| San
Diego, CA.
“People
have two things to spend; time and money and they would much rather
spend their money. When is your family most likely overspend? Research
indicates people contemplating a major life stage event, such as
a wedding, buying a new home, a new baby, or even retiring are the
most likely overspenders” said the nonprofit Institute of
Consumer Financial Education (ICFE), a San Diego based group helping
consumers become better spenders, regular savers and wise users
of credit.
Newlyweds, for example,
spend 70 percent more during their first six months of marriage.
Home buyers increase spending 200 percent within the first year
and new parents will spend about $170,000 per child, excluding education.
Retirees tend to shift spending towards more travel and make about
33 percent more charitable contributions. The new spending is so
significant that direct mail marketers now offer a “consumer
spending triggers” mail list, with access to about 3 million
prospects based on Life Stage Events.
No matter which way
it happens, many people, young and old, have a tendency to overspend.
Paying too much for things is the most common way of overspending
and easiest to reverse. Second is spending more than you have through
mortgages, auto loans and other credit based spending.
The consumer's best,
but least used, defense for paying too much for things is to simply
comparison shop. Separate shopping trips from spending trips. Leave
credit /debit cards and checkbooks home when shopping to compare
price, value and quality, among other things. If you purchase with
a credit card, enter the purchase in your checkbook register and
deduct the amount as though you had written a check, to avoid the
other type of overspending and have the money set aside when the
charge card bill comes in the mail.
Here are a few more
tips to help improve spending and obtain a greater value:
- Collect cash purchase
receipts and look for wasteful trends.
- Seek lower cost alternatives
to spending, such as a rental or borrowing.
- Utilize cents-off
coupons and mail in for rebates.
- Wait for the sales.
Comparison shopping can save more than 50 percent.
- Take advantage of
seconds, rebuilt and used items where practical.
- Start doing things
for yourself that others were paid to do previously.
- Have meetings on
improving spending with family members.
For information about
"Mending Spending,” visit the ICFE's Web page at: http://www.icfe.info.
The site includes helpful sections on increasing savings, using
credit wisely, plus "How to set up and implement a spending-plan"
(with a one page work sheet). To receive the same information by
mail, please send $1 and a self-addressed, 60 cent stamped envelope
to:
ICFE Money Helps
PO Box 34070
San Diego, CA 92163-4070.
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About the ICFE:
About the
ICFE:
The Institute of Consumer Financial Education (ICFE), founded in 1982 by the
late Loren Dunton (creator of the “certified financial planner” (CFP)
designation) and it is dedicated to helping consumers of all ages to improve
their spending, increase savings and use credit more wisely. The ICFE trains and
certifies Personal Finance Instructors for its own curriculum. It also trains
and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.
The ICFE is an award winning, nonprofit, consumer education organization that
has helped millions of people through its education programs and resources. It
publishes the Do-It-Yourself Credit File correction Guide, now in its 16th
printing and has distributed over one million “Credit/Debit Card Warning Labels”
and “Credit/Debit Card Sleeves” world wide.
The ICFE became an official partner with the Department of Defense/Financial
Readiness Campaign in June of 2004.
The ICFE is also a partner in the national Jump$tart Coalition for Financial
Literacy and the California Jump$tart chapter. The ICFE staff is also active
with San Diego Saves, an offshoot of America Saves, and the California Student
Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).
The ICFE’s on-line help for consumers who spend too much was featured in PARADE
Magazine in the Intelligence Report section. The money helps and tips are from
“The Money Instruction Book,” a course in personal finance, positioned to become
among the premier programs in the new bankruptcy and debtor education
initiatives.
The ICFE Web site at:
http://www.icfe.info helps consumers with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
videos and how to teach children about money. Other ICFE services include a free
eNewsletter, and an online resource center of financial education learning
tools, including videos, books, software and personal finance courses.
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