Many college kids today get themselves into so much financial trouble – student loans, credit card debt, car loan, etc, because they have never been taught how to be wise financial stewards.  Those college graduates then come out with an average of $20,000 in student loans (if not more), about $3,000 in credit card debt, and an $8,000 to $10,000 car loan.  That means they are going to start with an entry level paying job and more than $30,000 in debt!  That’s certainly not a foundation many of us want.

Wouldn’t it be better to have our children entering the world as wise financial managers?  How about no debt?  Those sound like very worthy goals, but are they realistic?  I think so!

Teach children at a young age about money

The key is to start teaching children from a young age about money.  Money is something they will deal with every day.  You know from a young age they learn to ask for items whether it’s gum at the grocery store or a new toy or a book.  They are also extremely lead by what influences them…hence why so many commercials are targeted at children.  But if you start teaching them from a young age, then you become their key center of influence versus the world!

How young is to young?

So how young is too young?  I don’t think there is too young of an age.  Use every opportunity as a teaching opportunity.  While you don’t want to squelch the fun, you do want them to begin to understand that items cost money.  Giving each child a certain amount of spending money or encouraging them to use birthday money for larger purchases is a good way to start.  Involve them in your finances to.  As you will hear me say often, my daddy having me help him write checks from the young age of seven (yes, I said seven years old), was a huge influence for me and my life.

No teens in money management

Biblically speaking, there are no teens.  Yes, I know that is an unusual thought, but there were only children and adults.  At the age of 12, a boy celebrates his Bar Mitzvah and becomes a man.  At the age of 13, a girl celebrates her Bat Mitzvah and becomes a woman.  From that point on, you are considered an adult in Jewish society.  Why?  Well, a quote sticks into my mind in answer to that, “a child’s moral framework is cemented into his mind by the age of 12.”  What age did I just say…was it that number 12 again?  Interesting how God has known that all along.  We’ve just got to catch up with him!

So in answer to my question, there is no age too young to start teaching your children about finances.  Now, let’s take that practical…  What are some resources I can use to do that with?

Practical tools for teaching kids about money

Crown Financial Ministries offers excellent an children’s financial curriculum.

Involving children in your finances is another key activity.  Ask them to help you balance the checkbook.  It teaches them math as well as helps them understand items cost money.

Have a family “outing account” that the children help you manage.  Each month you put the budgeted amount in there, then the children help you find out what various activities they desire to do as a family cost and what combination you can afford.  I’ll tell you they will become super finders for all the free events in no time!

And finally, how about doing a Bible study on money together.  There are way too many available to name, but even just reading the parables where the Messiah gave a financial illustration is a great way to start.

I’ve only begun listing ideas.  I’m sure you can think of more.  Just remember that now is the time to start teaching.  Even if you have older children, there is no time like the present to begin.

What tips can you share for teaching children about money?

Here are a some of the results I found:

• Lawsuit claims county school drivers cheated out of money
• Customers cheated out of money
• Firms cheated out of thousands in money
• So-called friend cheated me out of money
• Did the car dealership just cheat me out of money?

When you’re cheated out of money you naturally may feel anger, or resentment.  But a devotion from Crown Financial Ministries this week reminds us we can be free to let go of such feelings:

Too often we harbor resentment in our hearts when someone offends or cheats us. The reason the Lord tells us that revenge belongs to Him is so we can be free of resentment, anger, and frustration, as well as the need for getting even. “Do not fret because of evildoers, or be envious of the wicked; For we know Him who said, ‘Vengeance is Mine, I will repay.’”  (Proverbs 24:19 NASB, Hebrews 10:30 NASB).

Here are some thoughts about this devotion and what to do if you are cheated out of money:

• You should never try to seek revenge.  Doing so will only make matters worse.
• If you’ve been cheated by a friend or someone you know, confront them, but with a kind heart.  Sometimes what may seem like an act of cheating could be a mistake.  For example, somone owes you $50 over a dinner bill and only pays $40.  Or, you might just consider letting it go if the matter is small and if it could cause friction in your relationship. 
• Report the theft.  If it’s a credit or check card that’s been stolen, contact your bank immediately.  Have them freeze the account and make sure you can tell them which transactions are fraudulent. 
• If you’ve been cheated by a business, don’t threaten or take action on your own.  Report the business to the Better Business Bureau and contact authorities if you’ve witnessed illegal acts.
• Don’t forget to check your credit report [annualcreditreport.com provides a free credit report from each of the 3 credit bureaus once per year] to stay on top of any fraudulent activity that could impact your credit score.
• Pray and have comfort in knowing God is always in control of the situation.

Have you ever been cheated out of money?  If so, how did you handle the situation?

After listening to the message the second time, I think it is one of the most profound messages about money and marriage I’ve heard. It gets to the root of money problems and identifies the one true solution. I hope you’ll enjoy what I learned. You can listen to the actual message here. 

The 5 Minefields: We Need To Defuse Them

1. Meaning of money 

Couples should ask themselves what the meaning of money is to them. Often times we enter into our marriage with different definitions. Perhaps its security or perhaps money is the freedom to buy something to make you happy. “If you don’t know what it means to your spouse, you will be talking in foreign languages”, as my pastor said. It’s important to have this discussion and get on the same page. 

2. Gender differences 

For most males, their need, when it comes to money, is to provide for their family. They like to carry this burden. For most females, their need is to make sure the family is provided for. The challenge, as mentioned, is when the husband might work longer to provide, but the wife thinks his work is his top priority over family. The husband sees it just the opposite. For some husbands, just because they are working hard, it doesn’t mean they love their jobs more than their families. Obviously, too much work can cause the relationship to suffer. My pastor said couples must seek the right balance to confront this issue. 

3. Priorities 

When we enter into marriage, we enter with different priorities for money too. There is always the question between couples on how they are going to spend their money. Should we buy, save, invest, give, etc. and in what order? Where will we give? On what will we spend our money? If priorities are different; you’re heading for trouble. 

4. Debt 

According to my pastor, 43% of American families spend more than they earn in any given year. The average family carries $8000 in credit card debt (without car and home loans). In his words, “American families are going down the tube!” Buying now and paying later is not a good plan. 

Wall Street Journal -

Among other things, the law prohibits issuers from controversial billing practices such as hair-trigger interest rate increases, shortened payment cycles and inactivity fees—but it doesn’t apply to professional cards.

What do you think about this?  Personally, I think this is a low and unethical move.

What is DebtGoal and How Does it Work?

DebtGoal is a relatively new product category of debt assistance: self-paced debt management.  The tool allows you to set up a customized debt plan, link your accounts in a secure fashion online so they automatically update as you make payments, and choose your debt pay off strategy (debt-stacking, snowball, or your own customized plan).  Additionally, you can get payment reminders and monthly progress reports.  Finally, people need to get creative when trying to pay off debt.  DebtGoal provides different actions you can take to accelerate your debt pay-off.

Sign Up for the Free Trial Offer

The group over at DebtGoal just sent me a new video they put together to help people get a better idea of how the tool works.  Once you’ve viewed the video, I recommend visiting DebtGoal and signing up for their free trial offer to check it out for yourself. 

I currently have an account and have been using it for tracking and paying down our final car loan.  I’m amazed at the enhancements they’ve made since I wrote my DebtGoal review (which needs some updating) last year.  They’ve put a lot of work into the product and I like how they’ve built the guidance you need into the tool!

Have you had any experience with DebtGoal?  If so, please share your thoughts with other readers.

The last thing a consumer needs when struggling financially is to fall into the hands of an unscrupulous credit counseling agency.  If you’re considering using a credit counselor, shop around, and ask each agency the following questions.  More importantly, be certain that you are comfortable with their answers before you book that first appointment.  A legitimate agency is always more interested in your bottom line than theirs.

Is the agency affiliated with a national body such as the National Foundation for Credit Counseling (NFCC) that requires strict quality, financial and ethical standards for membership?  Examples of such requirements are annual audits by an independent CPA, written action plans provided to each consumer, and consumers provided with statements at least quarterly.

Is the agency accredited by an independent third party?  Self-accreditation is not the answer you want.  An example of a reputable third party accreditating body is the Council on Accreditation (COA).  Such accreditation signifies that appropriate checks and balances are in place to protect you, the consumer.

Is the agency a 501(c)(3) nonprofit community organization?  Being a nonprofit does not guarantee that the agency is legitimate, but it is a step in the right direction.

What is the composition of their Board of Directors?  Board members should not be paid by the agency, should not be family members or friends, but should represent a wide cross-section of the community and civic interests.

What services does the agency offer?  A wide-range of services is a good sign.  This could include: budget counseling for those who are not in debt; debt counseling for those who may need professional assistance digging out; housing counseling for pre-rental, pre-purchase, first-time homebuyer, reverse mortgage, and foreclosure prevention; and the mandated bankruptcy pre-filing counseling and pre-discharge education.

What are the fees associated with the services provided?  The agency should be forthcoming about fees, and no fee should be assessed prior to the service being provided.  Be wary if the agency says their fees are voluntary.  Any set-up fee or monthly fee should be reasonable, with the agency willing to waive all fees in cases of true hardship.

What delivery options are available to you for counseling?  Does the agency offer in-person counseling?  Counseling by phone?  Internet counseling?  Is the channel that’s most appealing to you offered?

Is the counselor assigned to you a Certified Consumer Credit Counselor?  You want someone qualified assisting you with your critical financial decisions.  NFCC certification means that the counselor has passed a rigorous battery of tests measuring their financial knowledge.

Does the agency provide educational classes or workshops?  Are any of these tools offered online?  Is there a fee to attend?  The absence of any true education offered to the general public is a red flag.

Will the agency work with all of your creditors?  Some agencies only work with creditors who agree to make a payment to them.  A legitimate agency will take a holistic approach to solving your financial distress.

Is there a minimum amount of debt required to be counseled?  True credit counseling agencies will work with you regardless of how large or how small your debt may be.

What debt relief options are offered?  If the only tool is the Debt Management Plan (DMP), keep shopping.  A DMP is a useful tool, and is often the appropriate resolution.  However, each consumer’s situation is different, thus the solution should be customized to fit their specific needs.  A one-size-fits-all approach signals that you should continue your search.

Are the counselors compensated for writing DMPs?  Any such incentive is not a part of a legitimate agency’s pay to their counselors.

How long will your counseling session last?  Don’t be tempted by “drive-by” counseling.  A counselor simply cannot do an adequate intake of your income, expenses and debts in a short amount of time.  An initial session length of at least one-hour is standard.

If you go on a Debt Management Plan, how soon after receipt of your monthly payment will it be disbursed to creditors?  The success of a DMP depends on timely, consistent payments to creditors.

What happens to your first payment?  Believe it or not, some agencies keep the consumers first payment and consider it a donation.  Be sure to ask about this.

Will the full amount of your payment be disbursed to your creditors?  The full amount should go toward the repayment of your debts, with no portion going into the agency’s pocket.

How will your deposits be protected?  Ask for written evidence that the agency is bonded or insured to protect the consumer from fraud or the agency’s own financial difficulties.

As a final step, check with the Better Business Bureau and your state’s Attorney General to see if there are unresolved complaints about the provider you are considering.  Anyone can file a complaint.  What is relevant is how the agency resolved it.

Legitimate credit counseling agencies counsel and financially educate millions of consumers each year, making financial stability a reality in their lives.  It all starts with selecting the right agency.  Asking the above questions, and receiving the right answers, will ensure that your credit counseling experience is a positive one.