Well, Oct. 28 came and went and you probably didn't even know that a new law about checks took effect.
Under Check 21, formerly called the Check Clearing for the 21st Century Act (see my Sept. 19 column, "A Check on Bad Banking Habits"), banks can process checks electronically. The financial institutions no longer have to physically ship them from one bank to another before they are debited from an account. This also means that checks may clear a lot faster than they have in the past.
However, many banking consumers may be asking, "What's the big deal?" In fact, one reader asked just that.
"Am I missing something?I have not received canceled checks from my bank or credit union for about 15 years," the woman e-mailed me. "Does anyone still receive checks? Does Check 21 apply to those of us who are not receiving checks?
The answers to both her questions is "yes."
But if you have more questions, read my Sept. 23 column, "Federal Check-Clearing Act Is Less Than Clear."
Baby Investments
After my column on spending less on newborn babies, a reader wrote to ask this: "My friends just had a girl baby. I heard that there is something like a mutual fund or education plan with a face value of $25 to $30. The amount will be invested and the kid can only redeem it when she reaches 18. Do you know what it is called and where I can get it?"
Well there are a couple of ways in which relatives or friends of parents can help support theeducation. There are what's called 529 Plans and the Coverdell Education Savings Account. But I should caution you that 529 Plans have come under some criticism for high fees.
To be sure, you need to do some research before investing for your baby or someone else's baby -- but do invest. In the end, when the little tyke is all grown up and ready for college, he or she will appreciate having some college money more than any toy you might have bought them.
Book Fair Reminder
I hope readers living in the Washington area will make room on their schedules to attend the National Press Club's 27th Annual Book Fair and Author's Night. Funds raised at the book fair benefit the Press Club's Eric Friedheim Library & News Information Center, a reference center for print and broadcast journalists.
The event will be held Nov. 17 from 6 to 8:30 p.m. in the club's ballroom at 14th and F streets NW. Admission is free for members of the National Press Club and $5 for non-members. Tickets are available at the National Press Club or Olsson's Books & Records outlets. For more information call 202/662-7564 or 202/662-7564, or send an e-mail to [EMAIL PROTECTED].
I'll be at the event signing copies of my book, 7 Money Mantras for a Richer Life: How to Live Well With the Money You Have (Random House). Here's an excerpt.
Penny Pinchers
It's said that time is the most valuable resource we have. One reader realized this after a job change took a significant amount of money out of her household budget. How could she continue to spend her special weekends with her daughter?
"When any of us, including my daughter, received an extra dollar or two we'd drop it in our 'Quality Time Weekend Bucket,'" wrote Stephanie Witherall-Fields of Silver Spring, Md. "The first time we did this, we came up with well over $300. My husband happily contributed with the change in the bottom of his pocket quite frequently. This year, we didn't have quite that much, but we took what we had and made a day of it -- ice cream cones, a movie rented from Blockbuster. These are the best times. Penny pinching can give you a lot more than you bargained for."
See, you don't need a lot of money to have a good time.
• Read Past Penny Pinching Tips
Editor's Note
washingtonpost.com failed to send Michelle Singletary's Personal Finance e-letter last week (Nov. 4). Our apologies for the oversight. Included in this e-letter are links to personal finance-related articles and columns that ran in The Washington Post over the past two weeks.
You are welcome to e-mail comments and questions to[EMAIL PROTECTED]. They may be used in a future column or newsletter with the writer's name unless otherwise requested.
