Come for cocktails, stay for deviled eggs

(picture courtesy of Dyna Moe)

Would you like a hot dog with your martini?

Let's face it: Happy hour is nothing without the deals on bar foods that pace the drinks served. Sure, we've all eagerly ordered that half-price plate of stale nachos or giant bowl of 10-cent wing goodness, but what if you could order exotic fare for cheap, like white polenta agnolotti in a green garlic sauce -- prepared by a world-renowned chef?

Well, your dreams of half-priced sautéed foie gras with sunchokes and watercress are now a full-fledged reality (thank you, economy!). Around the country, restaurant owners -- who are quickly losing money as restaurent goers dwindle -- are converting restaurants into glorified bars, which means top chefs are serving up bar snacks like grilled cheese sandwiches and hot dogs alongside cheaper exotic fare, according to The Wall Street Journal.

Why? The WSJ reports that while consumer spending at restaurants is falling precipitously, drink orders, particularly for cheaper drinks like beer, are barely dropping off (no surprise). For restaurants, it's now proving more cost-effective to serve lower-priced dishes that diners can munch on as they buy drinks.

According to the Journal, selling alcohol, and cocktails in particular, is typically a better business than selling restaurant food because the margins are higher. While ingredient costs may account for as much as 35% of the price of an entrée in a high-end restaurant, they typically only account for about 14% of the price of a cocktail or 25% of the price of a glass of wine. And since restaurants are already paying to run a kitchen, selling additional, easy-to-make food is simply an extra revenue stream (obvis).

So, just how succulent a feast can you afford the next time you saddle up to a bar with your friends (and thirst) in tow? If you swing by Alain Ducasse's Benoit bistro in New York, for example, you can now order dishes like "mini BB sliders" -- blood sausage on a bun with apple marmalade -- for $7. Not bad, especially since I do have a thing for apple marmalade. But even better? The cheapest dish on Ducasse's recently added bar menu is $1 deviled eggs. How very retro! The kitsch factor alone is worth the money.

Stores liquor you up to increase your spending

Free champagne at Nordstroms sounds simply divine, doesn't it? Purchasing $1,000 handbags, $300 designer scarves and obscenely priced cosmetics may not be what you're used to ... but would you feel differently after five glasses of champagne? Would your frugal tendencies be a little more uninhibited with all those wonderful little bubbles going straight to your head, clouding any budgetary judgement you've tried sticking to?

Stores like Nordstroms have been doing this for awhile (you need to be one of their "2nd level shoppers" or whatever it's called, yours truly is in the club), but it seems that offering alcohol to shoppers is a growing trend by retailers to decrease your rationality, increase your impulsivity and at least make you linger longer than normal.

In a Wall Street Journal article specifically dealing with male shoppers, "The recession is driving stores to search for anything that gives them even a small edge over rivals. And generally slower traffic gives sales staff more time to offer drinks and talk with shoppers."

According to one storeowner quoted in the story, "Offering alcohol puts men at ease. I wanted it to be like you're going to your best guy friend's house, a guy friend who has great style." Um, yeah, but your best guy friend isn't deceptively making their home more inviting so that you'll shell over $300 for a new pair of jeans. If so, then that's one expensive drink.

FYI, the cost of purchasing alcohol for stores is minimal, especially compared to other brand-building efforts like advertising, so I get it, it works. And I really can't complain when someone offers me a free cocktail, but it's just something to be mindful of if your spending is already out of control.

As Love said (after reading the WSJ article): "If I only had $200 for a pair of jeans, then I too could have a beer (wait a minute . . . )".

New unemployment data takes us back to the 80s

Still got your job? Lucky you.

The Bureau of Labor Statistics reported today that the economy lost 663,000 jobs in March, bringing the total amount of job losses to 5.1 million and the unemployment rate to 8.5 percent, the worst since 1983.

Yup, 1983, when I was but a wee one-year-old youngin', grooving to Culture Club's "Do You Really Want To Hurt Me" in a babyseat in my parent's yellow Volkswagon bug (we're from California).

The Labor department reported today that had part-time and discouraged workers been factored in, the unemployment rate would have been 15.6 percent in March, which would have been the highest on record since 1994. And move over France: Today's report also highlighted that the average work week in March dropped to 33.2 hours, a new record low.

Mark Zandi, chief economist at Moody's Economy.com, told the Associated Press: "It's an ugly report and April is going to be equally as bad." Time to brace for those April showers in more ways than one.

Oh and if you want to be Debbie Downer and drop a little unemployment trivia tidbit at your next cocktail party: Since the recession began in December 2007, two-thirds of the 5.1 million jobs in total that have been lost have occurred in the last five months.

The young and the jobless

The recession may be a reason to cry into your flan for some, but for others -- especially those in "my" generation (Gen Y) -- could it be the best thing to happen to us?

Yeah yeah, we all know the economic pressure has changed many psychological habits, i.e. saving and spending behaviors, but on a larger scale, does it buttress what Generation Y is all about? That is, our collectively lackadaisical care to put forth real effort into anything? The generations before us were all about ignorance or materialism, but according to a new article in The Big Money, we're all about "devastating unseriousness" -- and the offshoots of a terrible economy, such as high unemployment, may seem to work quite nicely with the average Gen Yer's behavior. Translation: Why work when you can collect unemployment?

One unemployed Gen Yer is living out a life dream, traveling India and paying for hostels with unemployment checks. A particularly desperate male had to actually move back into his parents' beautiful two-story house in Connecticut and is on a weekly allowance from the state.

One mid-20s male in Los Angeles that the article came across "was trying to find another job, but was being very selective." He was, "admittedly, being a pompous prick."

Why the inherent urge to laze rather than labor? Consume rather than produce? Isn't that the whole point of looking forward to retirement? The article attributes that to how life was for Gen Yers pre-2007 recession:

Everyone on the Forbes 400 list was a billionaire and The Apprentice was beginning its sixth season. How could there be anything but a thin awareness of real financial
hardship? Go down the list of the things that occupied the cultural imagination during these decades. Start with Baby Jessica and stop when you get to Ritalin. The reality today is not ignorance or even materialism. It's merely a potentially devastating unseriousness, like listing lying as one's favorite activity on Facebook.

Of course not everyone is lazing around, sipping mojitos and collecting unemployment, but the story does seem to bring up a valid point. The lack of urgency in many Gen Yers eyes is what is most startling but may soon change as progress into the next couple of years.

For now, the arrangement seems to be working to many's favor:

"So many people are getting laid off that are married with kids. I'm getting laid off because I hate my job and in the process, I get severance and I get unemployment," says one mid-20s male who lost his job this month. "It's crazy if you think about it, that I qualify for the same thing."

[TheBigMoney]

Learn the Lingo: Balance Sheets

It's not breaking news that most stocks have gone to hell in a Marc Jacobs handbag. With General Motors now trading for under $2 per share, and Citigroup trading under $1, sometimes it feels like this is The End, beautiful friend. (Thanks, Jim Morrison.) Eventually though, whether it be next year or 5 years from now, stocks will rebound and there will come a time when you may *gasp* actually consider investing your money in the markets.

And when that time comes (fingers crossed), you'll be happy you know all the lingo surrounding stocks and trading, right? If you're ever going to invest in the market, you'll need to know the basics. Trust me, you don't want to be stuck at a cocktail party, nodding along cluelessly as those around you discuss balance sheets and debt-to-income ratios. It's not a pretty sight.

That vacation house in Acapulco will always be a pipe dream if you aren't willing to put in the work to get there. Fortunately for you, the work is piece of chocolate ice-cream cake (zero calories, of course).

Not understanding the nitty-gritty in finance (such as what a stock is) would be like trying to do open heart surgery without knowing which heart valve connects to what. Imagine your pot of money as your patient, and you are the doctor. Do you want your patient to live longer and grow, or do you want it to disintegrate and fall apart? I don't know about your neck of the woods, but in mine, it's just considered poor form for a doctor to operate without understanding the fundamentals. This analogy should extend into your fiscal life. Ok, so maybe the stock market, money market funds, CDs, etc. aren't as complicated as open heart surgery, but a gal needs to keep her wits about her when money is involved, which means learning working knowledge of the basics, or terms.

And the term du jour is balance sheet, or a statement of what a company, let's say Google, is worth on the date it's printed. Balance sheets are typically divvied up to you, the shareholder, about four times per year, or every quarter.

Still with me? If you see anything about a "Google's Q1 2008 profits," for example, that means the profits were reported in the first quarter of 2008 balance sheet. Q1, Q2, Q3 and Q4 all relate to which quarter is being reported, and is usually followed with corresponding year. So if you hear about predictions for Google's Q3 09, that would be their third quarter of 2009. Pretty snazzy.

What's on a balance sheet, you ask? Simple. There are three key elements to a balance sheet you should worry about. These include:

Assets, which is another way of saying the financial value of a company. Assets can include anything that could be converted to cash, such as property the company owns, office equipment, etc. On balance sheets, though, assets are usually the sum of liabilities (more on that in a sec -- stay with me!), stock and "retained earnings" (aka earnings that are reinvested in the core business or used to pay off company debt).

Liabilities, or debt the company has.

The Net Worth of a company, which is just the assets minus the liabilities. It gives you a clearer picture of how much said company is really worth.

Whew, that wasn't too hard, right? I know it all sounds dreadfully dull, but you can't increase your savings and buy that Birkin bag without knowing the facts!

Now that you're a whiz when it comes to all things asset- and liability-related, balance sheets are usually split into two parts:

• The first part lists what the company's current assets and liabilites are.
• The second part shows how these assets and liabilites were paid for. The totals for each of these parts have to be equal.

One warning, though. Before you start thinking that all you need is a company's balance sheet before you decide to invest in them or not, you also need to look at the company's income statement, which discusses revenue and expenses. But that's a whole other post unto itself.

The balance sheet is simply one of the many statements that gives you, the shareholder, a better understanding of what you're getting into with a company. For example, if you're considering buying stock in a company with a massive amount of liability (or debt) on their balance sheet, you probably don't want to place your chips on the table with them just yet. After all, every brunette on a budget needs to know when to hold 'em -- and the balance sheet is a great first step in telling you how to play your cards, or savings, accordingly.

And with that, chickadees, I'm off to the warmer pastures of Las Vegas for a long weekend of free drinks, blackjack tables, and possible K-Fed sightings. Arrivederci!

Simple is the new black

My boss sent me a video today that made me laugh out loud and almost spit chai latte all over my company computer (which would have made me laugh harder, now that I think about it). The monologue is hilarious because there are fundamental truths in the humor, especially for those of us who believe there is a pervading sense of entitlement within our generations.

I've never heard of this Louis CK comedian, but a friend of Conan's is a friend of mine:



Basically, everything is amazing today (with medicine, air travel, Internet, etc.) and no one's happy even though they are "non-contributing zeros," so Louis CK thinks that maybe it's a blessing in disguise that the foundations of capitalism are being shattered -- that way, we'll all be appreciative of when things get good again.

Economy rocks it like it's 1997

Stocks went into freefall mode again today (this is becoming so cliche), dropping to levels last seen in 1997 -- the same year we were awkwardly coming out of our "ugly duckling" phase freshman year of high school, obsessed with unattainably hot guys and thought "Daria" was the coolest show, like, ever.

The Dow fell 3.4% to close at a staggering 7,114.94. For those unfamiliar with this hodgepodge of numbers, last year the Dow was at a healthy 8,000+. At 7,500 last week, the last vestiges of still-employed investment bankers were retching into their cubicle trashcans. At 7,114, well, let's just say it ain't pretty -- and word on the streets is there's still room for it to get worse.

Enter the Treasury Department. Today the Treasury announced it will launch a new, revamped bank bailout program that would include the option of allowing the government to increase its ownership in financial institutions. Translation: The government wants more of a say in how banks are run, because they are (obviously) doing a crappy job thus far. As you can see by today's steep stock market slide, this news did little to bolster investor confidence.

But there's a difference between the government running a bank, and the government having a say in how it runs itself. The first would be nationalization (which was a hot stock market rumor last week, but turned out to be false when the Obama administration said there would be no bank nationalization and that "private banking is the way to go").

The Treasury said today that beginning on Wednesday, the 20 largest U.S. banks will be required to undergo a new “stress test," which will determine whether each institution has enough capital to survive any further economic spirals.

More details surrounding the stress test will be released on Wednesday by the Treasury, though it did divulge today that if any banks fail the test, the government will require it to raise capital from private sources. If any bank is incapable of raising the money, the bank will be required to swap out the government’s existing, non-voting preferred shares and replace them with new preferred shares that are convertible to common stock with voting rights. Um, what? Basically, as I said earlier, this will give the Obama administration a say -- and not complete governing power -- in the business of each bank, if it comes down to that.

...And milk prices continue to fall

We remember the days when buying a gallon of milk was about as much (if not more) than a gallon of gasoline. Shudders, while flashing back to daydreams of filling car up with milk, eating bowl of cereal with crude oil. Thankfully milk prices have fallen, thanks to waning demand for the product. But wait -- you ask -- does no one drink milk anymore with cookies? Eat ice cream? Make pudding? It's not quite that dire...yet.

Demand has fallen for milk because of the limping economy (i.e., people are buying cheaper alternatives), and this in turn has deeply hurt dairy farmers, which are selling their dairy cows in droves to slaughterhouses to make up for the lack of money coming in from unsold milk.

As prices are falling, feed costs remain high, and farmers are getting back only about half of their costs. Obviously, that's not sustainable. As a result, nearly a fifth of America's 9.3 million dairy cows might be turned into steaks and hamburgers this year.

Things I don't want to think about the next time I my quarter-pounder at In 'N Out.

The situation is only projected to get worse:

In 2008, the average price of 100 pounds of milk traded at the Chicago Mercantile Exchange was $17.44. Now the price is just above $10, and most observers think it will go even lower. In December, the price of commodity cheese fell by 40% in just a couple of weeks.

So what's the best fix for the milk melodrama? You guessed it -- a bailout! This, in the form of stronger price supports and government purchases of surplus milk. Think bailout prayers will be answered? [TheBigMoney]

Gas, once again, on the rise

Gas is nearing $2 per gallon -- again.

After the horribly high prices to fill up our Hyundai last summer, I didn't think gas would ever decrease in price again. (Yes, we drive a Hyundai. Thankfully, I had left my SUV back in California.) After all, if people (albeit a smaller amount) were willing to shell out over $4 per gallon, why would gas prices ever drop again? Well, then the whole demand issue came in to play, prices came down, we wiped the stress-induced sweat from our brow and happily drove our Hyundai at half the price.

But gas prices have reversed their downward-to-flat course and are now creeping back up toward $2. It always seems like when you least expect it, you're shelling out $40+ dollars at the pump and lamenting about the "good old days" when gas was only $1.50. Now is an even worse time for these lamentations, what with more people laid off than in recent history and struggling to save what little they can from unemployment.

So will the prices continue to climb? This time of year is generally when oil refineries perform maintenance on their plants, so we should take that into account, as they need to cover their costs, but as gas prices are rising, the price of a barrel of crude oil is sinking -- to the recent tune of about $35/barrel. Why the disparity?

"I think what you're seeing now is a backlash of a period, from the end of the summer until the end of the year, when refiners were selling gas into the consumer market at a discount to crude oil," Ben Brockwell, director of data pricing for OPUS, told CNNMoney.

Brockwell said refineries lost money last year, despite the surge in gas prices. The refineries in the latter half of 2008 were paying top dollar for oil, and then producing gasoline in a low-demand economy, he said. Now, refineries are producing less, driving up prices in even this low-demand economy, while stockpiling discount oil, he said.

The good news is that gas prices probably won't rise to the heights they saw last summer, the bad news is those extra few dollars to funnel into your tank will need to be accounted for in your budget. Here's to cleaner energy.

Compound Interest and the Rule of 72

It's rumored that Albert Einstein once said that "the most powerful force in the universe is compound interest" -- a bold claim, considering most are unaware of the virtues of such a phenomenon. But to truly understand this "8th wonder of the world," or so Einstein called it, you need a basic understanding of what it is, like everything else in finance!

If you're saving, compound interest is literally your best friend. Granted, you may not be able to call it on the phone to grab the occasional lunch with or gossip with it over a manicure about a pair of shoes you saw at Bloomingdale's, but in terms of your money, compound interest really is your new BFF. It's like the Ethel to your Lucy, the Robin to your Batman, the Nicole Ritchie to your Paris Hilton. Okay, enough with the examples (especially that last one).

According to the Merriam-Webster Dictionary, compound interest is defined as "interest computed on the sum of an original principal and accrued interest." Zzzzzzzz (cue crickets chirping in background). "What in God's name does that mean?" you ask -- either that, or you're already nodding off with boredom at your computer, and if the latter is the case -- snap out of it.
Compound interest is a simple and painless way to make tons of cash back on your savings. How? Well, it's simple. Compound interest is money that you gain not only on your initial investment, but also on the interest that's already accumulated on it. If it sounds confusing, here's an example to assuage your "huh?":

Say you have two 22-year-olds . . . let's call them Simon and Garfunkel. Simon makes the most of his 20s and saves and invests $2,000 each year until he's 31, then stops. Lackadaisical Garfunkel, who enjoyed his 20s spending money instead of saving, starts investing $2,000 per year starting at 31 until he's 65. Both have identical rates and both allow interest to grow. Forward-thinking Simon will earn $50,000 more than Garfunkel by the time he's 65, even though Garfunkel will have put $50,000 more into the account over an added 25 years.

You know that saying "a rolling stone gathers no moss?" Well in the case of compounded interest it does, and it's a good thing. Compound interest acts like the moss your savings accumulates throughout the years. Shine on, you crazy diamond!

The two most important factors to remember when daydreaming about compound interest on a sunny afternoon, are:

• Time -- The younger you start saving, the more time your money will have to grow, or compound. Time really is on your side, or so said the Rolling Stones.
• Rate of Return -- What kind of rate of return is your investment giving back to you? Historically, the stock market yields about 11% per year, savings accounts give you about 3% per year, and so on. Rate of return is important because with the total amount that your money grows each year, the amount that is added from interest grows along with it. So it comes as no surprise that the higher the return rate, the faster your money grows.
  Unfortunately, finding a good investment with a high rate of return isn't as easy as looking into the underbelly of a Magic 8 ball for the answer. But there is a trick called the The Rule of 72 that you can keep up your cashmere sweater sleeve next time you're determining how good or bad a potential investment will probably be.

If you want to figure out how many years it will take to double your money at a certain interest rate, all you have to do is divide the rate into 72. Say you want to see how many years it will take to double your money with a 6% interest rate -- you'd just divide 6 into 72 and get 12 years time to double your money. Come for cocktails, stay for the deviled eggs, chickadees!

The Rule of 72 also works in reverse. If you want to see what kind of interest rate you'd need for a set amount of years to double your money, you'd take the number of years (let's say 8), divide that number into 72 and poof! You'd need a 9% interest rate to double your money in eight years. The Rule is fabulously simple yet timeless, just like a Chanel suit. As long as the interest rate is less than 20%, it's generally quite accurate.

With compound interest, just remember that the name of the game is to invest young and often (time is a key player here), in an investment with a high rate of return. Picture your money as a snowball you start patting together in your 20s. The older you get, the more snow gets patted onto it that by the time you're ready to retire, the snowball is so big from years and years of fresh snow, that it's more of an igloo than a snowball. And it will be ready for you to call it home!

What the stimulus bill means for you

Not a day goes by now without some talk about the "stimulus bill" being discussed by very important people in some very important chamber deep in a crevice of the Capitol building. But with so much news on the plan, the details can become muddy and confusing and before we know it we're completely lost and ready to top off our glass of Pinot Noir and take the dog for another walk before we kneel at the doorstep of Thomas.gov, take a deep breath, and start all over in trying to understand it all.

Of course, the most vital info you need to know about the stimulus bill can be boiled down to just five itty-bitty words: How does it affect me? Simple question, but traversing through all the mucky language can be harrowing. Luckily, that's why you read moi, right? ;)

I've found a fabulous article by the New York Times that does the best job I've seen of simplifying the legislation and informing you of how the stimlulus affects, well...you. Most importantly in regards to:

Income Tax: In 2009 and 2010, there is a tax credit of up to $400 for individuals and $800 for married couples filing their taxes jointly. You calculate your credit, subtracted from other federal taxes you owe, by taking 6.2 percent of your earned income.

Your eligibility for this credit begins to phase out if you’re an individual with an adjusted gross income over $75,000 or a couple with income higher than $150,000.

Unemployment: Normally, you pay federal income taxes on federal unemployment benefits. In 2009, however, you won’t have to pay taxes on the first $2,400 in benefits you receive.

Health Insurance: If you get fired, your company is required, thanks to a law known as Cobra, to allow you to pay to keep your health insurance, generally for up to 18 months.

The problem is, it can cost you $1,000 a month or more to keep the coverage.

Now, the federal government will subsidize 65 percent of the premium for up to nine months. To be eligible, you need to have been forced out of your job between Sept. 1, 2008, and Dec. 31, 2009. Also, your income in the year you receive the subsidy cannot be more than $125,000 for individuals or $250,000 for married couples filing their taxes jointly.

If you lost your job after Sept. 1, 2008, and declined Cobra coverage, you’ll now get another chance. Call your former company in the next two months to find out how this will work.

Social Security: In 2009 a number of retirees and disabled people, including Social Security recipients, will receive a $250 refundable tax credit. The money would arrive within 120 days of the bill’s signing.

First-Time Home Buyer Credit: First-time home buyers are eligible for a refundable tax credit equal to 10 percent of the purchase price of their home, up to $8,000, if they made the purchase after Jan. 1, 2009, but before Dec. 1, 2009. (This gem is for singles who make under $75,000, or a married couples who make under $150,000).

Don't forget the language isn't final, but the above is the gist of it all. Ah, I love the sound of money in my pocket (thank you U.S. government!). [NY Times via CNBC]

Spend, don't save!

You know what's ironic? All those people who lived outside of their means for the better part of the last couple decades (you know, buying homes and other luxuries they couldn't afford but were so easily attainable with "magic" cards and loans) are only now learning the virtue of hunkering down and saving . . . but only because they've been backed into a corner. Had they lived day-to-day somewhat modestly (no need to live off ramen, here), then the recent dizzying debt spiral wouldn't have unwound so rapidly in all of a few mere months. But that's not what's ironic.

What's ironic is that to fix this problem, those people are going to have to stick to what they're best at: spending. Or so says The New York Times:

Enough already with the saving that many of you have suddenly begun doing. This very moment, Congress and President Obama are preparing to send you a tax rebate, to inspire you to stimulate the economy. So go out and stimulate. Spend as if the future of your country depended on it.

Come again? The idea is that now of all times is not the time to save. It may be okay for you as an individual, but it is ruinous for our collective economy. If there ever was a time to spend, then that time is now.

Essentially, this phenomenon is called the "paradox of thrift," created by 20th-century economist John Maynard Keynes, and suggests that when a person does what they believe is "rational" (i.e., saving money) during hard times, it could be ruinous for an entire economy. Eventually, many of the savers may end up out of work because everyone else is saving, too.

Although spending is highly condoned, there's a fine line between blowing your entire paycheck at DSW and spending some of it on fancy footwear. The key is to know how to spend money now to save money later — a phenomenon that could lift the economy today and help individuals cope with their battered finances in the long run, says the NYT, who (like moi) thinks people do not do a good job of planning for the future.

[People] eat just one more doughnut and put off exercising until tomorrow and tomorrow and tomorrow. They fail to set aside enough for retirement. Again and again, they choose a bird in the hand — be it dessert, convenience or a little extra cash — over three or four in the bush. Most people could save themselves a good bit of money by giving proper respect to their future self. They could spend a little now and save a lot later.

[New York Times]

Forget the "minimum charge on card" myth

As Led Zeppelin once said, “The song remains the same,” and it should be added that the tune usually plays out like this: It’s a hot day and our throat is parched. We have no cash on us (when do we ever?), but duck into the nearest 7/11 anyway for sustenance. Even though we feel somewhat ridiculous for using our trusty Visa to pay for a $2 bottle of water, we stop mid-slide when we realize the stained sticky note posted under our poised hand. The note reads “Minimum card purchase: $6.” We frantically scramble around, grabbing at caloric candy bars to add to the sole reason we came in the first place, for our coveted bottle of water. Thanks to a minimum charge (or special fee), we get to leave feeling refreshed but ripped-off…and a little peeved at the entire situation.

Guess what? Technically stores can’t add fees, surcharges or require a minimum on your card purchases. If only I had known this a decade ago. Adding fees and other charges to a credit card purchase is in violation of credit card issuer practices, according to American Express, MasterCard and Visa merchant agreements.

While some storeowners break these rules to make money or cover their merchant fees with your ignorance, many owners probably aren’t even aware that it’s in violation of their contracts. Taking into consideration that merchant fees are about $2 of every $100 spent on credit cards, it’s no wonder that many storeowners are scrambling to recoup fees — but it’s still no excuse.

"To clarify Visa's rules, merchants are not permitted to charge cardholders an additional fee for using a Visa card,” a Visa spokesperson tells CreditCards.com.

An American Express rep tells the site that its merchants pay for the service of accepting American Express from their customers, and that "if a customer suspects he or she has been treated unethically, they should contact us.” If, like me, you’re a part of the Visa family, Visa says that "if cardholders have any questions about Visa's rules, they should call the number on the back of their card or visit our Web site for more information."

Bottom line, if you feel you’ve been unfairly swindled with a fee, surcharge, or minimum charge requirement, report the violation to your credit card company. If I choose to spend $2 on a bottle of water (hey, I was dying of thirst!), then I should have to pay no more than $2, Visa card or not.

For much more information, and a fabulous little table defining credit card practice that are and are not allowed, swing on over to CreditCards.com.

More women choosing babies over careers

Since the late '60s, women have overwhelmingly refused to accept the same fate as their '40s and '50s mothers, suckling babies and cleaning house for their 9-to-5 husbands. And what happens when they do assume the June Cleaver role? We automatically think of Terms of Endearment, when Debra Winger is having lunch with those corporate power women in Manhattan who treat her "non-career" of raising her children as a disease worse than the cancer she's been diagnosed with. Sad, but personified the sentiment of many women in the '80s.

The point to that scene, besides making us tear up for poor Debra Winger in her shabby, threadbare cardigan, was that "successful," progressive women wanted careers of their own, so they delayed having babies until they felt they had wrung all they wanted out of the proverbial employment towel. Well that all may be changing, the Wall Street Journal reports, as new data from the National Center for Health Statistics has found that the average age at which women have their first babies is falling.

"Mothers' mean age at their first childbirth fell to 25 years in 2006, the most recent figures available, from 25.2 in 2005. Women ages 20 to 24 led the shift, with a 5% increase in the rate of first births."

There are a bevy of factors as to why the age is beginning to decline for the first time, but overwhelmingly experts see a shift in attitudes. "More young women today just assume they'll have both a career and a family, and on their own timetable," one source told the WSJ. "Young women feel less compelled to spend a decade proving themselves on the job before kids." People, the feminist movement happened to give women the freedom of choice, that is, the choice to have kids, a career, and/or both. Not to choose one in lieu of the other, therefore stigmatizing you by your decision.

Historically, the paper says, recessions have reduced family size, but their impact on the age at which women start families is less clear. What we do know, within the last three years at least, is there may be a correlation with the country's current economic woes and the move toward younger child-bearing. That and we won't have to witness anymore heartbreaking Debra Winger scenes. [Wall Street Journal]

Another 15 bite the dust?

One of the most fascinating things about 2009 -- aside from the fact that I'm hitting the ripe age of 27 in April, and thereby officially old -- is how many retailers will go belly up in the rising economic tide. Perhaps it's the Machiavelli in me. There's obviously saturation in every retail niche, some more than others, and the current malaise seems to be just the concoction needed to vet out the superfluous. Who knew how unnecessary Linens 'N Things was in the face of many a Bed Bath & Beyond? Or a Target, for that matter? Even with the undeniable allure of office supplies and our addiction to Post-Its and personalized paper clips, even Office Max couldn't stay afloat, what with a Staples seemingly on every corner.

So which companies will fail to survive what's started out to be a difficult 2009? U.S. News placed their bets on 15 firms they don't see living past another year. Among them? Sbarro, Six Flags, Blockbuster and Claire's Accessories. Claires?! The mecca of uber-affordable jewelry? Now where will we duck shamefully into in every mall, our heads low among the throngs of teeny-boppers, while we fish for giant cocktail rings we'll eventually tell our friends we bought at expensive places like Bloomingdales? One more lie, squashed. Thanks economy.

Another possible casualty they predict? Krispy Kreme Donuts. "The donuts might be good, but Krispy Kreme overestimated Americans' appetite - and that's saying something." [U.S. News]

Gimme a (tax) break

Continuing in the tax vein, there are specific steps that 20-somethings (especially recent college grads) can take to shelter portions of their income from being taxed, and inevitably save more money! In order to start saving anything, though, you'll need to remember to file your taxes! I honestly can't believe how many 20-somethings I know who feel they can't be bothered to file because they'll only get back a small amount (say $100 or $200). Either that, or they rely on their parents to do their taxes for them -- no joke!

To all the guys out there, if there's one way you can turn a girl off (aside from being unemployed or lacking personal hygiene), it's telling her that your parents do your taxes for you. If you're even reading this blog -- guys or girls -- I assume that you've decided to take some stock in your financial life, which means doing things, such as taxes and the like, yourself and not relying on Mommy and Daddy. (Contrary to popular belief, 21+ should never be the new 16.)

With that out of the way (phew!), do not, I repeat, do NOT use a Form 1040EZ when filing your taxes because doing so prohibits you from taking advantage of the super-tax-payer-saving ways I'll mention in a second. Instead, use the standard 1040 form. I assume that it's a trade-off as to whether you want to fill out a no-muss-no-fuss form (the 1040EZ), or whether you want to get into the more nitty-gritty and wring some cash from your filing form (the standard 1040). Since the EZ is just so......easy.....most tend to file using the former, which is fine if you know you don't qualify for deductions.

Here are some clutch ways to save yourself some greenbacks when filling out your 1040:

• If you're making less than you thought you would after graduation, don't fret! You're automatically eligible for a saver's credit, as long as you're lining any retirement plan you've chosen (401(k), IRA, etc.) with monthly contributions. The catch is you have to make less than $26,000 per year (not horrible, considering the cost of living differs from region to region), but you can save an upward of $1,000 in money that might have otherwise gone to paying taxes. Consider it the government's reward for savers who are thinking ahead.
• Did you know that your moving expenses (renting a U-Haul, gas for the trip, buying packing boxes, etc.) can be tax-deductible if your job out of college is 50+ miles away from your old address?
• The idea of paying off those student loans could give anyone an ulcer, but remember this: you can now claim up to $2,500 of interest on student loans in the form of tax deductions, even if you're parents are paying off your loan interest. Apparently, the government deems any payments from a parent toward their kids' student loan a "gift," which is great news for both parties!

Just remember, you can't garner these savings unless you 1.) file your taxes , and 2.) use the standard form 1040.

A "kinder, gentler" IRS?

Call it a reflection of the times, but the New York Daily News is reporting that the IRS has promised to go easy on the nation this year in relation to filing taxes. Seems like a first, but we like firsts -- especially during the recession. The words "IRS" and "kind" have never been synonymous. The stereotype of the hard-as-nails, unmerciful IRS agent exists for a reason, after all.

It turns out the IRS actually does have a heart, and understands what the majority of U.S. citizens are going through, what with so many layoffs and foreclosures budding on a daily basis. No they aren't forgoing collection of taxes this year (wouldn't that be grand?); instead, they'll be more flexible with tax collection to help easy the fiscal burden that's cloaked the shoulders of so many of us.

The only catch is that you have to ask for help if you need it. Though the IRS may have gone the way of the Tin Man, it doesn't mean it's also gone the way of the all-knowing Oz. Struggling to pay your monthly bills and need a filing extension? Just lost your job and have no savings to pay taxes? Ask and you (probably) shall receive help.

The Mail reports that among the changes this year:

• IRS employees will have greater authority to suspend collection actions — such as tapping your bank account — in certain hardship cases.

• If you already agreed to an installment plan with agency and have been paying on time but now face trouble, the IRS might allow you to skip a payment or pay a reduced monthly amount without voiding the agreement.

• If you thought you weren’t eligible for a so-called offer in compromise — in which a taxpayer and the IRS agree to settle a tax debt for less than the full amount — you may be now. In the past, if you had enough equity in your home to cover your tax debts, you may have been turned down. But given the downdraft in real estate, the IRS is willing to take a second look.

The IRS' website (www.irs.gov) has an excellent list they call the "What Ifs of an Economic Downturn." On the list are many common hypothetical questions posted to the bureau, and their answers to each. Questions include: What if I lost my job? What if my income declined? What if I sell my home for a loss? What if I can't pay my taxes? Scary questions, but the IRS is anticipating them being asked and have answers for all of them. It's an excellent resource to tap in to if you're freaking out about tax season and feel fiscally pinned against a wall.

If these "What Ifs" don't answer your questions though, IRS.gov also has a phone number you can call for help (1-800-829-1040) and a list of tax assistance offices that you can visit in person.

Bad economy? It's worth a laugh

Today the stock market was hit hard by a batch of horrid economic reports that were released this morning. If you didn't follow the news today, here's an abridged run-up of what happened:

• Unemployment claims rose to 588,000 (slightly above the forecast).
• Really troubling was the number of Americans forced to file for continuing unemployment benefits because they can’t find a job. That number grew to 4.77 million, the highest figure on record. Um, yeah. Aaaand we haven't seen the worst of the jobs situation yet. Just sit tight.
  
• "New home" sales dropped 14.7% to an annual rate of 331,000 – way below the forecast of 400,000. This was the worst "new home" sales reading in more than 40 years of data compilation.
• Many argue that the housing crisis started this economic meltdown and that we won’t pull out of it until the housing market turns around. Today’s report on new home sales did not reinforce the hope that we might be pulling out of the maelstrom.
  

Now that we have that bad news out of the way, what better way to deal with the crisis than by having a good laugh? If you haven't already seen this E*Trade "outtakes" reel from the baby commercials they've been running, you must watch -- it's hilarious. I just had to post. My favorite part is when one of the babies asks: "What did I think of the economy in 2008?" and commences to vomiting all over himself in response. Priceless:



(Thanks Julie over at Beef Up Your Piggy!)

How to open an IRA account (and other goodies)

Now that you know almost everything there is to know about IRAs (well, almost), there's one little problem standing in the way of your post-retirement dreams of lounging in a Parisian cafe, partaking in brie, baguettes and Bordeaux: How do you sign up for an IRA?

Simple! If you thought IRAs were a piece of cake to understand in my last post, the process of signing up for one is even more straightforward -- think cake with all the calories taken out of it. All it takes to sign up is a little time, your social security number, employment information (again, you can only contribute earned income to an IRA), bank account info and money to deposit (obvi).

Unlike 401(k) accounts that employers generally set up for their employees, an IRA is usually something you need to do on your own. I can already hear you panicking, eyes glossing over at the thought of tables and tables of complicated numbers you couldn't possible begin to understand. Scratch that visual right now. I take it most of you have filled out student loan forms? Well, filling out an IRA form is even easier -- much like filling out a credit card or job application. No hand-holding needed!

The hardest part of opening an IRA account is choosing which brokerage firm you'll want to sign up with. These include many big names that I know you've heard of: TD Ameritrade, Sharebuilder, Vanguard, Fidelity Investments, E*Trade Financial and T. Rowe Price are all prominent in the IRA world. I can't advise which place is the best to go with (as I'm not a financial adviser), but when researching each firm, make you sure you watch out for how much trading commissions are and if there are any annual fees. Many places have no fees (rock on!), but may have higher trading commission costs (i.e., fees charged for every trade made with your money). Also, be cognizant of what the minimum IRA contributions are for each, as you'll want to be able to make them on a monthly basis. Do your homework when choosing who will be the lucky firm to house your money.

Once you've found who you want to sign up with, you can download forms off their website, fill out the info (very straightfoward questions are asked, trust me), either include a check or direct deposit from your bank account, and plop in the mail. Or, if you prefer doing it digital, many places allow you fill out all forms online. And that, chickadees, is how you sign up for an IRA.

Again, just putting your money into an IRA doesn't mean it's accumulating much of anything. Think of it as a glorified savings account. Yes, you've taken the necessary steps to put money aside every month for the good of your golden years, and yes, the tax benefits are nice, but you have to invest the money once it's in the account. Use it as a vehicle to reap big rewards for your future. You have the ability to tell your brokerage firm how you want them to invest your monthly cash. Are you more of a mutual fund maven? Stock sistah? Or an index .... well, you get the idea. Generally, if you don't know much about the stock market or don't have the time to learn and do research, mutual funds and index funds are a fabulous option as they pad your portfolio with diversification.

Don't worry if you decide you want to change the kind of IRA you are enrolled in. Once you sign your name on the line, it's not written in blood. If you sign up for a traditional IRA, for example, and realize you'd rather be in a Roth (or vice versa), it is possible to make the switch, just be aware that it may have a large impact on your taxes when it's time to withdraw the money from your account. (Because, as I've mentioned before, one of the main differences between the two IRA accounts comes down to when and how you are taxed on your contributions.)

And, if you've found a dazzling new job opportunity and the only thing standing between your current job in hell and climbing the corporate ladder to paradise is confusion over what to do with your IRA account, don't fret. You can transfer your IRA funds to different IRA accounts (such as from Roth to Roth), but the transfer has to happen between plans, meaning you (as the retirement account holder) don't get to touch any of the money ... yet. Think of it as something to look forward to when your hair begins to gray!

Learn the lingo: IRA

Ah yes, the IRA, or individual retirement account, another way to reap the benefits of saving early for a lavish retirement!

But wait -- before we go any further -- I know I've probably already lost you. If you're anything like I was at the wee age of 24, your eyes have already glazed over with boredom at the mere sight of the word "IRA," and I don't blame you. Unless you were a finance or business major in college, terms such as IRA were relegated to people like our parents, who are at an age to be concerned with all that stuffy money talk. Right? To put it bluntly, it's very, very relevant to people our age. Sorry to pop your head-in-the-clouds fantasy, but if you're thinking: "I'm only ___ (insert whichever age you are), so I don't have to worry about that stuff yet," then you're dismissing ways to plan for your life that can make you very comfortable (and dare I say rich) in the future.

Guess what? Unless you end up relying on someone else to learn about these things for you and rely on them to carry your deadweight in the future (which I've written about here), it's time to start teaching yourself! What's more attractive than a very stylish girl who's also very financially saavy? Don't worry, IRAs are not, I repeat not, complicated to understand. Cross my heart and kiss my elbow. In fact, they're actually quite simple, like most things in personal finance when you strip away all the technical mumbo-jumbo. Just remember not to feel intimidated by the lingo and the numbers, because if I can understand it (with an English/Journalism background), then you definitely can too.

To strip it down simply, there are many types of IRAs, but people generally choose either the traditional IRA, for any level of income, or the Roth IRA, mainly for people making under $95,000. Both serve the purpose of an "individual retirement account," thus the name "IRA." You can only contribute to an IRA with earned income, so birthday money or Christmas checks don't count, unfortunately.

In a traditional IRA, you can contribute up to $5,000 of your annual income to the account. All money you put into your IRA is sheltered from taxes so, for example, if you put $5,000 into your IRA in one year. That would be $5,000 off your overall income that will not be taxed by the government. When you do decide to pull the money out, though, it will be taxed. And, if you withdraw the money before you're 59 1/2, you'll get charged a 10% fee. The fee acts as a way to curb your temptation of dipping into your budding nest egg; it comes as no surprise that it's highly advised against to pull your money out prematurely.

But what if you want to buy a house -- and the money you've been saving in your IRA would make a nice down payment on a mortgage? Good news! The exception to this 10%-fee rule is if you're using the money to buy a house or pay for higher-ed costs. If you're new to the world of saving and have a rough time saving in general, than having an account that rewards you for saving for the big purchases in your life, like a home, would be perfect for you!

The Roth IRA, though, is an even better match for the fiscally responsible ladies (or gents) out there. Why? Well, unless you're a high-power, corporate executive -- you know, the kind driven around in Lincoln towncars, sipping scotch and balancing million-dollar checkbooks -- you're probably making under $95,000 per year, which is perfect because it's the cutoff point to qualify for a Roth. (You can also make under $110,000 and still qualify, but you'll only be allowed to make "partial" contributions.)

Unlike the traditional IRA, the Roth IRA is not tax-deductible, but you have greater flexibility over your money. In a Roth can withdraw your savings after five years (regardless of how old you are), without being charged a fee. Any interest you accumulate in the account, though, can be taxed. Not making sense? Say after 10 years you have $20,000 saved up of your own money, with $5,000 earned in interest on the money. You can withdraw your $20,000 tax-free, but only have to pay taxes on the $5,000. Not too shabby.

If you're still at a crossroads as to which IRA (traditional or Roth) would be the best for you, a rule of thumb is that the Roth IRA is generally a better bet if you're younger.

Simply put, by saving your money earlier, the younger you start saving, the more you end up with in the long run (with the interest accrued).

It's important to note that an IRA, Roth or otherwise, isn't an investment, per se -- it's just a place to keep a chunk of your savings to use as investing in whatever you choose. That could include bonds, mutual funds, real estate, or even just one stock. Again, an IRA is another way, like the 401(k), that the government is rewarding you for saving for your retirement.

At this point, you're probably asking, "What's the difference between an IRA and a 401(k), then?" I admit, they do sound strikingly similar, but the fundamental difference is that one is employee-sponsored (the 401k, where your contributions are usually matched annually by your employer), while the other (IRA) is completely up to you to create and manage.

Both are fabulous ways to shelter income from taxes, though, so contributing to at least one is in the best interest of every savvy financier!