Gimme vs. Giving: Teaching Kids the Meaning of Goodwill

Teaching kids about giving back is a valuable life lesson that can't start too soon. How can parents show their young children how good it feels to do something for someone else? Behavioral experts suggest beginning with the following steps with children under the age of five, and making ‘giving back’ a routine experience as kids get older:

Help kids make gifts. Whether it’s a plate of cookies the child helped bake or a finger-painted picture, what grandparent wouldn’t be thrilled with a handmade offering? For a child, seeing the joy in that grandparent’s face is a good first lesson in how good it feels to give to others.

Encourage gift planning. As children naturally focus on what they want to receive, encourage them to think about what they can give or make for other family members on birthdays, holidays and 'just because'—and, as they get older, they can give to those in need outside the family.

Have them use their own money. Sacrifice is a part of giving. If your child is old enough to get an allowance, he or she is old enough to learn the value—and the gratification—that comes with sharing.

Find and support local projects. Look around your community for ‘sharing’ opportunities: choosing and donating backpacks, coats or toys for local children in need; visiting a local senior facility; or choosing and delivering a carton of foodstuffs to a nearby food pantry. Projects such as these teach the meaning of goodwill, and may bring families closer together. 

How to Make Your Home's Entryway Pop

The entrance of your home says a lot about your character, from interior design to overall aesthetics. Below are some helpful tips for making sure your space wows you and your guests every time.

Kill the clutter. Clutter is a huge no-no in your entryway, as it impacts the entire vibe of your space from the moment you set foot in the door. However, this can be hard, as the entryway is the space you dump your keys, mail, boots and coat. To remedy this, make sure you have designated, tucked away spaces for everything you store at the entrance of your home. Hooks for coats, baskets for mail and a covered bin for shoes can all work wonders.

Add a statement. Placing a beloved piece of art or furniture in the mouth of your home is a great way to appreciate it every time you enter, and can offer a fantastic conversation starter between you and guests.

Have a seat. Whether it’s a plush chair or a simple bench, a seat in your entryway is great for roosting as you tie your shoelaces, and makes a perfect place for attractive accent pillows.

Light it right. Good lighting in your entryway is a must. Add an attractive lighting fixture, set up a dimmer for mood and a floor or table lamp for added options.

Personal touches. Placing photos of your family and pets in your entryway can add a nice personal element and warm your heart every time you pass by.

How to Find Your Home Decor Style

If you're redecorating your home, or moving into your very first space of your own, you're likely considering various home décor styles. But what if you're unsure of your personal space style?

Aside from perusing Pinterest, there are many ways you can "try on" different looks for your home. Consider the following:

Think about your clothing style. Many of us end up incorporating our personal wardrobe style into our home, so this is a good place to start. Is your wardrobe simple and streamlined? Do you love accessories or jewelry? All of these can be great starting spots.

Peruse the stores. Take an afternoon and walk through home furnishing stores, paying mind to their sample displays. What do you like? What do you dislike? Take notes on styles and pieces you admire.

Snag a design catalog. Pick up an interior design magazine and flip through it, circling favorite ideas and set-ups.

There's an app for that. There are several home design apps that allow you to upload a photo of your space and fill it with make-believe furniture. This is a great way to try on styles. Who knows, you may even surprise yourself.

Take the Stress out of the Buying and Selling Process With These Simple Tips

Regardless of what side of the real estate transaction you’re on, buying or selling a home can be a stressful experience, and if you’re not careful, the anxieties associated with the process can become overwhelming. While getting out of the house for a massage or yoga class can be helpful, here are some additional ways to take the stress out of the process.  
 
First, understand your goals in buying or selling a home. Make a list of what you hope to accomplish—the price, neighborhood, timetable, etc. Once you know exactly what you want, you’ll have an easier time explaining your wants and needs to your agent, alleviating some of the stress that goes hand-in-hand with the buying or selling process.
 
Another simple way to alleviate stress is to prepare your finances ahead of time. If buying a home, know what you can afford and get a pre-approval letter from your bank so you don’t have to worry about whether you can truly afford the home you want. If selling a home, know what it will cost to make repairs or renovations and get estimates for the move itself. When both parties know how much money they really need, it makes things easier for everyone involved.
 
Next, take the time to read some books, blogs or online real estate advice that can provide a glimpse into what to expect when buying or selling a home. Understanding the process and being aware of issues that can come up will keep surprises from causing undo stress. If you understand the problems that can come with obtaining a mortgage or realize that not every offer will be a good one, you can keep your emotions at bay.
 
While you most likely already have an agent working with you, other professionals can help alleviate stress as well. Having a good real estate lawyer will let you sign any contracts without fear that you’re making a mistake. Hiring a good inspector will allow you to rest easy knowing that any problems with the house will be found. And working with a home stager will go a long way toward positioning your home in the best light possible.
 
In the end, remember that not everything can be controlled, and the real estate game can get confusing at times. If something unexpected comes up, take a deep breath, relax and try to do something to take your mind off of the deal for a while. 
 
Contact me today for more tips to help take the stress out of the buying or selling process. 

Credit Freezes Are Now Free: What Does It Mean For You?

The bill that rolled back banking regulations imposed by the Dodd-Frank bill in the wake of the Great Recession included an interesting tidbit for consumers: free credit freezes. According to CNNMoney, Congress was pressured to make freezes free after 2017’s Equifax breach exposed the personal information of more than 146 million Americans.

While a credit monitoring company alerts you of suspicious activity, a credit freeze actually prevents a credit bureau from releasing any of your personal information—to a legitimate source or otherwise—making the credit freeze the only true way to protect your personal information. However, until now, consumers have had to pay a fee to place and lift a credit freeze—a fee that needs to be paid at all three credit bureaus.

According to WalletHub, credit freezes were already free for fraud victims, and several states had also made them free. However, under the new legislation—which was expected to go into effect about four months after the bill was signed—placing, lifting and permanently removing credit freezes will be free for all consumers no matter where they live. The bill will also require consumer rating companies to fulfill your request within one business day when made online or over the phone, and within three business days if requested by mail.

What will the larger implications of free credit freezes be? The experts at WalletHub expect a decline in credit-card applications. While the new law probably won’t impact major borrowing events, such as buying a car or a home, the extra step of having to lift a credit report freeze before applying for a loan or line of credit may be enough of a roadblock to prevent some consumers from applying for a new credit card, they say.

Need to freeze your credit? Visit each credit agency’s website (Experian, Equifax and TransUnion) and access their freeze page. You’ll be given a PIN that will allow you to remove the freeze in the future.

7 Safety Tips Every Homeowner Should Know

Like most homeowners, you probably have your water heater strapped down and you flush out the gutters every spring. But there are many other tips that make a big difference in terms of both safety and thriftiness.

The home safety watchdogs at FamilyHandyman.com offer seven tips to start with:

Monitor furnace filters. Clogged furnace filters cost you in both efficiency and higher bills. For peak performance, replace them every 30 – 60 days. Keep track of when you replaced them last by buying several and labeling them by month.

Shut off the water when on vacation. Every insurance adjuster hears it: “We left town on Friday and returned Sunday evening to find thousands of dollars in water damage.” Before going on vacation, turn off the main water valve. In less than a minute, you can eliminate the most common cause of home damage. 

Don’t leave the remote in your car. Anyone who breaks into your car can grab the remote for easy access to your garage, and the registration card in your glove box gives the thief your address. Ditch the remote on your visor and buy a keychain model you can take with you every time you leave the car.

Think about replacing pipes. If you have galvanized steel pipes in your home and low water flow at faucets, chances are the pipes are to blame. Galvanized pipe is prone to mineral buildup, which eventually chokes off the water flow. Replacing the pipes is the best cure, especially if you live in an older home.

Check the breaker first. When a light goes out or a switch doesn’t work, check the main electrical panel for a tripped circuit breaker. Look for a switch that’s not in line with the others. Flip it to the ‘off’ position and then back on.

Get low flow showerheads. Showerheads are heavy water users and major energy eaters, since 70 percent of the water used is heated. By reducing hot-water consumption, a low-flow unit can pay for itself in just one month. Many of today’s water-efficient showerheads now provide a high-flow feel.

Install ceiling fans. Moving air increases evaporation from your skin and helps keep you comfortable at higher thermostat settings.

Is a Multi-Family House a Good Investment?

Financing

To purchase a multi-family property, you’ll most likely need to obtain a loan. Getting financing for a larger building may be easier than borrowing for a smaller one.

The more units there are, the less one individual unit affects the revenue collected. This means less risk for the bank.

Earning Potential

A multi-family house can allow you to generate a consistent cash flow.

Time and Financial Costs

A large property requires a lot of time and work to manage. However, you can hire a management company to help take care of those tasks.

Is a Multi-Family House Right for You?

Before investing, carefully consider how much money you have. Do you want to go it alone or with partners?

A multi-family property can help you earn substantial profits. However, you may need help from others to make the purchase and handle day-to-day maintenance.

Save for a Home with a Dollar-for-Dollar Match Program

A federal program helps low-income families buy a home with a unique method meant to encourage saving: It matches dollar-for-dollar what they save to buy their first home.

The Individual Development Account, or IDA, doesn’t offer a lot of money to help with a down payment — up to $2,000 in federal matching funds with more contributions possible from local IDA programs — but it’s a start.

Participants can start by saving as little as $25 — matched to as much as eight to one, depending on the program, though most offer one-to-one matches. Income levels must be 200 percent below their state’s poverty level.

With an 8:1 match, IDA participants can raise much more than the $4,000 total with federal matching, and could have $10,000 or so for a down payment on a house.

Most IDAs are funded by the federal government and are run by nonprofit groups and financial institutions, and grantee programs are required to raise an equal contribution of nonfederal funds. It can take from six months to several years to save for a down payment on a house through the program.

To earn the matching dollars, some IDA programs require account holders to take financial literacy classes and training on homeownership; they are also provided counseling and instructions on how their local program works.

More than 60,000 IDAs have opened in the U.S. since Congress established them in 1998. The Administration for Children and Families is the federal agency that provides the federal half of the match.

IDAs aren’t just used for buying a home. The matching money can also be used to repair an existing home, go to college or start a business.

Getting help with a down payment through IDA can benefit both lenders and homebuyers, who are less likely to default on home loans after participating in the program. IDA participants are 2 – 3 times less likely to lose their homes to foreclosure than other low-income buyers, according to a 2010 study from the Corporation for Enterprise Development and the Urban Institute.

An IDA might not be for everyone. But for families that can afford to save small amounts of money over time, matching money from an IDA can help them get a good start on a down payment and homeownership.

Things to Consider If You Have Inherited a House

When someone passes away, his or her house is generally left to a family member. Figuring out what to do after inheriting a house can be confusing and overwhelming, particularly when it is unexpected or when siblings become joint owners. Sometimes people rush to make decisions, and sometimes they put off making important choices. Either can lead to more financial costs and stress.

Find and Prevent Damage

If you have inherited a house, you should first assess its current condition. Have the house inspected by a professional so you know what needs work and so you can make any necessary repairs. Contact the utility companies to have the accounts switched to your name. Keep the heat and water turned on to avoid problems such as frozen pipes. Keep the electricity working and have the yard maintained to avoid making it obvious that the house is unoccupied and attracting thieves or vandals.

Clean out the House

Invite family members to the house to take any items they want, provided they were not left to specific individuals in the will. Start with immediate family members, then branch out to allow others to choose things they would like. This can be an emotionally difficult task, but putting it off would only increase people’s negative feelings and would prevent you from moving forward and deciding what to do with the house.

Move in, Sell or Rent?

If you want to move into the house, find out how much the mortgage (if any) and property taxes would be. If you and your siblings are joint owners of the house and one of you wants to live there, the future resident can buy out the others, pay them rent or work out another arrangement.

If you sell the house, you will need to pay taxes on any increase in value between the time of inheritance and the time of sale. Consult a real estate agent on the need for repairs, the local housing market and how much money you could realistically expect to earn from the sale.

You might be able to make money by renting out the property, but you need to consider the potential costs. You would be responsible for taxes and insurance. You would also be personally responsible for maintenance and repairs, unless you hired a property manager. That would cut into your profits but could also make renting the house less stressful. You would need to thoroughly vet prospective tenants to avoid dealing with missed rent payments, damage and possible eviction proceedings.

Think Things Over Carefully

The death of a loved one is an emotionally painful experience that can leave people feeling overwhelmed and struggling to make decisions. If you have inherited a house, it has likely created a host of financial and emotional issues that you were not anticipating. Talk to your family and ask professionals for advice so you can make the right choices.

Red Flags to Look for When Shopping for a New Home

When you look at a house you are thinking about buying, you may love the charm, landscaping, amount of space, or other features. But you should also approach a home viewing with a critical eye and be on the lookout for red flags.

Maintenance Problems

As you tour a house, look for indications of how well it has been maintained. Cracks in the foundation could jeopardize the structure of the entire house. Strange odors could indicate mold or an animal or insect infestation. Clogged gutters could lead to roof leaks, damaged siding, and foundation and landscaping problems.

Problems with the windows could lead to high utility bills and expensive replacement costs. Check the windows to make sure they open and close property. If you notice condensation on the windows or between the panes of glass, that could indicate that the windows are not functioning as they should and need to be replaced.

As you walk through a house, turn on the lights in each room to make sure they work. Flickering lights are a sign of an electrical problem. Check the outlets to make sure they function correctly. A faulty outlet or one that gets unusually warm could indicate a localized or widespread wiring problem

Is the Owner Hiding Something?

Homeowners often paint the walls to make a house more attractive to prospective buyers. A fresh coat of paint could be a good sign, or it could be an attempt to cover up mold or water damage. If you notice a musty odor, the owners could be trying to conceal a problem.

If you are not allowed to enter a particular room, that could be because something valuable or personal is stored there or because the room is undergoing repairs—or the owners could be trying to hide something. If you are not permitted to see a room, ask the real estate agent why. A vague or unsatisfying answer could be a red flag. If the agent provides what you consider to be a reasonable explanation, you should still ask to see the room before you agree to buy the house.

Look Around the Block

Consider the neighborhood as a whole. If other residents don’t seem to take care of their houses and yards, that could drive down your property values if you were to buy a home there. Several houses for sale could suggest a variety of problems with the neighborhood, such as noise, traffic, crime or interpersonal conflicts.

Get as Much Information as Possible

It’s natural to be excited when viewing houses, but approach each with a healthy dose of skepticism. Look for signs of trouble and ask the real estate agent a lot of questions. Before you commit to buying a house, be sure to have it inspected by a professional. Some red flags are obvious, while others are hidden. Learning as much as you can before a purchase can save you a lot of time, money and stress later on.

Understanding Your Property Taxes

Local governments and school districts raise a large portion of the money that pays for education, emergency services, transportation and other public goods through property taxes. The amount that individual homeowners pay is determined by the assessed property value and the mill rate. Each of these is calculated through a complex process.

How Property Values Are Assessed

An assessor will determine the value of your home. That value can change over time due to depreciation, improvements you make, and the local economy and housing market. Assessors may use any of three methods to calculate the value of a home. In some cases, they use a combination of two or more methods.

One way to determine the value of your home is by looking at the sales of comparable properties in the area. Those figures are used as a baseline and can be adjusted to account for the location of your property, the amount of land and any upgrades you have made.

Another way to assess the value of your house is to figure out how much it would cost to replace it if it were destroyed. That calculation will include local material and construction costs.

A third method of assessing your property’s value is to calculate how much income you could generate by renting it. The assessor will consider market value and will deduct costs to manage and maintain the property, as well as insurance premiums and taxes.

You should receive a statement showing the assessed value of your property. If you disagree, you can submit relevant information and ask the assessor to review the calculation taking the additional facts into account. If you accept the assessment, you will receive a separate property tax bill.

How Tax Bills Are Calculated

A mill levy is a tax rate used to determine how much property owners must pay. One mill is equal to one-tenth of one cent. County and local governments and school districts set their own mill levies based on the amount of money they need to raise and total property values in the area under their jurisdiction. Property owners then pay a mill rate that can include a total of county, state or town, and school district mill levies.

The mill rate will be multiplied by the assessed value of your property to determine your property tax liability. You may receive a tax bill once a year or once every several years, depending on the government’s policy. If you have any questions about how much you will owe and when, you can visit the assessor’s office or look up the information on its website.

The Benefits of Understanding How Property Taxes Work

Property taxes can vary widely based on where you live, the value of your home, and how much money the local government and school district need to raise. Knowing how your home’s value is assessed and how property taxes are calculated can help you avoid being shocked by the size or timing of the bill.