What I’ve Been Up To

This morning I was on TODAY to talk about how to buy, among other things, an airplane ticket (if you missed me, you can catch a video of the segment here). Research from Expedia and the Airlines Reporting Corporation says that the best time to buy a domestic flight is 50 to 100 days in advance, which makes right now the sweet spot if you’re planning to travel in June or July. Buying your ticket during that window could save you an average of $85.

There’s also some new advice out now for how to find the best fares once you start your search. The Wall Street Journal reported last week that a few changes are coming down the pike that will shake up how we search for tickets online: Google has quietly launched a flight search site and Expedia recently purchased Travelocity (and will likely acquire Orbitz later this year). In the meantime, the WSJ says you should start by shopping on search — not sales — sites like Google, Kayak or Hipmunk. Once you’ve surveyed the options and found the one you want, head to that airline’s website to book directly. That way, you’ll get the most accurate information and can easily see any add-on fees or upgrade options.

And if you’re heading overseas? The Expedia report says international tickets should be purchased 150 to 225 days in advance, for a savings of up to $300 on average. You should also be aware of credit card transaction fees once you land. CreditCards.com recently reviewed 163 credit cards and found that 60 don’t charge a fee for foreign transactions. For a full list, check out their report here.

It’s a Catch 22: It’s difficult to get a credit card or loan without a credit history, but you can’t build a credit history without a credit card or loan. Last week, FICO announced a potential solution: It will be releasing a new credit score formula that incorporates utility, cell phone and cable bill payment history to issue credit scores to people who have otherwise been considered not creditworthy (or simply unscorable, do to lack of credit history). FICO says this new formula will give them the ability to score an additional 15 million consumers who don’t currently have enough credit data to receive a FICO score — good news for, among other people, recent college grads, women who have no credit in their own name because they’ve always been linked to a spouse, and recent immigrants. Twelve credit card issuers have been testing the new score since November, and it will be available to additional lenders later this year.

That’s the question I tackled in my Bankrate.com column this week. Unfortunately, there isn’t an easy answer, but this year is certainly looking attractive to potential home buyers: Interest rates remain low, lending requirements have loosened, and the government recently lowered mortgage insurance premiums on FHA loans, saving the typical FHA borrower around $80 a month. In my post, I outlined what you need to know if you’re considering a home purchase this spring. Among other things:

It’s no surprise this headline caught my eye as I prepare to send my daughter off to college in the fall: 42,000 college freshman answered, on average, two out of six financial literacy questions correctly in a survey put together by Higher One and EverFi. (That works out to be an average grade of 33%. It’s been a while since I’ve been in school, but I know that’s solidly out of a passing range).

The researchers asked questions about student loans, how long late payments remain on a credit report and how much money should be set aside in emergency savings. I think much of the issue lands in this finding: Only 39% of survey respondents said they use a budget. That’s something I’ll be working on with my daughter before she heads off for her freshman year. If you want to do the same with your own kids, here’s a tip: It can be difficult to get a handle on expenses in advance, but many college financial aid or student services offices offer a sample student budget from which you can draw. I also have a blog post on my website with detailed advice, as well as a few sample budgeting templates to get you started.

Have a great week!

Jean