Money
Is Summer Vacation Worth It?

Q: My husband hates spending money on summer vacations. He promises we'll do "something fun," but we end up mowing the lawn or playing badminton. How can I avoid another disappointing summer?

A: I'll bet therapists are swamped with this question right now. Summer vacations cost so much, there are so many things that can go wrong and there's so much pressure to have fun and be a happy family. I suspect most people have trouble relaxing for the reasons you mention. They fret about the cost and they worry that they won't have enough fun to justify it.

Vacations are the only thing guaranteed to cause an argument between me and my husband. When the day arrives, I'm packed and ready at 7 a.m., but he starts some project he says he must finish before he leaves. Once he loaded his entire computer, printer, and fax machine into the trunk of the car. I envisioned my husband snuggled up to his computer while I had lots of quality time with the kids. I think you have to learn what motivates people to approach vacations the way they do.

Many people hate to be without structure, they hate to travel, and they hate to spend money on what they consider frivolity. Perhaps you can put your finger on what it is your husband objects to and work around it. If not, you and the kids might have to plan your own trip. Or you could make two trips, one short, inexpensive one that your husband (or wife) might enjoy and another longer one for the rest of you. You needn't miss your vacation because he doesn't enjoy it.

I think a successful vacation comes from doing less rather than more and making an effort to accommodate everyone. In our case, my daughter likes to sleep until noon, my son wants to fit in some serious sports like mountain biking, my husband hates to be rushed, and I need to have a couple of hours each day alone to walk and think. I plan all the vacations, and I always ask each person: What two or three things do you most want to do? What would you be most disappointed to miss? I also save money during the year so that the money is set aside when we're ready to leave.

A vacation can be a chore. But it can also be the highlight of the year for your family. Don't skip it.

Q: What do you think about 529 plans for college savings?

A: These state-sponsored plans, which are named for the section of the Internal Revenue Code that permits them, are great--so much so that I plan to switch from an UGMA, or Uniform Gift to Minor's Account, for my son to a 529 plan.

The good news is that beginning in 2002, withdrawals from the plans are free of federal tax. The bad news is that each state's plan is different and evaluating them takes some time.

You don't have to use the plan in your home state, but there might be a tax advantage to doing so. A great Web site to find out more information on 529 plans can be found at www.savingforcollege.com.

Q: Can I set up a separate pension system for my summer business?

A: Perhaps your best option is to create an IRA for this money. The limit for IRA contributions goes up this year from $2,000 in 2001 to $3,000 in 2002. That's a nice boost.

You can contribute up to $3,000 of self-employment income that might come from tutoring or any kind of summer business. Check with your financial advisor about your eligibility to make/deduct these contributions.

Q: Our son wants to take a year off after college to travel. Will employers think he's lazy or irresponsible?

A: I think it depends on how ambitious he intends to be after that year of traveling. If he's trying to put off working, perhaps indefinitely, that's no good. If he wants to gain a bit of life experience and then has solid career plans, that's a lot better.

There's a lot of pressure on kids to mature early. Many colleges are happy to accept students who decide to put a year between high school and college. I don't know why the same thing wouldn't be true about a year after college.

Mary Rowland is an author and contributor to several financial planning magazines. E-mail your personal finance questions to MoneyQuestions@neamb.com.

Thrifty Educator

This month's tips come from Vera Crisafulli, a kindergarten teacher at Jefferson School in Glendive, Montana, and from Gail Dacus, a sixth grade teacher at C.T. Walker Magnet School in Augusta, Georgia.

Crisafulli: It's easy to recycle paper egg cartons. In the spring, cut the egg container apart into separate cups and clip them all until they have four points. Have the children paint them, put a pipe cleaner through the bottom, attach a leaf, and it becomes a tulip for spring or Mother's Day.

Another fun use is to attach a pipe cleaner to the painted cups and make cute baskets to hang on an Easter or May Day tree. They're also handy to use for a place to lay paintbrushes while the children are painting.

Dacus: Shaving cream removes pencil and pen marks from desktops. I put shaving cream on each child's desk and then we do a learning activity with the cream.

For example, I ask students to draw a picture in the shaving cream that illustrates a certain fraction or geometric shape or they write their spelling words. The inexpensive kind of cream works just as well as the expensive kind.

Got an Idea?
If you have a suggestion for how your colleagues can save money at school, sent it along to neatoday@nea.org.

Heads Up from NEA Member Benefits

Summer is almost here, and NEA Member Benefits has some great programs to "make the livin' easy!"

Log vacation miles on someone else's vehicle by renting a car through the NEA Car Rental Program. Hertz and Alamo both offer NEA members year-round discounts and free, unlimited mileage on most car rentals.

If you're traveling with your spouse, you can save even more by having the additional driver fee waived. The Hertz #1 Club and Alamo Quicksilver Program also expedite the reservation process and offer express pickup and drop-off. To obtain your free Hertz and Alamo/NEA member discount cards and savings coupons, call the Member Service Center at 800/637-4636 or log on to www.neamb.com today!

Summer is also a key time to move to a new home. NEA Members can find great rates and service by obtaining a mortgage through the NEA Home Financing Program.

Are you a renter dreaming of buying your first home? First-time buyers can take advantage of special low- and no-money down loans that feature no maximum income restrictions. Plus, flexible credit guidelines can get you into a new home sooner than you might think.

For more information on the wide variety of home loans available through the NEA Home Financing Program, call 800/NEA-4-YOU (800/632-4968). When you close on your new mortgage or refinance, you'll also get a complimentary four-day "Driveaway Getaway" vacation package as a bonus. Find out about it in our display ad on page 53 of this issue of NEA Today.