5 Tips on How to Keep the Change for a Rainy Day:

1. Never refuse free money.

If your company or your bank offers you free money, take it and watch it grow. Check out the Keep the Change program at Bank of America.

2. Use time when it is on your side.

Young people should start investing earlier than they are. According to a new survey by Bank of America, one in five 18 – 34-year-olds have never thought about saving for a rainy day.

3. Set up automatic savings plans.

There are many programs that encourage improved savings behavior and require very little from you. For example, US Bonds, company savings plans and the Keep the Change program from Bank of America are all automatic savings plans.

4. We live in the “sandwich generation.”

Americas are faced with more challenges now as their parents live longer, forcing them to take on more financial responsibility for the older and younger generations. Seek savings plans that encourage a change in your savings behavior and ensure a solid future for you and your dependants.

5. Know where you spend your money.

Americans tend to lose track of where their money goes. An automatic savings plan helps to offset some of those behaviors and encourages better management of your finances.

As you go through life, you have various financial rights and responsibilities at different ages. Perhaps you or someone you know will have one of these birthdays sometime this year, so you should know what to expect:

Age 14:
The Kiddie Tax disappears. After age 14,you pay income tax at the child’s tax rate, no matter how much income is earned. Under age 14, you pay tax at the parent’s rate on any income over $1,500.

Age 17:
Your parents lose the child tax credit. Under that age your parents can claim $600 off their taxes. This is also the last year that you can contribute to the Coverdell education savings account up to $2,000 a year.

Age 18 or 21:
The age of majority in your state, which means you can do whatever you want with money in a Uniform Gift to Minors Act (AGMA ) account in your name.

Age 50:
First year you can contribute the extra catchup $500 into an IRA and/or a 401k. That means you can contribute $3,500 instead of $3,000 if you are merely 49. These catchup amounts will rise in
coming years, eventually to $1,000 a year.

Age 59½:
First time you can take withdrawals from a 401k, IRA or other retirement plan without a 10% penalty.

Age 60:
Age at which a surviving spouse can get Social Security benefits based on the deceased spouse’s work record.

Age 62:
The first age at which you can start collecting social Security, though you are penalized as much as 20% for starting to take benefits so early.

Age 65:
First age when you can retire and get full Social Security benefits.

Age 70:
Age at which you can delay taking Social Security to get the maximum benefit. Benefits don’t increase any more if you wait longer, so start collecting now.

Age70½:
Age at which you must start taking minimum distributions from your retirement plans like IRAs and 401ks,or you get heavy penalties.

Whatever birthday you celebrate this year I wish you the best year ever and a solid financial future.

Happy Birthday!

Jordan