5 Pitfalls to Avoid During Open Enrollment Season (Main Street).  Are your benefit selections on autopilot?  Take the time to make sure you’re choosing the right plan for your family.

How Do I Apply for a Government Job (US News).  If your resume has been falling into corporate sinkholes, why not send it Uncle Sam’s way?  After all…

Federal Hiring Proves to Be Recession-Proof (MSNBC).  This may change with the next election, but right now government hiring is far outpacing that of the private sector.

9 Free Courses You Can Take Online (Main Street).  From math classes for your kids to Yale lectures on classic literature, quality learning is available online – and the price is right.

Credit Union Business Grows as Consumers Sour on Banks (MSNBC).  Are you planning to take part in Bank Transfer Day?

And from the blogosphere…

10 Family Meal Planning Tips & Ideas on a Budget (Money Crashers).  Good thoughts on how a little planning can save a whole lot of dough.

5 Saving Money Tips for Car Owners (Consumerism Commentary).  Reminds me of the old commercial that made the point: “You can pay me now (a little bit) or you can pay me later (a lot).  Not budgeting for maintenance costs is one of the most common costly money management mistakes people make.

The Hidden Costs of Refinancing Your Mortgage (Not Made of Money).  With rates this low, you may be tempted to refinance.  Just be sure you know what it’ll cost you.  After all, getting the right mortgage is about more than just the rate.

Chase is About to Ignore Your Privacy Settings (Ask Liz Weston).  Just one more way banks are becoming their own worst enemies.  And one more reason to consider switching to a credit union like the one I recommend: Christian Community Credit Union.

How Important Is It to Start Early? (The Simple Dollar).  Having just returned from speaking on two college campuses, I can only say “amen” to the advice in this article.  I encouraged the college students I spoke with to save at least 40 percent of all the money they receive from part-time jobs or their parents.

Got some feedback on any of the above?  Be sure to leave a comment.

Who else would benefit from this article?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Myths, Misperceptions About Credit Scores Rampant (USA TODAY).  Does your income impact your credit score?  What about your age?  Read on to find out.

Six Networking Tips for Your Job Search (U.S. News).  You’ve heard it before – networking is a far more effective job search strategy than sending in lots of applications where you don’t have contacts.  Here’s how to network well.

Five Simple Ways to Get Your Resume Noticed (Main Street).  Good ideas for making your resume rise to the top of the stack.

The Kids May Be Alright, but Parents May Retire in Poverty (MassMutual News Release).  An easy but dangerous mistake to make – putting our kids’ college savings ahead of our own retirement savings.

How Your Income Stacks Up (Kiplinger’s).  Curious to know how your income compares with others across the country?  This simple calculator will help you put things in perspective.

And from the blogosphere…

The Emergency Fund From 1939 (Consumerism Commentary).  Don’t be deceived by the boring headline (sorry, Flexo!).  This article contains an instructive letter Warren Buffett’s grandfather sent to his uncle’s family.  Your reserve will probably never be as big as Warren Buffett’s, but look for the words “Forget it” and let the letter guide you in building an emergency fund.

Can You Cut Your Grocery Bill in Half By Shopping Only Once a Month? (My Dollar Plan).  Interesting food-buying strategy that might just be worth a try.

Nine Things You Can Do Today to Improve Your Life (The Simple Dollar).  Articles like this often come across as hokey or trite, but not when they come off the keyboard of Trent at the Simple Dollar.  There’s something about his wisdom that I trust and his tone that I like.

The 10 Best Interview Tips (From a Real Interviewer) (20 Something Finance).  You got your foot in the door at the place where you’d like to work.  Here’s to put your best foot forward.

Bank Transfer Day: November 5, 2011 (Consumerism Commentary).  Now this is a protest backed up by action.  If you’re thinking about switching to a credit union, do consider Christian Community Credit Union.  Yes, they’re a sponsor of my work, but I wouldn’t work with them if I didn’t fully believe in them.  Of course, my wife and I are also very satisfied members of CCCU.

Got some feedback on any of the above?  Be sure to leave a comment.

Who else would benefit from this article?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

Headhunters’ Job Search Tips and Interview Advice (Bloomberg Businessweek).  Words of wisdom from those who know how to get a job.

Report Shows Unbelievable Child ID Thefts (Main Street).  Good for you if you’re taking steps to protect your identity, but your child’s identity may be more at risk.

Stock Up On Peanut Butter Before Prices Soar (Main Street).  What used to be a low-cost lunch staple is about to become a pricey indulgence.

Materialistic People are Less Happy in Marriage (Time).  Interesting quote in this article: “It’s not the money itself, but the love of money that’s at the heart of the heartache” (Hmm, seems like I’ve heard that before somewhere).  Just one more reason why it’s so important to talk about money – a lot – before getting married.

20 Ways You’re Getting Ripped Off (Forbes).  Who knew that college seniors can get their graduation caps and gowns on their own and for a lot less than what their schools charge?

And from the blogosphere…

Boost Your Human Capital: Get More Experience (Consumerism Commentary).  Good thoughts on making yourself indispensable to your employer.

5 Things to Remember When Teaching Kids About $$$ (Gail Vaz-Oxlade).  Simple ways to teach kids about money through daily living.  It’s through our daily lives that we can call our kids into a better story as well.

How Our Addiction to Electronics Affects the Environment & Our Lives (Money Crashers).  In the midst of iPhone 4S mania, some challenging thoughts on the price we pay for always needing the next new thing.

85 Easy, Frugal Halloween Costume Ideas (Wise Bread).  Have you seen the prices of new costumes in the stores?  There is an alternative – at least 85 alternatives, in fact.

Four Reasons to Switch to a Credit Union (Frugal Dad).  Free From Broke also just wrote about Why Credit Unions Are Good For You.  If these articles pique your curiosity about credit unions, check out Christian Community Credit Union.  Yes, they’re a sponsor of my work, but we’re also members and CCCU has delivered nothing less than an exceptional experience.

Got some feedback on any of the above?  Be sure to leave a comment.

Who else would benefit from this article?  Why not forward a link to my site? And if you haven’t done so already, you can subscribe to this blog by clicking here.  Two or three times a week, you’ll receive ideas and encouragement for using money well.

In effect, such people have chosen the freedom to spend more than what’s in their checking account in exchange for a fee.

What Is Overdraft Protection?

Depending on your bank or credit union, overdraft protection usually kicks in when you try to buy something or pay a bill using your checking account and you don’t have enough money in the account to cover the cost.  It also may go into effect if you try to make an ATM withdrawal and you don’t have a sufficient balance.

If you have overdraft protection, your bank or credit union will approve the transaction and then charge you a fee as high as $34.  If you don’t have overdraft protection, your transaction will be denied and you will not incur a fee.

The Choice is Now Up to You

New regulations that went into effect earlier this year now require banks and credit unions to ask their customers whether they want to opt in for overdraft protection.  Previously, many financial institutions simply let people overspend their accounts and then charged them a fee.  It became a very lucrative source of revenue.

In 2009, overdraft protection fees totaled over $37 billion, according to the economic research firm Moebs Services.  Earlier this year, Moebs estimated that the new opt in requirement would drive such fee revenue down by about $2 billion.  However, now that the company has seen how many people have opted in for overdraft protection, it has changed its outlook, predicting that overdraft protection fee revenue will grow to $39 billion in 2011.

Do People Really Know What They’re Choosing?

According to the Wall Street Journal, most of those who have opted in for the service have done so “rather than face the embarrassment of being declined a purchase.”  But I wonder if that tells the full story.

I’m guessing that some people may have misunderstood the use of the word “protection” in the name of the service, believing they were signing up for something that would be to their financial advantage. To be fair, some probably may, in fact, want to “protect” against not having enough money in their account to cover an automated bill payment, such as a mortgage payment.  Missing that payment could make them liable for fees that are higher than what their bank or credit union charges.  Still, there are better options.

Just Say “No”

Of course, the best alternative to overdraft protection is knowledge: know how much money is in your account and don’t spend more than that.  If you insist on having overdraft protection, do you have a savings account at the same bank or credit union where you have your checking account?  If so, you may be able to link the two accounts, automatically drawing funds from your savings account to cover any overspending you may do with your checking account.  In some cases, there is no fee for such a service.  Or, if there is a fee, it will typically be less than the traditional overdraft protection fee.

Bottom line?  Your finances will be better protected if you keep close tabs on your checking account balance and opt out of overdraft protection.  By doing so, you will be opting in for overspending protection.

Did you choose overdraft protection for your checking account?  Why or why not?  Please leave a comment below.

If you are not a subscriber to this blog, please sign up.  You’ll receive ideas and encouragement for wise money management twice a week.

10. The New Frugality posted at Reasonably Rich: Lauren writes about why being frugal is not the same as being a Scrooge.

9. Five Steps Toward Automating Your Way to Wealth posted at Personal Finance By The Book: Joe explains how to put the power of automated savings to work.

8. 5 Reasons to Keep Emergency Funds in an Online Savings Account posted at Money Help For Christians: Craig offers solid reasons why to look online when deciding where to keep your rainy day fund.

7. Final Piece of Credit CARD Act of 2009 Starts and How it Affects You posted at Free From Broke: Craig provides a helpful summary of some of the new rules credit card issuers have to follow and what they mean for you and me.

6. How a Second Income Stream Can Give You Some Financial Security posted at The Digerati Life: Guest author Kevin of 20sMoney.com writes of the benefits of a second stream of income and offers up some good ideas for getting that second stream flowing.

5. Coupons for Lottery Tickets – Seriously? posted at Provident Planning: Paul uses the Pennsylvania Lottery’s whacky idea of providing “big savings” coupons for discounted purchases of lottery tickets as the basis for an informative post on the slim chances of winning the jackpot.

4. Martin Luther King, Jr Had a Dream – Do You? posted at Enemy of Debt: Brad uses the anniversary of King’s “I Have a Dream” speech to talk about the importance of having a financial dream and what it takes to make challenging, worthy dreams come true.

3. Big Difference Between Average and Median Net Worths posted at Free Money Finance: FMF looks at the true financial state of American households and comes to a frequently stated but important conclusion.

2. What Is #1 Problem Amongst Gen Y? posted at Gen Y Wealth: R.J. offers some great Labor Day advice for people who hate their job that is applicable to the unemployed as well.  There’s some especially good advice about the importance of using your personal network vs. responding to online job postings.

And here’s my pick for this week’s best post.

1. The Power of Progress posted at Canadian Finance Blog: Alan discusses the motivating power of tracking your progress toward the accomplishment of your financial goals.

Thanks to everyone who submitted posts for the Best of Money Carnival. If you’d like to be considered for next week’s carnival at Free Money Finance, simply submit your post to through blog carnival.

“If” savings is your emergency fund.  It’s for all of life’s if’s—if you incur significant medical or house repair expenses that are not covered by insurance, and mostly if you lose your job.  I used to believe that having three to six months’ worth of essential living expenses in such an account was the right target.  I now believe we should all have six months’ worth.  The recession has shown me just had bad things can get, with the average unemployed person remaining out of work for about six months.

The other type of savings account, near-term “When” savings, is for items you spend money on every year but not necessarily every month—when the semi-annual property tax bill comes due, when your annual life insurance bill arrives, when you take a vacation, etc.  Take the annual total of all such items, divide by 12, and automatically transfer that amount from your checking account to a separate savings account each month.  When the bill comes due, just transfer the amount back into your checking account and make the payment from there.

Some people go even further, with separate savings accounts for each item—one account for vacations, another for property taxes. However, my wife and I find that maintaining one savings account for our emergency fund and one account for all periodic expenses works well.

There isn’t a one-size-fits all approach to deciding what to save for in your near-term “When” savings account.  We don’t use our account to save for gifts, home maintenance, or vehicle maintenance, for example.  We just let our monthly budgeted amounts for such items build up in our checking account.  But we do use our separate near-term “When” savings account to save for our property taxes, life, home, and vehicle insurance premiums, and vacations.

If you don’t have a separate savings account for periodic expenses and bills, I recommend that you open one as soon as possible.  It’s a relatively simple step toward building a well-oiled financial machine in 2010.

One industry insider told me that all credit cards will soon charge an annual fee.  On the one hand, that prediction sounds credible given the new legislation’s restrictions on other fees.  However, I have to believe there will be exceptions.  After all, when most airlines began charging baggage fees, Southwest kept allowing two bags to be checked for free, and breaking from the pack has proven to be good for their business.  I checked with my sponsor, Christian Community Credit Union, and was told they have no plans to add an annual fee to their credit cards.

Have your savings habits changed over the past year?  If so, what has been your primary motivator?

The returns offered by most money market funds are currently so low that this news is a bit of a moot point. There are numerous places to get better rates along with insurance, such as credit union money market accounts (which differ from money market funds) and certificates of deposit (including those offered by Christian Community Credit Union, a long-time sponsor of this eNewsletter) and online bank savings accounts. Check to make sure the credit union you’re considering is insured by either the National Credit Union Share Insurance Fund or American Share Insurance and the online bank you’re considering is insured by the Federal Deposit Insurance Corporation.

Online banking has made it easy to keep tabs on account balances, so if there’s any doubt as to whether you have enough money in your account, check your balance before using a debit card. Also, if you have a savings account at the same bank or credit union where you have a checking account, consider setting it up to be tapped in case of a checking account overdraft. You may be charged a fee if and when it’s used to cover a shortfall in your checking account, but it’ll probably be less than a traditional overdraft fee.

For other money-saving ideas, check out my list of recommended links.