Help for homeless college students

A handful of schools, aid organizations and advocates from across the country are taking steps to help homeless college students.

NEW YORK (CNNMoney)

Getting into college itself can be a major challenge for homeless teens. And even if they're determined, resourceful or lucky enough to receive the financial aid or scholarship money that makes attending college possible, new struggles often arise.

While they may live in dorms for the majority of the school year, some students have nowhere to go during breaks and are forced to pay fees to stay on campus -- which can be difficult or impossible to afford. Some of these students are too embarrassed to ask for help, while others are turned down when they ask to remain on campus, leading them to sleep outside, on friends' sofas or in shelters.

The issue has come into the spotlight recently: New legislation seeking to assist homeless college students was introduced last month, and a petition started by a student urging her college to allow homeless students to stay on campus during breaks has garnered more than 100,000 signatures.

After our recent article ran about this issue, CNNMoney received more than 60 emails from readers sharing their own stories of being homeless at college or asking how they can help.

Related: Homeless college students seek shelter during breaks

Here are some of the efforts being made.

Colleges and students step up: Kennesaw State in Georgia created a CARE Center this May, which helps students with needs like jobs, shelter and food. The school also hosts Homelessness Awareness Week, where students sleep outside for a night and can attend a full-day conference to learn more about the issue.

"Homelessness is affecting college students across the nation; yet it remains an underserved and/or unrecognized population," Kennesaw said in a statement. "KSU aspires to be a leader for social justice and change by eradicating homelessness on its campus."

After a survey of students two years ago revealed that nearly 7% had experienced or were currently experiencing homelessness while enrolled, the Community College of Denver decided to take action. It designated a housing expert in its student life department who helps homeless students with housing needs, and has established a food pantry and an emergency fund for those in need.

Related: Pay $2,000 to be homeless

Meanwhile, West Virginia University launched a food bank in 2010 called "the Rack," for homeless or financially struggling students.

"[It] went from a wire shelf with canned goods to a full-blown food bank with six freezers, as well as meat distribution days and much more," said alumni Ben Dotson, who helped start the program. "My best friend could barely cover the costs of college and if it wasn't for the Rack and that his fast food job allowed him to take home extra food I do not think he would have been able to make it."

Aquinas College, in Grand Rapids, Mich., is currently looking into ways it can help homeless students who don't have anywhere to go during breaks. This became a priority after Jessie McCormick, a homeless senior, launched a Change.org petition urging the school to do more to help homeless students like her.

Some are more entrepreneurial in their quest to help.

Aris Nance, a 23-year-old student at Dakota State University in Madison, S.D., who was homeless himself until a couple months ago, just launched a nonprofit called Sheo (Someone Helps Everyone) that creates survival kits for the homeless.

The kits include basics like a toothbrush, first-aid supplies, a list of emergency contacts and clean t-shirts. Nance wants to partner with schools and homeless organizations to provide them for free. But first he needs the funding to create the kits -- so far he has only done a few.

"I just gave two kits to [college students] I know who are going to be stuck on campus during Christmas break," said Nance.

Related: Student homelessness hits record high

How you can help: The National Association for the Education of Homeless Children and Youth offers a scholarship program that helps students with college costs and housing. It also has a higher education initiative that is urging colleges to change their policies to assist homeless students. Anyone who wants to support these efforts can donate money directly to NAEHCY.

Various organizations, like the Los Angeles Youth Network, also help runaway and homeless young adults apply for college and secure scholarships and financial aid.

The National Law Center on Homelessness & Poverty, meanwhile, has a program called Project Learn that helps students apply for college. It also ensures that homeless children are granted their legal rights, like receiving free transportation to and from school and getting free school meals. Donations can be made directly to the program here.

If you want to help out locally, you can contact your state homeless education coordinator. Find the coordinator closest to you here.

Related: North Dakota sees surge in homeless population

Some communities also have "Host Home" projects where you can open up your home to a student after you go through a background check. Runaway & Homeless Youth Act shelters and housing programs, which are scattered around the country, also provide free shelter for college students and need donations. You can look for a program near you by using this map.

Advocates recommend that you urge your local Congress member to support recent legislation introduced by Senator Patty Murray of Washington. Murray's bill would require colleges to secure housing for students during breaks, provide a point of contact for homeless students and mandate schools to ask questions about homelessness in college applications so they can help them access financial aid.

First Published: December 31, 2013: 4:24 AM ET

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Stocks: Ready to close out a record-setting year

Click on the image to see the latest premarket data.

NEW YORK (CNNMoney)

U.S. stock futures were relatively flat ahead of the opening bell -- with the Dow Jones industrial average hovering near the all-time high it set Monday.

Over the course of December, the main U.S. stock market indexes have risen by 2% to 3%. This caps off a record-setting year that saw the Nasdaq surge nearly 40% to hit a 13-year high, while the Dow and S&P 500 both hit record highs.

Related: Fear & Greed Index

There are a few economic data releases that could influence market sentiment in the day ahead.

The latest edition of the Case-Shiller 20-city home price index will be released at 9:00 a.m. ET Tuesday. At 10:00, the Conference Board will release its monthly consumer confidence index.

Related: Insanely pricey New Year's Eve parties

European markets were inching ahead in morning trading. The exchanges in London and Paris are set for an early close, while the stock exchange in Frankfurt was closed.

Asian markets ended with mixed results and markets in Tokyo were closed. Japan's benchmark Nikkei index rounded out 2013 with its biggest annual rise in more than 40 years.

First Published: December 31, 2013: 5:26 AM ET

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67-year-old Italian restaurant closes its doors

On New Year's Eve, Mike and Cathie Merlino will close Merlino's Belvedere after 67 years in business.

NEW YORK (CNNMoney)

So after nearly 70 years, Merlino's Belvedere will serve dinner for the last time on New Year's Eve.

Merlino announced the restaurant's closing on Dec. 2, which, ironically, led to a huge surge in business. Since then, the restaurant has produced over 400 gallons of its red sauce and over 700 pounds of sausage -- three times the normal amount.

But even with the bump, this year's gross revenue of $750,000 is still about 25% lower than in 2012, Merlino said. (In 2005, it was even higher at $1.3 million.)

His restaurant is a well-known destination for tourists and diners all along Colorado's Front Range, who drive hours for its award-winning homemade red sauce, pasta and steaks cured on site. It's also a favorite gathering spot for locals in this small town of 17,000. But it's been a daily battle to stay open for the last two years, in the wake of a series of natural disasters and a struggling economy.

Related: 5 of the oldest businesses in America

"In 2008-2009, there were rising gas prices on top of a weak economy," said Mike Bandera, president of the Canon City Chamber of Commerce. "We had a significant downturn in tourist traffic in the rafting businesses, and in restaurants and shops."

Sam Cruz, the restaurant's longtime kitchen manager, grill cook and handyman, has seen that reflected at Merlino's.

"In the late '80s, we had people waiting in line to get in every night," he said. "We were doing probably 150 to 200 dinners a night."

But until Merlino announced the closing, Cruz said the restaurant was doing just 20 to 30 dinners a night.

The economy of Canon City and surrounding Fremont County is built on tourism and the prison industry -- the county is home to 13 prisons, including the so-called Supermax. The county is one of the state's poorest, with a per capita income of around $17,400 and an unemployment rate of 8.7%, nearly 2% higher than Colorado as a whole.

The economic downturn is obvious in Canon City's largely shuttered Main St., which dead-ends into the Colorado Territorial Correctional Facility, the oldest operational prison in the state. Jobs are hard to come by, and many that do exist are plagued by static wages, says Merlino, a former president of the town's Chamber of Commerce.

Related: Is the economy as good as it looks?

"When you lose a lot of the local businesses like we have, people start migrating to Wal-Mart. It's a pretty dismal picture," he said.

At a time when chains like Chili's, Applebee's and the Olive Garden -- which all have locations within 40 miles -- have multiplied across the country, family-owned restaurants like Merlino's have either closed or barely managed to hold on.

"This is emblematic of what happens to a lot of family businesses, not just restaurants," said Giovanni Coratolo, vice-president of small business policy for the U.S. Chamber of Commerce. "If you're already in a recession, if a natural disaster or other unforeseen event happens, all of a sudden, you can't recover."

The Royal Gorge fire burned 3,220 acres over six days, including most of the Royal Gorge Park, and brought tourism to a halt. Bandera estimated that local businesses lost 25% to 35% of their expected yearly revenue. Merlino's, which saw a 40% drop in volume this past summer, was just one of the casualties.

Built in 1946 by his grandfather Ubaldo "Baldy" Merlino, a miner who emigrated in 1903 from Italy, the restaurant takes its name from Mount Belvedere in Italy, where Merlino's business partner and brother-in-law fought in WWII.

Related: The myth of the American Dream

"We have customers who have literally grown up with us," said Cathie Merlino, who manages the restaurant with her husband and acts as hostess. "Every birthday, graduation, marriage, they come here. Whoever it is, they become part of our family."

Over the years, the restaurant has also served a number of famous faces, including John Wayne, Charles Bronson, Nat King Cole and Jane Fonda when they were on location nearby.

The restaurant has been totally booked since Merlino made his announcement. Long-time customers are even flying in from out of state for one last meal. On a recent night, the 21 employees scrambled to keep up with the huge surge.

"On the morning after we announced we were closing, we had 89 voicemail messages requesting reservations," Merlino said.

First Published: December 31, 2013: 7:04 AM ET

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4 money resolutions to make now

NEW YORK (CNNMoney)

More than half of respondents in a recent Fidelity Investments survey said they typically consider making financial resolutions, up from 35% of those surveyed in 2009.

Of those keeping their finances in mind, 54% vowed to save more -- making it the top resolution, trailed by paying off debt (24%) and spending less (19%).

It's always a good idea to try to save more and set up a budget you can stick to. But here are some money resolutions that are especially important for 2014.

Related: Your #moneyresolutions for 2014

1. Don't be too risky with your investments

2013 has been a fantastic year for the stock market and that likely means that your nest egg is invested more heavily in stocks than it was at the beginning of the year.

As a result, now is the time to rebalance your investment portfolio to make sure that you have a proper allocation of stocks and bonds for your age and risk tolerance, said Judith Ward, a senior financial planner at T. Rowe Price.

One rule of thumb: subtract your age from 120 to determine how much of your investments should be in stocks. For example, a 50-year-old should have up to 70% in stocks -- or $105,000 of a $150,000 portfolio.

Rebalancing is easy to do. In your 401(k), for example, simply sell some of your stock investments and invest that cash in bonds. And since you don't pay taxes until retirement, the sale won't come with any extra tax headaches.

"It's counter intuitive to sell the class that's doing well, but if you let that ride and it goes down, it's a harder fall," said Ward.

Related: Are you saving enough for retirement?

2. Stop checking your statements so often

Once you've figured out that perfect investment mix, you should resolve to leave it alone.

Your nest egg will be built up over decades of savings, so short-term market fluctuations will be overshadowed by long-term gains, said Jonathan Clements, director of financial education for Citi Personal Wealth Management.

"We buy these mutual funds we plan to hold for years and years. But then we start looking at our accounts every day," he said. "If you're really saving for your retirement that's 30 years away, why does it matter?"

3. Take advantage of low interest rates

Hoping to buy a home or lower your monthly debt payments? It's a good idea to act soon.

The Federal Reserve is beginning to pull back on its monthly bond-buying program. Mortgage rates have already risen in anticipation of the Fed's pull-back, so rates are expected to rise only gradually.

Still, the 3.5% mortgages offered as recently as last summer aren't likely to resurface, so if you're thinking of buying a home, act soon before rates rise further. A 1% increase in 30-year fixed mortgage rates costs around $60 more a month for every $100,000 you borrow.

It's also a good time to closely reexamine your debt, from car loans to home equity loans, for refinancing opportunities, said Lynn Ballou, a California-based financial planner. Variable interest rates, such as those you might have on a car loan or private student loan, are inexpensive now since they are tied to the prime rate, which has been at 3.25% since the end of 2008.

But those loans will get more expensive in coming years when rates finally return to normal as the economy strengthens. At the beginning of 2008, the prime rate was more than 6%.

So if you plan to take more than a few years to pay off a variable-rate loan, shop around to see if you can lock in a fixed rate. "If it's more than a couple of years out, this is a good time to see what your options are," Ballou said.

Related: What do you most want for your career in 2014?

4. Get your taxes in order

October's government shutdown is delaying the coming tax season by 10 days, which means that early bird filers may have to wait a bit longer to receive their tax refunds.

If you're anxious to get your refund, make sure to file online, which will be processed more quickly than filings made by snail mail, said Gary DuBoff, a New York-based accountant and managing director at CBIZ MHM, a financial services firm.

There are also a variety of popular tax breaks expiring or shrinking at the end of 2013, so you'll want to prepare for how that could affect future tax bills.

First Published: December 30, 2013: 3:19 AM ET

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Stocks: Losing steam as 2013 winds down

Click chart for in-depth premarket data.

NEW YORK (CNNMoney)

Little economic or corporate news is scheduled for the day and U.S. stock futures were drifting ahead of the opening bell.

Typically this time of year sees light trading volumes as many investors and traders take time off work.

The Dow Jones industrial average and the S&P 500 were little changed Friday, ending a lengthy streak of gains. The Nasdaq fell slightly. Each of these indexes has risen more than 25% in 2013.

Shares in Alcoa (AA, Fortune 500) were rising ahead of the open amid reports that Ford will reveal in January that it will start using military grade Alcoa metal in its best-selling F-150 pickups.

Related: Fear & Greed Index

On the international front, European markets were relatively flat in morning trading. Asian markets ended with mixed results.

Japan's Nikkei closed the day on a high note, rising 0.7%. The benchmark index has surged more than 50% since the start of 2013 as government policies helped boost investor sentiment.

First Published: December 30, 2013: 5:02 AM ET

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China local government debt hits $3 trillion

China's local debt levels have risen dramatically in recent years.

HONG KONG (CNNMoney)

China's National Audit Office said that local government obligations hit 17.9 trillion yuan ($3 trillion) by the end of June -- a dramatic increase from the 10.7 trillion yuan figure reported in 2010.

The audit office said that debt levels are still controllable, echoing the statements of top Communist Party officials in recent months.

For now, China's local government debt remains lower than that of many other advanced economies, such as the U.S., U.K., France, Japan, Germany and Spain.

But what is scary is the pace at which debt has accumulated. China's increase in local government debt is part of a larger issue -- a credit explosion as regional governments borrowed to finance major infrastructure projects to combat a slowing economy.

Related story: China pledges greater role for markets

Mushrooming credit is cause for concern as it has often been followed by financial crises in other emerging markets. In China, it has stoked fears that capital has been misallocated, and has further contributed to a run-up in corporate and government debt.

While the Chinese government has repeatedly said debt levels are manageable, resolving the problem has become a major policy goal.

Related story: Twitter needs an Asian strategy

Overall growth is slowing in China. The country is estimated to post 7.6% GDP for 2013, just above the government's official target of 7.5%, state media reported last week. That compares with 7.8% last year, 9.3% in 2011 and 10.4% in 2010.

Reducing reliance on credit will remain one of China's greatest challenges as it seeks to find a sustainable growth path. The government was recently tested on this issue, with the central bank forced to pump nearly $50 billion into the financial system to prevent a second damaging cash crunch this year.

Some analysts criticized the central bank for waiting too long, arguing that an earlier move could have been more effective in countering the seasonal shortage of cash. Others said the central bank's apparent reluctance to inject emergency cash is the start of a more prudent policy approach as it's one way of reining in excessive lending.

-- CNN's CY Xu and Naomi Ng contributed reporting.

First Published: December 30, 2013: 6:21 AM ET

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Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

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Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

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Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: 7 who are losing benefits

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

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Divvying up Mom's stuff after she's gone

You know the relationship with your sibling is more important than who owns Mom's watch. But when you see her wearing it...

(Money Magazine)

While you can name beneficiaries for such objects in a will, many people simply direct that goods be divided equally among their children. That leaves the executor, often one of the kids, with the Solomonic task of meting out heirlooms. Add in grief, resentment, and siblings' knowledge of how to push one another's buttons, and you can imagine the emotional tinderbox that results.

"Families can fight tooth and nail over every item in the house," says Toronto lawyer Les Kotzer, co-author of Where There's an Inheritance.

Use this talk to avoid a family feud.

The Ground Rules

Give yourselves time to grieve. Rather than laying claims right after the funeral, when emotions are at a peak, schedule a time a few months later when everyone can gather in person, says Marlene Stum, lead author of the book and online resource Who Gets Grandma's Yellow Pie Plate?

Leave spouses at home. "The more people chiming in, the more emotions can escalate," says West Chester, Ohio, financial planner Marc Henn.

When You're Face to Face...

1. Opening gambit: "Let's agree that this won't tear us apart."

Why it works: You know your relationship with your brother is more important than ownership of Dad's watch -- but once you see the timepiece on his wrist and realize it'll go to his sons, not yours, you may temporarily forget. "So acknowledge upfront that you may say something hurtful," says Peter McClellan, author of Inheritance Tug-of-War Stories, "and agree to forgive each other."

Related: Keep your kids from blowing their inheritance

2. Name your musts: "Why don't we all say what items are on our wish lists?"

Why it works: "It's important to figure out what's most meaningful to whom," says Stum. Asking this question (you may even want to have a household inventory handy) helps you identify which items are subject to contention. Plus, it can help you sidestep battles: Your brother may stand down when he hears how much -- and why -- your sister wants the china.

3. Decide on a process: "Sounds like it might make sense for us to take turns picking items?"

Why it works: The key to emerging with family relations intact is choosing a selection process everyone thinks is fair, says Stum. For those items with little financial value but lots of claimants, you might draw straws to establish a picking order. Heirs get to select one item at a time, and once the last sibling has picked, let him have another turn, going back up the hierarchy in reverse, says Henn.

4. Strive for parity: "I'd really like Mom's wedding ring. How about if I pay you for it?"

Why it works: Items of real monetary value, like antiques and jewelry, need special treatment. Start with an appraisal, says Julie Hall, author of The Boomer Burden: Dealing With Your Parents' Lifetime Accumulation of Stuff. Whoever wants the item can pay the other heirs for their shares via a reduced inheritance or cash. If no one wants it, sell the item and split the proceeds.

Related: How to discuss money with an ex

5. Allow both of you to lose: "Since we can't agree on who gets the clock, maybe we should sell it."

Why it works: Things that are impossible to split should be sold, says Hall. This way, both siblings feel the same sacrifice. As Hall says, "Better to lose a family heirloom than to lose your relationship with a brother or sister."

First Published: December 27, 2013: 4:08 PM ET

04.32 | 0 komentar | Read More

Online shipping will never be 100% on time

NEW YORK (CNNMoney)

Consumers were outraged when UPS (UPS, Fortune 500) failed to deliver packages by Christmas this year, but some analysts say expectations were too high and promises too lofty.

Building up infrastructure to meet a level of service that's demanded only a few days each year doesn't make sense.

"It's cheaper to provide remedies than a 100% service level," said James Stock, a professor at the University of South Florida who studies marketing and logistics.

Amazon (AMZN, Fortune 500) is refunding shipping charges and giving $20 gift cards for those who didn't receive their packages on time. A spokeswoman would not comment on whether or not Amazon would be reimbursed from UPS for those costs. UPS did not respond to calls from CNNMoney.

Related story: UPS backlog means missing Christmas gifts; Amazon responds

Delivering every gift on time would be very expensive and, according to Stock, not worthwhile for these public companies. A carrier like UPS would have to buy or rent more trucks, more airplanes and build new shipping hubs.

And that money would be spent to meet demands made on a just a few key shopping days up when retailers must handle 10 times more orders than normal, said Eric Best, the CEO of Mercent.

Why was this year different?

More people shop online and it's easy to do so on-the-go. Mercent, which collects data from 550 retailers, expects a quarter of all e-commerce purchases in 2013 to be made on mobile devices, up from just 6% in 2011 and 16% last year.

Plus, consumers now expect two-day and even same-day delivery from online retailers.

Amazon, eBay (EBAY, Fortune 500) and Google (GOOG, Fortune 500), the three leading online retailers, offer similar shipping guarantees. And at the last minute, Amazon extended its free shipping deadline to Dec. 22, Best said.

These factors pushed online retail sales to jump 63% on Dec. 23 when compared to the same day last year, according to Mercent data.

Even though forecasts expected a jump in online sales this year, the industry has not experienced this peak two days before Christmas in the past, Best said.

"They may have seen late signs that more people were buying online, but you can't ramp up equipment that fast," Stock said.

Sucharita Mulpura, an analyst at Forrester, expects retailers to push back their shipping deadlines, giving carriers more time to get packages delivered to homes in time for Christmas morning, rather than expand facilities.

Carriers may ramp up if demand increases on a more regular basis, but for now consumers may just have to plan to shop online a little bit earlier.

First Published: December 27, 2013: 3:55 PM ET

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Unemployment benefits for 1.3 million expire Saturday

Michelle Marshall is about to lose her unemployment benefits.

NEW YORK (CNNMoney)

Marshall, 56, has been out of work for a year, since she lost an administrative assistant job that paid her $44,000 per year.

She started collecting $624 each week in New Jersey unemployment benefits, but the state benefits ran out after 26 weeks. When federal benefits kicked in, she collected $521.

But Marshall will stop getting these checks next week.

That's because Congress failed to extend the recession-era program when it passed a budget deal last week.

Related: My jobless benefits will end

Federal benefits kick in after state benefits run out, and range between 14 to 47 weeks, depending on the state where a person lives.

According to government figures, the average weekly benefit check is $300.

Even the cut from the larger state check to the federal benefits was hard for Marshall. She had to consolidate her $12,000 worth of credit card debt and enroll in a mortgage assistance program.

When the benefits stop entirely, she doesn't know what she'll do.

"I imagine I will go apply for food stamps," she said. "Depending how long this goes on, I might lose my car, which will impact my ability to get a job. I won't be able to drive to interviews."

The program was first signed into law in June 2008 by President George W. Bush, when the unemployment rate was 5.6% and the average duration of jobless insurance was 17.1 weeks.

The unemployment rate climbed to more than 10% at the height of the Great Recession in 2009, and the government extended the federal benefits for the long-term unemployed.

However, thanks to a weak recovery, those benefits have been either extended or expanded 11 times, most recently on Jan. 2 .

Most states, however, have cut back unemployment benefits, as the labor market has improved.

During negotiations over the budget deal earlier this month, House Speaker John Boehner suggested he was open to an extension if the White House came up with a plan. But the provision didn't make it into the deal that President Obama signed last week.

The White House issued a statement on Friday saying senators have put forward bipartisan legislation to extend emergency unemployment insurance for three months, and Senate Majority Leader Harry Reid will bring it to vote as soon as they are back from recess.

Related: White House: Extend jobless benefits

The Obama administration has said the end of extended benefits can have a major impact on the economy.

The White House Council of Economic Advisers and Department of Labor issued a joint report earlier this month touting how jobless benefits buoy the economy, while keeping 2.5 million workers out of poverty each year.

The White House pointed out in a separate report that the expiration of benefits could reduce U.S. GDP by 0.2 to 0.4 percentage point in 2014, according to the Congressional Budget Office and a J.P. Morgan Chase economist.

The Congressional Budget Office said the cost to extend the federal benefits by another year is about $26 billion.

But Republicans have said in memos that the program has already cost $252 billion in the five years through July.

Democrats intend to make this a big issue. House Minority Leader Nancy Pelosi said Friday that the first item on Congress' agenda in 2014 must be an extension of unemployment insurance, and Senator Reid said last week he would push for an extension "after the new year." Ads by a liberal group blasting the Republicans for inaction are running this week on cable TV networks, including CNN.

Those who are set to lose benefits, like Marshall, haven't lost hope, but they are urging Congress to do something.

"Give us a little more time to try and make some plans," she said. "I can't give up. I have no one to take care of me."

-- CNNMoney's Annalyn Kurtz and Jennifer Liberto, and CNN's Brian Koenig contributed reporting to this story.

First Published: December 27, 2013: 12:54 PM ET

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Many Americans feel economy isn't improving

NEW YORK (CNNMoney)

A new CNN/ORC poll released Friday showed people were pessimistic that the economy was improving. Nearly 70% said the economy is generally in poor shape, and only 32% rated it good.

Two-thirds of respondents said most of the economic news they've heard recently was bad news. More rural than urban dwellers said the economy was in poor shape.

And just over half expected the economy to remain in poor shape a year from now.

Related: Is the economy as good as it looks?

By some metrics, the economy has moved ahead this year. The stock market, for example, has surged -- the Nasdaq is up nearly 40% since January. Unemployment is at a five-year low point. Auto sales are at a seven-year high. Gas prices have dropped. And the housing sector, which dragged the U.S. into recession five years ago, is rebounding.

The Federal Reserve sees signs of strength, too. In December the central bank pulled back slightly on the stimulus that has boosted investor confidence this year.

But behind those numbers are the long-term unemployed, the under-employed and those who have dropped out of -- or never even entered -- the workforce. They're not sharing in the surging stock market, and many are about to lose jobless benefits.

Those people aren't buying big-ticket items like furniture or appliances, and some were cutting back on essentials. Thirty-six percent said they were cutting back spending on food or medicine, up from 31% in late 2008, the year the housing market collapsed.

The poll includes 1,035 adults surveyed by telephone between Dec. 16 and 19. It had a sampling error of plus or minus three points.

First Published: December 27, 2013: 6:01 AM ET

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Burglaries jump during the holidays

NEW YORK (CNNMoney)

In several states, according to the FBI, December is the peak month for burglaries as folks leave homes unattended during the holidays.

In California, for example, there were 21,900 burglaries in December 2011 - the latest statistics available - 18% more than the average month.

Nationally, burglaries peak during the summer vacations, though December is close behind.

In many places, the week following Christmas has the heaviest burglary caseload.

Philadelphians, for example, reported 194 residential burglaries the week starting December 24, 2012, compared with an average of 143 for the same period during the following five months.

The post-Christmas burglary jump also holds true for small towns.

"Every year, we see a pretty big uptick in burglaries," said Ben Hayden, community relations officer for the Coralville (Iowa) Police Department.

Related: Most dangerous U.S. cities

A few factors seem most responsible.

Many families take off, leaving homes empty -- except for all the gifts. And winter storms can make it obvious that nobody's home.

"Criminals drive through neighborhoods looking for places to burglarize," said Hayden. "If there's newly fallen snow that hasn't been shoveled, they figure the home is empty."

He added that many townspeople put their beautifully decorated Christmas trees -- and all the gift packages stacked beneath them -- right at the front of the living room.

"Burglars can walk around and window-shop," said Hayden.

The criminals are already aware that homes are filled with loot this time of year -- jewelry, televisions, smart phones and computers. Sometimes homeowners advertise what they got for Christmas by putting out for trash collection the empty boxes their gifts came in, according to Gary Holliday, deputy chief of the Knoxville, Tenn., police department.

"Criminals find out what you got for Christmas," he said.

Related: 4 things to do after your credit card has been hacked

Daylight offers no deterrent: 65% of these crimes occurred between 6 AM and 6 PM in 2011, according to the FBI.

Police solve only about 13% of reported burglaries and do not recover all the goods even when they do nab the criminals. Losses average $1,675 per break-in.

To minimize risk, police advise homeowners to cut up boxes and stuff them into black garbage bags before putting them out for collection.

And, when you're on vacation, don't make it obvious that you're away. Have someone clear your walk, get your mail and turn lights on and off at different times.

And, be discreet about divulging plans on social media. Not everyone in the world has to know that you're going to be in Cabo San Lucas for a New Year's celebration.

"Social media is a great thing for people but it's a great thing for criminals too," said Holliday. "Criminals stake out the Internet."

First Published: December 27, 2013: 4:09 AM ET

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Stocks: Santa rally may run out of puff

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures were weak, with the S&P 500 down 0.1%, pointing to a mostly softer start to trade as the Dow eked out nearly imperceptible gains.

On Thursday, the Dow Jones industrial average closed at a record high for the 50th time this year. The S&P 500 also ended at a record high, and the tech-heavy Nasdaq marked a new 13-year high.

Dubbed the "Santa Claus rally," stocks often surge in the week between Christmas and New Year.

But Joe Tatusko, chief investment officer for Westport Resources, a financial planning firm in Connecticut, said that futures were slipping on Friday because many individuals are selling stocks to reduce their tax bills.

"It's a darn good time to do some tax loss selling," he said.

Related: Fear & Greed Index gets greedy

Markets have charted big gains this year. The Dow and S&P 500 are both up more than 20%, while the Nasdaq has soared over 30%.

The Dow is on track for its best year since 2003 and the S&P 500 on pace for its strongest year since 1997.

Several factors have helped spur gains this year including ongoing economic stimulus from the Federal Reserve, increased confidence in the economy and solid corporate earnings growth.

Related: Best year ever for stock funds

Earlier this month the Fed announced that it will modestly reduce its bond buying program in January. But many experts believe the bull market will continue for a sixth year in 2014, albeit at a more modest pace.

European markets rose in morning trading, led by a 0.7% rise on Germany's DAX. London's FTSE gained 0.5% and France's CAC 40 put on 0.6%.

Asian markets ended the week on a positive note. China's Shanghai Composite rose 1.4% and Hong Kong's Hang Seng Index added 0.3%.

First Published: December 27, 2013: 4:53 AM ET

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Price of stamps to go up 3 cents

The price of a stamp will go up 3 cents in January.

NEW YORK (CNNMoney)

A panel overseeing the U.S. Postal Service approved a three-cent hike from the current price of 46 cents. It will take effect on January 26.

That includes a one-cent increase -- to keep pace with inflation -- approved by the Postal Regulatory Commission last month. At the time, the cash-strapped Postal Service had sought the three-cent bump.

Related: USPS to rent mail vans

The additional two cents are intended to be temporary and to recoup losses the Postal Service suffered during the recession, the commission said.

It said the Postal Service must regularly report how much money the increase brings in and "develop a plan to phase out the rates once they have produced the revenue justified by their request."

Related: Postal Service delivers Amazon packages on Sunday

But the agency is in deep trouble with the shift away from mail and to the Internet. It reported a $5 billion loss in the most recent fiscal year, and a $16 billion loss in 2012. Those losses include expensive contributions to retiree health care required by Congress.

The Postal Service has considered paring back mail delivery and expanding the more profitable package delivery to bring in more revenue.

Related: Postal Service would love to ship you beer

Customers who purchase forever stamps before the new price takes effect will continue to pay 46 cents.

--CNNMoney's Jen Liberto contributed to this report.

First Published: December 24, 2013: 5:49 PM ET

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China debt grows to $4.6 trillion

China's local governments, like Anhui province, have borrowed too much in recent years, pushing debt up to $3.3 trillion.

HONG KONG (CNNMoney)

The world's second-largest economy has been struggling to arrest local government debt -- the result of easy credit and round after round of stimulus.

While it's hard to gauge the scale of the problem, a recent government think tank report may shed some light. The Chinese Academy of Social Sciences estimates local government debt reached 19.94 trillion yuan ($3.3 trillion) by the end of 2012. Local government debt accounts for most of total government debt, which is expected to have hit 27.7 trillion yuan ($4.56 trillion), or roughly 53% GDP.

The report puts local debt at double what it was three years ago, when China last conducted a nationwide debt audit. Results of the most recent government debt audit, launched in July, haven't been released.

Related story: Alarm bells ring over China's debt problem

For now, China's local government debt remains lower than that of many other advanced economies, such as the U.S., U.K., France, Japan, Germany and Spain. But what is scary is the pace at which debt has accumulated. China's increase in local government debt is part of a larger issue -- a credit explosion as regional governments borrowed to finance major infrastructure projects to combat a slowing economy.

Mushrooming credit is cause for concern as it has often been followed by financial crises in other emerging markets. In China, it has stoked fears that capital has been misallocated, and has further contributed to a run-up in corporate and government debt.

While the Chinese government has repeatedly said debt levels are manageable, resolving the problem is on its radar. Societe Generale economist Wei Yao said Beijing recently identified handling debt as a major policy goal.

At an economic meeting in December, the government "kept the prudent monetary policy stance for 2014 and set debt risk management as one of key policy tasks for the first time," Yao said.

"Given this, we do not expect China's domestic credit environment to improve anytime soon and as a result growth deceleration will probably resume."

Related story: China's bad debt breaks Hong Kong IPO logjam

Overall growth is slowing. China is estimated to post 7.6% GDP for 2013, just above the government's official target of 7.5%, state media reported. That compares with 7.8% last year, 9.3% in 2011 and 10.4% in 2010.

Reducing reliance on credit will remain one of China's greatest challenges as it seeks to find a sustainable growth path. The government was recently tested on this issue, with the central bank forced to pump nearly $50 billion into the financial system to prevent a second damaging cash crunch this year -- at the last minute. By then, China's benchmark index, the Shanghai Composite, had already tumbled for nine consecutive days.

Some analysts criticized the central bank for acting late; an earlier move could have been more effective in countering the seasonal shortage of cash. Others said the central bank's apparent reluctance to inject emergency cash is the start of a more prudent policy approach as it's one way of reining in excessive lending.

First Published: December 26, 2013: 5:25 AM ET

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Stocks: U.S. futures tilt higher Thursday

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures tilted higher early Thursday, pointing to a firm start when trading resumes after the Christmas holiday break. The Dow Jones industrial average added 0.4%, and the S&P 500 rose 0.5%.

Both indexes struck fresh all-time highs and the Nasdaq marked a new 13-year high, when markets last traded on Tuesday. The Dow hit its 49th record close this year.

On Thursday, investors returning from holiday will be watching initial job claims at 8:30 a.m. ET.

Related: Fear & Greed Index gets greedy again

Markets have certainly made big moves so far this year. The Dow and S&P 500 are both up more than 20%, while the Nasdaq has soared over 30%.

The broad rally puts the Dow on track for its best year since 2003 and the S&P 500 on pace for its best year since 1997.

This year's gains have been driven by ongoing economic stimulus from the Federal Reserve, increased confidence in the economy, solid corporate earnings growth, and more individual investors entering the stock market.

Related: China's $50 billion move to avert cash crunch

The Fed announced last week that it will modestly reduce its bond buying program in January. But many experts believe the bull market, which began in early 2009, will continue for a sixth year in 2014, albeit at a more modest pace.

Many European and Asian markets were closed for Boxing Day. Japan's Nikkei gained 1%, while China's benchmark index, the Shanghai Composite, dropped 1.6% on Thursday.

First Published: December 26, 2013: 7:21 AM ET

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Target credit card hack: The latest

NEW YORK (CNNMoney)

The discount retailer acknowledged on late last week that the hack began on Black Friday and stretched more than two weeks to December 15.

Here's what we know:

-- The breach: Malware on store point-of-sale systems was involved in the security breach. The company is cooperating with federal authorities, including the Secret Service and Department of Justice, and is withholding additional details at the request of law enforcement.

-- Where did it happen: The hack was limited customers shopping in U.S. and Canadian Target (TGT, Fortune 500) stores with credit and debit cards. Online purchases were not involved.

-- What got stolen: Hackers stole customer names, credit or debit card numbers, expiration dates and card security codes, Target said. PIN numbers, other customer information like Social Security numbers, and employee records were not compromised.

-- Target customers: The company has notified "millions" of affected customers for whom Target has email addresses. CEO Gregg Steinhafel said "the cause of this issue has been addressed and you can shop with confidence at Target."

-- Banks: Target also notified credit and debit card issuers, many of which said they were monitoring customer accounts for fraudulent activity. Chase initially set low daily withdrawal and spending limits on its cards, though it adjusted those limits late Monday.

-- Lawsuits: At least two dozen federal class action lawsuits have been filed in a handful of states alleging the retailer was negligent and did not adequately protect customer privacy.

-- State AGs: Target said its legal team held a conference call with most states' attorneys general on Monday afternoon.

-- More fallout: Target has hired a private firm to review its information security and two U.S. senators called for consumer protection agencies to investigate.

-- What you should do: Consumer watchdogs say customers should check their credit card statements, including for small purchases that could indicate fraudsters are verifying an account is still active. Customers should also contact their banks to request a replacement card -- if one isn't already on the way -- and change their PIN.

-- How to contact Target: Customers concerned about the breach could call Target, and customer service teams would be available on Christmas, Snyder said. The company said additional information would be available at corporate.target.com, by phone at 1-800-440-0680, and on Twitter @Target.

First Published: December 24, 2013: 2:58 PM ET

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Price of stamps to go up 3 cents

The price of a stamp will go up 3 cents in January.

NEW YORK (CNNMoney)

A panel overseeing the U.S. Postal Service approved a three-cent hike from the current price of 46 cents. It will take effect on January 26.

That includes a one-cent increase -- to keep pace with inflation -- approved by the Postal Regulatory Commission last month. At the time, the cash-strapped Postal Service had sought the three-cent bump.

Related: USPS to rent mail vans

The additional two cents are intended to be temporary and to recoup losses the Postal Service suffered during the recession, the commission said.

It said the Postal Service must regularly report how much money the increase brings in and "develop a plan to phase out the rates once they have produced the revenue justified by their request."

Related: Postal Service delivers Amazon packages on Sunday

But the agency is in deep trouble with the shift away from mail and to the Internet. It reported a $5 billion loss in the most recent fiscal year, and a $16 billion loss in 2012. Those losses include expensive contributions to retiree health care required by Congress.

The Postal Service has considered paring back mail delivery and expanding the more profitable package delivery to bring in more revenue.

Related: Postal Service would love to ship you beer

Customers who purchase forever stamps before the new price takes effect will continue to pay 46 cents.

--CNNMoney's Jen Liberto contributed to this report.

First Published: December 24, 2013: 5:49 PM ET

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U.S. airlines want to stay cell phone free

You won't have to worry about sitting next to this guy on a U.S. flight.

NEW YORK (CNNMoney)

Apparently, airlines feel the same way.

The Federal Communications Commission could soon allow inflight cell phone use, but U.S. airlines aren't eager change their own rules - or equipment - to enable such calls.

The five largest U.S. airlines, which account for about 90% of the nation's air travel, all say their current plans do not include allowing for calls, even though they will look at the rules once they are passed.

"A clear majority of customers who responded to a 2012 survey said they felt the ability to make voice calls on board would detract from -- not enhance -- their experience," said Richard Anderson, CEO of Delta Air Lines (DAL, Fortune 500) last week.

"Delta employees, particularly our in-flight crews, have told us definitively that they are not in favor of voice calls on board."

It's not necessarily only customer opinion that's the behind the airlines' reluctance to allow the calls. It's cost.

Related: In-flight phone calls would cost you

Cell phones may not work that well at cruising altitudes, and would require airlines to install expensive equipment, that would add hundreds of pounds of extra weight to each aircraft, said airline consultant Michael Boyd.

This wouldn't sit well in an industry where trimming costs and weight is a priority.

"Airlines aren't going to spend tens of thousands of dollars to install equipment that is just going to annoy customers," said Boyd.

Even some members of the federal agency considering the rule change aren't crazy about the idea.

"I get it. I don't want the person in the seat next to me yapping at 35,000 feet any more than anyone else," said FCC Chairman Tom Wheeler at a meeting on Dec. 12. But he said the FCC is charged with considering the technology behind the communications rules, not social convention.

Also, the Department of Transportation and Congress are both considering rules to keep the ban in place.

Related: Relaxing gadget rules on European flights

Three major U.S. airlines - United Continental, (UAL, Fortune 500) Southwest Airlines (LUV, Fortune 500) and JetBlue (JBLU, Fortune 500) say they're planning to keep bans on calls in place.

"We always leave the door open to reevaluate should there be a seismic shift in public opinion. Can you imagine that happening?" said a Southwest spokesman.

Only American Airlines (AAL)appears willing to consider it. The airline said in a statement that it recognizes this is an important issue for customers and will keep them in mind if rules change.

Some European carriers have the equipment on planes that allow for cell phone calls. Virgin Atlantic, for instance, allows up to six people per flight to use their cell phones at a time. The service is turned off when the planes are approaching the United States to comply with U.S. law.

"Passengers have responded well to the service and we find that the majority of people use it to send a brief text," said spokeswoman Olivia Gall.

First Published: December 24, 2013: 5:34 AM ET

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Colleges now tying president pay to graduation, hiring rates

These days part of the annual bonus John O'Donnell, president of Massachusetts Bay Community College, receives is tied to graduation rates.

NEW YORK (CNNMoney)

And like a small but growing number of his counterparts around the country, O'Donnell has a new incentive to meet these goals: What he earns partly depends on it.

"College presidents need to be accountable," said O'Donnell, whose board of trustees recommended that, on top of his $211,150 a year base pay, he get the relatively modest maximum incentive bonus of $7,390 to reward good performance.

Taking a page from the corporate playbook, college boards like Massachusetts Bay's are beginning to tie merit raises to how well presidents meet performance targets.

Related: More private college presidents earning over $1 million

"Institutions can't afford not to have competent people in these jobs," said Stephen Pollack, a partner at consulting firm Mercer, who specializes in nonprofit organizations, including higher education.

Historically, presidential evaluations have been almost a formality, and raises often rubber-stamped, said Patrick Callan, president of the National Center for Public Policy and Higher Education.

The process appears to be undertaken "just to justify extravagant salaries, or is way too focused on fund raising," he said. In other cases, "it's like they put the presidents on trial," and every constituency -- faculty, donors, students -- is invited to weigh in, said Callan. "That's just a killer. It creates presidents who won't take risks."

The idea of tying executive compensation to specific performance goals has been drifting slowly into higher education from the corporate world. Universities and colleges are increasingly under the same kinds of pressure from parents and politicians that CEOs are from shareholders.

About a third of presidents of private colleges and universities are now eligible for so-called variable pay, or pay for performance, according to Yaffe & Co., an executive compensation consulting firm. Of those presidents, 64% received their maximum possible incentive bonuses last year, the agency said, which came to a median of $34,000 each.

Public universities are jumping on the presidential performance compensation train, too.

Related: The other reason grads are drowning in debt

This month, for the first time, the heads of the nine universities of the University of Texas System were given bonuses of up to 10% of their salaries based on their cost savings, growth in research grants, fund raising, graduation rates, and other measures.

And former Indiana Governor Mitch Daniels, who took over in January as president of Purdue University, is paid $420,000 a year with the potential to earn an additional $126,000 tied to such things as lowering students' debt.

Not all of these arrangements have been met with praise. Some critics complain that presidents should not be paid extra for doing things that seem to fall under their job descriptions -- especially with money tight.

There was grumbling when the Arizona Board of Regents voted in September to give $40,000 in incentive pay to each of the presidents of Arizona State University and the University of Arizona, who make base salaries of $475,000 apiece, plus more than $250,000 a year in other benefits.

Each is due for another $40,000 in incentive bonuses next year and up to $180,000 the year after that if they can trim the cost of employee health care, attract more students and research funding, and lower the number of dropouts, among other things.

In Massachusetts, O'Donnell and the presidents of the state's other 14 community colleges and nine state universities will be given bonuses of up to 3.5% based on their ability to raise graduation rates, close achievement gaps, and align educational programs with the needs of local employers.

Related: Community college grads out-earning bachelor's degree holders

"We're being very clear about the educational outcomes we're trying to produce for the state, with a growing emphasis on performance," said the state's Commissioner of Higher Education, Richard Freeland.

As to whether merit raises of only 3.5% of presidents' salaries are enough to drive change, Freeland said he wished the proportion was higher. "It's nowhere near as meaningful as I would like it to be," he said.

It's too early to judge how much of an impact performance-based raises will have at colleges, but they have proven effective in the corporate world, said Pollack.

"To do it well, you have to be willing to ... communicate with people at the beginning of a year about expectations and goals," he said. "If you're willing to do that and then hold them accountable, it works."

First Published: December 24, 2013: 5:51 AM ET

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Stocks: Not a creature was stirring...

Click on chart to track premarkets

NEW YORK (CNNMoney)

Stock markets in New York will close at 1 p.m. ET Tuesday, and markets will remain closed Wednesday for Christmas Day.

U.S. stock futures made just the slightest gains ahead of the opening bell, indicating Tuesday's truncated trading session could be uneventful.

Trading volumes are typically low in late December with the holidays around the corner, but investors may still need to keep an eye out for economic reports. The U.S. Census Bureau is releasing its latest report on durable goods orders at 8:30 a.m. and will also release data on new home sales for November at 10 a.m.

Related: Fear & Greed Index gets greedy again

While Tuesday is expected to be a tame trading day, markets have certainly made big moves so far this year, with the Dow Jones industrial average and S&P 500 both climbing 0.5% to new records Monday, while the Nasdaq jumped more than 1% to a fresh 13-year high.

Investors have been feeling increasingly confident about the state of the U.S. economy, helping the main indexes surge by well over 20% throughout 2013. The Dow has pushed ahead by 24% this year, the S&P has advanced by 28% and the Nasdaq has rallied by 37%.

Related: China is looking to avert another cash crunch

In European markets, the major indexes were moving higher throughout the morning. Trading in London and Paris is set to close early. Markets in Frankfurt were closed.

In Asia, markets were mixed.

First Published: December 24, 2013: 5:07 AM ET

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Stocks: No holding back the Santa rally

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures were looking buoyant ahead of Monday's opening bell, indicating markets could hit another record high before the holiday break.

The S&P 500, Dow Jones industrial average and Nasdaq were all moving higher, with the Nasdaq looking like it could pop up by nearly 1% when markets open.

The Nasdaq is getting a boost from Apple (AAPL, Fortune 500), with shares in the iPhone maker surging by 3% in pre-market trading after the company announced Sunday it had inked an important sales deal in China.

Also, Facebook (FB, Fortune 500) kicks off its first day of trading as part of the S&P 500, making it easier for investors to own shares.

Related: Apple inks China Mobile deal

Investors may also be feeling increasingly confident after the head of the International Monetary Fund, Christine Lagarde, said her organization was much more upbeat about the U.S. economic recovery.

"We see a lot more certainty for 2014," Lagarde said in an interview Sunday on NBC. She said the IMF would raise its forecast for the U.S. economy, in part because Congress had struck a deal on the budget and the Federal Reserve had managed its decision to begin reducing monetary stimulus effectively.

Related: Fear & Greed Index stuck in neutral

Further gains Monday would build upon a strong performance on Friday, when markets hit fresh record highs.

Looking to the day ahead, the U.S. Commerce Department will release its monthly reports on personal income and spending at 8:30 a.m. ET. At 9:55, the University of Michigan and Thomson Reuters will release data on U.S. consumer sentiment.

There are no big corporate earnings announcements expected Monday.

Related: Countdown to Obamacare deadlines

On international markets, China has been grabbing the headlines as investors continue to worry about a cash crunch. However, the Chinese central bank said it had pumped liquidity into the system, leading Asian stock markets to notch up modest gains Monday.

The main European markets were moving higher in morning trading.

The Tokyo Stock Exchange was closed for a holiday.

First Published: December 23, 2013: 5:25 AM ET

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China's $50 billion move to avert cash crunch

Chinese markets slid last week on talk of a cash crunch at some of the country's banks.

HONG KONG (CNNMoney)

Some banks in the world's second largest economy have been struggling to secure funds as the end of the year approaches, a time when they usually need extra cash to meet minimum deposit requirements, and as companies seek more money for operations.

Investors were spooked late last week as indicators of tight liquidity surged to heights last seen in June, when Chinese markets were roiled by a major credit crunch. In response, the People's Bank of China said that it had pushed more than 300 billion yuan ($49.4 billion) to select banks in an effort to avoid bank defaults.

It took the unusual step of announcing the move on Weibo, China's equivalent of Twitter.

Related story: China pledges greater role for markets

"The fragile nature of [China's] financial system remains a challenge for the central bank and poses a threat to the economy," said Nomura's China economist Zhiwei Zhang. Although the central bank's emergency action will likely prevent a repeat of June's credit crunch, it is still possible that some banks will be unable to make payments to each other next year, he said.

When and whether China's central bank intervenes at times like this is an example of the many challenges the country faces as it shifts toward a more sustainable growth model after decades of rapid expansion fueled by cheap credit and export-led growth.

Some analysts have criticized the central bank for acting late; an earlier move could have been more effective in countering the seasonal shortage of cash.

Related story: Alarm bells ring over China's debt problem

Others say the central bank's apparent reluctance to inject emergency cash is one way of reining in excessive lending. By keeping money tight, and thereby pushing interbank borrowing rates up, Beijing is forcing banks to curb risky loans and adjust to a more market-oriented environment.

It's also a way to flush out reckless shadow banking in China -- largely unregulated lending often to small and mid-sized companies, organizations typically ignored by the big state-owned banks..

Either way, investors may finally be warming to the central bank's actions. The Shanghai Composite rose 0.24% Monday, breaking a nine-day slide. The index lost out last week as global markets cheered the U.S. central bank's decision to pare back stimulus, a decision seen as a vote of confidence in the health of the global economy.

First Published: December 23, 2013: 4:43 AM ET

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Imagine the Fed tweeting the taper

HONG KONG (CNNMoney)

China's central bank has only been microblogging for three weeks, and it's already taking to social media to make major policy announcements.

Facing a cash crunch for the second time this year, the People's Bank of China posted a series of messages on Weibo -- the country's answer to Twitter -- last week, saying it was providing almost $50 billion to select banks to help them make payments owed to each other.

The first post, on Thursday, said the central bank was injecting additional liquidity into the system but gave no details. Investors had to wait until a second Weibo post late Friday night to find out how much cash was being provided.

But the damage had already been done. Interbank lending rates soared, and the Shanghai Composite fell for a ninth consecutive session.

Related story: China's $50 billion move to avert cash crunch

That might be comparable to the Fed using Twitter (TWTR) to make last week's announcement -- in 130 characters or less -- that it was dialing back its bond-buying program.

"Fed tapers by $10 billion starting in January" would have captured the essentials in a tweet, but it was the lengthy explanatory statement and news conference with Ben Bernanke that gave investors the guidance they needed.

Such policy decisions in China are typically splashed on the pages of official state media, and the decision to use Weibo appears to have caught many by surprise.

It's hard to say when investors realized the magnitude of the online announcement by China's central bank, which only launched its microblog account on Dec. 1.

Still, it seems the market is catching up fast. Just three weeks and 33 posts in, China's central bank already counts 396,205 followers. (The Fed falls short, clocking in with 110,635 followers on Twitter.)

Related story: Twitter needs an Asian strategy

The social media savvy reaches beyond China's central bank into other areas of financial activity. The China Securities Regulatory Commission, for example, has already built up a following of 1.4 million on Weibo after joining on Oct. 15.

The central bank cash infusion to the banking system came after investors were spooked as indicators of tight liquidity surged to heights last seen in June, when Chinese markets were roiled by a major credit crunch.

First Published: December 23, 2013: 7:24 AM ET

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Target offers 10% discount after credit card hack

NEW YORK (CNNMoney)

"We recognize this has been confusing and disruptive during an already busy holiday season," Target CEO Gregg Steinhafel said in a statement Friday. "Our guests' trust is our top priority at Target and we are committed to making this right."

The company also provided details Friday about the extent of the hack and the information that could have been compromised.

The nation's No. 2 general merchandise retailer said cards used at its brick-and-mortar stores between Nov. 27 and Dec. 15 of this year may have been impacted.

Target (TGT, Fortune 500) said there is no indication that any debit card PIN numbers were compromised. The retailer also claimed it doesn't appear that the three- or four-digit security code visible on the face of credit cards were breached. That means that the debit and credit cards that were compromised cannot be used to withdraw cash from an ATM or to shop online.

Related: 4 things to do after your card has been hacked

But lawyer Robert Ahdoot, part of a legal team in California that has filed a lawsuit seeking class action status on behalf of Target customers, said he had spoken to shoppers who claimed thieves had used their debit card information to withdraw money from ATMs.

The lawsuit alleges negligence on the part of the retailer, and also says Target failed to promptly notify victims of the hack.

"Target has an obligation to provide adequate security for the financial information they collect," Ahdoot said. He recommended that consumers who suspect that their cards may have been compromised change their PIN numbers as a precaution.

Target spokeswoman Molly Snyder said the retailer "typically doesn't comment on pending litigation."

Target said it believes customers' birth dates and social security numbers weren't compromised. The retailer said it gave Visa, MasterCard (MA, Fortune 500), Discover (DFS, Fortune 500) and American Express (AXP, Fortune 500) the card numbers of those who may have been impacted, and that these companies will monitor the cards for fraud.

As a precaution, J.P. Morgan Chase & Co. said it was temporarily limiting ATM withdrawals to $100 a day and purchases to $300 a day for Chase customers in the U.S. whose debit cards are at risk, the company said in a letter to affected account holders.

Meanwhile, Target is also monitoring its own card, the REDcard, for potential unauthorized activity.

Steinhafel said the affected customers "will not be held financially responsible for any credit and debit card fraud."

"[T]o provide guests with extra assurance, we will be offering free credit monitoring services," Steinhafel said. "We will be in touch with those impacted by this issue soon on how and where to access the service."

To help answer questions about the incident, Target has set up a hotline for customers. Shoppers have been reporting long hold times, so Target said it will beef up its staffing.

Target didn't specify how its systems were hacked. But judging by the scope of the breach and the kind of information that criminals obtained, security experts say hackers apparently targeted the retailer's point-of-sale system. That means they either slipped malware into the terminals where customers swipe their credit cards, or they collected customer data while it was en route from Target to its credit card processors.

The retailer said it had notified authorities and financial institutions immediately after it was made aware of the unauthorized access, and had hired a forensics team to investigate how the breach may have occurred. The issue that allowed the breach has been identified and resolved, Snyder said.

First Published: December 20, 2013: 3:26 PM ET

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Online retailer Overstock to accept Bitcoin

Overstock.com CEO Patrick Byrne is endorsing Bitcoin. His company is the first major U.S. retailer to do so.

NEW YORK (CNNMoney)

Byrne said customers will be able to use the virtual currency to make purchases on Overstock.com (OSTK), which sells everything from digital cameras and bed sheets to patio furniture and even cars. The company is expected to have total revenue of $1.3 billion for 2013, according to FactSet Research.

"We think there's going to be a market in Bitcoin, and we want to get in front of it," said Byrne. "We want to be the first major e-tailer that accepts them." Byrne first made comments about Overstock.com accepting Bitcoin in an interview with Bitcoin blog newsBTC and later in the Financial Times.

Overstock plans to begin accepting Bitcoin near the end of the second quarter of 2014. Byrne said the move stems partly from his background in the Austrian School of economics, which is associated with the Libertarian party in the United States.

"We're the guys who like gold," he said. "We think the monetary base should not be something that a government can create with a stroke of a pen."

Unlike traditional currencies, Bitcoin is not backed by any government authority or central bank. It exists only on the internet and is "mined" by powerful computers that solve complex math puzzles.

Byrne said he is concerned about the possibility of "bad currency wars" in the future. He said the U.S. dollar is already being undermined by the Federal Reserve's easy money policies and by overspending by politicians in Washington.

Related: What is Bitcoin?

Like gold, Byrne said Bitcoin should hold its value better than the dollar because it is "mathematically constrained" and cannot be manipulated by government authorities.

There are currently 12.1 million bitcoins in circulation, according to blockchain.info. The total number of bitcoins is capped at 21 million.

Critics say Bitcoin is at best a fad and at worst a haven for criminals looking to buy and sell illegal goods anonymously. But supporters argue that Bitcoin is a more democratic alternative to traditional currencies.

Former U.S. Congressman Ron Paul, an outspoken Libertarian from Texas, has said that Bitcoin could be the dollar's "destroyer" if it goes mainstream.

Bitcoin has exploded in value this year, rising from about $13 in January to more than $1,200 earlier this month. On Friday, bitcoins were trading at about $739 on the Mt. Gox exchange.

The currency is prone to wild swings and experts say Bitcoin will remain volatile as the technology evolves.

Byrne acknowledged that the volatility is a problem and that Overstock will need to "continually convert Bitcoins into dollars" to avoid losing money. Eventually, he said there will be a derivatives market that will allow companies to hedge their exposure to Bitcoin.

Related: Bitcoin worth almost as much as gold

In some respects, it's not a surprise that Overstock would move to accept Bitcoin. The company is unconventional. It is known for quirky ads and for shortening its name online to O.co.

Byrne also has a penchant for writing long, rambling shareholder letters in earnings reports. And he famously appeared on "60 Minutes" to complain about short sellers who were betting against his stock. He even told CNNMoney in 2003 that "When opportunities come along where we can knee the shorts in the groin, that's always good for fun and amusement. That's just icing on the cake."

But Overstock is not the first business to embrace Bitcoin.

British entrepreneur Richard Branson made a splash in November when he announced that his that his commercial space travel venture, Virgin Galactic, will allow customers to pay for their flights with Bitcoin.

China's leading search engine Baidu (BIDU) also accepts Bitcoin for certain services. And a car dealer in California recently accepted Bitcoin as payment for a Tesla (TSLA) Model S, valued at $100,000.

Bitcoin has been a particularly popular investment in China, but regulators have been cracking down. This week, China's largest bitcoin exchange, BTC China, abruptly stopped accepting new deposits. That came after China's central bank issued a warning and announced new rules for financial institutions dealing in bitcoins earlier this month.

European Union officials have also warned about the risks of Bitcoin and may consider regulating the currency.

First Published: December 20, 2013: 2:10 PM ET

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3 new arrests in Silk Road case

NEW YORK (CNNMoney)

An indictment unsealed this week in New York accuses the trio of helping to operate Silk Road, a website shut down in October that offered an anonymous place to buy drugs, weapons and other illicit products. During its two-and-a-half years in operation, prosecutors say the site handled hundreds of millions of dollars' worth of unlawful transactions for over one hundred thousand buyers.

Silk Road's alleged owner -- Ross Ulbricht, also allegedly known by his online handle "Dread Pirate Roberts" -- is currently in custody and facing charges related to money laundering and drug trafficking.

Related: Arrests in U.K. follow Silk Road bust

The indictment claims that Ulbricht paid two of the new defendants -- Andrew Michael Jones, 24, and Gary Davis, 25 -- to work as administrators on the site, while the third, 40-year-old Peter Philip Nash, allegedly worked as the head moderator for the Silk Road discussion forums. They allegedly received salaries between $50,000 and $75,000 annually.

The three men are charged with conspiracy to commit money laundering, computer hacking and narcotics trafficking. Contact information for their attorneys was not immediately available.

Jones was arrested Thursday in Virginia and appeared in court today, a spokeswoman for the U.S. Attorney's Office in Manhattan said. Davis was arrested Thursday in Ireland, while Nash was arrested Thursday in Australia.

First Published: December 20, 2013: 1:31 PM ET

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Online retailer Overstock to accept Bitcoin

Overstock.com CEO Patrick Byrne is endorsing Bitcoin. His company is the first major U.S. retailer to do so.

NEW YORK (CNNMoney)

Byrne said customers will be able to use the virtual currency to make purchases on Overstock.com (OSTK), which sells everything from digital cameras and bed sheets to patio furniture and even cars. The company is expected to have total revenue of $1.3 billion for 2013, according to FactSet Research.

"We think there's going to be a market in Bitcoin, and we want to get in front of it," said Byrne. "We want to be the first major e-tailer that accepts them." Byrne first made comments about Overstock.com accepting Bitcoin in an interview with Bitcoin blog newsBTC and later in the Financial Times.

Overstock plans to begin accepting Bitcoin near the end of the second quarter of 2014. Byrne said the move stems partly from his background in the Austrian School of economics, which is associated with the Libertarian party in the United States.

"We're the guys who like gold," he said. "We think the monetary base should not be something that a government can create with a stroke of a pen."

Unlike traditional currencies, Bitcoin is not backed by any government authority or central bank. It exists only on the internet and is "mined" by powerful computers that solve complex math puzzles.

Byrne said he is concerned about the possibility of "bad currency wars" in the future. He said the U.S. dollar is already being undermined by the Federal Reserve's easy money policies and by overspending by politicians in Washington.

Related: What is Bitcoin?

Like gold, Byrne said Bitcoin should hold its value better than the dollar because it is "mathematically constrained" and cannot be manipulated by government authorities.

There are currently 12.1 million bitcoins in circulation, according to blockchain.info. The total number of bitcoins is capped at 21 million.

Critics say Bitcoin is at best a fad and at worst a haven for criminals looking to buy and sell illegal goods anonymously. But supporters argue that Bitcoin is a more democratic alternative to traditional currencies.

Former U.S. Congressman Ron Paul, an outspoken Libertarian from Texas, has said that Bitcoin could be the dollar's "destroyer" if it goes mainstream.

Bitcoin has exploded in value this year, rising from about $13 in January to more than $1,200 earlier this month. On Friday, bitcoins were trading at about $739 on the Mt. Gox exchange.

The currency is prone to wild swings and experts say Bitcoin will remain volatile as the technology evolves.

Byrne acknowledged that the volatility is a problem and that Overstock will need to "continually convert Bitcoins into dollars" to avoid losing money. Eventually, he said there will be a derivatives market that will allow companies to hedge their exposure to Bitcoin.

Related: Bitcoin worth almost as much as gold

In some respects, it's not a surprise that Overstock would move to accept Bitcoin. The company is unconventional. It is known for quirky ads and for shortening its name online to O.co.

Byrne also has a penchant for writing long, rambling shareholder letters in earnings reports. And he famously appeared on "60 Minutes" to complain about short sellers who were betting against his stock. He even told CNNMoney in 2003 that "When opportunities come along where we can knee the shorts in the groin, that's always good for fun and amusement. That's just icing on the cake."

But Overstock is not the first business to embrace Bitcoin.

British entrepreneur Richard Branson made a splash in November when he announced that his that his commercial space travel venture, Virgin Galactic, will allow customers to pay for their flights with Bitcoin.

China's leading search engine Baidu (BIDU) also accepts Bitcoin for certain services. And a car dealer in California recently accepted Bitcoin as payment for a Tesla (TSLA) Model S, valued at $100,000.

Bitcoin has been a particularly popular investment in China, but regulators have been cracking down. This week, China's largest bitcoin exchange, BTC China, abruptly stopped accepting new deposits. That came after China's central bank issued a warning and announced new rules for financial institutions dealing in bitcoins earlier this month.

European Union officials have also warned about the risks of Bitcoin and may consider regulating the currency.

First Published: December 20, 2013: 2:10 PM ET

04.32 | 0 komentar | Read More