COOP - Extension FAQs

What is the best way to reduce my fuel costs for winter driving?

2006-07-19T10:36:00Z

Fuel efficient driving is a challenge not easily achieved during winter months when weekly gasoline bills can increase by as much as 50 percent. Of course the best way to reduce fuel consumption is to drive fewer miles, but not everyone has the freedom of this option.

Those who commute to and from work, or take children to and from school, quickly master the techniques of combining trips, planning stops for efficient travel and carpooling. Many of us schedule our departures and arrivals, and plan travel routes to minimize the delays caused by traffic congestion. These fuel saving strategies are very good and when combined with the following suggestions can help reduce your weekly fuel bills:

Tune up the engine. A regularly maintained engine runs more efficiently and is more dependable. Improperly serviced engines waste fuel and can leave you stranded at the coldest, most inconvenient times.
Purchase gasoline with the appropriate octane rating. Follow the manufacturer's recommendations when selecting fuel. If your car does not require a high octane fuel, hundreds of dollars can be saved each year by purchasing the lowest grade (octane) of gasoline. If your engine does not knock or ping when a lower octane fuel is used, changing your buying habits will save money.
Inflate tires to the correct pressure. Cold temperatures decrease the air pressure in tires which in turn increases tire rolling resistance and tire wear. Tires should be inflated to the pressure recommended by the manufacturer. Regular tire balancing, alignment and rotation are important and when selecting new tires, keep in mind that radial designs provide better fuel efficiency.
Remove unnecessary weight from the vehicle. Limit the excess weight to necessary equipment. Gas mileage decreases a mile or more per gallon for each 300 pounds of additional weight. The spare tire, equipment to change a tire, a few important car repair tools, a shovel and basic cold weather emergency supplies (including a cellular telephone) are important, but removing that 400 pound toolbox from the trunk will lower your fuel costs. Also, snow and ice add both weight and wind resistance to vehicles and should be removed for improved fuel economy.
Speed increases fuel consumption. Most of us remember the extensive propaganda that accompanied the nationally imposed 55 miles per hour speed limit a few years ago. Well, the part about fuel savings is still true. At speeds greater than 40 mph, your car's engine must overcome significant wind resistance. Traveling at 55 mph rather than 70 mph can result in fuel savings approximating 20 percent. Slow down and reduce your fuel consumption.
Drive with fuel economy in mind. Those who embrace a "zero-to-sixty attitude" are first in line at the next stoplight, but pay for this in higher fuel costs and more repair bills. When you accelerate slowly and avoid unnecessary braking you are rewarded with fuel savings and less frequent tire and brake replacements. Fuel economy is directly related to conservative driving techniques.
Remove the roof rack when it is not in use. Roof mounted skis and racks reduce a vehicle's aerodynamics. Weekend skiers who use their cars for commuting during the week will improve fuel economy by removing skis and racks when the equipment is not being used.
Pay cash if credit costs more. Some service stations sell fuel at a lower price when customers pay cash, so pay cash and save money on gasoline purchases.
Engine warm-ups require one minute. Waiting more than one minute to warm up your engine on cold mornings is not necessary and wastes fuel. One minute of idling for passenger cars burns as much fuel as starting the engine. An engine block heater is recommended if cold temperatures reach the negative teens, but a timer should be used so the engine is only heated for a couple of hours prior to operation.
Melting ice and snow is expensive. A sure way to increase winter fuel costs is to allow the car engine to melt snow and ice from the car windows. If your car cannot be parked in a garage or shelter, use a combination of sweeping, scrapping and defrost heat. Allowing the car's engine to do all the work may be convenient, but it is expensive. Also, police caution vehicle owners that an unattended, unlocked, idling automobile is both attractive and convenient for joy riders or car thieves, not to mention the danger it presents to the general public.
Resist the convenience of the drive through. For those who regularly use a drive through, the best choice is to park the car and go into the restaurant or business rather than sit in the car and allow the engine to idle. Five to twenty minutes of fuel is consumed each time the drive through is used and for those who use a drive through often, this is an unnecessary waste of fuel.
The simplest way to reduce winter fuel costs is to drive fewer miles. Replace that regular weekend outing or out of town shopping excursion with an activity close to home. If rising gasoline prices present a problem, consider purchasing an energy efficient car for long term fuel savings and overall economy on a per mile basis.

What can you tell me about stored value cards?

2004-12-03T10:36:00Z

The selling points of prepaid debit cards are powerful. Proponents say the cards are convenient and safer to carry than cash. They are easy to obtain because there is no credit check, no bank account required and no verification of employment. Consumers are told the cards can save money, help budget, manage finances, help avoid debt and even establish credit. They are told that prepaid debit cards can help control spending, since consumers put the amount on the card they would like to spend. Could this be the answer for helping Utahns stay away from debt?

Not likely. In fact, when looking at the terms of use closely, there is cause for concern. Consider this information:

How do stored value cards work?
These cards are marketed as prepaid debit cards or stored value cards (SVCs). Magnetic strip technology stores information about money that has been prepaid to the card. The first prepaid cards to hit the market were single-purpose cards used to purchase goods at specific retailers, such as prepaid telephone cards and cards used for public transportation. Copy centers offer them for use with copy machines.
Department stores issue them as gift cards. Students using prepaid university cards can navigate campus without a dime in their pockets using the cards in the cafeteria, the bookstore, the library and even at soda machines. These single-purpose cards are convenient, simple and there is no fee to the buyer or user. If you buy a $50 telephone card, you can make $50 worth of phone calls.
More recently, however, cards have emerged with multi-purpose usage. These cards can receive direct deposits and can then be used to make cash withdrawals at ATMs. They can be used for retail purchases, to pay bills and to make money transfers. In fact, if branded with a bankcard name, they can be used everywhere the issuing bankcards are accepted. According to industry estimates, roughly 7 million Visa or MasterCard branded SVCs are in the marketplace. Experts say this industry is in the early growth stage with substantial growth potential in the years ahead.
How can consumers lose?
Consumers need to know that multi-purpose SVCs are often laden with excessive fees. Usually there are no fees to put money onto the card or to check your balance on-line. The fees start when you want to use your money. There is a one-time activation or set-up fee, which can range from $5.95 to $140. Annual and monthly maintenance fees can range from nothing, if you keep a minimum balance or bring 10 or more referrals to the card program, to $99.95. A convenience fee is charged to each purchase, ranging from $1 to $2. To get cash from an ATM can cost $1.50 to $3.75. Checking your balance at an ATM may cost $1. To speak with a customer service representative will also cost $1. There are fees for additional cards, lost or stolen replacement cards, returned checks and overdrafts. Consider how easy it would be to lose track of the amount on the card, then have to pay an overdraft fee of $29.
Other potential charges to watch for include transaction limit fees, bill payment fees, phone or online transaction fees, reload fees, money transfer fees, out-of-network domestic ATM transaction fees, international ATM transaction fees, inactivity fees, overdraft protection fees, payday advance fees, credit-reporting fees and dispute fees.
Additionally, consumers need to be aware that some financial transactions generate dual fees. You may have stashed your card away for emergencies. If the card is not used for a period of time (i.e., 90 days) you are charged, in addition to your monthly maintenance fee, an inactivity fee. Also, depending on the ATM machine used, the ATM provider may impose charges to your transaction in addition to ATM fees listed by your card carrier
Multi-purpose SVCs are often confusing and complex. Some impose fees associated with value load or reload. It is unclear what these terms imply and how they differ from adding money via a bank transfer or direct deposit. Also confusing are membership programs available to reduce monthly or yearly fees. These programs depend on referrals. In return, you will earn an ongoing income, depending on the level at which you and your referrals are approved. Then there’s the issue of how points are earned. You worked for this money once, now you may have to work for it again.
What else should consumers know about SVCs?
Certain populations are targeted, many of whom are elderly or poor. Many cards advertise that Social Security money can be direct-deposited free of charge. The poor are targeted with ads stating that their cards will help build credit. Those who don’t like traditional banking are told they don’t need a bank account or employment verification to have a card. These cards may be increasingly offered at check-cashing outlets.
Are these cards legal?
Yes. Fees are not regulated by the federal government, nor are they regulated in Utah. As long as the company issuing the card discloses the fees, it has fulfilled its legal obligation. Also, most SVCs fall outside the realm of traditional banking so they are not subject to Federal Deposit Insurance Corporation (FDIC) regulations. This means cardholders’ funds are not protected if the bank fails. Consumers may also be out of luck if the card is lost or stolen.
Why then, are consumers using these cards?
The cards may suit some consumers for several reasons. First, they are convenient. Second, if a consumer cannot qualify for traditional credit cards, they are an alternative. If used properly, the cards can help build a good credit rating. Third, SVCs are useful for small purchases online because they can be convenient and can offer anonymity. Finally, some cards offer benefits such as car insurance.
Consumers should ask how much the convenience of the cards is worth to them. They should carefully examine the terms of use and compare these cards with traditional banking cards offering similar benefits and services. For those who have no or poor credit, most banks offer secured cards with lower fees.
Stored value cards are becoming increasingly popular. However, the next time you see an ad stating they are just like a credit card without the debt, remember to be cautious and do your homework before signing up. You shouldn’t have to pay to use your own money.

For further information, visit http://www.consumerfed.org, http://www.eufora.com/, http://stored-value-cards.fcpages.com/ and http://www.ny.frb.org/regional/stored_value_cards.html.

I'd like to curb my holiday spending this year. Can you give me tips?

2004-11-04T10:36:00Z

If one of your holiday traditions is a large pile of leftover debt, you may want to re-think your holiday spending this year. With stores opening earlier, staying open later and offering discounts and money-saving coupons, many people think more about how much they’re saving than how much they’re spending.

Overspending is an addiction as difficult to kick as drug dependency. Many use money to meet emotional needs. If overspending is a problem for you, think about what needs you are attempting to satisfy through spending.

Remember last January when the holiday bills arrived and you vowed that next year would be different? A bit of clear thinking can leave you with a bigger bundle of cash and more holiday cheer this year. Consider these tips:

If the budget is tight this year, be upbeat but up front with your family. They’ll likely understand the circumstances. This could be the year you inspire them to more charitable endeavors such as supporting “Sub for Santa” or helping in a food pantry. Financial counselors advise us to give ourselves plenty of time to shop, make a list and check it twice, pay with cash and stay away from impulse shopping. Determine how much you can afford to spend this season and divide it among those on your list. If you can adopt one financial concept, it should be this — if you can’t afford to pay with cash, you can’t afford it. Paying with cash on hand is a simple way to avoid new debts and new stress. If you must use credit cards, debt counselors recommend carrying two cards — one with a zero balance that you can quickly pay off in full and another with low interest for purchases you can pay off within a month or two. Do not take other tempting cards with you. Unfortunately, credit cards can give a false sense of financial security when you use them without any concept of how much you are spending. Record charges in your check register and subtract them from your available balance as you spend. Not only will you get a good idea of how much you have spent, you’ll also know how much money to set aside for the bill when it arrives.

Plan for next year. Keep track of how much you spend on the holidays this year, including extra meals in restaurants, decorations, travel, holiday entertainment, long-distance phone calls, Christmas trees, cards and postage, neighborhood gifts, etc. Divide the total amount by 12. That is the amount you will need to set aside in savings each month during 2005 so you won’t have to go into debt for the holidays a year from now. Many banks and credit unions will work with customers to find a plan that allows them to have extra cash during the holidays. Funds can be transferred from checking to savings each month. You’ll also earn interest on it as it builds up over the year.

Utah State’s Family Life Center can help you set up spending and debt repayment plans. It also offers tips and skills for money management. This service is free. Contact the Family Life Center toll-free at 866-519-7881. The holidays become burdens when they bring money problems through the rest of the year. Financial security is the best year-round gift you can give yourself.

How does your cash flow?

2004-10-15T10:36:00Z

It is difficult to manage your finances if you don’t know how much money you have or where it is being spent. That is why budgeting is an important key to successful money management. A budget has two parts — income and expenses. The object is to keep expenses at or below your income. Sounds easy, but as most have experienced, it can get a little tricky at times. Consider these budgeting tips:

Track the small expenses. This can be done by carrying a small notebook in your pocket or purse for a month or so. List those items you purchase for yourself or others that you often forget to budget for, such as soda pop from the machine at work, a treat for the kids or a donation to a co-worker’s retirement gift. These “budget-busters” can make or break a budget if you haven’t planned for them.
List expenses. Look through your checkbook for the past few months and write down all expenses. These expenses can then be categorized into the following areas: housing (this includes mortgage payment or rent, a second mortgage and property taxes); utilities (electricity, water, sewer, garbage, natural gas, basic phone and long distance, cell phone/pager, cable TV and internet connection); necessities (food/household supplies, clothing, school lunch, child care/sitters, diapers/formula and child support payments); transportation (car payment/lease, insurance, fuel, repair allowance and license/registration); monthly debts (student loans, other loans and debt including credit card payments); other expenses (laundry/dry cleaning, health, hair and personal care, pet/veterinarian and dues/memberships); education (tuition, books, paper supplies, uniforms, lessons and sports); entertainment (eating out or take out, entertainment debt payment such as a boat or RV, crafts, computer expenses, sports, hunting, bars, gambling, cigarettes); insurance, if not deducted from your paycheck (medical/dental, life/disability, home/renters, co-pays); gifts (children’s allowances, contributions to church/charity, holidays, birthdays, weddings, 1/12 of total holiday expenses).
Tally expenses. Figure all expenses as a monthly amount. For example, items that are due once a year, such as property taxes, can be divided by 12 to get a monthly figure. Holiday budgeting can be done the same way.
Keep a record. Write down the date(s) you are paid each month. Divide your expenses as evenly as possible among paychecks, taking into consideration due dates. If your largest bills are due at one time, pay several bills early rather than trying to fit them all into the same pay period.
Determine if you need to cut back. Compare your actual expenses to the plan you made. If you overspend in one area, adjust your plan the next month. No spending plan is perfect the first time. If overall expenses are greater than income, it will be necessary to cut expenses somewhere — or increase income. Usually it is easier to cut expenses. Start by determining how much you need to trim. To do this, subtract income from expenses. The figure may seem daunting at first, but if you look hard enough, you can usually find a few items that are easy to cut. Give yourself leeway on one or two things you enjoy. Otherwise you may end up feeling deprived and toss the entire budget.
Consider the envelope system of cash management. Each payday, write a check to yourself to cover food and other out-of-pocket expenses for that pay period. Cash the check and put the cash in an envelope marked for each expense. As you need to buy food, for example, take money from that envelope and from nowhere else. This does several things. It provides you with instantaneous cash management in that you will rarely spend more than allotted. The only way to spend more is to get the money from somewhere else. If you feel it has been a hard week and you deserve to eat out on Friday night, simply pull out the food envelope to see if you can afford it. If you can’t, don’t eat out. You don’t need a complicated bookkeeping system to track your budget. When you spend cash, it hurts a little, so you will end up spending less. It is much easier to sign a check or credit card receipt than it is to lay down cold, hard cash to pay for something.
If possible, set aside a personal allowance each month. For a single person, a personal allowance allows small indulgences within self-imposed limits. Married couples often find a personal allowance tends to cut conflicts. Two people seldom agree completely on how to spend money. Personal allowances allow each partner to exercise complete discretion over an agreed-upon amount of money without having to answer questions about how it was spent. The Family Life Center on the Utah State University campus is available for free financial counseling, including help with budgeting suggestions. Contact the center toll-free at 866-519-7881 for an over-the-phone consultation. Budgeting worksheets are available on the Family Life Center’s Web site at www.usu.edu/flc.

Do you have holiday budgeting tips?

2003-11-14T10:36:00Z

Wise men and women plan before making holiday purchases. To avoid overspending, consider these tips. • If it is necessary to cut back on spending this year, communicate that with your family. It doesn’t mean the holidays have to change dramatically. Families should discuss what is important to them this season and be willing to make changes if necessary. • Set a holiday budget and keep track of what you spend. Include all expenditures -- not just the cost of gifts. Figure costs of food, entertainment, decorations, travel expenses, holiday cards and postage as well as the cost of new clothes for the season. If possible, look at how much you spent last year to help set your budget. • Set spending limits for each person on your list as well as for the other items in your holiday plan. Write your limit on an envelope and keep it handy. When you make a purchase, subtract the amount from the limit and place the receipt in the envelope.

• Decide how you are going to pay for holiday spending. If you plan to use only cash, leave your credit cards at home when shopping. If you write checks, record each check in your register and figure the balance before writing another check. This will help you stay within your limit.

• If you need or want to use a credit card, choose one to use for all your holiday spending. You can control your spending on one card much more easily than on three or four cards. Check your latest statement for each card to determine the annual interest rate. Use the one with the lowest rate. Only charge what you can afford to pay off each month. Pay close attention to your credit limit and understand the charge card guidelines. • Avoid impulse shopping. Start shopping far enough in advance that you will not be pressured to buy the first item you see in the store or catalog. This allows you to compare similar items and take advantage of sales.

• Talk with family and friends about drawing names for a gift exchange, setting dollar limits on gifts or not exchanging gifts among adults. Make gifts by hand or give gift certificates promising your time or talents. Offer gifts for such things as babysitting, car washing or a particular talent, such as photography. Give family keepsakes or pictures as gifts to create memories as well.

• If entertaining family and friends consumes a large part of your holiday budget, consider pitch-in dinners instead of shouldering all the work and expense yourself. You could also invite people for dessert and coffee or a small luncheon, brunch or breakfast.

• Though this holiday season is already under way, it is not too early to start planning for next year. Think ahead and take advantage of after-holiday sales. Good budgeting should take place all year long, not just at the holidays.

How do i adjust my thermostat for cold weather comfort and still lower my monthly heating cost? (Two Part Series)

2001-02-15T10:36:00Z

(First in a two-part series)

Monthly heating bills are directly related to furnace operation, and adjusting the thermostat for a lower temperature can reduce your monthly heating bill. Energy efficient heating can be obtained by setting the thermostat at 68 degrees F when you are home and awake and at 58 degrees F when you are away or asleep. Although this solution sounds simple, the required adjustments and low temperatures present problems. Someone must diligently adjust the thermostat to realize cost savings and you will regularly arrive home and wake up to a cold house (will talk about programmable thermostats in a minute). Also, depending on the age and activity level of those in your home, 68 degrees F may be uncomfortable.

Here is how thermostat adjustment influences energy use. Setting your maximum thermostat setting 5 degrees lower, from 70 degrees F to 65 degrees F for example, can reduce energy use by 10 percent. Lowering your thermostat 10 degrees for 8 hours each night during the time you are in bed can save an additional 5 to10 percent. For families that are away from home during the day, lowering the thermostat setting for an additional 6 to 8 hours each day will further reduce energy consumption.

Some people mistakenly believe that the energy savings from lowering the thermostat for a few hours are offset by the expense involved in reheating the house. Tests show that lowering your thermostat setting daily for intervals of four or more hours will reduce costs.

Many people have programmable thermostats that use time and temperature settings to automatically control temperature. Families with similar waking and bedtime schedules and regular home arrival and departure times are especially satisfied with the convenience and comfort offered by this technology. A programmable thermostat offers the convenience of automatic temperature control, with the ability to suspend the program and manually control the temperature. If you do not have a programmable thermostat, consider installing one because it can reduce energy use for both heating and cooling activities.

In addition to reduced energy consumption, modern programmable thermostats can relieve the discomfort of coming home to or waking up to a cold house. Models are available with digital displays powered by batteries and can be programmed with ease. Weekday and weekend schedules may be set and furnace operation may be manually controlled to accommodate variations in your schedule. Programmable thermostats that sense occupancy or light are also available and will control temperature based on the presence or absence of people. Many do-it-yourselfers can replace a manually controlled thermostat with a programmable model. Prices range from $30 to $100 (and higher) and care should be taken to select the correct brand for your furnace and wiring. You may want to hire an electrician or heating equipment dealer to replace your thermostat. Personal injury and equipment damage can occur if the wrong thermostat is installed.

Generally the higher priced models are more precise, more durable and more easily programmed. If you decide to do the installation, but want to know how it is programmed, visit a dealer that sells programmable thermostats and have them demonstrate the procedure. This equipment can be programmed in much the same manner as the timers for automatic sprinkler and programming difficulty varies with equipment brands.

An automatic thermostat can be programmed to raise the house temperature before you wake up in the morning and lower the house temperature when go to work or school. Select a model that is easily programmed and has the directions on the unit rather than on an instruction sheet. Make sure it is battery powered or has backup battery power so that the stored program is not disrupted by power outages. Discourage family members from overriding the program to increase the temperature setting.

In addition to thermostat adjustment, here are a few other suggestions to reduce monthly heating bills. Regularly clean and/or replace your heater’s filter and follow the manufacturer’s recommendations for schedule of service. Try not to use a space heater because it is an inefficient use of heating energy and expensive to operate. If possible, close the doors and heating vents to unused areas of the house. Use the sunshine to heat your home by opening the window curtains during the daylight hours and closing them at night. Keep outside doors closed and reduce the traffic going inside and outside. If you are involved in activities that are stationary, try wearing more clothing and/or using a blanket or comforter in your lap.

With The Increase In Cost Of Utilities How Can I Conserve My Energy Use?

2001-01-25T10:36:00Z

(Second in a two-part series)

Here are more inexpensive, energy-efficient measures you can use around your home to reduce your energy bills by 10 to 50 percent and at the same time save energy and reduce air pollution.

Dishwashing

* Turn off the dishwasher during the drying cycle and allow dishes to air dry.
* Don't run hot water continuously while washing or rinsing dishes by hand.

Laundry

* Wash only full loads of laundry.
* Use water no hotter than necessary for adequate soil removal and sanitation.
* Use cold water for rinsing clothes.
* Use good laundry techniques to obtain satisfactory results in one washing process.
* Avoid over-drying in the dryer.
* Vent the dryer to the outside.
* When using the dryer, use the automatic setting that determines when clothes are dry and shuts off the dryer.
* Line dry garment and household items when practical.
* Use the dryer efficiently. Avoid drying one or two items at one time. Dry consecutive loads.
* Remove items when dryer stops to avoid unnecessary wrinkling which requires pressing.
* Clean the lint filter after each load. Minimize ironing by choosing garments with easy care requirements.

Cooking and Baking

* Never use the oven or cook top as a room heater.
* Use oven to capacity. Cook more than one dish or one meal at a time.
* Use a cooking utensil that fits the electric unit or gas burner.
* Use tight-fitting lids on cooking utensils when appropriate.
* Reduce heat to lowest setting possible to maintain necessary cooking temperature when using surface units or burner.
* Use small appliances for cooking, baking and toasting. They are often more efficient than the range for small amounts.
* Preheat oven only when necessary. Do not preheat longer than needed to attain required temperature.
* When cooking with electricity, turn off the oven, surface units or burners shortly before food has completed cooking.
* Do not be an "oven peeper." Each time you open the oven door, you lose heat.
* Locate cooling appliances away from a heat source such as the range, hot air register or direct sunlight.

Refrigeration-Refrigerator and Freezer

* Avoid opening door or holding it open unnecessarily.
* Vacuum grills and evaporator coils to keep clean.
* If cold air is leaking around door, have door adjusted or gasket replaced.

Recreation and Entertainment

* Turn off the TV, radio or stereo when no one is really watching or listening.
* Disconnect an instant-on TV when you are not going to be using it regularly.
* Spend vacations closer to home.
* Use shop or hobby equipment efficiently.

Personal Care

* Don't let the water run unnecessarily while you shave, brush your teeth or wash your hair.
* Turn off personal care appliances after each use.