Americans’ Outlook for ’97 Bright

Nearly half of Americans surveyed believe that 1997 will bring good financial tidings for themselves and their families, according to a survey by Lutheran Brotherhood, a Minneapolis-based life and health insurance company.

Weighing income, savings and investments against financial obligations, 49% of the 1,000 individuals surveyed expected to be in better economic shape this year than they were in 1996; 24% expected to be worse off; 21% expected things to be about the same.

That’s a wide improvement from the expectations a year ago, when 43% of those surveyed expected to be better off and 39% expected to be in worse shape.

The bulk of those surveyed also expected a fairly stable, or improving, U.S. economy this year.

However, the long-term horizon appears far less rosy. A full 47% of respondents expected those born this year to be in worse financial shape when they grow up. Roughly 11% expected today’s newborns to be in roughly the same financial health as today’s adults, while 26% anticipated they’ll be better off.

Spending less, planning more

Has the nip in the air caused your heating bills to skyrocket? If so, Consumer Credit Counseling Service, a nonprofit financial help organization, has some money-saving tips:

* Check for drafts. About 15% to 30% of a winter heating bill can be caused by warm air leaking out. If you notice cold spots in your home, consider installing weather stripping and caulk to windows and doors. (The caulk will cost only a few dollars at the hardware store but will save you money all year long because it also helps keep cold air in during hot summer months.)

* Make sure to close the fireplace flue. Heat rises. When your chimney is open, heat escapes.

* Lower your thermostat. Sure, you might have to wear a sweater and keep a few extra covers on the bed. But you can save about 1% on your heating bill for every degree your thermostat is lowered.

* Check heating vents to make sure filters are clean, and replace the filters periodically. Also consider closing heating vents in--and doors to--rooms that aren’t in use.

* Check insulation. A properly insulated ceiling can reduce your heating costs up to one-third.

College cost tips

Junior and senior high school students who are college bound should start now if they hope to get financial aid for college.

Financial aid applications should already be available in high school and college counseling offices. Anyone who hopes to get aid for the September 1997 semester should fill out these applications immediately. High school juniors, meanwhile, would be wise to start getting aid information. Those who plan ahead, structuring their finances properly, can get significantly more financial help, experts note.

There are several good sources of free financial aid information:

* The federal government gives out extensive financial aid booklets and loan forms. You can call them at (800) 4-FED-AID ([800] 433-3243).

* Sallie Mae also offers a series of informational booklets and toll-free help lines. To get the student loan company’s 20-page financial aid overview, “Paying for College,” call (800) 806-3681; to get “Borrowing for College,” which explains the interest rates and loan limits for the various federal loan programs, call (800) 891-4595. The company also offers a Web site with college cost calculators, at https://www.salliemae.com

* Another good Web address for those wanting to examine college costs and calculate their savings needs is sponsored by the Mutual Fund Education Alliance, at https://www.mfea.com

Consumer Checklist is a weekly feature that covers a range of pocketbook issues of interest to Californians. To contribute information about new legislation, products, services or surveys, write to Kathy M. Kristof, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053; or e-mail [email protected].