Family

How the Sandwich Generation Can Protect Their Retirement

Emily Guy Birken — Fri, 09 Oct 2020 17:32:44 +0000

For those who are caring for their aging parents and raising kids at the same time, it can often seem like there's never enough time, money, or energy to provide for all the family members who need you. In particular, handling finances when two different generations are relying on you can feel like an impossible balancing act — not to mention an exercise in feeling guilty no matter what you do.

But being the caregiver sandwiched between two generations makes it even more important for you to prioritize your own financial needs, especially when it comes to retirement planning. By protecting your retirement during this difficult season of your life, you'll be in a better place to remain independent as you age, launch your kids into a more secure adulthood, and offer ongoing support to your parents.

Sound impossible? It's not. Here's how you can protect your retirement if you're a member of the sandwich generation.

Retirement savings comes first

Retirement savings should get priority ahead of putting money into your kids' college funds. You know that already. Your kids can take on loans for college, but there are no loans available to pay for your retirement.

The more difficult decision is prioritizing retirement savings ahead of paying for long-term care for your parents. That can feel like a heartless choice, but it is a necessary one to keep from passing money problems from one generation to the next. Forgoing your retirement savings during your 40s and 50s means you'll miss out on long-term growth and the benefits of compound interest. By making sure that you continue to set aside money for retirement, you can make sure your kids won't feel financially squeezed as you get older.

Instead of personally bankrolling your parents' care, use their assets for as long as they last. That will not only allow you to make the best use of programs like Medicaid (which requires long-term care recipients to have exhausted their own assets before it kicks in), but it will also protect your future.

Communication is key

Part of the stress of being in the sandwich generation is feeling like the financial burdens of two generations (as well as your own) are resting entirely on your shoulders. You feel like you'll be letting down the vulnerable people you love if you can't do it all. But the truth is that you can't do it all. And you shouldn't expect that of yourself, nor should your family expect it of you. So communicating with your loved ones about what they can expect can help you draw important boundaries around what you're able to offer them.

This conversation will be somewhat simpler with your children. You can let them know what kind of financial help they can expect from you for college and beyond, and simply leave it at that.

The conversation is a little tougher with your parents, in part because you need to ask them about nitty-gritty details about their finances. Whether or not money is a taboo subject in your family, it can be tough for your parents to let you in on important financial conversations — to them it feels like they were changing your diapers only a few short years ago.

Being in the loop on what your parents have saved, where it is, what plans they have for the future, and who they trust as their financial adviser, will help protect their money and yours. You'll be better able to make decisions for them in case of an emergency, and being included in financial decisions means you can help protect them from scams. (See also: 5 Money Strategies for the Sandwich Generation)

Insurance is a necessity

Having adequate disability insurance in place is an important fail-safe for any worker, but it's especially important for those who are caring for aging parents and young children. The Council for Disability Awareness reports that nearly one in four workers will be out of work for at least a year because of a disabling condition. With parents and children counting on your income, even a short-term disability could spell disaster, and force you to dip into your retirement savings to keep things going. Making sure you have sufficient disability income insurance coverage can help make sure you protect your family and your retirement if you become disabled.

Life insurance is another area where you don't want to skimp. With two generations counting on you, it's important to have enough life insurance to make sure your family will be okay if something happens to you. This is true even if you're a full-time unpaid caregiver for either your parents or your children, since your family will need to pay for the care you provide even if they aren't counting on your income.

It's also a good idea to talk to your parents about life insurance for them, if they're able to qualify. For aging parents who know they will draw down their assets for long-term care, a life insurance policy can be a savvy way to ensure they leave some kind of inheritance. If your parents are anxious about their ability to leave an inheritance, a life insurance policy can help to relieve that money stress and potentially make it emotionally easier for them to draw down their own assets.

Become a Social Security and Medicare expert

Spending time reading up on Social Security, Medicare, and other programs can help you to make better financial decisions for your parents and yourself. There are a number of misconceptions, myths, and misunderstandings masquerading as facts about these programs, and knowing exactly what your parents (and eventually you) will be entitled to can help make sure you don't leave money on the table or make decisions based on bad information.

The eligibility questionnaires at benefits.gov can help you determine what benefits are available and whether your parents qualify. In addition, it's a good idea to sign up for a my Social Security account for yourself. This site will provide you with personalized estimates of future benefits based on your lifetime earnings, which can better help you prepare for your own retirement.

Don't be afraid to ask for help

Caring for children and parents at the same time is exhausting. Don't compound the problem by thinking you have to make financial decisions all by yourself. Consider interviewing and hiring a financial adviser to help you make sense of the tough choices. He or she can help you figure out the best way to preserve your assets, help your parents enjoy their twilight years with dignity, and plan for your children's future.

Even if a traditional financial adviser isn't in the cards for you, don't forget that you can ask for help among your extended family and network of friends. There's no need to pretend that juggling it all is easy. Family can potentially offer financial or caregiving support. Knowledgeable friends can steer you toward the best resources to help you make decisions. Relying on your network means you're less likely to burn out and make disordered financial decisions. (See also: 9 Simple Acts of Self-Care for the Sandwich Generation)

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You Pay Your Kids For Good Grades?

Emily Guy Birken — Tue, 01 Sep 2020 08:00:06 +0000

In a recent attempt to get our kids to consume some vegetables, we offered them the bribe — I mean, incentive — of a brand-new toy if they each ate a carrot with dinner every night for several weeks. After the carrot challenge ended and the boys were delighted with their new toys, we faced the problem of both kids declaring that they would never eat another carrot again as long as they lived. So much for fostering an appreciation for carrots.

This is the central paradox of incentivizing good behavior. You may be able to get your children to do what you want them to for a short time, but will it ultimately result in changed habits?

Here's what you need to know about paying your kids for good grades, so you can decide the best way to encourage them to succeed.

Cash incentives may work

One of the most compelling arguments for paying kids for good grades is that it's how the world of work is structured. Most adults wouldn't go to work every day without getting paid, and they are incentivized to improve their performance by the promise of bonuses, raises, and other perks. So it does seem reasonable to offer kids compensation for their hard work at school.

In fact, research has found that this kind of incentive can actually work to improve student performance and test scores. According to Education Week, Roland Fryer, an economist at Harvard University, conducted a series of experiments in the mid-2000s in which he paid $6 million to over 18,000 low-income students in several U.S. cities to incentivize them to improve their test scores. However, the results indicated that when offering cash for school performance, the important thing to focus on is rewarding something students feel like they have control over.

That means using money (or other incentives) to motivate inputs, such as number of hours spent studying, rather than outputs, such as grades or test scores. Students may want to improve their performance, but not know how to budge the needle. Rewarding them for their effort will be much more effective in encouraging better outcomes than rewarding them for a specific grade. (See also: 5 Money Moves Every Single Parent Should Make)

Tread carefully with multiple kids

If parents do decide to offer financial incentives to their kids, another potential landmine can be knowing how to handle more than one child in the family. If one kid is a born scholar and another struggles with learning disabilities or behavioral issues, rewarding the first for what they're already good at and giving nothing to the second will not end well. The student you most want to motivate will learn to hate and resent school.

On the other hand, it can be tough to offer a sliding scale of payment for each kid. The high-achiever might resent that their struggling sibling gets the same money for worse grades or test scores. Making it clear that you're rewarding effort rather than results is the best way to make sure you don't discourage the very behavior you're trying to encourage.

Incentives can backfire

While paying kids to improve their grades can result in better studying habits and improved scores, it may not effectively encourage them to engage with school. Studies have shown that rewards incentivize students to do the minimum necessary to receive their prize, after which point they lose interest. This was the exact problem my family encountered with our carrot-eating challenge, as the incentive was the only reason the kids were eating their vegetables, and they were not interested in trying to find a way to like eating carrots.

This is unsurprising when you think of all the disengaged workers who only show up and do the bare minimum to keep from getting fired. Without the intrinsic engagement with the work, whether that's learning literature and history, or filing TPS reports, payment for this kind of work becomes the only thing the recipient cares about.

In addition, likening school to work by offering cash incentives can also backfire. That's because schools can't fire underperforming students the same way an employer can fire a lackluster worker. Nor do schools have access to any of the other negative consequences an employer can use to improve an employee's poor performance. With a carrot and no stick, students will both get a false sense of what work life will look like, and feel more comfortable simply opting out of incentives, since there are no negative consequences for bad grades that they haven't already felt.

Instilling a love of learning in disengaged students is not an easy task, as any teacher can tell you. But paying them is no way to create that enjoyment for school. A better way to help kids engage with their studies is to encourage their interests and show how school relates to the subjects they are most passionate about. This may take more effort than simply handing out the dollar bills come report card time, but it will have better outcomes for encouraging a love of learning. (See also: 7 Parenting Mistakes Everyone Makes But No One Talks About)

Should you pay for good grades?

Bribery as a parenting tactic is not going away anytime soon. It's effective in the short term, and sometimes Mom and Dad simply need to get their kids to do something. However, paying kids is not always the best way to encourage them to engage with their school work.

If you're considering paying your kids for their school work, make sure all of your kids understand what they can each do to earn their rewards, use the payments to incentivize behavior they have control over, and continue working to help them see the joys of learning.

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Get Your Kid Started With Investing

Carrie Kirby — Sat, 08 Aug 2020 17:32:44 +0000

My daughter recently lost $80 in her bedroom. It's just gone. One theory is that we accidentally donated it to Goodwill, since she had stored it in an old book and we'd been clearing out a lot of junk. But it got me thinking: What would be a better place to keep money she's not using?

She's been bringing in some respectable allowance earnings with the chores she's taken on recently. Plus, she always receives some money for birthdays, and she doesn't spend much. Maybe an investment account?

While the investing rules are a little different for minors compared to adults, it's not hard to get your child started investing. Even if they only make a little money, the experience may encourage them to start investing for retirement early in adulthood, which can set them up for life. Here's how to show your kid the basics of investing.

Determine what kind of account to set up

Children can set up savings, checking, or brokerage accounts using the Uniform Transfers to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA). All they need is an adult (presumably you) to sign on as the account's custodian. This means you have to approve what your child does with the money until your kid is of age, which is 18 or 21, depending on what state you live in. Because the funds or investments in a UTMA legally belong to your child, once they're in this account, they can only be spent for your child's benefit. You can't deposit $100 in your child's UTMA account and later decide you want it back or transfer it to another child.

Setting up a UTMA account is much like setting up any other account. You can walk into a bank or credit union and open one for your child by filling out some paperwork and showing your identification, or you can go online to sign up for one with a firm such as Vanguard.

Your child could also set up a UTMA 529 savings plan. The 529 is a college savings vehicle that has tax advantages, but also comes with restrictions on how it can be spent. More on that below.

Aside from a traditional brokerage account, your child could also try a micro-investing account, since they're likely to be starting with a small amount of money. You can set up a custodial account through Stash or Stockpile — in fact, Stockpile even works with BusyKid, an app that helps families track kids' chores and pay their allowances digitally.

Besides an investment account, you may also need to open a checking or money market UTMA for your child and link it to the brokerage account, as a way to fund the brokerage account and a place to receive dividends and other proceeds.

Unless they have earned income from working, your kids can't set up a traditional or Roth individual retirement account. (See also: 9 Essential Personal Finance Skills to Teach Your Kid Before They Move Out)

Figure out what investment vehicles to use

Once their account is set up, kids have access to the same investment products that adults do, such as mutual funds, individual stocks, or exchange-traded funds. Which products they choose depends on their interests, how much money they have to start with, and how actively they wish to invest.

A child who is interested in following one or more companies in the news and making active investment choices may want to buy individual stocks. Look for a brokerage firm with no minimum initial deposit (or a low one) and low trade fees. While this is a concrete and exciting way to start understanding the stock market, make sure that kids understand that for the long haul, many financial advisers recommend investing in funds over individual stocks.

If your child doesn't have any individual companies in mind, but would like to invest in the market as a whole, a mutual fund such as an S&P 500 index fund is a great way to go. Good ones have low expenses, meaning that your kid gets to keep more of his/her investment. Unfortunately, mutual funds do tend to require minimum investments. For instance, to buy shares in Charles Schwab's often-recommended S&P 500 index fund, you need to open a Schwab brokerage account with a $1,000 initial deposit. However, there is one way around that: You can also open a Schwab account with a $100 deposit — but you have to deposit an additional $100 each month until the account has a $1,000 balance.

Your child could also buy exchange-traded funds, which work a lot like mutual funds but tend to have lower minimum investments.

Another way to get started with a small initial investment is to use one of the micro-investing apps mentioned above, which split one share of stock or of an ETF and sells the investor a fraction of it. These apps can make getting started very simple for young kids by characterizing investments by category. In exchange for making things this simple for you, these services usually charge a monthly fee; Stash's is $1 per month.

While your child could also opt to invest in Treasury bonds or certificates of deposit, at today's low interest rates, this probably wouldn't be a very exciting way for them to learn about investing.

What about taxes?

Does your child have to pay taxes on their investment gains? Do they have to file their own tax return? The answer to both questions is, "It depends."

If your child's investment income is less than $1,050, don't worry about it; you don't need to report this to the Internal Revenue Service. If the child's investment income is less than $12,000, the parent can opt to report it on their own tax return, or file a separate return for the child. At more than $12,000, you have to file a tax return for your child.

What rate will your kid pay? Unearned income up to $2,100 will get taxed at between 0 percent and 10 percent, depending on what kind of income it is. After that, your child's unearned income will be taxed at your rate, no matter if you file separately or together. So don't imagine that you can save a bundle on taxes by transferring all your investment accounts to your kids — the IRS caught on to that gambit years ago.

If your child chose to put their money in a UTMA 529 plan, they never have to pay federal taxes (and generally not state taxes either) on the earnings, as long as they spend it on qualifying educational expenses, such as tuition and textbooks.

Will investing hurt their chances of getting college aid?

It's important to note that when it's time to apply for college financial aid, assets in the child's name count against them more than assets in the parents' name. Unless you're sure your family won't qualify for financial aid — and outside of the 1 percent, that's not usually something you can be sure of in advance — encourage your child to choose shorter-term goals for their investment account. They could choose a goal of anything from buying a new Lego set, to a week of sleep-away camp, to their first car.

Again, putting their investments in a 529 plan changes the situation a bit. Even if the child is the account owner, the financial aid officers consider assets in a 529 account a parental asset. This is great, because only about 5 percent of parental assets count against financial aid eligibility, compared to 20 percent of student assets in a non-529 UTMA account.

If your student does invest college savings in their own name, have them spend their own money first before you tap into a 529 plan or any other savings you are holding for their education.

Like this article? Pin it!

This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Decide If Pet Insurance Is Worth the Cost

Emily Guy Birken — Wed, 22 Jan 2020 18:11:28 +0000

Last fall, our greyhound Tivo refused his breakfast on a Friday morning. He didn't eat or drink water all day, and we were worried. That night, we took him to the 24-hour emergency veterinarian and Tivo was diagnosed with a bacterial stomach bug and dehydration. We went home with antibiotics, a saline IV, and a $200 vet bill.

Thankfully, we could afford this bill for unexpected emergency care for Tivo. But if he were diagnosed with a chronic condition or needed a very costly intervention, we might find ourselves facing some heartbreaking financial decisions.

Pet insurance is often touted as a solution to these worries. With pet insurance covering some costs of veterinary care, you're never forced to choose between your beloved pet and your finances. However, does this kind of coverage make sense for most pet-owners?

Here's what you need to know about pet insurance so you can keep your fur babies bright-eyed and bushy-tailed for years to come.

Premium costs

As with human health insurance, pet insurance charges you a monthly premium for your pet's coverage. According to Value Penguin, the average monthly cost for canine pet insurance is $47.20, and the average for feline insurance is $29.54 for accident and illness coverage.

Of course, this doesn't tell the whole story of what to expect from premium costs. Many pet insurers increase premiums with the age of your pet. Which means the $47 per month you pay to keep your 4-year-old pup healthy could rise with his/her age, making the premiums harder to keep up with just as they're more likely to need age-related medical intervention. In addition, different breeds can have different premium prices, since there are some hereditary conditions that various breeds may be more prone to.

However, even with these potential issues, there are some methods to keep premiums manageable. For instance, some tried and true insurance reduction strategies work just as well for your pet's health insurance as they do for your own. These include increasing your deductible, reducing the percentage that the insurance reimburses, or limiting the annual payout rather than choosing unlimited coverage.

These strategies can keep your premiums affordable while still helping with big veterinary bills. But you need to be prepared to pay anything above and beyond the coverage limits you set up. (See also: 8 Ways to Lower Your Vet Bills)

Coverage

It's also important to note that pet insurance does not necessarily cover every kind of health cost for your pets. To start, unlike (some) human health insurance, most pet insurance will not cover preventive care and annual exams. So you will need to plan for these costs on top of your premiums.

Pet insurance policies generally come in two varieties: accident and illness policies, and accident-only policies. In general, accident-only policies do not raise their premiums as your pet ages, making this kind of insurance more affordable long-term. However, accident-only policies tend to be cheaper because your pet is less likely to get injured than fall ill. If you decide to invest in pet insurance, getting both accident and illness protection will likely offer you more protection.

That said, each insurer gets to decide which illnesses, conditions, and services it covers, and not all ailments are covered. Many insurers also do not cover the diagnostic exam for a particular illness, even if the treatments are covered. Make sure you pay attention to the details of what your potential insurer will cover before signing up for coverage.

As with many types of human health insurance, most pet insurance policies exclude preexisting conditions. Unfortunately, some insurers consider health problems to be "preexisting" if they crop up within a year of the purchase of your policy. Insuring your pet when they're young is the best way to avert the preexisting condition coverage gap.

Finally, pet insurance coverage is usually handled via reimbursement. That means you'll be on the hook to pay the vet bill at the time of service, and you'll submit your receipts to your insurer to receive reimbursement. (See also: 7 Things You Need to Know About Pet Insurance)

Should you buy pet insurance?

With all the caveats, coverage gaps, and reimbursement requirements, pet insurance is not necessarily a slam dunk for everyone. In fact, many consumer advocates recommend that pet owners put aside an amount equal to the annual premium into a savings account each year. This will give you the same peace of mind that you can cover any potential health care needs for your pet while also allowing you to keep the money if you never need to use it.

However, if you struggle with financial discipline, this strategy will leave you in a difficult situation if your furry friend needs an expensive procedure. Pet insurance can provide you with the protection your pet needs even if you struggle with money.

Show your love with an emergency fund

Whether or not you decide to purchase pet insurance, remember that you'll have to pay upfront for any veterinary procedures. With insurance, you will get reimbursed for covered care, but you will still need to have access to funds to pay for Mittens' kidney stone removal or Rex's arthritis care at the time of care.

This means that one of the best ways you can protect your furry friends and avoid heartbreaking financial choices is to have an emergency fund. With or without pet insurance, set some money aside for the unexpected so you can enjoy your four-legged family members for years to come. (See also: 7 Easy Ways to Build an Emergency Fund From $0)

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

3 Money Arguments That Can Hurt Your Relationships

Emily Guy Birken — Mon, 04 Nov 2019 08:00:07 +0000

Money has a funny way of sparking a number of disagreements, arguments, and even lifelong grudge-matches. No two people are going to see eye-to-eye on every aspect of money management, and since finances can be such a volatile topic, any money misalignment between two people can cause a great deal of friction.

Unfortunately, money arguments can often be much harder to navigate than your garden-variety disagreements.

Here are some of the most common money arguments you may have to deal with, and how you can nip them in the bud before they interfere with your relationships. (See also: 4 Money Fights Married Couples Have (And How to Avoid Them))

Friends with expensive tastes

We've all had the experience of not feeling like you can keep up with high-rolling friends. They might propose going out to eat at Cafe Riche where cocktails are $25 each and the entrees don't even have prices listed — while you were hoping to share a pitcher of beer and a plate of nachos at the local dive bar where no one blinks when you pay with sofa-cushion change.

It can feel awkward to ask your monocle-wearing friends if you can change the venue, but going to their preferred spot to pick at the cheapest side salad on the menu is a recipe for resentment. Especially if they suggest splitting the bill evenly at the end of the night.

You may worry that you're in for a fight no matter what you do, since pointing out the differences in your spending habits can end with hurt feelings. However, it is possible to get ahead of these potential arguments before they become a problem.

To start, you could simply state out loud that you're working with a tighter budget than you'd like, so you're hoping to have fun on the cheap. If that doesn't feel comfortable — not all friends are at the "sharing their financial reality" level of intimacy, after all — then consider suggesting fun activities that are free or cheap, and simply bowing out of the reservations at Chateau du Moolah.

Finally, if you do end up tagging along to some of the expensive restaurants, ask for separate checks when you order, rather than wait for the awkward moment at the end of the meal. (See also: 5 Friend Types That Can Hurt Your Finances)

Misaligned spending priorities

A surefire path to an argument between married or cohabitating couples is when one person spends money on something the other person thinks is unnecessary. Whether the money is going toward education, a new gadget, groceries, or clothes, one person may feel that the other is being completely irrational. The spender might feel like the saver is either a buzzkill or unsupportive, while the saver may think the spender is irresponsible and doesn't care about their future.

This kind of argument can be easily averted with separate fun money funds. Making sure each person has their own fun money can allow them to make purchases the other might see as unnecessary, without it becoming an issue.

It gets much thornier when larger spending priorities are misaligned. If you and your partner cannot agree on how much to spend on things like education, career needs, food, or the like, then having separate funds cannot solve the problem.

This is when it makes sense to talk about the basis of your spending priorities. If you feel strongly that you should pay for your child's education and your spouse disagrees, taking the time to talk about what those actions would mean for each of you can help you figure out what you're each trying to accomplish. Knowing the why behind your spending priorities can help you find common ground that will lead to a compromise. (See also: 4 Ways Couples Can Tackle Money Goals Together)

Loaning money

One of the most awkward money issues you can face is when a friend or family member asks to borrow money. You may find yourself feeling anything from shame at being unable or unwilling to help financially, to resentment for being asked in the first place. And if you do decide to loan money, you may find yourself silently judging every financial choice they make while you wait for repayment, and wondering when and how you can ask for the money back.

The best way to nip arguments about loans in the bud is to set clear expectations in advance.

To start, that means saying no if you're unable to extend the loan. If you're not in a position to lend money to your loved one — whether it's your financial situation or your emotional situation — then you need to tell them that you can't help them that way. Don't say you can't afford to loan them money, since that can be construed as an invitation for your would-be borrower to question every purchase you make. You can make it clear that you do care about their situation by asking if there are any non-financial ways you can help.

If you do decide to loan them money, treat it like a formal loan. Tell your borrower that you require a written contract with the repayment terms spelled out, including what will happen in case of a missed payment. There are free templates for promissory notes available online that can help you draw up the contract. Having this in place will make it clear to your borrower that you're treating the loan as a serious transaction. These boundaries will also ensure that you preserve the relationship.

If your loved one feels affronted by these terms, remember that you don't need to manage their reaction to your financial requirements. They are the potential borrower, which means you, as the lender, get to set the terms of the loan.

Don't let money get in the way of your relationships

In a perfect world, money would never come between you and your loved ones. But in the real world, money disagreements can cause a great deal of resentment and distress. However, setting firm boundaries and talking openly about your priorities can help you keep money arguments from turning extremely ugly.

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Get Your Spouse on Board With Budgeting

Emily Guy Birken — Mon, 15 Jul 2019 08:00:06 +0000

Money is the most common cause of stress in relationships, according to a study conducted by The Harris Poll, and fights about finances are often cited as the reason for divorce. Couples struggle to get on the same page about their finances because they don't have a shared budget or regular conversations about money. Unfortunately, avoiding the budgeting discussion will do nothing to improve your money stress or your bottom line. It doesn't do much to avert fights about money, either.

But even if you know all this, your spouse may not be willing to embrace the joys of budgeting. In fact, just bringing up the subject could prompt your partner to leave a person-size hole in the wall as they make a hasty exit.

Here's how to bring a spouse on board to the necessities of budgeting if they're reluctant to try it. (See also: 4 Money Fights Married Couples Have (And How to Avoid Them))

Start by dreaming big

Budgeting is really all about figuring out how you can have the things you want most in life. But most people think of budgeting as deprivation and spreadsheets, which is no one's idea of fun.

So to get your unwilling spouse on board with budgeting, start by having conversations about what you both want in life. For instance, you might ask your partner what they would do with a million dollars. Not only will this conversation be fun — it's thrilling to think about these kinds of dreams — but it also provides a great jumping off point for starting a budget.

After your big dreams conversation, you could open a new savings account specifically for the trip to Egypt your spouse has always wanted and start putting aside $5 a week. This shows your spouse that you're taking their dreams seriously, and that a cruise up the Nile is more than just a fun fantasy. Once there's a real trip or other goals that you're working toward, it can be a lot easier to get a reluctant spouse excited about budgeting. (See also: 5 Steps to Successful Budgeting)

Work solo on a budget, but ask for input

In every marriage, there are tasks that one spouse takes over because the other spouse isn't interested in handling it. Maybe she handles all the lawn care while he does the grocery shopping and cooking. So there's nothing wrong with creating a budget by yourself if your spouse has made it clear that they're not interested.

However, even if your partner says they want nothing to do with budgeting, it's still very important to make them part of the process. Put together your monthly spending plan solo, but ask your partner for their opinion after you're done. Not only will this show them that you care about their input, but they may also have a different viewpoint of various spending categories. For instance, if your partner handles the cooking, they may recognize when you have over- or under-budgeted for grocery shopping.

In addition, you can potentially ask your spouse if there are any places to trim the fat that you hadn't thought of. If you've already started setting aside money for a big dream you share, this will make this request even more motivating, since your spouse will recognize that you're trying to reach that dream faster. (See also: 11 Budgeting Skills Everyone Should Master)

Let your budget work its magic

While budgeting is much easier if everyone is on board, you can still improve your bottom line and reduce your stress while working by yourself. Even if dreaming big and asking for input don't motivate your partner, seeing a budget actually work can make a big difference.

For instance, let's say you and your spouse find yourselves stressed and scrambling every six months when it comes time to pay for car insurance. Since you've started implementing your budget, you've decided to put aside $75 per month toward that bill. When it comes due, instead of feeling overwhelmed and panicked like you normally do, the amount of money you need is already set aside and ready.

Simply sharing this win with your spouse could do a lot to bring them around to the benefits of budgeting. This is especially true if you used to have arguments or stressful scenes every time this bill came due.

Celebrate the wins together

Pointing out the ways that things are improving is a great method for encouraging your spouse to take ownership of your budget. For instance, if you spend less on dining out because you're making more of an effort to cook at home, you could ask for their input on how to celebrate. You might say:

"Check out how much we saved this month by cooking at home! I'd like to put most of it toward our credit card debt, but let's think about how we can enjoy some of this saved money. What do you think we should spend it on?"

Sharing the benefits of your budget with your spouse, even if they haven't done the same budgeting work that you've put in, can help make it clear that your budget is a joint endeavor.

From reluctance to excitement

The majority of budgeting fears stem from a sense that it will be both boring and limiting. Bringing your spouse on board means showing them that budgeting offers both fun and freedom. Consistently focusing on big goals, doing the budgeting work yourself while always asking for input, letting the budget do its job, and sharing the wins can all help your foot-dragging spouse to embrace the budget.

In time, your spouse may even say those three little words everyone wants to hear from their sweetheart: "You were right."

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Is It Time to See a Marriage Counselor About Your Money Problems?

Ashley Eneriz — Mon, 17 Dec 2018 09:00:10 +0000

Can't stop bickering about money with your spouse? You're not alone. According to a 2016 study by Ameriprise, about three in 10 couples disagree on finances at least once a month, mostly about major purchases or spending habits.

It's no surprise that money is a touchy subject for many couples, especially when the budget gets tight or when you feel like you're drowning in debt. While it's common for money issues to arise even in the strongest marriages, there are some tell-tale signs when it might be time to seek counseling over financial problems. (See also: 8 Things I Learned About Money After Getting Married)

There's financial infidelity

Even though your partner might not cheat on you with another individual, financial infidelity can cause just as much pain and mistrust. Financial infidelity is when one partner makes significant money decisions without consulting the other. If one spouse has taken out a secret credit card, opened up a secret bank account, hides purchases or statements, or if cash goes missing, then these are all red flags.

This is bigger than a mere budgeting issue. There's a breach of trust and communication in your marriage, and it's wise to seek out the help of a marriage counselor to get to the root of the problem, and remedy the issue. (See also: 4 Money Challenges That Will Strengthen Every Relationship)

You can't stop arguing about money

That same Ameriprise study also found that the couples who fight over money admit to having other underlying issues. Perhaps one spouse is too uptight about the budget or goes off the handle for overspending or debt. Maybe one spouse feels too restricted and spends freely because they feel they have the right to do so.

Again, this is more than just a budget issue. There are internal struggles that both you and your spouse need to identify in yourselves and in each other. Perhaps one partner is constantly nagging about the budget because they grew up in poverty and debt. Maybe one partner spends recklessly because they don't feel valued or appreciated. A marriage counselor can help you both look past the money issues to see if there are deeper problems at hand. And once the trigger is discovered, it's easier to resolve the behaviors attached. (See also: How to Deal With a Partner Who Is Too Controlling With Money)

Your budget is affected by addiction

Addictions to gambling, shopping, drugs, or alcohol are serious issues and can also be major budget killers. If one spouse is fighting an addiction that impacts the finances, then it's best to come to an agreement on how to protect your shared money. This might mean that the spouse battling addiction is taken off all financial accounts until they have sought out treatment and therapy.

Not only does the partner with the addiction need to seek out individual therapy, but a few sessions with a marital counselor can help mend broken communication and hurt feelings that resulted from the addiction. With the help of a marriage counselor, you can determine how to help your spouse on their journey to recovery.

There is a possibility of financial abuse

Does your spouse have full control of the finances and won't let you have access to bank accounts or credit cards? Do you have to ask for an allowance or get permission to get a job in order to pay for your basic needs? There could be an issue with financial abuse, and if your spouse is willing to see a counselor, then let that be your first step. Perhaps your spouse is not fully aware that they are committing financial abuse, or that as a married couple, you have rights to all shared income.

Financial abuse is a serious issue, and it's considered a form of domestic abuse. You can contact the National Network to End Domestic Violence and the National Domestic Abuse Hotline if you feel you are a victim of financial abuse. These sites also list additional forms of financial abuse to watch out for, as well as several resources for anyone who feels stuck in a marriage like this. (See also: 5 Painless Ways to Manage Money With Your Partner)

Like this article? Pin it!

This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Baby Items With the Highest Resale Value

Ashley Eneriz — Thu, 13 Dec 2018 09:00:10 +0000

While the cost of baby gear, clothes, and diapers adds up quickly, there is also money to be made with baby items. For all three of my children, I've bought quality baby items second-hand for less than half of their retail price, used them, and then resold them for what I paid (or more!) once I was done using them. This method has allowed me to have everything on my baby list and lower the cost of having a baby.

You can find good quality baby items at thrift stores, garage sales, and consignment shops to make the most profit. Once you're done with an item, sell clothing on a site like eBay, and sell bigger items, like baby gear, on Craigslist, OfferUp, consignment shops, or local Facebook groups. Here are eight baby items with the highest resale value. (See also: What a New Baby Really Needs)

1. Name-brand baby clothes

I once found a baby Burberry outfit for $0.99 at the thrift store. I resold it within 24 hours for $75 on eBay. The right baby clothes can fetch a pretty penny. Look for popular brands like Baby Gap, Janie and Jack, Gymboree, and OshKosh for less than $1 a piece to resell. Selling a lot of the same brand in the same size can earn you more money than selling each piece separately. Boutique brands like Hanna Andersson, Naartjie, and Kickee Pants sell for even more when they're in sets and in excellent condition.

2. Halloween costumes

New parents are more likely to spend more money on their baby's first and second Halloween costumes than the ones that follow, because those are exciting ages to celebrate Halloween in something that's brand new and extremely cute.

If you purchased a costume for your baby from Gymboree, Gap, and Disney, you can resell them and make some decent cash. You can also look for these brands at thrift stores in October, and buy costumes for up to 90 percent off the week after Halloween in retail stores to resell. (See also: 15 Ways to Make Money on Halloween)

3. Strollers

Parents are willing to spend a lot of money on name-brand strollers, especially if they're double or triple strollers. Look for brands like Bugaboo, Baby Jogger, Britax, and BOB strollers, since they hold their resale value well. Potential sellers are very interested in the year a stroller was made, so be sure to stick to recent models to make an easy sale.

Along with strollers, stroller accessories are also a hot item. Brand-name trays and attachments are easy to store and can fetch a decent price if kept in good condition.

4. Specialty items

The key to cashing in on baby specialty items is to stay on top of baby trends. Specialty baby items like a DockATot baby lounger or Owlet baby monitor are at the top of many baby must-have lists at the moment. If you can find these items for 70 to 90 percent off their retail value, then you can make a quick profit.

5. High-end maternity items

Most maternity clothes and pillows aren't ideal for reselling. However, expensive name-brand maternity clothes, especially dresses and jeans, are easier to resell. You can determine which maternity brands and items sell best by searching the sold items on eBay. (See also: 7 Smart Ways to Save on Maternity Clothes)

6. Large baby gear

Most parents are desperate to sell large baby gear for next to nothing because it takes up too much space in their home or garage. You can find walkers, bouncers, high chairs, Bumbo floor seats, and more for $3–$5 each at yard sales and local online sales and flip them for $25–$60, depending on the quality of the item and brand.

7. Book sets

Baby books are easy to find for a quarter or two at yard sales or thrift shops. While you won't make a sizable profit on one book, you can make a good amount on a series of books. Some popular baby books to look for are Sandra Boynton board books, Dr. Seuss' board books, Dr. Seuss' hardcover books, and all of Eric Carle's books. Sell them in lots to earn the most money for them, and even pair them with matching stuffed animals or puppets if you can. (See also: 15 Unexpected Expenses of a New Baby)

8. Baby carriers

Baby carriers like Ergobaby, TwinGo, Tula, and the Solly Baby Wrap all resell well. These baby carriers in specialty designs can also earn more money than standard colors.

When looking for brand-name carriers, be sure to stay up-to-date on the newest models. For example, Ergobaby released a 360 carrier, so parents can carry their babies forward-facing safely. This means there is a greater demand for this model than Ergobaby's older models.

Like this article? Pin it!

6Save

This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

4 Questions to Ask Yourself Before Becoming a Caregiver

Ashley Eneriz — Wed, 10 Oct 2018 08:00:11 +0000

Becoming the caregiver for an aging loved one can be a rewarding, fulfilling experience. But it can also be very draining and demanding.

According to the National Alliance for Caregiving and AARP, nearly 44 million adults were family caregivers as of 2015. Most families take on caregiving to save money. With elder care facilities costing anywhere from $150 to $300 per day, it is easy to see why more families are opting to bring their aging loved ones into their home.

Even though becoming a caregiver might be cheaper than a nursing home, there are still some big questions to ask yourself before taking on this important role. (See also: 6 Financial Steps to Take When Your Aging Parents Move In)

Do I have the financial stability?

Caring for a loved one yourself is much more affordable than paying for respite care, but that doesn't mean it's free. It's important to consider all the possible costs involved, as well as if and how much the individual being cared for can contribute to the family's needs.

Here are a few caregiving expenses to consider:

Additional in-home nursing care or a home aide, which can cost an average $18-$19 an hour.
Possible renovations or additions to make your home more accessible.
The need for specialized equipment, such as shower seats, toilet bars, hospital beds, and wheelchair ramps.
Time off from your job. Even with reliable hourly nurses, life happens — and if a nurse is a no-show, you could be forced to call out from work.

If the person you're caring for is on Medicaid, some states allow for the individual to hire a family member to care for them. This means that you would get paid through Medicaid. Contact your state's Medicaid office for more information to begin this process. (See also: A Granny Pod May Be the Smartest Way to Care for an Elderly Parent)

Do I have the bandwidth?

Caring for an aging parent is not the same as caring for a child. You can't always include them in your daily errands or the family vacation. Even simple things like running to the grocery store or dropping kids off at school can be hindered if the individual you are caring for cannot be left alone. Consider how much time you really have to be a caregiver, especially if your loved one has frequent medical appointments they need transportation for.

Along with weighing the time costs of caregiving, think about how exhausting and emotionally taxing caregiving can be. Are you in a steady enough season of your life that allows you the time and patience to offer care? (See also: A Simple Guide to Planning For a Loved One's Long Term Care)

How will this affect the rest of my family?

Spending quality time with a loved one in their last years can be a special time for the whole family. However, individuals dealing with Alzheimer's or chronic pain have a harder time filtering their words and actions. Are you and your family prepared for the stress and potentially hurt feelings that may come with the situation?

You'll also need to take into account the needs of your spouse and children, if you have them. If your kids are young, will you have enough time and energy left to provide care for them as well? If you and your spouse are divided on the issue of bringing a loved one home, look into alternative choices. You don't want to jeopardize or even end your marriage over this. (See also: 9 Simple Acts of Self-Care for the Sandwich Generation)

Will I have help?

Not only do you need a strong emotional support system, but you will also need help to care for a loved one. Do you have other siblings or family members that are willing to step up and help, both financially and physically? Even young adult grandchildren, nieces, or nephews can sit with a loved one for a few hours a week to give you a much-needed break or time to run some errands.

If you can't find anyone to help in your caregiving tasks, do you have friends, family, or neighbors who are willing to offer a hand in other areas, such as dropping kids off at school or bringing over the occasional meal? It is important not to spread yourself too thin — your loved one is depending on you, so avoid burnout as much as possible.

Ultimately, choosing to become a loved one's caregiver is a very personal matter. Most people want to care for an aging parent or family member out of love and respect, but it's important to also consider how stressful caregiving can be on your wallet, family, and physical and mental health. (See also: How to Talk to Mom and Dad About Their Money)

Like this article? Pin it!

This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Keep Your Pets Safe During a Natural Disaster

Mikey Rox — Mon, 01 Oct 2018 08:00:17 +0000

There's not much time to react when disaster strikes, especially when it's a life or death situation. You want to get out safely and as soon as possible with your family, and that includes your pets.

Saving your pets comes with its own set of circumstances, however. For instance, many evacuation centers, should you be displaced there, don't allow pets. So what do you do? Here's the best course of action to protect your human and four-legged loved ones, should you need to evacuate your home quickly.

Create an emergency bag for your pet

You should have an emergency bag for yourself and your family, but you also should have a separate bag for your pet to ensure that everyone's needs are covered for at least the first few days following a disaster. Your pet's bag should include:

At least three days worth of food and water, plus portable bowls.
Vet records from the previous two years, including vaccinations, your pet's microchip number, medications, and any allergies. Be sure to have a supply of your pet's meds packed as well.
First-aid kit for pets; the Red Cross provides a comprehensive list of what you should have if you want to DIY (if you have a first aid kit already, there are several items that will also work for your pets), but you also can buy one from Amazon.
Muzzle if your animal has a tendency to be aggressive, especially when frightened.
Pet carrier.
Treats to calm your pets.
Photo of your pet to assist search and rescue should it go missing.
Collar with ID and rabies tags.
Your vet's phone number, in case of emergency.
Waste bags.
Extra litter and a spare litter box if you're a cat owner.

Take pet CPR and first-aid classes

In the event of a disaster, your dog or cat can break limbs or incur wounds with serious bleeding, and knowing how to respond appropriately in that moment can mean the difference between life and death.

"A good pet CPR class will teach you how to properly administer chest compressions and rescue breathing, create improvised splints for securing broken bones, how to perform basic wound care and stop life-threatening bleeding, and give you a list of items for your pet first aid kit," says Scott S. Topiol, clinical director at CPR Ready in Los Angeles. "The most complete emergency kit is useless if you're not able to provide emergency medical care to your cat or dog when seconds count." (See also: 7 Things You Need to Know About Pet Insurance)

Get your pet microchipped

Your pet should be microchipped when it's spayed or neutered, but if it hasn't been, have the chip put in your pet as soon as possible. A microchip is implanted between your pet's shoulders and is about the size of a grain of rice. The procedure itself is similar to a pet getting a vaccine. The information on the chip will go to a database after it's registered (an important step that some pet parents overlook) and scanned that will include your pet's number and profile, along with your contact information. You may never have to use the chip, but when a lost pet is brought into a vet's office or shelter, the first thing they do is scan for a microchip, so if your pet has one, there's a much better chance you'll be reunited should you get split up. (See also: 6 Pet Expenses You Should Never Skip)

Put a GPS tracker on your pet

A reliable pet GPS tracker also makes it possible to keep track of pets during an emergency. The lightweight, waterproof device attaches comfortably to your pet's collar or harness, and allows you to track your pet's location anywhere in the U.S. The battery on these typically lasts several days, providing an ample window to find your pet in the event you're separated during a disaster.

Affix a pet alert sticker to your window

In case of emergency, first-responders will be able to identify your household as one that may need pets rescued with a pet alert sticker placed where it can be clearly seen.

"Write down the number of pets inside your house and attach the static cling to a front window," says, "The Pet Lady" Dana Humphrey. "This critical information saves rescuers time when locating your pets. Make sure to update the number of pets listed [when your pet family grows]."

Have an exit strategy

Humphrey also suggests leaving your pet's carrier and emergency go bag by the door so you can access it quickly and easily in the event that you have to leave in a split second.

Never leave your pets behind

Your pet is a member of your family, and should be treated as such when you're evacuating. Don't leave your animal in vehicles, tethered, or crated without you or a family member.

"To help avoid having to make such a difficult choice, identify and create a list of places to evacuate with your pets in preparation, such as pet-friendly hotels or boarding facilities, and include contact information and addresses for each," adds former Bachelor Sean Lowe, who partnered with the Banfield Foundation following Hurricane Harvey to promote pet preparedness during disaster situations.

Include your pets in your will

So your pet is properly cared for when you pass away — in a disaster or otherwise — include those provisions in your will. Keep the information up-to-date with the names of each pet, the person who has agreed to care for the pet, and their contact information. If you want to provide that person money to care for the pet, state that in the will. (See also: 6 Reasons You Need to Include Pets in Your Will)

Look for an AKC Disaster Relief trailer

Following a natural disaster, AKC Disaster Relief trailers will have necessary items your pet may need if you weren't fully prepared to evacuate. Even if you were prepared but need to stock up on certain necessities, feel free to do so.

Check with your state branch of FEMA to see if there is one near you. If so, include the location of the trailer and contact information in your emergency go bag so you can get help if the time comes.

Like this article? Pin it!

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Best Family Friendly Road Trip Routes in the U.S.

Nick Wharton — Thu, 02 Aug 2018 08:00:15 +0000

Road-tripping is a great American tradition, and while some people are hesitant to hit the road with their family in tow, with the right planning, they can be an unforgettable way to spend a vacation. The magic ingredients for a great family road trip include short distances between stops, an abundance of awesome sights, and some captivating entertainment for the kids.

Whether you've got a single day, a whole week, or longer, there's a road trip out there for you and your family. With short drives between fun-filled activities and breathtaking scenery along these routes, you can be sure there won't be any, "Are we there yet?" from the back seat. (See also: How to Take a 7-Day Cross Country Road Trip for $350 or Less)

1. Acadia Park Loop

The Park Loop Road is a 27-mile route and the main road for navigating the stunning Acadia National Park on Maine's Mount Desert Island. Begin at the Hulls Cove Visitor Center and take your time navigating the largely one-way road and stop regularly at your leisure along the way. You'll find picturesque views of lakes, mountains, ocean scenery, and beaches, and the kids will love exploring these landscapes.

2. Utah's Scenic Byway Highway 12

Though the drive along this 122-mile road can be completed in just a few hours, it's a much better idea to dedicate a few days to it to really appreciate it. Also known as "A Journey Through Time Scenic Byway," it takes in the Bryce Canyon and Capitol Reef national parks, as well as the Escalante Petrified Forest, Kodachrome Basin, and Anasazi State Park along the way. There's an overwhelming amount to see and do. The road is also completely captivating, supplying a lookout over the surrounding rugged landscape, providing you with endless "I-spy" subject matter.

3. Mount Rushmore, Yellowstone, and the Grand Teton

This is a well-worn route that is usually completed over the span of a week, and packs a cultural punch like no other. Starting at the cliffside presidential statues of Mount Rushmore in South Dakota, you then continue onto the famous Yellowstone Park, which is spread out over Wyoming, Montana, and Idaho. Spend a couple of days here exploring the famous sites like Old Faithful, and spotting the abundant wildlife with the kids.

Then take the short nine-mile drive south to Grand Teton National Park, where you can spend another couple of days marveling at the fabulous mountain ranges and enjoying picturesque hikes. (See also: 10 Most Breathtaking Day Hikes in the U.S.)

4. Route 66

Possibly the best known of all American road trips, Route 66 is where you'll find everything from retro diners to vintage neon road signs. But despite this, or perhaps because of this, it's a fun and exciting trip to undertake. The entirety of the 2,448-mile route runs from Chicago to Santa Monica, and would be an ambitious undertaking for even the most organized of families.

However, there are no rules against picking a portion to enjoy, and a choice section is the beginning part in Illinois between Chicago and Springfield. It's around 200 miles and is packed with interesting stops along the way. Check out the Old Joliet Prison, various museums, and enjoy the obligatory diner meals along the way.(See also: These 15 Road Trip Snacks Make It All About the Journey)

5. Pacific Coast Highway

If your family loves the ocean, sand, and breathtaking coastal scenery, then California's Pacific Coast Highway provides all of those in abundance. Starting in San Francisco, this highway winds its way down the coast to San Diego, taking in numerous stops at Santa Cruz, Monterey, Big Sur, Malibu, Santa Monica, and many more coastal towns along the way.

Which ones you choose to stay in is optional, but it's easy to plan with just a couple of hours driving in between. Some of the best activities for kids on this route include whale watching in Monterey, enjoying the beachlife in Malibu, and hopping on the Ferris wheel at Santa Monica Pier. (See also: Best Credit Cards For Road Trips)

6. Miami to the Florida Keys

For families that love nothing more than getting active in the water with pursuits like fishing, snorkeling, diving, or boating, the Florida Keys is an ideal getaway. And there's no better way to take in this archipelago made up of more than 120 islands, than on a chilled out, sun-tinged road trip starting in Miami and ending in the southern tip of Key West.

Stop off to explore the Everglades before embarking on the rest of the 167-mile journey over three or four days, during which you'll cross the seemingly never-ending Seven Mile Bridge.

7. Blue Ridge Parkway

Running between the Shenandoah and the Great Smoky Mountains National Parks, the Blue Ridge Parkway carves a 469-mile path along the Blue Ridge section of the Appalachian Mountain Range. Most trips start with a day or two in Charlottesville and end in Asheville, both slightly off the parkway itself.

Along the route of this epic drive, you'll encounter the ominously named Mile High Swinging Bridge, the natural waterslide Sliding Rock, as well as plenty of opportunities for mesmerizing hikes. Five days is an ideal amount of time to complete this route and it's probably more suitable for slightly older kids. (See also: How to Save on National Park Visits in 2018)

8. Seward Highway

Punctuated by breathtaking panoramic vistas that include glaciers, snow-capped mountains, rivers, and wetlands, Seward Highway feels as if it's literally out of this world. The full 125-mile route from Anchorage to Seward gives you the opportunity to stop at numerous points along the way, including the Chugach National Forest, the glacial Kenai Lake, and Bear Creek.

This turns what could be a three-hour drive into an all day affair, but a nice end to the trip is to stay overnight in Seward and spend a day visiting Kenai Fjords National Park, where you can watch wales and enjoy dining on freshly caught fish.

9. Tribal Park Loop in Monument Valley

Even if by some chance you've never heard of Monument Valley, you'll no doubt recognize the scenery as it's been the backdrop in countless Hollywood movies over the years. From John Wayne westerns to Forrest Gump and Mission Impossible II, the dramatic sand towers of the striking, arid red landscapes have been captured on screen over and over again.

The Tribal Park Loop is just 17 miles long and typically takes around four hours to complete, but it's just part of the fun you can have in Monument Valley. Stay overnight and enjoy one of the many tours with a Navajo guide to sites you're unable to access alone, where your family can soak up the rich culture and history of this area. (See also: How to Have a Fun Family Road Trip Without Breaking Your Budget)

10. San Juan Skyway

The 230-mile long San Juan Skyway is a loop that takes you through some of the very best scenery Colorado has to offer, with hundreds of peaks, lakes, and forests surrounding your car as you go. You'll find many interesting towns along the way to stop and stay in, turning this into a three- or four-day excursion.

For example, Ouray boasts luscious hot springs and has been nicknamed the "Switzerland of the U.S." thanks to its alpine feel. Then there's Durango, where you can take a trip on a steam train and do some kayaking. Then take a trip to the historic Mesa Verde National Park, which showcases the fascinating cliff dwellings of the Ancestral Pueblo people, who used to live there.

Like this article? Pin it!

This article is from Nick Wharton of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Prepare for Unpaid Maternity Leave

Emily Guy Birken — Tue, 10 Jul 2018 08:00:10 +0000

Back in 2008, when my husband and I were newlyweds just starting to think about having children, I was still working as a high school English teacher. Another teacher in my department had a baby that year, and I was horrified to discover that our school district did not offer paid maternity leave. Instead, my friend had to save up all her sick days and personal days to equal the amount of time she wanted to take off.

Fast forward to 2010, when I was pregnant with our first child. I found it was exceedingly difficult to save up sick time and personal time, what with all of the prenatal appointments I needed to go to, only some of which I was able to schedule for after school.

Though it's been eight years since I had my first baby, the options available for paid maternity leave are no better than they were a decade ago. Women are still stuck either returning to work long before they have fully physically recovered, or they must take unpaid time off after their babies are born.

While it's a crying shame that new parents are in this tough situation in the United States, it's still on individual mothers to figure out a way to pay for maternity leave. Here is what you need to know about preparing for unpaid maternity leave. (See also: 5 Financial Reasons Paid Parental Leave Is Essential for Moms and Dads)

Understanding FMLA

The Family and Medical Leave Act of 1993 offers new parents (mothers and fathers) up to 12 weeks of unpaid leave to care for a newborn or newly adopted child. FMLA also allows caregivers to take the same amount of time off to help out with aging parents or other family members with a medical need.

What this law does is ensure that your job or an equivalent job will be held for you during your time away to care for a new baby. However, ensuring that you will not be fired for taking maternity leave is the barest minimum of job protection — and fewer people are covered by FMLA than you might realize.

Workers only qualify for FMLA leave if they have worked for the company for more than 12 months, have logged at least 1,250 hours in the past year, and are employed at a location where their company has 50 or more staffers within 75 miles. Only 60 percent of employees meet the criteria and eligibility for leave under FMLA regulations.

Expecting mothers need to make sure they understand whether or not they can even take FMLA leave based on these criteria. Your human resources department can help you determine whether or not your leave will be covered by FMLA.

Even if you are not covered by FMLA, there is no need to panic. Many employers will be happy to let you take the time you need and hold your job for you, even if you are not covered by FMLA. Talk with your employer so you know what to expect. (See also: The 29 Companies With the Best Maternity Benefits)

Paying for maternity leave

Few people can afford to take 12 weeks off work without pay, so planning ahead for an extended leave can mean the difference between having time to bond with your baby and having to get back to work before you're ready. Here are a few ways you can afford your maternity leave. (See also: 8 Money Moves to Make When You Find Out You're Pregnant)

1. Short-term disability insurance

If you know that you plan to get pregnant within the next couple of years, short-term disability insurance can provide you with the financial cushion you need during your maternity leave. Pregnancy and postpartum recovery are common "disabilities" that can be covered by such insurance. Of course, the catch with this kind of insurance is the fact that you have to sign up for it before you get pregnant, which can make this option a non-starter for anyone who has an unplanned pregnancy.

If you are able to take advantage of short-term disability insurance, you can typically expect your disability payments to begin as of the day you deliver, although you may have to wait for a short period of time (known as the elimination period) before receiving payments. The insurance will generally cover between six and eight weeks of pay at some portion of your regular salary.

You will have to pay the premiums for your short-term disability policy, so factor that in to your pre-baby budget.

2. Save up your paid time off

If your employer allows you to roll over sick days, personal days, and vacation days from one year to the next, saving up your paid time off can be one of the best ways to ensure that you keep your regular paycheck coming while you're at home with the baby.

For instance, if you receive 15 vacation days, five sick days, and two personal days each year, saving them up for two years can provide you with 44 paid days off — or the equivalent of nearly nine weeks.

One important caveat to this plan is the fact that you will want to save some sick days or vacation days for after the baby arrives. There will be times when your little one is too sick to go to day care, and you will have to use a sick day or take an unpaid day off to stay home with baby.

3. Take as much overtime as you can

If your employer offers overtime, you can try to volunteer for as much as you can while you're preparing for the baby. You can either bank the extra money in a savings account you'll live off while you are on maternity leave, or you can ask to use the overtime as flex time, so that your extra hours now will give you paid time off later.

4. Reduce your retirement contributions

Though saving money for retirement is very important, it's better to reduce (or eliminate) your retirement contributions in order to pay for your maternity leave than tap your retirement accounts if you run out of money. For this strategy, either reduce or eliminate the amount of money you send to your retirement fund each paycheck, and instead put that money aside in a savings account to use for living expenses while you are on leave. Once you get back to work, however, make sure you put your retirement contributions back to their previous level. (See also: 5 Times It's Okay to Delay Retirement Savings)

5. Take out a small personal loan

If you have good credit and feel comfortable taking on a little more debt, taking out a personal loan could be a way to bridge the income gap while you are on maternity leave. Such a loan could replace your income while you are on leave, and you could plan to repay the loan once you have returned to work.

This is a potentially risky option, however, if there is any possibility your employer will not hold your job for you while you are on leave. In addition, make sure the repayment plan is one you can easily afford once you are back to work. You would hate to have the stress of paying off your loan on top of the other stresses of new parenthood. (See also: 10 Things You Need to Know Before Taking Out a Personal Loan)

Making time for maternal bonding

Until our society as a whole decides to provide maternity leave across the board, it will be up to individual families to find the money to afford time off work for recovery and bonding. Though it can be an uphill battle to figure out how to afford your maternity leave, it is possible for new moms to find the money they need to afford their leave.

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

9 Essential Personal Finance Skills to Teach Your Kid Before They Move Out

Tim Lemke — Fri, 06 Jul 2018 09:00:10 +0000

Your child is on the verge of moving out and living on their own. Are they prepared?

Arming them with the right personal finance knowledge will give them a strong foundation to go and achieve many of their life goals. If their understanding of personal finance is lacking, they could begin their independent life on the wrong foot (and they may even come back home).

Consider these ways that you can help your child build a base of financial knowledge before they move out.

1. Show them how to budget

Perhaps the most important personal finance skill is consistently spending less than you earn. There are a million different ways to budget, and whatever works for you may not work for your child. But encourage them to develop a system to track and categorize spending and then compare those expenses to their income. Of course they'll need to account for housing, food, and utilities but also let them know it's OK to include "fun money" in their budget. It will help them stay motivated to stick to their budget. (See also: How to Help Your Kid Build Their First Budget)

2. Teach them how retirement plans work

If your child is moving out, they likely have some earned income. That means they can start contributing to a Roth individual retirement account. They may scoff at the notion of saving for retirement so early, but if you help them open a Roth IRA and demonstrate how much money they can accrue over time, they'll get on board. Urge them to save as much as they can each month, invest in simple things like index funds, and simply watch their account balance grow over time through compounding.

If they have a 401(k) plan through an employer, take time to review the plan document with them and encourage them to contribute as much as they can. Be sure to explain the advantages of getting a company match on contributions, if one is offered. (See also: 11 Basic Questions About Retirement Saving Everyone Should Ask)

3. Explain bank interest rates

Chances are, your child already has a savings account. But it's still helpful to explain that they don't necessarily need to put their money in the first bank they see. Show them how interest rates can vary, and that it's OK to shop around for the best rates so they can earn a little extra money. Explain terms like APR and APY, and the factors that impact whether rates go up or down.

Also outline the pros and cons of placing money in certificates of deposit. These days, it's also helpful to explain that while interest rates are rising, they're still quite low, and that it might make sense to invest some funds in ways that generate a higher return than savings account interest. (See also: 12 Places to Keep Your Money Safe — And Growing)

4. Tell them about bank fees

Once your child understands how bank interest rates work, they'll need to know about the tendency banks have to charge fees to account holders. These fees could be for anything from low balances to the use of paper checks. Tell your child how they can avoid these fees by researching the best bank accounts and reading the fine print. Let your kids know that if a bank is charging too many fees, it's OK to switch to another bank that doesn't. (See also: Are You Paying These 6 Unfair Banking Fees?)

5. Teach them the pros and cons of credit cards

Credit cards can help a person establish credit, and that's important when you are starting out. And some credit cards offer nice benefits, such as cash back on purchases or travel rewards miles.

You can help your kid apply for a card, but it should come with a series of warnings. Young people must know that credit card balances should be paid off in full each month whenever possible. Show your child that credit card interest rates can be exorbitant, and that high balances can lead to a debt spiral from which they may never escape. (See also: How to Get Your First Credit Card and Build Credit)

6. Outline the pain of debt

Arguably the most important lesson you can teach your children before they leave the nest is that debt is not a good thing. Take time to explain the basics of borrowing so they understand how expenses can continue to increase if debt is not paid off. Show them calculations with interest rates for credit cards, auto loans, student loans, personal loans, and mortgages. Give them an understanding of debt-to-income ratios, and what that means in the context of their financial well-being. (See also: 8 Common Causes of Debt — And How to Avoid Them)

7. Explain the concept of net worth

When your child leaves home, they may be focused on finding a job that pays a high income. That's fine, but it's important for them to understand that income alone is not what generates financial security. It's more crucial to acquire assets that increase in value, while eschewing things that will decrease in value or be a drain on your finances.

This means saving money and investing it. It means avoiding debt. It means purchasing a home instead of renting, if possible. Your net worth — that is, the total value of your assets minus your debts — is the true indicator of your financial well-being. (See also: 6 Money Moves to Make If Your Net Worth Is Negative)

8. Urge them to shop for value

Saving money isn't always about spending as little as possible. It's also about spending your money wisely and getting the most bang for your buck. For example, if your child needs to purchase a refrigerator for their apartment, convey to them that they should seek out the best quality model at a price that fits their budget.

Shopping for value involves understanding quality and longevity of products, and knowing what features matter and which don't. It also involves doing extensive research of products and prices before you buy. Shopping for value is a skill that can be learned, and one that could save your child a considerable amount of money over time. (See also: How to Shop With Purpose — And Save More Money)

9. Teach them basic car maintenance

You don't need to teach your child how to replace a catalytic converter, but it helps if they have a decent foundation of car knowledge. Teach them how to put air in a tire and change the tire. Demonstrate how to swap out a headlight bulb and replace a hubcap. Urge them to read the car's manual and learn what all of those warning lights mean. Get them in the habit of changing the oil every few thousand miles.

Finally, teach them how to research the cost of car repairs, so they don't get ripped off at the mechanic. Your child won't be able to avoid car repair expenses, but they'll know enough to avoid getting stranded on the side of the road. Moreover, these basic maintenance efforts could help prevent the need for a major repair later. (See also: Bookmark This: Save Money With an Easy to Follow Car Maintenance Checklist)

Like this article? Pin it!

This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Smart Money Moves Your Kids Can Make Over Summer Vacation

Emily Guy Birken — Thu, 05 Jul 2018 09:00:11 +0000

Summer vacation when you're a kid means endless days of bike riding, swimming, playing video games, and fighting over who gets the last purple Popsicle in the freezer.

It's not nearly as idyllic for Mom and Dad. Not only do parents need to line up (and pay for) alternate child care for the kids during the summer months, but they also have to worry about Junior and Sis spending their allowances on Dilly bars and Star Wars sunglasses that break immediately, only to ask for more money to go to the movies every weekend.

That's why summer is a perfect opportunity to teach your kids about money management. Not only will these money moves help to improve your kids' money skills, but it will also help them to retain the math and reading skills they might not otherwise be practicing while school is out.

Here are five great money activities your kids can enjoy this summer vacation.

1. Lemonade stand

There's a reason why this classic introduction to entrepreneurship is a perennial favorite. Encouraging your kids to set up a lemonade stand gives them an opportunity to think about all the aspects of making a business successful, including venue, startup costs, pricing, advertisement, and signage.

Your kids will learn all sorts of important lessons about economics through this summer project. For instance, they can charge a higher price for homemade lemonade made from real lemons as compared to lemonade mixed from a powder — but they have to do more work to make the more expensive product. Is the increased price worth the increased work for these budding business owners?

In addition, your kids can learn that choosing a popular spot on a hot day will increase their sales, as opposed to setting up shop on a quiet street on a cooler day.

The one caveat about lemonade stands is the potential legal aspect of this kind of business. There are laws in many parts of the country that prohibit these kinds of sidewalk businesses without a permit, even when such businesses are run by adorable 10-year-olds. Help your child research the local laws before she sets up shop.

2. Investment club

Have your older kids form an investment club together. This club will invest a hypothetical $1,000 in whatever stocks the kids decide on together. Encourage them to choose stocks from companies that they already have a relationship with, like McDonald's, Facebook, Disney, Coca-Cola, Nike, Apple, or Microsoft. Remind them of what Warren Buffett says: Invest in what you understand. Their understanding of these brands will make them better investors than if they try to just pick something they are unfamiliar with.

Once they have "invested" their money, ask them to provide a weekly report on how their investments are doing. They will need to track the prices of their stocks and record those prices, which means they will learn how to look up stock information online. They can even make charts plotting the movement of their stock choices, so that they can have a good visualization of what their money is doing.

This project will help to encourage them to think of investing as something that anyone can do, even a kid, and can get them excited about potentially investing some of their real allowance money rather than spending it on Legos. (See also: 10 Investing Lessons You Must Teach Your Kids)

3. Grocery store math

When you take your child with you to the grocery store, put him in charge of keeping track of how much you have spent. For each item that you place in the cart, ask your child to write down the cost, which he will add to a running tally. Not only will this help him practice his math skills, but it will also give him an opportunity to do price comparisons, learn how pricing works for loose items like produce, and offer you a chance to talk about sales tax and how that affects your total at the cash register. (See also: 6 Fun Games That Teach Your Kids About Money)

4. Create a practice budget

One way of doing a practice budget is with a toy catalog. If you can't find one in print, check online, as many retailers upload versions of their toy catalog digitally. Tell your kids they have $50 to "spend" in the catalog, and let them go through the pages circling or noting what they are interested in. Then, ask them to add up the costs of all the items they circled to see if they stayed within their budget. Depending on the age of your kids, this can be a tough exercise, since they may be overwhelmed with how much they want.

For younger kids, another practice budget exercise is to take them to a dollar store and give them $5 each to spend. While they will be able to pick out at least a few items each, they will need to do some important thinking about which things they want most. This will help them understand opportunity cost — buying one item means you have less money available to buy a different item.

Similarly, if you have an older kid who loves video games that offer in-app purchase upgrades, ask them to list the cost of all the upgrades they want. These types of purchases tend to be low dollar amounts, but they add up quickly — and asking your kid to do the math on how much all of the character upgrades will cost can be very eye-opening. (See also: How to Help Your Kid Build Their First Budget)

5. Save up for a trip to a theme park

Going to an amusement park is a great family outing, but such day trips can be expensive. Between the price of tickets, the cost for things like ride photos and other souvenirs, extras like face painting, and the high markup on food, a family can drop quite a lot of money in a single day at a theme park.

Have your kids plan the budget for your trip to their favorite amusement park. Ask them to research how much entrance tickets cost and if there are ways to lower those costs. For instance, there are often reduced rates for purchasing tickets online as compared to at the gate, and amusement parks will often pair up with major retailers or brands to offer promo codes to reduce rates even further.

Let the kids know how much of the trip you will pay for, and ask them to cover any extras. For instance, you might offer to pay for half the cost of the admission, and will help them pack food for the trip. The kids will have to cover the rest of the admission price, as well as any extras or food purchased on site. This will help them figure out the best ways to budget, and determine whether having Dippin' Dots or a souvenir from the park is more important to them. (See also: 8 Affordable Amusement Parks That Are Just as Fun As Disney)

It's summertime, and the money lessons are easy

This summer, help your kids learn how to make responsible choices with money. These fun activities will ensure they go back to school in the fall with a clearer understanding of economics, budgeting, wants versus needs, and money management.

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Should You Get Life Insurance for Your Kids?

Emily Guy Birken — Thu, 21 Jun 2018 09:00:27 +0000

My father was a financial planner, and he got his start by selling insurance. That meant Dad had some very strong opinions about insurance in general, and life insurance in particular. He was not shy about sharing those opinions with a captive audience — aka, his daughter.

Even though I heard Dad opine (and rant!) on any number of finance-related subjects, the viewpoint that stuck with me most was Dad's stance on life insurance for children.

"There is no reason whatsoever to ever buy such a product," he told me on more than one occasion. "Life insurance is for income replacement. Policies for children are morbid."

While part of Dad's objection to life insurance for kids stemmed from the exploitative practices you can find among disreputable insurance salespeople, he was also quick to admit that his own superstitions about tempting your children's fate added to his distaste for the products.

Though dear old Dad was right more often than not, I have come to see much more value in children's life insurance than he did. Here are some compelling things to consider before purchasing life insurance for your child. (See also: Term vs Whole Life Insurance: Here's How to Choose)

Funeral expenses

The average funeral in America costs about $10,000. Financial experts (including my father) might say that parents needing to pay such expenses for a child should use their savings to do so. But considering the fact that half of all Americans couldn't come up with $400 in an emergency, the expert opinion may not match most people's financial reality.

My dad did have an answer to this objection, however. There are many funeral homes that will offer their services free of charge for families who cannot afford the burial costs of losing a child.

That means parents who are considering life insurance for their children just because of the potential cost of final expenses might not actually need a policy. Not only is it unlikely that you will ever need the insurance payout, since it's relatively rare for children to die, but you will likely be able to find financial help or free-of-cost services if the worst should happen.

Income replacement

Dad made it clear that he believed life insurance was for income replacement only. So unless you're raising a child star, there is no reason to purchase a policy for your kid. (And you didn't want to get Dad started on parents who pushed their kids into show business.)

However, Dad's view didn't consider whose income will need to be replaced after the death of a child. The majority of children do not have an income, of course — but it's important to remember the very real cost of grief. Heartbroken parents may find themselves paralyzed by their grief and unable to work.

Having a financial cushion can help keep a family afloat during a terrible time when work may be the last thing on anyone's mind. If you absolutely have to bring in every cent of your paycheck to manage your family's finances, a life insurance policy for your kids could potentially protect you all from the devastating costs of grief.

Coverage protection

Something that never came up in Dad's comments about children's life insurance was the importance of future insurability. While a child's life insurance policy is generally much smaller than those purchased by adults, they will often include a rider known as the guaranteed additional purchase (GAP) that a child can rely on once he or she reaches adulthood. This GAP rider will allow the child to purchase additional coverage as an adult without medical questions or underwriting.

I have seen firsthand just how important such coverage protection can be. My best friend's son was diagnosed with autism at 15 months of age. My friend had not purchased a life insurance policy for her baby, even though she had intended to do so.

Unfortunately, this means her son is now permanently ineligible for life insurance because of his autism diagnosis. Once he reaches adulthood, he will not be able to purchase a policy for himself. And autism is only one of several juvenile medical diagnoses — including diabetes, severe asthma, cancer, or a heart condition — that can render a child ineligible for life insurance in the future.

This is why my friend now recommends that every parent buy life insurance for their children when they are still babies. At the very least, it will allow the child to have coverage throughout his or her life, no matter what medical surprises may be in store.

Don't fall for the "investment" promises

Many children's life insurance policies provide an option to cash out the policy once the child reaches adulthood. There is nothing wrong with this — unless you are worried your kids will cash out the policy and go on a shopping binge — but it is hardly the "investment" that it is often touted to be. (In fact, you could make Dad go purple with outrage just by mentioning it.)

For instance, the Gerber Grow-Up Plan, one of the most commonly advertised life insurance products for children, promises that "each time you make a monthly premium payment for your [policy], Gerber Life sets aside a small amount of money. Over time, this becomes the cash value of your policy. It represents how much your policy is worth at any given point in time."

However, the cash value can potentially be less than the amount you have paid in premiums, since only a portion of your premiums are set aside. And the cash value will certainly be less than you would have earned through a traditional investment had you invested the premiums instead.

While there are legitimate reasons for choosing a life insurance policy for your child, the investment strategy is not one of them.

Buying life insurance for your kids is a personal decision

Despite my about-face on children's life insurance, my two sons are still uninsured. Dad's superstition about tempting fate has stuck with me — and my husband and I are lucky enough to be in a financial situation where we could handle the monetary costs if something terrible should happen. My only big concern is if either of my kids receive a diagnosis that will make them ineligible for future insurance. But we have decided to live with that risk.

It's important that all parents think through the full consequences of buying or not buying life insurance for their children. It is a distressing train of thought, but a necessary one. No matter what you choose, a well-thought out decision will lead you to what's best for your family.

Like this article? Pin it!

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: