Family http://www.wisebread.com/taxonomy/term/4566/all en-US Best Money Tips: How to Be a Frugal Parent During the Holidays http://www.wisebread.com/best-money-tips-how-to-be-a-frugal-parent-during-the-holidays <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/best-money-tips-how-to-be-a-frugal-parent-during-the-holidays" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mother_child_christmas_636545352.jpg" alt="Mother being frugal parent during the holidays" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Welcome to Wise Bread's <a href="http://www.wisebread.com/topic/best-money-tips">Best Money Tips</a> Roundup! Today we found articles on how to be a frugal parent during the holidays, easy investment tips for beginners, and what to do with your time and money when you retire.</p> <h2>Top 5 Articles</h2> <p><a href="https://www.thesimpledollar.com/how-to-be-a-frugal-parent-during-the-holiday-season/">How to Be a Frugal Parent During the Holiday Season</a> &mdash; Get your kids thinking about what the holidays are like without gifts. Talk about things you can do as a family that everyone would enjoy. [The Simple Dollar]</p> <p><a href="https://fortunateinvestor.com/investing-beginners-easy-tips-2017/">Investments for Beginners: 5 Easy Tips to Try in 2018</a> &mdash; Investing doesn't have to be intimating, stressful, and risky just because you're new at it. Learn how to invest your money so that it works for you! [The Fortunate Investor]</p> <p><a href="https://www.listenmoneymatters.com/how-to-retire-decumulation/">How To Retire: What To Do With Your Time And Money</a> &mdash; Work is such a big part of everyday life that it can be difficult to transition to a life without it.&nbsp; [Listen Money Matters]</p> <p><a href="http://www.currentoncurrency.com/6-tips-overcome-vacation-debt/">6 Tips to Overcome Vacation Debt</a> &mdash; Consider buying souvenirs when you first arrive at your destination and be done with spending on knickknacks for the rest of your trip! [Current on Currency]</p> <p><a href="http://yourmoneyyourfreedom.com/7-easy-ways-to-maximize-your-money-this-christmas/">7 Easy Ways To Maximize Money This Christmas</a> &mdash; Yes, you <em>can</em> save money this Christmas&hellip;and maybe even <em>make</em> some money, too!&nbsp; [FreeUp]</p> <h2>Other Essential Reading</h2> <p><a href="https://www.popsugar.com/smart-living/DIY-Citrus-Scented-Kitchen-Cleaning-Products-36750343">3 Essential DIY Cleaners That Will Make Your Kitchen Sparkle</a> &mdash;These all-natural sprays are just as effective as store-bought cleaners at eliminating dirt and grime. [PopSugar Smart Living]</p> <p><a href="https://moneyqanda.com/how-to-start-saving/">How to Get a Month Ahead in Savings Without Much Income</a> &mdash; <em>Do</em> sweat the small stuff. Little changes can lead to gigantic savings in the long term. [Money Q&amp;A]</p> <p><a href="http://moneyminiblog.com/mortgage-home/sell-your-home-quickly/">5 Crucial Steps to Sell Your Home Quickly</a> &mdash; Your property should not only look good, it needs to smell good, too. Make sure you deal with any funky odors before potential buyers show up, especially if you have pets. [Money Mini Blog]</p> <p><a href="https://dyernews.com/3-things-you-should-be-doing-to-promote-your-small-business-online/">3 Things You Should be Doing to Promote Your Small Business Online</a> &mdash; Start experimenting with video if you haven't already! Your video content can help you improve SEO and reach new customers. [Dyer News]</p> <p><a href="https://www.csmonitor.com/Environment/2017/1203/Forest-gumption-How-scientists-are-tapping-everything-from-drones-to-pruning-shears-to-stem-global-warming">Forest gumption: How scientists are tapping everything from drones to pruning shears to stem global warming</a> &mdash; Scientists and researchers around the world are thinking outside the box to help solve global warming. [The Christian Science Monitor]</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/amy-lu">Amy Lu</a> of <a href="http://www.wisebread.com/best-money-tips-how-to-be-a-frugal-parent-during-the-holidays">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-frugal-living-skills-you-should-be-teaching-your-children">7 Frugal Living Skills You Should Be Teaching Your Children</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-essential-money-moves-for-new-parents">7 Essential Money Moves for New Parents</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/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-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-smart-reasons-to-last-minute-holiday-shop">9 Smart Reasons to Last-Minute Holiday Shop</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/9-frugal-winter-activities-to-keep-kids-busy-during-holiday-break">9 Frugal Winter Activities to Keep Kids Busy During Holiday Break</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Frugal Living Family best money tips Holidays parenting Wed, 06 Dec 2017 09:30:06 +0000 Amy Lu 2067209 at http://www.wisebread.com 7 Essential Money Moves for New Parents http://www.wisebread.com/7-essential-money-moves-for-new-parents <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-essential-money-moves-for-new-parents" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/parent_new_baby_625686418.jpg" alt="New parents making money moves" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>As any parent will tell you, having kids can be tough on your wallet. According to the U.S. Department of Agriculture (USDA), the cost of raising a child to the age of 18 works out to around $233,610, give or take, at the moment. That sum of cash covers housing, food, child care, and education, among other necessities. But it doesn&rsquo;t cover the cost of college, which can be tens of thousands of dollars on its own.</p> <p>New parents would be wise to avoid a financial panic and start planning for a financially fruitful future instead. Here are some money moves new parents can make that could make the financial toll parenting takes a lot easier to handle. (See also: <a href="http://www.wisebread.com/can-you-afford-to-have-a-baby?ref=seealso" target="_blank">Can You Afford to Have a Baby?</a>)</p> <h2>1. Start using a monthly budget</h2> <p>Before you have kids, it&rsquo;s easy to justify spending money on fun. If you&rsquo;re meeting your savings goals and keeping up with bills, <em>why not </em>go out with friends, or spend your excess cash traveling to see the world?</p> <p>While there&rsquo;s nothing wrong with living a little, having children gives you an entirely different perspective. New and often unexpected expenses come with being a new parent. The best way to stay on track financially is by starting a monthly budget and sticking to it. Start with how much you&rsquo;re currently spending, and use your best guess for new baby expenses like diapers, clothes, and toys. You may have to revisit the budget every few months as those expenses change. Create a budget that sets limits on spending with the goal of saving more. (See also: <a href="http://www.wisebread.com/15-unexpected-expenses-of-a-new-baby?ref=seealso" target="_blank">15 Unexpected Expenses of a New Baby</a>)</p> <h2>2. Set up an automatic savings plan</h2> <p>Speaking of saving more, parenthood has a way of ruining your big ideas. You might <em>think </em>you&rsquo;re going to take the excess cash in your checking account and move it to savings, but then your kid needs medicine, your nanny share family drops out, or it&rsquo;s time to graduate to a toddler car seat and stroller.</p> <p>The best way to ensure the additional expenses of parenting don&rsquo;t thwart your savings plans is to make all your savings automatic. Set up automatic contributions or transfers to savings as part of your monthly budget, then learn to live on the rest. (See also: <a href="http://www.wisebread.com/24-tips-for-having-a-baby-without-going-broke?ref=seealso" target="_blank">24 Tips for Having a Baby Without Going Broke</a>)</p> <h2>3. Learn to live on less</h2> <p>&ldquo;Learning to live on the rest&rdquo; may not sound like fun, but it&rsquo;s probably your best bet if you want to stretch your income as far as it can go. The more you can go without or cut from your budget, the more cash you&rsquo;ll have to save for the future or spend on planned activities that might enrich your children&rsquo;s lives.</p> <p>&ldquo;A penny saved is a penny earned&rdquo; is never truer than when you have kids. It takes time to earn money, whereas saving money may not take any time at all. If you want to make your dollars and time count as much as possible, it can pay to learn to live on less and be more thoughtful when it comes to spending the money you&rsquo;ve taken time to earn.</p> <h2>4. Build an emergency fund</h2> <p>Having kids often means recovering from one financial &ldquo;emergency&rdquo; after another. Kids get sick. They need to go to the doctor. They might break an arm playing on the playground or crashing their bike into your car.</p> <p>Kids also need braces and money to play on the soccer team. You&rsquo;ll need cash for once-a-year expenses like supplies and school field trips. And let&rsquo;s not forget about all the other emergencies you need to prepare for in life &mdash; the leaking roofs and the cars that need to be replaced.</p> <p>To prevent these expenses from wrecking your savings, or worse, put you into credit card debt, it is essential to start building an emergency fund early &mdash; before you need it. Most experts suggest you have three to six months' worth of expenses saved.</p> <p>Since that will take a while, you should probably start saving in whatever increments you can, as soon as you can. (See also: <a href="http://www.wisebread.com/7-easy-ways-to-build-an-emergency-fund-from-0?ref=seealso" target="_blank">7 Easy Ways to Build an Emergency Fund From $0</a>)</p> <h2>5. Pay off debt</h2> <p>Debt is such a drag, and that&rsquo;s true whether you have kids or not. When you&rsquo;re in debt, you have to plan your entire life around paying money to people you owe.</p> <p>Not only that, but high interest debt can make getting ahead financially an especially tough hill to climb. When you carry a balance every month, you could be paying oodles in interest each month &mdash; that&rsquo;s basically money down the drain.</p> <p>To make your income stretch as far as it can go, pay down debt while you can. Not only will you avoid the costly drain of interest payments, but you&rsquo;ll free up extra money to save for what matters. (See also: <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=seealso" target="_blank">The Fastest Way to Pay Off $10,000 in Credit Card Debt</a>)</p> <h2>6. Start saving for college</h2> <p>According to College Board, the average cost of a four-year degree could be as much as $152,753 in 18 years. That&rsquo;s a wild amount of money to ponder, but it won&rsquo;t be funny if you sit on this data and never act.</p> <p>Opening a college savings account could help you make a dent in your child&rsquo;s future tuition costs, but only if you start savings early. If you set aside even $50 per month for the next 18 years and earn a 6 percent return, you could save up $18,543.39 for school. Boost that amount to $200 per month, however, and you could have $74,173.57 saved.</p> <p>Depending on your state, you may even score tangible tax benefits for setting money aside. In the <a href="https://www.in.gov/tos/iesa/2419.htm" target="_blank">state of Indiana</a>, for example, you get a 20 percent tax credit on the first $5,000 you contribute every year. (See also: <a href="http://www.wisebread.com/the-9-best-state-529-college-savings-plans?ref=seealso" target="_blank">The 9 Best State 529 College Savings Plans</a>)</p> <h2>7. Buy (more) life insurance</h2> <p>A final money move for new parents is buying a life insurance policy &mdash; or even buying more life insurance coverage to supplement the coverage they already have.</p> <p>Before you have kids, you may only need enough life insurance to cover burial costs and your debts. After kids, on the other hand, you have so much more to plan for. You have to buy enough life insurance to replace your income for your child&rsquo;s entire life, for example, and you may even want to buy more coverage to pay for college.</p> <p>You have to think about the prospect of your spouse or partner raising your child alone, and what kind of financial situation you would want to leave them in if you died.</p> <p>Having a child makes issues like life insurance dramatically more important than they were before. You don&rsquo;t just have to think of yourself; you have to think of their future, too.</p> <p>Fortunately, it&rsquo;s easier than ever to get a free quote for life insurance and buy a policy today &mdash; and without ever leaving your home. The sooner you buy, the sooner you can protect your new family if for some reason you&rsquo;re not around.</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-essential-money-moves-for-new-parents&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Essential%2520Money%2520Moves%2520for%2520New%2520Parents.jpg&amp;description=7%20Essential%20Money%20Moves%20for%20New%20Parents"></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%20Essential%20Money%20Moves%20for%20New%20Parents.jpg" alt="7 Essential Money Moves for New Parents" 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/7-essential-money-moves-for-new-parents">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/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money">4 Parenting Mistakes to Avoid When Teaching 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/5-money-rules-thatll-save-you-big-in-babys-first-year">5 Money Rules That&#039;ll Save You Big in Baby&#039;s First 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/10-fun-books-that-will-get-your-kids-excited-about-money">10 Fun Books That Will Get Your Kids Excited About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <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-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/24-tips-for-having-a-baby-without-going-broke">24 Tips for Having a Baby Without Going Broke</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Family budgeting tips having kids money tips new baby new parents parenting parenting tips saving money Mon, 04 Dec 2017 09:30:11 +0000 Holly Johnson 2065325 at http://www.wisebread.com 6 Smart Financial Gifts to Give Your Kids This Year http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/6-smart-financial-gifts-to-give-your-kids-this-year" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mother_and_daughter_with_piggy_bank.jpg" alt="Mother and daughter with piggy bank" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>American poet Maya Angelou said it best: &quot;When you know better, you do better.&quot; The earlier that your kids develop good financial habits, the brighter their financial future will be.</p> <p>With the holidays right around the corner, now is the perfect time to set your sights on one or more of these financial gifts that will help your kids learn about, respect, and appreciate money.</p> <h2>1. Monopoly</h2> <p>Since 1935, this classic board game has entertained millions of people around the world. Turns out that playing rounds with &quot;Monopoly money&quot; can actually help build real life financial skills, such as negotiation, money management, and diversification. Plus, a round of Monopoly is a good way to practice arithmetic and social skills. (See also: <a href="http://www.wisebread.com/holiday-gifts-6-fun-games-that-teach-money-and-finance?ref=seealso" target="_blank">Holiday Gifts: TK Fun Games That Teach Money and Finance</a>)</p> <h2>2. Custodial investment account</h2> <p>Most brokerage firms offer a custodial account that allows children to get a first taste of investing in the stock market under the supervision of a parent or guardian. With as little as $100, you could open a custodial account and let your kid make decisions about what stocks to hold or sell.</p> <p>In 2017, you can contribute up to $14,000 to a custodial account and still avoid gift taxes. In 2018, the annual federal gift exclusion moves up to $15,000. Your kid's custodial account is under your control until your kid legally becomes an adult, which happens somewhere between age 18 and 21, depending on your state's rules.</p> <p>A custodial investment account is a great way to get your child excited about investing and let them learn from firsthand experience how the stock market works. (See also: <a href="http://www.wisebread.com/5-stocks-your-kids-would-love-to-own?ref=seealso" target="_blank">5 Stocks Your Kids Would Love to Own</a>).</p> <h2>3. Custodial Roth IRA</h2> <p>If your kid is already working a summer job or earning income from their own business, consider setting up a custodial Roth IRA for them. In 2017 and 2018, individuals may contribute up to $5,500 to a custodial Roth IRA. Here are a couple of reasons why this is a good idea:</p> <ul> <li> <p>Your child will have the same contribution limit as an adult, making it a real-life lesson in cultivating a good savings habit.</p> </li> <li> <p>Your child can get close to a decade of extra compounding interest for their nest egg.</p> </li> <li> <p>By taking the tax hit now, your child's retirement savings will grow tax-free forever.</p> </li> <li> <p>Your child will have another &quot;sandbox&quot; in which to make real-life decisions with investments.</p> </li> </ul> <p>Just imagine if <em>you </em>knew how life-changing investing in equities could be at such a young age.</p> <p>That alone may be the best financial gift for your kid this holiday season! (See also: <a href="http://www.wisebread.com/10-investing-lessons-you-must-teach-your-kids?ref=seealso" target="_blank">10 Investing Lessons You Must Teach Your Kids</a>)</p> <h2>4. 529 savings plan</h2> <p>The average class of 2016 graduate left school with $37,172 in student loan debt. If you could do something now to help prevent your kid from having to take out such costly student loans, that would certainly be a gift worth giving. The good news is you <em>can</em> do this by starting a 529 college savings plan. Eligible education expenses under a 529 plan go beyond tuition and academic fees and include expenses for room and board, transportation, equipment, and accommodations for individuals with special needs.</p> <p>Contributions to a 529 plan grow tax-free and the money is not taxed when it's withdrawn to pay for college expenses. In addition to federal tax savings, more than 30 states currently offer a full or partial tax deduction or credit for 529 plan contributions. (See also: <a href="http://www.wisebread.com/the-9-best-state-529-college-savings-plans?ref=seealso" target="_blank">The 9 Best State 529 College Savings Plans</a>)</p> <h2>5. Cash</h2> <p>Yup, cash is still king. Regardless of their age, your kid will always love receiving a few bills as a gift. The main reason to gift cash during the holiday season is that it opens the door to have an ongoing conversation with your kids about budgeting. With a cash gift, you'll have plenty of chances to talk about what they're planning to buy, what they actually purchase, and how much money they have left. From there, you can start making it a habit to sit down with your son or daughter to talk about finances on a weekly or Bi-Weekly basis. It's a good time to catch up about other non-related finance topics as well. (See also: <a href="http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget?ref=seealso" target="_blank">How to Help Your Kid Build Their First Budget</a>)</p> <h2>6. Checking account with debit card and checkbook</h2> <p>Of course, this would be a great place for any cash gifts that your son or daughter receives from relatives and friends during the holidays (and throughout the year).</p> <p>While a checking account may not be as exciting as a new Xbox or bike, you can be sure that this gift is the one that your child will be using for the longest time. It's important that your kids start to build experience managing a checking account so they understand how to pay for everyday expenses, build a monthly budget, and safely use debit cards. By covering the ins and outs of how a checking account works when they're young, your kid will have one less thing to stress about as they get a little older or go off to college.</p> <p>No matter what your child's plans are, anyone can benefit from learning how to use a debit card, write checks, access an online account portal, and read a checking account statement.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F6-smart-financial-gifts-to-give-your-kids-this-year&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F6%2520Smart%2520Financial%2520Gifts%2520to%2520Give%2520Your%2520Kids%2520This%2520Year.jpg&amp;description=6%20Smart%20Financial%20Gifts%20to%20Give%20Your%20Kids%20This%20Year"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/6%20Smart%20Financial%20Gifts%20to%20Give%20Your%20Kids%20This%20Year.jpg" alt="6 Smart Financial Gifts to Give Your Kids This Year" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/6-smart-financial-gifts-to-give-your-kids-this-year">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-13"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/teach-your-kids-about-money-with-their-holiday-gift-lists">Teach Your Kids About Money With Their Holiday Gift Lists</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/holiday-gifts-6-fun-games-that-teach-money-and-finance">Holiday Gifts: 6 Fun Games That Teach Money and Finance</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-money-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-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-prepare-your-kids-to-live-on-their-own">How to Prepare Your Kids to Live On Their Own</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family 529 plans budgeting cash checking accounts children Christmas custodial roth ira financial gifts games Holidays investing kids Fri, 01 Dec 2017 09:00:06 +0000 Damian Davila 2064624 at http://www.wisebread.com Holiday Gifts: 6 Fun Games That Teach Money and Finance http://www.wisebread.com/holiday-gifts-6-fun-games-that-teach-money-and-finance <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/holiday-gifts-6-fun-games-that-teach-money-and-finance" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/parents_playing_board_game_with_their_children.jpg" alt="Parents playing board game with their children" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When I was growing up, some of my favorite holiday gifts were the board games my parents gave to me and my sister. Not only did receiving a board game ensure that we would be spending time together as a family, but I also loved how new games could teach me different ways of looking at the world, and managing money in particular.</p> <p>Consider gifting these board games to your kids to get them interested in investing, saving, and spending wisely. (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. Acquire</h2> <p><strong>For 2-6 players, ages 12 and up</strong></p> <p><a href="http://amzn.to/2A1VBXb" target="_blank">Acquire</a> is based on the idea of creating a super city, wherein each player tries to invest strategically in various businesses, including entertainment, food, fashion, marketing, and other major industries. Throughout gameplay, the various &quot;venture capitalists&quot; compete to build the city and try to own the majority shares in the most lucrative businesses. You make money by forming, merging, expanding, and acquiring businesses, and by buying stock at the right time &mdash; which makes this game an excellent introduction to how investing works. Whoever has the most money at the end of the game wins.</p> <h2>2. Allowance</h2> <p><strong>For 2-4 players, ages 5-11</strong></p> <p>As players make their way around the <a href="http://amzn.to/2hW8I5x" target="_blank">Allowance</a> board, they can earn money by doing chores, starting their own businesses, earning interest on their savings accounts, and of course, by collecting their allowance each time they go &quot;home.&quot; On the other hand, players can also spend money at the mall, at garage sales, or simply by losing it out of their pockets. The first player to save up $20 wins the game. Allowance comes with realistic looking play money, and helps teach young children everything from how to make change and count out money to how to save their pennies. (See also: <a href="http://www.wisebread.com/6-fun-games-that-teach-your-kids-about-money?ref=seealso" target="_blank">6 Fun Games That Teach Your Kids About Money</a>)</p> <h2>3. Black Gold</h2> <p><strong>For 2-5 players, ages 13 and up</strong></p> <p>Imagine you are trying to make your fortune in the oil fields of Texas in 1922. That's the basis for the oil prospecting game <a href="http://amzn.to/2hW31Vi" target="_blank">Black Gold</a>, where between two and five prospectors compete by exploring the terrain for oil wells, surveying the possible sites, and building derricks. You can earn money by transporting your oil to one of three companies and earning the right to sell at auction. Game play includes bidding, bluffing, and strategizing &mdash; which can help your kids learn good negotiation skills while they try to glean the most wealth from their oil wells.</p> <h2>4. Pit</h2> <p><strong>For 3-8 players, ages 7 and up</strong></p> <p>This game, which was first introduced all the way back in 1904, helps to recreate the now (mostly) defunct open-outcry trading one used to find on the floor of the New York Stock Exchange. <a href="http://amzn.to/2zuaeDC" target="_blank">Pit</a> is a card game wherein each player attempts to corner the market in a particular commodity. The winner of any particular hand is the first one to collect all of one commodity, and points are awarded based on the value of the cornered commodity. The overall winner is the first player to score 500 points. Not only will this game give you a chance to shout and wave your arms a la Dan Aykroyd and Eddie Murphy in <em>Trading Places</em>, but it will help you to better understand exactly how commodities traders do their jobs &mdash; even if it's mostly handled by computers these days.</p> <h2>5. Stockpile</h2> <p><strong>For 2-5 players, ages 13 and up</strong></p> <p>Helping your kids understand how the stock market works can be an uphill battle, until you break out this board game. With <a href="http://amzn.to/2jiVTyy" target="_blank">Stockpile</a>, each player is a stock market investor. The game helps make it clear that everyone knows a little something about the stock market, but no one knows everything. That means each player receives one piece of insider information, but there are plenty of unknowns facing each investor as well. You must consider multiple factors when buying or selling a stock, just as you would in real-world trading. Whoever has the most money at the end of the game wins, but everyone will certainly learn important investment strategy skills from this game.</p> <h2>6. Tin Goose</h2> <p><strong>For 3-5 players, ages 10 and up</strong></p> <p>In <a href="http://amzn.to/2hL4WYZ" target="_blank">Tin Goose</a>, it's the early days of commercial airlines, and each player is attempting to build a large, profitable airline. You are helped by the fact that planes are becoming safer and more fuel efficient over time. But even as your planes get better, you will also face more and more disastrous potential setbacks such as crashes, worker strikes, and spikes in oil prices. This game will help teach how to balance the emotions of greed and fear while strategizing how to build your business in competition with others.</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%2Fholiday-gifts-6-fun-games-that-teach-money-and-finance&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHoliday%2520Gifts_%25206%2520Fun%2520Games%2520That%2520Teach%2520Money%2520and%2520Finance.jpg&amp;description=Holiday%20Gifts%3A%206%20Fun%20Games%20That%20Teach%20Money%20and%20Finance"></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/Holiday%20Gifts_%206%20Fun%20Games%20That%20Teach%20Money%20and%20Finance.jpg" alt="Holiday Gifts: 6 Fun Games That Teach Money and Finance" 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/holiday-gifts-6-fun-games-that-teach-money-and-finance">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-14"> <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-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-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-frugal-gifts-for-the-person-who-needs-a-nap">9 Frugal Gifts for the Person Who Needs a Nap</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/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-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/17-creative-no-mess-activities-for-kids-stuck-at-home">17 Creative, No-Mess Activities for Kids Stuck at Home</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Entertainment Family Christmas games games for kids gift guide gift ideas holiday gifts holiday shopping money games Thu, 30 Nov 2017 10:00:06 +0000 Emily Guy Birken 2062574 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-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/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-essential-money-moves-for-new-parents">7 Essential Money Moves for New Parents</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/6-fun-games-that-teach-your-kids-about-money">6 Fun Games That Teach Your Kids About Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Family budgeting tips kids kids allowance kids shopping money lessons money lessons for kids toys Tue, 28 Nov 2017 09:30:10 +0000 Carrie Kirby 2062566 at http://www.wisebread.com How to Prepare Your Kids to Live On Their Own http://www.wisebread.com/how-to-prepare-your-kids-to-live-on-their-own <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-prepare-your-kids-to-live-on-their-own" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/happy_young_girl_with_her_mother_making_dough.jpg" alt="Happy young girl with her mother making dough" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Raise your hand if you have a young adult in your life who isn't ready for the &quot;real&quot; world.</p> <p>It's incredibly common for 20-somethings (and even 30-somethings) to be a little more than clueless when it comes to living on their own. Being able to sustain your independence with both your money and lifestyle is a skill that everyone needs to learn, and every parent needs to start teaching while their kids are still young.</p> <p>The good news is, this is very doable. If you're currently trying to mold impressionable youngsters into self-sufficient adults, here's how you can protect them from a very rude awakening when they go it alone.</p> <h2>1. Teach them basic life skills</h2> <p>I'm fortunate to have grown up in a family of blue-collar Americans who relied on their own wits and two bare hands to get by, and they were eager to pass their skills down to their children and grandchildren. Some of those skills took (I make a mean Bundt cake and clean the house with maid-like results), while others are still a work in progress (I call AAA when I have a flat tire; might as well get my money's worth, right?).</p> <p>These basic life skills should be required teaching at home because your kids won't learn them any place else. I'm a huge advocate for integrating this sort of education into the public school curriculum &mdash; because honestly, what teenager needs to know calculus over income tax prep? &mdash; but as it stands, that responsibility falls to you. (See also: <a href="http://www.wisebread.com/7-life-skills-your-kids-wont-learn-in-school?ref=seealso" target="_blank">7 Life Skills Your Kids Won't Learn in School</a>)</p> <p>As such, it's on you to school your offspring on all of life's dirty little jobs, including but not limited to:</p> <ul> <li> <p>Laundry and other household chores.</p> </li> <li> <p>Grocery shopping, meal prep, and cooking for themselves.</p> </li> <li> <p>Integrating coupons and discounts into their everyday purchases.</p> </li> <li> <p>How credit and debit cards work.</p> </li> <li> <p>How interest rates affect loans.</p> </li> <li> <p>The difference between paying in cash versus relying on credit.</p> </li> <li> <p>How to prepare a resume.</p> </li> <li> <p>How to interview for a job (and not look like a slob).</p> </li> <li> <p>How to comprehend basic contracts.</p> </li> <li> <p>How to drive or use public transportation.</p> </li> <li> <p>How to make and stick to a budget.</p> </li> </ul> <h2>2. Manage their money for their first year of employment</h2> <p>Adults spend their money on frivolous things a lot of the time &mdash; so what do you expect kids to do? As soon as they get a job and start bringing home the bacon, they're rushing straight to their favorite stores for new clothes, taking their boyfriend or girlfriend out on a nice date, and loading up on drive-thru junk food.</p> <p>We all did it.</p> <p>You can curb that behavior by sitting your kid down and letting them know that the Bank of Mom and/or Dad will be in charge of their income for the first year of their first job. Offering them this kind of hands-on guidance and advice is a good way to teach teens how to save and spend wisely.</p> <p>Open two accounts in their name &mdash; checking and savings &mdash; and put 40 percent of their paycheck into each of those accounts. Give them the leftover 20 percent to do whatever they'd like. When expenses arise for which you don't feel responsible, like if they receive a speeding ticket or want to go away for the weekend with friends, explain how the money will come from <em>their</em> checking account to pay for it. You may get some resistance at first, especially if they're used to you forking cash over, but they'll thank their lucky stars they know how to manage money when they strike out on their own.</p> <h2>3. Charge them rent to live in your home once they turn 18</h2> <p>Your kids are adults the day they turn 18 &mdash; a fact that your teenager has probably reminded you of a million times since they started high school &mdash; and it's high time you started treating them accordingly. If they want to be grown-ups with no rules and no curfew but still live under your roof, you have every right to ask for help with the bills.</p> <p>You don't have to charge them fair market value, but a couple hundred bucks a month, or even putting them in charge of a particular bill, is reasonable. I'm also a proponent of teens paying their own cellphone bill starting at age 18. They'll certainly learn to be more responsible with their phones when repairs or replacements are coming out of their own pockets.</p> <h2>4. Help them establish good credit and explain the importance of it</h2> <p>I didn't know anything about how credit worked before I got my first credit card. Given that naiveté, I went on a shopping spree as soon as the card was in my hands, and I didn't/couldn't pay the bill until seven years later. That's what can happen when a clueless 18-year-old gets their hands on a shiny piece of plastic. And in my case, it royally screwed up my credit for a long time.</p> <p>Help your kids avoid my mistake by talking to them about how credit works and the importance of being conscious about building and maintaining a good credit score. Educate them on how good credit affects major purchases like cars and houses and even renting apartments. Their livelihood depends on it &mdash; unless, of course, you want them to live with you forever. (See also: <a href="http://www.wisebread.com/4-questions-to-answer-before-giving-your-kid-a-credit-card?ref=seealso" target="_blank">4 Questions to Answer Before Giving Your Kid a Credit Card</a>)</p> <h2>5. Provide less for them once they start driving</h2> <p>As your child's parent or guardian, it's your legal responsibility to provide for them until they're able to provide for themselves. But you can start to cut back on the handouts as soon as they're responsible enough to drive.</p> <p>Certainly you still need to feed, clothe, and provide housing for your child, but they can start doing more for themselves, too. They can run to the store for their own hair product when they run out, open their own wallets for the video games they covet, and even make their own dentist and doctor appointments. Think of it as an education in independence with training wheels. You're still around to guide them through the processes, but they should start accepting tasks as their own.</p> <h2>6. Teach them time management skills</h2> <p>My friends make fun of me for how much I micromanage my own time. Anything I have to do goes straight into my calendar, and I keep a daily to-do list at work while creating side lists on an as-needed basis. As a result, my life runs much smoother.</p> <p>Considering your kids &mdash; especially high-schoolers &mdash; have busy schedules (for which they likely rely on you to keep on track), it will eventually benefit them for you to teach good time-management skills. Teach them how to add to-dos to their smartphone calendars as soon as they receive them, set up alerts for reminders, and help them form a habit of checking their schedule on a daily basis to keep their lives running smoothly.</p> <h2>7. Step back when they have a problem until your help is absolutely required</h2> <p>A large part of maturing to adulthood is learning how to solve problems on your own, and that means you need to let your children make mistakes from time to time &mdash; even when they come to you looking for the easy way out.</p> <p>&quot;There is a tendency for parents to step in too quickly when their children face a problem,&quot; says Jim Seibold, a marriage and family therapist in Arlington, Texas. &quot;Instead of telling them what to do and how they need to fix it, push them to think through options. Ask them what they think they should do. We can then teach by asking them to think about the consequences of their ideas. For instance: 'That sounds interesting, what do you think would happen if you tried that?'&quot;</p> <p>Just as importantly, this approach expresses confidence in your kids. It lets them know that you believe in their ability to think and consider choices, which will be helpful when it's time for them to move out of the house. That alone can be worth its weight in gold for worrisome moms and dads. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>8. Stop giving them everything they want or think they need</h2> <p>I wasn't deprived of anything growing up, but I wasn't handed everything I wanted, either. Around age 14, my parents encouraged me to start working part time for the money I needed to go out with my friends or buy the things that teenagers want to buy. I wasn't over the moon about it at the time, but I also didn't hate it &mdash; I made new friends, had a sense of freedom, and did what I pleased with my money. In hindsight, it helped lay the foundation of my entrepreneurial spirit, which has gotten me everywhere I've wanted to be in life thus far.</p> <p>Seibold instituted a similar practice in his family, asking his kids to purchase their own electronics, cellphones, and any other luxury they wanted.</p> <p>&quot;They learned to save money they received for birthdays, Christmas, etc., so they could afford these purchases,&quot; he explains. &quot;As parents, we still pay for a lot, but it is important for kids to understand what it means to put off immediate gratification in order to save for something they really want. It may have been 'easy' money since it was gifted, but they still had to learn to save.&quot;</p> <h2>9. Establish good nutritional habits from the get-go</h2> <p>Most of us enjoy junk food every now and then (sometimes a little more often than that &mdash; guilty!), but nutrition and cooking skills all begin with you as a parent. It's your job to raise your children on healthy meals and teach them how to make smart food choices so they're eating a balanced diet. Does that mean you should never order pizza or pull into a drive-thru? No, of course not. But you should be conscious of limiting those instances to help your child establish a healthy relationship with food so they're best prepared to feed themselves responsibly (and cook instead of relying on takeout).</p> <h2>10. Praise your children, but don't go overboard</h2> <p>Encourage your children to express themselves, to try their best at whatever they attempt, and to accept failures gracefully. The truth is, somebody has to be the loser; that's just how life goes. The quicker they learn that they can't always come out on top, the easier life will be. They need both the confidence to reach for their aspirations and the grit to learn and move forward if things don't go their way.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fhow-to-prepare-your-kids-to-live-on-their-own&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520to%2520Prepare%2520Your%2520Kids%2520to%2520Live%2520On%2520Their%2520Own.jpg&amp;description=How%20to%20Prepare%20Your%20Kids%20to%20Live%20On%20Their%20Own"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/How%20to%20Prepare%20Your%20Kids%20to%20Live%20On%20Their%20Own.jpg" alt="How to Prepare Your Kids to Live On Their Own" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/mikey-rox">Mikey Rox</a> of <a href="http://www.wisebread.com/how-to-prepare-your-kids-to-live-on-their-own">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-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/7-life-skills-your-kids-wont-learn-in-school">7 Life Skills Your Kids Won&#039;t Learn in School</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-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/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-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/7-frugal-living-skills-you-should-be-teaching-your-children">7 Frugal Living Skills You Should Be Teaching Your Children</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Family Lifestyle basics budgeting children discipline first jobs kids life lessons life skills parenting Mon, 27 Nov 2017 09:00:07 +0000 Mikey Rox 2057738 at http://www.wisebread.com 7 Money Conversations Parents Should Have With Their Adult Kids http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-money-conversations-parents-should-have-with-their-adult-kids" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/smiling_mother_with_young_daughter.jpg" alt="Smiling mother with young daughter" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It's hard for many of us to talk about money. Money conversations can be stressful and awkward, and you may be tempted to just stay mum on the subject. However, it's vital that you pass financial wisdom on to your kids, even when they're adults. It's important to teach them about money growing up, but there are some things better discussed when they are older. Here are the money conversations you should be having with your adult children.</p> <h2>1. Financial boundaries</h2> <p>If you are supporting your adult children and you'd like to stop, or if you want to avoid it altogether, it's important to set up some financial boundaries. If you don't want to support them financially at all, tell them that up front and stick to it. That way, you won't end up paying for things and resenting it.</p> <p>If your adult kids are relying on you for part or all of their financial support, sit down together and form a plan. Cutting them off entirely probably won't work for either of you, but you can start slow; back off on payments over the course of six months to a year, and set up concrete steps along the way. For instance, you may decide to stop giving them &quot;fun&quot; money right away, but be willing to cover their cellphone plan for six more months.</p> <p>Make sure you go about having this conversation compassionately. Tell your child that you love them and that you want this for them as well as for you. Offer to help them along the way, to be available to answer questions or aid in budgeting, and let them know that you will always be there for them in other ways. (See also: <a href="http://www.wisebread.com/are-you-ruining-your-retirement-by-spoiling-your-kids?ref=seealso" target="_blank">Are You Ruining Your Retirement by Spoiling Your Kids?</a>)</p> <h2>2. Financial values</h2> <p>Have a conversation with your adult child about what they want in life and how much those things will realistically cost. This is the time to talk about the financials behind car ownership, homeownership, traveling the world, and more. Make sure they have an understanding of how much money they'll need to have in order to afford the lifestyle they want, and how much they need to make in a week, a month, and a year to achieve that.</p> <p>Talk to them, also, about what is really important in life. Tell them that fancy cars, big houses, and lavish vacations aren't the keys to happiness. Ask them to think about what they would pursue if they were dying or what they would miss most if they suffered a serious injury. This can help them figure out what is important to them and what they may not be willing to trade their time and money for.</p> <h2>3. What it means to live within your means</h2> <p>Your adult kids need to understand the importance of spending less than they earn. Show them how to calculate this so they can determine for themselves when to spend their money and when it would be better to save or invest it. Your kids need to figure out how to sacrifice spending on superfluous things in order to live a financially secure life.</p> <h2>4. How to make a budget</h2> <p>Along the same lines, your adult children need to know how to make a budget. You can actually begin teaching this in childhood by giving your kid a weekly allowance and helping them break down how they want to spend their money. Even if you wait until they're older, though, you need to sit down with them and make sure your kids understand what they <em>need</em> to spend money on, what they <em>want</em> to spend money on, and how to allocate those dollars accordingly. (See also: <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=seealso" target="_blank">Build a First Budget in 5 Easy Steps</a>)</p> <h2>5. The benefits and dangers of loans and credit cards</h2> <p>In a culture where credit is readily available, your kids need to know how to evaluate different credit opportunities based on benefits and drawbacks, as well as how to wisely use credit. As soon as they are old enough to obtain financing of their own, you need to talk with your kids about credit cards, educational loans, personal loans, and home loans.</p> <p>It will help to tell stories from your own life. Whether you've made financial mistakes or have been wise with your money, walking your kids through how you made your financial decisions and how they ultimately affected you will make the principles real, rather than keep them so abstract. (See also: <a href="http://www.wisebread.com/the-financial-basics-every-new-grad-should-know?ref=seealso" target="_blank">Financial Basics Every New Grad Should Know</a>)</p> <h2>6. Saving for retirement</h2> <p>It can be hard for people in their late teens and 20s to think about saving for retirement, because it all feels so far away. But it's critical you talk with your adult children about how much they may need for retirement, and walk through some compound interest calculations with them so they see the benefit of saving early. Make sure they understand the basics of an IRA and 401(k), as well as what it means to be fully vested and take advantage of an employer match. (See also: <a href="http://www.wisebread.com/this-is-the-basic-intro-to-having-a-retirement-fund-that-everyone-needs-to-read?ref=seealso" target="_blank">Basic Intro to Retirement Funds</a>)</p> <h2>7. Your financial plan</h2> <p>As your kids get older, they also need to know about <em>your</em> financial plan, before they find themselves trying to figure it out without you. This can be an especially difficult conversation to have, because on top of talking about money, you're also talking about serious injury, illness, or death.</p> <p>Still, it's important for your kids to know what types of insurance you have, because knowing whether you have long-term care coverage, for instance, may help them make better decisions later on. Talk to them, too, about how you plan to divide up your estate. This can keep conflicts to a minimum after you are gone, so they can grieve instead of fight. (See also: <a href="http://www.wisebread.com/the-fair-way-to-split-up-your-familys-estate?ref=seealso" target="_blank">The Fair Way to Split Up Your Family's Estate</a>)</p> <p>If one of your adult children is the executor of your will, make sure they understand that responsibility and that they have all the relevant information. They should have access to the location of your accounts, the account numbers, and any identification information, as well as contact information for your lawyer. You can write all of this out for them so they can simply file it away until they need it.</p> <p>Talking about money can be hard, but it's also important. Speaking with your adult children about these topics will ensure they have a better chance at a financially healthy life.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F7-money-conversations-parents-should-have-with-their-adult-kids&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F7%2520Money%2520Conversations%2520Parents%2520Should%2520Have%2520With%2520Their%2520Adult%2520Kids.jpg&amp;description=7%20Money%20Conversations%20Parents%20Should%20Have%20With%20Their%20Adult%20Kids"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/7%20Money%20Conversations%20Parents%20Should%20Have%20With%20Their%20Adult%20Kids.jpg" alt="7 Money Conversations Parents Should Have With Their Adult Kids" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/sarah-winfrey">Sarah Winfrey</a> of <a href="http://www.wisebread.com/7-money-conversations-parents-should-have-with-their-adult-kids">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-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/dont-start-a-family-before-reaching-these-5-money-goals">Don&#039;t Start a Family Before Reaching These 5 Money Goals</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/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/reach-your-money-goals-faster-with-a-simple-naming-trick">Reach Your Money Goals Faster With a Simple Naming Trick</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-financial-resolutions-you-can-conquer-before-new-years">10 Financial Resolutions You Can Conquer Before New Year&#039;s</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-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family adult children boundaries budgeting credit kids loans money conversations money matters retirement saving money Wed, 22 Nov 2017 10:00:07 +0000 Sarah Winfrey 2056811 at http://www.wisebread.com 5 Affordable Vacations to Please Every Age Group http://www.wisebread.com/5-affordable-vacations-to-please-every-age-group <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-affordable-vacations-to-please-every-age-group" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/black_family_camping_514317988.jpg" alt="Family on affordable vacation" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Vacations offer a break from the daily grind while giving us time and space to connect with the people we love. Sometimes that means kids, grandparents, and everyone in between. A trip that includes family members or friends of all ages can be a great bonding experience. But you'll need to keep a few things in mind when planning where to go and what to do.</p> <p>For starters, vacationing with any type of group (friends, family, or work colleagues) can present budgeting challenges. While one person's budget may be nearly unlimited, another's might be fairly tight. When you start perusing lodging, dining, and activity options, you'll need to keep everyone's budgets in mind.</p> <p>With large age differences in your group, chances are also good that not everyone will always agree on activities. Grandma might love spending her days lazing on the beach, while the younger ones might yearn for sports. Some types of travel make it easier to satisfy everyone's desires. Before you pick your next destination for a multigenerational getaway, consider some of these easy, affordable options. (See also: <a href="http://www.wisebread.com/how-to-save-money-on-travel-with-an-awesome-group-vacation?ref=seealso" target="_blank">How to Save Money on Travel With an Awesome Group Vacation</a>)</p> <h2>1. Cruises</h2> <p>Cruises offer a somewhat affordable way to fashion a group trip with everyone's tastes in mind. You can opt for a cruise to the Caribbean, the Mediterranean, or Alaska, just to name a few destinations. The best part is, the majority of cruises offer onboard entertainment to please everyone, including nightly shows, bingo and casinos, and pools with waterslides. (See also: <a href="http://www.wisebread.com/best-credit-cards-for-cruises?ref=seealso" target="_blank">Best Credit Cards for Cruises</a>)</p> <p>Accommodating different sized pocketbooks is simplified, too, because everyone gets (mostly) the same thing for a single all-inclusive price. Since food and nonalcoholic beverages are included onboard, you won't have to worry about different budget constraints. And if someone wants to spend on pricey excursions, they can do so without getting everyone else involved.</p> <p>It's also worth noting that some cruise lines offer family cabins that make bringing extra people along a breeze. With MSC Cruises, for example, you can book a &quot;super family&quot; suite that sleeps up to six. Even better, kids ages 11 and under cruise for free on many itineraries, including most in the Caribbean. (See also: <a href="http://www.wisebread.com/5-most-affordable-cruise-lines-for-families?ref=seealso" target="_blank">Most Affordable Cruise Lines for Families</a>)</p> <h2>2. All-inclusive resorts</h2> <p>All-inclusive resorts offer yet another one-stop-shop for families who want to vacation together without haggling over bills. With an all-inclusive resort, all of your food, drinks (including alcohol), and entertainment are included for a single price. That means everyone in your party can drink and dine to their heart's content without worrying about their budget. (See also: <a href="http://www.wisebread.com/family-friendly-hotel-and-resort-chains-where-kids-stay-free?ref=seealso" target="_blank">Family-Friendly Hotel and Resort Chains Where Kids Stay Free</a>)</p> <p>Keep in mind, however, that all-inclusive pricing runs the gamut from budget to luxury. You'll need to gauge everyone's spending limit before you pick a resort, or you risk not everyone being able to afford it. (See also: <a href="http://www.wisebread.com/11-ways-to-get-the-most-value-from-your-all-inclusive-vacation?ref=seealso" target="_blank">11 Ways to Get the Most Value From Your All-Inclusive Vacation</a>)</p> <p>It's also worth noting that some all-inclusive resorts are better for large groups since they go beyond the basic dual occupancy room and offer lodging such as multiroom villas or adjoining rooms. Generations Riviera Maya, for example, offers deluxe two-bedroom and three-bedroom suites big enough to hold six adults and six kids.</p> <h2>3. Rent a large apartment or condo</h2> <p>Vacation property rentals aren't just for parents who don't want to room with their kids. They also work well for larger groups and multigenerational families who need some extra space. With <a href="http://www.wisebread.com/10-vacation-rental-alternatives-to-airbnb?ref=internal" target="_blank">short-term rental sites</a> like Airbnb, VRBO, and HomeAway, you can rent a condo or a home of nearly any size and in any destination around the globe, and often for less than you'd pay for a hotel.</p> <p>Let's say you're taking your spouse, your two children, and your parents to Disney World in Orlando for a week. You could book separate hotel rooms for $100+ per night each, or you could pay about that amount for a multi-bedroom private home. For example, you can find plenty of three-bedroom condos near Disney World for as little as $99 per night through VRBO.</p> <p>With your own kitchen, you can also save a bundle by preparing your own meals at &quot;home.&quot;</p> <h2>4. Train travel</h2> <p>Who said train travel was dead? These days, you can book all kinds of family trips around the country through Amtrak.</p> <p>While train travel might sound stuffy and uncomfortable, a renewed interest in this form of travel has brought about new amenities and perks for families. For starters, most overnight trains feature dining cars that serve three meals per day. You can also reserve rooms that sleep up to four.</p> <p>There are a ton of options available to suit nearly any travel style or goal. For example, Amtrak offers vacation packages for destinations like the Grand Canyon, Glacier National Park, and Niagara Falls, as well as popular cities such as New York and San Francisco.</p> <p>Prices are fairly affordable, too. For example, you can book a six-day Grand Canyon getaway with round-trip train travel from Chicago, three nights in a hotel, two meals, and a train tour of the canyon starting at $1,009 per person. (See also: <a href="http://www.wisebread.com/7-affordable-family-getaways-when-you-dont-have-a-vacation-fund?ref=seealso" target="_blank">7 Affordable Family Getaways When You Don't Have a Vacation Fund</a>)</p> <h2>5. Family campgrounds</h2> <p>Another no-nonsense family vacation concept is one that's been around forever: camping. Depending on where you live, it may be possible to find a campground that accommodates your family group, either separately in tents or in cabins or campers. (See also: <a href="http://www.wisebread.com/the-easiest-ways-to-save-on-your-next-rv-camping-trip?ref=seealso" target="_blank">Easy Ways to Save on Your Next RV Camping Trip</a>)</p> <p>The best part about camping in groups is that you can all prepare your own separate tents and sleeping arrangements, then gather together for games or meals. If you need some extra space, you can even book your own camping spot away from the group.</p> <p>Meal prep is also easy when you're traveling with a group. Different people can prepare their own meals to bring along, or you can pitch in for group meals by having everyone bring a dish or two to share. (See also: <a href="http://www.wisebread.com/camping-for-a-week-is-only-160-at-these-national-parks?ref=seealso" target="_blank">Camping for a Week Is Only $160 at These National Parks</a>)</p> <p>While camping is inherently frugal, the price you'll pay to secure your spot can vary dramatically across the country. Before you choose a campground for a group trip, make sure to shop around for rates and compare amenities and &quot;extras&quot; like pools and water parks. Some camping spots are chock full of activities like mini-golf, swimming, fishing, and water sports, but others focus on maintaining their connection to nature. The best campground for your family trip is one that's tranquil enough for nature-lovers but busy enough to keep everyone happy.</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-affordable-vacations-to-please-every-age-group&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%2520Affordable%2520Vacations%2520to%2520Please%2520Every%2520Age%2520Group.jpg&amp;description=5%20Affordable%20Vacations%20to%20Please%20Every%20Age%20Group"></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%20Affordable%20Vacations%20to%20Please%20Every%20Age%20Group.jpg" alt="5 Affordable Vacations to Please Every Age Group" 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/5-affordable-vacations-to-please-every-age-group">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/24-train-hacks-from-an-amtrak-veteran">24 Train Hacks From an Amtrak Veteran</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-to-do-about-a-terrible-airbnb-stay">What to Do About a Terrible Airbnb Stay</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-affordable-alternatives-to-pet-boarding">5 Affordable Alternatives to Pet Boarding</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/13-things-i-learned-from-renting-out-my-home-on-airbnb">13 Things I Learned From Renting Out My Home on Airbnb</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/best-credit-cards-for-cruises">Best Credit Cards for Cruises</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Family Travel affordable vacations AirBnb camping cruises family vacations hotel and resort train travel vacation ideas Fri, 17 Nov 2017 09:30:11 +0000 Holly Johnson 2017522 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-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-the-holidays-to-teach-kids-about-money">How to Use the Holidays to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/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/5-stocks-your-kids-would-love-to-own">5 Stocks Your Kids Would Love to Own</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/4-top-money-lessons-to-learn-from-ruth-soukups-unstuffed">4 Top Money Lessons to Learn From Ruth Soukup&#039;s &quot;Unstuffed&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 Manage a Family Member's Finances Long Distance http://www.wisebread.com/how-to-manage-a-family-members-finances-long-distance <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-manage-a-family-members-finances-long-distance" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/social_worker_is_visiting_a_senior_woman_1.jpg" alt="Social worker is visiting a senior woman" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When I lived in Chicago, an elderly relative who lived nearby named me as her financial power of attorney. By the time she needed my help, I had moved to California. But I didn't have to pass the responsibility on to her second choice. I was able to help my loved one from across the country with only a few obstacles.</p> <p>With online banking, a change of address form, e-sign software, a telephone, and the occasional help of a local notary or banker, you should be able to do everything needed from a distance to keep an ill or elderly person's financial life rolling. (See also: <a href="http://www.wisebread.com/6-things-youll-encounter-when-taking-over-a-loved-ones-finances?ref=seealso" target="_blank">6 Things You'll Encounter When Taking Over a Loved One's Finances</a>)</p> <p>Here are some of the things that helped.</p> <h2>Advanced preparation</h2> <p>In my case, the relative had named me both financial power of attorney in case she became incapacitated, and as successor trustee for her revocable living trust. (A revocable living trust is an estate planning tool that people can set up to make this transfer of responsibility seamless both in incapacity or after death.) These two provisions were extremely helpful, when the time came, in allowing me to access and manage her accounts.</p> <p>Another thing you could encourage a relative to do to get their financial life in order would be to gather any stock certificates they own and transfer them to a brokerage firm, preferably one that offers online access. And if they have records of the date they purchased investments, they should show you where they keep those records or send you copies. If you have to sell the investments on their behalf, you will need this information to establish the cost basis.</p> <h2>An ally that lives close to the relative</h2> <p>Although I lived far away, my parents lived in the same town as our relative. Because of this, they were the ones who physically went through our relative's papers, with her permission, when she needed to move into an assisted living home. My parents provided me with all her paperwork so I could find out what accounts she had and what bills were coming in. Their status as locals also helped them gather recommendations for an estate sale company to dispose of possessions she'd no longer need and a real estate agent to sell her home.</p> <h2>An open relationship with the relative before they become incapacitated</h2> <p>At first, I wasn't acting on behalf of my relative in an official capacity, but just helping her out. For instance, when a CD matured, I would arrange for her banker to call her at her assisted living home to get her verbal permission to roll it over or buy a different CD. I helped her set up online accounts for her banks, and then together we used the bill pay function to get her phone bill and rent set up on autopay so she wouldn't have to write checks anymore. This period allowed me to ask her questions and make sure I knew about all her investment accounts, her assets, and how she liked to manage them.</p> <h2>If you have to take over, an in-person visit helps get things started</h2> <p>When she did become incapacitated, I was able to visit the town where she lived and go to her local banks in person to show the bankers her trust naming me as successor trustee, the power of attorney, and my own identification. The banks then put my name on her accounts, so from that point on, I could call them with questions or move her money as needed without her permission. Also, an attorney informed me that as her trustee, I could reimburse myself for my travel expenses from her account when I had to do business on her behalf.</p> <p>One great thing about visiting in person at this stage is that the local bankers gave me their cards, and henceforth if I ever had a problem, I could call them directly instead of going through the phone tree. They remembered me, and some of them even remembered my relative, which I think improved the service I got.</p> <p>Talking to hometown bankers in person also helped me understand the process better. When I needed to get my name on her brokerage accounts without local offices, I had a better idea of how to make it happen. When you can't go to the financial institution in person, you may have to go to a local bank to get a stamp called a medallion on an application to change the account ownership. This is like visiting a notary, in that the medallion holder is indicating that they checked your identification and you are who you say you are. However, a notary can't give you a medallion stamp &mdash; it has to come from a medallion holder. Call any local bank to see if they have one who can help you.</p> <h2>Stay in communication with caregivers</h2> <p>It's easy to put bills on autopay, but it's also important to verify that purchases you make on your relative's behalf are really reaching them and are needed. For example, I set up a standing order on Amazon for supplies my relative needed at assisted living. But sometimes when conditions changed, no one would tell me, and I'd end up wasting money on a product she hadn't used in months. In retrospect, I would have kept in closer communication with staff at her assisted living facility to keep abreast of her product needs.</p> <h2>Work with real estate agents and other professionals who use online documents</h2> <p>It's certainly possible to sell property from across the country by signing paper documents and faxing them, but it's a lot easier if the agent you work with simply sends you a link that you can e-sign on your computer.</p> <h2>Keep an eye on statements, especially if your relative still has a checkbook</h2> <p>For awhile after I took over her finances, my loved one still wrote the occasional check, usually to her church. Although I asked her to let me know when she wrote one, she always forgot. Knowing this, I made sure to keep a buffer of cash in her checking account to prevent overdrafts. If your loved one's check writing habits change suddenly, or you're worried they could be taken advantage of, it's probably time to get the checkbook out of their hands. (See also: <a href="http://www.wisebread.com/how-to-protect-elderly-loved-ones-from-financial-scams?ref=seealso" target="_blank">How to Protect Elderly Loved Ones From Financial Scams</a>)</p> <h2>Check your relative's credit report regularly</h2> <p>This is something you should do when you first start handling a loved one's finances, and periodically after that, especially if you live far away and wouldn't know if someone shady has been calling or visiting your relative. If you have been named power of attorney, you can request the credit report by writing to a credit bureau and including a copy of the power of attorney.</p> <h2>Take care when sharing account information among family members</h2> <p>In a lot of families, more than one person might share the responsibility for handling a loved one's finances. In my case, my parents received her mail and deposited checks at her local banks until I set up all her accounts as direct deposit.</p> <p>Because of this shared responsibility, we sometimes had to share account numbers or her Social Security number with one another. We made sure not to transmit this information in an insecure way, such as email, but instead would call one another to read an account number over the phone.</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-manage-a-family-members-finances-long-distance&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FHow%2520to%2520Manage%2520a%2520Family%2520Member%2527s%2520Finances%2520Long%2520Distance.jpg&amp;description=How%20to%20Manage%20a%20Family%20Member's%20Finances%20Long%20Distance"></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%20Manage%20a%20Family%20Member%27s%20Finances%20Long%20Distance.jpg" alt="How to Manage a Family Member's Finances Long Distance" 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/how-to-manage-a-family-members-finances-long-distance">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/a-simple-guide-to-planning-for-a-loved-ones-long-term-care">A Simple Guide to Planning For a Loved One&#039;s Long-Term Care</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-ways-to-ease-your-parents-into-assisted-living">6 Ways to Ease Your Parents Into Assisted Living</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-protect-elderly-loved-ones-from-financial-scams">How to Protect Elderly Loved Ones From Financial Scams</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/ow-do-you-deal-with-family-members-who-are-bad-at-managing-money">How Do You Deal With Family Members Who Are Bad At Managing 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/12-questions-to-ask-when-choosing-an-assisted-living-facility">12 Questions to Ask When Choosing an Assisted Living Facility</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family assisted living caregivers credit reports elderly long distance money management nursing homes out of town power of attorney relatives revocable living trust Wed, 08 Nov 2017 08:30:18 +0000 Carrie Kirby 2048696 at http://www.wisebread.com 9 End-of-Life Cost Savings Your Survivors Will Thank You For http://www.wisebread.com/9-end-of-life-cost-savings-your-survivors-will-thank-you-for <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-end-of-life-cost-savings-your-survivors-will-thank-you-for" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/mom_is_the_best.jpg" alt="Mom is the best" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>I recently had the honor of helping an elderly family member during her final years and carrying out her wishes after she passed on. My relative was a savvy planner &mdash; she had worked for years as an executive secretary, one of the most responsible jobs available to women of her generation. It came as no surprise that she had carefully planned for some of her end-of-life expenses.</p> <p>After handling the financial side of my loved one's final years, I made the following decisions to make things easier &mdash; and more affordable &mdash; for those who must someday do the same for me.</p> <h2>1. Make an estate plan</h2> <p>If I learned one thing from handling my relative's estate, it was this: A revocable trust will save your executor time and money. A revocable trust is a legal entity to which you can transfer all or some of your property, such as investment and bank accounts or real estate. When you first establish the trust, you are the trustee; meaning you control the assets in the trust, and you also name a successor trustee who would take control of the trust if you become incapacitated or die. You can also name beneficiaries in your trust, just like a will, to receive the remaining assets after your death.</p> <p>The beauty of a trust is that many assets do not have to go through probate once you die; in contrast, many assets only listed in a will do still have to go through probate. Because my relative had set up a revocable trust, within months of her death, her heirs had deposited their checks, and the whole process was wrapped up with very little legal expense. If she hadn't set up the trust, I would likely still be working through the probate process and running up attorney fees.</p> <p>Your estate plan can also include life insurance and a will to cover any assets you didn't transfer to the trust, such as personal property or your car. (See also: <a href="http://www.wisebread.com/the-fair-way-to-split-up-your-familys-estate?ref=seealso" target="_blank">The Fair Way to Split Up Your Family's Estate</a>)</p> <h2>2. Consider long-term care insurance while you are still young enough to get it</h2> <p>When my loved one was no longer able to live independently at home, I was naive enough to think that Medicare would pay for her to live in an assisted living facility or a nursing home. Not true! <em>Medicaid</em> pays for many seniors' nursing home care, but only once they've depleted most of their own assets and income. Each state has strict rules that generally prevent seniors from giving their money away in order to qualify for Medicaid support.</p> <p>What this means is that if you need to spend your final months or years in a home, and you didn't buy long-term care insurance, you will pay for it out of pocket, possibly spending everything you hoped to leave to your heirs.</p> <p>It's a tricky financial decision, because long-term care insurance is expensive; you'll pay $1,000 a month or more (potentially much more) for a policy that will cover the high expenses of nursing home care. And of course, you could pay insurance premiums for years and never spend a day in a nursing home.</p> <p>The American Association for Long-Term Care Insurance pinpoints the mid-50s as the best age to buy this product. That's for two reasons: One, premiums go up based on age, and in the 60s they start going up 6 to 8 percent per year. Two, you can lock in a discount for good health when you first apply, and you are more likely to experience age-related declines in health after your 50s. (See also: <a href="http://www.wisebread.com/is-long-term-care-insurance-worth-it?ref=seealso" target="_blank">Is Long Term Care Insurance Worth It?</a>)</p> <h2>3. Prepay funeral expenses</h2> <p>It sounds downright eerie to sit down in an undertaker's office and plan your own funeral. But it's a kind thing to do for your next of kin. One reason to pay for a burial plot or urn storage and service now is that this spends down money that might otherwise be paid to a nursing home. If you're in a home for years before you pass, there might not be any money left for your funeral, leaving your heirs in the position of having to pay for it themselves.</p> <p>The other nice thing about prepaying these expenses is that, if you're a no-nonsense frugal person, you can buy your casket at Costco or arrange to rent one for your viewing and save your heirs from feeling guilted or upsold into paying for a more lavish send-off than you would have wanted.</p> <p>By planning when you are of sound mind and body, you also give yourself the luxury of making price comparisons and shopping wisely; something your heirs may not be emotionally ready for or have the time to do once you're gone.</p> <h2>4. Make charitable gifts while you're still alive</h2> <p>Especially if you have a robust income in your later years, don't make your favorite charities wait until you're gone to receive the support you'd like to give them. You can cut the taxes you owe on any income you receive by making charitable gifts each year.</p> <p>This move can also save your executor a little time and money. When my loved one passed, her attorney wrote letters to all the charities she wanted to leave money to, and eventually I had to write the checks. It wasn't a big deal, but it's one more little thing you could do yourself to spare your heirs the trouble. If your estate is large enough that your heirs might have to pay estate tax, giving money away in your lifetime could make a big difference. (See also: <a href="http://www.wisebread.com/5-ways-giving-to-charity-is-good-for-you?ref=seealso" target="_blank">5 Ways Giving to Charity Is Good for You</a>)</p> <h2>5. Consider passing wealth to the next generation during your lifetime</h2> <p>Only the heirs of very large estates &mdash; currently over $5.49 million &mdash; will need to pay estate tax. But if this is your situation, you could save your heirs the tax by making regular gifts of up to $14,000 per person, each year.</p> <h2>6. Make your will very clear</h2> <p>First of all, <em>leave a will</em>. If you don't have time to work with an attorney to transfer your assets to a trust, which does take time, for now at least write that will so that your heirs have something to go on if you die unexpectedly. If you don't leave a will, your estate will be settled by the court, a much more expensive and time-consuming process for your heirs.</p> <p>Make sure that your heirs have the final and correct versions of all documents and that there are no older wills floating around. This could save endless legal fees, especially if you have written someone out of your will. Don't let any relatives or acquaintances expect an inheritance they're not getting. People who expected money in a will but didn't get it could sue your heirs, making their lives miserable and wasting the inheritance on legal fees. (See also: <a href="http://www.wisebread.com/what-you-need-to-know-about-writing-a-will?ref=seealso" target="_blank">What You Need to Know About Writing a Will</a>)</p> <h2>7. Make provisions for valuable property</h2> <p>Have you ever heard stories of homes sold with cash or jewelry hidden in the walls or buried in the backyard? It has happened to families I know, when elders hid items of value and forgot where they were hidden.</p> <p>Even if valuables aren't literally hidden in the walls, they may be lost in the shuffle. In many an estate, sorting through a lifetime's worth of possessions is a huge burden on the heirs. Your heirs may simply turn your home over to an estate sale service and let them deal with it. If that happens, valuable items might get sold for less than they are worth. There is also the risk of hiring an unscrupulous estate sale planner who sells valuable items without giving the family a fair cut. Valuable keepsakes could even be thrown away along with old paperwork and used clothing.</p> <p>If you have jewelry or other items of high value, it would be a wonderful idea to gift them to family members while you are still alive, or sell them to a reputable dealer if that is your wish. If not, keep your belongings organized and labeled, and let loved ones know where any valuables are kept.</p> <h2>8. Sell your home if you're no longer living in it</h2> <p>If you have moved to a senior community or assisted living facility, have relatives assist you in selling your home as soon as possible. This will save you &mdash; and later your heirs &mdash; the expense of keeping up the home while no one is living in it.</p> <p>After your death, when the heirs are busy with your funeral and settling the rest of the estate, they may not have time to sell the home for months. In the meanwhile, costs can really add up: insurance, heat, electricity, lawn service, snow removal, maintenance. And if something happens to your empty home such as pipes bursting or squatters moving in, it could dissipate the value of this asset you worked so hard to acquire.</p> <h2>9. Spend it yourself</h2> <p>If all this advice bums you out, here's an antidote: Enjoy what you have earned while you are alive. Take a trip. Hire some help. Get that new car you've been wanting. You don't owe your heirs a thing. While you don't want to leave them with debts, dying broke is a wonderful thing because it means you literally didn't leave anything on the table.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-end-of-life-cost-savings-your-survivors-will-thank-you-for&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520End-of-Life%2520Cost%2520Savings%2520Your%2520Survivors%2520Will%2520Thank%2520You%2520For.jpg&amp;description=9%20End-of-Life%20Cost%20Savings%20Your%20Survivors%20Will%20Thank%20You%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/u5180/9%20End-of-Life%20Cost%20Savings%20Your%20Survivors%20Will%20Thank%20You%20For.jpg" alt="9 End-of-Life Cost Savings Your Survivors Will Thank You 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/9-end-of-life-cost-savings-your-survivors-will-thank-you-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-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-fair-way-to-split-up-your-familys-estate">The Fair Way to Split Up Your Family&#039;s Estate</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/should-you-set-up-a-trust-for-your-child">Should You Set Up a Trust for Your Child?</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/6-times-you-need-to-update-your-will">6 Times You Need to Update Your Will</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/dont-make-these-5-common-mistakes-when-writing-a-will">Don&#039;t Make These 5 Common Mistakes When Writing a Will</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/who-really-owns-your-digital-assets">Who Really Owns Your Digital Assets?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family attorneys estate planning final costs funerals heirs inheritance last will and testament long term care insurance survivors trusts valuables Thu, 02 Nov 2017 08:30:05 +0000 Carrie Kirby 2041364 at http://www.wisebread.com 12 Questions to Ask When Choosing an Assisted Living Facility http://www.wisebread.com/12-questions-to-ask-when-choosing-an-assisted-living-facility <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/12-questions-to-ask-when-choosing-an-assisted-living-facility" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/volunteer_and_old_people.jpg" alt="Volunteer and old people" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When a loved one ended up in physical rehab after a fall, I quickly learned what a bummer nursing homes can be. Although the staff tried to maintain a cheery atmosphere, it was clear that if my relative, Marion, stayed on as a permanent resident, she wouldn't be having much fun &mdash; and she'd be paying more than it would cost to live in the Four Seasons.</p> <p>This is why so many families look to assisted living as an alternative to a nursing home for elders who can't live independently but don't need extensive medical support. Nearly a million Americans now reside in assisted living facilities, and that number has grown substantially in recent years, according to the Centers for Disease Control and Prevention. Assisted living facilities are able to charge less than nursing homes because they need less medical staff, and many offer activities and social opportunities far beyond what residents can find in nursing homes.</p> <p>As we began our search for a place where Marion could enjoy her final years in comfort and safety, I learned that not all such homes are created equal. Here are some questions to ask as you look.</p> <h2>1. Can the facility provide the level of care needed?</h2> <p>Depending on the number and qualifications of staff, some facilities can help patients transfer from a wheelchair to bed or to the shower, while others can only accept residents who can transfer themselves, or at least help. Some facilities have locked memory care units for patients suffering dementia, but others don't. Before investigating further, find out whether your loved one could qualify to live there.</p> <p>The assisted living management may send a representative to evaluate the potential resident. If your loved one doesn't qualify, ask if there is anything they could do to improve their chances. In our case, Marion was close to the level of self-care needed but was lacking some abilities, so she did additional physical therapy before being re-evaluated.</p> <p>Beware of facilities that are so anxious to fill rooms that they accept residents they shouldn't. Make sure you ask exactly what help the residents get and what they don't. Find out what the staff to resident ratio is, including during the night shift. They may say they can help residents get up at night, but if one staffer is responsible for 100 residents, it's probably not happening.</p> <p>If you are in touch with other families who have used the facility, or people in your local medical and nursing community, ask them about outcomes. If the local hospital has admitted a lot of residents from the facility due to falls, for example, that could be a red flag.</p> <p>On the flip side, if you have a senior relative who needs little to no assistance, an independent living community might be a better option. In such a community, your elderly loved one can enjoy a more independent lifestyle with access to assistance only if they need it.</p> <h2>2. Is the facility licensed and inspected?</h2> <p>These facilities are regulated by state, so check with yours to find out the place's record. In California, you can <a href="https://secure.dss.ca.gov/CareFacilitySearch/Search/ElderlyAssistedLiving" target="_blank">look up a facility's license status</a>, any citations or complaints, and view inspection records online. Other resources to check are the Better Business Bureau and your <a href="http://theconsumervoice.org/get_help" target="_blank">state's ombudsman</a>.</p> <h2>3. Can the resident afford it?</h2> <p>Although assisted living facilities can cost a lot less than nursing homes, they don't come cheap. The average assisted living facility charges $3,750 a month, according to the Genworth Life and Annuity Insurance Company. And Medicare's not going to cover it. If you haven't previously been privy to your loved one's finances, now is the time to sit down and have a talk about assets and income, and determine where they can afford to stay and for how long. If there's a chance their money could run out in their lifetime, what's the plan for when that happens? (See also: <a href="http://www.wisebread.com/6-things-youll-encounter-when-taking-over-a-loved-ones-finances?ref=seealso" target="_blank">6 Things You'll Encounter When Taking Over a Loved One's Finances</a>)</p> <h2>4. What activities are offered?</h2> <p>Once she was settled in her assisted living facility, Marion enjoyed wheelchair fitness classes, bingo games, church services, and other activities. Later, she moved to a memory care unit that offered activities with more direction, such as arts and crafts and cooking classes. If your loved one is active, you'll want to look for a place that offers field trips and maybe even cocktail hours. A more limited person may be content with offerings such as taking some sun on the patio.</p> <h2>5. What is included?</h2> <p>Is the resident responsible for setting up their own phone line and cable TV, or does that come with the rent? Will they eat every meal in the dining room, or cook in their own apartment for some meals? What about laundry service, and supplies such as absorbent pads? Consider the logistics in addition to the costs: Will you be responsible for shopping for supplies and bringing them to the resident? Who will make sure the phone bill gets paid?</p> <h2>6. Can the resident abide by the rules?</h2> <p>Some elders will only consider a facility where they may share an apartment or room with their spouse. Are residents expected to keep their doors open or are they allowed privacy? Can they come and go at will, or do they need to have someone come check them out? Can they invite guests to dine with them? Do they have to go to bed and get up at a set time? These are all questions your loved one needs to consider before agreeing to a facility.</p> <h2>7. What on-site services are provided?</h2> <p>For women of a certain age, a weekly salon visit is a valued part of everyday life. Nail care is also a big plus and can be a morale boost. Transportation service to shopping and doctor visits are also a plus.</p> <h2>8. How does medical care work?</h2> <p>Does the staff dispense medications? How will residents get to their doctor appointments? Is physical therapy available? How long will the room be held if the resident has to be hospitalized?</p> <p>Some assisted living facilities are part of continuing care communities, meaning that they comprise independent living, assisted living, and rehab or nursing facilities, making movement back and forth easier on residents.</p> <h2>9. How long will they be able to stay?</h2> <p>The resident may qualify for the level of care offered now, but what about if they have a stroke or a fall and can no longer self-transfer or feed themselves? Does the facility have a section that offers a higher level of care, or would you be allowed to hire a nurse to provide additional assistance? Would your loved one have to move to a nursing home? What if your loved one needs hospice care?</p> <p>It's important to find out in advance under what conditions the resident could be involuntarily discharged. Sadly, after a hospitalization, Marion was not allowed to return to the assisted living facility she loved because her self-care abilities had declined. Luckily, we were able to place her in another facility with a higher level of care. The new facility was more expensive, but not only was it better equipped to care for her, the management promised &mdash; in writing &mdash; that under most circumstances she would be able to stay for the rest of her life. When the time came for hospice care, it was provided right in her room, where she felt most comfortable.</p> <h2>10. Does it seem like a nice place?</h2> <p>Everything may look good in writing, but of course you will want to tour the facility your loved one would be living in &mdash; if possible, with the future resident. The National Consumer Voice for Quality Long-Term Care offers the following signs of quality care: Residents appear well-groomed; call lights and requests for assistance are answered quickly and kindly; residents are engaged in activities; the place appears clean and smells fresh.</p> <p>One of the nicer assisted living facilities I have visited had a clean, large bird enclosure that residents loved to watch. Outdoor space and space for congregating and accepting visitors are nice too.</p> <h2>11. Will your loved one fit in?</h2> <p>If your elderly relative is still mentally nimble but needs help with physical needs, it's important to make sure they'll have peers in their new home. You can ask management about this, but it's one of the things you'll probably notice on a tour. Engage any residents in common areas in conversation to see if they seem willing and able to socialize with your loved one.</p> <h2>12. When could they move in?</h2> <p>The best facilities sometimes have waiting lists. Before either you or your loved one gets too set on a specific place, find out if there is a waiting list for the type of unit they want. If there is a long wait, consider where they will be living in the interim. If at home, is it safe to wait that long? If in a nursing home, consider that the longer someone stays in a situation that isn't right for them, the more their physical and emotional state can deteriorate.</p> <p>It's never easy to watch a loved one lose independence. But when the time comes, asking these questions can go a long way toward smoothing the transition and making sure they are in the right place.</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%2F12-questions-to-ask-when-choosing-an-assisted-living-facility&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F12%2520Questions%2520to%2520Ask%2520When%2520Choosing%2520an%2520Assisted%2520Living%2520Facility.jpg&amp;description=7%20Easy%20Ways%20to%20Give%20Back%20This%20Thanksgiving"></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/u5180/12%20Questions%20to%20Ask%20When%20Choosing%20an%20Assisted%20Living%20Facility.jpg" alt="12 Questions to Ask When Choosing an Assisted Living Facility" 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/12-questions-to-ask-when-choosing-an-assisted-living-facility">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-ways-to-ease-your-parents-into-assisted-living">6 Ways to Ease Your Parents Into Assisted Living</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-manage-a-family-members-finances-long-distance">How to Manage a Family Member&#039;s Finances Long Distance</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/a-simple-guide-to-planning-for-a-loved-ones-long-term-care">A Simple Guide to Planning For a Loved One&#039;s Long-Term Care</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-support-your-broke-parents">How to Support Your Broke Parents</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-frugal-living-skills-i-wish-my-parents-would-have-taught-me">8 Frugal Living Skills I Wish My Parents Would Have Taught Me</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Family aging assisted living elder care evaluations grandparents medical assistance nursing homes parents Wed, 01 Nov 2017 08:30:09 +0000 Carrie Kirby 2040504 at http://www.wisebread.com 9 Family Money Matters Your Kids Don't Need to Know http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/9-family-money-matters-your-kids-dont-need-to-know" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/working_at_home_1.jpg" alt="Working at home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>When you have kids, there will come a time when you want to teach them about money. Some basic personal finance lessons can go a long way toward helping your children understand things like spending, saving, and even investing.</p> <p>But there are many things about your family's finances that your children don't need to know right away, even if they are curious. Information about your family's income, debt, and spending can be confusing and even troubling to younger kids. And kids are prone to share this information when it's best to keep it private.</p> <p>Older teenagers may benefit from learning more about your financial situation as they approach an age when they will be earning money and making purchases on their own. But for younger children, especially, it may be best to keep the following financial information close to your vest. (See also: <a href="http://www.wisebread.com/4-parenting-mistakes-to-avoid-when-teaching-kids-about-money?Ref=seealso" target="_blank">4 Parenting Mistakes to Avoid When Teaching Kids About Money</a>)</p> <h2>1. Your income</h2> <p>Your kids don't need to know how much money you make. All they need to know is that you love them and will care for them. Younger kids, in particular, have no real sense of the value of money anyway. You could tell them you earn $100 a year and they would think you are rich.</p> <p>Children also have a habit of blabbing, and you never want to find your children bragging to other kids &mdash; or even worse, their parents &mdash; about how much money you earn. Your kids will be better off learning that happiness and financial security have less to do with your income and more to do with what you do with money when you have it. This means teaching them about saving, about being charitable to others, and about being appreciative of what you have.</p> <h2>2. Which parent earns more</h2> <p>It's common for one parent to earn more than the other. This is especially true if one parent chooses to stop working or works part-time to raise a family. Children should generally be left oblivious to which spouse is higher earning because salaries don't represent a person's full contribution to the family.</p> <p>If one parent stops working, it may mean they are taking on a greater share of household responsibilities. And it's also important to note that many of our more important professions are not particularly high paying. A schoolteacher may bring in less money than their banker spouse, but is likely to work just as hard. Rather than share details with your child about which spouse earns more, simply explain to them the value of all work, and give them an appreciation of the broad, non-monetary contributions needed to keep a household going.</p> <h2>3. Your retirement balance</h2> <p>Let's say you've been saving aggressively for retirement and have several hundred thousands of dollars saved. Now, let's say you just told your daughter she can't have ice cream because it costs too much. A child, if she was aware of your retirement savings, might find this baffling. It's hard for young people to grasp that you may have a large amount in savings but are still pinching pennies.</p> <p>Your retirement savings and overall net worth is not something that should be shared too widely. A child who finds out his dad has hundreds of thousands of dollars in the bank may be motivated to brag, and that's not good. So it's best to keep information about your retirement plan to yourself.</p> <h2>4. Your debts</h2> <p>Debt can be a major source of family stress, but it's a stress that only parents should carry. Your worries about how you'll pay off that credit card bill or how you'll make those car payments are your worries, not your kids'. There may be instances when you need to be honest with your children if there is money trouble, and older children may benefit from lessons in money management, credit, and the cost of borrowing. But as long as you are able to provide and care for your kids, they are best left unaware of your financial debt burden.</p> <h2>5. The price of your home</h2> <p>The cost of your house is public information, but that doesn't mean you need to broadcast it to your kids. The only thing that kids need to know about housing is that they have a roof over their head. What you paid for your house should, to the best of your ability, be kept between the buyer, seller, and real estate agent.</p> <p>Additionally, it's best not to share too much detail about mortgage debt. If they ever get a hint that you are struggling to make mortgage payments, that will only lead to anxiety.</p> <h2>6. What you inherit</h2> <p>If a relative passes away and leaves some assets to you, the specifics of that inheritance should be kept as private as possible. This is especially true if the inheritance is quite large. If a child learns of a sizable windfall and shares that information with others, that can lead to jealous family members or friends, and could even make you a target for thieves and scammers.</p> <p>Sometimes, certain family members receive less than others, or are cut out of the will altogether. This can result in family strife that children should not be concerned about.</p> <p>For older children, it is OK to explain to them how inheritances work, as they may take comfort in believing you'll leave them something when you pass. And there will be a time when you need to tell older children about their own inheritance so they have an idea of what they may have to manage.</p> <h2>7. The cost of gifts</h2> <p>Kids have a way of believing that the most expensive item is always the best. They'll reject something if they believe you got it at a deep discount or (gasp!) second-hand. So parents may be best served by not indicating how much they spent on that video game system or that baseball bat. By hiding the cost of items you buy for your kids, they may be more inclined to evaluate the gift on its merits.</p> <h2>8. Child support payments and alimony</h2> <p>If you and your spouse have divorced, you may be on the hook for child support payments, alimony, or both. These costs are usually determined by courts and can be a major source of tension between parents. The children are best left unaware of these details and any drama or conflict surrounding them. It may be comforting to a child if they are aware that support payments are being made, but sharing specific dollar figures can be problematic.</p> <h2>9. In some cases, the cost of college</h2> <p>This is a tricky one. If your child will end up paying for their own college education, he or she will obviously need to know what they'll be on the hook for. And if you are paying for all or part of college, they will be well served to know how much of a financial commitment you are making toward their education. (It will comfort them to know you are saving as much as possible.) But this information should not come to them immediately. A child's first priority should be to stay in school and get good grades. A young high schooler does not need to be burdened with the stress of whether they need to get scholarships or whether they'll be on the hook for student loans later.</p> <p>It's also important to understand that final college costs can vary from family to family, depending on scholarships and financial aid. A wealthy family might pay the full price to send their child to an Ivy League school, while a low-income family may pay next to nothing. This family financial information is really nobody's business, so it's important to be judicious in what you share with your child.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F9-family-money-matters-your-kids-dont-need-to-know&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F9%2520Family%2520Money%2520Matters%2520Your%2520Kids%2520Don%2527t%2520Need%2520to%2520Know.jpg&amp;description=9%20Family%20Money%20Matters%20Your%20Kids%20Don't%20Need%20to%20Know"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/9%20Family%20Money%20Matters%20Your%20Kids%20Don%27t%20Need%20to%20Know.jpg" alt="9 Family Money Matters Your Kids Don't Need to Know" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/9-family-money-matters-your-kids-dont-need-to-know">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-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/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-2 views-row-even"> <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-3 views-row-odd"> <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-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/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 alimony borrowing child support children debt divorce high earners income kids retirement spending Wed, 25 Oct 2017 08:00:07 +0000 Tim Lemke 2038887 at http://www.wisebread.com 15 Unexpected Expenses of a New Baby http://www.wisebread.com/15-unexpected-expenses-of-a-new-baby <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/15-unexpected-expenses-of-a-new-baby" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/i_never_thought_i_could_love_one_being_so_much.jpg" alt="I never thought I could love one being so much" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Can you afford to have a baby?</p> <p>You may have calculated obvious costs such as diapers, clothing, food, and day care, but don't be too quick to assume that you've accounted for everything. According to the United States Department of Agriculture, middle income families spend an average $12,980 a year on each kid, and $233,610 in a lifetime, <em>not including college</em>.</p> <p>When I was expecting my first baby, I thought there was no way I could spend that much. I may have been more frugal than most, but I still ran into all kinds of expenditures &mdash; and decreases in income &mdash; that I hadn't anticipated.</p> <p>Watch out for these unanticipated ways a baby may impact your family budget. (See also: <a href="http://www.wisebread.com/24-tips-for-having-a-baby-without-going-broke?ref=seealso" target="_blank">24 Tips for Having a Baby Without Going Broke</a>)</p> <h2>1. A birth that doesn't go as planned</h2> <p>If you have a high-deductible health plan or no health insurance at all, you may have carefully planned for a low-cost birth. That's smart. But one thing I learned from having three babies is that &quot;birth&quot; and &quot;plan&quot; can be oxymorons. So many factors are outside your control, such as when and where your labor begins, whether the baby has any trouble making their big entrance, and what kind of care you and the baby need after the birth.</p> <p>I know couples who planned a homebirth with a midwife, but ended up being transferred to the hospital in an ambulance for a C-section. If you are birthing at home or at a non-hospital birth center, both of which can be great choices, please have a financial plan for what happens if you get transferred. You will be under enough stress on the day of without adding financial unknowns to the mix. (See also: <a href="http://www.wisebread.com/10-newborn-costs-that-took-me-by-surprise?ref=seealso" target="_blank">10 Newborn Costs That Took Me by Surprise</a>)</p> <h2>2. Higher utility bills</h2> <p>When my husband and I were childless, we lived in a San Francisco flat with no central heat and we typically ran our electric wall heaters an hour a day or less.</p> <p>Once we brought home our first child, our electricity bill jumped for two reasons: One, we felt that baby needed a warmer room to sleep in at night, not to mention the fact that I had to leave the cocoon of blankets multiple times a night to feed her. Two, since I took a six-month maternity leave, then left our child at home with a nanny, our apartment was suddenly occupied nearly 24/7 instead of only on evenings and weekends. We ran the heat much more, kept more lights on, and certainly ran more loads of laundry and dishes. If you decide to use cloth diapers, expect your laundry use to increase even more than average. (See also: <a href="http://www.wisebread.com/everything-you-need-to-know-about-cloth-diapers?ref=seealso" target="_blank">Everything You Need to Know About Cloth Diapers</a>)</p> <h2>3. Convenience food</h2> <p>When I stopped working full-time to stay home with my new baby, I expected to make more home-cooked meals. In the long run that was true, but in the early months, I had trouble getting dinner on the table. Like many babies, my infant fussed most in the late afternoon, and often I couldn't put her down without her screaming. Many things can safely be done with a baby strapped to your body, but stirring a dish over a hot stove or putting a casserole in the oven aren't among them.</p> <p>For many households &mdash; especially if both parents work and have limited time between day care pickup and dinner &mdash; bringing home a baby is going to mean also bringing home more pizzas, ordering Chinese, and heating up Trader Joe's fake out. Don't guilt yourself about it; just budget for it.</p> <h2>4. Health care</h2> <p>Your health plan may not charge copays for the well baby visits scheduled frequently during the first year, which is great. But keep in mind that these may not be your only doctor visits. An ear infection may lead to two visits and a prescription. For one of my babies, a cold turned into a hospitalization for pneumonia. Another had frequent chest congestion that necessitated a breathing machine at home.</p> <p>If you have been on a health care plan that only covers major illnesses, you may need to look into a plan that covers more frequent visits before your baby is born.</p> <p>Then there are all the nonprescription supplies that you might buy for minor infant health concerns: baby Motrin, teething gel, a humidifier to ease congestion, medicated cream for eczema or rashes, a high-tech thermometer, so on and so forth. All these things add up, and quickly.</p> <p>Babies have to be taken to the doctor so often &mdash; weekly at first, then monthly, plus sick visits &mdash; that even transportation costs for getting to the doctor may have to be taken into account.</p> <h2>5. Loss of income</h2> <p>The last time I earned a full-time paycheck was 13 years ago. I may never earn one again.</p> <p>My family is an extreme example &mdash; many must and do have both parents return to working full-time within six weeks of birth. But I took six months away from my job after my first birth, some of that time unpaid, and then returned as a part-time worker. While pregnant with my second child, I quit my job altogether. I only began contributing freelance income to the family budget gradually as my kids got older.</p> <p>Even for families where both parents plan to keep working full-time, income may decline. Both parents may pass up opportunities for overtime. Time for side hustles evaporates. Parents may have to take unpaid days off if the baby is sick, or for those numerous well baby visits. (See also: <a href="http://www.wisebread.com/12-side-jobs-for-stay-at-home-moms-and-dads?ref=seealso" target="_blank">12 Side Jobs for Stay-at-Home Moms and Dads</a>)</p> <h2>6. A bigger house</h2> <p>My husband and I brought our first baby home to a 750 square foot, one-bedroom apartment with no immediate plans to move. After all, the American Academy of Pediatrics recommends sharing a room with your baby! We were sure we would be cozy.</p> <p>Unfortunately, we almost immediately felt crowded out by baby equipment, not to mention the fact that there was nowhere to escape to if the baby was crying and one parent was trying to sleep or work. Living in a building with shared walls also became a problem, especially when the baby learned to bang her toys on the floor.</p> <p>Housing accounts for around a third of the expense of raising a child, according to the USDA. If you think you won't move after you have a baby, go to some open houses and ask the sellers why they're moving. Lots of them will tell you it's because their family is growing. And if you don't move after the first baby, you will probably want a bigger place once the second is on the way.</p> <p>Our family moved out of that one-bedroom flat into a three-bedroom house around the time that our second baby was born. The mortgage is twice what we paid before having kids. (See also: <a href="http://www.wisebread.com/5-easy-ways-to-make-room-for-baby?ref=seealso" target="_blank">5 Easy Ways to Make Room for Baby</a>)</p> <h2>7. A larger car</h2> <p>You do not need to rush out and buy a minivan the moment you see two pink lines on the pregnancy test. However, it can be shocking how much space today's infant seats take up in the back seat. If you've been driving a two-door compact car, you may find yourself wanting something larger after the baby comes. And if you have more than two children, good luck fitting their car seats in the back of any sedan. The first baby saw us upgrade from a two-door hatchback to a Subaru; the third child sent us from the Subaru to small sport utility vehicle.</p> <h2>8. Life insurance</h2> <p>Before having kids, my husband and I didn't worry about life insurance. If I died, my husband would have been able to handle the payments on our condo by himself, and vice versa.</p> <p>But once you have a child, you have to ask yourself what would happen if one parent suddenly died. Your child would likely receive Social Security payments, but would this be enough to keep living where you live, to pay for child care while the surviving parent works, and to save for college? And what if both parents died?</p> <p>Life insurance costs can vary widely depending on your overall health and lifestyle and the specifics of your plan. However, you need to seriously consider this expense once you become a parent. (See also: <a href="http://www.wisebread.com/term-vs-whole-life-insurance-heres-how-to-choose?ref=seealso" target="_blank">Term vs Whole Life Insurance: Here's How to Choose</a>)</p> <h2>9. Child care</h2> <p>Of course, you knew before you had a baby that you weren't going to be able to leave it home alone while you worked. But you probably didn't realize just how much child care would cost. According to a recent NerdWallet study, half of expecting parents thought diapering would be the biggest expense of having a baby, not child care.</p> <p>According to that study, the cost of full-time child care ranges from $8,000 at a day care center to $27,000 or more for a nanny.</p> <p>Even if you had realized that child care would be expensive, you may find yourself paying even more than you'd imagined. For instance, when my first child was born, I hoped I wouldn't need child care because I planned to change my work shift to evenings. That plan collapsed when my boss turned down my request. My second thought was to use a day care center, but I quickly found out that all the centers in my urban neighborhood had years long waiting lists for infant care. Home-based day cares were more affordable and available, but each one I visited had a worrisome condition, such as kids sitting in front of the TV for hours or being left crying in their cribs well after naptime. I finally ended up sharing a nanny with another family, at a cost far higher than I had anticipated.</p> <h2>10. All the cute things</h2> <p>You might think that you won't waste money buying clothes and toys for your newborn. After all, you got all those clothes at your baby shower. Then you meet your baby and realize that she's the most beautiful creature on earth and that beautiful creatures need accessories. After my first child was born, I developed a habit of popping into the Gymboree near my work regularly to see if new styles were in and if anything had gone on sale. This routine did not help our family budget.</p> <h2>11. Feeding</h2> <p>If you're planning on breast-feeding your baby, you might expect that to be free, right? Not exactly.</p> <p>A surprising number of newborns have trouble getting the hang of breast-feeding. You might need to consult a lactation specialist just once to help your infant latch and learn to suck, or you may need multiple home visits. You may need to buy products, such as nipple shields, to help the latch happen. All this struggle may wreak havoc on the mother's body and soul, necessitating anything from nipple cream to doctor visits for mastitis to seeing a counselor.</p> <p>Whether your baby succeeds immediately at breast-feeding or not, you still probably need a breast pump. You'll also likely need a better, more expensive breast pump than you thought. I've tried a lot of them, and trust me, a cheap breast pump will not enhance postpartum life.</p> <p>Many parents end up bottle feeding instead of or in addition to breast-feeding, which brings the expense of formula and bottles. You might even buy a sanitizer for the bottles, an insulated carrying pack for either breastmilk or formula, or a mini fridge for the office or nursery.</p> <p>In the second half of the first year, your baby will start eating solids, an occasion you can mark by purchasing many kinds of organic foods for him to spit onto the kitchen walls, and new feeding gadgets such as suction cup bowls and spoons that hold puree in the handle. Expect to throw away most of the food you purchase, either directly from the container because it went bad before your baby finished it, or after scraping it off the floor, walls, cupboards, and your own clothing.</p> <h2>12. Specialists</h2> <p>Taking care of a baby might sound easy before you try it. After all, humans have been doing this since they lived in caves. If that were true, though, there wouldn't be so many specialists out there ready to help you figure it out for an hourly fee.</p> <p>You might realize after you come home from the hospital that you need a postpartum doula or baby nurse to help you get back up to speed and get a few hours of sleep at night. Many more families than you would imagine consult a sleep specialist to help them figure out how to get their infants to sleep.</p> <h2>13. Baby gear</h2> <p>Before my first was born, I read a book called <em>The Baby Book</em> by a certain Dr. Sears. This book, which embraces attachment parenting, convinced me that I wouldn't need anything but my own arms and maybe a sling to care for my baby. After all, I would never want to turn my baby over to a mechanical device like a swing when I could be cuddling her in my arms.</p> <p>Then I brought the baby home, and I realized that sometimes I needed to use the bathroom or shower or cook dinner. This wasn't really covered in the book. We purchased our first baby swing, a weak little portable model. By the time we had our third baby, I had the most powerful swing on the market downstairs, another swing for upstairs, plus a bouncy seat for the bathroom, two strollers, and countless other pieces of baby gear.</p> <p>Even if you think your baby shower will cover your gear needs, the fact is that you will end up spending money on baby equipment. Don't feel the need to buy every single product that's advertised for babies, but accept the fact that there will be gadgets, and some of them really help.</p> <h2>14. Replacing things that baby wrecks</h2> <p>That sweet thing can't even raise his head; how could he destroy your possessions?</p> <p><em>Just wait.</em></p> <p>My babies have slobbered and mouthed a cellphone into oblivion. They've grabbed fragile things that I thought were out of reach and flung them. They have vomited on strangers and caused me to have to pay for those strangers' meals. They have stretched out the necklines of my shirts while reaching for my breasts. One of them even wrecked an expensive ballpark beer before I got the chance to take a sip by throwing a cleaning wipe into the cup.</p> <p>And oh, the pacifiers. I have surely spent thousands of dollars replacing pacifiers that babies flung out of car windows, dropped in the park, and just disappeared into the baby ether.</p> <p>You really can't have nice things with a baby around. And even your mediocre things will need replacing or professional cleaning more often than you'd expected.</p> <h2>15. Entertainment and education</h2> <p>Before I became a mother, I laughed out loud at a colleague who told me he took his infant to a music class. But when I was on maternity leave with my daughter, the hours began to weigh on me. We needed somewhere to go, and you can only grocery shop so many times per day.</p> <p>We signed up for a baby sign language class and later &mdash; yes &mdash; a baby music class.</p> <p>For the parents, there are also continuing education classes to pay for, such as infant CPR. And if you stay home with your baby, there's the cost of being out and about instead of sitting in an office all day. I found myself spending on things like lattes and lunches with other moms, just because I was out pushing the stroller.</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%2F15-unexpected-expenses-of-a-new-baby&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F15%2520Unexpected%2520Expenses%2520of%2520a%2520New%2520Baby.jpg&amp;description=15%20Unexpected%20Expenses%20of%20a%20New%20Baby"></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/u5180/15%20Unexpected%20Expenses%20of%20a%20New%20Baby.jpg" alt="15 Unexpected Expenses of a New Baby" 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/15-unexpected-expenses-of-a-new-baby">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/10-sneaky-vacation-costs-that-add-up-quickly">10 Sneaky Vacation Costs That Add Up Quickly</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/9-college-expenses-you-arent-saving-for">9 College Expenses You Aren&#039;t Saving For</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-budget-items-you-may-be-forgetting">7 Budget Items You May be Forgetting</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-how-you-should-budget-your-social-security-checks">Here&#039;s How You Should Budget Your Social Security Checks</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/stop-making-these-7-basic-budget-mistakes">Stop Making These 7 Basic Budget Mistakes</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Family babies child care day care expenses Food Health hidden costs income infants newborns unexpected costs Tue, 24 Oct 2017 09:00:06 +0000 Carrie Kirby 2039971 at http://www.wisebread.com 4 Questions to Answer Before Giving Your Kid a Credit Card http://www.wisebread.com/4-questions-to-answer-before-giving-your-kid-a-credit-card <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/4-questions-to-answer-before-giving-your-kid-a-credit-card" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/lets_learn_about_responsible_spending.jpg" alt="Let’s learn about responsible spending" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Would you give your 10-year-old a credit card? Many parents would; in fact, a recent study by T. Rowe Price found that nearly one out of every five parents with children between the ages of eight and 14 have given their child a credit card.</p> <p>Are you considering joining this group of parents? If so, you need to make sure that you ask your young children these questions first. And make sure you get the answers you need to hear to inspire confidence that your youngster is ready for that piece of plastic. (See also: <a href="http://www.wisebread.com/13-things-to-teach-your-kids-about-credit-cards?ref=seealso" target="_blank">13 Things to Teach Your Kids About Credit Cards</a>)</p> <h2>What is the credit card for?</h2> <p>If you're giving a kid as young as 13 or 14 a credit card, it's safe to assume that this card is to be used only for a specific purpose. Maybe you want your child to use the card to buy a train pass each month to get back and forth from school. If that's all the card is to be used for, spell it out clearly so your child understands and isn't tempted to use it to buy a new shirt or video game. (See also: <a href="http://www.wisebread.com/4-reasons-to-add-your-teen-as-an-authorized-user-on-your-credit-card?ref=seealso" target="_blank">4 Reasons to Add Your Teen as an Authorized User on Your Credit Card</a>)</p> <h2>What is the spending limit per week or per month?</h2> <p>You'll need to set clear spending limits before handing over a credit card to your kids. Maybe your kids can only charge up to $150 a month. Or maybe their spending limit is $300. Whatever it is, make sure your kids know this limit and understand what it means. Ask them about it early and often. You want your kids to understand that the spending limit is a rule and not a suggestion.</p> <p>Make it clear, too, that if their monthly limit is $200 and they charge $150 in the first week, they can now only spend $50 for the rest of the month. Don't let them break that spending limit. If you do, that limit become meaningless. (See also: <a href="http://www.wisebread.com/should-you-cosign-your-teenagers-credit-card-application" target="_blank">Should You Cosign on Your Child's Credit Card Application?</a>)</p> <h2>Who pays, and how much?</h2> <p>Before giving your children a credit card, you'll need to establish the payment rules with them. Explain how credit cards work, and that if the bill isn't paid on time, the account will be hit with late fees. Make sure that they understand the consequences of not paying their balances off in full each month and that high interest rates can make credit card debt grow quickly.</p> <p>Once you've asked your kids these credit card basics, establish ground rules for how the card is to be paid. Maybe you've agreed to pay the card in full each month, as long as your children don't spend past a certain limit. Maybe you and your children have agreed to split the monthly bill, with your children covering their half with allowance money or withdrawals from their savings accounts.</p> <p>Whatever arrangement you agree to, don't change the rules at the end of a month. Your children might complain that they have to pay half the credit card bill. Don't let their complaints convince you to cover the whole bill. This won't teach your children about financial responsibility.</p> <h2>Do they understand the consequences of misusing their cards?</h2> <p>Have consequences in place if your child overspends with a credit card or purchases items they're not supposed to be buying.</p> <p>Maybe you agree that your child can charge $150 a month maximum. If your child spends $200 in a month, they should know that there will be consequences. Perhaps they will be responsible for repaying what they overspent, whether that repayment comes in the form of extra chores, a withdrawal from their savings account, or a reduction in next month's spending limit.</p> <p>If your children use their cards to purchase something they aren't allowed to buy &mdash; say an in-app purchase or a fast food meal &mdash; there should be consequences, too. Maybe your child will lose their card for a month or on a permanent basis if they don't follow your buying rules. Spell these rules out before you give them their own credit card. (See also: <a href="http://www.wisebread.com/7-important-lessons-frugal-parents-teach-their-children?ref=seealso" target="_blank">7 Important Lessons Frugal Parents Teach Their Children</a>)</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <div align="center"><a data-pin-do="buttonPin" data-pin-count="above" data-pin-tall="true" href="https://www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F4-questions-to-answer-before-giving-your-kid-a-credit-card&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F4%2520Questions%2520to%2520Answer%2520Before%2520Giving%2520Your%2520Kid%2520a%2520Credit%2520Card.jpg&amp;description=4%20Questions%20to%20Answer%20Before%20Giving%20Your%20Kid%20a%20Credit%20Card"></a></p> <script async defer src="//assets.pinterest.com/js/pinit.js"></script></div> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/4%20Questions%20to%20Answer%20Before%20Giving%20Your%20Kid%20a%20Credit%20Card.jpg" alt="4 Questions to Answer Before Giving Your Kid a Credit Card" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/4-questions-to-answer-before-giving-your-kid-a-credit-card">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-your-bad-credit-can-impact-your-kids">How Your Bad Credit Can Impact Your Kids</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/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/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-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/9-family-money-matters-your-kids-dont-need-to-know">9 Family Money Matters Your Kids Don&#039;t Need to Know</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Family allowances authorized users children co-signing credit limits kids responsibility Mon, 23 Oct 2017 08:30:10 +0000 Dan Rafter 2039974 at http://www.wisebread.com