This Week in Your Wallet: Summer Savings and Chance to Win Free ID Theft Protection
Welcome to summer — well, almost. It feels like summer in NYC today, and we enjoyed a fantastic few days at the Jersey Shore. Perhaps you caught a piece of my weekend on yesterday’s NBC Nightly News. Reporter Tom Costello (working as hard as ever) called early in the day to ask me to weigh in on the high price of beef, pork, chicken and other grill-ables. I happily obliged, but was also able to get the lowdown from a local butcher named Okie Whitcraft of Okie’s in Surf City.
He sells fabulous cuts of meat, of course, and his ribs are second to none in my opinion. But Okie, who has been cutting meat — as he said — since age 11, told me it’s all in the cut. He sells pricey veal cutlets, but said he has (on occasion) served thinly sliced and pounded turkey (or pork) cutlets to his own family, and they haven’t been able to tell the difference. Similarly, a chuck steak, well treated, can satisfy like filet mignon.
My point: If it’s not in the cutting, it’s in the marinade (longer is better, except with fish) or the cooking. Learning what you’re doing (thank you Mom and Ina Garten) can save you a bundle.
And now for the rest of the week’s news:
Is a degree worth it?
It’s a fair question considering the number of unemployed college graduates, and the amount of student debt in this country (now over $1 trillion). According to recent income statistics, the answer to the above question is still a resounding yes. As The New York Times reports, a four-year degree has never been more valuable. You can look at the pay gap to see why. On average, college graduates (with four-year degrees) made 98% more per hour, in 2013, than Americans without diplomas. That’s up from a gap of 89% five years ago, and 85% 10 years ago. This record high discrepancy also suggests there are too few graduates overall. If there were more graduates than the economy needed, the gap would narrow. For those who still need some extra convincing, know that the cost of college overall is actually a negative $500,000. Meaning: Over time, a college degree is cheaper than free, and not going to college will cost you. Read on here.
Brace yourself for inflation
Last month the U.S. consumer price index was up 0.3 percent – its biggest hike in 10 months. Other prices are rising too, like producer prices, which are up 0.6 percent — its biggest increase since September of 2012. As Linda Stern discusses in Reuters, these bumps shouldn’t scare you into playing it too safe, although they shouldn’t be ignored either. Savers and investors alike must consider how to protect themselves from future inflation, without wasting both their time and money in unrewarding investments.
For instance, own your home. Between 1968-2013, the average annual appreciation rate for single-family homes was 5.3% — and the average inflation rate was 4.4%. As Stern suggests, if you buy a home and live in it long enough to pay off the mortgage (ideally one with a fixed low interest rate), then you’re more likely to hold your own against price appreciation. Another way to protect yourself is by buying dividend growth stocks. Not only will they beat inflation over longer periods of time, but the ones with higher dividends will also provide extra protection. For more ways, read the full article.
Stay cool on a budget
Electric rates are predicted to rise by 10% this summer, but don’t sweat your energy bill with these cost-cutting tips for staying cool from CNNMoney. You can save up to 10% by simply clearing your condenser. Prune back shrubs, and use a blower to rid leaves and debris in and around the case. This improves maximum airflow (and saves you money by making your machine work less). Bump your savings up to 20% by replacing your filters. You’re not saving money by using them longer. In fact, you should replace your filters twice a year. Take your savings even higher by installing ceiling fans. Save 30% over time by being able to turn down the degrees on your AC. For more, head to CNNMoney.
Keeping hackers at bay
Last week eBay asked its 145 million users to change their passwords after hackers made their way into one of its databases. The company says there’s no evidence that customers’ financial information was compromised, however passwords and other data (i.e. email addresses, physical addresses, phone numbers and dates of birth) are in question.
For eBay users, Forbes offers some tips on how to protect yourself after the attack. The first tip is a no-brainer: Change your eBay password. Seriously. And if you used the same username and password for other accounts and logins, change all of them too. Keep a closer eye on your credit card and bank statements, and check your credit report in a few months (for free) at annualcreditreport.com. For more, head here.
This seems like a good time to tell you that I’m now working with LifeLock as an advisor. Together, we’ll be trying to help people understand what steps they can take to keep themselves safer from identity fraud. To kick off this relationship the folks at LifeLock have given me two free year-long subscriptions to give to you. So, if you’re interested, send me a Tweet @jeanchatzky. We’ll pick two winners at random and notify you on Twitter by DM (you have to be a follower in order for me to DM you, so make sure you do that as well)!
Have a great week!
Jean
