Seven Tips for Managing Your Money in Challenging Times by Carrie Schwab Pomerantz on Creators.com

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To say that the current economic times are challenging might seem like an understatement. With daily market swings and global financial uncertainty, people everywhere are concerned about protecting and preserving their money. While this uncertainty can make all of us feel a little lost as to what to do next, it's more important than ever to be proactive about your personal finances and manage your money with care.

For just under a year now, the President's Advisory Council on Financial Literacy has been putting their heads together to come up with policies and programs that promote financial literacy for all Americans. Their goal — and mine — is to provide substantive guidance and resources that can help people make smart financial choices during both good times and bad.

To that end, the Council is offering the following tips with links to useful information that can help you understand your own financial situation and take steps to protect and improve it.

1. Understand how your bank or credit union account is insured. The Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA) insures all deposits at insured banks and credit unions up to at least $250,000*. To check whether your financial institution is insured visit www2.fdic.gov/idasp/main_bankfind.asp or NCUA.gov/ShareInsurance/index.htm.

2. Understand how your investments are protected. Brokerage firms are required to be members of the Securities Investor Protection Corporation (SIPC), which insures customer securities accounts up to $500,000, including $100,000 in cash claims, when a brokerage firm fails. To learn more about these protections, visit www.sec.gov/answers/investoralert.htm or go to www.sipc.org.

3. Always keep lines of communication open with your mortgage lender. As soon as you know you may have difficulty meeting your mortgage or home equity loan payments, contact a counselor to work out a payment plan at HOPENOW.com or by calling 888-995-HOPE (4673).

4. Protect your credit score. Only put on your credit cards what you can afford to pay back. For other hints on improving your credit score, visit controlyourcredit.gov.

Also, to protect against identity theft, get a free copy of your credit report at annualcreditreport.com.

5. Make sure you have a rainy day fund. Keep an emergency fund worth three to six months of your monthly expenses in an insured account. If you don't have an emergency fund, try to start one. Visit the budget calculators on www.controlyourcredit.gov/html/debt_management.html.

6. Don't try to cut costs by canceling your insurance. Keep up with your insurance payments, and you'll keep in place your protection against medical costs or major loss of personal property, like your home or car. Learn more in the Life Events section on MyMoney.gov.

7. If it sounds too good to be true, it probably is. Watch out for scams trying to take advantage of all of the recent changes in our nation's financial markets. Educate yourself at FTC.gov.

You may have heard some of these tips before, but now's the time to really pay attention and take action. Just as the government is trying to do its part to help the economy recover on a national level, and the Presidential Council is working to provide meaningful education and support for all Americans, you also need to do your part to help yourself and your family weather this financial storm.

Financial literacy has never been more important. So I encourage you to get as much information as you can. Make use of the resources suggested by the Council. And be sure to talk openly and honestly with your family about how you can all work together to turn these challenging times into an opportunity to increase your financial knowledge — and your future financial security.

To learn more about your money, visit MyMoney.gov. For more information on the President's Advisory Council on Financial Literacy, visit the U.S. Treasury Department's Office of Financial Education web site at Treas.gov/ofe.

*On Oct. 3, 2008, FDIC deposit insurance and NCUA share insurance temporarily increased from $100,000 to $250,000 per depositor through Dec. 31, 2009. Deposits that had an insurance limit of $100,000 prior to Oct. 3, 2008, including CDs with a maturity date after Dec. 31, 2009, will revert to the $100,000 limit after Dec. 31, 2009.

Carrie Schwab Pomerantz is Chief Strategist, Consumer Education, Charles Schwab & Co., Inc., Member SIPC. You can e-mail Carrie at askcarrie@schwab.com. To find out more about Carrie Schwab Pomerantz and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.