kids http://www.wisebread.com/taxonomy/term/1165/all en-US 7 Money Lessons Kids Can Learn From the Tooth Fairy http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-money-lessons-kids-can-learn-from-the-tooth-fairy" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/little_girl_holding_up_her_tooth.jpg" alt="Little girl holding up her tooth" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>My first visit from the Tooth Fairy is my first specific memory of holding money in my hand. I ran to my parents bedroom excitedly exclaiming, &quot;I got a quarter!&quot;</p> <p>&quot;Actually,&quot; my sleepy dad told me, &quot;You got a 50-cent piece. That's worth two quarters.&quot;</p> <p>I know firsthand that kids can learn a lot about money from the Tooth Fairy, since I did. I also know that my own kids have been able to learn some valuable money lessons based on the under-the-pillow payouts that they've received.</p> <h2>1. The values of different coins and bills</h2> <p>Like my father before me, I like to provide my kids with unusual coinage when they lose a tooth. My thought was that it makes it seem more magical if they receive a denomination that they never see otherwise. So my husband and I have always slipped Sacagawea golden dollars under their pillows.</p> <p>The funny thing is, for years my oldest child hoarded these coins in her room and never spent one. One day she was gathering up all her money and was frustrated that she didn't have enough to buy something. I suggested she raid her trove of tooth money, and she told me that those weren't &quot;real money.&quot; We had neglected to tell her that golden dollars were legally accepted currency, and she had gone years thinking that she was exchanging her teeth for mere trinkets.</p> <p>Besides using it as an opportunity to introduce unusual coins, you could use the Tooth Fairy's visit as a lesson by alternating between different combinations of coins, so they learn that four quarters equal ten dimes which equal 20 nickels. But good luck slipping 20 nickels under the pillow without waking them up! (See also: <a href="http://www.wisebread.com/21-things-you-should-make-your-kids-pay-for?ref=seealso" target="_blank">21 Things You Should Make Your Kids Pay For</a>)</p> <h2>2. How to handle a windfall</h2> <p>As an adult, handling a surprise influx of cash can be one of our tougher decisions. It's always tempting to see a windfall as license to spend freely, but then again, a wisely invested windfall could have a vastly different effect on your life than one you decided to blow.</p> <p>If allowance is a kids' &quot;salary,&quot; Tooth Fairy money is analogous to a tax refund or a Christmas bonus. Let them decide how and whether to spend it, and watch them learn.</p> <h2>3. How to make sure you're getting paid fairly</h2> <p>Just like sharp-eyed employees at a company, my kids pay attention to what the Fairy pays their siblings. If someone gets more, they do not fail to speak up about it, and the Tooth Fairy seems to get the message, because future payments tend to be more equal. My kids have also had some success in investigating market rates by asking friends how much they get. Once they reported to me that other friends got more money for top teeth, for example, the Fairy started paying a premium for those as well. Lesson learned: It pays to do your research and demand equal pay. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>4. Sometimes money doesn't show up when you expect</h2> <p>As a freelance writer, I know the excitement of hearing the mail carrier approach my door, followed by the disappointment of seeing a pile of bills and no checks coming through the slot. Many children will at some point wake up to find that the Tooth Fairy forgot to come. According to a report by Delta Dental, more than half the parents surveyed at some point forgot to leave money under the pillow &mdash; which gives children an opportunity to practice their patience and learn that sometimes you have to wait longer than you expected to get paid.</p> <h2>5. The spending power of money</h2> <p>Just like me with my 50-cent piece, most little children have no idea what their first Tooth Fairy payout can buy. Take them to the store and let them shop. Next time, they'll have a more concrete understanding of what 50 cents or a few dollars is worth. This will help them better budget their allowance once they start earning one. (See also: <a href="http://www.wisebread.com/the-easy-way-to-set-an-allowance-that-wont-ruin-your-kid?ref=seealso" target="_blank">The Easy Way to Set an Allowance That Won't Ruin Your Kid</a>)</p> <h2>6. How to forecast future earnings</h2> <p>Most kids lose their first few teeth in kindergarten, at an age when thinking about the future at all is a challenge. As they get older, kids may realize that they can count on a payout every time they lose a tooth. Really canny ones may even consult a medical text or ask their dentist how many more baby teeth they have to lose so they can figure out how much they've got coming to them.</p> <h2>7. No pain, no gain</h2> <p>Sometimes one of my kids will let a loose tooth dangle by a thread for days because they're afraid of the small amount of pain that might happen if they pull at it. When this happens, sometimes one of the other kids will comfort them by reminding them that they'll get money once the tooth finally comes out. Sometimes it's just the push they need to face the pain.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-money-lessons-kids-can-learn-from-the-tooth-fairy&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Money%2520Lessons%2520Kids%2520Can%2520Learn%2520From%2520the%2520Tooth%2520Fairy.jpg&amp;description=7%20Money%20Lessons%20Kids%20Can%20Learn%20From%20the%20Tooth%20Fairy"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Money%20Lessons%20Kids%20Can%20Learn%20From%20the%20Tooth%20Fairy.jpg" alt="7 Money Lessons Kids Can Learn From the Tooth Fairy" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/carrie-kirby">Carrie Kirby</a> of <a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-make-your-young-kids-pay-rent">Should You Make Your Young Kids Pay &quot;Rent?&quot;</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-help-your-adult-children-become-financially-independent">How to Help Your Adult Children Become Financially Independent</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family bills children coins kids money lessons saving money teeth tooth fairy Wed, 11 Apr 2018 08:00:06 +0000 Carrie Kirby 2123014 at http://www.wisebread.com 4 Things Teens Can Do Now to Prepare for Financial Independence http://www.wisebread.com/4-things-teens-can-do-now-to-prepare-for-financial-independence <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-things-teens-can-do-now-to-prepare-for-financial-independence" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/young_business_woman_holding_money_dollar_bills.jpg" alt="Young business woman holding money dollar bills" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>In the past couple months, it's become abundantly clear that today's teens are tenacious and enterprising. Add in the fact that they are &quot;digital natives&quot; and have a firm grasp on social media and technology, and it seems as if there is very little teens cannot do if they put their minds to it.</p> <p>Unfortunately, there is one area where teens feel a little less optimistic: Money.</p> <p>According a 2013 survey by Junior Achievement, an organization dedicated to teaching kids about money, 25 percent of teens believe they will not be able to support themselves without the help of parents until they are between the ages of 25 and 27. In addition, only 59 percent of teens feel confident that they will be able to support themselves between the ages of 18 and 24.</p> <p>Some of this pessimism about future financial independence is a natural reaction to the relatively high unemployment rate among teens. But teens, with a little judicious help from Mom and Dad, can set themselves up for financial independence down the road. Here are a few things that every teen can do to prepare for financial independence in adulthood.</p> <h2>1. Set financial goals</h2> <p>One of the best ways to learn how to handle finances is through financial goal setting. Parents can help teens set realistic financial goals, such as saving up for a coveted iPhone, making a contribution to a college fund, or paying for the class trip. Teens can learn how empowering it is to create a written plan for achieving their financial goals and find ways to earn or save money toward those goals.</p> <p>Parents can help foster this ability by asking teens to pay for wanted purchases on their own, while showing them how to create and follow through on a plan. (See also: <a href="http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget?ref=seealso" target="_blank">How to Help Your Kid Build Their First Budget</a>)</p> <h2>2. Track spending</h2> <p>One of the biggest stumbling blocks in achieving financial independence is ignorance of where the money goes. Without financial awareness, it's very easy to spend your way through a great deal of money without ever realizing how much is slipping through your fingers. This is why it's important for teens to learn the habit of tracking their finances now.</p> <p>There are several ways that parents can help to encourage their teens to track their spending.</p> <ul> <ul> <li> <p>Make your teen's allowance conditional on tracking. According to former Vice President Nelson Rockefeller, this was how the famously wealthy family handled allowances: &quot;All of us had to keep a record of where our money went. We were required to give 10 percent to charity, save 10 percent, and then account for how we spent or saved the other 80 percent.&quot;</p> </li> </ul> </ul> <ul> <li> <p>Make tracking a family affair. It's much easier to encourage your kids to join in on something they already see you do than ask them to start doing something that seems foreign to them. Include them in money tracking and find a way to make a game of it among the family. For instance, you could have a contest to see who can get their weekly or monthly tracking done first &mdash; which will have the added benefit of encouraging all of you to track your spending as it happens.</p> </li> </ul> <ul> <li> <p>Let them embrace financial technology. There are a number of apps and computer programs out there that will help your teen track money on the very device they are generally glued to. The best options for teens are systems like Mvelopes and YNAB, which both allow for manual tracking of cash transactions. Not only will manual tracking help get teens in the habit of always tracking their spending, but even young teens who depend solely on cash can use them.</p> </li> </ul> <p>(See also: <a href="http://www.wisebread.com/21-things-you-should-make-your-kids-pay-for?ref=seealso" target="_blank">21 Things You Should Make Your Kids Pay For</a>)</p> <h2>3. Open a Roth IRA</h2> <p>Any teen who has earned income &mdash; that is, who has earned money from a job &mdash; can contribute to a Roth IRA. The contribution limit is $5,500 per year, or the maximum amount the contributor earned from a job &mdash; whichever amount is lower. For instance, a teen who earns $2,500 per year flipping hamburgers on weekends can only contribute up to $2,500 into their IRA or Roth IRA.</p> <p>Getting started on a retirement account in your teens can make an enormous difference in your ability to retire. The magic of compound interest has more time to work if you start in your teens. In addition, getting in the habit of paying yourself (and your retirement account) first is an important aspect of achieving financial independence as an adult.</p> <p>Since few teens will be interested in setting aside every single paycheck for a Roth IRA, parents can encourage their teens to put money in the IRA by offering to match anything they set aside.</p> <h2>4. Start investing</h2> <p>While getting teens into the habit of putting money into retirement accounts is incredibly important, it's also vital for them to feel comfortable with investing in general. This will not only help them make smart decisions with the investments in their retirement accounts, but it is also an important way to build wealth.</p> <p>There are several ways to help your teens get involved in investing.</p> <ul> <li> <p>Encourage them to buy individual stocks that they find interesting. The stock market offers teens a chance to own a piece of the companies whose products they use every day. This makes investing feel more personal, and gives teens the opportunity to learn how their favorite brands are faring.</p> </li> </ul> <ul> <li> <p>Ask them to defend their purchases before they make them. Financial professional Lawrence Sprung told U.S. News &amp; World Report that he asked his 11-year-old son to defend his request to buy a particular stock. The article explains: &quot;When his 11-year-old son declared that he wanted to invest in Walt Disney Co, Sprung asked him to prove his case. His son noted how Disney was unrolling a new <em>Star Wars </em>enterprise, enlarging and redeveloping some of its parks, and that people from all over the world would head to Disney's parks whether the economy was good or bad.&quot;</p> </li> </ul> <ul> <li> <p>Create a teen-run family investment account to help your kids understand the importance of diversifying. Hold regular meetings to discuss how the holdings are doing and go over investment strategies. This will help teens feel perfectly at home with the ins and outs of investing.</p> </li> </ul> <p>(See also: <a href="http://www.wisebread.com/10-investing-lessons-you-must-teach-your-kids?ref=seealso" target="_blank">10 Investing Lessons You Must Teach Your Kids</a>)</p> <h2>Make financial upkeep a habit</h2> <p>Teens can do a great deal to prepare for financial independence while still under their parents' roof. By getting into the habit of good money management &mdash; including setting goals, tracking spending, saving for the future, and investing &mdash; teens can be sure that they will reach financial independence and avoid the possibility of living in Mom's basement.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-things-teens-can-do-now-to-prepare-for-financial-independence&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Things%2520Teens%2520Can%2520Do%2520Now%2520to%2520Prepare%2520for%2520Financial%2520Independence.jpg&amp;description=4%20Things%20Teens%20Can%20Do%20Now%20to%20Prepare%20for%20Financial%20Independence"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Things%20Teens%20Can%20Do%20Now%20to%20Prepare%20for%20Financial%20Independence.jpg" alt="4 Things Teens Can Do Now to Prepare for Financial Independence" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/4-things-teens-can-do-now-to-prepare-for-financial-independence">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-to-build-your-financial-self-esteem">8 Ways to Build Your Financial Self Esteem</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-help-your-adult-children-become-financially-independent">How to Help Your Adult Children Become Financially Independent</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-tax-friendly-ways-to-save-beyond-your-retirement-fund">9 Tax-Friendly Ways to Save Beyond Your Retirement Fund</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-smart-money-moves-for-empty-nesters">7 Smart Money Moves for Empty Nesters</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance financial independence financial literacy investing kids Roth IRA teens tracking Tue, 03 Apr 2018 08:00:06 +0000 Emily Guy Birken 2122919 at http://www.wisebread.com 5 Ways New Parents Can Manage Debt http://www.wisebread.com/5-ways-new-parents-can-manage-debt <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-ways-new-parents-can-manage-debt" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_holding_her_baby.jpg" alt="Woman holding her baby" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Bringing a new little one into your family is an exciting time, but it can also be stressful if you have to juggle new baby expenses on top of debt repayment. Don't get overwhelmed. These tips will help you to pay off debt faster so you can enjoy your baby's first moments without so much stress. (See also: <a href="http://www.wisebread.com/7-signs-youre-financially-ready-to-start-a-family?ref=seealso" target="_blank">7 Signs You're Financially Ready to Start a Family</a>)</p> <h2>1. Don't add to your debt burden</h2> <p>Babies can be costly, especially when you're buying diapers and formula weekly. Be as cost-effective as possible when shopping for your new bundle of joy. Do your best to pay for diapers, baby food, and formula out of your normal grocery budget. This may mean juggling some of the normal things you buy to fit in an extra $25 to $50 each week.</p> <p>That can feel like a stretch, but it doesn't have to be a drastic one. It might just mean you eat a rice and bean meal once per week, or eat only chicken instead of steak and fish. You won't have to make this grocery trade forever, it's just a means to an end.</p> <p>As far as baby gear and clothes go, buy used or use hand-me-downs when possible. The first six months of your baby's life go fast, and items like swings, baby wraps, bath tubs, and rockers are not needed after that time frame, so don't waste your money. Any baby items that require strict safety regulations &mdash; like car seats &mdash; should be bought new. (See also: <a href="http://www.wisebread.com/dont-waste-money-on-this-pricey-baby-gear?ref=seealso" target="_blank">8 Things You Definitely Don't Need for a Baby</a>)</p> <h2>2. Don't be afraid to ask for help</h2> <p>There is no shame in admitting to family members and close friends that you are working hard to pay off debt and raise a baby. They might be able to take care of the baby one or two days a week so you can go to work, or they might have a lead for someone who is looking to hire out a side job. Many times, parents or grandparents are happy to have you over once a week for dinner, which can save you a small amount on your grocery bill.</p> <p>Outside of your family and friends, check to see if you are qualified for <a href="https://www.fns.usda.gov/wic/wic-eligibility-requirements" target="_blank">WIC benefits</a> or <a href="https://www.fns.usda.gov/snap/eligibility" target="_blank">food stamps</a>. Furthermore, if your debt is a federal student loan, you might be able to lower your payments <a href="https://studentloans.gov/myDirectLoan/ibrInstructions.action" target="_blank">based on your income</a>.</p> <h2>3. Refinance and rebalance your debts</h2> <p>Write down all of your debts and their APRs. Are you getting the best deal for them, or are you throwing your money away on high interest rates?</p> <p>If your credit score is healthy, try refinancing your auto loan, student loan, or mortgage to an arrangement with more favorable terms. The difference from a lower monthly payment can go toward expenses you need for your new baby.</p> <p>If you're struggling with credit card debt, consider moving that balance to a <a href="http://www.wisebread.com/the-best-0-balance-transfer-credit-cards?ref=internal" target="_blank">balance transfer credit card</a> with a promotional 0 percent APR. During that promotional window &mdash; typically between six and 21 months &mdash; interest does not accrue. This can be a tremendously effective way to pay down debt while saving on interest, especially considering that typical credit card rates can exceed 16 percent. Just be sure to pay the balance off in full before the promotional APR ends and the normal rate kicks in.</p> <h2>4. Try to survive on one income</h2> <p>Another strategy to tackle debt before and after the baby comes is to try to live on one income. Devoting one income to living expenses and the other income to debt repayment can quickly reduce the debt you owe. It takes a lot of sacrifice and budget cuts, but you will get out of your debt situation faster.</p> <p>After debt is repaid, one parent can choose to stay home with the baby, which might be a better option financially than paying for child care. Or, both parents can keep working and continue to practice living on one income to supercharge their emergency fund and retirement savings. (See also: <a href="http://www.wisebread.com/how-to-go-from-two-incomes-to-one?ref=seealso" target="_blank">How to Go From Two Incomes to One</a>)</p> <h2>5. Make drastic cuts</h2> <p>What drastic cuts can you make during this period of your life? Huge budget cuts are not fun, but they don't have to be permanent changes. Can you sell an extra household vehicle and get by with one? Could you sell some of your clothes, gadgets, or furniture? Can you cut your cable subscription for a while? Could you do a spending ban on anything that isn't an absolute necessity? (See also: <a href="http://www.wisebread.com/becoming-a-one-car-family-5-points-to-consider?ref=seealso" target="_blank">Becoming a One-Car Family: 5 Points to Consider</a>)</p> <p>These options aren't for everyone, but talk them over with your partner to figure out how you can get serious about your debt repayment. Remember that it is better to go extremes now and pay off your debt so you can enjoy growing your family with the comfort of being debt-free.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-ways-new-parents-can-manage-debt&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Ways%2520New%2520Parents%2520Can%2520Manage%2520Debt.jpg&amp;description=5%20Ways%20New%20Parents%20Can%20Manage%20Debt"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Ways%20New%20Parents%20Can%20Manage%20Debt.jpg" alt="5 Ways New Parents Can Manage Debt" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ashley-eneriz">Ashley Eneriz</a> of <a href="http://www.wisebread.com/5-ways-new-parents-can-manage-debt">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-fun-books-that-will-get-your-kids-excited-about-money">10 Fun Books That Will Get Your Kids Excited About Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget">How to Help Your Kid Build Their First Budget</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-new-toys-to-teach-kids-about-money">How to Use New Toys to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Debt Management Family balance transfer budget cuts cutting expenses kids new baby one income refinancing saving money Thu, 15 Mar 2018 09:00:07 +0000 Ashley Eneriz 2114572 at http://www.wisebread.com Should You Make Your Young Kids Pay "Rent?" http://www.wisebread.com/should-you-make-your-young-kids-pay-rent <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/should-you-make-your-young-kids-pay-rent" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/family_throwing_coins_into_a_piggy_bank_together.jpg" alt="Family throwing coins into a piggy bank together" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>A young mother named Essence Evans recently posted on Facebook that she charges her five-year-old daughter $1 each for rent, utilities, food, water, and cable out of her weekly $7 allowance. The remaining $2 is the child's money to spend however she wishes. The $5 that Evans takes for &quot;bills&quot; actually goes into a savings account she'll give to her daughter when she turns 18.</p> <p>The internet went berserk. Some people loved this idea, while others thought it took things too far. Whether you agree or disagree with the method, something has to be said for the initiative Evans is taking to teach her young daughter money management and the value of a dollar.</p> <p>Should you follow her example and charge your little ones &quot;rent?&quot; Here are five important lessons you'd be teaching them by having them &quot;pay bills.&quot;</p> <h2>Financial responsibility</h2> <p>From birth until death, you need and deal with money in some capacity. The earlier you learn how to earn, spend, lend, borrow, and invest, the better off you are. By making your little kids pay for living expenses, you teach them very early how to handle money responsibly. It helps them begin the journey of distinguishing wants from needs and prioritizing taking care of their needs first.</p> <p>Before your child is allowed to spend any money, they should be required to &quot;pay their bills&quot; and set money aside in savings of some sort. The action of giving money to them and having them give a portion of it back is a powerful lesson in and of itself. It becomes a normal part of having money. You teach them to save and pay their bills <em>first</em>, which is a powerful tool in keeping them out of financial trouble later in life. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?Ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>How to budget</h2> <p>Making your kids pay bills before allowing them to spend their money on things they want teaches them the power of budgeting. Budgeting is all about setting priorities and planning. Budgeting teaches them that they <em>can</em> have some of the things they want if they plan correctly. It also teaches them that they cannot afford all of their wants. It drives home the point that there are certain bills that they will always have (rent, utilities, groceries) and they should always plan for those recurring expenses.</p> <p>Teaching them these lessons in a controlled and loving environment is so much more humane than neglecting these lessons and having them learn it the hard way as an adult.</p> <h2>Nothing in life is free</h2> <p>You can't buy love, happiness, peace, or good health. But everything else will cost you. The sooner kids learn this, the better off they will be.</p> <p>Your kids need to know how the financial system works. You should teach them that in order for you to withdraw money at the ATM, you had to deposit money in the first place. They need to know that every time you use a credit card to buy something, you have to pay it back with interest.</p> <p>Teaching them that everything costs money &mdash; including the bed they sleep in, the food on the table, and the internet they enjoy &mdash; is a lasting life lesson that will help guide them into being contentious spenders. It is also important to teach them to always look for the cost in everything. This doesn't mean you should make your kids neurotic, but you do want to ensure that they are aware that everything they ask for costs you something. (See also: <a href="http://www.wisebread.com/21-things-you-should-make-your-kids-pay-for?ref=seealso" target="_blank">21 Things You Should Make Your Kids Pay For</a>)</p> <h2>The world doesn't owe them anything</h2> <p>Entitlement is one of the leading underlying causes of debt and credit abuse. Teaching your kids that hard work pays off is a valuable lesson. But you also have to teach them that working hard doesn't mean they can have whatever they want. They must learn that they can only have what they can afford.</p> <p>In life, we don't always get what we deserve &mdash; good or bad. Sometimes life is unfair and we have to wait, work harder, or settle for an alternative. The quicker your kids learn this, the more content they will be in the long run. Teaching them to focus on and be grateful for what they do have in lieu of what they don't have or what everyone else has is far more valuable than getting them everything their tiny hearts desire. Helping them develop self-governance and the ability to tell themselves no is more valuable than a giving them a hefty trust fund.</p> <h2>Opportunity cost</h2> <p>Making kids contribute to their living expenses helps teach them about opportunity cost. That lesson is all about being able to pause, weigh all of the options, and make a rational decision. They have to learn that if you have $5 and spend it all on candy, you can't also get a toy. The concept of delayed gratification will slowly be seared into their tiny minds and help them become less impulsive. Even kids who are impulsive by nature will learn (with your guidance) how to stop and consider what else they may want to do with their money.</p> <p>Teaching your kids about opportunity cost also helps them to become rational decision makers. When you make each transaction more about business and less about emotions, they will learn how to make purchases using logic and practicality. You have to model for them how to talk themselves through paying bills and making purchases. When you ask them questions and help them view money objectively, you will help reduce feelings of buyer's remorse and they will become confident in their financial decision-making.</p> <p>In the end, you may not agree with Evans' approach, but you must appreciate and applaud her moxie. Your value system may not allow you to charge your kids rent, but it's important to find some system that can ingrain these lessons into your kids.</p> <p>Fiscal responsibility is one of the greatest things you can teach your children. Failing to teach them how to handle and relate to money will create a type of poverty in them than no amount of money can fix.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fshould-you-make-your-young-kids-pay-rent&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FShould%2520You%2520Make%2520Your%2520Young%2520Kids%2520Pay%2520_Rent__.jpg&amp;description=Should%20You%20Make%20Your%20Young%20Kids%20Pay%20%22Rent%3F%22"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Should%20You%20Make%20Your%20Young%20Kids%20Pay%20_Rent__.jpg" alt="Should You Make Your Young Kids Pay &quot;Rent?&quot;" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/denise-hill">Denise Hill</a> of <a href="http://www.wisebread.com/should-you-make-your-young-kids-pay-rent">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-best-sites-to-help-your-kids-learn-about-money">8 Best Sites to Help Your Kids Learn About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-frugal-living-skills-you-should-be-teaching-your-children">7 Frugal Living Skills You Should Be Teaching Your Children</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family allowance children financial responsibility kids money lessons parenting paying bills rent Tue, 06 Mar 2018 09:30:14 +0000 Denise Hill 2111218 at http://www.wisebread.com How to Help Your Adult Children Become Financially Independent http://www.wisebread.com/how-to-help-your-adult-children-become-financially-independent <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-help-your-adult-children-become-financially-independent" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/girl_with_her_dreams.jpg" alt="Girl with her dreams" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Are your adult children still living at home? Are you sending checks to your post-college sons or daughters to help them pay their student loans, car payments, or cellphone bills? If so, you have adult kids who haven't yet become financially independent.</p> <p>It isn't uncommon for parents to help their grown children with money matters. The problem is how quickly this can stunt a young adult's financial independence. If you've been supporting your adult kids financially, you may need to make some lifestyle changes to help your children break away from the comfort of your bank account. (See also: <a href="http://www.wisebread.com/how-to-raise-your-kids-to-be-financially-independent?ref=seealso" target="_blank">How to Raise Your Kids to Be Financially Independent</a>)</p> <h2>1. Don't bottle up your feelings</h2> <p>Are you frustrated that your adult children eat your food, throw their dirty laundry in your hamper, and fall asleep on your couch in the middle of the day? Express yourself.</p> <p>You aren't required to help your adult children financially or provide them a free place to stay, and it's understandable if this is making you unhappy. Make it clear that this is only a temporary situation. And while changes aren't likely to happen overnight, a conversation will get the ball rolling. Sit down with your kids and form a plan for how they are going to move toward financial independence over the next three months. (See also: <a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids?ref=seealso" target="_blank">7 Money Conversations Parents Should Have With Their Adult Kids</a>)</p> <h2>2. Change the expectations</h2> <p>Forming that plan also means setting the right expectations. Explain that your adult children need to do something to earn your largesse. If you are providing them with a free place to live, for instance, make it clear to them that they must do their own laundry, chip in for buying groceries, pay at least some rent, and help with other household chores.</p> <h2>3. Teach them about budgeting</h2> <p>The quickest way to financial independence is to learn how to spend money wisely. Your adult children won't be able to do this if they don't know how to create a household budget.</p> <p>Help them create a list of monthly expenses; ones that don't fluctuate, those that do, and those that are discretionary. Next, have them list their monthly income. This will show your kid how much money they have coming in, and how much is going out. They can better figure out how much to stash away in savings or spend on rent, if they are ready to move out.</p> <p>With a budget guiding them, it is far less likely that your adult children will run into the financial trouble that might land them back on your doorstep. (See also: <a href="http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget?ref=seealso" target="_blank">How to Help Your Kid Build Their First Budget</a>)</p> <h2>4. Help them learn how to use a credit card</h2> <p>A strong credit score is essential. Lenders use this number to determine if you can get a loan or credit card, and at what interest rate. Your adult children will need to establish their own credit history to build strong credit scores. And a higher credit score will help them become financially independent.</p> <p>The problem many young adults face is that they haven't built up enough of a credit history to have a strong credit score. In some cases, they may not have a credit score yet at all. You can help your kids build a credit score by teaching them how to properly use a credit card.</p> <p>The key is for your kids to pay their credit card bills on time and in full every month. As a parent, you can teach your adult children how important using credit wisely can be to becoming financially independent. (See also: <a href="http://www.wisebread.com/how-to-use-credit-cards-to-improve-your-credit-score?ref=seealso" target="_blank">How to Use Credit Cards to Improve Your Credit Score</a>)</p> <h2>5. Teach them about wants and needs</h2> <p>Your adult children might want the latest iPhone. But they don't necessarily need it. Teach your children the difference between spending on necessities &mdash; food, rent, transportation to and from work &mdash; and on toys such as high-tech smartphones, the latest laptops, and expensive clothes.</p> <p>If your children are relying on you for financial assistance, they shouldn't be buying the most expensive new electronics and fashions on the market. Make sure your children know that your financial support isn't intended to fund their more frivolous purchases. (See also: <a href="http://www.wisebread.com/4-things-you-should-make-your-adult-child-pay-for?ref=seealso" target="_blank">4 Things You Should Make Your Adult Child Pay For</a>)</p> <h2>6. Set limits</h2> <p>If you want you kids to only spend the money you give them on necessities like rent and transportation, make this clear. Determine how much they will need to spend on items such as monthly train passes, rent, or groceries. Only give them the financial assistance they need to pay for these items.</p> <p>If your adult children want to spend on other items such as entertainment or electronics, they'll have to earn that money on their own.</p> <h2>7. Work up an end date</h2> <p>Finally, set a date with your adult kids for when your financial assistance will come to an end. Helping an adult child financially shouldn't be a lifelong commitment on your part. You might decide, for instance, to give your children six months to find a place to live and a job that pays enough to cover the rent.</p> <p>Your end date might not actually be tied to a date. Maybe instead, you'll determine that your financial assistance will end once your children find that higher-paying job they need.</p> <p>However you set it up, make it clear that your financial help does have a time limit. Without one, your kids might not be motivated to move on from your monetary support.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fhow-to-help-your-adult-children-become-financially-independent&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520to%2520Help%2520Your%2520Adult%2520Children%2520Become%2520Financially%2520Independent.jpg&amp;description=How%20to%20Help%20Your%20Adult%20Children%20Become%20Financially%20Independent"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Help%20Your%20Adult%20Children%20Become%20Financially%20Independent.jpg" alt="How to Help Your Adult Children Become Financially Independent" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/how-to-help-your-adult-children-become-financially-independent">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-things-you-should-make-your-adult-child-pay-for">4 Things You Should Make Your Adult Child Pay For</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids">7 Money Conversations Parents Should Have With Their Adult Kids</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-to-make-before-moving-out-on-your-own">5 Money Moves to Make Before Moving Out on Your Own</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family adult children bills budgeting communication financial independence kids money lessons responsibility student loans young adults Mon, 12 Feb 2018 09:30:06 +0000 Dan Rafter 2097696 at http://www.wisebread.com 4 Ways to Help Your Adult Kids and Still Save for Retirement http://www.wisebread.com/4-ways-to-help-your-adult-kids-and-still-save-for-retirement <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-ways-to-help-your-adult-kids-and-still-save-for-retirement" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/girl_in_shopping.jpg" alt="Girl in shopping" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's natural to want to help your adult children financially, whether it's giving them cash for a down payment on a home, or helping them pay off their student loan debt.</p> <p>But don't make the mistake of shorting your own retirement funds while doing this. Your financial priority should be saving enough for <em>your </em>after-work years. If you want to help your adult children, too, that's fine &mdash; but only if you can afford to, and only if you set limits.</p> <p>Here are several rules you should follow when giving your grown children financial assistance.</p> <h2>Check your budget first</h2> <p>Student loan debt continues to grow for young people. According to data from the Federal Reserve Bank of New York, the national outstanding student loan debt stood at $1.36 trillion as of Sept. 30, 2017.</p> <p>It's tempting for parents to help their children with monthly student loan payments, especially if their children are recent grads still trying to find good jobs. But before you start helping your kids pay back those loans, take a close look at your own household budget to make sure that you can afford to help.</p> <p>Your budget should include the money you bring in each month and the money that goes out, including your spending on variable items like groceries, entertainment, and dining out. It should also include the money you need to put away each month for your retirement. If helping your children financially will cut into those retirement savings, either don't provide the help, or offer your adult children a smaller amount of money.</p> <p>If you discover that helping out will bust your budget altogether, don't do it. Hurting your own financial situation won't help anybody. (See also: <a href="http://www.wisebread.com/are-you-ruining-your-retirement-by-spoiling-your-kids?ref=seealso" target="_blank">Are You Ruining Your Retirement by Spoiling Your Kids?</a>)</p> <h2>Consider giving loans, not gifts</h2> <p>Sometimes the best way to give your adult children financial support is to ask that they pay you back over time. Don't feel bad about helping your children with a loan instead of a gift &mdash; it's not unreasonable to ask your kids to pay you back, perhaps on a monthly repayment schedule that they can afford. If your children can't afford to pay you back now, agree that they will start repaying you once they land a better-paying job.</p> <p>If your adult kids are buying a home, giving them money gets a little more complicated. If you <em>gift</em> your children money for a down payment, they will need to be able to prove to their mortgage lender that the money is a gift, and provide a letter detailing that it does not need to be paid back.</p> <p>Then, there's the issue of gift tax liability: The annual gift tax exclusion is $15,000 per recipient. Giving your child anything beyond that means you will have to report it on Form 709 of your taxes. However, that doesn't mean you'll pay the gift tax right away. You can apply the gift toward your lifetime exclusion of $5.6 million in combined estate/gift tax exemption. Also note that <em>each</em> parent could gift $15,000 to their child <em>and</em> $15,000 to their child's spouse for a total of $60,000, before having to report the gifts to the IRS.</p> <p><em>Loaning</em> your adult children a large sum for a down payment will also come under scrutiny by the IRS. If a formal arrangement is not made, and interest is not being paid, the IRS will view the funds as a gift and subject it to the gift tax rules outlined above. For a loan, a promissory note between you and your adult children should lay out the terms, including interest rate, repayment schedule, and any collateral. The interest rate on the loan should be at least as high as the applicable federal rates set by the IRS, or there could be further tax complications.</p> <p>Of course, if you can't afford to either loan or give your child money for a down payment, don't. Instead, encourage your kid to hold off on purchasing a home until they have saved enough money to cover the down payment on their own. (See also: <a href="http://www.wisebread.com/4-easy-ways-to-start-saving-for-a-down-payment-on-a-home?ref=seealso" target="_blank">4 Easy Ways to Start Saving for a Down Payment on a Home</a>)</p> <h2>Expect something in return</h2> <p>If you're helping your adult children financially, it's OK to expect something in return. Adults still living in their parents' home should be expected to pay at least a token amount of monthly rent. They should also help pay for groceries and utility bills.</p> <p>Asking for rent or other payments isn't selfish on your part. Instead, you're reinforcing that your adult children are, indeed, adults. Being an adult comes with financial responsibilities, and it's an important lesson for your kids to learn. You don't have to charge a lot of rent, but charge something. Doing so could be one step toward turning your children into financially responsible adults. (See also: <a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids?ref=seealso" target="_blank">7 Money Conversations Parents Should Have With Their Adult Kids</a>)</p> <h2>Spell out wants versus needs</h2> <p>Finally, make sure that when you help your adult children financially, you are helping them with something they truly need versus something they want. It's one thing to help your kid pay their student loans. It's another to help them buy the latest smartphone. It's OK if your children don't have the most powerful laptop or an expensive car. They can get those things after they've saved and built up their own financial health.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-ways-to-help-your-adult-kids-and-still-save-for-retirement&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Ways%2520to%2520Help%2520Your%2520Adult%2520Kids%2520and%2520Still%2520Save%2520for%2520Retirement.jpg&amp;description=4%20Ways%20to%20Help%20Your%20Adult%20Kids%20and%20Still%20Save%20for%20Retirement"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Ways%20to%20Help%20Your%20Adult%20Kids%20and%20Still%20Save%20for%20Retirement.jpg" alt="4 Ways to Help Your Adult Kids and Still Save for Retirement" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/4-ways-to-help-your-adult-kids-and-still-save-for-retirement">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-ruining-your-retirement-by-spoiling-your-kids">Are You Ruining Your Retirement by Spoiling Your Kids?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-to-do-if-youre-retiring-with-debt">What to Do If You&#039;re Retiring With Debt</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids">7 Money Conversations Parents Should Have With Their Adult Kids</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-help-your-adult-children-become-financially-independent">How to Help Your Adult Children Become Financially Independent</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-of-the-fastest-ways-to-go-broke-in-retirement">4 of the Fastest Ways to Go Broke in Retirement</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Family Retirement adult children budgets charing rent down payments giving money kids loaning money wants vs needs Tue, 06 Feb 2018 09:00:06 +0000 Dan Rafter 2093195 at http://www.wisebread.com How to Afford Your Kid's Braces or Expensive Dental Care http://www.wisebread.com/how-to-afford-your-kids-braces-or-expensive-dental-care <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-afford-your-kids-braces-or-expensive-dental-care" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/brushing_our_teeth_is_fun.jpg" alt="Brushing our teeth is fun" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>At their six-month dental checkup earlier this year, both of my sons received the dreaded diagnosis: Each one had a cavity in a baby tooth that would need to be filled.</p> <p>In addition to feeling like a terrible parent, I was also not looking forward to having to pay for their fillings. Our family dentist wasn't set up to handle fillings for two squirmy young patients, and the pediatric dentist she referred us to did not accept our dental insurance.</p> <p>Thankfully, my husband and I have an emergency fund for such an occasion, but not every parent is as fortunate. Taking care of your kids' teeth doesn't have to bankrupt you, even if they do need costly dental care or treatment.</p> <p>I talked to Marissa Miller, DDS, of Shelby, Ohio, to find out what parents need to know about affording expensive dental care for their kids.</p> <h2>1. Preventive care is always cheaper than treating problems</h2> <p>According to Dr. Miller, &quot;To mitigate the costs of dental procedures, my first piece of advice is have kids see the dentist early and regularly.&quot; There are two reasons for this. First, kids who get used to seeing the dentist early in their lives are less likely to develop phobias that will keep them from seeing the dentist later on.</p> <p>This leads to the second reason why it's important to get your kids used to seeing the dentist early and often: It's much less expensive to have biannual tooth cleanings than it is to deal with an entrenched problem.</p> <p>Even if your child does have a dental problem that will need treatment, finding it sooner rather than later will generally be easier on your wallet. &quot;Having your kids come to the dentist at regular intervals also gives us a chance to catch any problems &mdash; such as tooth decay, narrow palate, etc. &mdash; early on,&quot; Dr. Miller says. &quot;And catching problems in an early stage almost always leads to less costly treatment.&quot;</p> <h2>2. Some common pediatric dental procedures can be surprisingly expensive</h2> <p>Most parents are well aware of the fact that orthodontics (i.e., braces, retainers, and other tooth-straightening tools) are expensive. According to the 2013 Survey of Dental Fees, comprehensive orthodontic treatment for adolescents ranged in price from $4,685 to $6,500.</p> <p>However, parents may not be aware of the fact that other common dental procedures can also cost a pretty penny. Specifically, when there is a great deal of tooth decay in baby teeth, the treatment can be expensive. According to Dr. Miller, &quot;When deep cavities occur in children between roughly three and nine years of age, the costs of restoring those teeth can add up quickly. Fillings, stainless steel crowns, and pulpotomies (similar to root canal therapy but usually just for primary or 'baby' teeth) can all be called for in order to keep those teeth in working order.&quot; (See also: <a href="http://www.wisebread.com/how-to-handle-a-massive-medical-bill?ref=seealso" target="_blank">How to Handle a Massive Medical Bill</a>)</p> <h2>3. Don't let cost keep you from getting treatment</h2> <p>Parents might assume that dental care for their kids is more cosmetic than necessary. After all, baby teeth will eventually be replaced with adult chompers, and orthodonture is an expensive procedure that just provides a straight-toothed smile. The high cost for something that feels unnecessary might tempt some parents to put off the treatment while they get their financial ducks in a row.</p> <p>Dr. Miller warns against that: &quot;The whole point of trying to keep these primary [baby] teeth until they're ready to exfoliate naturally is that they are the placeholders of the adult teeth. If primary teeth are taken out early, it is common for the adult teeth to erupt in severe misalignment, resulting in a more urgent and comprehensive need for orthodontic care.&quot;</p> <p>Similarly, while straightening adult teeth for cosmetic reasons is part of the rationale for orthodontic care, it's hardly the whole reason. Properly aligned teeth promote good oral health overall &mdash; which is necessary for whole body health.</p> <h2>4. Your dentist wants to help you find a payment plan</h2> <p>Despite what you may remember from Steve Martin's portrayal of Dr. Scrivello in<em> Little Shop of Horrors</em>, you can rest assured that real dentists get into their practices because they truly want to help people. That means they want to see their patients get necessary treatment &mdash; and they will try to find a way to work with you on a payment plan. (See also: <a href="http://www.wisebread.com/7-ways-to-negotiate-medical-bills?ref=seealso" target="_blank">7 Ways to Negotiate Medical Bills</a>)</p> <p>According to Dr. Miller, a lot of dental offices offer a variety of payment options. In particular, she recommends asking about the following:</p> <ul> <li> <p>Cash discounts. If you're prepared to pay the full case fee up front, ask about this option, especially if the cost of the procedure is over $1,000.</p> </li> <li> <p>Third-party financing. With third-party financing, you can use something that works basically like a dental care credit card to pay for your procedure. Many of these financing companies offer you interest-free payment periods of up to 12 months. Dr. Miller describes third-party financing as &quot;nearly universal,&quot; so feel free to ask your dentist about which company they use.</p> </li> <li> <p>Payment plans. Some dentists will allow you to split payments over several months interest-free, although you will generally be expected to have a credit card on file and a history with the practice for your dentist to agree to this. Orthodontists offer payment plans more often than general dentists due to the nature of their treatment plans and fees.</p> </li> </ul> <h2>5. Financial assistance is available</h2> <p>Families who simply do not have the financial ability to pay for their children's dental or orthodontic care can apply for financial assistance. The National Children's Oral Health Foundation (NCOHF, but also known as America's ToothFairy) offers access to dental care to underserved children. If you are unable to afford a specific dental treatment for your child, you can apply for funds from NCOHF through their <a href="http://www.ncohf.org/our-programs/access-care-programs/in-the-gap-program/" target="_blank">In the Gap</a> program.</p> <p>In addition, <a href="https://www.aaoinfo.org/donated-orthodontic-services" target="_blank">Donated Orthodontic Services</a>, sponsored by the American Association of Orthodontists, offers pro-bono and low-cost orthodontic services to children of families who cannot afford the regular cost of orthodonture. The nonprofit program <a href="https://www.smileschangelives.org/" target="_blank">Smiles Change Lives</a> also offers low-cost or free orthodontic services to kids in need.</p> <h2>Neglect is more expensive than dentistry</h2> <p>Watching your children undergo dental work is no one's idea of fun &mdash; and having to pay big bucks for it can feel like adding insult to injury. But making sure your kids' pearly whites stay healthy and straight will put them on the road to good oral health for years to come.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/how-to-afford-your-kids-braces-or-expensive-dental-care">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-handle-a-massive-medical-bill">How to Handle a Massive Medical Bill</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-alternatives-to-charging-your-medical-bills">5 Alternatives to Charging Your Medical Bills</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-ways-to-get-a-good-workout-even-with-kids-around">10 Ways to Get a Good Workout... Even With Kids Around</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-sell-your-house-despite-your-messy-kids">How to Sell Your House Despite Your Messy Kids</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Family Health and Beauty braces cavities children dentists health care kids medical bills orthodontics payment plans preventative care tooth care Tue, 02 Jan 2018 09:30:09 +0000 Emily Guy Birken 2077706 at http://www.wisebread.com How to Sell Your House Despite Your Messy Kids http://www.wisebread.com/how-to-sell-your-house-despite-your-messy-kids <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-sell-your-house-despite-your-messy-kids" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/curly_little_boy_playing_with_toy_cars.jpg" alt="Curly little boy playing with toy cars" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It takes a lot of moving parts to sell a home, and it can be frustrating when one or more of those moving parts just won&rsquo;t sit still. I&rsquo;m talking about kids. Kids who, despite your best efforts to present your home in its optimal condition, don&rsquo;t give a good gosh-darn that Mommy and Daddy are trying to make a sale.</p> <p>But there&rsquo;s still hope. As the old saying goes, if you can&rsquo;t beat &rsquo;em (and you definitely cannot), join &rsquo;em &mdash; with these helpful tips on how to sell your house despite your messy kids.</p> <h2>Conduct a purge before the house goes on the market</h2> <p>Your house is for sale, which means you&rsquo;re probably moving soon. Now is the best time to cut your clutter so you don&rsquo;t have to drag all that junk from one house to another. Set a week aside to organize your purge, then pack up and ship out whatever you don&rsquo;t want or need anymore.</p> <p>&ldquo;We end up with a lot of baggage over the course of our lives, and while a lot of these items have sentimental value, that's about the only thing they're worth,&rdquo; says Texas realtor Abigail Vytlacil. &ldquo;Donate what you can, toss what you can't. Then, pare your home's contents down even more by storing anything and everything that isn't being used. Surfboards, bikes, winter clothes, baseball uniforms and equipment, golf clubs &mdash; get as much as you can out of the way, out of the house, as possible.&rdquo; (See also: <a href="http://www.wisebread.com/my-16-favorite-ways-to-get-rid-of-clutter?ref=seealso" target="_blank">My 16 Favorite Ways to Get Rid of Clutter</a>)</p> <h2>Have the house professionally cleaned</h2> <p>Kids or not, a well lived in home has years of dust and dirt buildup in the corners and hard to reach places. A deep clean will give that extra sparkle to impress buyers. While it is more expensive to hire a professional cleaning service than doing it yourself, it&rsquo;s better. It&rsquo;s hassle-free for you, and you can take the little ones out for the day while the service works their magic. You'll get to spend quality time with your kids instead of screaming at the little buggers because they keep tracking mud across the floor you&rsquo;ve freshly mopped.</p> <p>At the same time, have the carpets cleaned. Removing stains and odors from the carpets is just as important as anything else you&rsquo;ll beautify in the house to make a good impression.</p> <h2>Touch up or repaint the walls and doors in high-traffic areas</h2> <p>A little paint goes a long way to freshen up walls, doors, and baseboards that have encountered your children and pets over the years. You may not even notice how grimy these areas have become, but get up close and you&rsquo;ll agree that they need tending to. (See also: <a href="http://www.wisebread.com/4-paint-colors-that-can-boost-your-homes-value?ref=seealso" target="_blank">4 Paint Colors That Can Boost Your Home's Value</a>)</p> <h2>Organize cabinets and closets</h2> <p>Buyers will absolutely want to look in your cabinets and closets to get a good idea of what kind of space they have to work with. So, take the time to tidy these areas up. Fold and organize the clothing in the closets (a good time to eliminate clutter here, too; donate whatever your kids haven&rsquo;t worn in awhile or items that no longer fit), and get rid of any expired foods and open bags/containers in the pantry. Streamline the contents of your kitchen cabinets &mdash; toss dishes you don&rsquo;t use or that your kids have outgrown &mdash; to make the shelves more aesthetically appealing at quick glance.</p> <h2>Concentrate on areas to clean based on the type of buyer</h2> <p>If the potential buyers stopping by for a showing are not parents, concentrate on cleaning up the areas that have your kids&rsquo; proverbial handiwork all over them. These buyers want to know what the house will look and feel like for them, not a family of four. Likewise, if you&rsquo;re showing to parents, focus more on the family gathering places that will be most important to them.</p> <p>&ldquo;If something is going to be messy, let it be the children's actual rooms that are messy,&rdquo; adds Michigan-based real estate broker Jon Boyd. &ldquo;I've never had buyers not buy a home because of the condition of the children's bedrooms. However, if there is junk or clutter in the kitchen, bathrooms, dining areas, and living areas, it is going to be a challenge.&rdquo;</p> <h2>Draw buyers&rsquo; attention away from problem areas</h2> <p>Open your blinds and curtains to let in the sunshine; many buyers are attracted to how well a home receives natural light, and that may distract them from your kids&rsquo; belongings lying around. Create focal points in the least attractive rooms using art, flowers, or mirrors, the latter of which can also help seemingly expand the space through optical illusion. Whatever works. (See also: <a href="http://www.wisebread.com/8-ways-to-stage-your-home-without-hiring-a-pro?ref=seealso" target="_blank">8 Ways to Stage Your Home Without Hiring a Pro</a>)</p> <h2>Offer incentives to your kids for keeping their rooms clean</h2> <p>Yes, I&rsquo;m telling you to bribe your children. Increase their allowance for helping you keep the house extra tidy. The end result will pay off much bigger than the extra few bucks you&rsquo;re shelling out per week to keep your kids in line.</p> <h2>Keep the kids&rsquo; rooms brightly lit</h2> <p>If you don&rsquo;t have a magic wand to send all your kids&rsquo; bedroom junk back under the bed, use a light bulb.</p> <p>&ldquo;Make sure the light switch near the door works in the kid's bedrooms, and make sure it is a reasonably bright bulb,&quot; Boyd suggests. &ldquo;A well lit but messy bedroom won't stop a motivated buyer, but a poorly lit messy bedroom might give them second thoughts.&rdquo;</p> <h2>Use totes to pick up and store clutter in a flash</h2> <p>If you&rsquo;re short on time before a showing and everything your kids own is spread across your house, use totes to quickly gather up the mess and toss them in the garage, basement, or attic. This smarty-pants tip is courtesy of realtor Denise Supplee, co-founder and operations director of Spark Rental.</p> <p>&ldquo;I tell clients to purchase a bunch of non-see-through totes,&rdquo; she says. &ldquo;Keep them on hand. Have your agent provide you a heads-up of showings of an hour or so. Take everything that is on the floor, tables, beds, and throw it in the totes. Stack them neatly. People will expect to see them because you are moving.&rdquo;</p> <h2>Set specific times for showings so you can always prepare in advance</h2> <p>You&rsquo;ll have a better chance of keeping the familial chaos under control if you discuss with your realtor a set schedule for showings, with available times on weekdays and weekends. If you know that there will be showings on Sundays from noon to 2 p.m. and Wednesdays from 6 to 7 p.m., for example, you can plan ahead and stay prepared.</p> <h2>Enlist help to get the kids out of the house</h2> <p>It&rsquo;s difficult to get the joint spick-and-span when your kids are coming right behind you to mess up what you&rsquo;ve done. Why not pawn them off on their grandparents or a favorite aunt or uncle for the afternoon? They&rsquo;ll get to spend time with someone they enjoy (and probably enjoy being a little spoiled), and you can focus on your long list of showing-prep to-dos.</p> <h2>Create a &quot;buyer&rsquo;s book&quot; to showcase what you love about your home</h2> <p>If you don&rsquo;t have time to douse the house in bleach or make it look like the maid just left, fortify your efforts with a book of photos of your home looking its best &mdash; including before and after pictures if you&rsquo;ve made any improvements &mdash; to help buyers see the home&rsquo;s full potential.</p> <p>&ldquo;Add a little extra to your showings by creating a listing binder or 'buyer's book' that showcases why you've loved the home, what it's like living in the area, things your family likes to do, and other pertinent information to a new homeowner like average utilities, association dues, and anything else that would help them make an informed decision faster,&rdquo; says Vytlacil. &ldquo;It may seem trivial, but you'd be surprised at how much these little touches affect a prospective buyer.&rdquo;</p> <h2>Let your family come and go using one door</h2> <p>You&rsquo;ll reduce your cleaning workload substantially if you restrict your family&rsquo;s access to the home to one entrance while it&rsquo;s on the market. Fewer paths of entry equates to less dirt and outside gunk tracked into your home from multiple directions.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fhow-to-sell-your-house-despite-your-messy-kids&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520to%2520Sell%2520Your%2520House%2520Despite%2520Your%2520Messy%2520Kids.jpg&amp;description=How%20to%20Sell%20Your%20House%20Despite%20Your%20Messy%20Kids"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Sell%20Your%20House%20Despite%20Your%20Messy%20Kids.jpg" alt="How to Sell Your House Despite Your Messy Kids" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/how-to-sell-your-house-despite-your-messy-kids">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-to-stage-your-home-without-hiring-a-pro">8 Ways to Stage Your Home Without Hiring a Pro</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-easy-ways-to-keep-your-family-organized">8 Easy Ways to Keep Your Family Organized</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-fun-games-that-teach-your-kids-about-money">6 Fun Games That Teach Your Kids About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-make-your-young-kids-pay-rent">Should You Make Your Young Kids Pay &quot;Rent?&quot;</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Family Real Estate and Housing children cleaning clutter homeowners kids messy organizing painting selling a home strategies Wed, 20 Dec 2017 09:30:09 +0000 Mikey Rox 2073560 at http://www.wisebread.com 6 Smart Financial Gifts to Give Your Kids This Year http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-smart-financial-gifts-to-give-your-kids-this-year" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mother_and_daughter_with_piggy_bank.jpg" alt="Mother and daughter with piggy bank" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>American poet Maya Angelou said it best: &quot;When you know better, you do better.&quot; The earlier that your kids develop good financial habits, the brighter their financial future will be.</p> <p>With the holidays right around the corner, now is the perfect time to set your sights on one or more of these financial gifts that will help your kids learn about, respect, and appreciate money.</p> <h2>1. Monopoly</h2> <p>Since 1935, this classic board game has entertained millions of people around the world. Turns out that playing rounds with &quot;Monopoly money&quot; can actually help build real life financial skills, such as negotiation, money management, and diversification. Plus, a round of Monopoly is a good way to practice arithmetic and social skills. (See also: <a href="http://www.wisebread.com/holiday-gifts-6-fun-games-that-teach-money-and-finance?ref=seealso" target="_blank">Holiday Gifts: TK Fun Games That Teach Money and Finance</a>)</p> <h2>2. Custodial investment account</h2> <p>Most brokerage firms offer a custodial account that allows children to get a first taste of investing in the stock market under the supervision of a parent or guardian. With as little as $100, you could open a custodial account and let your kid make decisions about what stocks to hold or sell.</p> <p>In 2017, you can contribute up to $14,000 to a custodial account and still avoid gift taxes. In 2018, the annual federal gift exclusion moves up to $15,000. Your kid's custodial account is under your control until your kid legally becomes an adult, which happens somewhere between age 18 and 21, depending on your state's rules.</p> <p>A custodial investment account is a great way to get your child excited about investing and let them learn from firsthand experience how the stock market works. (See also: <a href="http://www.wisebread.com/5-stocks-your-kids-would-love-to-own?ref=seealso" target="_blank">5 Stocks Your Kids Would Love to Own</a>).</p> <h2>3. Custodial Roth IRA</h2> <p>If your kid is already working a summer job or earning income from their own business, consider setting up a custodial Roth IRA for them. In 2017 and 2018, individuals may contribute up to $5,500 to a custodial Roth IRA. Here are a couple of reasons why this is a good idea:</p> <ul> <li> <p>Your child will have the same contribution limit as an adult, making it a real-life lesson in cultivating a good savings habit.</p> </li> <li> <p>Your child can get close to a decade of extra compounding interest for their nest egg.</p> </li> <li> <p>By taking the tax hit now, your child's retirement savings will grow tax-free forever.</p> </li> <li> <p>Your child will have another &quot;sandbox&quot; in which to make real-life decisions with investments.</p> </li> </ul> <p>Just imagine if <em>you </em>knew how life-changing investing in equities could be at such a young age.</p> <p>That alone may be the best financial gift for your kid this holiday season! (See also: <a href="http://www.wisebread.com/10-investing-lessons-you-must-teach-your-kids?ref=seealso" target="_blank">10 Investing Lessons You Must Teach Your Kids</a>)</p> <h2>4. 529 savings plan</h2> <p>The average class of 2016 graduate left school with $37,172 in student loan debt. If you could do something now to help prevent your kid from having to take out such costly student loans, that would certainly be a gift worth giving. The good news is you <em>can</em> do this by starting a 529 college savings plan. Eligible education expenses under a 529 plan go beyond tuition and academic fees and include expenses for room and board, transportation, equipment, and accommodations for individuals with special needs.</p> <p>Contributions to a 529 plan grow tax-free and the money is not taxed when it's withdrawn to pay for college expenses. In addition to federal tax savings, more than 30 states currently offer a full or partial tax deduction or credit for 529 plan contributions. (See also: <a href="http://www.wisebread.com/the-9-best-state-529-college-savings-plans?ref=seealso" target="_blank">The 9 Best State 529 College Savings Plans</a>)</p> <h2>5. Cash</h2> <p>Yup, cash is still king. Regardless of their age, your kid will always love receiving a few bills as a gift. The main reason to gift cash during the holiday season is that it opens the door to have an ongoing conversation with your kids about budgeting. With a cash gift, you'll have plenty of chances to talk about what they're planning to buy, what they actually purchase, and how much money they have left. From there, you can start making it a habit to sit down with your son or daughter to talk about finances on a weekly or Bi-Weekly basis. It's a good time to catch up about other non-related finance topics as well. (See also: <a href="http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget?ref=seealso" target="_blank">How to Help Your Kid Build Their First Budget</a>)</p> <h2>6. Checking account with debit card and checkbook</h2> <p>Of course, this would be a great place for any cash gifts that your son or daughter receives from relatives and friends during the holidays (and throughout the year).</p> <p>While a checking account may not be as exciting as a new Xbox or bike, you can be sure that this gift is the one that your child will be using for the longest time. It's important that your kids start to build experience managing a checking account so they understand how to pay for everyday expenses, build a monthly budget, and safely use debit cards. By covering the ins and outs of how a checking account works when they're young, your kid will have one less thing to stress about as they get a little older or go off to college.</p> <p>No matter what your child's plans are, anyone can benefit from learning how to use a debit card, write checks, access an online account portal, and read a checking account statement.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-smart-financial-gifts-to-give-your-kids-this-year&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Smart%2520Financial%2520Gifts%2520to%2520Give%2520Your%2520Kids%2520This%2520Year.jpg&amp;description=6%20Smart%20Financial%20Gifts%20to%20Give%20Your%20Kids%20This%20Year"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Smart%20Financial%20Gifts%20to%20Give%20Your%20Kids%20This%20Year.jpg" alt="6 Smart Financial Gifts to Give Your Kids This Year" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-how-late-starters-can-save-for-their-kids-education">Here&#039;s How Late Starters Can Save for Their Kids&#039; Education</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-fun-games-that-teach-your-kids-about-money">6 Fun Games That Teach Your Kids About Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family 529 plans budgeting cash checking accounts children Christmas custodial roth ira financial gifts games Holidays investing kids Fri, 01 Dec 2017 09:00:06 +0000 Damian Davila 2064624 at http://www.wisebread.com 21 Things You Should Make Your Kids Pay For http://www.wisebread.com/21-things-you-should-make-your-kids-pay-for <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/21-things-you-should-make-your-kids-pay-for" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/beautiful_little_girl_with_lollipop.jpg" alt="Beautiful little girl with lollipop" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Whether they receive it from relatives on birthdays, from you in the form of allowance, or from working once they're old enough to do so, most kids have some access to cash. And yet, many parents still find themselves paying for every little thing kids get, letting their money pile up in their piggy banks.</p> <p>As a mom of three, I have a few reasons for making my kids spend their own money on certain things. First, I like them to learn early on that every financial decision is a trade-off. Going to the movies on Saturday might mean not buying an after-lunch treat at school on Monday, for example. Second, I don't want to constantly get called upon to make yes/no purchasing decisions, or listen to whining. Third, kids who need money are a lot more likely to work, and working around the house helps me out, while working outside the house helps them develop valuable skills. (Whether you tie chores to allowance is a whole other ball of wax. At my house, allowance isn't direct pay for chores, but you can't receive your allowance if you're not a household member in good standing, which includes having chores done.) Finally, making kids use their own funds teaches them to plan ahead. &quot;Are you going to want ice cream at the beach? Bring your money. Carry it in a way that you won't lose it.&quot;</p> <p>Now, I'm not about to ask the kids to use their personal funds for groceries or rent, but there are plenty of items they should buy themselves. Here are some expenses kids can take over, divided by age group.</p> <h2>Little kids</h2> <p>My children started making their own purchases before they were in elementary school. However, I limited the things preschoolers had to buy for themselves to small luxuries. After all, a four-year-old is quite likely to lose her money on the way to the checkout counter, so you're not going to put her in charge of much cash.</p> <h3>1. Treats</h3> <p>&quot;Mom, the ice cream truck, the ice cream truck, <em>the ice cream truck</em>!&quot;</p> <p>My kids go into a Pavlovian frenzy at the sound of that music, and no econ lecture from me will ever convince them that they could get a lot more value for their money in the freezer section of the grocery store. From an early age, the ice cream truck was a pay-for-yourself proposition at our house. One unexpected benefit of this policy is that my kids spontaneously started buying for their siblings, if they had money and the others didn't.</p> <h3>2. Souvenirs</h3> <p>Whether it's a trip to the local children's museum or a flight around the world, travel is full of shopping opportunities. To prevent fun trips from turning into begging fests, I remind my kids to pack their own wallets as we head out the door. Having to be choosy about souvenirs will also prevent your house from filling up with clutter.</p> <h3>3. Toys</h3> <p>Saving up for a toy has been a rite of passage in our family, one not without its heartbreaks. I recently got rid of a big, fancy makeup case that had been around our house for about a decade, and my oldest and I reminisced about how excited she had been the day it was delivered to open it up and start applying makeup &mdash; and how disappointed she'd been that the play makeup it came with barely showed up on her skin at all. That kit had taken her months to save up for, and minutes to become disenchanted with. But that was just one of the many lessons kids learn by buying their own toys. (See also: <a href="http://www.wisebread.com/how-to-use-new-toys-to-teach-kids-about-money?ref=seealso" target="_blank">How to Use New Toys to Teach Kids About Money</a>)</p> <h2>Preteen</h2> <p>At some point around second or third grade, it clicks for most kids that they have the power to get stuff without taking no for an answer &mdash; by buying it themselves. A minor money-obsessed phase may ensue, but don't worry; eventually they'll get used to being consumers and drop the Scrooge McDuck routine. (See also: <a href="http://www.wisebread.com/10-fun-books-that-will-get-your-kids-excited-about-money?ref=seealso" target="_blank">10 Fun Books That Will Get Your Kids Excited About Money</a>)</p> <h3>4. Accessories</h3> <p>As a parent, it's your responsibility to make sure your child has something to wear to school and to keep them warm. But fancy barrettes? Earrings? Hair dye? That's on them.</p> <h3>5. Entertainment</h3> <p>Sometime during the middle-school grades, if my kid gets invited to go to the movies with friends, I start asking if they have enough money for the ticket. This is a decide-as-we go category, because some outings, like tickets to an amusement park, my kids just can't afford on their own. I will pay for those outings, if they really want to go. And if we go as a family, I pay.</p> <h3>6. Charity</h3> <p>The elementary years are a good age for the kids to start giving back. If you're out together and you see a collection bucket for the animal shelter, you can set a good example by putting some of your own money in the bucket &mdash; then ask them if they want to put in some of their own.</p> <h3>7. Anything they could get for free</h3> <p>If your kid wants a book, movie, or video game that could be checked out at the library for free instead, they should pay for it on their own. This is a good time to start learning the value/cost proposition of convenience. (See also: <a href="http://www.wisebread.com/7-modern-reasons-to-visit-your-local-library-today?ref=seealso" target="_blank">7 Modern Reasons to Visit Your Local Library Today</a>)</p> <h3>8. Fundraiser items</h3> <p>So far this fall, my kids have already participated in two kinds of popcorn sales and one candy and nut sale. Then there is the monthly order form for book sales that kick back a small portion to the school. Some parents don't let their kids buy sugary treats with their own money, but I'm fine with letting them help their own and their siblings' sales totals.</p> <h3>9. Treats for their own pets</h3> <p>When my daughter begged for a pair of hermit crabs, I agreed to buy her a tank and the animals if she promised to keep her room tidy for 100 days. She came through, and the animals came home. But part of the deal was that after the initial setup costs, she was responsible for buying their food, their water dechlorinator, and any decorative plants and rocks she felt they needed.</p> <p>Other parents might pay for the necessary supplies, but let kids spend their own money on treats and accessories. I feed our family cats, for instance, but my daughters didn't even bother asking me to pay for Halloween costumes for the cats, because they knew I'd say no. Poor Myrtle and Katie were then outfitted as mermaids for the holiday.</p> <h3>10. Business supplies</h3> <p>My fifth-grader recently got into the <a href="http://www.wisebread.com/23-recipes-for-slime-your-kids-can-make-and-even-sell?ref=internal" target="_blank">slime business</a>. At first, I thought she was just making slime for fun, and as she didn't have any money, I agreed to purchase the contact solution, shaving cream, glue, and other supplies she wanted. But then she came home with a fistful of cash, announcing that she had made it all selling her slime at school. I told her that was great, but that all further supplies must be paid for out of her revenue. She bought more supplies, sold more slime, and ended up using the profits to purchase a computer game, which I hadn't even known she'd wanted.</p> <p>The same rule applies for lemonade stands; they get the lemons from our tree, but they have to pay for the cups and sugar.</p> <p>This is really important, because understanding that profit only kicks in after you cover your costs is a fundamental business lesson. (See also: <a href="http://www.wisebread.com/13-businesses-your-tween-can-start?ref=seealso" target="_blank">13 Businesses Your Tween Can Start</a>)</p> <h3>11. Certain gifts</h3> <p>We don't give our kids money to shop for holiday and birthday gifts for family. If they don't have money, they can always make something.</p> <p>At this age, we still pay for the birthday gifts our kids bring to parties. However, there is an argument to be made for having kids pay or contribute to birthday party offerings. When they have to pay for birthday gifts for friends, they'll have to decide if the birthday kid is a real friend that they're happy to get a gift for, or just an acquaintance whose party they're going to for the free cake and bouncy house.</p> <h3>12. Things they broke or lost</h3> <p>The first backpack at the beginning of the school year is on me. If my child loses it and needs another one, they'll be paying for it. If they need some time to save up, they can dig out that embarrassing princess-themed backpack from under the bed and use that for awhile.</p> <p>Broke a neighbor's window playing baseball? I would pay up front, but you bet they are going to pay me back, week by week.</p> <h2>Teens</h2> <p>Once they turn 12 or 13, suddenly your kids have real earning power. My teen has earned $10 a day for walking and feeding pets for out-of-town neighbors, and $8 an hour for baby-sitting. With that ability comes the opportunity for her to get herself things I would not have provided; but it also comes with the opportunity for her to take over some expenses I previously footed.</p> <h3>13. Salon services</h3> <p>Bright hair colors are all the rage in both smaller kids and teens these days, but having this done in the salon is not cheap. I pay for my teen's basic haircuts (because if I didn't, she'd never get one), but if she wants an ombre or a manicure, that's on her. I can always point her toward the local beauty school for discounted services.</p> <h3>14. Clothing</h3> <p>I recently told my teen she is responsible for paying for all of her clothes. I don't think this is a choice that all parents will agree with, but I want to see how it goes. She's already well acquainted with the benefits of thrift store shopping, so it won't be as expensive for her as you might think.</p> <h3>15. Entertainment with friends and dates</h3> <p>While I pay for more expensive outings for my elementary kids, as a teen, my daughter can pay for her own ticket to a theme park or play if she goes with friends. I'd still treat for a family outing, though. As the kids get older, we're grateful that they want to spend the day with us at all, and we're not going to risk them saying they don't want to come along because it's too expensive.</p> <p>My teen hasn't dated yet, but when she starts, there is no way I'm giving her money to go out on a dinner date.</p> <h3>16. Gifts</h3> <p>At some point during the high school years, teens can take over the cost of bringing a gift to a birthday party they're invited to. This can push them to learn how to put together gifts within their budget. My teen recently bought her friend who loves to bake a gift of frostings and sprinkles in a cute hand-decorated gift bag. (See also: <a href="http://www.wisebread.com/25-thoughtful-and-frugal-personalized-gift-ideas?ref=seealso" target="_blank">25 Thoughtful and Frugal Personalized Gift Ideas</a>)</p> <h3>17. Data plan</h3> <p>I bought each of my older kids their first phone (or gave them a hand-me-down) and paid for call-and-text-only service. I didn't want to give my kids the option of <em>not</em> paying for the service, because I wanted it active for safety and so I could keep track of them.</p> <p>But when the teen wanted a data plan in order to start posting on Instagram, that was on her. So far, she has paid it without complaint, even though she's not getting much value for her money, since she usually forgets her phone at home or forgets to charge it.</p> <h3>18. School extras</h3> <p>I pay for supplies required by school, P.E. shoes, and field trip fees. But if my kid wants a yearbook, she has to pay for it. Same goes for tickets to a school dance or any other nonessential fun thing. When she gets to high school and wants to attend homecoming and prom, she can pay for the clothing, tickets, and dinners that go with those events.</p> <h3>19. A car and driving expenses</h3> <p>Most schools don't teach driver's ed anymore, so learning to drive is likely to require the cost of private driving school in addition to DMV fees.</p> <p>Once they have a license, should you purchase a car for your teen? What about insurance, oil changes, and maintenance? The answers to these questions are going to vary according to family circumstances. While I am all for teens footing the bill for their own expenses when possible, I can imagine that in some families, having the teen drive may be as much about convenience for the parents as it is for the kid.</p> <p>When I started driving, my parents happily handed over the responsibility of getting my little brother to all his activities. Because of that, it seemed fair that they gave me use of their old car and paid for the extra insurance cost of having a teen driver on their policy.</p> <p>However, most families will agree that certain driving expenses, such as gas and traffic tickets, should be footed by the teen driver. Outside of parent-mandated errands, kids need to learn that the number of miles they can drive depends on how much gas money they have. It's also not a bad idea for them to learn to ask friends they transport to pitch in at the pump. And if your child gets a moving violation or even a parking ticket, what better way to remember to behave better next time than to have to work extra hours to pay for the ticket? Oh, and if your child has an accident that causes the insurance payment to go up, or loses their good-grade discount, they should pay the difference. (See also: <a href="http://www.wisebread.com/6-mistakes-parents-of-teen-drivers-make?ref=seealso" target="_blank">6 Mistakes Parents of Teen Drivers Make</a>)</p> <h3>20. Travel without family</h3> <p>Once a year, our middle school runs an international trip led by teachers and a tour company. It costs thousands of dollars. My daughter knows that if she chooses to participate, she will have to raise those thousands of dollars herself.</p> <p>Family travel, on the other hand, comes out of my pocket. I want her there with me, and I'm willing to pay the fare to make that happen!</p> <h3>21. Extracurricular activities</h3> <p>This is a tough one, because like most parents, I want my kids to participate in sports and other activities that help them develop their bodies and minds. My teen is into figure skating, and I currently pay for classes, new skates, costumes, and competition fees. But this may change as she gets older, especially if she is able to start a regular part-time job.</p> <p>It's certainly fair to ask teens to split the bill for an extracurricular, or to set a limit on the number of extracurriculars the parent will pay for. If nothing else, kids who want a new pair of cleats instead of accepting hand-me-downs should pay for that.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F21-things-you-should-make-your-kids-pay-for&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F21%2520Things%2520You%2520Should%2520Make%2520Your%2520Kids%2520Pay%2520For.jpg&amp;description=21%20Things%20You%20Should%20Make%20Your%20Kids%20Pay%20For"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/21%20Things%20You%20Should%20Make%20Your%20Kids%20Pay%20For.jpg" alt="21 Things You Should Make Your Kids Pay For" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/carrie-kirby">Carrie Kirby</a> of <a href="http://www.wisebread.com/21-things-you-should-make-your-kids-pay-for">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-new-toys-to-teach-kids-about-money">How to Use New Toys to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-good-money-examples-every-parent-should-set">3 Good Money Examples Every Parent Should Set</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-fun-games-that-teach-your-kids-about-money">6 Fun Games That Teach Your Kids About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-make-your-young-kids-pay-rent">Should You Make Your Young Kids Pay &quot;Rent?&quot;</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Family budgeting tips kids kids allowance kids shopping money lessons money lessons for kids toys Tue, 28 Nov 2017 09:30:10 +0000 Carrie Kirby 2062566 at http://www.wisebread.com How to Prepare Your Kids to Live On Their Own http://www.wisebread.com/how-to-prepare-your-kids-to-live-on-their-own <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-prepare-your-kids-to-live-on-their-own" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/happy_young_girl_with_her_mother_making_dough.jpg" alt="Happy young girl with her mother making dough" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Raise your hand if you have a young adult in your life who isn't ready for the &quot;real&quot; world.</p> <p>It's incredibly common for 20-somethings (and even 30-somethings) to be a little more than clueless when it comes to living on their own. Being able to sustain your independence with both your money and lifestyle is a skill that everyone needs to learn, and every parent needs to start teaching while their kids are still young.</p> <p>The good news is, this is very doable. If you're currently trying to mold impressionable youngsters into self-sufficient adults, here's how you can protect them from a very rude awakening when they go it alone.</p> <h2>1. Teach them basic life skills</h2> <p>I'm fortunate to have grown up in a family of blue-collar Americans who relied on their own wits and two bare hands to get by, and they were eager to pass their skills down to their children and grandchildren. Some of those skills took (I make a mean Bundt cake and clean the house with maid-like results), while others are still a work in progress (I call AAA when I have a flat tire; might as well get my money's worth, right?).</p> <p>These basic life skills should be required teaching at home because your kids won't learn them any place else. I'm a huge advocate for integrating this sort of education into the public school curriculum &mdash; because honestly, what teenager needs to know calculus over income tax prep? &mdash; but as it stands, that responsibility falls to you. (See also: <a href="http://www.wisebread.com/7-life-skills-your-kids-wont-learn-in-school?ref=seealso" target="_blank">7 Life Skills Your Kids Won't Learn in School</a>)</p> <p>As such, it's on you to school your offspring on all of life's dirty little jobs, including but not limited to:</p> <ul> <li> <p>Laundry and other household chores.</p> </li> <li> <p>Grocery shopping, meal prep, and cooking for themselves.</p> </li> <li> <p>Integrating coupons and discounts into their everyday purchases.</p> </li> <li> <p>How credit and debit cards work.</p> </li> <li> <p>How interest rates affect loans.</p> </li> <li> <p>The difference between paying in cash versus relying on credit.</p> </li> <li> <p>How to prepare a resume.</p> </li> <li> <p>How to interview for a job (and not look like a slob).</p> </li> <li> <p>How to comprehend basic contracts.</p> </li> <li> <p>How to drive or use public transportation.</p> </li> <li> <p>How to make and stick to a budget.</p> </li> </ul> <h2>2. Manage their money for their first year of employment</h2> <p>Adults spend their money on frivolous things a lot of the time &mdash; so what do you expect kids to do? As soon as they get a job and start bringing home the bacon, they're rushing straight to their favorite stores for new clothes, taking their boyfriend or girlfriend out on a nice date, and loading up on drive-thru junk food.</p> <p>We all did it.</p> <p>You can curb that behavior by sitting your kid down and letting them know that the Bank of Mom and/or Dad will be in charge of their income for the first year of their first job. Offering them this kind of hands-on guidance and advice is a good way to teach teens how to save and spend wisely.</p> <p>Open two accounts in their name &mdash; checking and savings &mdash; and put 40 percent of their paycheck into each of those accounts. Give them the leftover 20 percent to do whatever they'd like. When expenses arise for which you don't feel responsible, like if they receive a speeding ticket or want to go away for the weekend with friends, explain how the money will come from <em>their</em> checking account to pay for it. You may get some resistance at first, especially if they're used to you forking cash over, but they'll thank their lucky stars they know how to manage money when they strike out on their own.</p> <h2>3. Charge them rent to live in your home once they turn 18</h2> <p>Your kids are adults the day they turn 18 &mdash; a fact that your teenager has probably reminded you of a million times since they started high school &mdash; and it's high time you started treating them accordingly. If they want to be grown-ups with no rules and no curfew but still live under your roof, you have every right to ask for help with the bills.</p> <p>You don't have to charge them fair market value, but a couple hundred bucks a month, or even putting them in charge of a particular bill, is reasonable. I'm also a proponent of teens paying their own cellphone bill starting at age 18. They'll certainly learn to be more responsible with their phones when repairs or replacements are coming out of their own pockets.</p> <h2>4. Help them establish good credit and explain the importance of it</h2> <p>I didn't know anything about how credit worked before I got my first credit card. Given that naiveté, I went on a shopping spree as soon as the card was in my hands, and I didn't/couldn't pay the bill until seven years later. That's what can happen when a clueless 18-year-old gets their hands on a shiny piece of plastic. And in my case, it royally screwed up my credit for a long time.</p> <p>Help your kids avoid my mistake by talking to them about how credit works and the importance of being conscious about building and maintaining a good credit score. Educate them on how good credit affects major purchases like cars and houses and even renting apartments. Their livelihood depends on it &mdash; unless, of course, you want them to live with you forever. (See also: <a href="http://www.wisebread.com/4-questions-to-answer-before-giving-your-kid-a-credit-card?ref=seealso" target="_blank">4 Questions to Answer Before Giving Your Kid a Credit Card</a>)</p> <h2>5. Provide less for them once they start driving</h2> <p>As your child's parent or guardian, it's your legal responsibility to provide for them until they're able to provide for themselves. But you can start to cut back on the handouts as soon as they're responsible enough to drive.</p> <p>Certainly you still need to feed, clothe, and provide housing for your child, but they can start doing more for themselves, too. They can run to the store for their own hair product when they run out, open their own wallets for the video games they covet, and even make their own dentist and doctor appointments. Think of it as an education in independence with training wheels. You're still around to guide them through the processes, but they should start accepting tasks as their own.</p> <h2>6. Teach them time management skills</h2> <p>My friends make fun of me for how much I micromanage my own time. Anything I have to do goes straight into my calendar, and I keep a daily to-do list at work while creating side lists on an as-needed basis. As a result, my life runs much smoother.</p> <p>Considering your kids &mdash; especially high-schoolers &mdash; have busy schedules (for which they likely rely on you to keep on track), it will eventually benefit them for you to teach good time-management skills. Teach them how to add to-dos to their smartphone calendars as soon as they receive them, set up alerts for reminders, and help them form a habit of checking their schedule on a daily basis to keep their lives running smoothly.</p> <h2>7. Step back when they have a problem until your help is absolutely required</h2> <p>A large part of maturing to adulthood is learning how to solve problems on your own, and that means you need to let your children make mistakes from time to time &mdash; even when they come to you looking for the easy way out.</p> <p>&quot;There is a tendency for parents to step in too quickly when their children face a problem,&quot; says Jim Seibold, a marriage and family therapist in Arlington, Texas. &quot;Instead of telling them what to do and how they need to fix it, push them to think through options. Ask them what they think they should do. We can then teach by asking them to think about the consequences of their ideas. For instance: 'That sounds interesting, what do you think would happen if you tried that?'&quot;</p> <p>Just as importantly, this approach expresses confidence in your kids. It lets them know that you believe in their ability to think and consider choices, which will be helpful when it's time for them to move out of the house. That alone can be worth its weight in gold for worrisome moms and dads. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>8. Stop giving them everything they want or think they need</h2> <p>I wasn't deprived of anything growing up, but I wasn't handed everything I wanted, either. Around age 14, my parents encouraged me to start working part time for the money I needed to go out with my friends or buy the things that teenagers want to buy. I wasn't over the moon about it at the time, but I also didn't hate it &mdash; I made new friends, had a sense of freedom, and did what I pleased with my money. In hindsight, it helped lay the foundation of my entrepreneurial spirit, which has gotten me everywhere I've wanted to be in life thus far.</p> <p>Seibold instituted a similar practice in his family, asking his kids to purchase their own electronics, cellphones, and any other luxury they wanted.</p> <p>&quot;They learned to save money they received for birthdays, Christmas, etc., so they could afford these purchases,&quot; he explains. &quot;As parents, we still pay for a lot, but it is important for kids to understand what it means to put off immediate gratification in order to save for something they really want. It may have been 'easy' money since it was gifted, but they still had to learn to save.&quot;</p> <h2>9. Establish good nutritional habits from the get-go</h2> <p>Most of us enjoy junk food every now and then (sometimes a little more often than that &mdash; guilty!), but nutrition and cooking skills all begin with you as a parent. It's your job to raise your children on healthy meals and teach them how to make smart food choices so they're eating a balanced diet. Does that mean you should never order pizza or pull into a drive-thru? No, of course not. But you should be conscious of limiting those instances to help your child establish a healthy relationship with food so they're best prepared to feed themselves responsibly (and cook instead of relying on takeout).</p> <h2>10. Praise your children, but don't go overboard</h2> <p>Encourage your children to express themselves, to try their best at whatever they attempt, and to accept failures gracefully. The truth is, somebody has to be the loser; that's just how life goes. The quicker they learn that they can't always come out on top, the easier life will be. They need both the confidence to reach for their aspirations and the grit to learn and move forward if things don't go their way.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fhow-to-prepare-your-kids-to-live-on-their-own&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520to%2520Prepare%2520Your%2520Kids%2520to%2520Live%2520On%2520Their%2520Own.jpg&amp;description=How%20to%20Prepare%20Your%20Kids%20to%20Live%20On%20Their%20Own"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Prepare%20Your%20Kids%20to%20Live%20On%20Their%20Own.jpg" alt="How to Prepare Your Kids to Live On Their Own" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/how-to-prepare-your-kids-to-live-on-their-own">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-life-skills-your-kids-wont-learn-in-school">7 Life Skills Your Kids Won&#039;t Learn in School</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-fun-games-that-teach-your-kids-about-money">6 Fun Games That Teach Your Kids About Money</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-make-your-young-kids-pay-rent">Should You Make Your Young Kids Pay &quot;Rent?&quot;</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-fun-books-that-will-get-your-kids-excited-about-money">10 Fun Books That Will Get Your Kids Excited About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-frugal-living-skills-you-should-be-teaching-your-children">7 Frugal Living Skills You Should Be Teaching Your Children</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Family Lifestyle basics budgeting children discipline first jobs kids life lessons life skills parenting Mon, 27 Nov 2017 09:00:07 +0000 Mikey Rox 2057738 at http://www.wisebread.com 7 Money Conversations Parents Should Have With Their Adult Kids http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-money-conversations-parents-should-have-with-their-adult-kids" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/smiling_mother_with_young_daughter.jpg" alt="Smiling mother with young daughter" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's hard for many of us to talk about money. Money conversations can be stressful and awkward, and you may be tempted to just stay mum on the subject. However, it's vital that you pass financial wisdom on to your kids, even when they're adults. It's important to teach them about money growing up, but there are some things better discussed when they are older. Here are the money conversations you should be having with your adult children.</p> <h2>1. Financial boundaries</h2> <p>If you are supporting your adult children and you'd like to stop, or if you want to avoid it altogether, it's important to set up some financial boundaries. If you don't want to support them financially at all, tell them that up front and stick to it. That way, you won't end up paying for things and resenting it.</p> <p>If your adult kids are relying on you for part or all of their financial support, sit down together and form a plan. Cutting them off entirely probably won't work for either of you, but you can start slow; back off on payments over the course of six months to a year, and set up concrete steps along the way. For instance, you may decide to stop giving them &quot;fun&quot; money right away, but be willing to cover their cellphone plan for six more months.</p> <p>Make sure you go about having this conversation compassionately. Tell your child that you love them and that you want this for them as well as for you. Offer to help them along the way, to be available to answer questions or aid in budgeting, and let them know that you will always be there for them in other ways. (See also: <a href="http://www.wisebread.com/are-you-ruining-your-retirement-by-spoiling-your-kids?ref=seealso" target="_blank">Are You Ruining Your Retirement by Spoiling Your Kids?</a>)</p> <h2>2. Financial values</h2> <p>Have a conversation with your adult child about what they want in life and how much those things will realistically cost. This is the time to talk about the financials behind car ownership, homeownership, traveling the world, and more. Make sure they have an understanding of how much money they'll need to have in order to afford the lifestyle they want, and how much they need to make in a week, a month, and a year to achieve that.</p> <p>Talk to them, also, about what is really important in life. Tell them that fancy cars, big houses, and lavish vacations aren't the keys to happiness. Ask them to think about what they would pursue if they were dying or what they would miss most if they suffered a serious injury. This can help them figure out what is important to them and what they may not be willing to trade their time and money for.</p> <h2>3. What it means to live within your means</h2> <p>Your adult kids need to understand the importance of spending less than they earn. Show them how to calculate this so they can determine for themselves when to spend their money and when it would be better to save or invest it. Your kids need to figure out how to sacrifice spending on superfluous things in order to live a financially secure life.</p> <h2>4. How to make a budget</h2> <p>Along the same lines, your adult children need to know how to make a budget. You can actually begin teaching this in childhood by giving your kid a weekly allowance and helping them break down how they want to spend their money. Even if you wait until they're older, though, you need to sit down with them and make sure your kids understand what they <em>need</em> to spend money on, what they <em>want</em> to spend money on, and how to allocate those dollars accordingly. (See also: <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=seealso" target="_blank">Build a First Budget in 5 Easy Steps</a>)</p> <h2>5. The benefits and dangers of loans and credit cards</h2> <p>In a culture where credit is readily available, your kids need to know how to evaluate different credit opportunities based on benefits and drawbacks, as well as how to wisely use credit. As soon as they are old enough to obtain financing of their own, you need to talk with your kids about credit cards, educational loans, personal loans, and home loans.</p> <p>It will help to tell stories from your own life. Whether you've made financial mistakes or have been wise with your money, walking your kids through how you made your financial decisions and how they ultimately affected you will make the principles real, rather than keep them so abstract. (See also: <a href="http://www.wisebread.com/the-financial-basics-every-new-grad-should-know?ref=seealso" target="_blank">Financial Basics Every New Grad Should Know</a>)</p> <h2>6. Saving for retirement</h2> <p>It can be hard for people in their late teens and 20s to think about saving for retirement, because it all feels so far away. But it's critical you talk with your adult children about how much they may need for retirement, and walk through some compound interest calculations with them so they see the benefit of saving early. Make sure they understand the basics of an IRA and 401(k), as well as what it means to be fully vested and take advantage of an employer match. (See also: <a href="http://www.wisebread.com/this-is-the-basic-intro-to-having-a-retirement-fund-that-everyone-needs-to-read?ref=seealso" target="_blank">Basic Intro to Retirement Funds</a>)</p> <h2>7. Your financial plan</h2> <p>As your kids get older, they also need to know about <em>your</em> financial plan, before they find themselves trying to figure it out without you. This can be an especially difficult conversation to have, because on top of talking about money, you're also talking about serious injury, illness, or death.</p> <p>Still, it's important for your kids to know what types of insurance you have, because knowing whether you have long-term care coverage, for instance, may help them make better decisions later on. Talk to them, too, about how you plan to divide up your estate. This can keep conflicts to a minimum after you are gone, so they can grieve instead of fight. (See also: <a href="http://www.wisebread.com/the-fair-way-to-split-up-your-familys-estate?ref=seealso" target="_blank">The Fair Way to Split Up Your Family's Estate</a>)</p> <p>If one of your adult children is the executor of your will, make sure they understand that responsibility and that they have all the relevant information. They should have access to the location of your accounts, the account numbers, and any identification information, as well as contact information for your lawyer. You can write all of this out for them so they can simply file it away until they need it.</p> <p>Talking about money can be hard, but it's also important. Speaking with your adult children about these topics will ensure they have a better chance at a financially healthy life.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-money-conversations-parents-should-have-with-their-adult-kids&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Money%2520Conversations%2520Parents%2520Should%2520Have%2520With%2520Their%2520Adult%2520Kids.jpg&amp;description=7%20Money%20Conversations%20Parents%20Should%20Have%20With%20Their%20Adult%20Kids"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Money%20Conversations%20Parents%20Should%20Have%20With%20Their%20Adult%20Kids.jpg" alt="7 Money Conversations Parents Should Have With Their Adult Kids" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/sarah-winfrey">Sarah Winfrey</a> of <a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-help-your-adult-children-become-financially-independent">How to Help Your Adult Children Become Financially Independent</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-minute-finance-create-financial-goals">5-Minute Finance: Create Financial Goals</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-money-rules-every-working-adult-should-know">10 Money Rules Every Working Adult Should Know</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family adult children boundaries budgeting credit kids loans money conversations money matters retirement saving money Wed, 22 Nov 2017 10:00:07 +0000 Sarah Winfrey 2056811 at http://www.wisebread.com Teach Your Kids About Money With Their Holiday Gift Lists http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/teach-your-kids-about-money-with-their-holiday-gift-lists" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mother_and_daughter_exchanging_gifts.jpg" alt="Mother and daughter exchanging gifts" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Giving my children Hannukah presents is one of my favorite parts of the holidays. Seeing their faces light up when they open a gift is one of the best feelings in the world.</p> <p>However, it can be very easy for kids to overlook the message of generosity that we are trying to teach for Christmas and Hannukah. They are bombarded by advertisements on all sides and constant reminders that the holidays are on their way &mdash; which means kids can often fall prey to the <em>gimme gimmes.</em> Many parents see this play out when they ask their kids to create a holiday wish list, and receive an eight-page, single-spaced list of expensive items.</p> <p>But just because children can learn the wrong things from holiday gifts doesn't mean they have to. In fact, parents can use the practice of writing a gift list to teach their kids about budgeting, frugality, generosity, and managing expectations. This year, try one of the following holiday gift lists to help your children learn about money and the true spirit of giving. (See also: <a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money?ref=seealso" target="_blank">How to Use the Holidays to Teach Kids About Money</a>)</p> <h2>1. The four gift list</h2> <p>Families following the four gift list rule will give each child:</p> <ul> <li> <p>Something they want.</p> </li> <li> <p>Something they need.</p> </li> <li> <p>Something to wear.</p> </li> <li> <p>Something to read.</p> </li> </ul> <p>When your kids are penning their holiday wish lists, tell them to place each item in one of these four categories. You can make it clear that they can put more than one item in each category, but they will only receive one present from each category. This will help them to better understand the things they truly need and recognize how much they value their various wanted items. If everything on their list is a want, this exercise will help them manage their expectations. It can also potentially spur them to find needs, clothes, and books that they are excited to receive.</p> <p>This rule is also very helpful for parents who often go overboard with gift shopping. When you see something adorable that you'd love to give your child, you'll have to decide if it's worthy of being one of only four &quot;somethings&quot; on the list.</p> <h2>2. Include gifts to others</h2> <p>Last winter, my sons were delighted to watch the animated adaptation of <em>The Snowy Day</em> by Ezra Jack Keats on Amazon. We had long been fans of the classic book, and the sweet story of Peter's adventure in the snow was expanded to tell an animated Christmas story in this short film.</p> <p>One of my favorite parts of the adaptation was the story of Peter's Jewish friend Layla, who delivers a gift to a charity on the sixth night of Hannukah. She explains that it's her family's tradition to give instead of receive on that night of Hannukah, and she and her mother have picked out something special to give away.</p> <p>This tradition is very well-suited to Hannukah, which lasts for eight nights. Parents can easily set aside one night to be about giving to those less fortunate rather than receiving &mdash; but any family can encourage their children to think of others when making their holiday gift lists.</p> <p>In addition to writing down the things that they want, your kids can also include a list of gifts they can give to others. These could be traditional gifts for families in need, or they can be more creative, like writing letters to deployed soldiers or volunteering. By including a place for giving back on their holiday wish list, your kids will learn to associate generosity with your holiday traditions.</p> <h2>3. Create a gift-giving theme</h2> <p>For older children, a fun way to celebrate the holidays and teach frugality is to set a theme for gift giving. For instance, Stacia Mcclure's family would give everyone a hard spending limit, and specify where everyone could shop: &quot;One year, we decided all gifts had to come from a truck stop &mdash; and gift cards were excluded. My dad still talks about that year because he got an entire box of Necco wafers. The hospital gift shop Christmas was also quite entertaining.&quot;</p> <p>Other types of holiday themes might include only buying &quot;As Seen on TV&quot; items, books, games, or food items.</p> <p>Picking a &quot;theme&quot; helps teenagers learn to be creative within a spending framework, which is excellent practice for learning how to be frugal. A teen who can have fun and give a meaningful (or at least hilarious) low-cost gift from a truck stop will learn to think outside the box when it comes to tougher money decisions. (See also: <a href="http://www.wisebread.com/5-steps-to-stress-free-holiday-gift-giving?ref=seealso" target="_blank">5 Steps to Stress-Free Holiday Gift Giving</a>)</p> <h2>4. Ask them to pick a stock</h2> <p>Several years ago, Stephanie McCullough's daughter asked for a new iPod for the holidays. &quot;Instead, I bought her two shares of Apple,&quot; McCullough says, &quot;which cost about the same as a new device at the time. There was no way to know this at the time, but the stock has skyrocketed since then.&quot;</p> <p>If you let your children know that you plan to buy them a share of a company they like, you will not only be giving them a gift that will keep on giving, but you can also help to spark an interest in finance.</p> <p>They can either pick a publicly-traded company they like, or they can do a little research into how well their favorite companies have fared in the market. The latter will help them start to get a sense of figuring out what makes a good investment. Even if they don't research their stock before including it on their gift list, you can invite them to track the stock's price over time to see how their gift is doing.</p> <h2>5. Include a time gift</h2> <p>As much as your children love ripping the wrapping paper off a new toy, what they really want most is to spend time with their parents. You can give them the gift of your time by asking them to include a request on their gift list for something you can do together. For instance, your child might list &quot;baking cookies together&quot; or &quot;going fishing together&quot; on their wish list.</p> <p>While you could always create a &quot;coupon&quot; for the requested time gift, you can also find a small tangible item you could give your child to use for their time gift. For instance, you might give them a new cookbook that you can peruse together to find the perfect cookie recipe, or a fishing hat for them to wear next time you go to the lake.</p> <p>By having your child include a time gift request on their holiday wish list, you are teaching them that the best gifts come from being together, rather than spending lots of money.</p> <h2>The benefit of limits</h2> <p>The magic of the holiday season does not come from tearing into an enormous pile of presents, even though much of our culture tries to convince kids otherwise. Teaching your children to use frameworks for thinking about their holiday gift wishes can help them to better appreciate the real lessons of the season, as well as learn some important money skills that will last them well into adulthood.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fteach-your-kids-about-money-with-their-holiday-gift-lists&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FTeach%2520Your%2520Kids%2520About%2520Money%2520With%2520Their%2520Holiday%2520Gift%2520Lists.jpg&amp;description=Teach%20Your%20Kids%20About%20Money%20With%20Their%20Holiday%20Gift%20Lists"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Teach%20Your%20Kids%20About%20Money%20With%20Their%20Holiday%20Gift%20Lists.jpg" alt="Teach Your Kids About Money With Their Holiday Gift Lists" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-5"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year">6 Smart Financial Gifts to Give Your Kids This Year</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-make-your-young-kids-pay-rent">Should You Make Your Young Kids Pay &quot;Rent?&quot;</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-financial-gifts-mom-will-love-for-mothers-day">6 Financial Gifts Mom Will Love for Mother&#039;s Day</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family children Christmas gifts hannukah Holidays kids money lessons presents stocks wish lists Thu, 09 Nov 2017 08:00:09 +0000 Emily Guy Birken 2046508 at http://www.wisebread.com 9 Family Money Matters Your Kids Don't Need to Know http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-family-money-matters-your-kids-dont-need-to-know" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/working_at_home_1.jpg" alt="Working at home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When you have kids, there will come a time when you want to teach them about money. Some basic personal finance lessons can go a long way toward helping your children understand things like spending, saving, and even investing.</p> <p>But there are many things about your family's finances that your children don't need to know right away, even if they are curious. Information about your family's income, debt, and spending can be confusing and even troubling to younger kids. And kids are prone to share this information when it's best to keep it private.</p> <p>Older teenagers may benefit from learning more about your financial situation as they approach an age when they will be earning money and making purchases on their own. But for younger children, especially, it may be best to keep the following financial information close to your vest. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?Ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>1. Your income</h2> <p>Your kids don't need to know how much money you make. All they need to know is that you love them and will care for them. Younger kids, in particular, have no real sense of the value of money anyway. You could tell them you earn $100 a year and they would think you are rich.</p> <p>Children also have a habit of blabbing, and you never want to find your children bragging to other kids &mdash; or even worse, their parents &mdash; about how much money you earn. Your kids will be better off learning that happiness and financial security have less to do with your income and more to do with what you do with money when you have it. This means teaching them about saving, about being charitable to others, and about being appreciative of what you have.</p> <h2>2. Which parent earns more</h2> <p>It's common for one parent to earn more than the other. This is especially true if one parent chooses to stop working or works part-time to raise a family. Children should generally be left oblivious to which spouse is higher earning because salaries don't represent a person's full contribution to the family.</p> <p>If one parent stops working, it may mean they are taking on a greater share of household responsibilities. And it's also important to note that many of our more important professions are not particularly high paying. A schoolteacher may bring in less money than their banker spouse, but is likely to work just as hard. Rather than share details with your child about which spouse earns more, simply explain to them the value of all work, and give them an appreciation of the broad, non-monetary contributions needed to keep a household going.</p> <h2>3. Your retirement balance</h2> <p>Let's say you've been saving aggressively for retirement and have several hundred thousands of dollars saved. Now, let's say you just told your daughter she can't have ice cream because it costs too much. A child, if she was aware of your retirement savings, might find this baffling. It's hard for young people to grasp that you may have a large amount in savings but are still pinching pennies.</p> <p>Your retirement savings and overall net worth is not something that should be shared too widely. A child who finds out his dad has hundreds of thousands of dollars in the bank may be motivated to brag, and that's not good. So it's best to keep information about your retirement plan to yourself.</p> <h2>4. Your debts</h2> <p>Debt can be a major source of family stress, but it's a stress that only parents should carry. Your worries about how you'll pay off that credit card bill or how you'll make those car payments are your worries, not your kids'. There may be instances when you need to be honest with your children if there is money trouble, and older children may benefit from lessons in money management, credit, and the cost of borrowing. But as long as you are able to provide and care for your kids, they are best left unaware of your financial debt burden.</p> <h2>5. The price of your home</h2> <p>The cost of your house is public information, but that doesn't mean you need to broadcast it to your kids. The only thing that kids need to know about housing is that they have a roof over their head. What you paid for your house should, to the best of your ability, be kept between the buyer, seller, and real estate agent.</p> <p>Additionally, it's best not to share too much detail about mortgage debt. If they ever get a hint that you are struggling to make mortgage payments, that will only lead to anxiety.</p> <h2>6. What you inherit</h2> <p>If a relative passes away and leaves some assets to you, the specifics of that inheritance should be kept as private as possible. This is especially true if the inheritance is quite large. If a child learns of a sizable windfall and shares that information with others, that can lead to jealous family members or friends, and could even make you a target for thieves and scammers.</p> <p>Sometimes, certain family members receive less than others, or are cut out of the will altogether. This can result in family strife that children should not be concerned about.</p> <p>For older children, it is OK to explain to them how inheritances work, as they may take comfort in believing you'll leave them something when you pass. And there will be a time when you need to tell older children about their own inheritance so they have an idea of what they may have to manage.</p> <h2>7. The cost of gifts</h2> <p>Kids have a way of believing that the most expensive item is always the best. They'll reject something if they believe you got it at a deep discount or (gasp!) second-hand. So parents may be best served by not indicating how much they spent on that video game system or that baseball bat. By hiding the cost of items you buy for your kids, they may be more inclined to evaluate the gift on its merits.</p> <h2>8. Child support payments and alimony</h2> <p>If you and your spouse have divorced, you may be on the hook for child support payments, alimony, or both. These costs are usually determined by courts and can be a major source of tension between parents. The children are best left unaware of these details and any drama or conflict surrounding them. It may be comforting to a child if they are aware that support payments are being made, but sharing specific dollar figures can be problematic.</p> <h2>9. In some cases, the cost of college</h2> <p>This is a tricky one. If your child will end up paying for their own college education, he or she will obviously need to know what they'll be on the hook for. And if you are paying for all or part of college, they will be well served to know how much of a financial commitment you are making toward their education. (It will comfort them to know you are saving as much as possible.) But this information should not come to them immediately. A child's first priority should be to stay in school and get good grades. A young high schooler does not need to be burdened with the stress of whether they need to get scholarships or whether they'll be on the hook for student loans later.</p> <p>It's also important to understand that final college costs can vary from family to family, depending on scholarships and financial aid. A wealthy family might pay the full price to send their child to an Ivy League school, while a low-income family may pay next to nothing. This family financial information is really nobody's business, so it's important to be judicious in what you share with your child.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-family-money-matters-your-kids-dont-need-to-know&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Family%2520Money%2520Matters%2520Your%2520Kids%2520Don%2527t%2520Need%2520to%2520Know.jpg&amp;description=9%20Family%20Money%20Matters%20Your%20Kids%20Don't%20Need%20to%20Know"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Family%20Money%20Matters%20Your%20Kids%20Don%27t%20Need%20to%20Know.jpg" alt="9 Family Money Matters Your Kids Don't Need to Know" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-why-financial-planning-isnt-just-for-the-wealthy">6 Reasons Why Financial Planning Isn&#039;t Just for the Wealthy</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-to-make-the-moment-you-decide-to-get-divorced">5 Money Moves to Make the Moment You Decide to Get Divorced</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-make-your-young-kids-pay-rent">Should You Make Your Young Kids Pay &quot;Rent?&quot;</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-manage-your-money-during-a-spousal-separation">How to Manage Your Money During a Spousal Separation</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family alimony borrowing child support children debt divorce high earners income kids retirement spending Wed, 25 Oct 2017 08:00:07 +0000 Tim Lemke 2038887 at http://www.wisebread.com 4 Questions to Answer Before Giving Your Kid a Credit Card http://www.wisebread.com/4-questions-to-answer-before-giving-your-kid-a-credit-card <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-questions-to-answer-before-giving-your-kid-a-credit-card" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/lets_learn_about_responsible_spending.jpg" alt="Let’s learn about responsible spending" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Would you give your 10-year-old a credit card? Many parents would; in fact, a recent study by T. Rowe Price found that nearly one out of every five parents with children between the ages of eight and 14 have given their child a credit card.</p> <p>Are you considering joining this group of parents? If so, you need to make sure that you ask your young children these questions first. And make sure you get the answers you need to hear to inspire confidence that your youngster is ready for that piece of plastic. (See also: <a href="http://www.wisebread.com/13-things-to-teach-your-kids-about-credit-cards?ref=seealso" target="_blank">13 Things to Teach Your Kids About Credit Cards</a>)</p> <h2>What is the credit card for?</h2> <p>If you're giving a kid as young as 13 or 14 a credit card, it's safe to assume that this card is to be used only for a specific purpose. Maybe you want your child to use the card to buy a train pass each month to get back and forth from school. If that's all the card is to be used for, spell it out clearly so your child understands and isn't tempted to use it to buy a new shirt or video game. (See also: <a href="http://www.wisebread.com/4-reasons-to-add-your-teen-as-an-authorized-user-on-your-credit-card?ref=seealso" target="_blank">4 Reasons to Add Your Teen as an Authorized User on Your Credit Card</a>)</p> <h2>What is the spending limit per week or per month?</h2> <p>You'll need to set clear spending limits before handing over a credit card to your kids. Maybe your kids can only charge up to $150 a month. Or maybe their spending limit is $300. Whatever it is, make sure your kids know this limit and understand what it means. Ask them about it early and often. You want your kids to understand that the spending limit is a rule and not a suggestion.</p> <p>Make it clear, too, that if their monthly limit is $200 and they charge $150 in the first week, they can now only spend $50 for the rest of the month. Don't let them break that spending limit. If you do, that limit become meaningless. (See also: <a href="http://www.wisebread.com/should-you-cosign-your-teenagers-credit-card-application" target="_blank">Should You Cosign on Your Child's Credit Card Application?</a>)</p> <h2>Who pays, and how much?</h2> <p>Before giving your children a credit card, you'll need to establish the payment rules with them. Explain how credit cards work, and that if the bill isn't paid on time, the account will be hit with late fees. Make sure that they understand the consequences of not paying their balances off in full each month and that high interest rates can make credit card debt grow quickly.</p> <p>Once you've asked your kids these credit card basics, establish ground rules for how the card is to be paid. Maybe you've agreed to pay the card in full each month, as long as your children don't spend past a certain limit. Maybe you and your children have agreed to split the monthly bill, with your children covering their half with allowance money or withdrawals from their savings accounts.</p> <p>Whatever arrangement you agree to, don't change the rules at the end of a month. Your children might complain that they have to pay half the credit card bill. Don't let their complaints convince you to cover the whole bill. This won't teach your children about financial responsibility.</p> <h2>Do they understand the consequences of misusing their cards?</h2> <p>Have consequences in place if your child overspends with a credit card or purchases items they're not supposed to be buying.</p> <p>Maybe you agree that your child can charge $150 a month maximum. If your child spends $200 in a month, they should know that there will be consequences. Perhaps they will be responsible for repaying what they overspent, whether that repayment comes in the form of extra chores, a withdrawal from their savings account, or a reduction in next month's spending limit.</p> <p>If your children use their cards to purchase something they aren't allowed to buy &mdash; say an in-app purchase or a fast food meal &mdash; there should be consequences, too. Maybe your child will lose their card for a month or on a permanent basis if they don't follow your buying rules. Spell these rules out before you give them their own credit card. (See also: <a href="http://www.wisebread.com/7-important-lessons-frugal-parents-teach-their-children?ref=seealso" target="_blank">7 Important Lessons Frugal Parents Teach Their Children</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-questions-to-answer-before-giving-your-kid-a-credit-card&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Questions%2520to%2520Answer%2520Before%2520Giving%2520Your%2520Kid%2520a%2520Credit%2520Card.jpg&amp;description=4%20Questions%20to%20Answer%20Before%20Giving%20Your%20Kid%20a%20Credit%20Card"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Questions%20to%20Answer%20Before%20Giving%20Your%20Kid%20a%20Credit%20Card.jpg" alt="4 Questions to Answer Before Giving Your Kid a Credit Card" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/4-questions-to-answer-before-giving-your-kid-a-credit-card">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-your-bad-credit-can-impact-your-kids">How Your Bad Credit Can Impact Your Kids</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-lessons-kids-can-learn-from-the-tooth-fairy">7 Money Lessons Kids Can Learn From the Tooth Fairy</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-make-your-young-kids-pay-rent">Should You Make Your Young Kids Pay &quot;Rent?&quot;</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-best-sites-to-help-your-kids-learn-about-money">8 Best Sites to Help Your Kids Learn About Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-help-your-adult-children-become-financially-independent">How to Help Your Adult Children Become Financially Independent</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family allowances authorized users children co-signing credit limits kids responsibility Mon, 23 Oct 2017 08:30:10 +0000 Dan Rafter 2039974 at http://www.wisebread.com