Later in the day another treat-  hearing my name called at the University of Pennsylvania Graduation.  It was a lot of years in the making- but I finished something that was near and dear to my heart. See the article below for details.

TV Money Expert Adds New Credentials to Her Financial Toolkit

PHILADELPHIA (May 13, 2012) – Television host Mary Caraccioli participated in graduation ceremonies at the University of Pennsylvania where she earned her Masters of Liberal Arts degree. Caraccioli’s concentration in the multi-disciplined program was money and leadership. Her thesis examined the interconnectedness of money and beauty as motivators and a source of stress in professional women’s lives.

Caraccioli said “Working toward this Master’s degree gave me the opportunity to step back from my day to day money reporting and really examine how money affects us emotionally. Through exhaustive research and one on one interviews I gained new insight into how money drives us and how it creates stress – no matter how big the paycheck.”

The Emmy® Award winning journalist is the host of the nationwide financial reality show “We Owe What?” produced by 6ABC WPVI-TV, airing on the Live Well Network and weekends on ABC owned stations in the nation’s top television markets. The show offers practical advice to families struggling with their financial lives. “We Owe What?” is in its first season.

Caraccioli also has earned an MBA degree from Drexel University and a Bachelor of Arts degree from the University of Pittsburgh. She is an EMMY® Award-winning financial journalist who has a track record for creating award-winning programs for broadcast, cable and digital mediums.

For more information, follow Mary on: Facebook (facebook.com/TheMoneyConfidante) and Twitter (@MoneyConfidante).

My interview with the first family of wrestling- the McMahons continues to get the hits on Youtube. I thought I would share one of the segments with you. This is my interview with the controversial patriarch- Vince McMahon.

If you have creditors calling you or sending letters, chances are you are feeling just a little bit of stress about it and that stress could be hurting your ability to actually have a productive conversation with your creditors.  Here is my plan for reducing stress and emotions in order for you to get results.

Pre-Call Tips

The first thing I recommend to anyone dealing with creditors is the first get a script together.   Know what you are going to say before you dial the phone our bang out an email. If you are nervous or put on the spot sticking to the script will help you keep your cool.  That means organizing your paper work and knowing everything from the account number to the amount due.

The second tip is to run through the script with someone who will be hard on you.  This is not when you need a cheerleader- tough love will help you get the points in your mind so that you function smoothly under pressure.

Third tip- If you can speak with a reputable creditor counselor before you make your call you may find even more empowerment. Here is a national website that will help you find a non-profit counselor near you. Remember they often do phone consultations. http://www.nfcc.org/FirstStep/firststep_01.cfm

Once you have done the prep work for the call you are ready to dial. I suggest you have a script in front of you with all the information easy for you to see.  Check out the sample script I provided to use as a guideline.

Sample Script:

Hello may I speak with a credit manager. (Feel free to give your name and account number but nothing else at this time- insist on talking to a manager)

Hello this is ______ May I please have your name and ID number. Once they give it to you ask, “May I have your direct number? (Don’t count on this- but it doesn’t hurt to ask).

I would like to discuss (my account, your offer for a settlement, my debt).

Once you get a positive response that they indeed want to work with you then you can begin to discuss specifics.

What Not to Say

Don’t give out any information about yourself other than your name, the account or reference number and your email address.  It will be important to have an email address for any documents or agreements, but you do not need to provide a phone number or address.  All you need to say is, “I prefer to call you directly, but feel free to email me if you need information.”

Don’t start the negotiations by throwing out a number- let them know of your hardship and ask if they will work with you and see what they offer. From there negotiate.

Don’t give your best and final offer first.  Start with a reasonable first amount of money that is below your best and final offer.  Don’t worry of you are far apart in the beginning- keep your cool and make a case for why your number is reasonable.  Do stay calm and stay positive.  If you don’t reach an agreement thank the person for their time and politely hang up.

If they do make you a settlement offer that you want to accept- do have them send it via email before you give them a mailing address. You want it in writing.

Follow Up

Expect the negotiations to require more than one phone call; so don’t be frustrated if the discussions go back and forth a few times.  If there is work you must do to follow up- then be sure to do it in a timely manner.

How to Avoid Burnout

Avoiding burnout isn’t about getting three square meals or eight hours of sleep. It’s not even necessarily about getting time at home. I have a theory that burnout is about resentment. And you beat it by knowing what it is you’re giving up that makes you resentful. I tell people: Find your rhythm. Your rhythm is what matters to you so much that when you miss it you’re resentful of your work.

I had a young guy, just out of college, and I saw some early burnout signs. I said, “Think about it and tell me what your rhythm is.” He came back and said, “Tuesday night dinners. My friends from college, we all get together every Tuesday night and do a potluck. If I miss it, the whole rest of the week I’m like, ‘I’m just not going to stay late tonight. I didn’t even get to do my Tuesday night dinner.’ ” So now we know that Nathan can never miss Tuesday night dinner again. It’s just that simple. You’re going to be so much more productive the rest of the week if you get that.
Katie is a soccer mom. She was running Google Finance and her team was in Bangalore, India, and she kept doing conference calls at one in the morning. I was really worried about her hours, and she said, “Don’t worry about the 1 a.m. calls to Bangalore. I love my team. It doesn’t bother me a bit. What bothers me is missing soccer games or having my child see me walk in late to the recital.” From then on we’d be in meetings and Katie would get up to leave, and people would say, “Oh, Katie, can’t you just stay five more minutes? We’re so close.” And I’d say, “No, Katie has got to go.”
So find your rhythm, understand what makes you resentful, and protect it.
You can’t have everything you want, but you can have the things that really matter to you. And thinking that way empowers you to work really hard for a really long period of time.

Watch Marissa Mayer explain how to avoid burnout at www.businessweek.com/howto/burnout

Bill Dunkelberg and his wife Sharon Javie are two remarkable individuals who work extremely well as a team. This Fall the Global Interdependence Center is honoring both of them with our prestigious Global Citizen Award.  Bill has chaired GIC for many years and Sharon has served as our interim Executive Director more than once. They both embrace our mission about convening and creating dialogue about economic and financial policy and making that dialogue open, transparent and on-going.

To kick off the event on October 19th we will also have a selection of private briefings on newsworthy topics.  I am very please to be co-chairing the event this year with my fellow board member Dom D’Ginto.

Save The Date! I hope to see you there.  BTW can you guess which country we will be featuring?

http://youtu.be/vHNWKZpXPCI

Marilyn, Lauren and Betty had fun with the idea of marrying into money with their 1953 movie “How to Marry a Millionaire.”  More than 50 years later you would be surprised how many people think their money problems will go away because they will marry rich- or simply get married. And its not just women looking for that “good provider.”  More and more guys are hoping their mate will come with financial benefits.

Think beyond the sugar momma or daddy. Sometimes it is not about marrying into a fortune- but marrying to dissolve yourself of any financial responsibility.  You are willing to bring home the bacon- but don’t want to think about if there is enough to cover the bills, add to investments or – god forbid- taxes.  Who do you know – who would rather leave the money stuff to someone else- because they have more interesting things to do with their time?  No matter what your gender or your income, life is (over the long haul) a lot easier if you invest in your own financial education.

If you are in a relationship and have let your partner take the lead with the finances— then think about getting more involved. The bottom-line,  a man is not a financial plan.  And guys– women aren’t one either. No matter how many breadwinners you have in your household–  you both need to be in the loop. I understand that there is usually someone in a relationship who likes the financial planning and the other partner might hate it. That is fine. But things happen and you need to know the basics to make sure you can make it on your own with- or without your mate.  The two D’s we hate to talk about -death and divorce- happen.  This applies to both men and women.. married or partners.

Start with the basics– get a notebook that has all of the important phone numbers account names and numbers and beneficiary info in one place. If you don’t have a will– get one and keep a copy in that notebook.  It is a simple way to get in the loop. Just remember to update it as things change.

I also suggest you have a money meeting at least once a year.  That is when you review all the retirement funds, investment funds, debt and any other big financial issues. This is a real meeting — with no kids, no interruptions allowed.  Go over the information and talk about the specifics of your family’s financial health and strategies for improving it in the coming year.

Good luck and look for more money tips on my show We Owe What?

Your local listings:  http://livewellnetwork.com/We-Owe-What/feature/We-Owe-What-Show-Times/8530785

On facebook you can find me at https://www.facebook.com/pages/Mary-Caraccioli/287501997607

or  Like my show We Owe What? at https://www.facebook.com/WeOweWhat

On Twitter I am at @MoneyConfidante

We have an all new episode of We Owe What? Coming up this Saturday April 14 at 5:30 PM on the LiveWell network
and Sunday, April 22, 1:00 PM on 6abc WPVI-TV in Philadelphia

Where to find LiveWell in your town: http://livewellnetwork.com/feature/8376859

This sunny morning my job was to explain money to Becca and Carrie’s kindergarten class.  At five and six years-old, they are ready to start grasping financial basics.  As they gathered in a circle around me, on a big blue rug, I saw just how hungry this age group is to learn about the topic mom and dad seem to know so much about – money.

Make it Visual

The first rule for teaching about money to five and six year-olds is to make it visual. I pulled out a debit card, a credit card, a check, and a few dollar bills. I asked the kids which of these objects were money.  The dollar bills were picked first, but others thought the cards and check were also money. They had seen their parents use them to buy things at the store.  That was my opportunity to have a teachable money moment.

The bills and coins are money. The other items are tools that help you pay for things but are not money. The debit cards and the check are convenient ways to access your money when you go shopping and you are not sure how much money you will need or don’t want to carry that money with you.  But, if you don’t have cash in the bank – those tools won’t work.  They got it.

Six year-old Olivia asked: “Does that mean the worker at the store has to run to the bank to get your money?” Great question! It was an opportunity to talk about how businesses work (a bonus money lesson). I told her that stores collect all the checks they receive during the business day and then make one trip to the bank. She was relieved to hear the workers didn’t have to run back-and-forth 100 times a day!

The last tool we discussed was the most abstract – credit cards. I asked what the kids knew about them. And they didn’t have too much to say. So I explained that a credit card is not money at all, but an easy way to borrow money to buy something. But I said if the borrowed money isn’t returned quickly, the thing you bought will get more expensive.  The lesson for using a money tool like a credit card, is to not use it unless you will have the money to pay it back soon.

When you talk to your kids about money tools like checks, debit or credit cards, explain the safety issues just as you would with other tools like a hammer or a saw. When money tools are used safely they can help to make big jobs a lot easier. But if they aren’t used safely they can end up causing problems – problems that could make paying for treats or special things more difficult.

Tricks for talking about money to other age groups

Preschoolers

I start my money lessons with preschoolers because I think the earlier you get in the habit of talking to kids about money, the smarter they will be. The visual rule works with this group too. I love to bring in banks and to have them draw pictures. Tell your kids to draw a picture of something they want. Then have them draw a picture of something they want to give. Using an image that matters to them, you can talk about how it takes money to buy certain thing – and that other things, like hugs and kisses are free. Encourage your preschooler to start saving their pennies and those cash gifts that come in birthday cards or their allowance.

7-12 year olds

I love playing the grocery store game with kids in this age group. It can be modified to fit their level of understanding. Here is how it works: Have them help you write a list for the grocery store shopping trip (great bonus lesson – because it will teach them not to go shopping without a list). Next, have a rough idea of what these groceries will cost (keep your previous receipt for some help here). Then, tell them if they can help you fulfill your list for less than the total you wrote down – they get to keep the savings. This game teaches them to really look at prices when you shop and to understand that choices have to be made to keep you within a budget. Allowing them to keep the difference is incentive to save.

Teenagers

I like to use the idea from the grocery game and apply it to clothes and technology – areas where most teens spend, spend, spend. Making a list before they go shopping and encouraging them to find cheaper alternatives to things on that list – then letting them pocket the difference – will help them prioritize their spending. Forcing teens to live within their allowance also shows them the basics of managing their own finances.  Remember, they are awesome negotiators, so once you’ve decided the wallet is closed for the week – stick to your guns. No matter how tough it is!

For all ages

Make sure you say no – regularly. It isn’t easy telling your baby they can’t have something. But the earlier you start saying no, the easier it will be as your child ages.  Even if buying that extra doll or pair of jeans isn’t going to break the bank, still find the strength to say no.  I often say things like, “I don’t think you need it” or “it is not something I think our family should spend on today.” It shows that it is not a matter of being able to afford something – but a bigger reason you aren’t buying it. It is not something that adds value to your family.  Eventually your kids will learn to think about how much value the things they buy bring to their life.  And that is a money lesson they can keep for life!

I have received a lot of requests from viewers who want to know how they can get on my TV show “We Owe What?” If you’ve got a money problem that you need help with- we want to hear from you. It is easy to get started. You go to the link below and fill out an application. Once that happens our team of producers will contact you and get the process rolling. We travel around the country finding families, singles and couples who are looking for help to get to a better place with their money. I can’t wait to hear from you!

http://livewellnetwork.com/We-Owe-What/feature/Apply-to-be-on-We-Owe-What/8505156

http://livewellnetwork.com/We-Owe-What/feature/We-Owe-What-Show-Times/8530785

The Answer:

A tax deduction is something that reduces how much taxable income you claim. A tax credit is something that directly reduces how much tax you owe.

A deduction shaves money off your taxable income, so the value depends on your tax bracket. If you’re in the 25% bracket, a $1,000 deduction lowers your tax bill by $250. But a $1,000 credit lowers the bill by the full $1,000, no matter in which bracket you are.

By Mary Caraccioli

Too many Americans know that awful feeling of becoming overwhelmed by their debts. It can feel like you are drowning. There is a way to stop that sinking feeling and get control over your financial future.  It is possible!  I have worked with many people who have changed their lives by adopting these five steps.

There is a catch – you’ve got to do all five steps and be committed. If you are wishing for a fairy godmother to come wave her magic wand and make your debt disappear – this plan is not for you.

1) Stop all unnecessary spending today: Get on a cash budget. Budget enough money for food, transportation and the other expenses you encounter each week. Once that cash is spent – that is it. No more spending. You may keep one credit card in your wallet for emergencies – but you should put it in an envelope that says “for emergencies.”  Chances are you won’t rip that envelope open for a latte.

2) Learn debt collectors’ language: Debt collectors often come across as heartless – they are trained that way. You won’t win them over with a sob story – even if it is true.  Talk to them with numbers. That is where you will get their attention. If they see you are serious about paying down your debt you will likely get them to work with you. Keep talking. Things gets worse when the dialogue ends.

3) Take responsibility: There are many reasons we end up over our heads in debt. Promises aren’t kept; emergencies happen…jobs are lost. Life changes happen. You get the idea it’s because of these reasons we are in the pickle, and usually others to blame. If you are serious about getting out of debt – own it. Then, and only then, you will have what it takes to fix it. By the way, this doesn’t mean others are off the hook. It just means you aren’t waiting for others to right YOUR ship!

4) Get a great partner: There are a lot of shady players promising to help consumers get out of debt. The best source for finding a reputable counselor is through this website: NFCC.org. Here is a link to finding a counselor near you: http://www.nfcc.org/firststep/firststep_01.cfm

I have worked with many non-profit counselors all over the country. They know how to talk with your creditors and can help you organize your finances to get out of debt.

5) Write out your plan: Whether you decide to pay off the card with the highest interest first or the one with the lowest balance – you’ve made the right choice. It’s all about developing the plan that is right for you and sticking with it. Pick a plan for paying down your debt including you weekly budget for necessities, payments to debtors, and ways to get added income (sell stuff or take on a part-time job). Writing the plan down is very powerful and will help you follow through.

By embracing all five steps today, you will immediately stop drowning in debt and begin a new phase of rebuilding your financial life. It is possible, but it takes commitment.