This Week In Your Wallet: The Smart Talk, 529s & Going Solar
As a parent, when you hand your kid a phone or tablet, you’re investing in his or her digital future. I’m working with National PTA to collect the best parenting tips for keeping kids from becoming screen monsters.
What’s your tip to share with other parents? How do you get your child to put down the phone at the dinner table or before bed? To learn more, check out The Smart Talk.
Solar Savings
If I sent you a picture of my neighborhood, you’d see a big change from just a year or so ago. A number of the roofs now sport solar panels. If going solar is something you’ve been thinking about, now’s not a bad time to go for it. Since 2010, residential costs for solar have dropped 45%, according to the Solar Energy Industries Association. In addition to being able to purchase a system, more leasing options have become available, contributing to the popularity of residential solar. In fact, growth in solar capacity is expected to double in the U.S. in the next two years.
It’s good for the environment and good for your wallet — but only if you use a reputable service. As I reported for Bankrate.com, solar rip-offs are also on the rise. Here’s what you need to know:
- Tap Into Your Energy. Before you decide to go solar, you first need to know your energy usage needs. Grab your recent electric bills, and do a review. If your monthly bill averages less than $100, then the potential savings from going solar might not be worth it, according to the Better Business Bureau. Another important consideration when going solar is how many sunny days you get per year. (The folks in Juneau, Alaska, who have a 30% chance of sunshine — annually — might want to stick with their current energy providers.)
- Know Net Metering. With most homes, you’re still connected to your local utility so that you can use conventional energy at night or on rainy days. The connection also allows you to send the excess energy your panels produce during sunny periods back to the grid. The meter that facilitates this is a “net meter” and — in the 43 states that allow them — you can receive credit for excess energy you produce. If you’re leasing, you need to understand who gets that credit, you or the leasing company.
- Avoid The Shade. Shoddy equipment, faulty installation, and expensive or incomplete warranties are all potential problems. Always check out the company with your local Better Business Bureau. And finally, make sure installers are certified by the North American Board of Certified Energy Practitioners or trained by the Interstate Renewable Energy Council.
The 411 On 529s
Last week, global consulting and accounting firm, PwC, made headlines after announcing it would help junior employees pay down their student loans starting next July. The perk – up to $1,200 a year for up to six years – will be available to the 22,000 associates and senior associates. No restrictions, no limitations and if you the leave the company, you don’t have to pay anything back. It’s a sweet deal.
We know the class of 2015 is the most indebted in history: on average, students will have to repay more than $35,000. It might be too late to solve the student debt crisis for this generation of grads, but we can learn for the next one. New research reveals that our college funding strategies could use some schooling. As I reported for Fortune this week, roughly 33% of parents, who are currently saving for their kids’ educations are putting the money away in their 401(k)s and other retirement accounts. And more parents are using regular savings accounts than they are 529s.
Money can’t be withdrawn from 401(k)s before age 59 1/2 to pay for college without being subjected to income taxes and a 10% penalty (yes, it can typically be borrowed, but that’s problematic, too); and, money in plain vanilla savings doesn’t provide the growth needed to keep up with taxes and tuition inflation. If you’ve got “save for college” on your to-do list, it’s time to study up on 529s. Continue reading here.
Your Wallet’s Best Friend
The Internet is the ultimate source for savings if you’re willing to do a little research with it. This week, DailyFinance offers 10 money-saving websites to check before you shop. For example — before you swipe or click to buy — always search for a coupon on sites like RetailMeNot.com and Coupons.com. Or, if you’re an Amazonian (i.e. a frequent Amazon shopper), then add camelcamelcamel.com to your bookmarks bar. The site tracks items on your Amazon list and pings you when prices drop on the site. Also save money by ridding yourself of temptation at Unroll.Me. Much like the “Promotions” tab in Gmail, this tool aggregates all of the advertising emails you receive and compiles them into one list you can chuck — or read when you’d like.
Have a great week,
Jean
