goodneighbor
®
The magazine for State Farm® custom-
SUMMER 2013
TRADING SPACES FAMILIES FIND BENEFITS IN SWAPPING HOMES
In this issue of goodneighbor you’ll meet three families who know that home exchanges are a great way to save hundreds, even thousands of dollars on a vacation. Is it for you? We’ll tell you what you need to know about trading spaces safely while protecting your home from liability.
Agent name (XXX)-XXX-XXXX
CASH-ONLY CHALLENGE BUILD NEW MONEY-SAVVY HABITS IN JUST ONE WEEK
SUMMER CAMPING STAY SAFE ON YOUR NEXT OUTDOOR ADVENTURE
WELCOME! Quick: Name all the items in one closet in your home. How about a whole room? Your entire house? If you lost your home because of a disaster, would you be able to re-create a list of your possessions in order to replace them? That’s the heartbreaking reality that thousands of people face every year after floods, fires or other disasters destroy their homes. This is why a home inventory is essential, but very few people have one. In the article on page 17 we offer expert insight and walk you through the process. Once you are done, you and your family will be able to rest easier. You already have multiple policies with State Farm®, so you’re aware of the importance of covering your family and the things you love. But what about the things you haven’t planned for—or goals you might have? A yearly State Farm Insurance and Financial Review® is a good step. It allows you to evaluate your current insurance coverage and financial situation and create concrete plans for the future. Contact me today to set up an appointment for this free review.
05 17
13
CONTENTS SUMMER 2013
DEPARTMENTS 1 Fast Tracks 24 Back Story 25 Policy Points
9 Camping Survival Guide
FEATURES 5 All-Cash Diet
13 Home Swapped Home
Can one week using old-fashioned coins and bills change your spending habits? One writer ditched her credit cards to find out.
Ready to embark on an outdoor adventure? We’ve got tips to keep you and your family safe in the wild.
House swapping is here to stay, but there are steps your family should take to protect your things—and your vacation. We review it all: the good, the bad, the couldn’t-be-better.
The information in these articles was obtained from various sources. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. These suggestions are not a complete list of every loss control measure. The information is not intended to replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. Nor is it intended to effect coverage under any policy. State Farm makes no guarantees of results from use of this information. We assume no liability in connection with the information or the suggestions made.
When a theft or disaster strikes at home, an inventory can be key to getting your life—and stuff—back quickly. An expert walks one couple through the steps.
21 Leaving the Nest
The tuition may be paid and the dorm room assigned, but are your kids really ready to start their post–high school adventure? Prep them for sound money skills with these tips.
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17 For the Record
Go online: At statefarm.com® you’ll find helpful tools and resources.
Give us a call: We’re ready to serve you 24 hours a day, 7 days a week.
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Sign up today to take advantage of services available to registered customers: Manage accounts and policies online, pay insurance bills online, receive special offers and ask questions regarding your policies.
goodneighbor® The magazine for State Farm® customers EDITOR Tanya West DESIGN DIRECTOR Melissa Bergwall GROUP DIRECTOR Doug Stark ACCOUNT DIRECTOR Pam Kenyon goodneighbor magazine for State Farm customers is published by Meredith Corporation exclusively for the agents of State Farm. © Copyright 2013 State Farm Mutual Automobile Insurance Company. All rights reserved. Printed in the USA. State Farm® and statefarm.com® are registered trademarks of State Farm Insurance Companies, One State Farm Plaza, Bloomington, IL, USA 61710. State Farm Mutual Automobile Insurance Company, Bloomington, IL
State Farm Mutual Automobile Insurance Company – Auto, Health; State Farm Fire and Casualty Company – Home, Condo, Renters, Business, Boat, PLUP; State Farm General Insurance Company – California – Home, Condo, Renters, Business, Boat, PLUP; State Farm Lloyds – Texas – Home, Condo, Renters, Business; State Farm County Mutual Insurance Company of Texas – Personal Articles Policy; State Farm Life Insurance Company – not licensed in MA, NY, or WI – Issues Life policies in Texas and other states; State Farm Life and Accident Assurance Company – Licensed in NY and WI.
FAST
TRACKS
AUTO
QUICK TIPS AND SMART ADVICE TO HELP YOU HANDLE MODERN LIFE
LOOK Before You LOCK On an 85-degree day, the temperature inside a car can reach 102 in 10 minutes—even with the windows cracked. It’s a situation that can, and often does, prove deadly: On average every nine days a child dies from heatstroke inside a vehicle, according to kidsandcars.org. Typically it’s the result of parents inadvertently forgetting— a change in routine, for example—or because a child gets into a vehicle on his or her own. “In the majority of cases they happen to the most careful, attentive and protective parents,� says kidsandcars.org founder Janette Fennell. First rule: Never leave a child—or a pet—alone in a car. If you’re in the market for a new car, consider one with advanced sensor alarms that detect a child’s weight in the backseat and alert you if you leave the car without him. This technology is very new, and no technology is foolproof, so follow these tips:
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Behind the wheel and using your phone? You’re not alone. In July 2012 State Farm conducted an online survey to see what percentage of drivers use their phones while driving. The results show an increase in distracting behaviors in drivers of all ages— talking, texting, navigation, music, surfing the web. In addition a recent State Farm survey by Harris Interactive shows that 57 percent of teens admit to texting while driving. It’s scary: Drivers who use cell phones are four times more likely to crash seriously enough to injure themselves. Your best bet? Turn your phone off while you’re driving. Pull over at a rest stop or gas station if you need to use the phone. And always keep your eyes on the road. Visit distraction.gov for more facts.
NAVIGATION 56% TALKING 52% TEXTING 34% IPOD OR MP3 33% INTERNET 21% SOCIAL MEDIA 15%
What’s NEW in Car Colors
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Though silver has been the most popular color of the past decade, white was “it� this year and last, says LeeAnn Shattuck, owner of Women’s Automotive Solutions car-buying service. “Twenty-two percent of cars and trucks built in 2012 had white paint,� she says. Silver is close behind with 20 percent, black at 19 percent.
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Vehicles are also trending toward earthy browns and oranges, and that’s a good thing. “White, silver and gray cars are the most difficult colors to see in bad weather and at dusk,� Shattuck says.
NEED A TOW? How about a battery charge? The new 4UBUF 'BSN &NFSHFODZ 3PBE 4FSWJDF BOE 5PX 1SPHSBN is there for your roadside assistance needs. Call the toll-free number, 877-627-5757, any day, 24/7, 365 days a year. You’ll be billed directly through State Farm for services you need.
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FINANCE
5 Life Insurance MISTAKES
What are the most common errors people make about life insurance? Here’s what the Life Insurance Marketing Research Association (LIMRA) discovered.
Mistake #1: Buying term and investing the difference. Term life insurance costs more as people age. “Buying a permanent policy when you’re young locks in good rates,� says Bob Kerzner, LIMRA CEO. Mistake #2: Waiting until you retire to purchase life insurance. Many people live into their 80s, Kerzner says. “It may provide a much-needed infusion of money for a surviving spouse.� .JTUBLF 4LJQQJOH JU CFDBVTF ZPV CFMJFWF JU T FYQFOTJWF LIMRA research indicates people vastly overestimate the premium costs. Mistake #4: Relying on policies through work. Group benefits may not be portable. Personal plans ensure uninterrupted coverage. Mistake #5: Waiting until you have kids. Life insurance protects those financially hurt by your death, such as a partner or parents. “Having enough life insurance is probably the most selfless act of love,� Kerzner says. Do you really know how much life insurance you need? Use the interactive calculator at st8.fm/ LifeCalc to find out what coverage is right for you.
HOME What’s New In BANKING Financial insider Christine Romans, CNN anchor and coauthor of How to Speak Money, describes the latest trends. MOBILE PAYMENTS
It’s already starting, but your phone or tablet will be your wallet. Imagine using these gadgets to pay for a cup of coffee, or using a bank app to send money to your child at college.
MOBILE REMOTE DEPOSIT
Small businesses are gobbling this up. It’s a fancy way of saying: Take a picture of a check and it’s instantly deposited.
ACCOUNT SECURITY
Your bank will text you if your buying history looks odd. Or you can text your bank using a text short code and your balance is texted right back, so you can keep track for yourself.
PROTECT YOUR PROPERTY VALUE Your neighbors may do a less-than-stellar job of mowing the lawn and tidying up the landscape, but does it really impact you? Unfortunately yes. According to the Appraisal Institute, an unkempt yard can reduce the value of neighboring homes by some 10 percent. Try these suggestions to help keep your block beautiful. t %PFT ZPVS OFJHICPS SFBMJ[F UIFSF JT B QSPCMFN A friendly chat may help you figure out what he or she thinks. “Nobody wants to hear his house is a pariah,� says John Braun, real estate attorney with the Thomas Law Group in Minneapolis.
Few luxuries stoke the American dream as much as adding a swimming pool or hot tub to your home. If you’re in the market, be honest about the time and commitment you can devote to maintaining the pool. (Some sellers offer full maintenance plans.) Also, ask your State FarmŽ agent about insurance policies or additions that may be required.
A YARD BARGAIN
&%6$"5*0/ Become a prevention expert. Post clear rules. 461&37*4*0/ “Lack of adult supervision can be a matter of life or death, and no alarm or fence can replace that,� Onthank says. #"33*&34 Doors from the house to the pool should lock; the pool should be fenced and covered during the off-season. POOL ENTRY ALARM. Install one. 4,*--4 Teach the whole household to swim. EMERGENCY RESPONSE. Have a plan in place and practice. If your child is missing, check the pool first. Keep a phone poolside. Take a CPR course. For more about pool safety, visit st8.fm/swim.
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Beat the BEDBUGS
Yard sales clear clutter and earn a buck to boot. If you are looking to host a yard sale, try these steps for success from Tracy Metro (above), HGTV host, domesticcircus. com blogger and sale aficionado: 1. "WPJE TDIFEVMJOH DPOnJDUT XJUI QPQVMBS MPDBM FWFOUT 4BUVSEBZT BSF CFTU 2. 1PTU UIF TBMF EBUF BOE UJNF PO ZPVS MPDBM craigslist.com PS tagsellit .com TJUFT XJUI QIPUPT 3. 1PTU MBSHF TJHOT mWF TUSFFUT BXBZ JO FWFSZ EJSFDUJPO JODMVEF FBTZ EJSFDUJPOT UP ZPVS BEESFTT BT XFMM BT EBUF BOE UJNF 4. #F SFBEZ UP HP CFGPSF TUBSU UJNF
t *T ZPVS OFJHICPS VOBCMF‰CFDBVTF PG IFBMUI PS mOBODFT‰UP NBJOUBJO UIF property? Some services can help; ask your municipality about eldercare resources. Or DIFDL XJUI )BCJUBU GPS )VNBOJUZ JUT " #SVTI XJUI ,JOEOFTT QSPHSBN offers painting, landscaping and minor repair services for homeowners in need.
These troublesome little critters live anywhere people sleep—from five-star resorts to humble hostels.
“I’ve had two run-ins. We threw out half our apartment,� says Jeffrey James Keyes, travel writer for The Huffington Post. “It’s more common than you think.�
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Preventive measures when you’re on your summer travels can help. Make sure to:
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Contact your city zoning office for more information. Have you ever had a “junkyard� EJTQVUF XJUI B OFJHICPS Like us and share your story at GBDFCPPL DPN 4UBUF'BSN
2 goodneighborÂŽ
Pool Safe
But most important: Study safety requirements. A child can drown even in a kiddie pool—in less than 2 inches of water. “Water safety is only as good as the supervision provided,� says Tara Onthank, vice president at Raleigh’s Rising Sun Pools & Spas. She recommends this approach:
PIN PORTABILITY
Some banks are experimenting with ATM machines—now you can walk up and text the machine with a PIN and money comes out.
Stay
t Use laundry bags or large plastic bags for clothes and soft goods, and trash bags to cover luggage. t Lift hotel sheets and check mattresses (look for red dots, exoskeletons). t Keep suitcases on a luggage rack or in a closet—never on beds. t Wash clothes in hot water and dry on hot upon return. t Store suitcases in the garage or basement for a few days after you get back. There are products that promise bedbug help. Or visit DED HPW QBSBTJUFT CFECVHT for more tips.
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SAFETY 8*/%08 PRECAUTIONS Nothing beats a summer breeze flowing through open windows, but remember safety first. A leading cause of unintentional injury for children 14 and under is falls, so consider these tips from safekids.org: t Install window guards—don’t rely on screens. Use a guard with an emergency release device in case of fire.
DIY Emergency Kit There’s only one thing we can truly predict about bad weather: It will happen. Your best protection is preparedness. Sign up for National Weather Service Wireless Emergency Alerts (WEA) on your smartphone. Check if yours is compatible at ctia.org; then click on Consumer *OGP 8JSFMFTT 4BGFUZ.
t Move furniture away from the windows so kids and pets can’t climb to the ledge. t *OTUBMM TUPQT so windows open no more than 4 inches.
t If you have doublehung windows, open the top pane instead. t ,FFQ XJOEPXT locked and closed when not in use.
Who’s in the Driver’s Seat?
The Red Cross suggests always having an emergency kit on hand. Buy one at redcrossstore.org or make your own that includes: 8BUFS 'PPE OPOQFSJTIBCMF PS ESJFE
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4 goodneighbor®
We’ve all been there: Someone asks to drive your boat, ATV or RV at a summer gathering. We asked State Farm® Claim Consultant Don Lusk how to help minimize your risk. 2 *' 40.&0/& &-4& %3*7&4 :063 7&)*$-& "3& 5)&: $07&3&% #: :063 */463"/$& *' 5)&3& 4 "/ "$$*%&/5 A: If another person is using an insured vehicle with permission, coverage from that vehicle will apply. Without permission there is a risk for personal liability to the driver. However, there may be some jurisdictions where the insurance would follow the driver rather than the owner. In such cases the driver’s own personal insurance policy is primary. 2 8)"5 4 5)& 4"'&45 8": 50 -&5 40.&0/& &-4& %3*7& A: Be specific and limited about how the vehicle may be used. 2 "/: 05)&3 $0/4*%&3"5*0/4 A: Know the person and his or her capabilities and skills. Also don’t make it a habit or you’re putting yourself at increased risk.
By Lambeth Hochwald statefarm.comÂŽ 5
I
NEVER CARRY CASH. My son and husband have known me to walk around for a week with literally one dollar bill and change. This propensity has caused many problems. For example there was the time I offered to treat a friend to a coffee only to find out the café didn’t take debit cards. Or the day my son asked for an after-school snack but it seemed silly to pay for a granola bar with a debit card. It’s always awkward to dip into a wallet only to find that it’s empty.
—GALIA GICHON
6 goodneighbor®
Why am I so cash-averse? Ever since I got my debit card—from a bank that requires me to do several withdrawals to avoid service fees—I’ve forgotten what it feels like to carry a billfold full of green bills. Maybe it’s time go green again. “Having WRITER LAMBETH to use cash to count HOCHWALD out how much we’re spending makes us painfully aware of the amount of money we have remaining,” says James Roberts, professor of marketing at Baylor University in Waco, Texas, and author of Shiny Objects: Why We Spend Money We Don’t Have in Search of Happiness We Can’t Buy. “Spending cash is a painful experience but ultimately leads to lower levels of spending.”
Thus, despite my slight trepidation I liked the idea of this experiment: going a week paying only with cash. According to the National Foundation for Credit Counseling, people who pay for things in cash spend 20 percent less than those who pay for things with credit cards—without feeling deprived. Why shouldn’t I get on board? The first step was to figure out how much I’d need for seven days of “walking-around money,” as my mom calls it, including cash for things such as gas, trips to Target®, dry cleaning, food and, maybe, a movie. I reviewed my expenses for the previous month and thought $300 would be a reasonable amount to withdraw from my checking account and see how far it would stretch over seven days. I deliberately picked a conservative number because I’d also read that people emotionally spend (a behavior similar to emotionally eating) and I wanted to push myself to see how low I could go for a week. “When I put people on all-cash diets, I find that they’re either so scared they spend nothing, or they spend a lot and end the week feeling they’ve OD’d on spending,” says Galia Gichon, a personal finance expert in New York City and founder of Down-to-Earth Finance. To that end Gichon urges all-cash dieters to see this as an opportunity to take the worry out of spending. “Use cash and you’ll be free to purchase what you want to buy as long as you have enough to last you the week,” she says. “It’s a chance to stop seeing purchases through the lens of fear or guilt.” No fear or guilt? Let the cash diet begin.
Blowing through nearly a third of my budget Deciding to start this project on a weekend was a bit nerve-racking: Those days tend to be the times most of us splurge. Knowing that, my husband, son and I ate breakfast at home and lunched at a reasonably priced café. Did I turn pale when my husband placed a protein drink ($3.99) on the counter? Sure. But that was part of the experiment and, even though I shared a sandwich with my son ($8.99) and paid for my husband’s (also $8.99), we still managed to get out of there spending just shy of $24. From there I spent $11 at a hardware store in my neighborhood ($8 for a specialty lightbulb and $3 for a toy) and then $3 to wash the car. (We did an express wash to save money.) We capped off the day with a trip to Starbucks (luckily we had a $5 gift card FOR THE DAY: but we still spent $2 for a slice of banana bread), the grocery store (2 pints of ice cream to go with the brownies I’d baked for the night’s school potluck) and a babysitter ($50).
T O TA L $95
Watching pennies— and wondering about groceries After my costly start I made a decision to simply spend less on Day Two. I headed off to the farmer’s market with my son, spending $4 for a loaf of whole-wheat bread (a bit pricier than the grocery store but no preservatives—a plus) and $5 for a tiny clay vase. (I bought it because I liked it but also because I felt guilty that my FOR THE DAY: son had spent 20 minutes sketching at a table the artist had set up for kids.) From there I headed to Trader Joe’s to do a small shop for the week ($40). How does
T O TA L $49
sliced turkey, cereal, salad and OJ add up to so much? I remain worried that I’ll overspend since I’ve got five more days to go and just half of my cash left. Realizing a dinner “special” isn’t so cheap To make sure I have enough to last the remaining days, I decided to be sensible. I have been eating in, including lunch, but when my husband has to work late, I take my son out to dinner. Luckily I had seen a billboard for a local Italian restaurant advertising $5.99 spaghetti and meatball Mondays. This FOR THE DAY: sounded pretty ontarget given my “diet.” The only problem: The $5.99 plate was so small that my son asked for more, so we ended up getting a third plate of pasta. And I also caved in and bought my son dessert to celebrate a great day at school. Total walkout, including tax and tip: $25.
T O TA L $25
Giving in to a coffee craving Despite my vow to drink only coffee I brewed myself, Starbucks beckoned. Four dollars later I was happily sipping an iced cappuccino. And then there was an afterFOR THE DAY: school ice cream request that included me treating two other kids too ($9).
T O TA L $13
Exercising restraint at the grocery store I needed to find something delicious to make for dinner. I circled the prepared foods aisle twice (the rotisserie chicken smelled so good) before I did the math and decided to save by buying chicken breasts from the butcher ($6). I’m $2 up! Then I turned around and splurged on what turned out
If you want to save, cash is king. “I’ve spent the last 15 years studying the impact of credit cards, and it’s not pretty,” marketing professor James Roberts says. “When we use credit cards, the pain of paying is low, so we’re more likely to buy and more willing to spend more for our purchases.” In addition when we use credit cards there’s a delayed impact. “We don’t have to pay for 30 days but, as humans, we tend to discount future events. The event—paying our credit card bill—is in the future so we don’t worry so much about it,” Roberts says. With cash and checks we either count out the cash or write down the amount we’re spending. “The lack of rehearsal with credit cards makes it less likely that we will keep track of how much we’ve spent,” Roberts explains. This leads us to overestimate the amount of money available and then spend more.
How did pay-byplastic evolve? While the idea of merchants in this country extending “credit” for goods and services has been traced to the 1800s, the practice of using a credit card is relatively new (in the last 50 years). Once upon a time you were in a jam if you didn’t get to the bank to withdraw cash before the bank closed for the weekend. All that changed in the 1980s with more widespread use of debit cards and the ATM or “cash machine” that made cash available 24/7. By 2003 debit cards and credit cards were used more than cash and checks as the most popular ways to pay for things, according to the American Bankers Association. statefarm.com® 7
to be a dozen tasteless mini-muffins ($4). Rounding out the list, a selection of veggies FOR THE DAY: on sale ($4) plus a much-need Swiffer ($11 became $9 after a $2-off coupon) and that quick stop at the grocery store cost $23 (though dinner was quite tasty).
T O TA L $23
Skipping the cocktails and getting my own check Since I couldn’t keep avoiding a lunch invitation from two new moms I know, I told one about my all-cash diet and asked if she could pick out a reasonably priced lunch place. When she told me about a restaurant she loves, FOR THE DAY: I gave in and met her there. I decided to ask for my own check since I was down to just $95 in my wallet and had many more expenses to pay for before the week was up. Requesting my own check ended up being the best idea I’ve had in a long time. (Who knew moms ordered midday cocktails at $12 each?) My check came to $18 for a lunch omelet and a resolve to use the diet excuse for all future lunches with big-spender friends.
T O TA L $18
!Gas, Target
®
and an In which I discover how unrewarding spending really is
almost-empty wallet I counted the money remaining in my wallet. I had $77 left and a small list of essentials to pick up at Target—from contact lens solution to toilet paper, and school FOR THE DAY: supplies my son needs. I started shopping and got distracted by a $25 top that was calling my name. I threw it in my basket and moved on. My total: a surprisingly small $40 bill. (I usually spend twice as much.) With my fuel gauge at empty, I hit the pump and filled the car halfway ($20) because basically I was out of cash. (A couple days later I ended up returning the $25 top. Suddenly, I felt a whole lot better.)
T O TA L $60
8 goodneighbor®
—GALIA GICHON
One month later I’m trying to hold on to all the lessons I learned during my cash-only week. I’ve continued to think twice during splurge-worthy moments (e.g., coffee runs, after-school snacks). “If you end up making changes in your spending after a week spending all cash, you’ve gotten a lot out of the experience,” Gichon says. Meals out remain a challenge, so I’ve used the all-cash diet as an excuse for separate checks. It may come across as thrifty, but it’s a great way to avoid having to pay more than your fair share. And FYI, more than one pal has looked at me in admiration when I shelled out way less for a fun lunch than she did.
TIME TO REVIEW? One way to get a handle on your home’s financial situation? A State Farm Insurance and Financial Review® (IFR). An IFR is a chance for you to evaluate your insurance coverage, financial goals and retirement planning. At the end of your IFR you’ll come away with solid steps you can take to move yourself into a more secure position—for tomorrow and into the future. An IFR is a must after big, life-changing events—marriage, kids—but it’s also a good yearly check-in to make sure you’re staying on track. And the best thing: It’s free. Contact me today to set up your appointment for an IFR.
N B Y NA O M I S H U L M A
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Safety? Check. Fun? Check! Summer 1982: Yosemite National Park Ten-year-old Nathan Rein and his parents were sitting around the fire, trading stories and watching the embers burn down when Nathan heard something rustling behind him. He turned to see a bear rooting around for food in his family’s van. “I saw it first and yelled. But then we just kind of sat and ... watched. I mean, the bears there have a reputation,” Nathan, now a dad of two in Phoenixville, Pennsylvania, says with a chuckle. “They act like they own the place.” Did the experience turn him off to the great outdoors? Hardly. Nathan now camps with his own family. “But I haven’t seen any more bears,” he says.
Every year some 40 million Americans, like Nathan, willingly leave their climate-controlled homes and comfy beds to sleep under the stars. And while most of them are happy campers, sometimes things go awry—a rogue tick, an errant campfire or a nosy bear. Even though we get to visit the wild, the wildlife does own the place. But you can share their space safely. RULE ONE: Don’t leave the back of your van open with food in it. RULE TWO: Review the helpful advice here. RULE THREE: Enjoy your trip!
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Bedding, sleeping bags and extra blankets
Tent and plastic ground cloth Insect repellent Sunscreen
Human beings have been making fires for thousands of years. But that doesn’t mean building a safe fire comes instinctively. You may remember this from your scouting days, but we asked Helene Cleveland, fire prevention program manager for the U.S. Forest Service, to run through the basics. With care and forethought your fire will be cozy and contained.
2. If your campsite has an existing fire pit, use it. Otherwise pick an area with at least a 10-foot diameter area with no vegetation and no limbs overhead; clear out any debris—twigs, leaves, branches, and so on—until you’re left with nothing but dirt. Dig a pit in the dirt, about a foot deep. Placing rocks in a ring formation in the center helps define the area as well as prevent the fire from getting too big.
Safety Checklist Lightweight, light-color clothing, including long sleeves and pants
Get Fired Up 1. Check in with the park service or rangers to ensure conditions are safe for open fires. If it’s too dry it may be hazardous to build a fire. “Fire danger ratings range from low to severe,” Cleveland says. “If the rating is low, there’s a very small possibility of a wildfire, but as it rises, conditions get more dangerous.”
Getting away from it all means you’re away from it all—including groceries, entertainment, hardware stores and hospitals. Prepping now saves you headaches later. Here are two checklists to keep you covered— one for safety basics, the other for necessities of another kind.
Wide-brim hat and sunglasses Healthy, on-the-go snacks
4. Light the tinder. If you’re using a match, dispose of it in the fire; don’t just toss it on the ground. Blow gently on the flame, adding tinder and then firewood as the fire stabilizes and grows, but keep it small and controllable. “You just need it for warmth or cooking,” Cleveland points out. “You don’t want a huge bonfire.” The larger the fire, the farther embers can be blown away by a gust of wind.
Bubbles. Got toddlers in your party? Remember the bubbles. “Many temper tantrums can be halted at the sight of bubbles,” says Tiffany Akin, mom and author of the blog alittlecampy.com. “It works at home and at the campsite.” Headlamps and small flashlights. Headlamps come in handy when catching small frogs—and during a nighttime shadow show. “When you go into the tent at bedtime, your family can have a friendly competition to see who makes the best shadows,” Akin suggests.
Hand sanitizer Life jacket, helmet and other protective gear
Glow-stick necklaces. At night give each child a different color glow-stick necklace. Kids love them, and they help you distinguish your children in the dark.
First-aid kit
Portable play yard. Camping with a baby? A play yard serves as a crib at night and a contained area during the day when you are trying to prepare meals or pitch the tent. “Believe me, you do not want to leave home without it,” Akin says. “That was a lesson learned the hard way.”
Insulated cooler
Compass or GPS Map Flashlights Extra batteries Sturdy shoes 5. Putting the fire out is the most important step of all. “Drown, stir, drown” is Cleveland’s mantra. “Drown the fire with plenty of water or dirt, stir it with a shovel till it looks like a mud pie, then add even more water.” Hover your hand over of the ashes to test the temperature; if it’s warm, keep dousing until it's completely cold. Cleveland sums up: “If it’s too hot to touch, it’s too hot to leave.”
Bug houses and habitats. Kids love catching lightning bugs and small frogs and keeping them in the bug houses until the end of the night, when they return the critters to their families.
Cards and board games. When camping it’s nice to unplug—this helps your kids understand that you don’t need electronics for entertainment and allows them to use their imaginations. But it can't hurt to pack some cards, a board game or checkers—great in case it rains.
Water
3. Gather your fuel or firewood. You want three types: tinder (small twigs or needles), kindling (sticks smaller than 1 inch in diameter) and fuel (larger pieces of wood). Pile a little tinder loosely in the pit, then cover with kindling. (There are different methods to stacking kindling, depending on what you’re using the fire for; research them at smokeybear.com.)
Kid-Sanity Checklist
Extra clothes Paperwork: medical records, including vaccinations; list of allergies and conditions; medicines with written dosing schedules and storage instructions; emergency contacts. Source: Centers for Disease Control, cdc.gov
Caution: Carbon Monoxide While some like to really rough it, what many of us call “camping” is actually car camping—we bring some of the comforts of home along with us, like heaters, lanterns and cookstoves. But used improperly, some conveniences can be dangerous. Just as at home, carbon monoxide is odorless, colorless and poisonous—in fact it’s even more deadly at high altitudes, where many families like to camp out. According to the U.S. Consumer Product Safety Commission (CPSC), carbon monoxide poisoning while camping leads to roughly 450 injuries and 30 fatalities every year. Jeffrey Olson, spokesperson for the National Park Service (NPS), reminds us that camping products are designed to be used in the open; never use a portable lantern, stove or heater in an enclosed space like an RV or a tent. And, he says, “Follow manufacturer guidelines when you use camping products.” statefarm.com® 11
3 Best-Kept Secrets We’re not saying you shouldn’t go to Denali—or Yosemite, or Yellowstone or any of the heavy hitters. After all there’s a reason they’re so popular. But nearly 400 other national parks are easier to book—and just as amazing in their own ways. “Many people don’t realize all the wonderful activities to choose from in our parks,” blogger Tiffany Akin says. A hidden gem is bound to be near you. Here are three (visit nps.gov for a full list). 1. Great Basin, Nevada From snowcapped Wheeler Peak (elevation of more than 13,000 feet) to the crystal-laden labyrinths of the Lehman Caves, Great Basin has adventure to spare. And you’ll never feel crowded, since this park draws only about 90,000 visitors a year. (By comparison Yosemite had more than 4 million in 2010.) 2. Big Cypress, Florida Just north of the Everglades is the relatively unknown Big Cypress National Preserve, which offers hundreds of thousands of acres filled with delicate swampland, thriving birdlife, and miles of canals that provide easy gator gazing. If you’re lucky (!) you might glimpse a Florida panther. 3. Chaco Culture, New Mexico Colorado’s Mesa Verde is more popular (and easier to get to), but Chaco Culture National Historical Park in remote northwestern New Mexico is just as amazing. It was the ceremonial and trading hub of the ancient Pueblo from 850 to about 1250 A.D., and the architecture tells the story of a sophisticated, complex culture. Why was the site abandoned? That's one of its many mysteries to explore.
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Wildlife Encounters Remember Nathan Rein’s experience with the bear at Yosemite? It’s not that unusual. Campers get up close and personal with wildlife every year. National Park Service spokesperson Jeffrey Olson points out that many parks provide bear lockers for storing food and toiletries. His advice? Use them! “Make sure to remove any scented items from vehicles, including the trunk, and store them in the food locker,” he says. “A slogan that helps first-time campers is: ‘If you put it in your mouth or on your skin, it should go in the bear locker.’” Bears aren’t the only ones crashing the party. “Pay close attention while cooking,” Olson warns. Animals such as raccoons, squirrels, ravens and
chipmunks will enter a campsite when food is present. “Always keep food within arm’s length, and never leave it unattended.” Think of campsites as nature’s zoo—and, as such, don’t feed the animals. Finally keep in mind that sometimes we humans are our own worst enemies—whether on city streets or backwoods trails. “Never leave any valuables in the car,” Helene Cleveland warns. “I’ve found several purses in the woods because people went out for a hike and thought their purse or valuables were safe, but somebody broke in by smashing a window.” Don’t bring your nice jewelry camping—and carry your wallet with you at all times.
More S’mores, Please
What camping trip is complete without a sugar high around the campfire? You know the recipe (graham crackers + chocolate bars + melted marshmallows = s’mores!). This triedand-true treat was formally introduced in 1927 and has remained a family favorite ever since. But that doesn’t mean you can’t tweak it a little: Add a bit of banana for extra nutrition! Sprinkle with cinnamon and cayenne for a south-of-the-border kick. Use dark chocolate and sprinkle with sea salt for a sophisticated s’more. Do like trendy chefs and add some bacon. Use a peppermint patty instead of milk chocolate. Try a chocolate or cinnamon graham cracker. Smear some peanut butter on the graham cracker before adding marshmallow for a PB&M sandwich. Or maybe nothing beats the original!
ALL THE FUN OF AN UNFORGETTABLE VACATION. ALL THE COMFORTS OF HOME. ALL FOR FREE. IT’S EASY TO SEE WHY HOUSE SWAPS ARE GAINING IN POPULARITY. BY NAOMI SHULMAN
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Left: Allison Gillis and her family wish they had asked more questions before swapping homes in Boston. Far left and below: House swapping is used by families both in this country—take NYC and the Brooklyn Bridge—and abroad in locations such as Paris. Below left: Sasha Nyary’s daughter Lily in front of a mural. Bottom: Sharon Gillenwater and her family on a recent house-swap vacation in New York City.
hen Sasha Nyary’s family vacationed in the San Francisco Bay area, they had beautiful accommodations. “Big, open rooms, a huge bath, tons of comforters and pillows on the beds,â€? Nyary recalls. Complimentary coffee and wine, too—plus free parking. Yet they didn’t pay a dime. That’s because Sasha and her family weren’t in a hotel. They were in another family’s home while that family was in theirs. They had swapped homes. Home exchanges are a big business—but one in which little to no currency changes hands. “Before the economy took a turn, people were willing to pay a lot for travel expenses,â€? says Keghan Hurst, public relations director for HomeExchange.com. “Today people are looking for ways to [travel] inexpensively ‌ without having to skimp on their overall comfort and experience.â€? Home exchanges can be a way to save hundreds, even thousands of dollars. They can also trump the hassle of a hotel with the convenience of a kitchen, a living room and multiple bathrooms and bedrooms. But before you willingly give up your keys, take stock of what’s involved and how to help protect yourself, your family and your home.
*4 " )0.& &9$)"/(& '03 :06 Can you picture yourself in this scenario? “There’s a certain personality type that’s open to this,� admits Katie Castobel, coowner with her husband of HomeLink USA (homelink.org/usa/), a branch of HomeLink International. It helps to be laid-back and a
little adventurous. “You’re going into a local perspective, and maybe a new culture if you’re traveling abroad. You go with the flow. Some little quirky items may not be what you’d find in a five-star hotel, but they go along with the whole adventure.� Shelley Miller, a home-swapping veteran who blogs at HomeExchangeExpert.com, couldn’t agree more. “When you stay in a hotel, you skitter across the surface. When you home swap, you dive deep into that country,� she explains. Home exchanging means you can usually afford to take longer vacations too. “And the longer you stay, the better—you begin to feel like a local.� Nyary’s experience was stellar. “It was a gorgeous Edwardian house that had been fixed up,� she recalls. “I felt like we were in a photo shoot for This Old House. We were inspired by the lack of clutter, and the single-season clothes—they don’t need winter and summer clothes, lucky ducks.� And the people Nyary swapped with—people they still haven’t met in person—had a similarly positive review of her Brooklyn home. “It was a great location, which was the most important thing,� says Sharon Gillenwater, a business consultant in San Francisco. But Gillenwater was already an experienced home swapper at that point. “We’ve spent six weeks in Europe, in three
different homes in Paris, Stockholm and Amsterdam. Most recently we went to the Dominican Republic in June 2012 and stayed a week in a condo near the beach.�
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HOME EXCHANGE ETIQUETTE “A lot of people say, ‘Why would I let a complete stranger into my home?’ � Katie Castobel says. “But the whole process ... begins months prior to the actual exchange. Over the course of time you develop a trusting relationship.� Shelley Miller agrees. “By the time you exchange, you’re not strangers,� she insists. “You’ll know their profession, that they like to play golf, that the wife is good at bridge.� A few points of protocol also help: BE HONEST. Don’t say you’ve got a beautiful deck if it’s a rotting back step. It’s key to manage expectations. “You want people to be pleasantly surprised,� Castobel says—not 14 goodneighborŽ
taken aback. Allison Gillis (see page 16) and her family might have enjoyed their swap more if they’d known what they were really getting. DRUM UP AN AGREEMENT. Many home exchange sites have boilerplate agreements so members can begin on the same page—who can use what, what should be left alone and so forth. You may choose to put things in writing but, Castobel says: “It’s not mandatory. We leave it to people’s discretion. Our more experienced exchangers don’t usually see the need for this formality.� Still, it provides a layer of security for both parties. PRESENT A CLEAN HOME. It doesn’t have to be fancy, beautiful or even well-organized,
but it should be sanitary. “We did come into a place once with spoiled food in the fridge,� Castobel recalls. “We just threw it away. It’s not a big deal, but certainly you should tend to those things.� On the flip side leave your host’s home clean too. Gillis came home to find “man-size black, dirty footprints in the tub.� Gillis sighs. “How hard is it to wipe down the tub?� .",& 40.& 41"$& After all, your exchange partners will be bringing luggage with them. “Leave ample space for their things,� Castobel says. “Empty some drawers and closets.� As you’re doing this, put the fine crystal and personal items out of harm’s way.
You can lock them in a closet, or just make one room off-limits. -&"7& 40.&5)*/( 41&$*"- It’s not an ironclad rule, but a nice bottle of wine or a box of local chocolates is always appreciated. Castobel leaves a homemade casserole in her fridge with heating instructions. “Just so there’s something waiting when they arrive, so they don’t have to rush right out to a restaurant,� she explains. Miller encourages swappers to make themselves at home in the kitchen. “Feel comfortable using it. If you finish something, go to the store and replace it, just as you would in your own home.�
When Miller and her family went on their first home exchange 12 years ago, she was nervous. “I took my jewelry box to a girlfriend’s house and hid our sterling silver in a box under our bed,� she recalls. Since then she’s swapped homes 14 times. And guess what? She hasn’t hidden her jewelry since. “I’ve realized that home-swap partners are there to tour a city, not your closet,� she says. Castobel agrees, pointing out that since her organization has been in business, it has not had a single reported theft or vandalism. And there are pluses to having someone in your home while you’re on vacation. “We feel our home is safer, in that someone is in it while we’re away,� she explains. “It’s not just locked up and empty for two weeks.� Michael Barry, spokesperson for the Insurance Information Institute, agrees. “Insurers generally prefer an occupied home to a vacant one,� he says. “It prevents situations where a home is more vulnerable to a theft or [if] severely damaged because [something like] a small fire or water leak went undetected for an extended period of time.� Nyary and Gillenwater didn’t use a home-exchange service to arrange their swap—they found each other through word statefarm.comŽ 15
OTHER Left and above: Sasha Nyary and her daughter; the family swapped homes for a trip to San Francisco. Far left: Gillenwater has swapped homes in Amsterdam.
of mouth. But using a reputable homeexchange organization ensures some built-in protection. The company supplies contract templates, and some provide user reviews from people’s exchange histories. Most charge a modest annual fee.
5)& '-*1 4*%& Allison Gillis tried swapping homes two years ago. “They had a few photos on the site, and it looked like a nice place, but that was one of our mistakes. We should have asked for more photos—especially of bedrooms. On a street with million-dollar homes, this one turned out to be, well ...� Gillis pauses, then launches in. “The ‘beautiful deck’ turned out to be a space that barely fit a plastic table and moldy plastic chairs along with all the trash bins. The fact that you could ‘even see the train from the window’—cool for our boys!—turned out [that there were] elevated tracks not 5 feet behind their fence, with the train running all day and night.� You might think Gillis would have been turned off from ever trying this again, but
that’s not so. “We still had a good vacation and did lots of stuff in Boston,� she points out. “It’s a good option for families visiting cities, where a hotel room isn’t big enough and other options are too expensive.� Nyary takes it a step further. “What’s nice about it is the homeyness. It’s like you’re trying on another life for a week,� she says. “We moved to another state 21/2 years later. I’m sure our house swap had something to do with our relocation. You start to see how else you could live.�
" $"3&'6- )0.& 48"11&3 *4 " HAPPY HOME SWAPPER
Miller may not hide her jewelry anymore, but she thinks it’s wise to box up and put away anything breakable or valuable. In the (very rare) case that you are robbed, your homeowners insurance policy may only cover areas explicitly named off-limits in your exchange agreement. Homeowner policies generally may cover any damage incurred by visitors, which is what your exchange partners are. Most auto policies may cover temporary drivers too. Don’t knowingly leave yourself open to liability, though—fix faulty wiring, You know how important it is to protect your tighten loose banisters home—even when you’re not there—with homeowners and make sure your insurance. But did you know that a Personal Liability swappers have decent Umbrella Policy can be essential in helping you driving records. And, as safeguard against unforeseen circumstances above and beyond the limits of your homeowners policy? Call a longtime State FarmŽ me today to set up an appointment to review your customer, Miller always coverage. advises home swappers to check in with their agents. Agent Na No one will know the ins and outs of your policies better.
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HOMEY
OPTIONS
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You won’t get the same kind of bargain that you do with a home exchange, but it can still be a pretty good deal, and you’ll have the homeyness that comes with being in, well, a home.
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SFMBUJWFT Test the waters by trying this with people you know, or friends of friends. But know that you won’t have the backup support of a homeexchange site.
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BDDPNNPEBUJPOT Airbnb is the most famous, but similar companies have been popping up, such as 9Flats and Wimdu. Services like this let you pay to stay in someone’s spare room or accessory unit—almost like the boardinghouses of yore. “There is an escrow function for the money and insurance function for damage,� explains Jane Hodges, a business writer in Seattle. “I’m an Airbnb host at our home, and I have repeat customers.� This can be a great, low-cost option—if you’re comfortable with your host being in the house with you.
FOR THE
RECORD WITHOUT A COMPREHENSIVE HOME INVENTORY, IT’S ALMOST IMPOSSIBLE TO REBUILD YOUR LIFE—AND YOUR HOME—AFTER A LOSS. AN EXPERT SHOWS YOU HOW TO CREATE ONE. BY KATHY BARNES
State Farm® customers Chris (left) and Jim Sachs (center) with home inventory expert Jeremy Thompson.
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VERY YEAR CLOSE TO 400,000 HOMEOWNERS ARE THE VICTIMS OF HOME FIRES
along as Thompson worked with State Farm customers Jim and Chris Sachs to create a comprehensive home inventory.
WALK THE PROPERTY
while thousands more suffer losses from tornadoes, severe thunderstorms and floods. If disaster struck your home and you had to replace some or all of your belongings, would you know where to begin? Experts agree that for most of us the answer probably is no— unless you have a comprehensive home inventory. “It’s one of those services that most people haven’t heard of until their home is destroyed by fire or flood or some other disaster,” says Jeremy Thompson, owner of the home inventory business TAKE YOUR Asset Protection Specialists. PORTFOLIO “Most of my clients have TO YOUR NEXT either been affected by disaster or know someone who has. And if they know AND someone who has gone through MAKE SURE YOUR COVERAGE LIMITS the process, they know there are a lot of headaches and MATCH YOUR PROPERTY. heartache involved.”
INSURANCE REVIEW
Jeremy demonstrates how to capture items from every room in the house— including the garage.
A home inventory checklist is the first thing the adjustor will ask for to initiate your claim. If you don’t have an inventory, you’ll spend weeks trying to recall the belongings in each of your rooms and will surely neglect to include a lot of what you owned. “You spend a lifetime accumulating things and you pay for insurance, so you want to be able to identify as many things as possible in the case of loss,” Thompson says. The essence of any home inventory is about cataloging your belongings. A comprehensive inventory has three parts: video narration; still photography; and a written record of each valuable item’s make, model and serial number. We followed
GET
STARTED
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There are a lot of reasons why having a complete home inventory makes good sense: It helps expedite the claims process after theft, damage or loss. It’s a record of your insurable assets that will not only help you in the settlement of a covered loss or claim but will also help verify tax-deductible property losses and determine the right amount of insurance coverage you need. While a home inventory can be as simple as a list or a visual record, an effective inventory should include both for added security.
State Farm Home*OEFY is a free online tool that combines the home inventory list with the visual record in one place. Home*OEFY makes documenting your valuables easy because it walks you through the inventory process, allowing you to share your inventory with your agent, and can even help you when you move.
Are you ready to start your home inventory? It’s easy to document what you own with State Farm Home*OEFY™.
Visit us at statefarm.com/ IPNFJOEFY to get started.
The first step in the process—before recording anything—is walking through the property to make sure all spaces are accessible and navigable. For the Sachs family that meant a walk through their suburban home and garage. Make a list of all the spaces in the house if it helps to keep you on track. The primary living spaces are obvious. But remember to include basement and attic storage, the crawlspace, laundry, office, closets and the garage. If you have detached buildings, such as a barn or a tool shed, include those too. Even the contents in the trunk of the car should be documented, because many people store items there. “Garages and basements absorb a lot of stuff,” Thompson says. “Most people don’t know how much stuff they own until they do a home inventory.”
VIDEO NARRATION
IT HAPPENED
TO ME
JOHANNA CURTISS MOVED to Taylors, South Carolina, in 2003 and met with her new State Farm® agent to insure her new home and possessions. “As I was leaving his office, he said, ‘Don’t forget to take pictures of everything you own.’ I rolled my eyes. After all I had just bought insurance and I thought that was enough,” says Johanna.
putting together their inventory. When Johanna learned there was no one who could help, she left her career and started her business, Asset Data Inventory. Two years after the fire, she purchased the Inventory Institute, a membership organization that educates people on the importance of having a home inventory.
On October 12, 2010, she learned it wasn’t. A house fire ruined everything she owned. Without any type of home inventory, Johanna and her husband were left to pick through the ruins to box up anything they could for restoration and to write down everything they could remember.
Seven claim portions and a list of 7,000 inventory items later, Johanna was finally done with her postfire home inventory. “Although we lost everything to smoke and fire damage, I am grateful and thankful beyond words because I could at least prove what I owned,” she says. “State Farm took care of us, replaced what we lost, and put us back whole again.”
Using a video recorder, the homeowner then walks through each space and talks One night, during those first about the origins of those items deemed few days after the fire, Johanna, Some people, however, are valuable—both sentimental and monetary. in a moment of frustration and left with nothing and no way to Chris recalled when she received some exhaustion, contacted the claims prove what was lost. “Get a home handmade bears made from valuable fur, adjustor and asked if they could inventory,” says Johanna. “I spent when she purchased collectible Waterford hire someone—anyone—who could two years of my life on this project. Christmas ornaments, china given to her help them with the process of Trust me—get a home inventory.” and her husband as wedding presents, even her daughters’ American Girl dolls and Harry Potter LEGO sets. Thompson says these video recordings are an important part of the “three waves of documentation” because picture of whatever is on the opposite wall. If the room is large, you’ll have the audio component that describes the history of it might take more than one image to record everything. your stuff. They also open every dresser drawer and cabinet Next, walk through the room and take more detailed images and take video of the contents. of art on the walls, tabletop displays, every bookshelf. Open
STILL PHOTOGRAPHY
After the video recording component is complete, go back through each room and storage space with a digital camera. Take an overall picture of the room. (Smaller rooms, such as baths or closets, can be tricky, but document them as best you can.) Then stand in each corner or against each wall and take a
each drawer and door, and take a picture of the contents within. Set jewelry on a black cloth and use the macro setting on the camera to capture the detail of each item. Chris wrote notes to include photos of sentimental glassware, so she always will know the maker and style name. “Photos can jog your memory and help you get a better count for what you own,” Thompson says. “In closets, for example, statefarm.com® 19
“MOST PEOPLE DON’T KNOW HOW MUCH STUFF THEY OWN UNTIL THEY DO A HOME INVENTORY. ... YOU WANT TO BE ABLE TO IDENTIFY AS MANY THINGS AS POSSIBLE IN THE CASE OF A LOSS.” —JEREMY THOMPSON
Video of every home space—garage, basement, crawlspaces—can help document seasonal items such as bikes.
people don’t often go through and set out every outfit, but if we can take some high-res images in there, the homeowner can always go back and count the number of suits, shoes and anything else that’s valuable. The quality of the resolution makes it possible to know the quantity, so you can piece together that part of the puzzle in case of loss,” Thompson says. Remember to take pictures of your home’s systems such as the furnace, humidifier and air-conditioners. Take images of fixed items too such as your bathroom sink and tub.
RECORD PRODUCT INFORMATION
The final step in a comprehensive inventory is the most important and also the most tedious. Go through each room and record the make, model and serial number of each item possible. Thompson uses a pocket recorder; with most electronics this
Whatever your insurance needs, State Farm® has products and tools to help make your life easier. If you haven’t taken a look at your policies in a while, contact me today to make sure your coverage is where it should be.
Agent Name
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information is on the underside of each item. For those items that might be fixed, such as a wall-mounted television, he recommends including whatever information is available. Knowing the make and model is helpful; when paired with other documents—such as the video narration that likely will include when and where the item was acquired, or through receipts that prove a purchase date and price—you get a pretty complete picture of the value. Thompson transcribes the serial numbers later and provides a list as part of the inventory for the homeowners. If you have receipts, credit card statements or other transaction documents and appraisals, those all can be included with the inventory. Keeping proper documentation helps facilitate the claims process.
SAFEKEEPING YOUR INVENTORY
Most home inventories take from two to four hours; for those with vast collections or a lot of square footage, they can require a day or more. Thompson provides a DVD of the video recording, a CD full of images, prints of each picture and a list of product information. This is an investment, so be sure to safeguard your inventory so that it won’t be lost in case of disaster. Thompson recommends keeping your complete home inventory in a bank safety deposit box so it’s accessible in case of total loss. You also can burn a copy of the CD and photocopy the list to keep at home, which can be helpful in case of theft.
WHEN TO UPDATE
A comprehensive inventory gives you valuable information about your belongings at the moment it is completed, but your accumulation of items is never over. Keep a running list of new and valuable items brought into the home. You can update your inventory on a schedule that works for you. It will be less daunting if you set a calendar appointment to tackle new purchases every six months or a year. Thompson recommends having a professional update every five years.
t. anagemen m ey on mart m s f o e m lifeti child’s r u o for y y a BY LAMBETH w HOCHWALD the e v Pa
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n the months leading up to the day her son left for college in fall 2012, Cathy Shouse, a mom in Fairmount, Indiana, focused as much on teaching him about managing money as she did on the merits of a minifridge. Shouse happens to be a Chartered Financial Consultant, so she knows about the importance of money management skills. She also knows that any parent can—and should—do just as good a job of reviewing how things will change moneywise once a child arrives on campus. “I talked to him about conscious spending,� she says. “It was one of the most important conversations we had before he left for school.� Other experts agree. “Parents should go over a preliminary budget and schedule time to review and revise it a few weeks after classes begin,� suggests Gary M. Orkin, a certified public accountant in Jericho, New York. Here are helpful ways to place your soon-to-be college-bound kids on the
right financial footing once they arrive on campus, especially in light of rising college costs. The goal: Establish good habits that last for the next four years—and beyond. ENCOURAGE THE RIGHT KIND OF PLASTIC In all likelihood your child hasn’t done much money management—yet. But he or she is about to get a crash course on spending and potentially running out of money. So how can you help? Opinions are mixed but, for some experts a checkbook (however old-fashioned) or a cosigned debit card is a far better way to manage expenses than a credit card. Discuss a weekly allowance and, for items that cost more than $50, agree to talk (or text) about it— before any dollar is spent. Always emphasize that there’s a difference between a current posted balance and an available balance so the account doesn’t get overdrawn, suggests Dave Andersen, vice president at FiPath, a website that provides independent financial education and tools for consumers. For others a credit card with a low limit— and rules—is an OK option. And, again, how much money can be spent by your child will depend on your overall family budget. “Monthly statements should be sent to the parents’ home, and text alerts should be sent to the parents whenever large purchases are made,� Orkin says. In the end, credit cards can be dangerous, but they also can be an important way to help
your child build up a good credit score, something needed for job interviews or to rent an apartment. DISCUSS IMPORTANT DOCUMENTS— AND WHAT TO DO IN AN EMERGENCY To get your kid off to an organized start, help create a filing system for items such as health records, birth certificate, driver’s license, passport and so on. Keep the originals at home; send your child with copies of anything needed. Among the most important pieces of paperwork that the college will send you is information about the health insurance coverage the school offers. You don’t have to sign up for coverage offered on campus; you certainly can keep your child on your own policy. But your child should keep an insurance card in his or her wallet at all times and know where the health center is on campus. For Shouse it made more sense to keep her son on the family plan. But again, communication is key—before an emergency arises. “We talked with our son about what to do if he needs medical treatment and decided that he would text me and discuss the options if that situation arose,� Shouse says. “He knows as well that if there’s ever a true emergency, he should go to the closest hospital.� Another tip: Consider booking all of your child’s wellness visits before school starts. This way he has the acne medication, contact lenses, eyeglasses and whatever maintenance items he needs before he arrives on campus. And remember to factor in the little things that add up when your young adult gets sick such as tissues and pain reliever.
FINAL TO-DOS . . . So you’ve bought that dorm room fridge, had the car tuned and packed the boxes. But before you leave, make sure you check in with your State Farm agent with key questions about coverage. *4 :063 $)*-% 5",*/( " $"3 50 4$)00- Remind him or her about safe practices—where to 22 goodneighborŽ
MAKE SURE THE CAR IS READY TO ROLL If your child is taking a car to school, everything from pumping gas to maintenance issues should be discussed, as should campus parking costs, car insurance and repairs. In the end the car is just one more thing to be strategic about. “Factor in oil changes and even car washes,� says Galia Gichon, a personal finance expert in New York City who teaches college students about managing their money. “All of this should then be added to the budget for the semester.� Before your child leaves, make sure the car is road-trip ready. This means taking it for an oil change and overall check, including lights and tires, to ensure that he or she is as safe as possible on the road. After you triple-check the registration (and that your child’s license isn’t expiring soon), talk about the additional factors that influence budgets. “It’s surprising how much it costs to fuel my son’s quick trips from his dorm to town,� Shouse says. “He mapped out weekend visits to friends at faraway colleges, and this is something that’s going to cost a lot in gas money alone.� PREPARE FOR THE EXTRAS Let’s say you’ve done all of the above and have allocated every dime your child will need and, lo and behold, the calls start to come in for more. Perhaps you forgot
the extras, which can be anything from haircuts, late-night burger runs, movies, laundry (a task that used to be free), road trips and toiletries to that endless stream of coffee at Starbucks. The solution: Map out a reasonable amount a student can spend per month on so-called miscellaneous. And don’t forget
SAVE THE DATE September is National Campus Safety Awareness Month, the perfect segue to talking to your child about how to recognize situations that are unsafe, trust their instincts, and when to seek help from campus security.
REMEMBER WHEN? How times have changed...
to factor in snacks. “A big role I find I play is being the snack provider,� Shouse says with a laugh. “My son tells me he has to fill the fridge.� And if your child goes to college close to home, get ready for visits home occasionally with either laundry or to grab food. “Half the reason kids go home is for the snack reload,� Shouse says. Since even the cheapest chips and soda get costly after a while, do yourself a favor and add snacks to the extras section of the budget. It’s what learning to be an adult is all about.
OLD SCHOOL
NEW SCHOOL
Print textbooks
Digital textbooks
Buy CliffsNotes
Download the SparkNotes app
Call home
Skype home
Take notes with pen and paper
Take notes with laptop or tablet
Research library stacks
Research online journals
Pay for laundry with a roll of coins
Pay for laundry with a prepaid card
Sit in the laundromat waiting for a washer or dryer to open up
Sit in your living room with a mobile app that alerts you when a washer or dryer opens up
CHECK IN WITH YOUR STATE FARMÂŽ AGENT park in the lot, for example; not leaving valuables inside; not lending the keys to anyone. In addition ask your agent about coverage: Anything you need to notify the agent about with the car at a different location? Have rates changed now that your child is older? Get all your
questions answered before he or she pulls out of the driveway.
MP3 players and laptops. Ask your agent about coverage in case of damage or theft.
8)"5 "#065 5)04& '"/$: &-&$530/*$4 Many college-bound kids leave home equipped with costly tech gear, from tablets to e-readers, game consoles,
"/% '*/"--: Make sure your college-bound child has copies of State Farm insurance cards for auto and any other relevant policies. statefarm.comÂŽ 23
BACK STORY
GROWING GREEN
COMMUNITIES
For low-income families, going green is about much more than carbon footprints and greenhouse gas emissions. It’s about their long-term health and financial well-being.
Building by building and block by block, we are helping families build a healthier future.” —Michael Rubinger, LISC president and CEO
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That’s why State Farm is collaborating with the Local Initiatives Support Corporation (LISC) in New York City on a comprehensive program focused on “going green.” It makes low-income housing more energy efficient, improves indoor air quality, expands access to healthy food, develops neighborhood green space and creates jobs focused on our increasingly green economy. State Farm has provided support to LISC for these types of community efforts since 2000. “This is about helping people and places become healthier,” said Colleen Flynn, Community Development Officer for LISC’s New York City program. LISC NYC supports its Green and Healthy Neighborhoods Initiative through a national grant from State Farm, which is distributed to nine LISC offices nationwide. The NYC program, which operates in four neighborhoods in Brooklyn and the Bronx, broadens the concept of “green” to encompass a range of issues that impact quality of life. “We at State Farm feel good supporting LISC, knowing that they are improving communities in a comprehensive way,” said Ed Woods, State Farm’s Director of Enterprise Community Development. Flynn elaborated: “We’re making homes more affordable and reducing rates of asthma with green retrofits. We’re bringing urban markets to food deserts and planting trees in concrete canyons. We’re training building superintendents in green technology and creating jobs in the neighborhoods that need them most. For us, going green means helping people live better.” The impact of the program is already clear. Consider Luvenia Mack, a 61-year-old resident of Brooklyn’s Bedford-Stuyvesant neighborhood, living in an apartment building that is more than 110 years old. She took advantage of a free energy assessment offered
LISC NYC’s local partner, Cypress Hills Local Development Corporation, and volunteers transform a vacant lot into a community garden.
as part of the LISC initiative, and found a potentially lethal gas leak in her home. It was fixed within an hour and additional work made her apartment warmer and her gas bills more affordable. “LISC NYC is focusing on the residents with the most need for these health and economic benefits“, Flynn said, noting the ripple effect of the green program throughout neighborhoods. “State Farm is helping us change the face of struggling communities,” said Michael Rubinger, LISC President and CEO. “Building by building and block by block, we are helping families build a healthier future.” “Strong and stable neighborhoods provide a healthy business environment for State Farm and State Farm agents,” Woods says. “State Farm is connected to the neighborhoods where we live and work.”
POLICY POINTS
HELP PROTECT YOURSELF
AGAINST LAWSUITS
You already drive safely and insure your home. But accidents happen— and personal liability lawsuits can too. A personal liability umbrella policy can help protect you from the financial impact of a lawsuit. Here are situations where an umbrella policy may be helpful:
Your gate is left open and your dog gets out and bites a neighbor. You are in a car accident and a passenger in the other car is injured. Someone slips and falls in the bathtub of your rental property. Your teen accidentally hits the gas instead of the brakes on the family car and crashes into a building. You may think you’re protected if you already have home, auto and boat
insurance. But the liability limits on these policies may not be high enough to cover a judgment against you. Your defense costs will be satisfied by the underlying policy (e.g., homeowners). Personal liability umbrella policies may protect you in situations that may not be covered by your other insurance policies such as personal injury lawsuits. A personal liability umbrella policy helps protect you and your family from the financial impacts of these events. It layers on top of your existing underlying policies to provide extra protection when home and auto liability limits are exhausted. As a result, your financial stability won’t be threatened. Call your State Farm® agent today to learn more about a personal liability umbrella policy.
WHAT DO EXPERTS SAY? Many financial advisers recommend personal liability umbrella policies. That’s because no matter how much financial planning you do, a liability lawsuit could significantly hurt your household’s well-being. Consider investing in a personal liability umbrella policy to ensure that your family and financial health are well protected.
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