THIRD EDITION
For most kinds of purchases, you can get valuable advice and comparisons on the Internet.

Ask a librarian or friends which Internet sites

they think are helpful, or you can use a search

engine like Google or Yahoo. Be aware that information you find is often biased. At many websites, the

only products or sellers listed are ones that pay to

advertise. Before buying anything on the Internet,

check several websites and make sure you deal with

reputable dealers.

Airline Fares

1. Compare low-cost carriers with major carriers

that fly to your destination. Remember, the best

fares may not be out of the airport closest to you.

2. You may save by including a Saturday evening

stay-over or by purchasing the ticket at least 14

days in advance. Ask which days of the week

and times of the day have the lowest fare.

3. Even if you are using a travel agent, check airline

and Internet travel sites, and look for special

deals. If you call, always ask for the lowest fare

to your destination.

Car Rental

4. Since car rental rates can vary greatly, compare

total price (including taxes and surcharge) and

take advantage of any special offers and membership discounts.

5. Rental car companies offer various insurance and

waiver options. Check with your automobile

insurance agent and credit card company in

advance to avoid duplicating any coverage you

may already have.

New Cars

6. You can save thousands of dollars over the lifetime of a car by selecting a model that combines

a low purchase price with low depreciation,

financing, insurance, gasoline, maintenance, and

repair costs. Ask your local librarian for new car

guides that contain this information.

Transportation Transportation
7. Having selected a model and options you are

interested in, you can save hundreds of dollars by

comparison shopping. Get price quotes from several dealers (over the phone or Internet) and let

each know you are contacting the others.

8. Remember there is no “cooling off” period on

new car sales. Once you have signed a contract,

you are obligated to buy the car.

Used Cars

9. Before buying any used car: 

• Compare the seller’s asking price with the

average retail price in a “bluebook” or other

guide to car prices which can be found at

many libraries, banks, and credit unions.

• Have a mechanic you trust check the car,

especially if the car is sold “as is.”

10. Consider purchasing a used car from an individual you know and trust. They are more likely

than other sellers to charge a lower price and

point out any problems with the car.

Auto Leasing

11. Don’t decide to lease a car just because the payments are lower than on a traditional auto loan.

The leasing payments are lower because you

don’t actually own the car.

12. Leasing a car is very complicated. When shopping, consider the price of the car (known as the

capitalized cost), your trade-in allowance, any

down payment, monthly payments, various fees

(excess mileage, excess “wear and tear,” end-oflease), and the cost of buying the car at the end

of the lease. A valuable source of information

about auto leasing can be found in Keys to

Vehicle Leasing: A Consumer Guide, which is

published by the Federal Reserve Board and

Federal Trade Commission. 

Gasoline

13. You can save hundreds of dollars a year by

comparing prices at different stations, pumping

gas yourself, and using the lowest-octane called

for in your owner’s manual.

14. You can save up to $100 a year on gas by keeping your engine tuned and your tires inflated to

their proper pressure.
Car Repairs

15. Consumers lose billions of dollars each year on

unneeded or poorly done car repairs. The most

important step that you can take to save money

on these repairs is to find a skilled, honest

mechanic. Before you need repairs, look for a

mechanic who:

• is certified and well established;

• has done good work for someone you know;

and

• communicates well about repair options and

costs.

Auto Insurance

16. You can save several hundred dollars a year by

purchasing auto insurance from a licensed, lowprice insurer. Call your state insurance department

for a publication showing typical prices charged

by different companies. Then call at least four of

the lowest-priced, licensed insurers to learn what

they would charge you for the same coverage.

17. Talk to your agent or insurer about raising your

deductibles on collision and comprehensive coverage to at least $500 or, if you have an old car,

dropping this coverage altogether. This can save

you hundreds of dollars on insurance premiums.

18. Make certain that your new policy is in effect

before dropping your old one.

Homeowner/Renter Insurance

19. You can save several hundred dollars a year on

homeowner insurance and up to $50 a year on

renter insurance by purchasing insurance from a

low-price, licensed insurer. Ask your state insurance department for a publication showing typical

prices charged by different licensed companies.

Then call at least four of the lowest priced insurers

to learn what they would charge you. If such a

publication is not available, it is even more important to call at least four insurers for price quotes.

Insurance Insurance
20. Make certain you purchase enough coverage to

replace the house and its contents.

“Replacement” on the house means rebuilding

to its current condition.

21. Make certain your new policy is in effect before

dropping your old one.

Life Insurance

22. If you want insurance protection only, and not a

savings and investment product, buy a term life

insurance policy.

23. If you want to buy a whole life, universal life,

or other cash value policy, plan to hold it for at

least 15 years. Canceling these policies after

only a few years can more than double your life

insurance costs.

24. Check the National Association of Insurance

Commissioners website (www.naic.org/cis ) or

your local library for information on the financial soundness of insurance companies.

Checking Accounts and Debit Cards

25. You can save more than $100 a year in fees by

selecting a free checking account or one with no

minimum balance requirement. Request a complete list of fees that are charged on these

accounts, including ATM and debit card fees.

26. See if you can get free or lower cost checking

through direct deposit or agreeing to ATM only

use. Be aware of charges for using an ATM not

associated with your financial institution.

Savings Products

27. Before opening a savings account, find out

whether the account is insured by the federal

government (FDIC for banks or NCUA for

credit unions). Financial institutions offer a

number of products, such as mutual funds and

annuities, which are not insured.

Banking/Credit Banking/Credit
28. Once you select a type of savings account, use

the telephone, newspaper, and Internet to compare rates and fees offered by different financial

institutions, including those outside your city.

These rates can vary a lot and, over time, can

significantly affect interest earnings.

29. To earn the highest return on savings (annual

percentage yield) with little or no risk, consider

certificates of deposit (CDs) or U.S. Savings

Bonds (Series I or EE).

Credit Cards

30. To avoid late payment fees and possible interest

rate increases on your credit cards, make sure

you send in your payment a week to ten days

before the statement due date. Late payments on

one card can increase fees and interest rates on

other cards.

31. You can avoid interest charges, which may be

considerable, by paying off your entire bill each

month. If you are unable to pay off a large balance, pay as much as you can. Try to shift the

remaining balance to a credit card with a lower

annual percentage rate (APR). You can find listings of credit card plans, rates, and terms on the

Internet, in personal finance magazines, and in

newspapers.

32. Be aware that credit cards with rebates, cash

back, travel awards, or other perks may carry

higher rates or fees.

Auto Loans

33. To save as much as several thousand dollars in

finance charges, pay for the car in cash or make a

large down payment. Always get the shortest term

loan possible as this will lower your interest rate.

34. Make certain to get a rate quote (or preapproved loan) from your bank or credit union

before seeking dealer financing. You can save

as much as $1000 in finance charges by shopping for the cheapest loan. 

35. Make certain to consider the dollar difference

between low-rate financing and a lower sale

price. Remember that getting zero or low-rate

financing from a dealer may prevent you from

getting the rebate. 
First Mortgage Loans

36. Although your monthly payment may be higher,

you can save tens of thousands of dollars in

interest charges by shopping for the shortestterm mortgage you can afford. For each

$100,000 you borrow at a 7% annual percentage

rate (APR), for example, you will pay over

$75,000 less in interest on a 15-year fixed rate

mortgage than you would on a 30-year fixed

rate mortgage.

37. You can save thousands of dollars in interest

charges by shopping for the lowest-rate mortgage with the fewest points. On a 15-year

$100,000 fixed-rate mortgage, just lowering the

APR from 7% to 6.5% can save you more than

$5,000 in interest charges over the life of the

loan, and paying two points instead of three

would save you an additional $1,000.

38. Check the Internet or your local newspaper for

mortgage rate surveys, then call several lenders

for information about their rates (APRs), points,

and fees. If you choose a mortgage broker,

make certain to compare their offers with those

of direct lenders.

39. Be aware that the interest rate on most adjustable

rate mortgages (ARMs) can vary a great deal over

the lifetime of the loan. An increase of several

percentage points might raise payments by hundreds of dollars a month, so ask the lender what

the highest possible monthly payment might be.

Mortgage Refinancing

40. Consider refinancing your mortgage if you can get

a rate that is lower than your existing mortgage rate

and plan to keep the new mortgage for at least several years. Calculate precisely how much your new

mortgage (including points, fees and closing costs)

will cost and whether, in the long run, it will cost

less than your current mortgage.

Home Equity Loans

41. Be cautious in taking out home equity loans.

The loans reduce or may even eliminate the

equity that you have built up in your home.

(Equity is the cash you would have if you sold

your house and paid off your mortgage loans.)

If you are unable to make payments on home

equity loans, you could lose your home.
42. Compare home equity loans offered by at least

four reputable lending institutions. Consider the

interest rate on the loan and the annual percentage rate (APR), which includes other costs, such

as origination fees, discount points, mortgage

insurance, and other fees. Ask if the rate

changes, and if so, how it is calculated and how

frequently, as this will affect the amount of your

monthly payments.

Home Purchase

43. You can often negotiate a lower sale price by

employing a buyer broker who works for you,

not the seller. If the buyer broker or the broker’s

firm also lists properties, there may be a conflict

of interest, so ask them to tell you if they are

showing you a property that they have listed.

44. Do not purchase any house until it has been

examined by a home inspector that you selected.

Renting a Place to Live

45. Do not limit your rental housing search to classified ads or referrals from friends and acquaintances. Select buildings where you would like to

live and contact their building manager or

owner to see if anything is available.

46. Remember that signing a lease probably obligates you to make all monthly payments for the

term of the agreement.

Home Improvement

47. Home repairs often cost thousands of dollars

and are the subject of frequent complaints.

Select from among several well established,

licensed contractors who have submitted written, fixed-price bids for the work.

48. Do not sign any contract that requires full payment

before satisfactory completion of the work.

Housing Housing
Major Appliances

49. Consult Consumer Reports, available in most

public libraries, for information about specific

appliance brands and models and how to

evaluate them, including energy use.

There are often great price and quality

differences. Look for the yellow Energy Guide

label on products, and especially for products

that have earned the government’s ENERGY

STAR, which can save up to 50% in energy use.

50. Once you’ve selected a specific brand and

model, check the Internet or yellow pages to

learn what stores carry the brand. Call at least

four of these stores to compare prices and ask if

that’s the lowest price they can offer you. This

comparison shopping can save you as much as

$100 or more. 

Heating and Cooling

51. A home energy audit can identify ways to save

up to hundreds of dollars a year on home heating (and air conditioning). Ask your electric or

gas utility if they audit homes for free or for a

reasonable charge. If they do not, ask them to

refer you to a qualified professional.

52. Enrolling in load management programs and

off-hour rate programs offered by your electric

utility may save you up to $100 a year in electricity costs. Call your electric utility for information about these cost-saving programs.

Telephone Service

53. Once a year, review your phone bills for the previous three months to see what local, local toll,

long distance, and international calls you normally make. Call several phone companies

which provide service in your area (including

wireless and cable), to find the cheapest calling

plan that meets your needs. Consider a bundled

package that offers local, local toll and long distance, and possibly other services, if you heavily

use all the services in the bundle.

Utilities Utilities
54. Check your phone bill to see if you have optional calling features or additional services, such as

inside wire maintenance, that you don’t need.

Each option you drop could save you $40 or

more each year.

55. If you make very few toll or long distance calls,

avoid calling plans with monthly fees or minimums. Or consider disconnecting the service altogether and use dial around services such as 10-10

numbers or prepaid phone cards for your calls.

When shopping for dial around service, look for

fees, call minimum, and per minute rates. Treat

prepaid cards as cash and find out if there is an

expiration date.

56. If you use a cell phone, make sure your calling

plan matches the pattern of calls you typically

make. Understand peak calling periods, area coverage, roaming, and termination charges. Contracts

offered by most carriers will provide you with a

trial period of 14 days or more. Use that time to

make sure the service provides coverage in all the

places you will be using the phone (home, work

etc.). Prepaid wireless plans tend to have higher

per minute rates and fees but may be a better

option if you use the phone only occasionally.

57. Before making calls when away from home,

compare per minute rates and surcharges for cell

phones, prepaid phone cards, and calling card

plans to find how to save the most money. 

58. Dial your long distance calls directly. Using an

operator to place the call can cost you up to $10

extra. To save money on information calls, look

the number up on the Internet, or in the directory.

Food Purchased at Markets

59. You can save hundreds of dollars a year by

shopping at lower-priced food stores. Convenience stores often charge the highest price.

Other
60. You will spend less on food if you shop with a

list, take advantage of sales, and purchase basic

ingredients, rather than pre-packaged components or ready-made items.

61. You can save hundreds of dollars a year by

comparing price-per-ounce or other unit prices

on shelf labels. Stock up on those items with

low per-unit costs.

Prescription Drugs

62. Since brand name drugs are usually much more

expensive than their generic equivalents, ask

your physician and pharmacist if a less expensive generic or an over the counter alternative is

available.

63. Since pharmacies may charge widely different

prices for the same medicine, call several.

When taking a drug for a long time, also consider calling mail-order pharmacies, which often

charge lower prices.

Funeral Arrangements

64. Plan ahead, making your wishes known about

your funeral, memorial, or burial arrangements

in writing to save your family or estate unnecessary expense. 

65. For information about the least costly options,

which may save you several thousand dollars,

contact a local Funeral Consumer Alliance or

memorial society, which are usually listed in the

Yellow Pages under funeral services.

66. Before selecting a funeral home, call several

and ask for prices of specific goods and services, or visit them to obtain an itemized price list.

You are entitled to this information by law.
66 Ways to Save Money was developed by a working group of representatives from government agencies, consumer groups, business organizations, and

educational institutions that sought to develop and

publicize money-saving tips. The initiative was

managed by the non-profit Consumer Federation of

America (CFA).

Over the past decade, nearly two million copies of

this brochure have been requested. At present, the

publication is among the most popular made available by the Federal Citizen Information Center

(FCIC).

66 Ways to Save Money is now being distributed in

English and Spanish by CFA and the FCIC. A grant

from MoneyManagement International, a nonprofit

community service organization offering free credit

counceling and financial education (visit

www.MoneyManagement.org or call 

1-866-490-5362), covers the cost of printing.

For an online version of this brochure, go to

www.66ways.org.

Single copies of this brochure are availble for

$.50 each from Save Money, Pueblo, CO 81009. 

Make your check or money order payable to 

Superintendent of Documents. You may also go 

to the Federal Citizen Information Center's 

website and order it online (www.pueblo.gsa.gov). 

For information on bulk orders contact: Save

Money, Consumer Federation of America, 1620 Eye

Street, NY, Suite 200, Washington, D.C. 20006 or

email 66ways@consumerfed.org . 

Revised 6/06