Financial Coach for Kids and Teens

Save the Planet, Save Money – one piece of clothing at a time!

2012-02-22T23:39:00.000-05:00

While preparing for my Money Smart afterschool workshops, I was researching some on-line examples of bartering, recycling, and auctions such as: Freecycle, Swap.com, and the big one you all know, eBay. When I stumbled across a website called ThredUp. Their tagline is “Where Mom’s like you buy, sell and share children’s clothing, toys and books online.”

I love this idea! First, it’s green – by passing on your children’s outgrown clothing and toys to others. Second, it’s a money saver for the buyer – you can purchase a box of clothes for as little as $9 + shipping. And, finally, for the seller, you can make a few bucks back on those expensive clothes that your children seem to outgrown before you can cut the tag off.

Over the years, I have used a local consignment shop for my own kids out grown clothing, which I would recommend if you are not into the on-line shopping experience.

My caveat: I have not used the web site as my “kids” are now teens and ThredUp only caters to 3 mo to size 20. But if I was looking to buy or sell my second hand children’s clothing, I would take a look at ThredUp and their Facebook page.

A great money lesson for you and your kids: you don’t always have to buy NEW, sometimes second hand saves you money, time…and the planet!

Have you heard about my personal mission?

2012-02-13T17:41:00.000-05:00

It is my personal mission to help as many kids and teens as possible to grow up to be financially healthy adults.

To accomplish my mission, I need your help! Here are 3 simple steps:

1. Please Take My Survey. It only has 5 questions and your answers will be kept confidential. I will use your feedback to help me develop more great programs for Financial Coach for Kids and Teens.

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3. Please share my blog with your friends and family. You can LIKE my Facebook fan page here. And I would love for you to comment on my weekly posts with your own stories or tips. We can all learn from each other.

Thanks for helping me make my personal mission a reality.

Enseignez la patience!

2012-02-06T22:26:00.000-05:00

Did you see the article in the WSJ titled “Why French Parents are Superior” based on a new book “Bringing Up Bébé: One American Mother Discovers the Wisdom of French Parenting”? I am sure that between this new book and “The Battle Hymn of the Tiger Mother,” we poor American parents are feeling a little put upon.

I am nowhere close to being a parenting expert (just ask my two teens), but I am always interested to add a new skill to my parenting tool kit. Or in this case, I was able to confirm an important life skill that just happens to relate to learning to be financially responsible:

Teach your children to have patience.

In the article, the author spoke about the importance of your children learning patience. Also known as: delayed gratification. (She even referenced the famous Marshmallow Experiment…see my blog entry). This is one of the most important money skills for your children to master. It is difficult to learn when we live in a world with instant everything from text messaging to fast food to WI-FI access everywhere.

How will our children learn to be patient? When it comes to money, they will need to have patience so they won’t have to live with bad money habits. For example, how many of us have purchased something we really couldn’t afford but went ahead and bought it anyway on credit. We bought now, and paid for it later.

A better money habit is to set a goal, save for it, and then purchase. And when it comes to investing your money, watching your money grow takes a lot of patience. Compounding interest works like magic, but it doesn’t grow over night. It takes time. Time can work for you, or against you. Invest now, watch your money grow. Or live beyond your means now, watch your future become more expensive as inflation takes over.

The best way for your children to learn the money skills they need to be financially healthy adults is for you to start an Allowance Program and talk about money in everyday situations.

And, maybe a little French lesson is not so bad after all: Enseignez à votre patience de l'argent enfants.

Translation: Teach your kids money patience.

Teen Taxes – Questions to Ask

2012-02-01T16:14:00.001-05:00

Disclaimer – Everyone’s tax situation is different! This information should be used for your own reading and not for professional advice. Please consult your own financial advisors before making any financial decisions.

So, your teen had an amazing summer job and earned some nice spending money plus was able to add to their savings account. Sweet. However, it’s that time of year…time to pay Uncle Sam.

On your teen’s pay stub, they most likely saw the following taxes taken out of their hard-earned pay (welcome to the adult world!):

· Federal Tax withholding

· State Tax withholding

· Medicare

· Social Security

· Disability (SUI, SDI, FLI)

By the end of Jan, your teen should receive a W-2 from their summer employer and a 1099-INT from their bank for interest earned on their savings account. Explain to them each form and show them how to keep their records organized and ready to use for filing their taxes as needed.

NOTE: If you have other savings or brokerage accounts for your teen (i.e. money you put aside for college, etc) then you will get 1099s on those accounts too. Reminder: Custodial accounts are for the benefit of a minor child and managed by a parent or another designated custodian. For example, in New Jersey, custodial accounts are established under New Jersey’s Uniform Transfer to Minors Act (UTMA) and the custodian controls the account until the child reaches the “age of majority” or age 21 in NJ. This means that the account reverts to your child as sole owner and they can do whatever they want with the money in the account. (All the more reason to teach good money skills at a young age!!)

OK, back to the tax forms. What should your teen do about filing taxes?

The answer is…it really does depend on your individual situation. With that said, here is some general information that you should be aware of so you can ask your financial advisors the right questions:

· If your teen has W-2 income and taxes were withheld yet their income is such that they didn’t have to pay the taxes, then the only way to get the tax withholding back is to file a tax return.

· Your teen’s income is taxed at their own income tax rate (which is most likely lower than your tax rate).

· Your teen’s investment income is governed by a dual-tax structure for investment accounts (CDs, savings, brokerage). The first $950 of interest, dividends or capital gains is tax-free. The next $950 is taxed at your teen’s tax rate. Anything over $1,900 is then taxed at the parent’s top marginal tax rate rather than the 15% capital gains rate.

· In some cases, it may be better for you to file your teen’s investment income on your tax return and, in other cases, your teen may pay less taxes if they file separately. There are two forms to review (Form 8615 & Form 8814) that can help you and your tax preparer decide which way to file to make sure that you are paying the lowest possible tax on your teen’s investment income.

· Taxes get more complicated (as if that’s even possible!) for parents who are separated, unmarried, treated as unmarried for tax-filing purposes or remarried. Definitely see your financial advisor and ask lots of questions!

· IRA Publications for your reference:

o IRS Publication 17 = Your Federal Income Tax - Tax Guide 2011

o IRS Publication 929 = Tax Rules for Children and Dependents (Tax year 2011)

You should confirm all the above information with your tax preparer and financial advisors – they are your best resource.

Unfortunately, taxes are here to stay and are not getting any easier to understand. Use this opportunity to teach your teens to search out resources, ask the right questions and get professional financial help when you need it.

How to Win a Negotiation with your Teen

2012-01-22T16:07:00.000-05:00

It’s a new year and that means a new Allowance Contract.

I am in the heat of negotiations with my two teens on what new budget items will be their responsibility. For example, my son loves to get his haircut…monthly! I am now ready for him to take on the financial responsibility of paying for his buzz cuts.

Here’s how the conversation went:

“OK, you are going to have haircuts in your budget this year,” I told my son.

“What?! That’s not fair! I need to get my hair cut,” he complained.

“Yes, I agree that getting your hair cut is a need. However, you like to get your hair cut more often than the average person,” I said.

“How am I going to pay for my hair cuts?” he asked. “My allowance is not enough to pay for everything.”

“That’s right,” I said. “Your allowance may have to be increased to include a reasonable amount of haircuts. If you decide that you want more haircuts, you’ll have to adjust your spending on other items to pay for an extra haircut.”

You might think it’s not right to have my son pay for his hair cuts. However, I want him to learn a few things:

· Paying for Needs – up to this point, he’s really only spent his allowance on things he wants (games, toys, sports). This will teach him to spend on his needs first, then he can spend the remainder on his wants. NOTE: He always puts aside his savings first.

· Pace Spending/Trade-offs – he was getting his hair buzzed whenever the mood strikes, now he’ll have to cut back on a game purchase if he wants an extra haircut or pace out his hair cuts.

· Tipping – he’ll learn how to calculate a service tip!

If you want to be successful when negotiating with your teen on their allowance budget, you should consider the following:

1. Reasonable Budget Items: decide on what items make sense for them to pay for based on your family values and the cost of the item. For example, my daughter is responsible for paying for gas for the car, but not her car insurance (until her summer job income can cover it).

2. Teachable Lessons: decide on what money skill you are trying to teach your kids. Explain to your kids why they will be responsible for each budget item.

3. Save First: don’t forget to teach them to save first. Have your kids write down their longer-term goals (i.e. new cell phone, computer, car, college) and put aside a portion of their allowance into savings for their goals.

If you follow these tips, you should be able to negotiate an Allowance Contract that you both can live with.

And…if all else fails, you can use the old standby: “Because I’m the parent, that’s why.”

Talking about Money

2012-01-10T00:47:00.000-05:00

Happy New Year! It’s that time of year to make your annual resolutions. Here’s one to add to your list:

I will talk to my children about money.

It might sound like a simple resolution but it turns out that parents don’t talk enough with their children about money. It doesn’t have to be stressful. The idea is to use every day events to open the discussion about money.

For example, if your 5 year old tells you to “just go to that machine and get some money,” it’s a great time to explain the basics of banking. “Mom and Dad work for money. We take our money to the bank for them to keep our money safe. We go to the bank when we need to get our money to pay our bills or buy things at the store.“

And, if your teen asks why “everyone else goes on a ski vacation over winter break except us,” it’s a great time to discuss the family budget. “Mom and Dad work for money and we have to plan how the family will spend our limited funds. First we have to pay for the house, food, car, clothing, education, as well as save for later, such as retirement, before we can plan our vacation budget.”

By talking about money using every day activities, you will be creating an open dialogue with your kids and teens so they are comfortable asking you questions about money (and maybe more!) This gives you the opportunity to “teach” them good money habits that they can use to grow into a financially independent adult. Now that’s a great New Year’s Resolution!

Finance Fridays - Monthly Workshops for Teens

2011-12-09T00:13:00.000-05:00

Finance Fridays: Personal Finance for Teens

This monthly series will introduce high school students to important basic personal finance concepts they will need to manage their money wisely now and in the future. Each session will have interactive examples and references for further study.

Session 1: Goals and Planning

Topics discussed will include the importance of setting goals, planning and setting a budget.

Session 2: Spending and Sharing

Topics discussed will include income sources such as allowance, part-time and summer jobs, learning to spend wisely, and how to incorporate your values to give back to your community.

Session 3: Saving and Investing

Topics discussed will include financial instruments such as checking /savings accounts, ATM/Debit cards, and growing your money with investments such as Roth IRA accounts, stocks, bonds and mutual funds.

Session 4: Using Credit Wisely and Insurance

Topics discussed will include learning about building good credit, avoiding identity theft, and a basic understanding of the different types of insurance and why you need it.

Grades: High School, 9^th to 12^th grades

Dates: 1/13, 2/10, 3/9, 4/13

Time: 4:00 to 5:00 pm

Location: Anderson Tutoring Center, 18 Bank St, Suite 101, Summit NJ

Fee: $250

To Register or For More Information

GGCVentures@gmail.com

Financial Empowerment for Teen Girls

2011-12-04T20:43:00.000-05:00

Do you want your teen daughter to be more financially independent? Then sign her up for the Smart Girls Make Savvy Women workshop series starting in Jan 2012. She'll learn the importance of setting goals, budgeting, investing and using credit wisely.

Wed, January 18, 2012 ~ S.M.A.R.T. Goals for Girls

This one-hour workshop will teach you how to set goals that are specific, measurable, attainable, reachable, and time limited. You will learn how important having clear goals are to your long-term success and happiness.

Wed, February 8, 2012 ~ Budgets 101

This one-hour workshop will have you build a personalized budget for now and for the future. You will learn not to fear a “budget” but instead see that having a spending plan will set you on the path to meeting your goals and dreams.

Wed, March 14, 2012 ~ Invest like a Girl

This one-hour workshop will teach you how to invest to meet your goals. You will learn the reasons why women are great investors contrary to the perception that finance is a man’s world. This workshop will bust that myth!

Wed, April 11, 2012 ~ Using Credit Wisely

This one-hour workshop will teach you all about credit. You will learn why you need credit, how to use credit wisely, how to analyze credit card offers and most importantly how to avoid the pitfalls of building up debt.

Ages: High School - ages 15 to 18
Fee: Sign up for one workshop $30, or Sign up for the series for only $97.
Location: The Schoolhouse, 588 Main Street, Chatham, NJ 07928
Time: 6:45 to 8:00 pm

Preregistration is required: Sign up by emailing me at ggcventures@gmail.com

Rewards Galore

2011-11-28T21:46:00.000-05:00

The other day, I was having coffee with a good friend at Panera and I used my Panera Club Card. I get points on my purchases and then, I receive rewards! Yippee! Who doesn’t love free stuff?!

“Do you have a rewards card?” I asked my friend as we sat down for a chat over coffee.

“Yes,” she said “but I keep forgetting to register it so I don’t use it.”

“Boy, are you missing out,” I tell her. “I got my pumpkin muffin for free with my points.”

I’ve discussed loyalty cards and their advantages with my teens. In some cases, we have a “family reward card” (Modells, CVS, Staples). For other stores, we each have our own loyalty cards so we don’t have to share the reward or take turns. For example, nobody wants to share their Red Mango rewards. My daughter registered her own Red Mango card and received a welcome reward of $5. As for me, I registered my Starbucks card and received a free birthday drink.

But, I’ve told my teens that while getting free stuff is great, there is a downside. The stores want to entice you to spend more and often. We’ve discussed only applying for loyalty cards if they are free and you shop at the store regularly anyway – rewards or not. I’ve told them to beware of buying more stuff than you need, just for the “points.”

Free loyalty cards are the best. However, some cards that you pay for may be worth it if you calculate the rewards outweigh the annual fee. For example, at Game Stop my son pays for the premium rewards card because it comes with a monthly gaming magazine that he enjoys. (Yes, he pays from his allowance!)

There is good and bad news with all the “junk” email you get when you register your loyalty card. You may get flooded with too many emails…but you also receive coupons and early sale info. My teens see me using my coupons (Staples Ink Rewards are great) and stocking up when there is a sale.

So during your holiday shopping, make sure you and your kids use your loyalty cards to build up points (remember to stay on budget), get sale info, and print out coupons. It’s a great lesson on smart shopping techniques. And, like I said…who doesn’t like free stuff!

My Electronic Book Signing!

2011-11-14T09:00:00.001-05:00

Announcing my new eBook

Show Me The Money!

5 Steps to a Successful Allowance Program

If you've been to one of my workshops or heard me speak at your group, you know that I like to use real life stories to show you how to build your allowance program.

My eBook has many stories that you will find entertaining, as well as practical, and easy steps for you to set up or update your allowance program.

Click on the book cover to buy. Use your discount code from the workshop.

Thank you to all for your support. Happy Allowance Programs!

Snow Storm Lessons

2011-11-07T23:35:00.000-05:00

I fear my teens have been getting too many lessons on insurance and natural disasters. First, it was our roof during the Hurricane Irene, then it was our car colliding with a deer (the deer walked away), and now it was five days without power.

My teens have learned the importance of protecting our family’s possessions with insurance as well as knowing how to deal with disasters or when things go awry.

This last act by Mother Nature, snow in October, brought us lessons in togetherness. We “camped” in our house with no lights, no heat and no electronics! We played cards by candle light and listened to our hand-cranked emergency radio. Yes, we got on each other’s nerves at certain points but being together was a good thing. We definitely had some good laughs and some numb toes and fingers.

As we threw out the contents of the refrigerator and freezer, my teens could appreciate the loss of the food and the money it would cost to replace it. We ate out a few times and they saw how expensive it was getting. Just grabbing a quick coffee, juice and donut was starting to add up.

However, we thought about our electric and cable bills would be reduced this month – some savings…but we would have preferred the heat and electronic entertainment.

Here’s hoping that we are done with the insurance lessons for a while.

Show me some GREEN, please!

2011-10-19T23:36:00.000-04:00

Yes, the banks are going to start charging you a fee for using your own money! Yikes! Over the past few years, most of the banks have either instituted new fees or increased existing bank fees. All in an effort to make up for lost revenue.

So, how does this relate to teaching our kids and teens about money and financial responsibility?

Start with the green stuff. That’s right, pay allowance in cash. Let your kids learn to count and verify they were paid the correct amount. Next, they should split their allowance into the three categories:

1. Spending – this should be about 70% of their allowance and they can keep their cash safe in a wallet or other container. For teens, you can consider a high school checking account. Take your teen to the bank and have them ask the bank questions about the account such as, balance minimums, check fees, monthly fees, ATM fees, Debit card fees, other fees, etc.

2. Savings – this should be about 20% of their allowance and they can start a piggy bank or other container. When the cash starts to pile up, take your child to the bank to open a savings account. Have your child ask the bank questions about the account such as, balance requirements, number of free deposits and withdrawals allowed, interest rate earned, other bank fees, etc.

3. Sharing – this should be about 10% of their allowance and they can start a ‘sharing container.’ With your help, have them set a goal of an amount and charity to share. Research the charity to see how they spend their donations.

Our kids and teens don’t see enough cash. They see us use plenty of plastic and now there may be new fees for the convenience. It’s important for our children to learn to ask financial institutions lots of questions about their services.

You are teaching them to be an educated financial consumer!

What’s a Parent to do?

2011-10-11T19:58:00.000-04:00

While having a successful Allowance Program is key to teaching your kids and teens about financial responsibility, they are watching your money habits closely…so beware.

While the old saying “Do as I say, not as I do” might work in some cases, when it comes to parenting it’s all about consistency. Your kids are watching you and emulating your every move in all aspects of your life. So it’s no surprise that they will copy your money habits too.

One of the most important lessons you can give your children is that of financial security. This is a good lesson for them to learn as adults, but could be instrumental in their current lives as a child.

Here are 3 sound financial steps you should have in place as a parent:

1. Retirement Account: you should make sure that you are saving for your own retirement. You don’t want to be a burden on your adult children if you run out of money in your later years. Keep adding to your retirement account. Remember you can get a loan for college but not for your retirement!

2. Risk Management: you need to make sure that your risks are taken care of, meaning you should carefully consider life insurance, property and casualty insurance, disability coverage, long-term care policy, medical insurance and an umbrella insurance policy. If something happens to you or a family member, you need to be protected financially. You should review your insurance when you have any major life changes and at least every few years to make sure you are still covered appropriately.

3. Estate Documents: you will need to have a will, a living will, and health directive. You will need to name guardians for your children and give direction on your health wishes.

You will be protecting your children and your family. Your adult children should do the same when they have a family – this is a long-term financial lesson.

These steps can be “boring” and sometimes confusing. You may have to make scary decisions, but these will have an important, long-term financial impact on you and your children. Don’t put them off – Just do it!

$$ Happy Birthday $$

2011-10-02T20:37:00.000-04:00

“I want a birthday party with ALL my friends!” announces my soon-to-be 17-year old.

“Aren’t you getting a little too old for those BIG birthday parties?” I ask.

Obviously, she’s not! This year she wants an old-fashion, kid-like party to celebrate. So, I start to go into my planning mode…and then stop short. I realize I need a budget for the birthday bash and this can be another financial lesson. (Insert teenage eye-rolling here.)

“OK, but you have to be in charge of the party planning and work within a budget.” I tell her.

She starts making her guest list, which spills over onto a second page. Then she brainstorms the party theme and activities before she starts researching where to have the party.

“Ouch!” she looks at the per person cost. “That’s $26.95 per person for the activities and it doesn’t include pizza or cake!”

“How many friends are on your list?”

“Only 35!” she says. “I can’t cut anyone off the list!”

“Well, you have a trade off to make. Invite less friends or find another party idea.”

This budget story doesn’t have an end (yet) since she is still in the mist of the planning. However, you can see that having your teen, or even a younger child, involved in the planning helps them to understand the costs and the trade offs. Birthdays are fun and should be celebrated but it’s easy to get carried away with the planning which can cause some money stress. Decide on a budget and stick to it. (You can insert some more teenage eye-rolling here!)

Here are some good websites for party ideas:

Evite

Real Simple

Celebrations

Happy Birthday to my daughter, may all your dreams come true!

My New Venture

2011-09-27T21:51:00.000-04:00

Introducing My New Venture

Financial Empowerment for Girls and Women

www.SmartGirlsMakeSavvyWomen.com

Please visit the website and check out the

Smart Girl Workshop Series

as well as the

Savvy Women Workshop Series

Learning about money should never end!

Senior Year

2011-09-13T16:28:00.000-04:00

Congrats…your “baby” is now a high school senior! You’ve almost made it. You’ve been saving for the college years so you know what to expect going forward. However, senior year has some additional expenses that you and your teen should budget for early.

Here are some of the “extras” to discuss with your senior:

· Senior portraits – consider in school vs studio photographer

· Memorabilia – Class ring, Varsity sports jackets, etc

· Yearbook – embossed with initials/monogram

· Senior Prom/Dances – tickets, dress/tux, dinner, limo, after-parties, etc

· Senior Class Trip/Picnics - tickets, food, etc

· Graduation – cap and gown, announcements, party, etc

· College Application Fees – discuss how many applications you will be submitting

· College Test Fees – SAT/ACT, AP, etc

· College visits – gas or plane tickets to check out your top choices

As a family, you’ll need to decide what works for your budget. Then, discuss how much you will pay and what makes sense for your teen to contribute.

If the expenses are overwhelming, consider organizing a school fundraiser for prom/trip/graduation. And, if relatives would like to help out, they could contribute to senior portraits or the class ring.

Senior year is a milestone for your teen and your family. Some upfront planning will help you and your teen to keep the memories alive without busting your budget.

Watch out for that TREE!

2011-09-06T20:48:00.000-04:00

First, I hope everyone is OK from Hurricane Irene!

During the hurricane, my kids got an insurance lesson. This time it was homeowner’s insurance. (You might remember that last fall my kids learned about auto insurance after my husband was hit from behind on the way to my son’s lacrosse practice.)

We were very lucky during the storm – we did not lose our power nor did we have any water in our basement. However, we did have a very large oak tree fall on our house!

It was frightening. First, the sound – WHAM! Then the house shook – earthquake, again?! We were lucky that no one was hurt and no water damage in the attic. We do have six badly cracked beams and one large hole in the roof due to a tree branch.

Once we were all safely outside standing in the driveway (with the dog barking like crazy at the wind), my kids watched me go into action from my cell phone. I did call my Dad first, as he is an engineer by training; I wanted to know if my house was going to collapse. Next, I called my insurance agent to find out the claim procedure and to report the incident. Our claim was recorded so then I turned to getting the tree off the house. My one piece of advice is to have a “tree guy”! I called my friendly tree guy who was amazing…they were here on Monday to remove the tree from the house.

Back to the insurance lesson, my kids were asking all the right questions:

What is homeowner’s insurance and why do we have it?
Who pays to get the tree off the house?
Who pays to fix the roof? And the gutter? And the chimney?
What is a deductible? What is a premium?

I’ve talked to my kids about insurance before, but it always seemed to go in one ear and out the other. Until the tree hit our house. There’s nothing like “real life” when it comes to a learning experience.

We will openly discuss the costs of the repairs as they are done. They are also learning that it is important to ask for referrals and to get more than one estimate before you commit to the repairs. So far, the tree removal was equal to a family vacation. The kids have started to see the trade-offs. They can see for themselves how important insurance is to our family’s financial life.

Boot Camp for Me

2011-08-26T18:07:00.000-04:00

I attended a Boot Camp last week. No, it was not an exercise camp (although that’s much needed). It was a financial boot camp for educators! It was sponsored by the NJ Coalition for Financial Education (NJCFE).

It was a very interesting two days for me. First, I was the only “non-teacher” in attendance. I discovered that for a large majority of the teachers, they were going to be teaching personal finance for the first time this fall. This Boot Camp was their primary training on “personal finance” curriculum.

Did you know that the New Jersey State Board of Education added “at least 2.5 credits in financial, economic, business, and entrepreneurial literacy, effective with the 2010-2011 grade nine class” as a requirement for graduation?

While this is an admirable policy (and a much needed life skill), a few of the teachers I spoke to at the Boot Camp felt like the requirements for students to graduate are becoming overwhelming. Some teachers spoke about all the other pressures of AP classes, standardized tests, and extracurricular activities such as sports, jobs or volunteering.

The good news is that the Boot Camp was informative and full of resources for the teachers to develop great curriculum on financial literacy. I plan to incorporate many of the materials into my workshops.

Teaching a financial literacy course in school, while a great start, it is not enough. As parents, you need to continue the financial conversation with your kids and teens. They need real world examples and they need to have their own financial experiences.

I am committed to helping you, as parents, to help your kids and teens. My blog is full of useful tips and lessons with links to other excellent resources for you as you teach your children to become financial responsible adults.

Starting this fall, look for my line-up of new workshops and my eBook launch, 5 Steps to a Successful Allowance Program.

It's Back-to-School Shopping Time

2011-08-11T16:18:00.000-04:00

What ‘s your budget this year for your kids and teens back-to-school clothing, supplies and electronics?

I know for my family, we will try to re-use from last year where we can and limit our new purchases to what we really need. I always start our shopping trips at home by making the kids try on their fall clothes to see what still fits and what they will still wear! They usually need new shoes and sneakers but most times, they can still wear the majority of their jeans, sweaters and jackets.

Each year the National Retail Federation conducts a survey of Back-to-School and Back-to-College spending. This is the second biggest retail event behind the holidays so the retailers are working hard to get you to spend!

Here are a few highlights from the NRF survey from their web site:

· Combined back-to-school and back-to-college sales will reach $68 billion.

· The average family of K-12 students plans to spend about $600 on back-to-school items, nearly identical to last year.

· College students and their parents will spend about $800 on average this year, down about $30 from last year.

· Half of consumers say they’ll shop for sales more often to compensate for the economy and over a third will be using coupons more often.

So, what can you do to keep within your budget?

1. Get your kids and teens involved in the budget up-front so they can learn the budgeting process. For teens, you can have them do the shopping (with your guidance).

2. Shop your own closet and supplies first – reuse, reduce, recycle!

3. Look for sales pre & post season and work the coupons and consumer loyalty programs.

4. Comparison shop – both stores and on-line research.

5. If your kids or teens “want” that new pair of designer jeans or that new electronic toy (smart phone or tablet), help them to decide if it is really something they want or need. If they still want it, work with them to set a goal to achieve the purchase: save up their allowance, wait for birthday or holiday money, or you can decide to match a dollar amount that they save for the purchase.

As parents, “It’s the most wonderful time of the year,” but it doesn’t have to bust your budget.

The Lazy Daze of August

2011-08-01T19:54:00.000-04:00

I am guilty of having summer on the brain. Amongst driving both kids to academic summer programs to getting my sleepy teen out of bed for her 8:00 am camp counselor job to reminding my taller-than-me son to wear his Aircast on his badly sprained ankle, I have violated one of my own allowance rules.

I forgot to pay allowance.

Not once, but for the whole month of July.

Yup, this is when “life happens” and all your good intensions go out the window (along with your exercise plan). One of my allowance rules is to be consistent. However, another rule is to be flexible. Whew! It’s OK make mistakes, try new things and adjust as needed.

Here are some tips for remembering to pay allowance:

1.    Schedule “Pay Allowance” on your desk calendar or electronic calendar (set the alarm)

2.    Pay on the same dates each month (i.e.15^th, 30^th) or the same day (i.e. Fri, Sun)

3.    Make a chart for the year and record the allowance as it’s paid

4.    At the beginning of each month, go to the bank and get the exact change you need to pay the allowance (i.e. tens, fives and ones)

5.    If you have to, resort to placing sticky notes around the house, near your computer or even on your wallet/checkbook (yes, I have done this on occasion)

6.    Have your kids remind you to pay them!

How do you remember to pay your kids and teens their allowance?

Everyday Lesson: A Penny Saved

2011-07-17T15:58:00.000-04:00

Benjamin Franklin had it right – “a penny saved is a penny earned.” Have you ever thought about where all your pennies go?

An interesting lesson for your kids and teens would be to go through your daily activities and record your expenses. You may be surprised at exactly how much you spend on a daily basis.

First, consider the expenses that you incur daily but don’t physically pay each day:

Housing (own or rent)
Utilities (gas, electric, water, phone, internet)
Food (groceries)
Transportation (car, train pass)
Insurance (auto, home, life)

You can show your kids and teens how to figure out how much a fixed expense costs on a daily basis. You may be uncomfortable sharing your mortgage or rent, so use a utility bill to show how much you were billed for the month and then divide by the number of days in the month to get a daily expense. Another idea is to take the weekly grocery bill and divide by the number of days or have them figure out how much dinner costs by adding up the cost of the ingredients. And for the teens, you can have they calculate the daily cost of their cell phone!

What about the cash you spend from your wallet? Have the kids use a small note pad to record the things you buy with cash. I know for me, I don’t use a lot of cash since plastic is so easy to swipe! So you could have the kids record what you spend using your debit or credit card for everyday items such as: groceries, gas, dry cleaning, supplies, dining out, etc.

I know when I did this with my kids they were surprised at how quickly the everyday spending added up…and honestly, so was I.

This is a great way to teach your kids and teens to pay attention to the everyday expenses that can easily get out of control. You can explain to them that it is important to have a budget for each item. By having a budget, they will learn to count their pennies…and hopefully save a few too!

Everyday Lesson: Pet Therapy

2011-07-12T15:35:00.000-04:00

“I want a puppy!”

Yes, every parent has been there. Your child wants a puppy. So you start with a low maintenance pet such as a gold fish or maybe a hamster. This is a good time to have the “responsibility” talk but it’s also a good time to discuss the financial responsibility of pet ownership.

Explain to your child that it’s not only the price of the pet. They have to consider all the costs of caring for your pet. The pet budget will need to include food, shelter, pet toys/treats, training lessons, collars/leashes, boarding and vet visits (both routine and emergency). Don’t forget that these are recurring annual costs! The ASPCA has a great chart listing Pet Care Costs for Dogs, Cats, Rabbits, Small Mammals, Small Birds and Fish.

You can expand your discussion to talk about the cost of hobbies, sports, and extracurricular activities. The first step before taking on a new hobby or sport is to do your research. This involves putting together a budget. Check out to see if there are membership/club fees, special equipment (buy vs rent), and lessons.

Teaching your kids and teens that their “wants” (as well as their needs) must have a budget of it’s own is a great money lesson.

BTW, our “puppy” is now 2 years old and she is a big part of the family...and our budget, too!

Everyday Lesson: Reuse, Reduce, Recycle…Save Money!

2011-07-06T14:45:00.000-04:00

Yesterday, my daughter and I ordered her schoolbooks for next year. I know, it’s still summer but we wanted to do some research on prices and shipping costs. We had the text book ISBN numbers, so it was easy to compare prices on the various websites. Also, her school holds a book swap at the end of the year so she was able to pick up a few of her books for a very reduced price.

It was enlightening for her to participate. In years past, I ordered the books on my own but this year I decided that since college is only two years away, she should get a taste of what her college textbooks will cost.

She was very surprised to see that her Physics book was $103 if she bought it NEW. We searched for USED copies and found them ranging from $69 to $77 depending on condition. I explained that we needed to think about shipping costs too. On Barnes and Noble’s website, we were able to get free shipping when we ordered up to a certain amount. However, we had to pay shipping on two books since they were coming from other book suppliers.

Her result was a savings of approximately $45. Teaching her to be environmentally aware by buying used books when possible and, also saving money was a great everyday lesson!

The Environmental Protection Agency has a good resource for Recycling.

For Kids: EPA Environmental Kids Club

For Teens: EPA – Your Enviroment. Your Choice.

Everyday Lesson: It Takes a Thief

2011-06-27T13:53:00.000-04:00

School is out and we always start our summer by cleaning out all the paperwork collected over the school year. As my kids were adding their paperwork to our already mountainous shred pile, they asked, “Why can’t we just throw this stuff in the garbage?”

It was the perfect time to talk about Identity Theft. The Federal Trade Commission (FTC) estimates that 9 million+ Americans have their identities stolen each year. Check out their website that focuses on Deter, Detect and Defend.

Explain to your kids that identity theft happens when someone uses your personal information (your name, credit card number, social security, etc) without your permission to commit a crime or fraud. The thieves can get your information in various ways: your trash, stealing your wallet (credit cards), skimming at a debit/credit card machine, spam or pop-up emails. Tell them that it is important for them not to share personal information or give friends their PIN numbers or passwords for ANY account (email, social networks, or bank accounts).

For teens and young adults, they should get in the habit of carefully monitoring their checking and saving accounts. Annually, they should check their credit report to look for errors and discrepancies. With our teens living their lives “on-line,” they should be on guard when using the Internet and should take steps to secure their computers from attack.

It’s never too early to teach your kids to protect their money. After our discussion, my kids were psyched to use our shredder!

Happy Shredding!

My Blog on Patch

2011-06-22T15:41:00.000-04:00

Don't forget that I am also blogging on Patch.

Check out my post this week: What's in a Last Name?