I gave a speech to more than 250 highly motivated K-12 teachers yesterday morning at the first ever National Educator Conference, presented by Jump$tart.  What a privilege to share the same stage as Sheila Bair (Chairperson of the FDIC) and Janet Bodnar (the editor of Kiplinger’s Personal Finance magazine).

During the Q & A after my presentation, a teacher from Ohio asked me what financial lessons I hoped my kids would learn at school.

“What a great question!” I explained.

Although I have no intention of moving to Ohio (Remember, I went to the University of Michigan, so I’d be welcomed in Ohio as well as the Yankees are in Boston.), I knew that my answer would be heard by teachers from nearly every state in the country.

I told her of my fortune in having a teacher go “off syllabus” for an hour when I was 19 years old and that in so doing he had changed my life forever, as well as the thousands I have subsequently shared his words with.

You: What could be so important and life-changing?

The miracle of compounding interest.  Let it change your life too.

I am heading down to Washington, D.C. today for the first ever personal financial planning national educators conference.  The wonderful non-profit, Jump$tart, has put together this conference.  Approximately 250 teachers of all grades from nearly every state will attend.

Along with Sheila Bair, Chairwoman of the FDIC and Janet Bodnar of Kiplinger’s Personal Finance, I am honored to be offering a general session seminar.  I am also very excited to meet some of these presumably very motivated teachers and to learn of the challenges they face everyday in trying to incorporate this incredibly critical education.

Next week, I’ll be back with a recap.  But since the conference runs all weekend long, feel free to pipe in below with any questions you have.

After several months (don’t ask) waiting in the winds, the new blog design has arrived.  Some highlights:

• Easier to read, with cleaner font choices and more obvious line breaks for links

• Two right nav’s makes it easier for you to find what you want quicker

• Same thing up top: twice as many links to category content

• My popular graduation speech is now in the proper (chronological) order for easy reading and sharing

• More polls, including the one to the right. Take a minute to vote, if you don’t mind.

• Rotating graphics (linked primarily to popular articles) in the right.

• Easier subscription methods by RSS or email.

• Still no advertising!

I welcome your feedback!

Numerous studies have demonstrated weak correlations between happiness and wealth. (The sole exception are the truly impoverished, who are most likely to report being unhappy.)  Still, once you are out of poverty, there is very little relationship between happiness and financial stature.

Before I had children, I learned the most from my parents, grandparents, and other mentors of my personal and professional life.  Nearly all were at least several years older than me.  Yet, since I had my first daughter in 2005, I have to come to appreciate just how much I can learn from both her and her sister (who was born nearly two years ago).

For example, did you realize:When you spend less, you get more value out of life or How Kids Save You Money?  Did you know that, while Money doesn’t fall from trees, leaves do or How a Swing Set Can Keep You in Balance?  These are some of the most important lessons in life.  Far less important is Why the government is subsidizing golf carts. Still, the latter is among my most popular posts of late and was featured in this week’s Carnival of Personal Finance. While reading through many of the carnival’s, I discovered Enemy of Debt’s Enjoy Frugal Entertainment Without Breaking The Bank, an article after my own heart.  The enemy provides a solid, though by no means exhaustive, list of family-oriented legitimately enjoyable activities available for little or no cost. It’s a good reminder of what’s really important.

In my own life, I continue to see this everyday from my two girls.  The older one wants to play Chutes and Ladders almost every night.  (In less than a year, I think we’ve amortized the cost of the game to under a dime per play – a rate that is sinking fast).  Better yet, she’s getting better at counting and we’ve created a bit of a ritual, even a memory that will stay with us for years to come.

My youngest one’s joy comes from even simpler pleasures.  While I was playing with her at the playground over the weekend on a vintage New England fall day, the wind suddenly picked up.  Leaves were blowing everywhere and her face was beeming as she felt the breeze upon her little body and could see little things flying through the air.  You could see she was experiencing a sensory overload but was thrilled by the moment.  A few seconds later the wind calmed down. Immediately, she looked at me and asked “More?”

It’s too bad that I don’t have the power to make wind.  On the other hand, I am glad no amount of money could change that – perhaps I would have been tempted.

Remember what really counts in life.  If you ever forget, spend time with a child or a senior citizen, who often have very different perspectives.  Recall this isn’t about being cheap. Rather, it’s about being fiscally responsible. Want more examples? Here are Five ways to be (or not to be) fiscally responsible.

Thoughts?

Within my post last week titled First time home buyer tax credit may actually expire, I maintained my steadfast belief that Congress and President Obama would not allow the credit to end.  Simply stated, I argued, the housing market is still so unstable that taking away stimulus was unlikely.  (Furthermore, it’s far easier for the government  to defend stimulating a market even if things take off than to defend passing on a stimulus package should things crash.)

Nonetheless, there was serious talk last week about letting the credit expire.

Just a few days later, the President has officially weighed in on the side of extending the credit.

Now my confidence level in the extension is at about 99%.

You: What will change as a result of the credit extension?

Nothing is certain given the ongoing negotations between Republicans and Democrats, particularly in the Senate.  Nontheless, here are the key provisions likley to be impacted:

Delayed Expiration Date

To qualify under today’s laws, you must close on your house by November 30, 2009.  The most likely outcome of the current legislation is a requirement that you are under contract by April 30, 2010 and that you close within 60 days.

Higher Income Limitations

Rather than phaseouts beginning at $75K and $150K (single and married, respectively), the new ranges would begin at $125K and $225

Maximum Home Price

Today, there is no limit on the price of the home purchased to qualify for the credit.  Congress is mulling over an $800,000 limitation going forward.

Possible Expansion to Existing Home Owners

Congress is considering allowing those who have lived in their homes five years or longer the ability to qualify for a smaller credit.  Expect significant complaining by those who purchased their homes in late 2005 who would just miss out if this provision passes.

None of the above should be considered final because the bill hasn’t passed yet and negotiations are ongoing.  They’re expecting to vote next week. Stay tuned, I’ll keep you posted.

What do you think of this possible legislation?

The post you are now reading is my 400th post at the Beyond Paycheck to Paycheck blog.

You: Is that a lot?

It is to me.

You: Do you like blogging?

Do you like vegetables?

You: Usually, but not always.

Blogging is like eating vegetables.  Blogging today is more enjoyable than unusual, however, since, it’s my first post with the new blog re-design.  What do you think?  Please let me know in the comments field.

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This week’s carnival of personal finance, hosted by Money Crashers, features many excellent reads including my recent post about how the First time home buyer tax credit may actually expire. Another great piece, written by Patrick at CashMoneyLife, discusses The Early Adopters Tax.  Patrick describes his decision to delay purchases, particularly those made by Apple (iPod, iPhone), and the hardware savings which result from his choices.  No doubt, early adopters, particularly those in technology, pay a steep price for buying first generation products, as manufacturer runs are short and the resulting costs passed on to consumers are high.

Doubt me?

Just think about how much your first laptop cost.  How many (significantly more powerful) laptops could buy today for the same amount of money? For me, the answer is about five.

Of course, delaying unnecessary purchases can save you money in an number of circumstances.  Several months ago, I brought my car to a free safety inspection and was told of a myriad of recommended repairs and services.  Nothing was super time sensitive but, given my intention to drive my car until it drops, it’s age (8 yrs), and current mileage (about 90K), routine maintenance is a good investment.  Nonetheless, I’ve been waiting for the right time to get the work done.  Yesterday, I received the best coupon by email I’ve ever received from the place I get most of my repairs done – 20% off so long as it’s done this week (they must have a slow period).  So I shuffled a few things around on my schedule and I’ll save a big chunk of money in the process.  Furthermore, the routine maintenance should delay the amount of time it will take before I have to, one day, swallow the pill and replace this car.  In the meantime, I’m doing everything I can keep the car in good shape at the lowest possible ownership cost.

What purchases have you delayed, but ultimately made, in which your waiting saved you some money?

Not so long ago, I wrote of some of the humorous parts of the tax code.   Recently, I became aware that the federal government is now subsidizing the purchase of golf carts and I don’t find that funny at all.

You: Really?  They’re subsidizing golf carts?

Yes.

You: How so?

Like any other subsidy, part of the cost is borne by the purchaser, while part of the cost is paid for by the government.

You: Which government?

Your government (if you live in the United States.)

You: Whose money is this?

Yours, of course.

You: Really?

Actually no.  Due to the country’s existing enormous debt, the money is more likely that of your children or grandchildren.

You: What if I don’t have any children yet?

Don’t worry.  If and when they’re eventually conceived, their debt will be waiting for them.

You: Seriously?

Seriously.

You: And part of this debt will be due to golf carts the country is currently purchasing for some private individuals?

Yes.

You: I don’t remember voting for a golf cart subsidy.

Are you in Congress?

You: And reading a personal finance blog? Learning about money from an unbiased source? Ha! Michael, you’re hysterical.

Good point. I didn’t think I had too many readers inside the capitol.  As such, you didn’t vote for the golf cart subsidy.

You: Well, then, who did?

Congress.

You: Seriously?

Yes, you seem a bit more incredulous today than normal.

You: Did you see your post’s headline?

Of course, I wrote it.

You: Now you know why I’m in shock.  So Congress voted to subsidize golf carts?

Yes, although not intentionally.

You: Wait -  so my government accidentally voted to subsidize golf carts?

Actually, yes.

You: How can a person, let alone an entire government, accidentally vote for something so, ah, I’m searching for the word . . . something so

Random?

You: I think I was going for something less kind to the voter’s intelligence.

And you’re sure you’re not in Congress?

You: Who knows?  If Congress can accidentally vote to subsidize golf carts maybe I can be in Congress and not know it.

I don’t even know how that’s possible, yet I sort of believe you.  So in a way, you’re starting to sound Congressional.

You: But I haven’t actually said anything yet.

That’s kind of my point.

You: What?

Forget it.

You: Good, because I wasn’t following you.

It’s that sort of honesty that will get you voted out of office.

You: This is so weird.

Like a golf cart subsidy.

You: Exactly, but how did it come to pass?

As reported in The Wall Street Journal, when Congress decided to stimulate the economy by providing a tax credit for the purchase of a high-mileage vehicle, it didn’t take long before those “in the know” started applying the credit to golf carts in their marketing.

You: But a golf cart isn’t a car!

I know that.

You: But?

For purposes of this credit, most golf carts are considered high mileage vehicles.

You: Seriously?

Seriously.

You: So what kind of subsidy are we talking about?

Between $4,200 and $5,500.

You: How much does a golf cart even cost?

Between $8,000 and $10,000.  Furthermore, some states also provide tax credits for such purchases.

You: So the government pays the bulk of the cost for a new golf cart?

Indeed.

You: Wow.

Wow.  Furthermore, there’s no limit to the number of golf carts you can buy and some enterprising folks have figured a way out that they can truthfully advertise, again, as reportd in The Wall Street Journal: ”

GET A FREE GOLF CART. Or make $2,000 doing absolutely nothing!”

[See the actual ad here.  Note, even though the WSJ didn't provide the actual link, their new ad indicates that they've had an overwhelming response.]

You: So why would the government do this?

Again, I don’t think they did it purposefully.

You: Why don’t they fix it?

Why don’t you fix it?

You: How?

Aren’t you in Congress?

You: Oh, that’s right, I might be. I’ll get right on that.

Go to the end of the hall, then up the stairs.  Ignore the lobbyist waiting outside your office.

You: Why?

Uh-oh.

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I’m still waiting.  So are my children. Are yours?

The first time home buyer tax credit is currently set to expire on November 30, 2009.  As the law currently stands, only homes purchases with a closing date before the end of November will qualify for the $8,000 credit.

I have said, numerous times, that I believe the credit will be extended.

You: Why? Who do you know?

I don’t know anybody with influence in Washington, but logic says the credit will be extended.

You: Explain this logic.

Many experts believe that the credit itself, combined with the aggressive actions of the Federal Reserve and Treasury Department (by effectively and dramatically lowering mortgage interest rates), has created an artifical bottom in the market.  Despite this, an incredible percentage of homeowners remain under water.

You: What exactly does “under water” mean?

That they owe more on their homes than their homes are worth.  Furthermore, foreclosures are at record highs and inventories are still high by historic standards.  While some areas of the country have clearly stabilized, others have not.

I have always thought that the government would be extremely averse to removing stimulus from the housing market until it was self-evident it could stand on its own.  The housing market does not appear capable of doing so today.

You: Why do you say so?

In my experience looking for a home in a market (southern New Hampshire) this year, a market most characterize as relatively stable, I have been very impressed by how little activity has taken place in the mid-market.

You: Mid-market?

Meaning homes priced beyond typical starter homes but for far less than anything considered luxury.  In other words, solidly middle class homes simply aren’t moving because buyers and sellers have very different opinions about what homes are currently worth.  As such, many very nice homes have been on the market for over a year.

That’s evidence that the market is not working normally.

For all of these reasons, I continue to expect the credit to be extended. But remember I leave in the real world, not Washington.  In our nation’s capitol, as Ilyce Glink reports, $8,000 Tax Credit Extension? White House Says Maybe.

Stay tuned.

Today, I’m featuring a quick compilation of links I’m sure you’ll find interesting:

• Bankrate.com recently published a story Should you pay debt before savings? It’s a good write-up of an important question for those living Beyond Paycheck to Paycheck. Plus, I was quoted for the piece.

• Social Security recently announced that there will be no increase in monthly benefits checked sent to retirees during 2010.  Until now, retirees have almost always had an annual increase for inflation.  But not for 2010. If you’re still working, it won’t affect your day-to-day life too much.  But it might make for an interesting conversation with the folks, especially about this special $250 payment the government is considering. Over at my About.com site, we’ve started a spirited conversation and poll about the $250 payment.  Check it out or join in.

• I was also quoted in Credit card APRs fall slightly, reversing recent rate-hike trend, an article at CreditCards.com.  Many of the changes to credit cards are beginning to affect even those who pay off their balances every month.  We’re starting to see increased annual fees, reductions in available credit and outright cancellations, even among “good” customers. Make sure you’re paying attention and using your cards appropriately.

I’m off to Las Vegas for a speaking engagement tomorrow – have a good week.

Identity theft is a serious business.

You: Are you in it?

No, I’m not in that business.  I’m just saying, far better for you to take the risk of identity theft seriously vs. very easily becoming a victim of a stolen identity crime.

You: What should I do differently?

Not sure. It depends largely on what you do and don’t due to today.  Fortunately, David from Money Under 30 recently published Seven Signs You’re At-Risk for Identity Theft.  In my opinion, it was the best article among many featured in this week’s Carnival of Personal Finance, a well hosted event by Fabulously Broke.  The carnival also included my article Learning From The Same Accident, where I discuss not only my (now full) recover from a recent concussion, but also a rehash of the financial and life lessons from Flight 1549, the flight that landed safely in the Hudson River earlier this year.

For more on identity theft, check out my post from earlier this summer, Avoiding Identity Theft.