The basics of the Social Security Disability Income Program

By Ted Norwood, General Counsel and Director of Representation, Integrated Benefits, Inc.

The United States Social Security Administration offers two programs—confusingly named Social Security Disability Income and Supplemental Security Income—aimed at providing or supplementing the income of people who are unable to work.

SSDI (also called Title II benefits) provides disability coverage for individuals who have paid enough Social Security taxes. The second program, SSI or Title XVI, provides a smaller benefit for people who haven’t worked long enough to qualify for Title II benefits and established a financial need.

SSDI and SSI require the same medical requirements to receive benefits. However, SSI also requires claimants to pass a stringent means, or income, test that establishes the applicant’s need.

For the purposes of this post, I’m going to focus on the SSDI program. This benefit has greater relevance than SSI to the majority of employers and workers. In addition, this program frequently interacts with employee benefits, especially long-term disability policies.

But before I proceed, it’s important to remind you that I’m presenting basic information. If you have specific legal questions about SSDI, you should reach out to a lawyer. SSDI is a huge program with many regulations and significant administrative entities. My goal in this article is to focus on a few key elements that are important to employers and employees.

I find that most people know something about the SSDI program and many hold opinions on it already, but there is an abundance of misinformation. Before you can understand SSDI’s role in workplace absences, you must understand the program’s basics.

In many ways SSDI is like a private long-term disability policy that you have through the government. Like any insurance policy, the terms are important.

You must have worked to qualify

To receive SSDI benefits, you must have worked and paid the SSA’s taxes. If you are an independent contractor and don’t pay FICA taxes, you may not be covered. There are boring rules that you can access here if you want more information.

If you want to know if you are covered, you can simply contact SSA and they can tell you if you are insured and when your insured status would end if you stopped working.

You must qualify medically and vocationally

If you are covered, you may qualify medically for SSDI if you are:

  1. Not working
  2. Have limitations caused by medical conditions expected to last at least a year, and
  3. You are unable to sustain substantial gainful activity due to your limitations.

The SSA will deny benefits if they believe you can still perform a significant number of jobs that exist in the national economy or if you can perform past work (from the last 15 years).

Many Issues are surprisingly irrelevant to the SSA

Social Security does not consider income in its evaluation of disability. If a person who made a high salary can still perform lower income work, they are not disabled under SSDI. Likewise, a person who worked in labor, such as construction or manufacturing, may not be disabled if they are still capable of performing less demanding jobs.

SSDI also does not consider whether jobs are available or if an individual may or may not be hired for a job. The SSA only evaluates whether an individual could perform the functions of a job that exists.

The SSA considers problems finding employment to be addressed by unemployment insurance. But, to that end, applying for both unemployment and SSDI will usually have detrimental effects on the SSDI application. The SSA sees the receipt of both benefits as generally incompatible (with exceptions).

The SSDI Application Process

Individuals may apply for SSDI on the SSA’s website or at a Social Security office. A state agency will evaluate the application, review medical records and determine if the claimant is disabled under SSA’s rules. This usually takes three to six months with a 34 percent award rate.

If denied, a claimant can request reconsideration by the state agency. This essentially repeats the process, with a 13 percent approval rate.

If denied again, the claimant may request a hearing before an administrative law judge. There is a nine- to 27-month wait from hearing request to hearing with a national average wait of 17.3 months. The ALJ’s decision takes about another 60-90 days and ALJs awarded 47 percent of cases last year.

There is one more level of appeal within SSA – the Appeals Council – but the success rate is only 10 percent. After that, a claimant must file a civil case in federal court.

Obviously, it is a long process. This wait has a huge impact on the claimants. Waiting 30 months to get a payment is not uncommon. The SSA makes retroactive payments in a lump sum, but that is often cold comfort for claimants. The average wait time for all claimants is about 15 months before they receive a payment.

When Awarded SSDI

Disabled claimants receive an average monthly benefit of about $1300. There is a five-to-six month elimination period at the beginning of the period of disability.[The SSA provides annul adjustments for cost of living.

Two years after the end of the claimant’s elimination period, they will begin receiving Medicare.

There are some programs in place to support attempts to return to work, with mixed results. The SSA generally schedules continuing disability reviews (CDRs) every three to five years.

SSDI certainly has some warts, but overall American workers benefit tremendously from this program.

 




For millennials, app use and financial literacy don’t go hand in hand

A recent study released last week found despite the number of financial apps millennials are using, their personal finance management skills are severely lacking.

The report, released by the TIAA Institute and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University School of Business, examined the personal finance knowledge of millennials.

Titled “Millennial Financial Literacy and Fin-Tech Use: Who Knows What in the Digital Era,” the study utilized the TIAA Institute-GFLEC 2018 Personal Finance Index (P-Fin Index) to test millennials’ finance knowledge and found that 44 percent of millennials answered the P-Fin Index questions correctly, compared to 50 percent of the US adult population.

In addition, younger millennials (ages 18-27) answered 41 percent of P-Fin Index questions correctly, compared to 47 percent of older millennials (ages 28-37).

“The millennial oversample in this year’s P-Fin Index sheds a light on the use of mobile technology, and the impact that it has had on an increasingly influential generation,” said Stephanie Bell-Rose, Head of the TIAA Institute.

“As technology continues to develop ways to make our lives easier, it is clear that we cannot exclusively rely on it to guide us through our financial lives. Our research underscores the importance of financial literacy and its complementary relationship with fin-tech in producing good outcomes.”

Both older and younger millennials are hurting most in the areas of understanding risk and insuring, the study found. Understanding insurance, in particular, saw the greatest gap between younger and older millennials. Financial literacy is highest in the area of borrowing and debt management for both younger and older millennials.

The study also looked at how millennials use these apps to track their personal finances, as well as the effect of this fin-tech on financial outcomes.

About 80 percent of millennials use their smartphones to do things like pay bills and deposit checks, while 90 percent use their phones for things like tracking spending.

However, although apps make it easy to manage money, those who do via the technology don’t always make financially savvy decisions. Almost 30 percent of millennials who use their smartphone to make mobile payments report overdrawing their checking account, compared with 20 percent who do not make mobile payments.

In addition, one-quarter of those who track spending with their smartphone report overdrawing their accounts, compared with 20 percent of those who do not track spending via their smartphone.

“The low level of financial literacy among millennials speaks of the importance of equipping this large generation with the knowledge and skills that are needed to make financial decisions in the digital era,” said Annamaria Lusardi, Academic Director at GFLEC and the Denit Trust Chair of Economics and Accountancy at GW.

“This study shows that fin-tech users have different needs and characteristics, providing many opportunities for innovation for fin-tech developers.”

 

 




7 ways to keep employee benefits top of mind

HR works hard to find the best benefits program for employees and then communicate the “benefits of the benefits,” so to speak. But sometimes, even with the best of intentions, the information falls on deaf ears – or blind eyes. In fact, one recent study found that less than half of employees know what benefits are available to them, and yet nearly the same percentage said they would consider leaving their current job because the benefits are inadequate.

That means that HR has a job to do to keep their benefit offerings fresh in employees’ minds.

Follow up shortly after onboarding.

The first day can be a whirlwind for employees who are meeting new faces and receiving a barrage of information from everyone from their manager to, yes, the HR team. But think about it – new people who don’t even yet know where the copy machine is probably aren’t paying as much attention as they should to the benefits package, especially lesser-known programs like disability insurance. Naturally there is some paperwork they have to sign right away, but after that, give them a couple of weeks to settle in and then resume the benefits discussion. They might be much more tuned in once they’ve figured out the basics of their job.

Upgrade your website.

No longer do you have to depend on explaining your benefits program via a sheaf of papers that employees stow in their desks, never to see again. Chances are good your website probably already has the information, but is it easy to access and intuitive? The interface should be easy to read so that employees can visit and find what they need without endless scrolling or clicking. Consider talking to a web designer – either in-house or a contractor – who can help you design your website with marketing best practices in mind. After all, marketing your benefits (and by extension, your company) is exactly what you’re doing.

Present information in different ways.

Some of us love to read. Some of us love in-person presentations. Younger generations like millennials are all about the visuals. So even though it might entail a little extra work, commit to creating your materials in several different formats so you are bound to reach employees in the way that works for them. This strategy even has a great name – COPE (Create Once, Publish Everywhere).

Use multi-channel options.

In addition to different formats, you’ll want to distribute the information using different channels. A short text might remind employees that open enrollment is coming up. An email can provide detailed links to a wide variety of benefits. Your social media platforms can show some of your more “fun” benefits being used, such as employees taking a noontime walk as part of your wellness initiative or a group enjoying a team-building activity. Not only will social media remind employees of what’s available, but it also paints your company positively to others who are following your channels.

Ask for feedback.

Wondering what employees think of your benefits? A survey is an ideal way to get feedback with suggestions that can help you fine-tune your offerings, and it can identify what benefits employees don’t know about yet so you can determine where more communication is needed. It also allows you to raise awareness of some lesser-known programs; employees might not even realize how many programs you offer until they read about them on the survey.

Set up a hotline.

Have a dedicated number that employees can call if they have questions (and make sure someone returns the calls diligently if they leave a message). Call attention to the number by playing a game and awarding a $5 coffee card to any employee who knows the number when you ask them.

Pay them to learn more.

What? Why would you do that? Well, because it works, found Pierre-Renaud Tremblay, director of human resources for steam cleaning products company Dupray. Dismayed by a dismal 12 percent open rate on his emails, he upped the ante by developing online quizzes covering the material from the emails, offering gift certificates for employees who scored well, Forbes reports. He found his email open rate skyrocket to up to 95 percent.

And if more information about benefits helps satisfy employees, which contributes to retention, it will be money well spent.




Relocation and your social security disability insurance: Your questions answered

Part of the American dream is being footloose and fancy free…and whether you are relocating to be nearer family, to find a place with a lower cost of living or just to see some new scenery, you probably will move at some point in your lifetime.

But in the midst of the goodbye parties, the packing and the moving, don’t neglect important tasks that are necessary for your financial well-being. And chief among them should be making sure that you have taken care of your Social Security Disability Insurance (SSDI) or SSI (Supplemental Security Income) benefits before you relocate.

Here’s everything you need to know for a smooth move.

What is the difference between SSDI and SSI?

First, it’s important to know which of these programs you use. SSDI is the program that provides payments to those who are disabled or blind who qualify due to their work history – they have worked in jobs where they have paid FICA benefits.

SSI is a need-based program that makes payments to the elderly, blind and disabled who have limited incomes.

Will I have to reapply for SSDI and SSI if I move?

The good news is that it doesn’t matter if you move across town or to another state: You won’t have to for reapply these programs, which are overseen by the federal government, rather than individual states. That makes it easy for you to carry it over even if you move across the country.

However, whether you receive SSDI or SSI, you do need to make sure that you have changed your address so they know how to reach you should there changes to your benefits or other paperwork you need to file to remain eligible.

If you receive SSI, there’s another factor to consider — there could be a change to your payment based on what state you live in. That’s because most beneficiaries (except those who live in Arizona, Mississippi, North Dakota or West Virginia) also receive a state supplement. The amount varies by state, so when you move, you then qualify for your new state’s supplement, rather than your previous one. (You can find more details here.)

Also, some states disburse their own state supplements while others are handled by the Social Security Administration. If your old state and new state are both administered by the SSA, then there should be no lapse. But if you are moving to a state that administers its own supplemental program, you’ll need to apply in that state.

There also may be changes based on your living situation; i.e. if you are moving in with additional housemates who are covering part of your food and housing, your benefits may be reduced.

When should I contact the government about my change of address?

Don’t delay…you’ll want to put this on your “to do list” right away. If you are receiving SSI, you need to report the new address within 10 days after the month the change occurs so they can adjust your state supplement. Otherwise you might receive less than you are owed or too much – in which case you will have to refund the money — and you also might be charged a penalty.

The good news is you can handle it with a simple phone call to the Social Security office at 800-772-1213 or online here.

What other disability insurance might I qualify for?

Most people find that the amount they would receive from the SSDI or SSI benefits is not adequate to cover all their financial needs. That’s why it’s important to sign up for a group or individual disability policy that will protect your income and provide financial security if you should become disabled.

While it’s not fun to think about, the truth is that disability is far more common than one might think…in fact, nearly 25 percent of those who are 20 years old today will be out of work for at least a year due to a health condition before they reach retirement age.

If you have to stop working temporarily or permanently, disability insurance will kick in – providing the paycheck protection you need to ensure that your bills remain covered.




Make fall foolproof — Save money by tackling winter house maintenance now

winter home maintenance

As we bask in the lazy days of August, there are subtle reminders that the change of seasons is around the corner – from the school supplies clogging the shelves of big box stores to that one tree whose leaves are reddening prematurely.

Before the first pumpkin spice latte hits the neighborhood coffee shop, take a weekend afternoon to knock out these cold weather household chores while it’s still nice out. You’ll save time – and money – when fall rolls around.

Clean your gutters

Yes, they will likely soon fill up with fall leaves, but now’s the time to remove any debris that may have built up over the past season. Clogged gutters can cause long-lasting, expensive issues around your property – water spilling over can damage your foundation, and heavy gutters can sag and break.

Inspect your roof

Even if you don’t want to climb up on your roof (and if you do, be very careful, as falls are a leading cause of disability), now is the time to do a visual check before the roof becomes hidden by leaves or snow. Use binoculars to get a closer look and note any missing, damage or slipped shingles that should be further investigated by a roofing professional before the rain and wind arrive.

Check your trees

Loose limbs can become hazardous in storms; they can knock out windows – or people passing underneath them, in the worst-case scenario. Cut back branches that are listing or that are too close to power lines or the roof.

Tidy up your landscaping

You might still be enjoying your summer flowers and by all means, continue to. But while you’re in your garden, pull weeds and rake up needles and leaves before the chore gets bigger in the fall.

Organize your garage

Late summer is the perfect time to try out those bikes and see if they are still the right size, or determine that no one is ever going to play ladder ball. It’s much easier to make a decision on what to get rid of when you know for a fact that no one has touched it all season. And there’s still time to hold a garage sale and make a little back-to-school cash.

Have your heating system checked

Need to service your furnace or heat pump? Now’s the time…before everyone else realizes they need to, too. Ditto your fireplace and chimney. You’re guaranteed to get faster – and probably cheaper – service from a repair person who’s not being pulled in a dozen different directions as other homeowners realize their heating element isn’t working up to par.

Get your back-to-school system in place

The night before school starts is not the time to remember that you never cleaned out last year’s backpack. Before the stress of September rolls around, take the time to fill out the paperwork that came in the mail earlier in the summer, sign up for music lessons, create a paper filing system – all those organizational chores that will make your fall less harried.

Coordinate your emergency supplies

What better time to establish your emergency kit than as you’re stowing your camping gear from summer getaways? Rather than relegating it to the attic or a hidden shelf, make an organized plan to have it ready should you need it if the power goes out or there is another weather emergency. Change the batteries in your flashlights and lanterns; wash and store the sleeping bags; replenish the waterproof matches and first aid supplies. While you’re at it, add a stash of non-perishable foods and an extra deck of cards – just in case.

Hang your holiday lights

Seriously…your future self will thank you – the one that’s not standing on a ladder as the wind gusts and the rain pelts. Of course you don’t have to turn them on – in fact, please don’t – but it’s nice to know they are ready and waiting for when the holiday spirit strikes.

And now that your house is ready for fall, enjoy that warm summer evening in your newly prepped yard. You deserve it!

 




7 Ways To Save on Commuting Costs – One Will Work For You

The thought of having to pay just to go to work can be annoying, but most of us do. In fact one 2015 survey found that the average American spends $2,600 on their commute.

Certainly all those gas costs, parking fees and tolls can take their toll. If you’re looking to reduce your outlay, check out these seven ways to help reduce your commuting costs.

  1. Figure out the optimum time to commute.

Sometimes we can’t just waltz into work whenever we want, or we might have a daycare schedule to work around, but if you do have a modicum of flexibility, you might be surprised at the difference in your commute that even 30 minutes or so can make. And less time on the road translates into burning less fuel – not to mention patience.

Given the amount of flexibility your personal schedule allows, test the waters by going in at different times or use an app like Waze to scope out various commute times to see what’s best. You might see a significant difference by leaving your house earlier – and many downtown garages even offer you a better rate if you park before a certain time. Use the extra time to get work done in a quiet office or even just grab a relaxing breakfast and catch up on some reading. You also might find that evening commutes dissipate around 6:30 or so; you could use that time to hit your office’s fitness center or run some errands.

  1. Optimize your route.

And speaking of traffic apps, never leave home without one working for you. Even if you are convinced that a certain route is fastest, anything can happen to cause an unexpected traffic jam on a given day. Best to know what streets to avoid before you’re stuck in the crawl.

  1. Take public transportation.

Seems obvious, right? But you might not have realized that in many cities, public options have improved from just the slow city bus. Many areas have spent big bucks on light rail or other choices that can get you where you’re going even faster and more comfortably. And if you’re in one of the many urban areas that offer scooters for public rent, you can cover that “last mile” even quicker.

  1. Check into any benefits for commuting reimbursement.

Many times your onboarding process might have been so hectic that you didn’t take the time to fully understand all the benefits available to you. According to the Society for Human Resource Management’s 2018 Employee Benefits study, about 13 percent of companies offer a transit subsidy and 12 percent offer a parking subsidy so make sure you’re not inadvertently forgoing it.

  1. Get the best price on gas.

With gas prices on the rise, you want to get the best value you can. Some stations seems to adjust depending on the day of the week, so watch your pump to see if there’s any pattern and fill up when it’s cheapest. Also consider using an app like GasBuddy that crowdsources gas prices so you can make sure you’re getting the best deal around you.




Why You Should Start Your Holiday Shopping Now

Most of us groan when stores start displaying holiday decorations before the kids have gone back to school, but they may be on to something. In fact, the smartest way to shop is to forget about “Black Friday” and start your shopping in the summer. Here are eight reasons it will have you ho-ho-hoing come the traditional holiday season.

 

  1. You will have more time to buy just the right thing.

Impulse buys can kill your budget, but there’s something about holiday stress that can make you grab the first thing you see just to cross something off the list (or when the thing you were most hoping to buy is unavailable by the time you get your shop on). When you are able to start your buying early you have plenty of time to wait for a sale that puts the item you have your eye on within reach. Just make sure to save your receipts.

 

  1. You have more time to take advantage of price adjustments.

Speaking of saving your receipt, you’ll want to watch the item you’ve purchased to make sure that you get reimbursed should a sale roll around. To make it super easy, use an app like Paribus, which will track your receipt and “watch” your item for you to let you know if a price has fallen.

 

  1. You can shop the back-to-school sales.

Don’t want to give school supplies to your loved ones? Of course you don’t. But stores roll out the red carpet during the back-to-school season with a huge number of sales on everything from clothing to electronics. Even if the item you want isn’t on sale today, starting early gives you a much more likely “head start” that it will be eventually.

 

  1. And maybe realize tax savings.

We’re talking about “Tax Free Shopping Days”which many states hold in the summer to coincide with back-to-school shopping. Any discount counts so no reason not to head out and see what you can find on that magic day.

 

  1. You can get a more realistic idea of what things cost – and budget accordingly.

Were you misled that the jeans your daughter has her eye on could be had for a good price? You might be surprised at the price tag of coveted items and starting early gives you the chance to find out how they might fit into your budget – or if they do. If you do decide to get a particularly pricey item, you can then adjust the rest of your budget to accommodate it – maybe brown bag an extra day or two a week and put the savings aside — rather than getting stuck at the last minute having to shell out for the “dream gift” that comes with a nightmare price tag.

 

  1. You can spread out the bills.

No holiday hangover when you spend a little every month instead of a lot all at once in December. Considering that the average American adds an average of just over $1,000 in holiday debt, it can make it much easier to pay those bills when you spread it out over several paychecks.

 

  1. You won’t pay any rush fees.

We’ve all been there. You think you’ve done your shopping and all of a sudden you realize that you forgot something special for Aunt Mary. And just like that, you’ve incurred an extra $15 in shipping fees. Ordering ahead means that you have all the time in the world for the package to get lost or misdelivered – and you’ll STILL have it on time.

 

  1. You have more time to rack up (and redeem) rewards.

If you are in the market for a credit card anyway (we said “if” – don’t get a card just for this reason), you can spend the next few months putting expenses on it that you would pay anyway– from filling your gas tank to paying your electric bill, provided you intend to pay them off right away and not incur any fees. You can then use the points you’ve amassed to pay for gift cards or other purchases closer to the time.

 

And when you escape the holiday season with no extra debt, you can truly say “It’s been holiday miracle.”




Five Best Practices for Onboarding New Employees

For most HR managers today, attracting and retaining employees is at the top of their list of challenges, given the current job market. So once you’ve gone through the hard work of interviewing and hiring, you want to make sure that the employee is as pleased to be working for your company as you are to have them.

And that’s where “onboarding” can come in. While most employees are eager to make a good first impression, it’s a two-way street; in other words, the first few days on the job can set the tone for those to follow and make sure that your coveted employees doesn’t defect.

The possibility is real: One survey found that a whopping one-third of employees quit within the first six months of starting a job. Here are five tips for helping your new employees start off on the right foot, increasing the chance they will stay.

  1. Begin communication even before the first day.

The interim period from when you offered the job to when they start is a key time to continue to communicate your interest. A few emails once you’ve made the offer will assure them you are delighted to have them join you – and ideally prevent them from accepting another offer since you can never be sure who else they have been talking to. You might consider introducing them to various team members or start CCing them on internal documents. Reinforce that you don’t expect them to do anything until they show up; you just want them to know that they are part of the team.

And then allay their first day jitters and the awkwardness they may feel not knowing where or when to show up. The night before they start, send them a message that gives them all the details they need for a smooth first day – from dress code norms to what time to come in to where they should park to who will be waiting to meet them and show them around.

  1. Have them complete their paperwork at home.

Most new employees start the first day sitting in a room by themselves filling out paperwork and reading about benefits. While this is crucial information, it’s smart to send these documents to them before they start. Then they can copy down their Social Security, driver’s license and other numbers in the comfort of their own home. Having their benefits information in advance also gives them ample time to carefully consider their choices. Make sure to include information on health, dental, disability, 401 (k) and any other programs you offer so they can read it at their leisure.

  1. Introduce them to a work buddy.

Being the new kid on the block means you’re often not sure where the copy machine is, how to replace the toner in the printer or how early people typically arrive for a staff meeting. New employees can be hesitant to bug colleagues with what might seem to be “silly” questions, but the sooner they understand the norms of the office, the more at ease they will feel as part of the team. Find a friendly veteran who is willing to answer these questions to help them settle in faster.

  1. Schedule an appointment with the HR team.

Once they’ve had the chance to read over all the benefits information, schedule a short meeting where they can come in and get all their questions answered. New employees might be reticent to reach out and ask details on the disability benefits or the procedure for asking for vacation days or how to get their commuting costs reimbursed. By setting aside time for them to chat with a knowledgeable representative, they will feel more comfortable availing themselves of the benefits you offer.

  1. Look at a robust onboarding program as an investment in better performance.

While training might seem to take time away from your team’s day-to-day output, remember that investing adequate time upfront to thoroughly explain your company’s procedures and answer questions is ultimately going to yield better results.

 

When you successfully onboard an employee, you’ll be sure they understand your policies and procedures and feel confident they are contributing from the start. And a confident employee is one who is going to work harder – and stick around.

 




Six Back-To-School Expenses to Start Budgeting for Now

While December is typically considered the traditional “budget-busting month,” September, with the back-to-school season, is close behind. In fact, the back-to-school shopping season is the second largest shopping event of the year, with 29 million households expected to shell out $27.6 billion in 2018, according to Deloitte. But any parent with school-aged children will tell you that the actual “back-to-school” shopping is just one part of the host of expenditures you’ll face as September rolls around.

The good news is that you still have time to budget for these expenses so you can cover them without dipping into your emergency fundor succumbing to consumer debt.

Here are six expenses to start thinking about now and tips for making them cost a bit less:

 

Back to school supplies

At some schools, school supply lists seem to grow ever longer. But, you’re in luck because most big box and office supply stores are having amazing deals on almost every type of supply.

Shopping around will yield different sales at various stores, so give your child the circulars and have them plot your supply shopping strategy. Download the stores’ apps for even more savings.

This is also the time to stock up on supplies for the rest of the year, so you’re not paying full price when your child loses the scissors or the homework folder falls apart.

 

Afterschool sports

Trying something new is a great way to build confidence, but often a new sport comes with a cost curve of both lessons and new equipment.

If your child wants a few private lessons to brush up, consider hitting up a sporty teen to do some work with them, rather than finding a pricey specialized coach.

And see about borrowing equipment or buying it at a resale store – at least until you find out their level of devotion to the sport.

 

Tutoring

Is your kid falling behind in math or having trouble with their reading? Academic issues should never be ignored, and sometimes classrooms just don’t have the capacity to offer the individualized instruction that would benefit some children.

But after-school tutoring centers can be costly. Ask around to see if there’s a retired teacher or even a smart and patient teen who could help your child brush up on some basics for less.

 

School pictures

Of course you want to see your darling grow up right before your eyes, but the packages that many schools offer can be pricey – and often the pictures end up being disappointing. Many families always buy a portrait to line their walls, which is a great idea, but don’t get lured into purchasing a large package. If you want to maintain the annual portrait tradition, order the smallest package you can.

But don’t feel obligated to buy official school photos if you don’t want them. With today’s great smartphone cameras, we can all be photographers, and the shot you take of your smiling child in your front yard might be far better than a forced studio photo.

 

Transportation

Get ready to pull out your “taxi driver” hat if you’re like most parents, constantly shuttling kids to and from afterschool activities. Sometimes your wallet can take a hit if you’re driving long distances for specific practices. Your best bet for saving time and money is to team up with parents and start a carpool.

If dropping off and picking up at multiple homes becomes onerous, have every kid meet at a specific spot so that you can pick them up all at once.

And, a pro tip for the “chauffeur:” Rather than taking one way and having someone else pick up, try to go both ways on the same day. You’ll save time and gas by not driving one way with an empty car. Instead, use the time to run an errand, do some laps around the track or catch up on your reading.

 

School fees

These can vary widely depending on your school district and its funding models. In some schools, almost everything is covered via property taxes, and in others, parents pay for everything from field trips to teacher supplies.

When the fundraising pleas come home, please give as generously as you can, even though it coincides with these other expenses. And consider joining the parent-teacher group, which typically funds events, assemblies and other important activities at school. Your child will thank you (and so will his or her hard-working teacher!)

 




Six Top Home Buyer Mistakes That Can Bust Your Budget – Solved

Ready to buy a home? The time could be right. In fact, in 2017, first-time buyers made up 35 percent of all home purchases, finds the 2017 National Association of REALTORS® (NAR) Home Buyer and Seller Generational Trends study.

 

Buying a home will probably be the most expensive purchase you ever make, so it’s wise to make sure you’re making financially savvy moves.

 

Here are six common budget-busting mistakes first-time home buyers make and how to fix them.

 

Home Buyer Budget-Busting Mistake 1: Buying a house that needs a lot of work.

 

If the home inspection shows that you’ll soon need a big-ticket item like new windows or roof, foundation repair or an upgrade to the electrical system, you might want to reconsider – or at least ensure that the price you pay takes these costly upgrades into account. That’s because any of them can easily run you $10,000 and up, depending on the size of the job.

 

But an equally common home buyer mistake is avoiding homes that need cosmetic upgrades; say, one with unsightly wallpaper or outdated appliances. Most other home buyers might be snubbing the property, too, so it’s possible you can get a real bargain at purchase time, and then redo it to your satisfaction with some minor improvements when you move in.

 

Home Buyer Budget-Busting Mistake 2: Not thinking about the school district.

 

Don’t have kids or plan to move before they head to kindergarten? You might not even take the school district’s reputation into account, but that can be an expensive mistake when it eventually comes time to sell your home.

 

That’s because even if it doesn’t matter to you, it’s bound to matter to your future buyers. In fact, another study from NAR found that a quarter of home buyers named “school quality” as one of the most important factors in their buying decision. (This is a great site to visit for reviewing school district quality.)

 

Home Buyer Budget-Busting Mistake 3: Buying as much home as you can afford.

 

The mortgage amount that you are approved for and the amount you want to spend each month might not be the same. In fact, many new home buyers suddenly find themselves “house poor” when they stretch themselves to a house payment that’s at the limit of what they can comfortably afford.

 

Before committing to a loan amount, scrutinize your budget and see what areas you might have to cut back on – and if you’re willing to do so – from a weekly date night to a summer vacation. Also, don’t forget that a home purchase comes with a host of expenses that you might not be used to, from buying a lawn mower and new furniture, to paying for maintenance and repairs.

 

Home Buyer Budget-Busting Mistake 4: Not shopping around for a mortgage.

Finding out your options can save you a ton over the life of your loan. That’s because there are a crazy number of loan programs available — from conventional 30-year loans to Adjustable Rate Mortgages (ARMs), FHA loans and others. Each one has pros and cons so make sure you work with a mortgage specialist who can help you understand the true cost of the loan, both in monthly payments and over the life of the loan. Sometimes a shorter term can save you big bucks in significantly lower interest payments over the time you own your home.

And, shopping around might save you angst, too. J.D. Power’s Mortgage Origination Satisfaction Study found that customers who received two or more quotes were more satisfied than those who settled on the first one they received.

 

Home Buyer Budget-Busting Mistake 5: Not using a real estate agent.

 

Think that it’s too expensive to use the services of a professional real estate agent? Think again! That’s because some first time home buyers don’t realize that it’s the seller who pays the real estate commissions. And as a buyer, you need to remember that the seller’s agent is “working” for them. That’s why it’s smart to have your own counsel to help negotiate the home price in your favor. After all, it’s free, so why not use a trained professional who can help you make the most of your home-buying budget?

 

Home Buyer Budget-Busting Mistake 6: Not considering location logistics.

 

“Location, location, location” is an old adage in real estate, which means that where you buy is at least as important as what you buy. And that can certainly be true throughout the process. Hot neighborhoods (and yes, those school districts again!) can spark increased resale value, but it’s also important to think through your lifestyle and what you and your partner or family needs.

For example, if you buy a home that’s not near mass transit, you might end up racking up whopping bills on commuting costs, from gas to parking. Or, if all your child’s favored activities are a long ways away, you might end up becoming the definition of a Mom Taxi – and the car wear and tear that accompanies it. Finally, if you’re used to doing errands on foot, you’ll want to make sure your new location is pedestrian friendly. (You can check the “Walk Score” of your area here.)

With a little advance planning, you can make sure that the biggest purchase of your life is also the wisest.