19-year-old has made a big mess!
Dear Dave,
I’m only 19 years old, and I’m in real trouble. I’ve been pretty rebellious for the last year, not listening to my parents and other dumb things, and now I’ve got $8,000 in debt thanks to writing several bad checks and running up bills on credit cards.
I also totaled my car and lost my job a couple of weeks ago, and I’m about to lose my apartment in a few days, too. A friend of mine said I could stay with her for a while, but I’m still really scared. My parents won’t help. They say I need to take care of this myself. Have you got any advice?
Stephanie
Dear Stephanie,
Sounds like you’re as close to rock bottom as a person can get. It’s a scary situation, but the fact that you’re looking for help and realize the way you’ve been living is stupid means you want to change - and that’s a good thing.
It sounds like you’re going to have get two or three jobs, and then find a really cheap little car that will get you around. The good news is that if you do this for maybe a year and a half, you’ll be able to pay off all that stupid tax you’ve accumulated. I’m not picking on you, Stephanie, because I’ve done stupid stuff, too – stupid with LOTS of zeros on the end. But when you do stupid things, you have to pay the consequences. It’s all part of being an adult.
I think you’ve also recognized that you left your integrity on the sidelines for way too long. Doing the right thing really needs to be a priority from this point on. The cool thing about the practical issues you mentioned – finding a permanent place to live, something to drive and paying off the debt – is that they will all get better now that YOU’VE made the decision to get better. That’s a promise!
You might want to think about finding a good church and having a talk with the pastor, too, Stephanie. Any caring minister would be honored to have the chance to pray with you as you turn your life back around in the right direction.
- Dave
How do you determine the value of old money?
Dear Dave,
How would you determine the value of an old coin? I uncovered several as part of my father’s estate and was wondering if there was any value to them other than simple face value.
Diane
Dear Diane,
Some old coins can be very valuable. It usually depends on how rare they are and other factors, like if a mistake was made on the coin when it was minted.
I’d first check with a coin dealer and get an appraisal or an offer on the coins. These guys deal with old money and collectibles for a living. If you have a computer, you might also want to check online for references to the coins you’re talking about. You could probably find several sites that will give the market value of old coins.
Just remember, hobbies and collectibles are fun but they rarely keep up with other types of investments, like mutual funds or real estate.
- Dave
Deductible expenses for volunteering?
Dear Dave,
I work as a volunteer for a couple of church conferences each year, and there are travel expenses for which I am not reimbursed. Can I claim these, as well as food as deductions on my income tax?
Joy
Dear Joy,
Yes, you can claim a deduction for charitable mileage. Absolutely.
Ordinarily, food is non-deductible. But if you buy supplies to be used at the conference or give them to the organization itself, then they are deductible, as well.
Make sure you keep a written log of the miles you drive both to and from the conferences, Joy. You’ll want to have a record of this and any supplies you buy for these groups when tax time rolls around.
- Dave