A tradition of tracking Santa

A Colorado Springs Sears Roebuck & Co. misprinted a phone number in 1955, accidentally kicking off a tradition that now involves multiple national governments and the world's biggest tech giants.

The phone number, advertised as a way to call Santa, actually connected local children to the Continental Air Defense Command (CONRAD) Commander-in-Chief's operations hotline. Playing along, the staff at that facility checked its radars and gave updates on St. Nick's location throughout Christmas Eve.

Per Breiehagen | Getty Images

Fast forward to 2014, and the organization—now called North American Aerospace Defense Command (NORAD) when it became a bi-national operation with Canada—operates a sophisticated mapping and tracking resource for global Santa watching. But even though NORAD began the tradition, it now has competitors in the space.

Google operates its own Santa tracking operation, complete with a dedicated Android mobile app and several Christmas-themed games. The Mountain View-based company even offers Santa-watchers a "Gifts Delivered" tracker, although a representative did not immediately respond to requests for comment on how this metric is tabulated.

For its part, NORAD tracks Santa through a four-tiered system that leverages radar, geo-synchronous satellites, a global camera network, and even a team of fighter jet pilots, according to its website.

NORAD and Google originally worked together on the tracking, butparted ways before Christmas 2012 when the organization opted for a partnership with Microsoft. NORAD now uses Internet Explorer to build a three-dimensional Santa experience platform, and the company's Bing Maps to help power the tracking.

And despite Google's overtures at eclipsing its former partner, NORAD still claims to be the best Santa tracker around—and even claims official status.

"We're the only organization that has the technology, the qualifications, and the people to do it. And, we love it! NORAD is honored to be Santa's official tracker!" the organization wrote on its website.

Big changes are coming for credit cards

Big changes are coming for credit cards

Kelli B. Grant | @kelligrant

Rayes | Photodisc | Getty Images

 

If you make one New Year's resolution this year, pledge to pay closer attention to your credit card.
"Next year is shaping up to be the biggest year for credit card changes since the Credit CARD Act came out and shook things up in 2009," said Matt Schulz, senior industry analyst for CreditCards.com.

One of the biggest changes—EMV technology—will put new credit cards in most shoppers' hands by the end of 2015. Computer chips embedded in these cards generate a unique transaction code every time you use them for a purchase, offering greater protection against fraud. There's no need to apply for a new credit card to snag one, said Schulz. Issuers are already mailing them out.
As a side effect of the new high-tech cards, shoppers may find there's also more opportunity to use a mobile wallet, said Schulz. Many of the new point-of-sale terminals that retailers are installing to read the new chip cards also work with the technology behind Apple Pay and other mobile wallets.

Read MoreHow tokenization may change the way you pay
 
Even with the added security measures, though, monitoring your credit card statements is still going to be important. "We're definitely in this transition period where issuers are putting out these cards but not everybody has them," said Schulz. "Stores don't all have the terminals, and those that do haven't all turned them on." Until then, hackers can still commit the same kind of large-scale data breaches shoppers have seen plenty of in recent years at chains including Target, Home Depot and Michael's.

You may also want to think again whether you have the right cards in your wallet, in light of the potential for rising interest rates. "It's fairly certain we're going to have a rate hike," said Curtis Arnold, founder of BestPrepaidDebitCards.com. "We don't know when or how much, but everyone seems certain it's going to happen next year."

If you're carrying a balance, consider hunting down a fixed-rate card because the rates won't fluctuate like those of variable-rate cards. They're rare, but a few community banks and credit unions still offer them. Or look into balance transfer offers. "Those are typically fixed-rate offers, and a lot of them go out 18 months," Arnold said.

Whatever option you choose, take action before the Fed announces a rate hike—something many Fed watchers expect will happen next summer. When that happens, Arnold said, "offers can often switch literally overnight."



While you're checking terms, take a hard look at your card benefits. Rewards have gotten more enticing in recent months. In addition to valuable ones that consumers often miss, like price adjustments and extended manufacturer's warranties, many cards now include regular free looks at your credit score, said Kevin Yuann, credit cards director for NerdWallet.com.

Discover Card, Barclaycard US and First Bankcard have already announced programs, and Citibank said recently it will start sharing scores with cardholders in January. You can also use free score estimators like Credit.com and CreditKarma.com, or purchase score access outright through myFICO.

Kelli B. Grant 

Personal Finance and Consumer Spending Reporter

Public pensions at risk worldwide: Report

John W. Schoen | @johnwschoen 

 

Steve Cole Images | Getty Images

 

The world's retirement bill is coming due—and many countries aren't ready to pay it.
That's the conclusion of a report Monday from the Organization for Economic Cooperation and Development, a Paris-based group representing the world's developed countries.
With populations aging and lifespans rising, government-supported pensions are cutting deeper into national budgets, crowding out spending on other programs and services. The added burden comes as the economies of the developed world are growing slowly, putting added pressure on the tax revenues needed to pay rising pension costs.

The solution, according to the OECD report, includes boosting retirement ages, cutting back on early retirement and providing greater incentives for workers to save for their own retirement, including automatic enrollment in private plans.
"The ongoing rapid demographic shift and the slowdown in the global economy highlight the need for continuing reforms," OECD Secretary-General Angel Gurría said. "We must communicate better the message that working longer and contributing more is the only way to get a decent income in retirement."

In the U.S., much of the debate over pension reform has centered on the national Social Security trust fund, which has enough reserves set aside to fully cover its costs until 2027. Congress has debated a series of reforms that would extend the plans solvency, including raising contributions, indexing cost of living increases and taxing benefits.

State and local pensions are in much worse financial shape. A report in September by bond credit rater Moody's Investors Services found that, despite recent gains on their investments, U.S. public pension funds don't have nearly enough money to pay what they owe current and future retirees.

In less than a decade, that shortfall has tripled to at least $2 trillion—more than half of all outstanding state and local bond debt, according to the report.



Like nearly all retirement savers, state and local pension funds got clobbered by the 2008 financial collapse. But the pension shortfall had been building well before the downturn—and has been made worse by state and local government's shortchanging annual fund contributions. New Jersey, for example, took "contribution holidays" during the Great Recession and more recently has cut payments or just skipped them altogether, Moody's said.

Without reforms, the higher cost of an aging population threatens to stifle long-term economic growth as countries are forced to borrow money to cover their public pension promises. In Japan, where an aging population is experiencing the biggest gains in longevity, public debt is now more than twice the country's gross domestic product. Despite multiple government efforts to revive growth, Japan recently slipped back into recession after two decades of economic stagnation.



To better manage the financial risk posed by again populations, OECD officials want government to better communicate that risk to investors by creating a standard, global index. The benchmark would help investors price in the added financial burden of increases in longevity that are often buried in outdated longevity tables and other actuarial statistics.

The group also proposed that governments issue "longevity bonds" to hedge the risk that public pensions come up short in covering the cost of paying out the benefits they've promised retirees.
"Capital markets could offer additional capacity for mitigating longevity risk, but the transparency, standardization and liquidity of instruments to hedge this risk need to be facilitated," the OECD said in a statement.

John W. SchoenCNBC.com Economics Reporter

Holiday checklist: Choosing a charity wisely

Sharon Epperson | Judy Gee

 

During the holiday season, many of us are flooded with phone calls and letters requesting contributions to various charitable organizations—and we respond. About 95 percent of households donate to charities, averaging about $3,000 per household contribution, according to the National Philanthropic Trust.

Charitable giving is one of the top financial priorities of many individuals and families, along with saving for retirement and college.

"We hear very consistently that it's an important element of their financial planning," said Fidelity Investments' Kathleen Murphy, who oversees $1.7 trillion in assets as president of the firm's personal investing business. "Almost regardless of the affluence they have, people want to give back."
But when people give, they should be certain that the charity isn't a scam and that the contribution—big or small—will have the greatest impact. Here's a checklist to make sure you're choosing a charity wisely.

Believe in the mission

Nadya Lukic | E+ | Getty Images

 

First, find a charity whose mission you believe in. If it's a local nonprofit or a national organization with programs in your community, you can volunteer your time or go in person to see some of the programming in action. Check out the company's website as well as independent reviews and evaluations.
 
Next, make sure it is a legitimate, reputable charity. Verify that it is a tax-exempt organization registered with the Internal Revenue Service by reviewing its Form 990.
You'll also want to determine how your donation will be used. GuideStar, CharityNavigator,and CharityWatch are a few websites that will give you an overview of an organization's financial health and budget breakdown.

The typical charity spends 75 percent of its budget on programs, according to CharityNavigator. Look for nonprofits that hit or come close to the benchmark. The rest of a typical charity's budget goes to administrative costs (15 percent) and fundraising (10 percent).

CharityWatch delves a bit deeper into an organization's fundraising and other accounting practices, including how much is spent to raise each $100 of funds that are collected.


Also, be sure to assess the impact of the charity's work. GiveWell does in-depth research on programs that it determines have had the most impact on people's lives and then suggests a handful of charities it deems best at delivering these programs.

It also suggests questions that you should ask a charity to evaluate whether the organization is actually "doing good" and having a measurable effect.

If you don't have time to do the research and can't decide which charity to choose, you can still make a tax-deductible charitable contribution to a donor-advised fund. It's like a charitable savings account.
You can contribute to the fund as often as you'd like and recommend grants to your favorite charity when you're ready. A number of investment firms, including Vanguard, Charles Schwab and Fidelity, offer donor-advised funds.

Sharon EppersonCNBC Senior Personal Finance Correspondent

Holiday gifts for a better financial future

Kelli B. Grant | @kelligrant

Friday, 28 Nov 2014 | 9:50 AM ETCNBC.com

 

 

A gift of appreciated stock or a 529 college savings plan contribution doesn't have the same wow factor as, say, a PlayStation 4 or a "Frozen" doll under the tree, but it may be a smarter bet.
"You're giving something that will have future value," said Carina Diamond, a certified financial planner and managing director of SS&G Wealth Management in Akron, Ohio. "If we look at our families, everyone already has a lot of 'stuff.'"

In fact, when polled, most people say they'd prefer cold, hard cash. In a recent Charles Schwab survey, 53 percent of people said cash to help pay off their credit card debt would be their top gift choice. More than three-quarters of teenagers also picked cash as their most-wanted gift, according to Ebates.com. But there are better ways to give financial aid for the holidays than handing over a stack of bills, say experts.

Diamond said she often gifts shares of mutual funds to her nieces and nephews. Savings bonds or matching contributions to a young worker's Roth IRA can also help set them up for a better financial future. (Check out the video above for more gift ideas.)


Even though you're not braving Black Friday crowds or comparing sales, it's still smart to plan ahead for financial presents. Some states allow tax deductions for gifts made to a 529 plan, but contributions can take time to process, said Diamond. Making the gift after you've alerted the recipient on Dec. 25 doesn't leave a lot of wiggle room.

Kelli B. Gran

 Personal Finance and Consumer Spending Reporter