Ring in the New Year with a Family Budget

After holiday spending on gifts, gatherings and travels, now is a good time to rein in expenses and examine your savings plan. A good resolution for the coming New Year might be to re-examine – or create for the first time – a family budget.

The Kentucky Department of Financial Institutions (DFI) encourages consumers to review their personal budget several times a year.

“Having a budget in place will give you a sense of control over your money,” said DFI Commissioner Charles Vice. “By documenting your spending habits, you might discover ways to spend less or think of extra ways to save. And you can work into your plan ways to build assets for the future.”

Budgeting can be done in just four steps. First, you should track your daily spending for a week or longer. This can be done simply by carrying a slip of paper or notebook around for a week and recording every expenditure – down to the last snack machine purchase.

The next step is to determine your income and expenses. Income includes wages, public assistance, child support, alimony, interest, dividends, social security or other sources. Expenses include housing costs, taxes, insurance, utilities, services, food, loan payments, credit card bills, child care/elder care and other costs. Expenses also include things you may not regularly spend money on like car repairs, vacations, new clothes or entertainment – anything that shows up on your daily spending diary should show up somewhere in your expenses column as well.

In a successful budget, your income should exceed all your expenses. However, sometimes you may find that your budget doesn’t work out as well as you would like it to. This is where the final two steps come in – decrease spending and/or increase income.

To decrease spending, it is important to identify items that are “wants” versus those that are “needs.” You could eliminate anything that is not essential. Use tips for saving energy and water to save money on utility bills. Pay off debts with higher interest rates first. Save by using coupons or shopping for discounts – and don’t buy on impulse.

Increasing income can include changing jobs or securing a promotion. Some may choose to hold a second job or become an entrepreneur. Taking advantage of tax credits may also help.

For more tips, visit Governor Steve Beshear’s website for helping Kentuckians through tough economic times at www.assistance.ky.gov/. For information on how to save, invest and avoid fraud, visit www.kfi.ky.gov/public/invest.htm. You also can get help with credit management at www.kfi.ky.gov/public/credit.htm. 

DFI is an agency in the Public Protection Cabinet. It supervises the financial services industry by examining, chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky. DFI’s mission is to serve Kentucky residents and protect their financial interests by maintaining a stable financial industry, continuing effective and efficient regulatory oversight, promoting consumer confidence and encouraging economic opportunities.

Kentucky Deferred Compensation (KDC) Institutes Positive Changes

Important KDC features remain unchanged

• You will continue to have 24/7 access online and by phone to
  manage your account information and investments.
• You will use the same website, www.kentuckydcp.com, and the
  same phone number, toll free 1.800.542.2667 or 502.573.7925,
  as you do today. You can also continue to call the SAVER Line at
  1.800.793.4401.
• Authority staff in Frankfort will continue to be available to serve you.
• Local registered representatives will continue to be available to
  answer questions, review plan information, and conduct individual
  and group meetings.

Service enhancements available

Enhanced Participant Plan website available at www.kentuckydcp.com, providing:

• The ability to change your contributions on the plan website (or
  via the SAVER Line).
• The ability to request a paperless loan on the plan website.
• The option to Go Green and choose to receive your statements
  online instead of by mail.
• The ability to generate period specific account statements on-demand.

Expanded education and investment information available online
in the Resource Center of the Plan website.

• Download audio files to hear what the experts have to say on a
  variety of financial topics.
• Articles on retirement planning, personal finance, estate planning
  and family finance to help you become more informed.
• State-of-the-art planning tools that reflect a consolidated view
  of your retirement income and expenses to help you save and plan
  for retirement. In addition, you will be able to take advantage of social
  media tools online like Live Chat, YouTube and Facebook.
• Added flexibility to select non-periodic payments on a daily basis.

No change in investments or fees

• The investment choices available to you under KDC will be the same.
• The Plan Administrative Fee, Service Fees and Inactive Account Low Balance
  Fee will be the same.

KDC Plan Service Representatives

On January 10, 2011 Kentucky Deferred Comp transitioned to its new Record-Keeper, ING. In addition, ING also assumed the marketing duties. There were some participant service representative and territory changes. Please click here for the representatives and the revised territories. KDC looks forward to serving you in the new year.

A College Education Is within Your Reach

Although many Kentucky students and parents may think a college education is financially out of reach, that isn’t necessarily the case, according to the Kentucky Higher Education Assistance Authority (KHEAA).

Student financial aid programs are available to help pay for college. Financial aid comes in many forms — scholarships, grants, work-study and loans — and most students will qualify for more than one type.

By working with their school counselor and the financial aid offices at the colleges they are interested in attending, students may find that higher education is more affordable than they believed.

All students interested in college should file the Free Application for Federal Student Aid (FAFSA). The FAFSA will determine how much aid they may qualify for from federal and state programs.

They should then search for scholarships for which they might qualify. Not all scholarships are based on grades or athletic ability. Some are for students from particular areas, for students interested in certain fields or for students from specific backgrounds. A good place to start is Affording Higher Education, a KHEAA resource book available in counseling offices and public libraries. Then check out the Paying for College section on www.kheaa.com, which has a link to a free scholarship search engine.

With some research and by working with financial aid professionals, students and parents may find that a college education is well within their reach.

To learn how to plan and prepare for higher education, go to www.gotocollege.ky.gov.
For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602-0798; or call (800) 928-8926, ext. 6-7372.

‘College Circuit’ Helps Kentuckians Plan for Higher Education

Kentuckians planning for higher education will find The College Circuit, a booklet published by the Kentucky Higher Education Assistance Authority (KHEAA), to be a useful resource.

The 36-page booklet is suitable for students ranging in age from middle school to adults. Parents and counselors may also use it to help their students plan and pay for college. The College Circuit includes information about careers, college preparation, student financial aid programs and financial literacy.

Students and families will also find detailed information about the Kentucky Educational Excellence Scholarship (KEES) program. The booklet shows the steps involved in applying for federal student aid and provides guidance on borrowing student loans.

The College Circuit received the Award of Excellence in graphic design from the Kentucky Association of Government Communicators in recent competition.

Copies of The College Circuit are free. To request copies, please e-mail publications@kheaa.com or use the order form on www.kheaa.com.

To learn how to plan and prepare for higher education, go to www.gotocollege.ky.gov.

For more information about Kentucky scholarships and grants, visit www.kheaa.com; write KHEAA, P.O. Box 798, Frankfort, KY 40602-0798; or call (800) 928-8926, ext. 6-7372.