College scholarship

Need money for college? If you’re a credit union member, you may be eligible for one of the Leonard E. Wedel Scholarships offered by LifeWay Credit Union. Winners will be chosen based upon their financial need, academic record, and service to their community, school and church. Information packets will be available April 1 and must be returned by Friday, May 27.

Please call us at 615-251-2089 if you have any questions.

New safety seat advice makes sure kids are safe

The American Academy of Pediatrics and the National Highway Traffic Safety Administration recently established new child safety seat advice for parents (health.yahoo.net March 21).

Both organizations recommend that children riding in cars should remain in rear-facing child safety seats until their second birthday, or until they reach the maximum height and weight for the car seat. The new guideline is based on research indicating that children younger than two years of age in rear-facing safety seats are 75% less likely to die or receive serious injury in a crash (aap.org March 21).

This updates previous advice from pediatricians that children should be placed in front-facing car seats after their first birthday (chicagotribune.com March 20).

The medical group and federal agency also suggest parents use booster seats for older children who've outgrown child safety seats until they reach a height--typically 4 feet 9 inches--where a vehicle's standard shoulder-lap belts fit the child properly (nhtsa.gov March 21).

Consider these recommendations--in addition to reviewing the new guidelines--to ensure that child passengers are safe while riding in your vehicle:

• Purchase new. Buying new ensures the car seat or booster seat is damage-free. It is often hard to tell if a secondhand seat has been damaged from misuse or a previous accident. Unseen damage could compromise safety.
• Check recalls. Be certain the seat model you own or plan to buy hasn't been recalled. Check with the National Highway Safety Administration on the Web for a list of booster seat and child safety seat recalls. Contact the manufacturer immediately if you find out that the model you purchased has been recalled.
• Consider options. Buying a safety seat that converts into a carrier or booster seat may help you avoid the future expense of multiple safety devices. Remember to check the device's instructions or contact the manufacturer to make sure the device is approved for double duty.
• Proper installation. A child safety seat is only fully effective when correctly installed. Have your seat professionally installed or visit a police or fire station to have your child safety seat checked for proper installation. Some Red Cross chapters perform this safety check as well.

Disaster relief tips: options, warnings

Resist the urge to open your wallet too quickly following disasters, like the ones that have devastated Japan, if you want to direct your charity dollars where they yield the greatest benefit. Take a little time to check out the charity so you give to the good ones and steer clear of the scams.

Con artists exploit disasters, setting up shop quickly on the Internet and preying on your desire to provide short-term emergency aid and long-term rebuilding efforts.

Watch for these signs of charity scams:

• "Cash, please." Never donate cash if you can help it. Write a check to the charity--not to the person asking for the donation--so you have a record of your donation. Ask for a letter from the charity with donation amount and date for tax purposes.
• "We need your account number." Legitimate charities don't ask for this.
• "About 10% goes to the charity, and 90% goes to administrative costs." This is not a good use of your money. You may choose to donate to charities that spend 20% or less of your donation on administrative costs. The less spent on administrative costs, the better, so ask for percentages. If they just say, "80%/20%," persist and ask which of those numbers is for administrative costs.
• "We're a registered charity." Ask for a registration number, then check with the Better Business Bureau Wise Giving Alliance at 703-276-0100 or give.org for more information.
• "We're sending you this e-mail request for a donation." Be suspicious--most legitimate charities don't send e-mail requests unless you've donated before. Avoid clicking on links in solicitations for money, even if they appear to come from familiar organizations.
• "You don't need to check us out--we're legitimate." No legitimate charity will say this. Besides the Wise Giving Alliance, other charity watchdogs include the American Institute of Philanthropy at charitywatch.org, Charity Navigator at charitynavigator.org, and GuideStar at guidestar.org. Or, donate through a local fundraising federation such as the United Way (Consumer Reports Money Adviser February).

Here is a partial list of reputable organizations involved in Japan's disaster relief efforts (abcnews.go.com March 12 and huffingtonpost.com March 11):

• Doctors Without Borders (doctorswithoutborders.org);
• Global Giving (globalgiving.org); text JAPAN or 50555 to donate $10;
• International Medical Corps (internationalmedicalcorps.org); text MED or 80888 to donate $10;
• Operation USA (opusa.org);
• Red Cross (redcross.org); text REDCROSS or 90999 to donate $10;
• Salvation Army (salvationarmyusa.org); text QUAKE or 80888 to donate $10; toll-free 800-SAL-ARMY [725-2769];
• Save the Children (savethechildren.org/japanquake); text JAPAN or 20222 to donate or toll-free 800-728-3843; and
• World Vision (worldvision.org); text 4JAPAN to 20222; toll-free 888-56-CHILD [24453].

Keep cost of caring for elderly parents under control

More than 40% of caregivers spend about $5,000 each year caring for a loved one; many individuals receiving care are parents of baby boomers (USAToday.com, Feb. 28).

If you're a caregiver, here are some ways to help cut costs that won't compromise quality of care:

• Seek government help--Your local Area Agency on Aging can suggest programs in your state that can help with the financial burden of caregiving. Fifteen states offer a Cash & Counseling program for low-income seniors who are eligible for Medicaid. The program helps seniors pay for in-home daycare, including care that family members provide.
• Pay family members for caregiving--More than one-third of caregivers have been forced to quit jobs, take early retirement, or reduce work hours because of their caregiving commitment. Consider paying yourself or another family member out of your parent's savings for the care you're providing. This "salary" can help offset lost income. To avoid disputes with other family members, create a contract that outlines the terms of the agreement.
• Hire outside help--A survey by the Hartford Group, Hartford, Conn., shows that 80% of boomer caregivers feel moderate to high levels of stress associated with caregiving. Younger boomers, between 45 and 54 years old, appear to be shouldering the greatest burden; half report that they worry about the impact that caregiving has on their jobs. Hiring someone to provide some care allows you to provide better care for your parent when you're fulfilling your caregiving role.
• Claim your parent as a dependent--You may be eligible to claim one or both of your parents as dependents, based on how much support you provide. To do this, your parent's income, excluding Social Security, must be less than the amount of the personal exemption. For 2010, the personal exemption was $3,650; for 2011 it's $3,700. You also must provide more than 50% of your parent's financial support to qualify. For more information, visit irs.gov.
• Deduct your parent's medical expenses--If you can't claim a parent as a dependent, you might be able to deduct medical expenses. To qualify, you must provide at least 50% of your parent's financial support; your parent doesn't have to meet income restrictions. The deduction is limited to medical expenses that exceed 7.5% of your adjusted gross income. Qualified expenses include in-home health care, the cost of a nursing home, dental care and prescription drugs.
• Consider your own long-term care--After seeing firsthand what being a caregiver means financially and emotionally, many boomers are making arrangements for their own long-term care. Paying for long-term care insurance policies isn't easy for families that also are saving for retirement and children's college expenses. About 20 million middle-age Americans are stuck between conflicting sets of responsibilities, according to stltoday.com: caring for their own kids--and their parents. You also can start preparing for your own long-term care, without draining your money, by drawing up a living will and a health-care proxy.

Follow fill-up tips as gas prices rise

You've probably felt the sting of climbing gas prices in recent weeks. The national average is $3.38 a gallon--19 cents more than last week and 68 cents more than one year ago, according to the Department of Energy.

Fortunately, you can take steps to lessen the financial burden. Use these strategies to save money on gas, even as prices soar.

• Use online tools and apps. Websites like GasBuddy.com compile gas prices in your neighborhood. Type in your ZIP Code to find the station with the lowest price near you. GasBuddy also offers mobile apps for the iPhone, Android devices, and Windows phones (ABCNews.com Feb. 28).
• Avoid brand names. Prices often are cheaper at independent stations that are not affiliated with oil companies or gas brands, because they buy gas from more than one company (Bankrate.com Feb. 25).
• Don't fill up near the highway. It's all about location: Gas stations near freeways or highways often demand higher prices for their convenience. To find a lower price, put some miles between you and the highway before you fill up (WalletPop.com Feb. 25).
• Take advantage of reward programs. Some grocery stores partner with chain gas stations to offer fuel discounts to shoppers. And if you belong to membership-based stores, like Costco, you also may be able to find cheaper prices if you fill up at their stations.
• Use cash. Find out if any gas stations in your area accept cash only or offer a cheaper price if you pay with cash. You often can find a lower price at these stations than you would at one that charges the same price for paying with cash or a credit card.

Money-saving tax tips for filers

Before filing your tax return this year, become familiar with important changes since tax year 2009. Then take advantage of every credit, deduction, and free resource available (The New York Times Feb. 18).

Last year, millions of taxpayers didn't understand that they needed to complete Schedule M to claim the Making Work Pay tax credit. Luckily, the Internal Revenue Service (IRS) gave eligible filers the credit anyway, but don't count on that going forward.

First stop: IRS Publication 17, which has a link for "What's New for 2010." And there are plenty of other resources to guide you through the tax-filing process, including websites, tax software, and free local assistance.

Here are some suggestions:

• Find all tax deductions. A deduction reduces the amount of your taxable income. Common examples include mortgage interest you paid, charitable contributions, and medical and dental expenses that exceed 7.5% of your adjusted gross income. For more information about tax deductions for the 2010 tax year, visit irs.gov or efile.com/tax-deduction.
• Don't overlook a single tax credit. A credit is better than a deduction because it cuts your actual tax bill. Common examples include the child tax credit, dependent care tax credit, savers credit, and first-time homebuyer tax credit. For a list of family, work, and home-related tax credits, visit efile.com/tax-credit/federal-tax-credits.
• Let go of some tax breaks. Tax breaks that disappeared for tax year 2010 include the exclusion from income of up to $2,400 in unemployment compensation, which means that all 2010 unemployment payments are taxable; and a deduction for state or local sales or excise taxes on new vehicle purchases (unless you bought the vehicle in 2009 after Feb. 16, but you paid the tax in 2010). And the first-time homebuyer's credit is available only if you signed a contract before May 1 and closed before Oct. 1, 2010 (New York Times Feb. 18).
• E-file if possible. Visit irs.gov for options. Or you can e-file with commercial tax software or through a paid tax preparer. Shop around, and take into account the filing costs for both federal and state returns.
• E-file with Free-file if you're eligible. If your income is less than $58,000, visit irs.gov for information about 20 tax software companies that make their products available for free; some also support state tax returns for free. If you make more than $58,000 and are comfortable preparing your own tax return, consider Free File Fillable Forms at irs.gov/freefile.
• Use direct deposit. This is the fastest, safest way to receive your tax refund.
• Get free help from VITA. The Volunteer Income Tax Assistance program offers free tax help to low- to moderate-income taxpayers, generally with incomes $49,000 and below. Certified volunteers are at VITA sites throughout the community—neighborhood centers, senior centers, libraries, schools, malls, and many credit unions. Most offer free e-filing. Call 800-906-9887 for the nearest VITA site.
• Visit Taxpayer Assistance Centers (TACs). If you don't think your tax issue can be handled online or by phone, TACs provide face-to-face assistance through April 9. Visit irs.gov/localcontacts to find the TAC closest to you.
• Use Taxpayer Advocate Service (TAS) as a last resort. The TAS helps taxpayers resolve problems with the IRS. It's free and confidential after you've tried to resolve the problem through regular IRS channels. Call 877-777-4778.

Finally, plan ahead. The average refund last year was $3,003. Rather than giving an interest-free loan to Uncle Sam, file a new Form W-4 with your employer and have less money withheld from your salary, putting more money in your pocket throughout the year.

'Brady Bunch' families face financial challenges

-Blended families are the new normal. Divorce, remarriage, and living outside conventional marriage have changed families and created an expanded network of step relatives.

With more than half of all marriages ending in divorce and more than 40% of all Americans having at least one step relative, it's imperative to talk about money and how you'll handle it before entering into a new marriage (USAToday.com Feb. 6).

To keep your relationship sane and decrease money problems:

• Find common ground--Talk about money before blending families. Decide if you'll have separate or joint accounts, or both, as well as who'll be responsible for each child's expenses. What contributions can you count on from ex-spouses; what financial commitments have you made to ex-spouses?
• Discuss money issues with family members--Your children might have to change habits or get used to new rules pertaining to money, but including the kids in discussions about finances early on will lessen future problems.
• Plan ahead--If you're remarried and you and your new spouse each bring children to the new marriage, discuss how you'll pay for your children's college education. Will you both chip in for each child or will you be responsible for paying for only your own children? Will your former spouse, and perhaps the child's grandparents, play a role?
• Check insurance policies and wills--Read policies carefully to be certain that all family members are covered the way each parent wishes. It's just as important to check your wills to make sure the wording includes all children, both natural and adopted.
• Consider estate planning--Meet with an attorney and make sure all kids from past marriages are considered. This includes looking at college educations, inheritances, and even custody issues. Determine who will be responsible for your children if you die.