For the love of money and your SO

As we approach Valentine’s Day this year, our team at Family Services wants to make sure that you and your loved one have the best V-Day possible.

One of the most detrimental stressors for couples has to deal with money.  A recent January poll conducted by the National Foundation for Credit Counseling (NFCC) revealed that nearly half (47%) of respondents claimed disagreements about money are most likely to cause the greatest stress in their relationships.

Family Services has a few suggestions to make sure finances don’t get in the middle of you and your other half this Valentine’s Day. First of all, if you have disputes over money with your loved one, do not let them go unaddressed! Instead, hit the ‘pause’ button, and have a sit down with your partner. 

“Most people have a different approach to money management than their spouse or partner. Left unaddressed, those differences can lead to the end of the line for many couples. Understanding those differences means having honest discussions early in a relationship so the rules are mutually accepted and the financial goals are clear. No matter the differences or challenges, the best approach is to start communicating early” said Bruce McClary, spokesperson for the NFCC.

The NFCC recommends the following guidelines for couples:

• Be honest with yourself and each other when it comes to financial matters. As financial challenges appear, work together to address them directly instead of ignoring problems and wishing they will resolve themselves.
• Establish money rules for the relationship and hold each other accountable. Discuss what will be jointly managed and set rules for making independent spending decisions.
  
  
• Don’t conceal debt or sources of income from each other. Financial infidelity should be taken as seriously as any other form of cheating. Adhere to a policy of financial transparency to strengthen trust in the relationship.
  
  
• Set a time and place where financial matters can be discussed on a regular basis, free of distractions.
  
  
• Keep the tone of the conversation casual, and remain open to what each other has to say.
  
  
• If a disagreement should go unresolved during a conversation, take a moment to find acceptable ways to compromise or consider revisiting the issue after a short time-out.
  
  
• If a financial mistake is made, couples should work together to find solutions without assigning blame. Be willing to accept a fair share of the responsibility for the problem and the solution.
  
  
• When tracking joint financial goals, understand that changing circumstances require a degree of flexibility from both partners in a relationship.
  
  
• Understand that a single financial setback impacting one person ultimately affects the entire relationship, no matter how large or small the issue.

Family Services understands that finance can be a very strenuous subject for couples, and we are here to help. Seeking assistance from Family Services can help bring your finances to good health, making it easier to focus on other aspects of the relationship. Visit our website at www.fsisc.org or call us at 843.735.7802 to find out more about our services. 


By Jeff Lewis

Why Financial Capability Matters in 2014

Last year, the White House declared April Financial Capability Month, proclaiming that “all Americans deserve the chance to turn their hard work into a decent living for their families and a bright future for their children. Seizing that opportunity takes more than drive and initiative -- it also requires smart financial planning. During National Financial Capability Month, we recommit to empowering individuals and families with the knowledge and tools they need to get ahead in today's economy.”

With the unemployment rate in South Carolina steadily decreasing from 8.1 percent in February 2013 to 6.4 percent as of February 2014, it’s crucial that those gaining employment use practical money management skills. That’s where financial education comes in. Financial education is a means to help alleviate and prevent poverty. Although the unemployment rate is down in South Carolina, the number of those in poverty is up. Currently 1 in 5 South Carolinians live in poverty compared to 1 in 6 in 2000. That’s nearly 300,000 more residents.

Image via Pearson Foundation

Regardless of your economy or your household income, it’s important to realize that financial education matters. Those individuals who receive it are more likely to make the right financial decisions for themselves and their families that will help them build and maintain assets. When people are buying houses, maintaining a home or steady residence, and are paying on their debts, it positively affects the local economy.

Financial education is more than just gaining a budgeting tip here and a saving strategy there. This knowledge converts into skills, which convert attitudes, and those attitudes affect behavior. What you’re left with is healthy financial habits. Those that take charge of their personal finance and choose to become informed consumers avoid scams, predatory lending and other deceptive practices, and can effectively address their needs versus wants.

Family Services, Inc. (FSI), as a charter member of NeighborWorks America, aligns itself with the initiative to help end poverty and raise better awareness for financial education. Their staff of licensed professionals is dedicated to highlighting the importance of financial capability and helping those in the community establish and maintain healthy financial habits. Through its programs and services, FSI advocates, counsels, and educates for clients so they can make the most of what they have.

Written by: Sarah Cornwall, Marketing Resources, at Family Services, Inc.

How to Save Big on Healthcare

You have probably heard that big changes are coming to healthcare this month, but you might not be sure how it affects you. Here's what you need to know to save big on healthcare this year.

The Affordable Care Act caused state healthcare exchanges to open on October 1. A healthcare exchange is a kind of marketplace where insurance companies offer different plans to consumers.

However, just because these plans are available to you does not mean that you should automatically drop your employer's insurance. This is because, under your company's insurance, your employer is actually paying for some of your coverage. 

On the other hand, there are specific circumstances that may make shopping the healthcare exchange worth your while. If you fall into one or more of the categories listed below, you should consider shopping the exchange for a better deal on your healthcare coverage:

• More than 9.5% of your household income goes to health insurance. Even if you have your company's healthcare insurance, you may be paying a significant portion of the cost. If so, you can drop your company plan and find assistance in the state healthcare exchange. 

• Your employer pays for less than 60% of your healthcare costs. This is another indicator the government uses to identify inadequate coverage. It usually applies to high-deductible plans. 

• You work for a company with less than 100 employees. The Affordable Care Act only requires companies with more than 100 employees to provide health insurance. If  your employer offers no or minimal coverage, you might be able to find a better plan at the exchange. 

• You earn less than 400% of the poverty level. If you qualify for a government subsidy, shopping the healthcare exchange is a good idea. To qualify for a subsidy, you must earn between 133 and 400% of the poverty level. If you fall below the 133% mark, you qualify for Medicaid. If your income is above the cutoff point, you can still use the exchange to shop for health insurance. However, you will not receive a tax break. 

Whether or not you are enrolling in the healthcare exchange, there are other ways that you can save on your medical expenses. One way is to have a healthcare savings account. It could save you money on taxes as well as provide free money for medical bills. Here are THREE types of healthcare savings accounts to consider:

• FSA - A Flexible Savings Account is set up through your employer and puts pretax dollars aside for medical expenses. FSAs are especially helpful for expenses that you know are coming, such as paying for children's braces. In order to be reimbursed, you must turn in your receipts. When using a FSA, it is important to budget carefully since the money must be spent within the calendar year or it returns to the company. 

• HSA - The money in a Health Savings Account can be invested, so it could earn more for you than if it was just sitting in savings account. The earnings are rolled over every year, and you can withdraw all of it when you turn 65. These accounts are available through employers and banks, and many of them come with fees. To sign up, you have to a high-deductible insurance policy.You must also be careful not to use the funds for a non-qualified medical expense before you turn 65. If you do, the IRS will add an extra 20% to your federal taxes. 

• HRA - The only type of account that employers completely fund is a Healthcare Reimbursement Account. The money in this account will stay there from year to year, and it covers nearly everything that a FSA or HSA would. While some require you to file a claim, others simply give you a check card to use for your health expenses. However, you do not keep the money once you leave that job, so keep that in mind if you are preparing to retire or change careers. 

With these tips in mind, you should be well prepared for the coming healthcare changes. If you have any other ideas on how to save money on medical expenses, please share them in the comments below!

Written by: Meg Thompson, Marketing Resources, at Family Services, Inc.

April's Credit Club!

Click here to register!!!

Conquer Your Credit Fears by Attending the Credit Club!

Become informed and educated on topics of interest that will help you to understand and effectively manage your credit. The Credit Club meets on the first Thursday of every month to discuss various topics that relate to individuals improving their credit and financial stability. Credit Club sessions are facilitated by a licensed Credit Counselor and/or a professional in the subject area to be discussed.

Next Credit Club Meeting is this Thursday, March 1, 2012:

Join us this Thursday and learn about “Car Buying- Tricks and Treats”. Issues to be presented by a former car salesperson and a former finance manager will include:

· What your car dealer doesn’t want you to know;

· Confessions from a car dealers back room;

· How to buy a new car;

· Winning in car negotiations.

What You Need to Know:

There is no charge to attend the Credit Club meetings but pre-registration is recommended. The Credit Club meets at 4925 Lacross Road, Suite 105 in North Charleston from 6:00 pm – 8:00 pm. For more information and/or to register to attend a FREE Credit Club meeting call 843.735.7862 or visit us online at www.fsisc.org and view our calendar of events.

Use Leap Year to Get Your Financial House in Order

NFCC Offers Financial To-Do List for February 29

Washington, DC – If there’s one thing everyone wants, it’s more time, and that’s exactly what we have this year. A once every four-year phenomena of the calendar known as Leap Year is providing us with 24 extra hours this February 29.

For some, the day will come and go with little to show for it. However, with a little forethought, people can use the extra hours to make a difference in their financial lives. The National Foundation for Credit Counseling (NFCC) suggests that consumers dedicate this gift of time to tackling the financial tasks they may have been putting off.

Prepare federal income taxes. Gather all 1099s, W-2s, and receipts related to eligible deductions. Whether filing on your own or through a professional, these items will be needed to prepare an accurate return.

Create or organize a home financial center. Since the financial documents are out, create files for each category. This step will help you stay organized all year long, and will make preparing next year’s tax return much simpler.

Review all insurance policies. The time to become familiar with insurance policies is not when you make a claim. Insurance is not something to buy and forget, as life changes often dictate adjustments to the policy. Make an appointment with your insurance provider to confirm that your current needs match your coverage.

Review retirement contributions. Due to the payroll tax cut, working Americans now have extra money in their paychecks. The best use of this money could be increasing the retirement contribution at work. Make sure to maximize the benefits of an employer match and age-related allowable contribution increases.

Order your credit report and score – With good reason, people are very interested in their credit score. However, many do not realize that the score is based on the information in the credit report. In spite of it being free through www.annualcreditreport.com, the NFCC Financial Literacy revealed that 65 percent of Americans had not ordered their credit report in the last 12 months. The credit score didn’t fare any better, with 63 percent of respondents indicating they’d not ordered their score. Even though there will be a small fee charged to obtain the credit score, it will be money well-spent, as these three numbers dictate much of your financial future.

“Those who use the extra time afforded by Leap Year to accomplish these five financial moves will wake up March 1^st with a well-earned sense of accomplishment,” said Gail Cunningham, spokesperson for the NFCC. “The efforts they put forth on this bonus day will yield rewards throughout the year.”

If you need free or low-cost professional help putting your financial house in order, reach out to an NFCC Member Agency today. To schedule an appointment with a Certified Credit Counselor at the agency closest to you, dial (800) 388-2227, or go online to www.DebtAdvice.org. For assistance in Spanish, call (800) 682-9832.

The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation’s largest and longest serving national nonprofit credit counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services. NFCC Members annually help more than three million consumers through close to 800 community-based offices nationwide. For free and affordable confidential advice through a reputable NFCC Member, call (800) 388-2227, (en Español (800) 682-9832) or visit www.nfcc.org. Visit us on Facebook: www.facebook.com/NFCCDebtAdvice, on Twitter: twitter.com/NFCCDebtAdvice, on YouTube: www.YouTube.com/NFCC09 and our blog: http://financialeducation.nfcc.org/.