steering wheel right and left. Check that there isn't any slack or "play," or clunking noise in the steering. Excess play may indicate a worn steering gear or damaged linkage.
   
   While driving at normal speeds on smooth, flat pavement, the car shouldn't wander or need constant steering corrections. A shaking steering wheel often indicates a need for a wheel balancing or front-end alignment, which are easily remedied. However, this may also be a clue that there's a problem with the driveline, suspension, or frame, which could mean expensive repairs are in order.
    
8. Check the Suspension
   Check the suspension by pushing down hard on each fender and letting go. The car should rebound softly, once or twice. More than two severe rebounds indicate worn shock absorbers or struts. Also, drive the car over a bumpy road at about 30 mph. A car that bounces and slams at moderate speeds over common pavement may have a worn or damaged suspension.
    
9. Check the Tailpipe
   A puff of white smoke upon start-up is probably the result of condensation and not a cause for alarm. Black smoke after the car has warmed up indicates an overly rich air-fuel mixture--usually due to a dirty air filter, a faulty oxygen sensor, or mass-air meter (which measures the amount of intake air). Blue smoke indicates oil burning—a bad sign, requiring expensive repairs. Billowing white smoke indicates water in the combustion chamber, usually because of a blown head gasket, damaged cylinder head, or even a cracked block--all expensive repairs.
    
10. Step on the Gas
    While driving, does the engine rev excessively before the car accelerates? This is a common sign of a misadjusted or worn-out clutch, or a damaged automatic transmission. A clutch adjustment is a relatively inexpensive service, but a damaged clutch or automatic-transmission repair can be extremely expensive.
    
    Listen for knocks and pings while accelerating. These indicate bad ignition timing or an engine beginning to overheat.
     
11. Check for Recalls and TSBs
    Check to see if any recalls were issued and if recall service was performed. The National Highway Traffic Safety Administration (www.nhtsa.dot.gov; 800-424-9393) lists all official recalls. Ask the seller for documentation on recall service. If any recall work has not been performed on a car that you're considering, it should be done as soon as possible. Automakers are required to perform recall service free of charge, regardless of the vehicle's age or how long ago the recall was issued.
    
    Technical Service Bulletins, or "TSBs," are reports a manufacturer sends its dealers about common or recurring problems with a specific model, and how to rectify them. Because TSBs aren't typically safety related, manufacturers are not obligated to notify owners or pay for the repairs, though an automaker may pay for some or all of the work—if an owner asks them to. See NHTSA's lists of TSBs. Check for any TSBs that were issued for the model you're buying and if the seller had any necessary repairs performed.
     
12. Check the Vehicle's History
    A vehicle-history report from CarFax or Experian Automotive can alert you to possible odometer fraud; reveal past fire, flood, and accident damage; or tell you if a rebuilt or salvage title has ever been issued for the vehicle. To access this information, provide the vehicle identification number, or "VIN," which is on the top of the dashboard, near the driver's side roof pillar. Reports should cost $15 and the process takes about five minutes.
     
13. Visit a Mechanic
    Before you buy a used vehicle, have it inspected by a qualified mechanic that routinely does automotive diagnostic work. A thorough diagnosis should cost around $120. An organization called the Car Care Council certifies diagnostic shops. If you're an AAA member, you could use one of the organization's recommended facilities.
    
    In addition to doing the basic diagnostic, ask the mechanic to put the vehicle on a lift and inspect the undercarriage. Kinked structural components and large dents in the floor pan or fuel tank can indicate a past accident. Welding on the frame suggests a damaged section might have been replaced or cut out during repairs. Have the mechanic look for fresh undercoating, which can be used to hide recent structural repairs.
    
    A dealer should have no problem lending you the car to have it inspected as long as you leave identification. A private seller may be more reluctant, however. You should offer to follow the seller to the shop where the inspection will take place.

Know Your Rights

The law can protect you if your carriage turns into a pumpkin. Part of buying smart is knowing what protection you have before you need it. State laws vary greatly in the degree of consumer protection they afford. New York law, for instance, requires that car dealers offer written warranties on all used vehicles with less than 100,000 miles selling for $1,500 or more.

In California, it's illegal for a dealer to sell a car with unsafe tires, damaged glass, nonfunctioning lights, or ineffective brakes. Other states offer varying amounts of protection. Check with your state attorney general's office or local consumer-protection agency to learn about the laws in your area.

If You've Bought a Lemon . . .

From a dealer. The state attorney general's office can explain how your state laws protect you. If you suspect that you've bought a rebuilt wreck, contact the National Association of Consumer Advocates, which maintains a list of attorneys who specialize in such cases. If you have a problem with a car covered by a warranty or service contract, and the dealership refuses service, you have several options. For service agreements administered by an automaker, contact the company's local representative. These representatives are authorized to adjust and approve repairs independently of the dealership that sold the car. If you bought the vehicle from a franchised dealer, you may be eligible for mediation through the National Automotive Dealers Association's Automotive Consumer Action Program (AUTOCAP). For more information, call NADA at 800-252-6232 or visit www.nada.com. If the dealer is willing, consider using a dispute-resolution organization to mediate your disagreement. Some service agreements require this as a first step before suing the dealer or manufacturer. Pay attention to the wording of the sales contract before buying to determine if you may sue, or if you must submit to arbitration.

From a private seller. Your options are much more limited. If the seller has made any written guarantees about the condition of the vehicle, you can use them as the basis for filing a lawsuit. You can resolve disputes involving smaller amounts of money (usually less than $2,000) without an attorney through small claims court. The clerk of your local small-claims court can tell you what the exact dollar limit is in your state and provide information on how to file suit.

Copyright© 2006-2017 Consumers Union of U.S., Inc. No reproduction, in whole or part, without written permission.

Parents with young children, here’s a non-controversial statement: your kids are probably going to go to college. Presently, about 70 percent of American high school graduates go on to enroll in a college or university. Even if those rates decline in the next 18 years (and there are signs that indicate they already are), the majority of eligible young adults will likely end up in some form of secondary education. And college – as you may have already heard – is expensive.

SavingforCollege.com estimates that by 2033, the cost of a four year degree from a private college will average approximately $323,900. A public, in-state university, meanwhile, will be a comparatively inexpensive $94,800.

Wherever your children end up, it will be costly. And while financial aid and student loans will almost certainly still be available, you may want to help defer some of those costs by setting aside money. If that’s the case, the first question you want to ask yourself is, “Am I ready to start building a college savings fund?”

Consider Your Priorities

Having a sizable college fund for your children to access would be great, of course, but should it be your priority? After all, there’s only so much money to go around and there are other financial concerns you may want to address first.

Debt – Do you have any high interest loans or credit card balances? Most savings accounts offer a relatively small yield, such that focusing on saving while carrying high interest balances could be a costly and impractical use of your available money. Depending on interest rates, it may also be a little counterproductive to build up your child’s college savings account before you’ve paid off your own student loans.

Retirement – Are you saving an adequate amount for retirement? Keep in mind, the gift of a free college education isn’t much of a gift at all if you run out of money during your senior years and your kids have to pick up the bill. Make sure your retirement savings are well on track and growing steadily before you start directing money towards a college savings account.

Emergencies – Unexpected setbacks can be financially devastating if you aren’t properly prepared. Try to build a cushion equal to approximately three to six months’ worth of income before turning your attention to a college fund.

Find a Plan and Stick to It

Once you’ve gotten all your financial ducks in a row, your next step should be identifying the type of savings plan that best meets your needs. You may want to work with a qualified financial planner to help you understand all of your options. Some of the most popular savings vehicles include 529 college savings plans, prepaid tuition plans, and education IRAs.

The earlier you start, the easier it becomes to build a sizable college fund, but always remember to keep your priorities in order. Good luck!

Union Plus Credit Counseling

Union members can get a no-obligation money and credit assessment from certified, experienced consumer credit counselors though Union Plus Credit Counseling. Powered by the non-profit Money Management International (MMI), your free session will cover a complete financial review, assistance in budgeting, advice for working with creditors, and more. 

Learn More

1. Emergency Kit

Safety is your top priority, so we recommend assembling a kit to keep you and your passengers covered. At a minimum, that should include first aid supplies, a flashlight, bottled water, and fridge-free snacks like granola bars.

2. Flat Tire Solution

This can be as simple as a can of Fix-a-Flat, which can seal and inflate a punctured tire. But for a more comprehensive solution, we recommend a system that includes an air compressor and tire pressure gauge.

3. Jumper Cables

It might seem redundant if you have Roadside Assistance with a service like the Union Plus Motor Club, but you’ll be glad you had jumper cables when you’re camping in the woods, cell phone reception is spotty, and your car’s battery is drained.