money lessons http://www.wisebread.com/taxonomy/term/12371/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 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 4 Money Lessons We Can Learn From Past Presidents http://www.wisebread.com/4-money-lessons-we-can-learn-from-past-presidents <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-money-lessons-we-can-learn-from-past-presidents" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/lincoln_memorial_in_washington_dc_0.jpg" alt="Lincoln Memorial in Washington, D.C." title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Every February, Americans celebrate the presidencies of George Washington and Abraham Lincoln on the third Monday of the month. Presidents' Day is often nothing more than a day off for children in school, and a prime sale weekend for Americans to engage in their favorite sport of shopping.</p> <p>But rather than spending money on Presidents' Day, why not learn some of the most important money lessons from the lives of former presidents instead?</p> <p>Here are four vital money lessons that past presidents can teach us.</p> <h2>Lesson from George Washington: Diversify your investments</h2> <p>Our first president was both a canny strategist in war, and a very smart investor. In 18th century Virginia, tobacco farming was an extremely profitable business, and George Washington grew the crop on his farmland. Tobacco growers made a great deal of money by shipping their product back to Europe.</p> <p>However, in 1766, Washington decided to stop growing tobacco on his land, because the crop was hard on the soil and was becoming less profitable. Instead, he planted several different crops, including wheat, corn, flax, and hemp &mdash; all of which had a local demand and did not require shipping overseas. This was a very smart move, as it both diversified Washington's crop production, and ensured that he was not vulnerable to loss during the transportation process. Other Virginia farmers who continued to grow tobacco (including Thomas Jefferson) lost their shirts.</p> <p>Modern investors can learn a great deal from Washington's decision. Tobacco was the 18th century's equivalent of a &quot;sure thing,&quot; but it was much smarter to invest farmland in diverse crops that were locally needed. Instead of betting on one &quot;sure thing&quot; investment, modern Americans should plan to put their money in diverse assets so they are not overdependent on any single asset or industry. (See also: <a href="http://www.wisebread.com/first-rule-of-financial-wins-avoid-losses?ref=seealso" target="_blank">First Rule of Financial Wins: Avoid Losses</a>)</p> <h2>Lesson from Thomas Jefferson: Tracking your spending isn't enough</h2> <p>Thomas Jefferson is one of our country's most beloved founding fathers. The red-haired intellectual was responsible for writing the Declaration of Independence and went on to become the third U.S. president. But despite his overwhelming political success, Jefferson's last years were plagued by financial difficulties, and he died completely broke.</p> <p>What's even more surprising about Jefferson's money trouble is the fact that he obsessively tracked his spending throughout his life. According to the overseer at Monticello, Jefferson's estate, &quot;Mr. Jefferson was very particular in the transaction of all his business. He kept an account of everything. Nothing was too small for him to keep an account of it.&quot;</p> <p>Unfortunately, the daily tracking of Jefferson's finances did not keep him from spending well beyond his means. Jefferson had very fine tastes, and would spend lavishly on wine, furnishings, and updates to his estate at Monticello. Though he dutifully recorded all of his over-the-top purchases (not to mention each and every small purchase), it did not stop him from spending more than he could possibly afford.</p> <p>Modern Americans have a much easier time tracking their spending than Jefferson did, since there are now any number of smartphone apps and online tracking programs that can help you get a handle on your money. However, we need to remember from Jefferson's example that knowing where every penny is going is not enough. We also need to reduce our spending if we want to get out of debt and build wealth. (See also: <a href="http://www.wisebread.com/these-5-apps-will-help-you-finally-organize-your-money?ref=seealso" target="_blank">These 5 Apps Will Help You Finally Organize Your Money</a>)</p> <h2>Lesson from Abraham Lincoln: Embrace frugality</h2> <p>Abraham Lincoln's impoverished childhood in a log cabin not only adds to the heroic patina of his life's story, but it also helps to explain our 16th president's lifelong frugality. In fact, Lincoln saved much of the $25,000 annual salary he made as president. According to author Harry E. Pratt, &quot;[Lincoln's] estate grew from $15,000 in 1861 to more than $85,000 at his death. The increment came principally from his $25,000 yearly salary as president.&quot;</p> <p>Lincoln was also frugal with public money, becoming angry when his wife, Mary Todd Lincoln, blew her budget by almost $7,000 while refurbishing the White House &mdash; after Congress had already allotted $20,000 for her to use. He recognized that it was unseemly for Mrs. Lincoln to spend $20,000, much less $27,000, on furnishings and upgrades when Union soldiers were going without blankets.</p> <p>The importance of being careful with one's money is a timeless lesson, but it's worth noting that Lincoln maintained frugality throughout his lifetime, even after he no longer needed to be cognizant of every penny spent. From Lincoln's example, modern Americans can learn that being frugal, even after one's financial situation improves, is a smart way to handle money. (See also: <a href="http://www.wisebread.com/the-only-6-rules-of-frugal-living-you-need-to-know?ref=seealso" target="_blank">The Only 6 Rules of Frugal Living You Need to Know</a>)</p> <h2>Lesson from Ulysses S. Grant: Only invest in what you understand</h2> <p>Beloved Civil War hero (and the impressively bearded face on our $50 bill), Ulysses S. Grant was a talented Army general and a well-liked president. However, he struggled with money in his personal life from beginning to end. In particular, after the end of his presidency, he decided to settle in New York and try to make a fortune in banking. He partnered with 33-year-old Ferdinand Ward, who at the time was known as the &quot;Young Napoleon of Wall Street,&quot; to create the investment firm of Grant and Ward.</p> <p>Unfortunately, Grant's lack of financial savvy was his downfall. Ferdinand Ward was nothing but a swindler, and Grant and Ward was simply a Ponzi scheme that Ward set up to bilk money out of Grant's famous and rich friends.</p> <p>When the entire scheme blew up, Grant had been diagnosed with cancer and knew he had only a short time to live. The former president was only able to avoid leaving his wife destitute by writing his memoirs and having his friend Mark Twain publish them. The book became a best-seller, but Grant did not live to see it.</p> <p>The sad story of Grant's financial troubles can remind modern Americans of the importance of truly understanding your investments. Grant fell victim to a scam artist because he did not understand the investments he was putting his money (and name) behind. We should all remember Grant's misfortune when we are tempted to jump on something we don't understand that seems to be going gangbusters. (See also: <a href="http://www.wisebread.com/9-costly-mistakes-diy-investors-make?ref=seealso" target="_blank">9 Costly Mistakes DIY Investors Make</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-money-lessons-we-can-learn-from-past-presidents&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Money%2520Lessons%2520We%2520Can%2520Learn%2520From%2520Past%2520Presidents.jpg&amp;description=4%20Money%20Lessons%20We%20Can%20Learn%20From%20Past%20Presidents"></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%20Money%20Lessons%20We%20Can%20Learn%20From%20Past%20Presidents.jpg" alt="4 Money Lessons We Can Learn From Past Presidents" 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-money-lessons-we-can-learn-from-past-presidents">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/21-things-that-young-adults-absolutely-need-to-know-about-money">21 Things That Young Adults Absolutely Need to Know 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/7-money-lessons-we-can-learn-from-beyonc">7 Money Lessons We Can Learn From Beyoncé</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/8-money-lessons-i-learned-selling-office-supplies">8 Money Lessons I Learned Selling Office Supplies</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-personal-finance-tips-for-introverts">8 Personal Finance Tips for Introverts</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-lessons-on-how-to-be-a-financial-grownup-from-bobbi-rebell">6 Lessons on How to Be a Financial Grownup From Bobbi Rebell</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance abraham lincoln americans frugal living george washington history investing money lessons president's day thomas jefferson u.s. presidents ulysses s. grant Mon, 19 Feb 2018 10:00:06 +0000 Emily Guy Birken 2104969 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 5 Friend Types That Can Hurt Your Finances http://www.wisebread.com/5-friend-types-that-can-hurt-your-finances <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-friend-types-that-can-hurt-your-finances" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/girlfriends_in_cafe_making_payment.jpg" alt="Girlfriends in cafe making payment" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Your inner circle of friends can have a direct impact on many areas of your life, including your financial behavior. According to a <a href="http://press.uchicago.edu/pressReleases/2014/May/0522JCRlowe.html" target="_blank">2014 study from the Journal of Consumer Research</a>, peers can influence you to make certain decisions. You can even bond with someone over decisions to abstain or indulge in certain activities.The study found, for instance, that friends bond over small shared indulgences like eating chocolate, but were more inclined to abstain as the stakes were raised.</p> <p>Because of this, you want to be especially aware of how your friends might be influencing your financial behaviors. You don't necessarily have to dump friends who negatively affect your spending, you just have to know how to handle your interactions so they don't cause you to make poor money decisions. If you think it's time to take stock of your friend circle for the sake of your wallet, here are some personalities to watch out for. (See also: <a href="http://www.wisebread.com/7-nice-ways-to-tell-your-spendy-friends-youre-staying-on-budget?ref=seealso" target="_blank">7 Nice Ways to Tell Your Spendy Friends You're Staying on Budget</a>)</p> <h2>1. The risk-taker friend</h2> <p>This person takes a lot of risks when it comes to their money. They aren't necessarily careless, they just tend to leap without looking. Sometimes they win and sometimes they lose. If you're not careful, these seasoned risk takers can take you along for a ride you're not ready for.</p> <p>The excessive risk-taker tends to be impulsive, and seeing them win can influence you to make similar choices. This friend may encourage you to make major decisions without properly weighing all the risks involved.</p> <h3>How to handle them</h3> <p>Take their &quot;bright ideas&quot; with a grain of salt, but don't shun everything they conceive. They can be good business partners when tempered with caution. Sometimes, you won't be able to talk them out of anything, but you can definitely leverage their passion for risk taking if you find yourself being <em>too</em> conservative for your money goals.</p> <h2>2. The spendthrift friend</h2> <p>This friend spends every single penny that comes into their hands. They take expensive trips, show up at exclusive parties, and seem to be forever shopping and eating at fancy restaurants. In fact, whenever you two hang out it involves spending obscene amounts of money.</p> <p>The spendthrift is not always broke. They may actually have the money to support this lifestyle; you, however, do not. One minute with the spendthrift and you could easily find yourself swept away by the sheer excitement of spending more money than you can afford. (See also: <a href="http://www.wisebread.com/10-types-of-friends-who-are-costing-you-money?ref=seealso" target="_blank">10 Types of Friends Who Are Costing You Money</a>)</p> <h3>How to handle them</h3> <p>In some ways, they could actually help you live a little. Just make sure to manage your interactions so that you don't end up in the red. If your friend suggests an outing that could cost more than you've budgeted for, suggest a more reasonable alternative. This way, you get quality time with your bff without the collateral damage to your wallet.</p> <h2>3. The doom and gloom friend</h2> <p>This friend is also known as the conspiracy theory or financially &quot;woke&quot; friend. They always predict that the financial world as we know it will come to a terrible end. Their portfolio consists mainly of assets in precious metals, canned goods, and their homemade bomb shelter. This friend won't save or invest for tomorrow because it might not come, or will be dystopian at best.</p> <p>At times, they may tempt you to believe that the sky is falling and that you should do something about it. The problem is that many of their &quot;solutions&quot; involve ignoring sound, practical principles for the sake of events that are unlikely to happen.</p> <h3>How to handle them</h3> <p>Listen to your worried friend and see if there are some useful tips or principles in their doomsday preparations. However, avoid joining in on their anti-establishment, anarchy promoting tirades. Instead, offer a voice of reason when it makes sense. (See also: <a href="http://www.wisebread.com/how-to-invest-if-youre-worried-about-a-stock-market-crash?ref=seealso" target="_blank">How to Invest If You're Worried About a Stock Market Crash</a>)</p> <h2>4. The perpetually unsavvy friend</h2> <p>This friend constantly makes bad financial choices: the latest MLM scheme, lending to irresponsible people, and falling prey to a myriad money scams. This friend prefers to look for quick fixes, rather than roll up their sleeves and get their finances in order. After all, they make living life on the edge seem <em>easy</em>. This friend might tempt you to ignore financial responsibility or engage in the latest get-rich-scheme that's guaranteed not to work.</p> <h3>How to handle them</h3> <p>Don't look down on them or chide them for bad choices, but definitely don't join in when they're spending recklessly in order make money fast. They won't, and you won't either.</p> <h2>5. The miser</h2> <p>This cheapskate rarely spends money on anything or anyone. They will not spend money for gifts, events, group outings, or investment opportunities that could actually benefit them.</p> <p>If you're not careful, the miser can actually cost you money. Their lack of desire to pay for things can impact your plans or create unrealistic expectations around your friendship. Maybe you're expected to foot the bill or always plan the cheapest outing possible. It might cramp your style or just end up being incredibly boring!</p> <h3>How to handle them</h3> <p>If you want to deal with this money personality without cutting them out, be patient yet motivating. Treat their hesitation to spend money gingerly. They may have endured traumatic experiences with money as a kid, or witnessed their parents making poor financial choices. Encourage them to spend money on things that matter in a way they are comfortable with.</p> <p>Just like money goals, maintaining healthy friendships is not easy. It takes a great deal of work, sacrifice, and dedication to make sure you are bonding with people you care about in a way that won't set you back financially.</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-friend-types-that-can-hurt-your-finances&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Friend%2520Types%2520That%2520Can%2520Hurt%2520Your%2520Finances.jpg&amp;description=5%20Friend%20Types%20That%20Can%20Hurt%20Your%20Finances"></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%20Friend%20Types%20That%20Can%20Hurt%20Your%20Finances.jpg" alt="5 Friend Types That Can Hurt Your Finances" 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/aja-mcclanahan">Aja McClanahan</a> of <a href="http://www.wisebread.com/5-friend-types-that-can-hurt-your-finances">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/11-money-habits-that-make-you-look-financially-immature">11 Money Habits That Make You Look Financially Immature</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/4-money-lessons-you-can-learn-from-the-joneses">4 Money Lessons You Can Learn From the Joneses</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/why-even-millionaires-arent-happy-about-their-finances">Why Even Millionaires Aren&#039;t Happy About Their Finances</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-ways-to-reverse-lifestyle-creep">9 Ways to Reverse Lifestyle Creep</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/8-self-destructive-habits-that-keep-you-in-debt">8 Self-Destructive Habits That Keep You in Debt</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Lifestyle bad friend bad influence friend types keeping up with the joneses money lessons personality types Fri, 12 Jan 2018 09:00:07 +0000 Aja McClanahan 2086411 at http://www.wisebread.com 10 Less Awkward Ways to Ask a Friend for Your Money Back http://www.wisebread.com/10-less-awkward-ways-to-ask-a-friend-for-your-money-back <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-less-awkward-ways-to-ask-a-friend-for-your-money-back" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/friends_splitting_bill_639972450.jpg" alt="Woman asking friend for her money back" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>So, you loaned your best friend some money. Months have passed and there's still no sign of it. Now you need that money back, but you don't want to be rude by asking for it. How do you go about it without causing offense, or jeopardizing the friendship? Here are a few ways to tackle this awkward subject without losing your buddy. (See also: <a href="http://www.wisebread.com/10-money-moments-that-are-awkward-for-everyone?ref=seealso" target="_blank">10 Money Moments That Are Awkward for Everyone</a>)</p> <h2>1. First and foremost, ask politely</h2> <p>People get hung up on the idea of asking someone for money. &quot;What will they think of me?&quot; &quot;What if they say I'm being inappropriate?&quot; Well, let's start with the fact that your friend has already taken that step and asked you for money. Money, by the way, that you gave to them. So sweating about asking for it back is a little silly when you really think about it. (See also: <a href="http://www.wisebread.com/7-ways-pride-is-keeping-you-poor?ref=seealso" target="_blank">7 Ways Pride Is Keeping You Poor</a>)</p> <p>Now, how you go about asking for the money will make a difference. If you say something like, &quot;I'm a little short right now, do you think you could find a way to pay me back that money I let you borrow, please?&quot; then you should be fine. If you yell, &quot;Oy, where's my money, I lent you weeks ago?!!&quot; you risk adding tension to the relationship.</p> <h2>2. Find a way for them to work it off</h2> <p>If money is an issue for them, then maybe you can find some kind of favor they can do to wipe the slate clean. If they're a designer and you need a logo, can they do that for you and call it even? If they fix cars, could they take a look at yours and give an honest opinion about work that needs to be done? Everyone has some kind of talent or skill they can provide, and if you need it, they may appreciate the offer.</p> <h2>3. Barter for something they have that you want</h2> <p>This is another good way to get money back without actually having your friend pony up the cold hard cash. Is there something that your friend has that you would like? It should be of equivalent value to the cash you loaned them, so keep that in mind. Don't go asking for a flat screen TV because you loaned them $20. But if you know of something, and you think they'd be more than willing to part with it, give it a try. Maybe they have two of something, and would be happy to give you one. That would be an ideal way to make everyone happy.</p> <h2>4. Drop a subtle reminder</h2> <p>Presumably the money you loaned your friend was for something important. Very few people are going to respond to, &quot;Why do you need it?&quot; with &quot;No reason&quot; or &quot;Not telling.&quot; So, why not bring it up in casual conversation? &quot;Hey, how'd it go with that car repair? Everything OK?&quot; This should be enough of a prompt to let them know you haven't forgotten about the loan, and that they are still obligated to pay it. (See also: <a href="http://www.wisebread.com/how-to-talk-to-friends-and-family-about-money-without-making-everyone-mad?ref=seealso" target="_blank">How to Talk to Friends and Family About Money &mdash; Without Making Everyone Mad</a>)</p> <h2>5. Decline certain activities</h2> <p>Another way to drop hints that you need the money back is to decline offers to do things that involve spending money. If your friend asks you to go to lunch, you can say, &quot;I'd love to, but I'm really short on cash right now.&quot; If they ask you to go out on the town with them, just tell them straight, &quot;I don't have the money to do something like that right now.&quot; If your friend understands basic social cues, they should pick up on the hints and offer to pay you back, or pay for you when you go out to eat.</p> <h2>6. Offer payment plan options</h2> <p>So you've broached the subject with your friend, and they've refused to pay you back. In that case, come back with a flexible payment plan. They may be genuinely stuck and unable to give you the whole amount back at once. But if they can pay it back in installments over a few months, that's nowhere near as scary. If you aren't feeling like they will honor the verbal agreement, get something down on paper. Or consider using an online payment service and monthly escrow payments. But hopefully, you won't have to go to such lengths with a good friend. (See also: <a href="http://www.wisebread.com/the-16-cardinal-rules-of-loaning-money-to-friends-and-family?ref=seealso" target="_blank">The 16 Cardinal Rules of Loaning Money to Friends and Family</a>)</p> <h2>7. Tell them you need the money urgently</h2> <p>Whether or not this is true is entirely up to you. If you don't need the money badly, but have a feeling you'll never get the money back without creating a sense urgency, a little white lie doesn't hurt. However, it's very possible that the tables will have turned, and your good deed is biting you back hard. Now you are in need of that money as badly as they were when they came to you. Remind them of this. A tiny bit of guilt coupled with a plea can really help your friend see that they need to make good on the loan.</p> <h2>8. Paint them into a corner</h2> <p>You truly need your money back. What do you do? Well, the next time you're out with this friend and you're purchasing food or drinks, tell them they still owe you money, so they can pay for your share of the check. Most friends at this point will be cool about it. If they refuse, tell them you've been waiting for that money and cannot afford to pay right now. If they're out with you at a bar or restaurant, they clearly have some kind of disposable income on hand. (See also: <a href="http://www.wisebread.com/6-ways-to-split-the-bill-without-losing-friends?ref=seealso" target="_blank">6 Ways to Split the Bill Without Losing Friends</a>)</p> <h2>9. Ask someone close to them to remind them</h2> <p>If you're a little nervous to approach them directly, consider asking someone close to them. Maybe it's a spouse, another friend, or a family member. If you let them know that you don't want to embarrass them by just coming out and saying you want the money back, they may be able to drop hints on your behalf. Something like, &quot;I saw Jane the other day, she looked like she was having trouble paying a bill. Can you help her out?&quot; might get the ball rolling. They may be more direct and say, &quot;Jane loaned you some cash, isn't it time you paid her back?&quot; It all depends on the people involved and their relationship with the person who still owes you.</p> <h2>10. Consider a credit card repayment</h2> <p>Times have definitely changed. In the past, the idea of paying back that $50 with a credit card would have been unheard of. After all, you're not a business with an Electronic Funds Transfer console and a merchant account. But now, you don't have to be. They can use PayPal or Venmo to send you the money. Or they can use a service like Square, which actually lets you swipe their card with a small reader, and charges a transaction fee of 2.75-3.5 percent plus 15 cents, depending on how the credit card is processed. You can even prompt them to send money to you with the &quot;request money&quot; feature. (See also: <a href="http://www.wisebread.com/6-mobile-payment-tools-you-should-start-using-today?ref=seealso" target="_blank">6 Mobile Payment Tools You Should Start Using Today</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%2F10-less-awkward-ways-to-ask-a-friend-for-your-money-back&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F10%2520Less%2520Awkward%2520Ways%2520to%2520Ask%2520a%2520Friend%2520for%2520Your%2520Money%2520Back.jpg&amp;description=10%20Less%20Awkward%20Ways%20to%20Ask%20a%20Friend%20for%20Your%20Money%20Back"></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/u5180/10%20Less%20Awkward%20Ways%20to%20Ask%20a%20Friend%20for%20Your%20Money%20Back.jpg" alt="10 Less Awkward Ways to Ask a Friend for Your Money Back" 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/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/10-less-awkward-ways-to-ask-a-friend-for-your-money-back">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/21-things-you-should-make-your-kids-pay-for">21 Things You Should Make Your Kids 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/heres-what-i-learned-about-money-after-using-acorns">Here&#039;s What I Learned About Money After Using Acorns</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-money-goals-all-30-somethings-should-have">10 Money Goals All 30-Somethings Should Have</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-money-lessons-you-can-learn-from-your-pets">6 Money Lessons You Can Learn From Your Pets</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-unexpected-costs-that-could-ruin-your-wedding-budget">7 Unexpected Costs That Could Ruin Your Wedding Budget</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Life Hacks Budgeting borrowing money friends borrowing money friends with money friendship tips loan money lessons personal loan Mon, 08 Jan 2018 09:30:16 +0000 Paul Michael 2083858 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 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 How to Use the Holidays to Teach Kids About Money http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-use-the-holidays-to-teach-kids-about-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/halloween_is_here.jpg" alt="Halloween is here" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>My kids love the holidays. They plan their Halloween costumes as early as March; they ask to help make pumpkin pie the moment there's even a hint of chill in the air; and they have Hanukkah wish lists going nearly year-round.</p> <p>My husband and I get a kick out of their enthusiasm. It helps us remember the holiday magic we felt as children. But in addition to being fun and meaningful traditions, holidays also offer parents the opportunity to teach their kids about money.</p> <p>Before this year's holiday season kicks into high gear, consider using the occasions to teach your kids the following lessons about managing money:</p> <h2>Halloween</h2> <p>Your kids' favorite candy-based holiday provides you with several ways to teach important money management skills.</p> <h3>Costume budgeting</h3> <p>Whether you are footing the bill for your child's costume or you are asking them to use their own money, start by setting a dollar limit on the amount they can spend and offer to help them shop around. These limits will help your child understand the trade-offs they will have to make to stay within a budget.</p> <p>For instance, your daughter might find that the Wonder Woman costume at the local party store would blow her budget &mdash; but she could save money by stenciling Diana Prince's WW logo on a red T-shirt she already owns and adding white star stickers to a pair of blue shorts or a blue skirt. Recognizing that she could spend either money or time is an important part of learning to budget. (See also: <a href="http://www.wisebread.com/20-simple-and-cheap-halloween-costumes-for-kids?ref=seealso" target="_blank">20 Simple and Cheap Halloween Costumes for Kids</a>)</p> <h3>Candy negotiations</h3> <p>Not every candy in your child's trick-or-treat bag can be a Reese's Peanut Butter Cup or a Snickers. There's bound to be some candy corn, Good &amp; Plenty, or even just Dum Dums that your kids aren't particularly interested in. You can help them to learn the value of negotiation by fostering candy exchanges.</p> <p>After they've finished with trick-or-treating, encourage your kids to trade with each other. These candy swaps can help your kids figure out just how much they value coveted candy. Is another Mars Bar worth three Twizzlers? Just how many Tootsie Rolls are equivalent to a Blow Pop? This kind of negotiation can help your kids learn how to compromise and determine what they value.</p> <h2>Thanksgiving</h2> <p>Thanksgiving is a time for family, but it can also provide your kids with an excellent opportunity to learn about the importance of tracking your expenses.</p> <h3>Track spending</h3> <p>The average household spent $342 over Thanksgiving weekend in 2016, according to Statistic Brain. You can involve your kids in your Thanksgiving expenditures by asking them to keep a running tally of your spending for the holiday.</p> <p>Save your receipts from any Thanksgiving-related expenditures &mdash; everything from your purchase of pumpkin pie fixings, to the gas station fill-up on the way to Grandma's house, to the 75 percent off fitness tracker you bought for Aunt Sue on Black Friday. Hand over the receipts to your child so they can keep careful track of just how much Thanksgiving will cost you this year.</p> <p>Not only will this exercise in tracking your household spending help your kids to practice their math skills, but it will also help them see just how quickly expenses can add up.</p> <h2>Christmas and Hanukkah</h2> <p>Kids get understandably excited about the gift aspect of Christmas and Hanukkah, but these holidays are also a perfect opportunity to teach them how to manage their money.</p> <h3>Gift budgeting</h3> <p>It's so easy to go overboard when buying gifts for loved ones, and it's important for children to learn that you can give presents without breaking the bank. Even very young children can help you to create a list of everyone you want to give a present to. From there, decide on the amount of money you can afford to spend per person. Older children who will be buying their own presents for family can make this decision themselves, with your help. Younger kids can help by writing down the dollar amount you can spend.</p> <p>You can then start brainstorming gift possibilities. Have your kids comparison shop for prices or figure out alternatives if certain gifts aren't in the budget. This exercise can help your kids understand that generosity and spending too much aren't synonymous.</p> <h3>Wants and needs</h3> <p>Holidays can often be a time of excess, which means it can be tough for kids to recognize the difference between their wants and their needs. One way parents can help their kids learn those differences is to institute the Four Gift Rule. With this rule, each child receives:</p> <ol style="margin-left: 40px;"> <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> </ol> <p>Limiting your children's wish lists to four distinct categories helps your kids focus on the things that they truly need and the wants that they value most. You can make it clear to your kids that they can put more than one item in each category, but that they will only receive one present from each category.</p> <p>Not only will this system help save you money and time, but it will help your kids keep their gift expectations reasonable.</p> <h2>Holidays, with a side of money management</h2> <p>Enjoying the holiday season with your children is a perfect time to teach them some of the finer points of budgeting, negotiation, money management, and managing expectations.</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-use-the-holidays-to-teach-kids-about-money&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520to%2520Use%2520the%2520Holidays%2520to%2520Teach%2520Kids%2520About%2520Money.jpg&amp;description=How%20to%20Use%20the%20Holidays%20to%20Teach%20Kids%20About%20Money"></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%20Use%20the%20Holidays%20to%20Teach%20Kids%20About%20Money.jpg" alt="How to Use the Holidays to Teach Kids About Money" 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/how-to-use-the-holidays-to-teach-kids-about-money">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-3"> <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/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-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/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 budgeting children Christmas gift giving Halloween hanukkah Holidays kids money lessons negotiating Thanksgiving tracking Mon, 09 Oct 2017 08:30:08 +0000 Emily Guy Birken 2031775 at http://www.wisebread.com 8 Money Lessons I Learned From Three Weeks in Europe http://www.wisebread.com/8-money-lessons-i-learned-from-three-weeks-in-europe <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-money-lessons-i-learned-from-three-weeks-in-europe" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/kids_tourists_smiling_at_the_camera_near_eiffel_tower.jpg" alt="Kids tourists smiling at the camera near Eiffel Tower" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>In early June, my husband and I took a bucket list trip to Europe with our kids. While we've visited countless countries worldwide as a couple, this was our first &quot;big trip&quot; with our daughters, ages six and eight. In addition to the four of us, we took a family caregiver to help with the kids and give Mom and Dad a break. Over the course of 19 days, we spent time in Germany, Italy, and Switzerland. The entire ordeal was exhausting, but it was an absolute blast!</p> <p>Fortunately, we planned far enough ahead that we didn't spend too much out of pocket while we were there. By leveraging <a href="http://www.wisebread.com/top-5-travel-reward-credit-cards?ref=internal" target="_blank">travel rewards credit cards</a> and setting a daily spending budget, we were able to get the entire trip, which would normally cost $20,000 retail, for around $3,500. (See also: <a href="http://www.wisebread.com/5-steps-to-getting-a-free-or-close-to-free-vacation-in-9-months-or-less-with-credit-cards?ref=seealso" target="_blank">5 Steps to Getting a Free (or Close to Free) Vacation with Credit Cards</a>)</p> <p>In addition to the virtues of planning ahead as a savings strategy, we learned numerous financial lessons during our travels. While we were aware of most of these lessons already, seeing the world through our children's eyes served as the perfect reminder of the reasons behind some of our most important financial decisions.</p> <p>Here are a few lessons we relearned thanks to our trip abroad.</p> <h2>1. Failing to plan means planning to fail</h2> <p>One of the most expensive components of our trip was dining, mostly because there were five people in our group. No matter how cheaply you try to eat, feeding five people three meals a day means your food budget adds up quickly.</p> <p>While we tried to minimize our food costs by eating breakfast in our condo and searching for budget options, there were times where we didn't plan ahead and paid a steep price for our lack of preparation.</p> <p>One meal in particular stands out. We traveled by train to Rome in the morning and arrived in early afternoon without researching restaurants or stores in the immediate area. In a tired and hungry daze, we entered the first restaurant we walked past near Piazza Navona.</p> <p>Unfortunately, we paid big time for this oversight. Not only was the food overly touristy (pictures on the menu &mdash; blech), but our lunch set us back nearly $90. If we had searched ahead of time, we would have known we could have found much cheaper (and probably tastier) options had we walked a block in the other direction. (See also: <a href="http://www.wisebread.com/4-secrets-to-eating-great-food-for-cheap-while-traveling?ref=seealso" target="_blank">4 Secrets to Eating Great Food for Cheap While Traveling</a>)</p> <h2>2. Expensive does not equal better</h2> <p>That meal also served as a reminder that expensive isn't always better. We paid $90 for a lunch that was mediocre at best on that particular day, but at other times we enjoyed meals that were absolutely delicious and downright cheap.</p> <p>One that comes to mind was a meal we had in nearby Florence, Italy. In order to keep our food budget under control, we started researching local restaurants once we arrived. Eventually, we stumbled upon a sandwich shop &mdash; Panini Toscani &mdash; that was uber-cheap but was also the third highest rated restaurant in Florence.</p> <p>We wound up eating there twice. The food was delicious and convenient, and our total meal for five people was less than $20 both times.</p> <h2>3. Even budget trips can be fun</h2> <p>By the time we got to Switzerland (our last stop), I was pretty tired of spending money in general. So, when we had our final &quot;free day&quot; in the country, I spent some time looking for something fun and affordable to do. (See also: <a href="http://www.wisebread.com/7-countries-where-you-can-travel-on-30-a-day-or-less?ref=seealso" target="_blank">7 Countries Where You Can Travel on $30 a Day or Less</a>)</p> <p>Eventually, I remembered a town we drove by that had the most beautiful, clear-green lake I had ever seen. After looking up the details, I found that the tiny village of Lungern had a public beach and a few waterslides with a daily admission cost of about $5.25 per adult.</p> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5197/man_jumping_in_a_lake.jpg" width="605" height="454" alt="" /></p> <p>This relatively cheap day was probably the most fun we had. All of us swam and rode waterslides the entire day, stopping only to have a low-cost lunch.</p> <p>It just goes to show that budget travel can absolutely be fun, and that you don't have to spend a ton of money to enjoy yourself.</p> <h2>4. There's more than one &quot;right way&quot; to do things</h2> <p>One of the most rewarding components of travel is watching my kids react to the many ways other countries handle things differently. My kids were obsessed with euros, for example. They couldn't understand why anyone would choose to offer two euros in the form of a coin.</p> <p>I also had to explain why we didn't tip as much as we normally do. Since workers in Europe are paid higher wages, you don't have to tip 15&ndash;20 percent like you do in the states.</p> <p>While we could argue all day over which way is better, I told my kids there is more than one &quot;right way&quot; to do things sometimes. (See also: <a href="http://www.wisebread.com/7-countries-where-you-dont-have-to-tip-at-restaurants?ref=seealso" target="_blank">7 Countries Where You Don't Have to Tip at Restaurants</a>)</p> <h2>5. We actually need very little</h2> <p>While I wasn't sure we could pull it off, we made it through the entire trip with just carry-on luggage and two school-sized backpacks of stuff. It helped that one of our condos had a washing machine, but I was still amazed we enjoyed ourselves without many comforts from home.</p> <p>This just goes to show that most of us don't need a lot to be happy. We need clothes, food, and shelter, but everything else is optional. We can be happy and content without having a bunch of stuff to bog us down.</p> <h2>6. Most people are honest, but not everyone</h2> <p>Most of the people we dealt with abroad were both kind and honest &mdash; except for a couple of small incidences. First, we encountered a taxi driver who tried to charge us $28 (instead of running his meter) to take us four blocks in Rome. Not only was this outrageous since we'd paid $7 for the same ride earlier that day, but it was illegal for him to do this since the city of Rome regulates official taxis.</p> <p>Second, when we got home from the trip, we received a fraud alert from Chase. Apparently, someone had swiped our card information and tried to make a purchase in Peru.</p> <p>This kind of stuff happens no matter where you are, so it's important to always stay vigilant. (See also: <a href="http://www.wisebread.com/7-ways-to-protect-yourself-from-theft-while-traveling?ref=seealso" target="_blank">7 Ways to Protect Yourself From Theft While Traveling</a>)</p> <h2>7. Exchange rates matter</h2> <p>Whenever I travel abroad, I almost always struggle to keep track of the currency exchange rate and how it affects everything we buy. But, since a single U.S. dollar is currently worth just .87 euros, this is an important detail to keep in mind. If something costs 10 euros, for example, you're actually paying $11.55.</p> <p>While I used a <a href="http://www.wisebread.com/smarter-security-and-no-foreign-transaction-fees-the-best-credit-cards-to-use-while-on-vacation?ref=internal" target="_blank">credit card with no foreign transaction fees</a> to pay most of our expenses, I tried hard to impart this lesson on our kids. No matter where you are in the world, chances are good the money isn't worth the same as at home. And, if you don't pay attention, you could wind up spending a lot more than you think!</p> <h2>8. Some experiences are worth the money, even if they're expensive</h2> <p>While we definitely saved a bundle on this trip due to the way we leveraged credit card rewards, we still spent $3,500 of our hard-earned dollars. On top of that, I probably spent 30&ndash;50 hours planning not only our credit card rewards strategy, but our hotels, flights, and trains.</p> <p>The thing is, I don't regret a single cent &mdash; or a single second. Over my lifetime, I've learned that some experiences are worth the money and the time, even if it seems like a lot.</p> <p>It's hard to put a price tag on a fun family trip that exposed us to cultures in a completely different part of the world. I believe it was priceless. Some memories are worth saving up to splurge on. (See also: <a href="http://www.wisebread.com/how-to-build-your-best-travel-budget?ref=seealso" target="_blank">How to Build Your Best Travel Budget</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" data-pin-save="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F8-money-lessons-i-learned-from-three-weeks-in-europe&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F8%2520Money%2520Lessons%2520I%2520Learned%2520From%2520Three%2520Weeks%2520in%2520Europe.jpg&amp;description=8%20Money%20Lessons%20I%20Learned%20From%20Three%20Weeks%20in%20Europe"></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/u5180/8%20Money%20Lessons%20I%20Learned%20From%20Three%20Weeks%20in%20Europe.jpg" alt="8 Money Lessons I Learned From Three Weeks in Europe" 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/holly-johnson">Holly Johnson</a> of <a href="http://www.wisebread.com/8-money-lessons-i-learned-from-three-weeks-in-europe">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/the-best-airline-rewards-programs-for-trips-to-europe">The Best Airline Rewards Programs for Trips to Europe</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/amazing-destinations-you-can-go-to-with-rewards-points-and-miles">Amazing Destinations You Can Go to With Rewards Points and Miles</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/once-in-a-lifetime-experiences-ive-earned-with-credit-card-rewards">Once-In-A-Lifetime Experiences I&#039;ve Earned With Credit Card Rewards</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-families-can-earn-and-use-travel-rewards">How Families Can Earn and Use Travel Rewards</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-countries-where-you-can-retire-for-1000-a-month">5 Countries Where You Can Retire for $1,000 a Month</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Frugal Living Travel Europe exchange rates experiences family food costs money lessons rewards vacation Wed, 23 Aug 2017 08:30:11 +0000 Holly Johnson 2007686 at http://www.wisebread.com 6 Lessons on How to Be a Financial Grownup From Bobbi Rebell http://www.wisebread.com/6-lessons-on-how-to-be-a-financial-grownup-from-bobbi-rebell <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-lessons-on-how-to-be-a-financial-grownup-from-bobbi-rebell" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_serious_successful_517011428.jpg" alt="Woman learning how to be a financial grownup" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Thanks to Toys 'R Us and its catchiest ad ever, I spent several years never wanting to grow up. Being a kid was easy, and being a grownup always seemed terrifying. It meant being financially responsible for everything and struggling to make ends meet while pursuing my goals.</p> <p>Luckily, every single person on this planet can relate to that fear, and they are all trying to make it on their own, as well. So when I read the new book by <a href="http://www.bobbirebell.com/" target="_blank">Bobbi Rebell</a>, award-winning TV anchor and former personal finance columnist at Reuters, entitled <em>How to Be a Financial Grownup</em>, I was immediately put at ease.</p> <p>Rebell's book is a compelling collection of stories from successful entrepreneurs and famous faces, detailing the moments they became financial grownups, and the wisdom they picked up along the way. Rebell brilliantly interweaves these powerful stories with her own expertise, and provides actionable steps to make your financial goals a reality. Here are the lessons on how to be a financial grownup that stuck with me the most.</p> <h2>1. Don't compare your path to others</h2> <p>The third chapter of <a href="http://amzn.to/2rRSEUK" target="_blank"><em>How to Be a Financial Grownup</em></a>, titled &quot;Careers Are for Making Money&quot; is my absolute favorite section of the book. Fashion designer Cynthia Rowley, Betterment CEO Jon Stein, Macy&rsquo;s Chairman and CEO Terry J. Lundgren, and others share their stories of how they made it big. All have extremely different paths to success, and some had significant bumps along the way. But you have your own unique background, which shapes your own unique goals. Follow them, and embrace the fact that you are putting yourself out there as someone new, hungry, and different from the rest.</p> <h2>2. Accept that failure is a given</h2> <p>You're going to fail. You're going to struggle. You're going to get burned. It's inevitable. And failure can come in many different forms, but none should deter you from chasing your goals. An extreme example of struggle is when Jim Cramer, host of <em>Mad Money</em>, shared his story with Rebell of being the target of multiple robberies while living in Los Angeles, and upon returning from a journalism assignment in San Diego, learned he was evicted from his L.A. apartment. Cramer was homeless, and his financial grownup moment came when he realized he never wanted to be that poor again. He switched from a career in journalism to finance.</p> <p>The good thing about human beings is our incredible ability to adapt to our surroundings. So when you're facing an epic financial or professional failure, you'll still be able to get some clarity, pick yourself up, and try again the next day.</p> <h2>3. Allow yourself to splurge on those lattes, sometimes</h2> <p>Rebell fully acknowledges that gourmet, pricey lattes should not be an everyday occurrence. We've heard a million times before that expensive coffee is the reason we're all broke, why we can't buy houses, etc. Luckily, Rebell finds a healthy balance between overspending on and abstaining from your morning beverage of choice. Her two exceptions to the &quot;never buy lattes&quot; rule are as follows:</p> <ul> <li>&quot;Buy coffee at a coffee shop if you're going there for social reasons. Meeting friends at a coffee shop is going to be a lot cheaper than going out for a meal.&quot;<br /> &nbsp;</li> <li>&quot;If you're using the coffee shop as an ad hoc office, by all means buy some coffee. Sitting at a coffee shop for a few hours to get some work done, or having a meeting, is a lot less expensive than paying rent on an office.&quot;</li> </ul> <p>See? It's all about balance and moderation. Being a financial grownup shouldn't mean setting restrictive limits on things you enjoy, so long as you don't overdo it.</p> <h2>4. Push bad debt out of your way</h2> <p>According to Rebell, bad debt &mdash; most commonly credit card debt and student loan debt &mdash; is what's standing in your way of becoming a financial grownup. You don't need all of your bad debt to be paid off to before you become a financial grownup, though. The first step to reaching financial maturity is acknowledging the obstacles in front of you. Then you come up with a strategy to defeat them, including reasonable goals that you can meet on a flexible timeline. This process will never be as simple as, &quot;Day 1: Add up bad debt, Day 2: Pay it all off,&quot; unless you stumble upon a pile of cash. But coming up with a realistic plan that works will be immensely rewarding.</p> <h2>5. Nurture your relationship with credit</h2> <p>The thing about credit is that it's not all bad. We all want to be careful about the way we spend money and manage bad debt, but credit is something to be built, embraced, and closely monitored. You need it, even if you'd rather avoid it altogether.</p> <p>This is something millennials should work on. NerdWallet found that about a third of people ages 18 to 34 have never applied for a credit card. While it's wise to have a healthy fear of how irresponsible spending with credit cards can ruin your life, you still need to build credit in order to eventually buy a car or house, and to do all the other things financial grownups do. Rebell suggests using only a small portion of the credit you have available, &quot;ideally about 10 percent, and really try to use no more than 30 percent.&quot;</p> <h2>6. Stop asking the wrong questions</h2> <p>When Rebell asked Kevin O'Leary, successful entrepreneur and star of <em>Shark Tank</em>, to share his financial grownup moment, he recalled a powerful conversation with his stepfather. O'Leary was in high school when his stepfather, George, asked him what he wanted to do with his life. O'Leary wanted to skip college and become a photographer. George told him that &quot;'to be or not to be' isn't the question. The question is: What are you willing to do in order to be what you want to be?&quot;</p> <p>That shift in mindset helped O'Leary realize he wasn't willing to make the sacrifices involved in becoming a photographer. He wanted to make money, and in his business ventures he has made lots of it. That financial freedom has, in turn, allowed him to take up photography in his free time.</p> <p>So when you think about each goal you set for yourself, you shouldn't be asking what you want, but rather, how you're going to get it, and strategize from there.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/chrissa-hardy">Chrissa Hardy</a> of <a href="http://www.wisebread.com/6-lessons-on-how-to-be-a-financial-grownup-from-bobbi-rebell">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/9-money-lessons-to-take-from-the-great-depression">9 Money Lessons to Take From the Great Depression</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/these-5-money-saving-hacks-are-a-huge-waste-of-time">These 5 Money-Saving Hacks Are a Huge Waste of Time</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/read-ageproof-living-longer-without-running-out-of-money-or-breaking-a-hip-to-live-your-best-life">Read &quot;AgeProof: Living Longer Without Running Out of Money or Breaking a Hip&quot; to Live Your Best Life</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/5-tips-from-playbook-for-tough-times-thatll-help-you-live-your-best-life">5 Tips From &quot;Playbook For Tough Times&quot; That&#039;ll Help You Live Your Best Life</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/flashback-friday-38-money-lessons-we-can-learn-from-celebrities">Flashback Friday: 38 Money Lessons We Can Learn From Celebrities</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Frugal Living Budgeting budgeting finances financial grownup financial success frugal living investing life lessons money lessons saving money Thu, 08 Jun 2017 08:30:18 +0000 Chrissa Hardy 1962380 at http://www.wisebread.com 5 Stocks Your Kids Would Love to Own http://www.wisebread.com/5-stocks-your-kids-would-love-to-own <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-stocks-your-kids-would-love-to-own" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-525331477.jpg" alt="Learning which stocks your kids would love to own" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When taking a look at your 401(k) or investment accounts, you may often daydream about how cool it would have been if you started investing earlier. That way, maybe you could have jumped on investments that turned out to be home runs, such as Apple [Nasdaq: APPL] and Berkshire-Hathaway [NYSE: BRK].</p> <p>If you have children, you're blessed with the opportunity of granting them the greatest gift any investor could want: time. Let's take a look at some companies whose shares would make a great gift for your kids to not only help them learn about investing, but also get them excited about money and business in general.</p> <h2>1. Snap Inc. [NYSE: SNAP]</h2> <p>Do you know what's cooler than a million dollars? $3.4 billion, which is how much money the parent company of Snapchat raised in its March 1, 2017 initial public offering (IPO). Since it has been estimated that <a href="https://blog.hootsuite.com/snapchat-demographics/" target="_blank">60 percent of Snapchat users</a> are under age 25 and nearly one in four hasn't finished high school, there's a very good chance that your children use this popular social media app.</p> <p>Leverage their interest in the app to keep them focused on tracking a stock price and keeping abreast of the effects of company announcements, such as <a href="http://www.recode.net/2016/9/24/13039900/snapchat-spectacles-google-glass-spiegel" target="_blank">Snap's Spectacles</a>, on the valuation of a publicly-traded company. Bonus: You could use Snapchat to send them their monthly allowance, keep a digital record of when you made that money available, and check how long it lasts them. (See also: <a href="http://www.wisebread.com/7-modern-ways-to-send-money-to-your-kid?ref=seealso" target="_blank">7 Modern Ways to Send Money to Your Kid</a>)</p> <h2>2. The Walt Disney Co. [NYSE: DIS]</h2> <p>&quot;Do you want to buy a stock share? Come on let's go and trade!&quot; If you started reading that in Princess Anna's voice, then you're a Disney parent and your kiddos spend a lot of time singing along to similar tunes. Keeping interested in this stock is easy because your kids will read about movie productions, toy developments, theme park construction, and other family entertainment projects.</p> <p>Disney is a great stock to hold onto for the long run, which is a maxim that you want to instill in any young investor. If you were to have held Disney stock from March 1, 2007 to March 1, 2017, you would have seen the stock price go from $34.39 to $111.04 (a 222.88 percent increase!). Plus, it's a dividend-paying stock, giving you a segue to introduce the concept of fixed income securities. (See also: <a href="http://www.wisebread.com/what-are-income-stocks?ref=seealso" target="_blank">What Are Income Stocks?</a>)</p> <h2>3. Amazon.com, Inc. [Nasdaq: AMZN]</h2> <p>Parcel-delivering drones, robots that work in warehouses, and voice-activated speakers that can control other home devices. It'll never be dull moment chatting with your kid about recent news from the Seattle-based ecommerce giant.</p> <p>If you have the budget, Amazon.com is one of those <a href="http://www.wisebread.com/7-expensive-stocks-that-are-totally-worth-it" target="_blank">expensive stocks that are totally worth it</a>. Just when you think that the stock can't hit new heights, an uptick during the early November and December holiday season gives the stock price another boost. Time your gift well before the holiday season and provide immediate gratification to your kids from a stock price bump.</p> <h2>4. Foot Locker, Inc. [NYSE: FL]</h2> <p>On the other hand, here's one stock to develop in your children an appreciation for delayed gratification. If your kid is a sneakerhead or sports jock, they'll include a new pair of athletic shoes in their Christmas list. With a current stock price close to $75 per share, one share of Foot Locker goes for about the same as a brand-new, high-quality pair of athletic shoes meant to last at least one year.</p> <p>Give your child the option of the shoes or one share of Foot Locker, Inc. (Or pick another company that better matches the price of the shoes that they want, including Nike Inc. [NYSE: NKE] or Skechers USA Inc. [NYSE: SKX].) When your child chooses the stock over the shoes, they'll realize that they'll have more available after a one-year period. If they're still unconvinced, ask them to try selling a pair of old, smelly shoes after one year of (ab)use from a tween.</p> <p>Setting a strong foundation for delayed gratification will boost your child's ability to save for retirement and build an emergency fund. (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>5. Tesla Inc. [Nasdaq: TSLA]</h2> <p>The concept of saving for retirement is completely foreign to most individuals under age 18, maybe even for some under age 25! Getting somebody to plan about 40 to 60 years ahead is a difficult task. One way to get your kid thinking about the future with a fun and optimistic tone is to gift them stock from Tesla, because this company is in the business of electric cars, energy storage batteries, and solar panels.</p> <p>Plus, Tesla's CEO Elon Musk is so cool as to inspire the way actor Robert Downey Jr. plays Tony Stark in all Marvel films. By following the decisions of a cool and smart CEO, your child could gain further interest in business and entrepreneurship.</p> <h2>How custodial Roth IRAs can help with investing education</h2> <p>If your kid is under age 18 and makes some money on their own, such as through a hobby or during the summer, consider opening a custodial Roth IRA for them. This is a great way to educate your child about investing and providing a &quot;sandbox&quot; in which to make real-life decisions with investments. (See also: <a href="http://www.wisebread.com/does-your-kid-need-an-ira?ref=seealso" target="_blank">Does Your Kid Need an IRA?</a>)</p> <p>In 2017, your kid could contribute up to $5,500 to a custodial Roth IRA and watch those contributions grow tax-free forever. Many financial institutions require an account minimum of $100 to open a custodial Roth IRA. You could start with some stocks from this list or other stocks that your kid is interested in and eventually move on to index funds and mutual funds. To minimize fees, just keep post-contribution transactions at a minimum.</p> <p>Gifting your child stocks paired with several years of retirement savings could be one of the best gifts you could ever give them for a brighter financial future.</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/5-stocks-your-kids-would-love-to-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/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-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/how-the-risk-averse-can-get-into-the-stock-market">How the Risk Averse Can Get Into the Stock Market</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/10-questions-to-ask-before-you-sell-a-stock-or-a-fund">10 Questions to Ask Before You Sell a Stock or a Fund</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment children fun stocks gifts kids money lessons Roth IRA stock market stocks young investors Fri, 14 Apr 2017 08:30:13 +0000 Damian Davila 1925374 at http://www.wisebread.com 6 Important Credit Card Lessons Your Parents Didn't Teach You http://www.wisebread.com/6-important-credit-card-lessons-your-parents-didnt-teach-you <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-important-credit-card-lessons-your-parents-didnt-teach-you" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-594938216.jpg" alt="Learning credit card lessons parents didn&#039;t teach you" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Our parents taught us many of life's important lessons, but did they adequately prepare us for smart credit card use? Maybe not. Here are six credit card lessons your parents might not have taught you.</p> <h2>1. Credit cards offer more fraud protection than debit cards</h2> <p>Credit cards offer a much greater level of protection against fraud than debit cards. Many credit companies come with $0 fraud liability, meaning you aren't responsible for any reported fraudulent spending. In most of these cases, the creditor will credit your account immediately. However, with debit card purchases, it can take the bank up to two weeks to refund your money, and even then you might still be held responsible for a certain percentage of the charges. (See also: <a href="http://www.wisebread.com/4-reasons-credit-is-safer-than-debit?ref=seealso" target="_blank">4 Reasons Credit Is Safer Than Debit</a>)</p> <h2>2. You must be proactive to build your credit</h2> <p>A common myth is that an open credit card account is all you need to build your credit. Credit scores reflect an individual's relationship with debt management. Lenders and creditors want to see how you interact with finances, especially if you are going to take on more debt. This doesn't mean you need to be in debt to have a good credit score. Instead, a credit score is established through paying your bills on time, whether that be your credit card bill or your mortgage.</p> <p>One of the <a href="http://www.wisebread.com/the-5-things-with-the-biggest-impact-on-your-credit-score" target="_blank">biggest factors in determining your credit score</a> is your credit utilization ratio. Lenders want to see how much debt you have versus how much credit you have access to.</p> <p>Build your credit by using and paying off your credit card, making payments on time, and asking for credit line increases. (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>3. Keep your credit utilization ratio as low as possible</h2> <p>Generally, it is important to have a credit utilization ratio of 30 percent or less. For example, someone with $500 of debt on a $1,000 total credit line will look worse to creditors than someone who has $5,000 debt with a total credit line of $30,000.</p> <p>Calculate your credit utilization ratio by dividing your debt total by your credit line total. For example, $500 of debt divided by a $1,000 credit line would equal a 50 percent credit utilization ratio, whereas $5,000 of debt divided by a $30,000 credit line is just over 16 percent. Remember, your credit line total is the combination of all lines of credit you have open.</p> <h2>4. Interest payments can make debt hard to pay off</h2> <p>A few thousand dollars of debt can feel like an impossible hurdle if you try to pay it off in minimum payments only. You will feel like you are making zero progress on your debt when you have to pay interest. Interest makes anything you purchased with a credit card more expensive. Did you really mean to pay double for that clearance shirt? (See also: <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=seealso" target="_blank">Fastest Way to Pay Off $10K in Credit Card Debt</a>)</p> <h2>5. Differences in interest rates do matter</h2> <p>Perhaps your parents didn't make a big deal about the difference between an A and A-, but when it comes to interest rates, the difference is noticeable. Even a half of a percent can make a big difference when it comes to your monthly payments on a loan. Getting a $20,000 car loan for three years at 4 percent doesn't seem much different from the same car loan at 3.25 percent, but it is. The difference is $6 a month, or $216 in the lifetime of the loan. Wouldn't you rather that money go to something necessary or fun instead of an interest payment? The same is true of paying interest on a credit card. (See also: <a href="http://www.wisebread.com/5-ways-to-pay-off-high-interest-credit-card-debt?ref=seealso" target="_blank">5 Ways to Pay Off High Interest Credit Card Debt</a>)</p> <h2>6. Rewards don't negate debt</h2> <p>We know your mom always told you to look at the bright side of things, but credit card rewards are not the bright side. If you are constantly running up credit card debt to benefit from rewards points, then you will be sorely disappointed by their rate of return. There is no credit card on the market with a reward program that makes going into debt worth it.</p> <p>Pay off your monthly credit card bill to ensure you benefit from the rewards, but aren't being burned by the interest rate. (See also: <a href="http://www.wisebread.com/7-credit-card-reward-tips-many-people-dont-follow?ref=seealso" target="_blank">7 Credit Card Reward Tips Many People Don't Follow</a>)</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/6-important-credit-card-lessons-your-parents-didnt-teach-you">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/the-5-best-credit-cards-with-annual-fees">Best Credit Cards With Annual Fees</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-strategies-to-wipe-out-your-credit-card-balance">5 Strategies To Wipe Out Your Credit Card Balance</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/reduce-your-credit-limits-to-manage-your-spending">Reduce Your Credit Limits to Manage Your Spending</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-a-solid-credit-score-saves-you-money">How a Solid Credit Score Saves You 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/10-tricks-to-save-money-with-credit-cards">10 Tricks to Save Money with Credit Cards</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Credit Cards credit debt fraud protection interest payments money lessons parents rewards Wed, 12 Apr 2017 08:30:15 +0000 Ashley Eneriz 1925376 at http://www.wisebread.com 6 Money Lessons We Can Learn From the Easter Bunny http://www.wisebread.com/6-money-lessons-we-can-learn-from-the-easter-bunny <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-money-lessons-we-can-learn-from-the-easter-bunny" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-160593094.jpg" alt="Learning money lessons from the Easter bunny" title="" class="imagecache imagecache-250w" width="250" height="142" /></a> </div> </div> </div> <p>Easter is upon us once again, and with it comes the arrival of the Easter bunny and baskets full of treats. Sure, everything about this holiday is delicious and worth the caloric splurge &mdash; right down to the succulent Easter ham &mdash; but what can we learn from all this spending? Maybe it's time to embrace the bits of financial wisdom we can get from the Easter bunny himself. What can he teach us about this annual day of sweet treats? And how can he help us with our money over time?</p> <h2>1. Hard work is rewarded</h2> <p>Hunting for Easter eggs is something most of us remember fondly from our childhood, and pass on to the kids of today. And there's a simple lesson to be learned here; the more work you put in, the more you get out of it. In this case, get out there early, search every nook and cranny, and fill your basket with as many eggs as it can hold. Then, there's egg decoration. Many schools, and some families, like to make a competition out of the task. While a simple egg dipped in dye is ok, those who really go the extra mile win the day. And that can mean winning a basketful of goodies, or a fun experience.</p> <p>In your career, your financial management, or a creative pursuit, the more effort you put in, the more you'll get out of the entire process. You'll also be much prouder of the reward you receive, knowing you truly earned it. So do the work and get the rewards &mdash; financial or otherwise.</p> <h2>2. Don't compare your assets with your neighbor's</h2> <p>How many times have you seen some kids continually look into the baskets of their friends, saying, &quot;No fair, you have way more than me!&quot; And &quot;How many have you got?&quot; They're so concerned with what others have, they get less eggs than they could if they were focused on their own egg haul. Plus, it's also a quick path to misery. They may have only four or five eggs in the basket, but that's still a bunch of free candy and goodies that they didn't have an hour earlier.</p> <p>It's been said that we measure our happiness by our neighbors, and that can be frighteningly true. For example, you're proud of your new car, especially next to your neighbor's old rust bucket. But when they trade that in for a brand-new car twice the price of yours, with all the bells and whistles, your paradigm shifts. Your great car &hellip; now, is not so great, even though it's the exact same car. This attitude can make you spend money when you don't want to. So, focus on yourself, not what others have.</p> <h2>3. Never put all your eggs in one basket</h2> <p>When kids are running around, grabbing as many eggs as they can to load up their baskets, there's no problem. But in the real world, we want to avoid this practice.</p> <p>Whether it's the stock market, your career, investors, or clients, diversification is the key. When it comes to your career, these days it's essential to have other irons in the fire. Layoffs happen daily in America, and all too often, people are finding it hard to get the same job because it's dying out. You should consider finding other ways to bring in money, in areas that are growing in strength; even if it's just a side business flipping thrift store finds on eBay. (See also: <a href="http://www.wisebread.com/15-ways-to-make-money-outside-your-day-job?ref=seealso" target="_blank">15 Ways to Make Money Outside Your Day Job</a>)</p> <h2>4. Something of value may not be visible &hellip; yet</h2> <p>That Easter egg hidden in the dense grass isn't something that can be found immediately. But for those with a little perseverance, it's waiting to be collected. So much that we do in life applies to that moment. It's the idea sitting in the back of your head that can become a business venture. It's the investment opportunity that seems like nothing special. Or, if we are to be very literal, it's a hidden treasure tucked away in your basement or attic; something worth a small fortune, just waiting to be uncovered one day. Keep your eyes peeled for the prospect of uncovering something of value, and it's much more likely to happen.</p> <h2>5. Don't judge a book by its cover</h2> <p>In the case of Easter, don't judge the contents of an egg by its shell. Many parents and schools will put the most valuable prizes, like cash and gift cards, inside the most unassuming eggs. The big, gold, shiny eggs may well be fool's gold, containing only a few candies.</p> <p>Now, if you have ever shopped at a garage sale or thrift store, and found something valuable, you'll know it was hiding in plain sight. It didn't look like much, but to the right person, it was worth a lot. People can be judged in just the same way. Do you hire someone based on how they look, or what they offer? It is, of course, the latter. A home can look terrible at first glance, but after a little sweat equity, they can double in value. Find your hidden gem.</p> <h2>6. Something can come out of nothing</h2> <p>We all know (well, most of us, anyway) that the Easter bunny doesn't really exist. However, look at the excitement and incredible good will generated by the existence of this fantasy, including the revenue generated every Easter. We spend big bucks on this holiday each year. And yet, there is no bunny. There's no magic. It's all something we have created. So, do likewise with your finances. Can you find a way to create money out of something that doesn't exist right now? Is there a gap in the market? Do you see a need that is not being fulfilled, like all those contestants who appear on <em>Shark Tank</em>? It may not exist right now, but you can make it real, and you can make it a financial success.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/6-money-lessons-we-can-learn-from-the-easter-bunny">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-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/heres-what-i-learned-about-money-after-using-acorns">Here&#039;s What I Learned About Money After Using Acorns</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-a-simple-do-not-buy-list-keeps-money-in-your-pocket">How a Simple &quot;Do Not Buy&quot; List Keeps Money in Your Pocket</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/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-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/21-times-spending-more-will-save-you-money">21 Times Spending More Will Save You Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Shopping Easter easter bunny financial lessons Holidays money lessons saving money wisdom Wed, 12 Apr 2017 08:00:10 +0000 Paul Michael 1925855 at http://www.wisebread.com 5 Money Moves to Make Before Moving Out on Your Own http://www.wisebread.com/5-money-moves-to-make-before-moving-out-on-your-own <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-money-moves-to-make-before-moving-out-on-your-own" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-640229364.jpg" alt="Making money moves before moving out on her own" title="" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Today, it's not uncommon for young adults to continue living with their parents well into their 30s. A report released in 2015 by the Pew Research Center said that 32.1% of adults from the ages of 18 to 34 were living in their parents' home in 2014, the most common type of living arrangement for people in this age range.</p> <p>But there does come a day when it's finally time to leave the nest. And before you do that, you need to be financially healthy enough to make it on your own.</p> <p>Here are five money moves you need to make before you leave your parents' home.</p> <h2>1. Practice Paying Bills</h2> <p>Paying a mortgage or rent is an important financial responsibility, but it's not the only bill that adults face when moving out on their own. There are groceries to buy, car loans to pay off, utilities to cover, and transportation fees that eat into monthly budgets.</p> <p>To prepare for the rigors of paying these bills, you should practice being financially responsible before moving out of your parents' home. This might mean paying monthly rent to your parents while you continue to live in their home. You should also ask if you can contribute financially in other ways, perhaps by paying part of the monthly utility or garbage pickup bills.</p> <p>By paying at least some of the bills that your parents face each month, you'll get a much more accurate taste of what it's like to live on your own.</p> <h2>2. Create a Budget</h2> <p>No one enjoys making a household budget. But a budget serves as a blueprint that tells you how much you can spend each month. Without one, it's easy to run up debts as you spend more dollars than you can afford.</p> <p>Before you leave your parents' home, you need to <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=internal" target="_blank">make a budget</a> of your own. This budget should include all the money you expect to make each month, along with a list of regular monthly expenses and bills, such as rent, utilities, transportation, phone bills, student loan payments, and car payments.</p> <p>A budget should also include guidelines for costs that vary each month. This includes everything from groceries to dining out to going to the movies.</p> <h2>3. Create an Emergency Fund</h2> <p>Financial experts say that all adults should have six months' to a year's worth of daily living expenses saved in an emergency fund. You can then tap this fund if a financial crisis, such as a job loss, hits. An emergency fund can also be used to cover unexpected major expenses, such as the cost of replacing a car's transmission or a blown water heater.</p> <p><a href="http://www.wisebread.com/a-step-by-step-guide-to-creating-your-emergency-fund?ref=internal" target="_blank">Starting an emergency fund</a> doesn't have to be painful. Simply set aside $100, $200, or more each month to slowly build that fund. Smart savers will have at least some money stashed in an emergency fund before they move out on their own.</p> <h2>4. Pay Off Those Debts</h2> <p>Moving out with loads of <a href="http://www.wisebread.com/the-fastest-method-to-eliminate-credit-card-debt?ref=internal" target="_blank">credit card debt</a>? That's not the smartest financial move. It can be hard to pay off this high-interest debt when you're saddled for the first time with monthly rent or mortgage payments. (See also: <a href="http://www.wisebread.com/5-ways-to-pay-off-high-interest-credit-card-debt?ref=seealso" target="_blank">5 Ways to Pay Off High Interest Credit Card Debt</a>)</p> <p>The smart move is to set aside as much extra money as you can to pay down your credit cards before moving. That way, you can start your independent life with a clean financial slate.</p> <h2>5. Build a Solid Credit Score</h2> <p>FICO credit scores matter today. Lenders use them to determine who qualifies for auto loans, mortgages, and other loans. Most lenders today consider a FICO credit score of 740 or higher to be a top-tier score. Scores under 640 give lenders pause.</p> <p>Before you head out, you should take steps to <a href="http://www.wisebread.com/7-ways-to-increase-your-credit-score-quickly?ref=internal" target="_blank">build your credit score</a>. The best way to do this is to pay all your bills on time every month and to pay off as much of your credit card debt as possible. By making on-time payments on credit cards or auto loans, you'll steadily build your credit score. Then, when it's time to move, you'll be doing so with a healthy credit score attached to your name. This will help you whether you're looking for a place to rent or even getting a job. (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> <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/5-money-moves-to-make-before-moving-out-on-your-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-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/6-signs-youre-making-all-the-right-money-moves">6 Signs You&#039;re Making All the Right Money Moves</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/8-money-moves-for-the-newly-independent">8 Money Moves for the Newly Independent</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-signs-youre-financially-ready-to-start-a-family">7 Signs You&#039;re Financially Ready to Start a Family</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/the-7-debt-payoffs-that-boost-your-credit-score-the-most">The 7 Debt Payoffs That Boost Your Credit Score the Most</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance bills budgeting credit score debt emergency funds living with parents millennials money lessons moving out young adults Fri, 10 Mar 2017 10:30:40 +0000 Dan Rafter 1902840 at http://www.wisebread.com