Here are some articles that caught my eye this week…
While you no doubt can find the occasional story where an extended warranty paid off, by far the most common result is you lose out on the deal. Think about it: The company selling the warranty has to come out ahead most of the time or else they would be out of business. In truth, extended warranties are often extremely profitable. Many times retailers make more off the warranties than they do on the item they are selling. A better solution is to have a fully funded emergency fund and self-insure.
Interesting the difference in advice pre-1980’s and since. I believe household chores are a very good way to help children learn the responsibility of work. It is also a good way to help them begin to appreciate the value of money. Not that all chores should have a monetary reward. Some chores should be done just as a responsible member of the family. But having certain tasks that children can earn money for doing, helps them begin to understand that money comes from work, not from just swiping a card at that magic money machine called the ATM.
Having a budget is one of the keys to financial success. Without a written plan you will always reach the end of the month and wonder where the money all went.
Negotiating is a bit of a lost art, but there is no harm is trying. Ideally, a negotiation should result in the seller getting the sale they want and the buyer getting a little better deal. The goal should be a win/win. And if they refuse to negotiate, the worst case is you buy the item for the same price that you’d have paid had you not tried.
Make saving fun.
If you are still a dependent of your parents, but they are unable or unwilling to help with paying your college, you might find yourself in a difficult place. Financial aid calculations assume a certain amount of parental contribution. Without that, you may find yourself at a disadvantage when it comes to qualifying for aid. If you find yourself in that situation, here are some considerations. The most important thing is to do everything you can to avoid large student loans. They will be an anchor around your life you will regret for years. Another option you have is to simply delay college. Many employers will pay part or all of continued education. That may mean not having much of a life for a few years with long days and evening classes, but that is easier than spending 20-30 years paying off student loans.