Archives For money

I’ve got a Thursday bonus post for my readers. The good folks at Your Teen’s Money Skills asked me to submit a guest posting which appeared on their site yesterday. Does your child spend all of the money that they get? Do they always want more? This post on contentment in children will help you with the problem. In it, I explore the impact of marketing and advertising on our society and I give some shocking figures on what our teens spend each year. I also give you several actionable steps to help break this cycle in your home and build contentment.

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Application Question: Do you struggle with contentment? Are your children beginning to display the same characteristics?

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Kids need to understand that work is how money is earned. Allowances are a common theme in childhood but they may send the wrong message. The biggest problem – when they come without work or chores attached.

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One of the rites of passage for a growing child is the assignment of chores. In the home, as a family grows so does the need to helpful hands to keep the home in good working order. What chores should your child have, do you pay them for those chores, and at what age chores should begin will all be answered in this post.

Let’s begin with the money question. Opinions differ on this topic and there are no right or wrong answers. You may take the stance that because you don’t get paid for chores then children don’t either. Maybe you believe that they should get paid for everything or that if they don’t do certain chores then allowances can be withheld as a penalty. I do believe that chores should be the first time that your child learns the lesson that money comes from work. But paying them for everything might be unrealistic and tough to keep up with. You also don’t want to create a little negotiator, so be firm on the amount that you’ll pay your child for chores if you choose to do so.

I think the best approach is a mix where everyone has some chores that they do because they’re part of the family and some chores that they are paid to do. Those paid chores might be the ones that occur less frequently and are more labor intensive, or they might be ones where the children do not directly benefit from the chore’s completion. Whatever your approach, be clear on the subject of compensation.

Chores to be completed in every home vary based on the type of living facility. For example, renters or townhome and condominium owners may not have to deal with exterior maintenance. It might also depend on the family arrangement; if multiple generations share the same home then there may be more chores to do but more people able to participate. Anything that has to be done on a repeating basis can qualify as a chore. But the list can be overwhelming to put together, so where is the best place to start when deciding what chores your children can take on?

Begin with the things you do most for the kids. Cleaning rooms and making beds immediately come to mind. Picking up toys and cleaning up the den or playroom are also high on the list. At a very young age your child can grasp the concept that everything has a place, so begin with the simple cleanup tasks. Remember that your young child is learning so be very lenient in these first few months. Add in the bed making and room cleaning as they enter school in creating a daily routine for your child. At this age, they can begin to take care of any pets that they have.

As your child becomes physically capable, you might add on the chores of taking out the trash, clearing the table, and washing the dishes. Your weekly cleaning chores might expand to include your children, where they could make their beds after sheet washing, vacuum, sweep, or dust. Young men can participate in lawn work and maybe the young ladies could begin to do laundry – or they could swap roles periodically since both would benefit from knowing how to handle all of these chores. As they get closer to driving, have your teens wash cars, help with oil changes and routine maintenance, and let them begin to run errands. Again, these should build on the chores that they have been doing throughout their lives so that responsibility builds, just as it does into adulthood.

In short, your kids need to have chores to build character and responsibility. Your kids also learn practical skills for homemaking that they will use later in life. As kids get older they should share in the ongoing tasks and maintenance of the household for their own benefit and for the benefit of the parents. What chores do your children do in your home? Do you pay for chores or penalize their allowance when they don’t do them? Weigh in with your ideas on this topic.

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If you’ve gone through the steps to figure out how much college might cost, you have probably discovered that it’s an intimidating number. In most households, there isn’t much left over at the end of each month to save money for college. Unless, of course, you’re willing to work extra to bring in some more income or cut your spending to make room in your budget. While working more might seem like a good idea because your lifestyle doesn’t have to change, quality of life will suffer because one or both parents will spend more time working. It’s been my experience that you can work extra for only so long before burnout sets in. So, let’s look at possibilities for finding some hidden money that already exists in your monthly budget.

For starters, look at your cable bill and television usage. If you cut out those premium channels, that could save $30 per month. Are you spending a lot at Redbox? Each trip is a dollar plus tax, but the hidden cost is in the amount you spend in gas to pick up and return the movie. Look at Netflix, Vudu, or Hulu if you are a movie buff and save these fees. Or, if you’ve subscribed to these services but aren’t using them, consider cutting them off. Average savings $15 per month either direction.

Cutting off your home phone, considered radical just a few years ago, is becoming easier with the number of minutes included in cell phone plans. Take this step to free up another $40 per month.

While you’re looking at your cell plan, make adjustments to ensure that you aren’t paying overages or that you aren’t paying for more services than you are using. Average savings $25 per month.

If you eat out every day for lunch, you’re probably averaging $40 per week on lunches. Each meal you can take from home can save $8 per day. Do this just twice per week and you can find another $64 per month. If both parents work and can do this, that makes $128 per month. OK, I’ll admit that the food you take for lunch isn’t free, but I still think you can save $100 per month.

Go back to food for a minute. There are families that spend more in eating out each month than they do on groceries. Let’s say that your family eats out three nights per week, two fast food and one sit-down meal, at a cost of $30 per night for the fast food and $60 for the sit down meal. Trade in the fast food meals for eating at home and save $240 per month. If fast food is a reality because of activities, then trade in the sit down meal. Either way, the impact to your budget per month is the same. Subtract the cost of groceries you’ll spend instead and you can still save $160 per month.

What services do you pay for that you just don’t use? What about that gym membership? That could be $80 per month by cancelling it and instead walking the neighborhood with your family.

Mom and Dad, maybe you both could look at your hobbies. Dad, do you fish or golf once per week? Mom, what about the night out with the girls where you scrapbook, paint, or do some other hobby? What if you cut those in half an instead moved to twice per month? If each outing averages $25, then this could lead to $100 a month to add to your budget.

Consider couponing. You don’t have to go to the extremes that you see on TV but there are ways to save money on your weekly grocery bill and dining out. Guys tend to be more reluctant than the ladies towards coupons but these can save a bundle. I can often eat lunch for $4 per day using a coupon. Just be sure to shop and buy in the same patterns that you always have; don’t let coupons be an excuse to buy more. Possible savings – $50 per month.

Combine your trips. With gas at $3.30 per gallon or more, each trip needs to count. Eliminate two runs to the grocery store per week; if each takes a gallon of gas this saves roughly $25 for the month.

Do the same thing for getting your kids to and from school. Use the bus or find a carpool buddy. If you can save half of your school trips, this could save each mom another $25 per month or more.

Nothing radical or painful here, just some good common sense ways to spend more wisely and find money to save for your child’s college. Pay attention and you might find the money already exists in your budget. What are some other ways that you’ve found to save in your home?

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Fascinating article in the Wall Street Journal this past weekend from Alison Gopnik on the teenage brain. I learned so much from this article and wanted to share a summary and my insights. Turns out that there are reasons behind the mystery that is the teenager and, I believe, some steps we can take to grow them up.

One of the most intriguing parts that I learned was that the contemporary teen in North America is handicapped by their lack of engagement in homemaking and other life skills. In the past, the young adult was well-adjusted to take on the challenges of living in the real world because they were an integral part of these activities at home. They learned the right way, and the wrong ways, to do these things through trial and error. Today’s microwave, instant-on, drive-through burger society has largely eliminated the need for our children to partake in these activities.

Besides delaying their preparedness for life on their own, this impairs your teen’s decision-making abilities. The article points out that teenagers take chances not because they don’t understand risk, but because the associated rewards are far more reinforcing to them. Teens desperately want the approval of their peers so they are likely to engage in that rewarding, yet potentially dangerous and stupid, activity that can lead to their approval over stepping back from the ledge and thinking it over.

Because teens have not learned the wrong ways to do things and made mistakes in a safe environment, they learn in the real world where it hurts more. Attach this to the child who never has a checking account until age 18 – do you think an out-of-balance check register is worse when their debit card is denied at the movie theater or when their rent check bounces? Two or three of these bounces and your kid returns home to live in your basement, convinced that they can’t make it on their own. Kids need to have these experiences at home, and parents need to create an environment for those to happen.

So what can we do? Our kids are smarter than ever but can’t handle the basics of life. Here are seven suggestions that you can incorporate in your home.

1. Just say no. When your child asks (and sometimes tells) you to do something that they are capable of doing, let them do it instead.

2. Delegate. As soon as your child can physically perform a chore or household task, give it to them. A shared load around the house gives a child a greater appreciation for the real world.

3. Praise and correct, never criticize. Stick with your child while they’re learning the ropes of these new tasks so that you can help them learn to do them well.

4. Create grown-up moments. As an example, let your child create grocery lists then let them do the shopping. During these times teach them how to read ingredients, price compare, and so forth. You can do this with auto maintenance, yard work, budgeting and other seemingly adult work.

5. Reward proper communications and extinguish poor ones. Dave Ramsey likes to say that in our teens lives a four-year old and a 34-year old. Communicate with them when they are talking and acting like an adult; when they’re acting like a child, treat them like a child.

6. Teach them money, and give them opportunities to handle money. Like it or not, money is the lifeblood of today’s economy. Send a child into the world with money skills and you’ve won half the battle. The best thing a teenager can learn about finances is that work creates money.

7. Set the course for them to leave the nest. If your child seems to lack direction or desire to move on with their life after high school, begin to talk about it and give them clear guidelines on what life looks like after they graduate.

In short, you teach your child as you raise them; it’s much more than providing food, clothing, and shelter. Don’t take a passive approach to this by doing everything for them and assuming that they learn by watching you. Add age-appropriate chores and household duties to all of your children, teach them about finances, and expect more from them. Your teenager, even with all of their weirdness, can handle challenges far greater than we tend to give them. When you think you’re protecting them and giving them the “good life,” you’re probably setting yourself up to have a 30 year-old roommate.

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Home schooling is gaining in popularity over the past few years.  In the 1999 Census, an estimated 700,000 home school students were counted nationwide.  In a 2005 book entitled The Absolute Beginner’s Guide to Homeschooling, it was estimated that between 900,000 and 2,000,000 children nationwide were somewhere in the home school process.  The number (and growth rate) is likely even higher now since broadband is so widely available in homes and technology advances make online delivery much easier.  There are a lot of advantages of homeschooling.  Most importantly, the parents can structure the curriculum to fit their child’s needs and learning style.  There are also a few more challenges.  In the parent/student/teacher relationship triangle, the parent has to perform double duty.

This is not an article in support of or against home schooling.  Each family is uniquely qualified to make that decision in their homes.  Here are a few tips to think about if you are now home schooling or are considering starting.

1) Make sure that your reasons are in your child’s best interest.  Some folks will rationalize their home school decision because they believe all public schools are insufficient, that they are too expensive, that they are unsafe, etc.  Simply examine your motivations before making a commitment like this.  I recommend not doing it because you think it will be easier for you.

2) Understand the time commitment.  You’ll have to create and maintain your home school environment and do everything that the teacher has to do.  This includes lesson planning, delivery, homework and test creation and grading, progress reporting and tracking, and any administrative reporting to government agencies.  Multiply this by how many subjects and how many children you are teaching to get an idea of the time commitment.

3) Understand the monetary commitment.  Home school curriculums vary widely in content and in price, but none of them are free.  Again, depending on your child’s grade and the subjects to be taught, the expense can be significant.

4) Plan to be actively involved.  As mentioned above, there are a lot of great delivery methods for home schooling but you can’t simply put your child in front of the computer and let them proceed at their own pace.  You’ll also have outside experiences, field trips, and so on that allow you and your children to interact with other home schoolers.

5) Resist the urge to inflate grades or not hold your child accountable.  There are some valuable lessons that a child learns when they have assignments with due dates or upcoming test dates which requires them to manage their own time.  It will be very easy to let a due date slide or move a test till your child is prepared.  Let your kids know that you have high expectations for them, and when they miss the mark use that as a teaching opportunity for a life lesson.

6) Push your child.  No matter whether they are in public school, private school, or home school, you should inspire them to do better and to learn more.  As home school parents, you have an additional burden to teach them more.  When they master a module in a particular subject, move on to the next module instead of waiting till the right time on your schedule.  This ensures that the children get the most benefit from home schooling and has a vastly different experience than if someone else teaches your children.

7) Network with other home schoolers.  No man is an island, which means that no one person has all the answers.  Reach out to other home school parents, connect your children with them, and know what your “competition” is offering.  You’ll get a lot of great ideas from one another.  Particularly if you are considering home schooling, this is a great step to take to perform your research.

No matter your stance on this, all parents are home schoolers to some degree.  We may be the ones that teach the life lessons more than the educational lessons, but nevertheless don’t neglect that role.  I encourage you to explore your options and do your research to make the best possible decision and create the best experience for your child.

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