On July 1, new rules went into effect concerning overdrafts on your debit or ATM cards. You now get to choose in advance what happens when you make a charge on your debit or ATM card and don't have enough money in your account to pay for it.

Let's say you buy something with your debit or ATM card but haven't been keeping track of how much you have in your account. It turns out you don't have enough money in there, which means the withdrawal will lead to an overdraft. According to the Federal Reserve Board Web site http://www.federalreserve.gov/consumerinfo/wyntk_overdraft.htm there are usually two ways that banks deal with an overdraft, standard overdraft practices or overdraft protection plans.

Standard overdraft practices: Your bank will cover your transaction for a flat fee of about $20-$35 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your bank will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee. In this example, if the fee your bank charges for its standard overdraft practices is $30, you will pay a total of $60 in fees on $100 in overdrafts.

Overdraft protection plans: Your bank may offer a line of credit or a link to your savings account to cover transactions when you overdraw your account. Banks typically charge a fee each time you overdraw your account, but these overdraft protection plans may be less expensive than their standard overdraft practices.

So what's different under the new rules? Basically, your bank has to give you the option to choose how the bank will deal with an overdraft from you.

In the past, some banks automatically enrolled you in a standard overdraft program when you opened an account with them. Now, the bank has to ask your permission and you have to opt in. If you don't opt in, beginning August 15th, 2010, your bank's standard overdraft practices won't kick in when you charge too much.

Instead, the transaction will typically be declined when you don't have enough in your account to cover it. You won't be charged an overdraft fee, but you also won't be able to complete the purchase or withdrawal, either.

If you have an existing account that was opened any time before July 1, you are supposed to get a notice from your bank about their standard overdraft practices, asking if you want them to continue or not. If you open an account after July 1st, you will be asked if you want to opt in or out when you fill out the initial paperwork. Whichever way you decide, you can change your mind at any time.

Warning: If you write checks or set up automatic bill payment from your checking account, the new rules do not cover checks or automatic bill payments. Your bank can still automatically enroll you in their standard overdraft practices for those types of transactions. If you don't want that to happen, contact your bank, but you may find that you don't have the option to cancel.

As always, it pays to shop around when you open a checking account. Banks could lose significant revenue if a majority of customers now opt out of overdraft protection, so down the road certain banks may decide to charge their customers new fees to make up for that loss of revenue.

Always be aware of the terms of service of your account, and that includes reading those updates that come in the mail! If you don't like your bank's terms, you may want to shop for a bank whose fee structure you like better.

Average domestic air fares in the first quarter of 2010 increased to the second highest January-to-March level since 2001, rising 4.7 percent from the first quarter of 2009, the U.S. Department of Transportation's Bureau of Transportation Statistics (BTS) reported July 28.

Of the top United States 100 airports, the highest fare came from Huntsville, and the lowest fare in Atlantic City.

The $328 first-quarter 2010 average fares were down 8.3 percent from the all-time high, not inflation-adjusted, of $358 in the third quarter of 2008. Adjusted for inflation, first-quarter 2010 fares were down 25.0 percent from 1999, the inflation-adjusted high for any first-quarter since 1995. The first quarter 2010 average fares were up 8.9 percent from the post-9/11 fourth-quarter low of $301.39 in 2005.

As part of the Research and Innovative Technology Administration, BTS reports average fares based on domestic itinerary fares, round-trip or one-way for which no return is purchased. Fares are based on the total ticket value, which consists of the price charged by the airlines plus any additional taxes and fees levied by an outside entity at the time of purchase.

Fares include only the price paid at the time of the ticket purchase and do not include other fees, such as baggage fees, paid at the airport or onboard the aircraft. Averages do not include frequent-flyer or "zero fares" or a few abnormally high reported fares.

Air fares in the first quarter of 2010 declined 5.6 percent since the first quarter of 2001, compared to an overall increase in consumer prices of 23.5 percent during that period. In the 15 years from 1995, the first year of BTS records, air fares rose 10.5 percent compared to a 43.7 percent inflation rate. In 1995 dollars, the average air fare in the first quarter of 2010 was $228, compared to $297 in 1995 and $301 in 2000.

If one has been thinking—or even just dreaming—about getting a new house, recent research in the real estate market may have some intriguing results for them.

First, Fannie Mae found that two-thirds of Americans (65 percent) are still bullish on home ownership, preferring to own a home despite the challenging economic environment and the housing downturn.

Next, there's the research conducted by MarketTools, Inc. for CENTURY 21(R) First-Time Home Buyer and Seller Survey. It captured and compared the opinions of prospective home buyers and sellers who either purchased or sold their first home within the past year or are planning to buy or sell their first home within the next year. The majority of survey respondents had moved or intended to move more than 10 miles but less than 50 miles from their previous location, indicating current market conditions may be a catalyst for buying or selling homes, as opposed to a desire to dramatically change geographic location or relocate for a job.

"Buying a home, whether it's your first of subsequent purchase, is the single greatest financial decision that most people will make in their lifetime," said Rick Davidson, president and chief executive officer, Century 21 Real Estate LLC. "Research helps show that today's market presents a generational opportunity for home buyers and current home owners looking to leverage their market position."

Current Market

Conditions

More than 80 percent of first-time home buyers and sellers feel the current housing market is more affordable today than at this time last year. This is despite the fact that 40 percent of all respondents are more worried about the economy now compared to this time last year. Federal tax credits and solid mortgage rates had a positive impact on driving people to take action.

Re-establishing

Balance

A full market recovery takes time and current conditions continue to favor buyers. While buyers are excited about the opportunities in the current market, sellers note their main concern is losing money on the sale of their home and receiving offers near their asking price.

When will the balance between housing need and inventory return? The real estate industry typically considers six months of inventory to represent a balanced market. According to the National Association of Realtors, the number of homes for sale currently represents approximately eight months of inventory and remains 11.6 percent below the record of 4.58 million homes for sale. First-time home buyers anticipate home prices will soon begin to rise and, in fact, about half of first-time buyers expect an increase by this time next year, thereby re-establishing better market equilibrium.

Let an Expert Help Guide You

Whether one is considering buying or selling a home, one may be interested to learn that 60 percent of first-time home buyers do not feel they have a good handle on the real estate process. Given both the complexity and the opportunity of today's real estate market, 85 percent of both first-time buyers and sellers feel that using a real estate professional is important. Allowing an experienced professional to help guide people to the home that's right for them, at a price they can afford.

Learn More

Further facts and tips can be found online at www.century21.com/buyingadvice and by calling (866) 732-6139.

The real estate market is recovering and providing a powerful opportunity to act, studies show. Many prospective homeowners are taking advantage of today's positive price points and low interest rates.

After work readiness training, the stage was set June 17 for the Summer Youth Employment Program, with potential employers meeting with youth to make a job match.

By becoming a worksite, potential employers were invited to North Florida Community College to talk about their current job openings and hear youth talk about their skills to meet those needs.

Sylvia Diggs, Workforce's coordinator for the Summer Youth Employment Program in six counties, introduced the session by asking each employer to give a description of their job needs.

From Madison County, employers ranged from the Madison County Extension Office to the Madison Public Library, United Methodist Cooperative Ministries, Madison County Recreation, Madison Nursing Center, Madison County Solid Waste and Recycling and North Florida Community College. Diggs said that one position is also available to shadow her job this summer at Workforce.

"We're proud – we've come a long way," said Sara Shepherd, Workforce youth career consultant. Each student gave a presentation about themselves and why they would make a good choice for employment. Employers filled out evaluation sheets identifying their top three choices for the summer positions available.

One of the students, Melody Allen, said she heard about the program from a friend who was placed in a summer job. "Our generation really needs to think about saving money up and putting it away," said Allen.

More than $4.45 million in total refunds were returned to Big Bend residents from January to April this year thanks to the BEST Project's Volunteer Income Tax Assistance (VITA) program.

Through the BEST Project (Believe, Earn, Save, Thrive), United Way of the Big Bend (UWBB) is leading an effort to help lower-to-modest-income residents preserve and increase their financial assets.

The VITA program's IRS-certified, volunteer tax preparers helped residents in Franklin, Gadsden, Leon, Jefferson, Madison, and Wakulla counties with free tax preparation and filing, noted Amanda Clements, UWBB Strategic Initiatives vice-president. VITA volunteers prepared basic, current year tax returns and worked to ensure that eligible families filed for the Earned Income Tax Credit (EITC), which can increase a family's annual income by as much as 15 percent.

More than 3,700 residents took advantage of the service, avoiding predatory income-tax preparers and expensive refund-anticipation loans.

"I used VITA for the first time this year and will definitely use the service again," said Miriam Barfield, student at Florida State University. "The volunteers were all so nice, and it didn't take long for my return to be completed. I don't see why anyone would pay to have their taxes done when we have this great, convenient and free service in our community."

In 2010, 3,761 tax returns were filed through VITA sites resulting in $1.15 million EITC refunds and more than $564,000 in total tax-preparation fee savings.

"There's no question that VITA has impacted the lives of people in our area," Clements said. "Considering that tax returns filed at VITA sites were down about one percent this year nationwide and filings at VITA sites here in the Big Bend were up by six percent, it's clear that this program is making a difference."

VITA has had an estimated $14.6-million economic impact on the Big Bend in the last six years, with $12.7 million in total refunds and $1.9 million in tax-preparation fee savings. Through the work of the VITA volunteers, these dollars stay with the individuals and families who need them most.

"This program [VITA] is important to keeping our resident safe from financial predators," said Johnny Session, a long-time volunteer with the City of Tallahassee and City Hall VITA Site Coordinator. "I'm proud to continue to be involved in a program that is focused on keeping hard-earned dollars in the pockets of hard-working individuals."

The IRS has posted on its website the newly-revised payroll tax form that most eligible employers can use to claim the special payroll tax exemption that applies to many new workers hired during 2010.

Designed to encourage employers to hire and retain new workers, the payroll tax exemption and the related new hire retention credit were created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18.

Employers who hire unemployed workers this year (after Feb. 3, 2010, and before Jan. 1, 2011) may qualify for a 6.2% payroll tax incentive, in effect exempting them from the employers share of Social Security tax on wages paid to these workers after March 18. This reduction will have no effect on the employee's future Social Security benefits. The employee's 6.2% share of Social Security tax and the employer and employee's shares of Medicare tax still apply to all wages.

In addition, for each qualified employee retained for at least a year whose wages did not significantly decrease in the second half of the year, businesses may claim a new hire retention credit of up to $1,000 per worker on their income tax return. Further details on both the tax credit and the payroll tax exemption can be found in a recently expanded list of answers to frequently asked questions (http://www.irs.gov/businesses/small/a-rticle/0,,id=220745,00.html) about the new law now posted on IRS.gov.

How to Claim the Payroll Tax Exemption

Form 941 (http://www.irs.gov/pub/irs-pdf/f941.pdf), Employer's QUARTERLY Federal Tax Return, revised for use beginning with the second calendar quarter of 2010, will be filed by most employers claiming the payroll tax exemption for wages paid to qualified employees. The HIRE Act does not allow employers to claim the exemption for wages paid in the first quarter but provides for a credit in the second quarter. The instructions (http://www.irs.gov/pub/irs-pdf/i941.pdf) for the new Form 941 explain how this credit for wages paid from March 19 through March 31 can be claimed on the second quarter return. The form and instructions are now available for download on IRS.gov.

The HIRE Act requires that employers get a signed statement from each eligible new hire, certifying under penalties of perjury, that he or she was not employed for more than 40 hours during the 60 days before beginning employment with that employer. Employers can use new Form W-11 (http://www.irs.gov/pub/irs-pdf/fw11.pdf), Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, released last month, to meet this requirement. Though employers need this certification to claim both the payroll tax exemption and the new hire retention credit, they do not file these statements with the IRS. Instead, they must retain them along with other payroll and income tax records.

These two tax benefits are especially helpful to employers who are adding positions to their payrolls. New hires filling existing positions also qualify as long as they are replacing workers who left voluntarily or who were terminated for cause and otherwise are qualified employees. Family members and other relatives do not qualify for either of these tax benefits.

Businesses, agricultural employers, tax-exempt organizations, tribal governments and public colleges and universities all qualify to claim the payroll tax exemption for eligible newly hired employees. Household employers and federal, state and local government employers, other than public colleges and universities, are not eligible.

Those employers who maintain health care plans for retirees should know that the U. S. Department of Health and Human Services (HHS) now provides significant financial assistance through its Early Retiree Reinsurance Program. HHS, pursuant to authority granted by the recent health care reform law, is administering the $5 billion program offering employers with retiree health plans up to 80% reimbursement of claims by retirees, ages 55 to 64, not yet eligible for Medicare. This temporary program is designed to make it easier for employers to provide health coverage to early retirees.

The reimbursement is available for individual total claims between $15,000 and $90,000 in the plan year. For purposes of meeting the threshold, the limits apply to individual costs as opposed to the aggregate claims of multiple individuals. The retiree health care plan must have in place provisions that save costs or have the potential to save costs for chronic medical problems requiring expensive treatment.

Under HHS rules, only health care expenses incurred after June 1, 2010 are eligible for reimbursement. The categories of reimbursable expenses include medical, hospital, surgical, prescription drugs and mental health. HHS may provide for the reimbursement of other expenses in the future.

For more information regarding the Early Retiree Reinsurance Program, employers are encouraged to visit the HHS website (www.hhs.gov).

Dear Savvy Senior

How will the new healthcare bill affect seniors? My wife and I both receive Medicare benefits and would like to know what we can expect.

Concerned Senior

Dear Concerned,

There are several ways the new healthcare reform law will affect seniors on Medicare and those planning for their retirement years. Here are some of the key changes you should be aware of.

Drug Benefit Boost

If you're one of the 27 million U.S. seniors who has a Medicare (Part D) prescription drug plan, healthcare reform has just upgraded your coverage. Seniors that fall into the coverage gap known as the doughnut hole will get a $250 rebate to help pay for their medications this year, and a 50 percent discount on brand-name drugs next year. By 2020 the coverage gap will be eliminated. That means that seniors who now pay 100 percent of their drug costs once they're in the doughnut hole will pay 25 percent.

Currently, seniors fall into the doughnut hole once they hit their $2,830 annual limit. Then they have to pay $3,610 out-of-pocket for drugs before prescription coverage picks up again at $6,440.

Free Screenings

In addition to the prescription drug plan improvements, Medicare's preventive services will also be beefed-up under the new law. Currently, traditional Medicare covers a one-time "Welcome to Medicare" physical, but only to new beneficiaries within the first 12 months of enrollment. And, they pay 80 percent of most health screening costs with you footing the bill for the remaining 20 percent. But starting next year, Medicare beneficiaries can get annual wellness exams and preventive tests, like screenings for high blood pressure, diabetes and certain cancers, for free.

Dis-Advantaged

The news isn't so good for seniors who have a Medicare Advantage plan. These are plans run by private insurers and are an alternative to Original Medicare (Part A and Part B). Many of these plans offer extra benefits that Original Medicare does not provide like free eyeglasses, hearing aids and even gym memberships. These extra benefits, however, come at an extra cost. Studies have shown that Medicare Advantage plans cost the government 14 percent more on average than Original Medicare. That's why the new healthcare law will cut around $135 billion in subsidies over the next three-to-six years to the private insurers who offer these plans.

What all this means is that the 10 million seniors that have Medicare Advantage can expect their premiums or co-payments to increase, or their extra benefits to be reduced, or both, over the next few years.

Keep in mind that if you are enrolled in Medicare Advantage, you can switch to Original Medicare and join a prescription drug plan any time during the open enrollment period, which is now between Jan. 1 and Feb. 15. To help you compare your Medicare Advantage plan with other plans in your area or with Original Medicare, visit www.medicare.gov/mppff or call 800-633-4227. And to evaluate Part D prescription drug plans, see www.medicare.gov/mppfpf.

Long-Term Care

Another prevision in the healthcare reform law that older workers approaching retirement should know about is the Community Living Assistance Services and Supports (CLASS) Act, which is a voluntary long-term care insurance program available through employers. Starting next year, workers can set aside money from their paychecks to pay for services and supports that many will need in their old age or if they become disabled. This program is meant to help offset the high costs of home-based care, assisted-living facilities and nursing homes.

Those that pay into the program for at least five years will receive an average cash benefit of no less than $50 a day when they need it. The details of the program, including the eligibility requirements, premiums and a mechanism that allows people to purchase insurance if they're self-employed or if their employers decline to participate, are being ironed out.

Savvy Tip: For more information visit heal-threform.gov along with the Medicare Rights Center Web site at medicarerights.org.

Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of "The Savvy Senior" book.

As Floridians face the April 15 deadline for filing taxes, now is the time to think about building tax-free savings for college. With the Florida College Investment Plan, Florida's 529 college savings plan, investments are tax-exempt.

Leading financial advisors, including financial reporter at USA TODAY Matt Krantz, explain that 529 college savings plans have many advantages, a main one being that they "give your savings a 15% edge" over individual investments that incur capital gains and other taxes.

This year, instead of splurging with your tax refund, save it in a Florida College Investment Plan.

To open an account, anyone including parents, grandparents or friends, make an initial deposit of at least $250 or a $25 per month automatic bank withdrawal. Plan holders choose from any combination of five different investment options.

Once enrolled, investment plan holders can decide how much and how often to contribute. Plus, with the Florida College Investment Plan, friends and family are able to easily add in to help pay for college expenses - a lasting gift ideal for any special occasion.

"Every grandparent would like to see their grandchildren get a college education. You want the best for them, and one of the best things you can give them is a head start towards college," says Justine Kellner McGeehan of Tallahassee, with grandchildren in the Florida College Investment Plan.

Purchasers may use earnings to pay for qualified higher education expenses, including tuition, fees, room and board, books, computers, supplies and equipment. The plan can be used at most accredited public or private universities and colleges, including graduate or professional schools.

Neither the owner nor the beneficiary of a Florida College Investment Plan must be a Florida resident.

The Florida Prepaid College Board oversees the Florida College Investment Plan and the separate Florida Prepaid College Plans. Both are 529 plans authorized under the Federal Internal Revenue Code.

Sign up online for a Florida College Investment Plan at www.myfloridaprepaid.comm or call 1-800-552-GRAD (4723) to speak with a customer service representative.

About The Florida Prepaid College Plans:

The Florida Prepaid College Board, which operates and oversees the Florida Prepaid College Plans, is a State of Florida agency. The Florida Prepaid College Board is committed to helping Floridians save for future qualified higher education expenses by providing a cost effective, financially sound Prepaid College Plan and other college savings programs. The Florida Prepaid College Plan is the largest and most successful prepaid college plan in the nation. One out of 10 Florida children from newborns to high school students has a Florida Prepaid College Plan. Families are offered two ways to save for their children and grandchildren's college education: the Florida Prepaid College Plan and the Florida College Investment Plan. Created by the 1987 Legislature, the Florida Prepaid College Plan was first sold in 1988. It was designated as "The Stanley G. Tate Florida Prepaid College Program" in 2006 to honor its founding chairman. No taxpayer money is used to operate the Florida Prepaid College Plans.

NOTE:

The Florida College Investment Plan is not a prepaid plan. Investments in the plan are not insured or guaranteed, and you could lose all or a portion of your investment. Participation in the plan will be sold only by means of a Disclosure Statement and Participation Agreement. A copy of each will be sent upon request. Read them before investing. Nothing within this document should be construed as financial, investment, legal or tax advice. Consult your own advisors before investing. The Florida College Investment Plan can also be used to cover tuition, tuition differential fee, local fees and dormitory housing.