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Show Page 8 The Ogden Valley news Volume XXII Issue VIII June 15, 2014 Financial Advice premium for cable, New Fathers Consumer Attitudes Dip as Confidence in etc. After six months, evaluate whether they were actual “needs” or simply Utah’s Economic Trajectory Declines— “wants” you can live without. Get insured. If your family depends on Zions Bank CAI falls for the first time in 2014 your income, you must be prepared for life’s The Zions Bank Utah Consumer Attitude up from 15 percent. This is likely why Utahns unexpected events, whether an accident, ill- By Jason Alderman Each year when Father’s Day rolls around, I’m reminded that I wouldn’t trade the experience of raising my two kids for the world. But when I think back to how naïve my wife and I once were about the costs of raising children, I can’t help wishing we’d been better prepared. If you’re a new dad, or about to become one, you’d better sit down. According to the U.S. Department of Agriculture, a typical middle-income family can expect to spend over $241,000 to raise a newborn child until age 18—and that doesn’t even include prenatal care or college costs. Right now, you’re probably more worried about getting enough sleep than funding your retirement. But at some point, you’ll need to plot out a financial roadmap to ensure your family’s future financial security. As one dad to another, here are a few strategies I’ve learned that can help. Start saving ASAP. It’s hard to save for the future when your present expenses are so daunting, but it’s important to start making regular contributions to several savings vehicles, even if only a few dollars at a time: • Establish an emergency fund with enough cash to cover at least six months of living expenses. Start small by having $25 or $50 a month deducted from your paycheck and automatically deposited into a separate savings account. • Even if retirement is decades away, the sooner you start saving and compounding your interest, the faster your savings will grow. If your employer offers 401(k) matching contributions, contribute at least enough to take full advantage of the match. • Once those two accounts are well established, open a 529 Qualified State Tuition Plan to start saving for your children’s education. If funding these accounts seems impossible, look for a few luxuries you could cut from your budget for six months—lattes, eating out, ness, unemployment or death. Get adequate Index (CAI) decreased 6.6 points to 96.3 from coverage for: April to May. This marks the first decrease in 2014 and the first decrease since October 2013. • Health insurance. Everyone needs medical Although the CAI decreased this month, Utahns insurance, no matter how young or healthy. still have strong confidence in the state’s econ• Homeowner/renter’s insurance. Don’t let omy, as the CAI has improved nearly 20 points theft, fire or another catastrophe leave your over the past 12 months. For comparison, this family without a home or possessions. To month’s national Consumer Confidence Index® reduce premiums, consider choosing a higher (CCI) increased 1.3 points to 83.0. deductible. The Zions Bank CAI fell this month pri• Life insurance. You’ll probably want coverage marily because of lower expectations for the worth at least five to 10 times your annual pay trajectory of the economy. In particular, – more, if you want to cover college costs. Utahns’ expectations for both business conAnd don’t forget to insure your spouse’s life ditions and household income downgraded so you’ll be protected as well. slightly from April to May. The percentage • Disability insurance. Millions of Americans of Utahns who think business conditions will suffer disabilities serious enough to miss be better six months from now declined from work for months or years, yet many forego 31 percent to 29 percent, while the percentage disability insurance, potentially leaving them of Utahns who think business conditions will without an income after a serious accident or be worse six months from now increased from illness. Ask about your employer’s sick leave 6 percent to 10 percent. The percentage of and short-term disability benefits and if long- Utahns who expect their household income to term disability is offered, consider buying it. be lower six months from now increased to 8 • Car insurance. Almost every state requires percent from 4 percent, while the percentage insurance if you own or drive a car, and of Utahns expecting their household income to for good reason: It protects you financially be higher six months from now remained at 30 should you cause an accident or be hit by percent. Consumer attitudes were mixed with an uninsured driver. Make sure you have regard to the labor market, as those expecting sufficient liability coverage to protect your more jobs in the next six months declined from net worth and income – it only takes one 30 percent to 28 percent, but those expecting fewer jobs also declined, moving from 14 perserious accident to wipe out your savings. cent to 13 percent. Utahns became less concerned about inflaAnd finally, spend responsibly. If you buy things you don’t really need or can’t afford, tion this month. The percentage of Utahns who you’ll just end up having to work longer hours expect prices for consumer goods to increase to pay for them—time you could have spent over the next 12 months declined to 77 percent watching your kids growing up. from 84 percent. Very few consumers expect Note: Jason Alderman directs Visa’s financial prices to go down; the percentage of Utahns education programs. Follow Jason Alderman on expecting prices to decline was 0.2 percent. Twitter at <www.twitter.com/PracticalMoney> But the percentage of Utahns who think prices will stay the same now stands at 22 percent, are also less worried about inflation deteriorating their household income. The percentage of Utahns who think their household income is likely to increase by more than the rate of inflation during the next two years increased to 26 percent from 22 percent last month. Similarly, fewer Utahns think interest rates will continue to move higher in the coming months. Those expecting rates for borrowing money to go up over the next 12 months declined to 61 percent from 66 percent, and those expecting interest rates to stay the same increased from 26 percent to 32 percent. This expectation likely reflects current interest rate trends. The average 30-year fixed rate mortgage decreased to 4.33 percent last week, which is the lowest rate since November 2013, according to the Mortgage Bankers Association. Decreasing, or, at a minimum stabilizing interest rates, could help the economy continue to improve, as last month retail sales edged up only 0.1 percent. Retail sales were weaker than expected in April because of a decline in receipts at furniture, electronic, and appliance stores. These large-ticket items are often purchased with credit, and declining interest rates will make these items more affordable for consumers. This principle was reflected in Utahns’ attitudes this month., as the percentage of Utahns likely to purchase a major item (e.g. furniture, appliances) increased to 29 percent from 25 percent. “Consumer attitudes dipped slightly this month as Utahns tempered their enthusiasm about the state’s economic trajectory,” said Scott Anderson, president and CEO of Zions Bank. “Before we become too concerned, though, let’s remember that consumer attitudes are still near historic levels. We have a remarkably low unemployment rate, and our housing market is thriving. This is merely a bump in the road, and we expect attitudes, and subsequently the state’s economy, to continue to march higher in the coming months. ” Zions Bank provides the CAI as a free resource to the communities of Utah. The monthly CAI summary reports are released at a monthly press conference, coinciding with The Conference Board’s national CCI release date. The reports are available online at <www.zionsbank.com/cai> Analysis and data collection for the CAI are done by The Cicero Group, a premier market research firm based in Salt Lake City. The June CAI will be released June 24, 2014. Additional information available at <www. zionsbank.com> WEST POINT cont. from page 1 Cosby says that he felt the academy was right for him, “because of its focus on hard work, character, and emphasis on physical and athletic ability.” Physical fitness may have been one of the key components of Cosby’s success in getting into West Point. Along with good grades, and a good ACT score, the academy has a physical fitness assessment as part of their admission process. Cosby scored in the top 2 percentile in the nation for physical fitness. “If you ever want to apply to West Point,” Cosby’s mother Sheri states, “Plan on at least eighteen months of preparation. The process is very lengthy, and they are very thorough.” The first required step is being nominated by either the President of the United States, the Vice-President of the United States, or a member of Congress. Cosby filled out forms and went through the process to interview with both Orrin Hatch and Rob Bishop. Rob Bishop officially gave him a congressional nomination, enabling him the opportunity to begin his application process. “It doesn’t quite seem real yet,” says Cosby, now that he has finally been accepted and is beginning his preparation for departure. The first step will be surviving Cadet Field Training, and then his academic classes begin on August 18. West Point Military Academy offers students a choice of over 45 majors, and small class sizes of only 12 to 18 students. Students fortunate enough to be admitted are on full scholarship, and all expenses are covered in full. In addition, once Cosby graduates, he will have earned a bachelor’s of science degree, and will also be a 2nd Lieutenant in the U.S. Army. After graduation, three years of active-duty military service is required, as well as five years of reserve service. Cosby will arrive at West Point with only the clothes on his back, and a few items that are listed on a specific packing list. No cell phones, electronic devices, or personal items go with you. The academy issues you clothing, even underclothing, and students eat meals together at the mess hall. After the student’s freshman year, they may return home for summer break, but there are many other opportunities provided for students during the summer months to further advance their training and education—even opportunities to study abroad. “He is a very lucky kid,” jokes Cooper’s father Mike. “Okay he’s lucky, but he also worked hard and very much deserves this opportunity.” “I even got a little teary eyed,” says his mother, Sheri Cosby, “watching him go through the admission process, and seeing him communicate and present himself so well.” Cooper Cosby has lived in Huntsville for the last eighteen years. He attended Valley Elementary, Snowcrest Junior High, and recently graduated from Weber High School. He played basketball for Weber High School, and also competed on their power lifting team. He is the son of Mike and Sheri Cosby of Huntsville. He has two older brothers, and one younger sister. Other than a grandfather, none of Cosby’s immediate family has ever served in the military. |
