College is expensive! Sixty percent of those who graduate from college with a bachelor's degree also graduate with around $26,000 worth of student loans. For those who go on to pursue a postgraduate degree, the debt can be significantly higher. 

Luckily, there are some ways to reduce, and in some cases eliminate, this debt.

Loan Forgiveness Programs 

There are several programs you may want to consider that can eliminate part or all of those loans:

1. Volunteer for community service. If you apply to the AmeriCorps program, you can help people in your community while also reducing your debt. The program will repay part of your loans based on your service. 
   • The Peace Corps and Volunteers in Service to America also offer loan forgiveness programs.
2. Military service can help you pay for school. If you enlist in the military before you start college, you can get help paying for your schooling. 
   • There are some loan forgiveness programs available if you enlist after you’ve graduated.
   • Speak to a military recruiter about a plan that could work for you.
3. The profession you choose may help you pay down your debt. If you pursue a career in teaching or the healthcare field, speak to your employer or Human 1Resources Department about programs to reduce or pay off your debt from student loans.

Financial Hardship Programs 

If you don’t have a job, earn very little, or your loans are a large percentage of your earnings, one of these plans may be able to help:

1. Income Contingent Repayment Plan (ICRP). This program applies specifically to Federal Direct loans that aren’t PLUS loans. 
   • ICRP bases the amount of your monthly loan payments on how much money you earn. The payments can be as little as a few dollars per month. Even better, once you’ve made these small payments for twenty-five years, any debt remaining on the loan is forgiven.
2. Income Sensitive Repayment Plan (ISRP) for your FFEL loan. The amount of the loan, your income, and size of your family all determine how much you will need to pay each month.
   • The payments you make have to be at least enough to cover any interest that accrues, and the loan must be paid off within 10 years.
3. Income Based Repayment Plan (IBRP). This plan is available on both FFELs and Federal Direct loans. IBRP offers flexible payment options for twenty-five years. After this time, the rest of the loan is forgiven.
   • In order to qualify for this plan, you can’t be in default on your loan payments.
4. Hardship Repayment Plan on Perkins Loans. This plan has a minimum payment of $40/month. There are also extensions under certain circumstances, such as if you’ve been without work for a while or if you have a long illness.

More Programs - No Financial Hardship

These options can also help you, even if you’re not having hard times financially:

1.  Loan consolidation. Combine several high-interest loans into just one, lower-interest loan. This option allows you to get a lower interest rate and cut down on multiple payments.
2. Defer your student loans. If you're experiencing economic hardship, a period of unemployment, or if you’re going back to school, you may be allowed to defer your student loan payments until a later time.
3. Get a loan forbearance to give yourself more time to pay off the loan. A forbearance is a temporary reduction in payments.
   • A lender may grant you a forbearance if you’re unable to pay off your loan after a certain number of years. They may also grant a forbearance if your payments on your student loan are greater than 20% of the money you earn each month or if you run into a number of other unforeseen problems.

These tips and payment plans can help you manage and pay off your student loans. Consulting with a financial expert can bring to light additional ideas that can help, too.

As the world becomes more complicated, you have the responsibility to guide your children the best you can. One of the most trying subjects to teach your kids about is how to appropriately manage money.

More specifically, teenagers develop great interests in the almighty credit card. Credit cards are not to be taken lightly at any age, but especially during adolescence. How can you educate your teens about the use of credit cards? 

These strategies will help them learn to use credits cards responsibly:

1. Ask where the money will come from. Insist your teens know specifically where they’ll get the money to pay off the credit card charge before they charge anything. 
2. Encourage responsibility. Explain that your teens are responsible for paying their credit card bill on time. In addition, require them to pay off their credit card balance within 30 days. Discuss how interest charges and other fees work and that paying such fees is like giving away their money for nothing.
   • Take care to listen to how your teen takes part in this discussion. If you determine your teen requires more maturity or understanding of the information, avoid giving them a credit card and explain briefly how you arrived at your decision.
3. Consider starting with a limited balance credit card. Have your teenager save money until a certain amount accumulates, like $100.00. Then, accompany them to your banking institution or a store to obtain a pre-paid card for the $100.00.
   • Even though your teen paid for the card with their own money, it’s a good 1idea to tell them to make every effort to stretch out their use of the card. A benefit of this method is that your child saved the money upfront before actually charging items. 
   • They can, therefore, understand that the credit card balance is tangibly their own hard-earned money. The downside of this method is it may not teach your child the responsibility of charging only what they can pay off within the next month. 
4. Provide a credit card to replace weekly allowance. Consider converting their allowance to a monthly credit card balance. This method allows them to learn about credit card management. Consider this example:
   • You normally pay your teen $30 cash weekly allowance. When they turn 16, state you’ll now provide a credit card rather than the $30 cash weekly. Explain that they can charge up to $120 per month (4 weeks times $30 equals $120) as you'll pay up to that amount monthly to cover their credit card purchases.
   • Stress that if they charge over $120, they must come up with the difference to pay off any balance over the $120 when the statement arrives.
   • If they charge over $120 for the month and are unable to come up with the difference, they must surrender the credit card until they pay you the difference owed (even though you’ll go ahead and pay it off to avoid monthly fees).
   • Using this method to teach your teen how to handle credit cards is a helpful lesson in managing their money with limited funds. Your teen learns to limit spending to stay within their means.

Teaching teens how to handle credit cards is challenging.

The good news is that if you start early with your kids about how to earn, save and spend money, they’ll easily progress to understanding the above concepts with your help and guidance.

Praise your teens' efforts when they manage their finances and credit card issues well. You’ll build their confidence for the future when you teach them how to handle credit cards wisely

Most people view estate planning in the same way they view a root canal: Put it off until the pain is too great to ignore any longer. Also, those with little income or net worth believe that estate planning doesn't apply to their situation. But estate planning is much more than just the allocation of cash, real estate, and other assets. There are other things to consider, too.

There are many errors that occur again and again in estate planning. Avoiding these mistakes is half the battle.

Steer clear of these mistakes for a successful estate plan:

1. Procrastination. Estate planning is a little like completing a tax return. No one really wants to do it. But it's so important to push your reticence aside and get it done!
2. Not paying attention to the conflicts that exist within your beneficiaries and estate plan. For example, if your will declares that your husband receive your retirement account, but your ex-husband's name is still listed as the beneficiary, this could prove to be a big challenge.
3. Not using the unified credit to your advantage. This only applies to those with a significant net worth, but this mistake is made regularly. In most cases, assets pass to the surviving spouse. Up to $5,250,000 can be excluded from taxation.
   • If this isn't handled properly, though, the surviving spouse will only have their exclusion available when passing assets on to their heirs.
   • There are ways to potentially shelter this money from taxation in the future. One solution is a credit shelter trust.
4. Not having adequate life insurance. Life insurance can be a great estate-planning tool for the affluent, but life insurance is vital to those with low income as well.
   • Consider how your family will survive financially if you or your spouse were to die unexpectedly.
   • If you have significant wealth, you might consider using life insurance in conjunction with an irrevocable trust for tax purposes. An attorney that specializes in estate planning can make recommendations based on your unique situation and explain the details.
5. Creating a plan that lacks flexibility. Creating a plan with a little wiggle room will allow your heirs to take advantage of any new laws as well as use the assets in the most advantageous fashion.
6. Not gifting assets. Up to $14,000 can be gifted to each beneficiary per year without incurring a gift tax. This can be a great way of reducing the taxes imposed on your estate at the time of your death. You also have the chance to see how well your beneficiaries can manage your assets.
   • Additionally, you have the advantage of being able to witness someone enjoying your assets. You can't do that after you're gone!

Estate planning isn't the most enjoyable activity, but it is likely to be one of the most important things you do for your family.

Everyone should have a basic estate plan that spells out their wishes. This is important even if there are no children or assets. An attorney can be invaluable unless your estate is very simple. And even then, the $100+ it will cost to have an attorney take a look at your documents will be money well spent.

Offshore bank accounts frequently make us think of very wealthy people trying to avoid taxes. But the truth is the average person can open an offshore bank account quite easily. Doing this can be financially prudent, too, even if you're not rolling in money.

Regardless of whether you have $10,000 to deposit or $100,000, offshore accounts can be significant tax advantages for account holders who make foreign investments. Usually this involves setting up a foreign corporation. There's also much greater privacy; in many jurisdictions there are favorable laws to protect the identity of account holders.

These accounts can also provide excellent asset protection; assets held in foreign banks can be extremely difficult to seize. Commonly, wealthy persons facing lawsuits transfer assets offshore.

All offshore banking jurisdictions have their own laws and regulations; you'll need to do some research to see which one best meets your needs. And keep in mind that the tax laws around foreign accounts are tightening all the time. Uncle Sam always wants his money.

Offshore Account Requirements

Offshore accounts are usually somewhat expensive to set up. The minimum required initial deposit can be quite high. However, there are options for those without a big bank account.

In addition to your initial deposit, most offshore banks require these items to set up an account:

1. Identification documents. The basic requirements are really no different than opening a bank account in the United States. You'll need to provide the basics like name, social security number, driver's license or passport, and address. Also, be ready with the real thing; notarized copies of your documents are usually required.
   • These banks are quite serious about verifying your actual address since there may be tax implications. Of course, this depends on the country in which you live.
2. Current bank statements. Offshore banks may require that you submit your last 6-12 months of statements from your current bank. They're also likely to ask you about the nature of the transactions you're planning on making. Offshore banks are under increased pressure to avoid supporting illegal activities, whether knowingly or unknowingly.
3. Choose a currency for your account. Unlike at your local bank, you'll have to choose a currency. This can be advantageous if other currencies are currently stronger than the US dollar. There can also be additional taxes imposed on interest earned in accounts held in a foreign currency. Be sure to talk to your tax advisor first.

Deposits to your offshore account can only be made by international electronic wire transfers from a local bank. Domestic checks are generally not accepted and traveling around the world to deposit cash is impractical. Check local fees for these transfers before you choose a local bank to provide that service.

Withdrawing money, on the other hand, is quite easy. Most banks will issue a debit/ATM card that can be used anywhere. Some offshore banks will provide checks, but these are unlikely to be accepted as a form of payment in most situations.

One other practical consideration for withdrawals is to have a local bank account and use the same international wire transfer method you use for making deposits. This provides the best of both worlds, since you can move large sums of money around via wire transfers and withdraw smaller amounts with your ATM card.

Could an Offshore Account Benefit You?

Though there's a lot of glamour and mystique around offshore bank accounts, you can see that acquiring one is largely similar to opening a regular bank account down the street. There are some additional steps to ensure that you don't have any criminal intent, but that's one of the only major differences.

Of course, you'll have to select a currency and decide on the best method for handling deposits and withdrawals. This will take a little research. But the small amount of work involved may be worthwhile if an offshore account satisfies your financial needs. Investigate your options today. You may be surprised at how beneficial these accounts can be.

Mobile payment apps make transferring money an easy process. However, it's important to keep your personal financial information safe while using them.

Following these tips will help keep your information safe:

1. Only use official mobile payment apps. The source of your apps matters. You want to avoid the fake ones.
   • Experts recommend obtaining the apps directly from the stores where you shop and not a random blog or sales page. Stores like Google Play and the Apple store also have official apps you can purchase.
   • Fake apps are floating around the Internet, so you'll have to be careful.
2. Get two-factor authentication. This type of authentication offers more protection for your financial and personal information.
   • Two-factor authentication is an extra step during the log-in process. After you sign up for it, you'll have to enter your password plus a special code to get access to the app. The special code is usually sent via a text. This additional layer of authentication depends on your mobile phone number.
3. Make your phone safer. Have you set up a pin and password for your phone? Making your mobile device safer is crucial to keeping your information from hackers.
   • It's important to set up the pins, codes, and passwords before accessing the money apps.
4. Be careful with public wi-fi. It may be best to save your mobile money app transactions for a secure network.
   • Public wi-fi is convenient, but it can be hacked. This could leave you vulnerable to people who want to get your personal and financial data.
   • Checking the network for security is essential before using an app to transfer money.
   • For an extra layer of protection, consider turning off wi-fi in a public area. This way you're not tempted to use it by mistake because you forgot.
5. Pay attention to your statements. The apps are easy to use and make transferring money a fast process, but you still have to pay attention to the statements and ensure each transaction is correct. You may want to log in frequently to check for updates.
6. Report issues immediately. Waiting for issues to resolve on their own is not the best plan for mobile payment apps. If you see any transactions you don't recognize on your statement or account, report them immediately. Transactions may be stopped before a hacker gets hold of your money. Also, report it to your bank.
7. Consider a phone block app. Smartphones are a lifeline, so losing a phone can affect your business, family, and life. What would you do if you lost your phone?
   • You can download apps that will block access to your phone if it disappears or is stolen. These apps require you to enter a code or password from another device, and your missing smartphone is locked. This will add another layer of protection to your personal data.
8. Check for updates often. Do you have automatic updates turned on? It's important to keep the operating system on your mobile device current. Automatic updates will make the process easier, or you can do it manually.
   • Hackers search for vulnerabilities in older operating systems all the time, so keeping an updated phone is a good idea. You'll have improved speed and the latest patches to stay safe.

Mobile payment apps are an easy way to send money. However, you'll have to be careful while using them to protect your private information. Using these tips will enable you to take advantage of the convenience while bringing you greater peace of mind.

Non-financial decisions can have a huge impact on your money situation. You might be surprised at how much influence your choices have over your debt, future earning potential, and retirement.

Those that are financially successful tend to consider the potential impact of all decisions, including those that have nothing to do with money.

Discover the 3 non-financial decisions that have the greatest impact on your financial life:

1. Marriage can have a significant effect on your finances. You might be a great investor. You have your retirement all planned and you stick to your budget 100% of time. But a divorce can cost you half of your assets and potentially have you making payments to your ex for the rest of your life.
   • Marrying a suitable partner is one of the most important factors in determining your financial situation later in life. Think about all the ways your spouse could alter your finances. It's important to choose wisely.
   • Staying married doesn't necessarily result in financial success either. Before getting married, consider your potential spouse's spending habits and current debt.
   • There are other factors to consider, too. Do you both want children? Are you both planning to work? What type of income is your potential spouse likely to generate?
2. Your educational decisions are extremely important. Attending medical school is likely to result in a better income than majoring in English. Higher education isn't necessarily a fitting choice for everyone, but it's something to consider.
   • Reflect on what you love to do, but avoid ignoring the economic implications. Think about how much your education will cost in terms of money and time. Also consider the demand for workers in your chosen field. There's plenty of salary information available. Do some research.
   • The cost of making a poor choice can be considerable. You may be miserable with your job, and then discover that you need to go back to graduate school to stay competitive.
   • Your educational choices can affect your income, employment, and overall happiness.
3. Children greatly impact your money situation. Children are incredibly expensive. Having one or more children can potentially mean the loss of income for several years. Financial priorities can also change when you have kids.
   • There's less opportunity to save and invest. Think about the food, clothes, medical bills, and all other expenses associated with children. That's money that could've been put towards your retirement.
   • The cost of higher education continues to rise. How much will a degree cost in the future? What about if you have three children? Avoid waiting until your kids are in high school to make the necessary financial adjustments.

Many decisions have financial implications, even if they may seem unrelated. Marriage, education, and children can potentially change your financial future in significant ways. Think about the effects these choices can have on your financial well-being.

Sometimes success isn't about making the perfect choice, but rather about refraining from making a poor choice. Take the time to make informed decisions. Your financial future depends on it!

Perhaps you, like many others, believe that once your will has been drawn up, that's the end of the process. While wills have never been anyone's idea of fun, it's important to review your will on a regular basis. There are many reasons to pull out your will and give it a thorough review.

Let's examine the most common reasons:

1. New family members. In general, if a will is worded properly, any children that are born after the will has been signed will be entitled to the same share of the estate as the pre-existing children. Even so, if you have a new child, check with your attorney just to be sure everything is worded according to your wishes.
   • Also consider how your wishes might change based on other new people in your life. What if you re-connect with a family member? What if you make a new best friend? Maybe one of them would be the person to take good care of your boat when you're gone. Consider all new people who've entered your life since you signed your will.
2.  Moving. States have different laws regarding estate taxes and how property is treated. So if you move from one state to another, there may be some major issues that need to be examined. Consult your attorney anytime you move to a new state as this can have significant ramifications.
3. A windfall. A large increase in your wealth may require another look at your will. Again, this depends on your state. Some states have monetary limits for certain types of inheritance items. Creating a trust might be the right move for you now.
   • With your new wealth, you may also have a greater degree of flexibility to take advantage of certain tax shelters. And you might be considering being more generous regarding who's included in your will.
4. Divorce. Most of us aren't interested in leaving anything to our ex-spouses. If you've gotten divorced since your will was drawn up, it's time to talk to your attorney. A proper and thorough revision will reduce the likelihood of the will being contested. Consider the fact that if you don't change this document, your ex could end up with everything!
5. Death. If your spouse or only child passes away, your will should undergo a thorough review. This event may radically change how you wish to distribute your assets. Back-up recipients are usually specified within a will, but it never hurts to take another look.
6. Change of heart. Most wills are drafted by people who are still quite young. As you age, however, your wishes may change. Maybe you were very close to your brother at one point, but haven't spoken to him in the last five years.
   • Additionally, as some people age, they become more involved with charitable organizations. Maybe you'll have the desire to include such a group in your will.

Your will we most likely not be a static document throughout your life. As your circumstances, family, and social connections change, some modifications will likely need to be made.

Review the list above and note if any of these items have occurred since your will was completed. If so, schedule some time with your attorney today. In this case, more than in many others, it's better to be safe than sorry.

Financial independence is highly desirable. Yet, for some reason, it seems to elude many of us. You've likely tried your hand at many different approaches, yet none have been able to give you the anticipated results.

The good news is that financial independence can be achieved. By making certain adjustments to your life, you'll find yourself starting to build financial independence. So put aside your plan to work harder or put in longer hours and read on to find the answers you’ve been searching for

Following these steps will lead you to financial independence:

1. Eliminate the word “credit” from your vocabulary. Having a good credit score can open up opportunities for you. But living in the credit culture also puts you in a stressful situation.
   • If you’re seeking financial independence, start by doing away with credit
   • You probably have a few credit cards in your wallet. Get rid of them! If that makes you nervous, only keep one for emergencies. Just ensure the credit limit is somewhat in line with the amount of cash you’ve saved.
   • If you're unable to purchase something with cash, it probably means you can't afford it. Live within your means.
   • Avoid borrowing for frivolous expenditures. Those are usually the hardest loans to repay.
2.  Treat needs and wants differently. Take a look at your life. How many of the things you have or do can be considered necessities? If you're honest with yourself, you'll realize you're piling on unnecessary expenses focusing on your wants rather than your needs.
   • Making a list of the things you require for survival is a necessary step for financial independence.
   • Everything that didn’t make the list can easily be eliminated from your expenses each month. Why put that amount of burden on yourself? It's time to give your finances a break.
   • The things you do to maintain a calm existence can be added to your list of necessities. For example, your yoga class may be necessary because of the physical and emotional benefits. But you can reduce the monthly expense by purchasing a yoga DVD and working out at home.
3.  Tap into your skill set. Are you working in a field that you love and that maximizes your skills? If you think about it, you'll realize that you're most productive when you’re doing something you like or are good at.
   • Think about your current job. Is it bringing out the best in you? Or, can you earn more and increase your productivity in another field?
   • Perhaps you can pursue a transfer to another department at your current place of employment. Or maybe you want to move on to something completely different.
4. Save money at all costs. Even if it's a dollar at a time, put aside money for your savings account each month. Learning to save helps you develop an understanding of its importance.
   • One way to save is to request a salary deduction each month. That amount can go to an investment account, which limits your access.
   • Many companies have 401(K) or 403(B) accounts that can get you started with a savings plan. Look into what’s available at your place of employment.
5. After reading this, you'll likely realize it's much easier than you think to make some simple financial adjustments. Give yourself four weeks of this routine and then assess how it’s going. You'll feel encouraged by the positive results!

It’s important to monitor your credit reports at least yearly. That way, you’ll regularly be able to spot and handle any mistake that occurs on your credit report that could adversely affect you.

Using this process will help you find errors on your credit report and correct them:

1. Go through the report with a fine-tooth comb. When you receive a copy of your credit report, sit down and take the time reviewing it. Consider it an important part of your financial goals to find out what your creditors are “saying” about your financial life.
2. Look at each item. Carefully check each entry to spot any listings that don’t look familiar. If you don’t remember an item, make a note out in the margin, like “What’s this?” or “I didn’t apply for this loan.”
3. Notice names of companies and financial institutions. Are there any you haven’t heard of? If so, put an “X” by them so you can look up the names on the internet. An unfamiliar name may well be the name of a company that is known by various names.
   • Consult your own financial records. If the company still sounds unfamiliar, pull your own financial records for the year in question. Perhaps you’ll see some record of what you did that will refresh your memory regarding that part of your report.
4.  Call the credit bureau where the report originated. If you can’t resolve or figure out a particular listing on your report, contact the bureau who issued the report. Experian, Equifax, and Trans Union each offer customer service and might be able to assist you.
5. Contact the company that you believe has made false claims against you. Try to resolve the situation with the entity directly and insist they make the proper changes to the credit bureau to correct your information.
6. Dispute the claim. In the event you are unsuccessful in resolving a credit issue with a creditor, you can formally dispute the claim. You do this by phoning the credit bureau that produced the report. You can also contact the credit bureau online to fight the claim there. State you want to dispute the claim. You’ll likely have to explain why.
7. Place a fraud alert on your credit report. If your identity was stolen or any of your banking accounts or credit cards were inappropriately used by others, you should contact the agency where you received your credit report and follow their steps to place a fraud alert on your credit report.
   • This way, the agency will monitor your account extra closely to ensure your privacy and security and might even inform you of any action as it occurs on your account under your name
8.  Do your homework. Learn more about credit reporting from the Federal Trade Commission’s website at http://www.ftc.gov/bcp/menus/consumer/credit.shtm.

Your credit report should be an accurate reflection of your financial life. Go through your credit report and examine each entry carefully. Take notes of entities issuing information about you and then peruse your own financial records to support any claims you may use as you go through this process.

Stay on top of your credit reports so you can correct errors right away. Protect your credit and identity by obtaining your credit report at least yearly and following up on questionable data.