13. Help others. If you really want to save money and experience the true meaning of the holidays, consider volunteering at your local soup kitchen. You'll both help those less fortunate and get a free meal. Include the whole family. We're never too young to learn to give.

Photo by James Callan

It used to be you could balance your checkbook, monitor your ledger and not have to worry about overdrawing your checking account. But the widespread use of debit cards, combined with bankers greed, have led to a surge in overdraft fees that make it difficult to ascertain your exact balance. Banks and credit unions collected nearly $24 billion in overdraft fees last year -- up more than 35-percent from just two years ago.

You can reduce your chance of receiving those alarming overdraft-notification letters by arming yourself with a little knowledge to regain control of your checking account. Here are six ways to protect yourself from debit-card overdraft fees.

1. Learn your bank's policies. Surprise, surprise -- your bank will continue to withdraw money, even if you don't have sufficient funds. Your debit card use may be approved even when there isn't actual money in your account. Thirty-five percent of banks and credit union let customers overdraw their accounts at ATMs or with debit cards, and charge anywhere from $20 to $35 for the privilege.

In another tricky maneuver, large banks like to process the largest charge they receive first, despite the order in which it was purchased. So if you make two charges for lattes before you buy a flat-screen television, the bank will likely process the television charge first and you'll be hit with two overdraft fees for the coffees.

2. Shop around for the best overdraft policies and fees. In general, you'll find smaller banks and credit unions have lower fees and fairer policies, but don't ignore the larger chains. Bank of America recently announced it would not charge overdraft fees on more than four items per day. Nor would it charge fees on an account overdrawn by less than $10 a day. J.P. Morgan Chase  followed suit and said it would levy overdraft fees no more than three times a day and would not charge overdrafts on accounts overdrawn by less than $5. You can still be slammed with an overdraft fee, however, should your account hit $5.01 in overdrawn funds.

3. Danger lurks at a point-of-sale terminal. Every time you make a purchase at a store with your debit card and it's approved at checkout, another screen pops up asking if you'd like cash back. This makes it handy to grab some cash without paying any ATM fees, but by clicking on that "Yes" button, you could be overdrawing funds without knowing. These POS terminals don't indicate your bank balance and won't signal if you're about to pull out too much money. According to The Center for Responsible Lending, these POS transactions are the leading cause of overdrafts, generating about 35 percent of such fees.

4. Opt out of overdraft protection.  Most banks automatically enroll you in some type of overdraft-protection program without being asked.  Congress and the Federal Reserve Board are now working to make changes in this policy and such banks as Chase and Bank of America have revised their policies to require customer opt in when they open an account. That doesn't help for those already enrolled, however.

If you find you're racking up a formidable amount of money in overdraft fees, you can opt out of the program and have your charges denied if you overdraw.  Or you might have your checking account linked to your savings account or a line of credit. You'll have to pay interest on the line of credit but it likely will total less than any overdraft fees. You then can deposit money into your account quickly to cover the shortfall and avoid further interest charges.

5. Watch out for "holds." Occasionally, when you make a purchase with a debit card, a vendor will place a "hold" on you account to ensure you don't spend that money before the bank processes the charge. However, that hold may be placed for more than you actually spent, particularly  when the final bill is unclear, such as charges at the gas pump or a hotel.

These holds can't be placed for more than three days, but that's more than enough time to create a waterfall of cascading overdraft fees, particularly when there's no way for you to know that a hold has been placed.

You can avoid such holds by using your debit card's PIN transaction fee for purchases, rather than the signature feature. A PIN transaction withdraws money directly from your account, so holds can't be placed. If you prefer to use the signature option, pad your account with an extra $100 or link it to your savings account or a line of credit.

6. Beg. Don't assume a pile of overdraft notices means an automatic loss. Call your bank to see if they're willing to cut you a deal, particularly if it isn't a common occurrence. If you're a good customer, banks are more likely to be interested in keeping your business and will waive the fees. If you meet with a stone-wall refusal, consider taking your business elsewhere.

7. Use technology. If you have a hard time keeping track of your balance, some banks will send you an alert by email or text message with notification that your balance has fallen below a pre-established amount. 

1. DO watch how much you spend.  It's very easy to get hit with overdraft charges when you're not keeping an eye on your balance. New laws restricting over-limit fees on credit cards don't apply to overdraft fees on debit cards. With such fees skyrocketing of late to $35 per overdraft, you can find yourself in a very big hole very fast. Watch out for banks that automatically enroll you in overdraft protection programs, as well. These often carry an annualized interest rate that exceeds 3,500 percent. Don't forget to figure in automatic withdrawals to pay monthly bills when calculating you're balance.
2. DON'T use debit cards for large purchases. Debit cards don't offer the same protection as you receive with credit cards. Nor do they allow you to reverse or dispute charges. Some credit cards even offer an automatic extension of warranties.
3. DON'T use a debit card online. If you lose your credit card or have your identity stolen, your liability for unauthorized charges is capped at $50, while the cap for debit cards can run as high as $500 if you don't report the loss within 60 days. If you haven't reported the loss within 60 days, you may be responsible for all charges made until the report is filed.
4. DO click on "credit" and sign for payments, instead of using your PIN. Some card companies extend the same zero-liability protection to debit cards as they do to credit cards, if the debit cards are processed as credit cards. PIN transactions may not have that protection.
5. DON'T link your debit card to an account with a large balance.  Thieves can empty out your debit-card-linked checking account in no time, particularly during the holidays when there is less oversight. Keep only enough in your account to cover purchases and remember to watch that balance as you spend.
6. DO use your credit card if you have no debt burden, always pay off your monthly balance and are saving up frequent-flier miles or to receive a cash rebate. The holidays traditionally are when you'll use your credit card the most, so take advantage of this larger balance to rack-up the benefits.

Many debit cards also carry the Visa or MasterCard logo. These cards are accepted anywhere Visa and MasterCard are accepted and they work just like other debit cards, in that the money is deducted from your bank account immediately.

Photo by mrfink

Growing up, I remember my grandmother swore by cleaning with vinegar for…just about everything.  As with so much other advice she gave me, she was right! For those of you who think cleaning with vinegar is old-fashioned and outdated…think again.  Vinegar is frugal to buy, fabulous to use, and eco-friendly too – what more could you ask for?!  The good news is you can clean and “green” your house – all on a lean budget! Here are our top ten tips for getting your home very clean with vinegar (we’re talking white vinegar, not the apple cider variety!)

1. For sparkling glass and mirrors, just mix a solution of water and vinegar and clean with a crumpled up newspaper – you’ll never waste money on store bought sprays again!

2. You know how coffee pots always say to clean every month or so to keep coffee tasting great?  Seriously, look inside the reservoir and you too will be dashing to clean it out. I ran a solution of vinegar and water through it twice, and then one rinse cycle of plain water  (check your appliance for specific instructions) and I have to say my coffee tastes better than ever.

3. Clean make-up brushes – instead of throwing money away on pricey solutions at the store, just soak brushes in a solution of one part vinegar to three parts water and swish – make sure you rinse well.

4. Air freshener – in my opinion you cannot beat vinegar as an air freshener. No one likes the smell of a lingering cooking odor semi-covered up with a heavy floral scent so if you got inspired to cook a fishy dish at home but don’t feel like living with the smell for the next three days, try this simple, effective idea for air freshener. Simply boil a combo of vinegar and water on the stove, the air will be deodorized in no time, and without smelling like a seafood truck and a fresh cut flower truck had a nasty run in!

5. Ever get weirded out by wondering what sort of chemicals they put in your dishwasher rinse agent?  If Jet Dry is freaking you out, just try vinegar instead!  A ½ cup of vinegar in the dishwasher will leave your glasses spotless and sparkling – without the need for adding any neon blue solution to your machine.

6. Add some vinegar to your laundry to deodorize and also help remove soap residue from within the machine! Really helps keep your workout clothes smelling fresh and clean.

7. Lice scare at school? Rinse your child’s hair with a vinegar solution…Use a spritzer bottle with a vinegar and water mixture and comb it through.  Apparently lice don’t like the acidity and it also make your hair super smooth so they slip off it!

8. Vinegar can also be great for grout; clean and disinfect your tiles with vinegar and water and an added bonus is that it helps keep the grout from graying or yellowing.

9. No wax linoleum? No problem--it will shine more if wiped down with a solution of ½ cup white vinegar in a ½ gallon of water.

10. Unclog a shower head! Unscrew it, remove the rubber washer, and place the head in a pot filled with equal parts vinegar and water, bring to a boil and then simmer for five minutes.  (You’ll also kill two birds with one stone because you’ll be freshening the air in your house while cleaning the shower head – see tip 4 aka “Fish and Roses”).

What is your favorite vinegar cleaning tip?

• Think turkey instead of tinsel. Priceline notes the average Thanksgiving airfare booked this year from July 1 to Oct. 1 is $361, almost $80 less than the average December holidays airfare of $440.


• Be flexible on dates and airports. Several major airlines have imposed new surcharges of $10 each way for travel on peak travel days directly before and after the holidays. Moving your trip a day or two in either direction can save you 20 percent or more.  


• Consider alternate airports. Landing or departing from nearby airports can reduce ticket costs. For example, avoid Chicago's O'Hare and drive one-hour south to Milwaukee, where holiday fares are down by more than 30% this year, thanks to new competition from AirTran and Southwest.


• Fly nonstop out of a popular airline hub. You'll find more competition among airlines at a hub, and thus better pricing. Best of all, by flying nonstop you won't be stuck eating airport food, lugging presents and carry-ons between planes, or increasing the chance of your luggage being lost.


• Beware of baggage fees. You'll probably be dinged an extra $15-$25 for checking luggage, unless you're prepared to mail gifts ahead and go the carry-on route. Save time and money ($5-$6 a bag) by checking in from home via the airline's Web site instead of at the airport.


• Don't be a Scrooge. If a price seems reasonable, buy it. Airlines might still add additional cheap-seats closer to the holidays, but you can risk missing out altogether, not being able to book with traveling companions, or paying more than you would like.


• Don't go at all: The best alternative this year may be to avoid the stress and cost of visiting home for the holidays and see your family in 2010, when you can travel on your own time schedule without extra fees.

For more tips, follow @Travel_Ticker, one of the top 21 Twitters to follow, according to Conde Nast Traveler’s Oct. ‘09 issue.

• Growing a Family

On my husband's trip to Africa, the most frequent question asked by men in the local tribe where he volunteered was about children.  "Why do Americans only have one or two children?  You have so much money."  Peering into a one-room hut with seven children, he couldn't muster a decent response.  The old adage rings true: if you wait for complete financial stability to have kids, you will die childless.  We have become confused in our culture to equate children with huge expenditures of money.  Don't get me wrong--it does cost extra money to grow a family.  But not the quarter million that sensationalist media makers like to proclaim.  You may have to forgo the $400 jogging stroller or electric wipe warmer.  Sacrifice is key here, not over-indulgence, which is what most of us assume is required.

The Splurge: Maternity coverage and baby medical bills will top the list of potential debt crashers.  But aside from less expensive (and potential more risky) options like home birth, they are unavoidable.  Stick to cloth diapers, breastfeeding, and second hand stores for all baby gear.  If you are really low on cash, contact your local police department--they often have a surplus of donated car seats that haven't been in an accident.



• Special Travel

No, no, my quicksilver credit card swashbucklers.  This is not a free pass to rack up debt on a yearly vacation to the South Pacific.  And I don't recommend charging the entirety of your trip, regardless of merit.  But some travel can't be postponed--you just have to make a wise call.  I especially don't recommend jet setting if you have a mound of extra debt hanging over your head.  It's far more difficult to enjoy a trip if you're plagued with bills at home.

The Splurge: Consider traveling to other countries if you have friends or family who can put you up for no cost.  Temporary military or time-share placements would allow you to visit whereas you could never afford it.  Seeing family for health or celebration purposes would also be a legitimate reason to pay in plastic money.  



• House

Unless you've saved for a decade and a half plus owe no money for anything else, buying a house will surely tack on debt with interest.  The alternative is even more of a sieve.  Paying rent for that amount of time is a huge burden with no long-term equity--plus apartment living is a nightmare.  Live as far under your means as possible to stash a huge down payment before living out the American dream.  Steer clear of FHA loans to avoid paying extra fees in insurance that you won't recoup.  

The Splurge: Save up at least 20% for your down payment.  That's a wad of cash, but you'll have a much healthier mortgage and room to pay off your loan faster than 30 years.  Pay down the house debt as aggressively as you can without neglecting your retirement and kids college savings.  Make sure your monthly payment is no more than 25% of your total household income and you'll be able to sleep at night.



• Partial Business Investment

So you've dreamed up the idea of the century--it's a "win-win" (even though your spouse isn't so sure) and you believe in it enough to go into debt for it.  Do not, I repeat, do not go into a business with none of your own money.  This seriously impairs your judgment.  What may look like an airtight moneymaker in Monopoly cash, in fact, a total pit.  Ante up your own dough and the outlook becomes startlingly clearer.  You need to have researched the idea completely and be vested financially before moving forward.

The Splurge: Try to make up the difference you need to start your venture with an investor rather than a bank.  And unless you can comfortably live with the loss, don't do it.  Snappy business ideas need not be the bearer of bankruptcy.  But the biggest rewards in business often require the most risk.

 

Photo by joshbousel

In our overly politically correct society, it's a conundrum that marketing around the annual birth date of Jesus Christ becomes fiercer each year.  Just what is the purpose of Christmas trees sans angels and the rabid replacement of "Christmas" with "holidays"?  Most people have no self-reflective radar on the meaning behind trudging off to the mall and digging into debt for some nebulous tradition.  After all, how do "holidays" motivate folks to buy, if not out of obligation?

I don't offend easily, but the aggressive Christmas marketing strategies are enough to make me boycott gift buying.  If you want to take a stand against commercializing Christmas, you don't have to swear off buying completely.  Just be smart and follow these savvy shopping tips to avoid becoming a "holiday" lemming.    

1. Make your own gifts.
Get Rich Slowly has an amazing list of 34 easy-to-make Christmas gifts.  Who doesn't love a jar of hot chocolate mix or a homemade gingerbread house kit?

2. Never enter a mall without a list.  No browsing allowed.
The music alone will lure you to the cash register.  I'm convinced stores pipe in cookie scent too.  If you must go to a physical location to purchase, enter at your own risk with an agenda in hand.

3. Avoid shrink-wrapped gift packages.
Nobody likes the generic body lotions and candle sets.  I'm sorry if you've been that aunt thus far, but it's time to stop.  No more gift sets.

4. Give only to charities.
Shop within your budget for a selected charity.  Don't give blindly, but rather research each option and make a few phone calls to verify what they need.  Nonprofit organizations have specific requirements for donations, so don't assume your benevolent gesture will be appreciated unless it matches their needs.

5. Shop online only.
Recognize your Pavlovian nature and avoid the "holiday" mall environment all together.  Most stores offer free shipping this time of year--you'll probably find better deals online anyway.

6. Spend time learning about Christmas Day.
If you've been indulgent to your children in the past and want to scale back, don't make the big reveal Christmas morning.  Spend several weeks ahead of time studying the reason for the season and help the kids reach a reasonable conclusion about the proper place for family gifts.

7. Suggest a secret Santa gift swap.
Rather than purchase twelve tiny gifts for immediate family, initiate a gift swap.  This frees up a lot of cash to purchase one nice gift rather than a bunch of junk.  Set a price limit on the swap to avoid huge discrepancies in gifts.

If you scoff at going against the "holiday" grain, it may be because you are lazy.  You'd rather procrastinate a thoughtful gesture until five days before Christmas only to find yourself racing through the mall during extended hours spending far too much on the credit card.  Participating in a meaningful Christmas celebration will take more preparation up front.  Enjoy Christmas responsibly, and keep it in its right place.