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Parents contributing to a 529 college savings plan may find it difficult, if not a little time-consuming, to transfer cash and checks that their children receive on their birthdays, Christmas and other celebrations into the popular college savings fund.

Instead of not knowing if their cash gift is going to pay for college or for a night out on the town, grandparents and others can buy gift cards and have the money deposited in the student’s college savings plan.

The 529 gift cards are used at GiftofCollege.com, a registry for online gifts to 529 accounts.Electronic gift cards for 529s are available at the Gift College website. The 529 gift cards come in fixed amounts of $25 or $50, and in variable amounts up to $500.

Some of the gift cards promote a specific state plan, but all of them can be redeemed as a deposit into any state’s 529 plan.

A 529 plan is a state-run program for families to invest in for college expenses. The money grows tax-free and can be withdrawn tax-free to pay for education. Contributions aren’t deductible from federal income taxes, but many states allow the deductions on state returns.

Recipients must create a profile on the Gift of College website to redeem the card and have the money put into their 529 plan. If they don’t yet have a 529 plan, their parents must first create one for them in order for the money to be transferred.

The Gift of College cards carry a fee of $3.95 to $5.95, depending on the card’s value, and it’s paid upfront by the buyer. There is no fee for redeeming the card, so a $25 card will equal a $25 deposit to a 529 plan.

To avoid paying the fee, givers can obtain the child’s 529 account number and send a paper check directly to the plan with the 529 account number on it. Some plans also allow direct online gifts, though parents have to initiate the transaction.

Published with permission from RISMedia.

If you want to make an important purchase but do not currently have the money, you dont necessarily have to put things on hold. If you own a house and have been paying your mortgage for several years, you may have enough equity to qualify for a home equity line of credit, or HELOC. Before you take that step, you need to understand how a HELOC works and ask yourself whether the purchase you want to make is worthwhile and whether you can handle the responsibility that comes with accessing your homes equity.

How it Works

A HELOC is a line of credit that draws on the equity in your home, which is the current value of your home minus the amount you still owe on the mortgage. You may be able to receive as much as 80 or 90 percent of your homes equity as a line of credit. You can use that credit all at once or a little at a time to lower your interest rates on credit card balances, make home improvements, buy a car or cover college costs.

The money will need to be repaid at an interest rate that is based on the amount of equity you have and your credit score. Interest is only charged on the amount of equity that is used. In most cases, your payments for the first several years will only go toward interest. The interest on a HELOC may be tax-deductible.

Is a HELOC Right for You?

Before you take out a home equity line of credit, you need to think carefully about your personality, habits and situation. First of all, ask yourself if you are considering a HELOC for the right reasons. If your house needs a major repair that cannot wait, or if you’re struggling to pay your credit card balances because of high interest rates, a HELOC could be a wise move.

Once you obtain a HELOC for one purpose, you’ll continue to have access to the remaining equity. If you can handle that temptation, it wont be a problem. On the other hand, if you know you wouldnt be able to resist the urge to use your homes equity to finance a lavish vacation or a shopping spree, you should avoid a HELOC because you could get yourself into serious financial trouble. If you get in over your head and are unable to make the monthly payments on time, you might lose your house in a foreclosure.

Weigh the Pros and Cons

A home equity line of credit is a tool that has helped many homeowners finance necessary purchases that they would otherwise have been unable to afford. It’s important to consider the risks and to use a HELOC responsibly. Before you sign on the dotted line, carefully consider whether you’re doing it for the right reasons and whether you can handle the temptation and responsibility that comes with using a home equity line of credit.

Published with permission from RISMedia.

Regardless of how much time you spend cleaning, there are likely to be a few places you overlook. Below are five frequently missed spaces that may need a little elbow grease.

Baseboards. While cleaning, look down. The baseboards running along the floor may likely need a little TLC, as they commonly pick up dust and debris throughout the year. Give them a scrub at least twice annually.

Doors. When is the last time you washed the surface of your doors? How about the door jambs? Doors get a ton of traffic, especially to high-use places like the bathroom. Give them a wash at least twice a year to remove fingerprints, dust and grime.

Behind appliances. Pull out the fridge and stove and take a look at what’s lurking back there. In addition to dust, you could find food scraps that attract critters, and even missing cooking accoutrement.

Stairs. Look closely at your staircases and you will likely find a thick layer of dust in the crevices and cracks. Give them a sweep or a vacuum to keep them in top shape.

Cabinet interiors. At least once a year, empty everything out of your cabinets and give them a wipe down. This will remove dust, mildew, cobwebs and any critters that may have moved in. Bonus: with everything out of the cabinets, you now have the ideal opportunity to reorganize! Win!

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As a young parent, you may just be learning about all the responsibilities parenthood requires. When it comes to financial planning, setting your sight on the future can help immensely.

Demolish debt. Slaying your own debt will positively impact your family’s financial future. While it may take years to pay off those student loans or credit card debt, creating a plan can help. Tackle your lowest balance first to gain momentum then take on the next smallest. Additionally, pay attention to higher interest rates that are costing you a lot of money.

Build a budget. Creating a budget doesn’t have to be hard. There are many budgeting apps available on the market to help you track your expenses, or you can try the trusty envelope system with monthly allowances for groceries, entertainment, utilities, etc.

Build an emergency fund. Setting a fund for potential emergencies will never backfire. Aim for a small, achievable goal as low as$500then set the bar higher. Participate in your employer-sponsored savings program to boost retirement savings, especially if there is a match. Make it an automatic payroll deduction and increase it when your paycheck goes up. As far as your child’s college savings, save what you can, when you can. Every little bit will help when education bills come due.

Child care. Consider establishing a flexible spending account if one is offered by your employer. Parents can use pretax dollars to pay up to$5,000in child care expenses in most states.

Review insurance and important paperwork. Create a will either by using an online program or hiring a professional to name your child’s guardian, and designate at what age any payouts, savings or investments will be distributed. With health insurance, notify your employer within 30 days of the birth to ensure that the child is eligible for any dependent benefits. Purchase appropriate health care coverage to protect your family. Review your employer’s life insurance plan and determine if it is adequate for your needs. If not, consider purchasing additional life insurance.

Source: SmartAboutMoney.org

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One of the easiest ways to build credit and improve a credit score is to open a secured credit card. Whether youre young and new to credit, or are looking to improve your credit score because of past financial problems, a secured credit card can help.

Instead of providing a high credit limit like an unsecured credit card does, a secured card uses a deposit that you provide”such as $500″as your credit limit. The credit card issuer pulls money from the deposit if you dont make a credit card payment.

For people with no credit history or poor credit history, a secured credit card may be the only type of credit card they can get. Someone with no credit is likely to benefit the most from a secured credit card because there wont be any negative information on their credit report.

For those with bad credit, a secured credit card may help raise their score, but it may be a slower process because of the negative information thats already on their credit report.

To get the most out of it, use as little of the available credit as you can. This will leave you with a low credit utilization rate, which can improve your credit score. The best thing you can do is not miss any payments, since late or missed payments have the biggest impact on a credit score.

The credit reporting agencies will look at a secured credit card with the same criteria as an unsecured card. These include when the card was opened, the credit limit, balance and payment history. The benefit is that a secured credit card should be easier to qualify for so that a consumer can build their credit.

Just like unsecured credit cards, secured cards can have annual fees. Eventually, you should see your credit score improve enough so that you qualify for an unsecured credit card with a higher credit limit. You can then cancel your secured credit card and get your deposit back. And having your $500 or so back in your hands may feel just as good as having a higher credit score.

Published with permission from RISMedia.