Archives for June 2014

How Long Can We Maintain Being a One Car Family?

June 25, 2014 | Leave a Comment

When my husband and I moved into our first place, a nice one bedroom apartment, our lease stipulated one vehicle included, anymore and we would have to pay extra for an additional parking spot. Given that we were looking to save as much money as possible for our upcoming wedding, we decided to sell my little old car.

My husband had the more reliable vehicle and I opted to use public transportation instead of paying extra just to park my car. I work in a downtown core where parking is incredibly expensive as well so driving to work is quite the added expense, selling our second vehicle made sense for so many reasons.

Fast forward six years and we’ve been married, moved into a suburban home and had a baby. My job is the same, my husbands has changed slightly requiring more frequent out-of-town day trips. I’m still taking public transit which, to give our city some credit, has improved in the last six years. Though I thought it would be a temporary thing, six years later we’re still a one car family.

The only way this is possible is me either taking public transit or carpooling on some days. Though I could drive to work faster than me taking public transit I simply cannot justify this added cost right now. Monthly parking at my jobs location is $150 per month. If we bought a second car, not only would we have the upfront cost of the vehicle, we would need to pay for gas, maintenance and insurance. Even without paying for parking it would still cost us about $250 per month to own said car. With parking and bridge tolls, closer to $500.

I currently pay about $60 per month for public transit, a significant savings from the $500 we could be paying!

The inconveniences of being a one car family….

The biggest inconvenience we’ve encountered with being a one car family happened two years ago when our public transit went on strike. We ended up spending more than double our gas (almost $400 per month in gas) with my husband driving me to work everyday or us giving gas money to other people for me to carpool with. The strike lasted months and was a huge headache to deal with. My normal 30 minute driving commute was upwards of two hours some days with the sharp increase in vehicles on the road.

As our daughter gets older we’re expecting a few more inconveniences as she gets involved in activities and needs to be at places. Given that I now rely on my husband to pick me up from a major transit depot close to our house, if he needs to have our daughter (dance or soccer) at the same time we’ll be in a tough spot with me trying to get home. My work schedule is very rigid and can’t easily be changed so I foresee this being a challenge.

We’re lucky that we currently live in an area with public transit, I suspect our next home will be out of the city and away from major transit lines where owning two vehicles will be a necessity given our work schedules.

At this point in our lives, being a one car family works. We’re ”saving” almost $450 per month. Money we just can’t justify when we’re working to pay our debt off. Once our debt is paid off we will likely get to the point where having a cheap second car will be a necessity either because of where we live or the direction our lives takes us.

Are you a one car family? How is it working out?

How to Save For a Large Family Purchase

June 18, 2014 | 1 Comment

Having a family is expensive.

It doesn’t have to be as expensive as some stats would have you believe, but going from a married couple of two to a family of three plus will have added expenses.

These every day added expenses such as diapers, food, paying for kids activities and possibly private school tuition can make it seem impossibly hard to save for large upcoming expenses that affect the whole family.

Large expenses that affect the whole family may include:

Home repairs, everyone lives under the roof and mom and dad need to keep it safe!
Family vacations
Family vehicle

All of the above are expensive. Right now we need to start saving for an upcoming family reunion next summer and though much less critical we’d eventually like to upgrade the appliances in our kitchen. In order to do any of these things we need a plan.

Come up with a list

We created a list of everything we wanted to do and purchase, then, together as a family, prioritized each item with a number 1-5.

Once everything had a number we ranked within each set of numbers (ie we may have had three #4’s) and ranked in priority until we had a detailed prioritized list. Once the list was ranked we put an estimated cost beside the item and recheck the list. This is the order in which we will tackle things.

Come up with a plan

A list without a plan of attack is nothing. We can say we want to attend the family reunion next year but if we don’t have a means to pay for it then it will never happen.

The plan has to include a more realistic budget for the item or venture as well as a plan to come up with the money by a certain date.

Come up with the money

Coming up with the money is the hard part. If you’re able to designate a savings line in your monthly budget this is an ideal situation but if the money needs to come out of funds over and above your regular monthly budget then you’ll need to get creative.

Are you paid bi-weekly? If so, it means you have two ”extra” pay periods per year that you could use for the family purchase.

Have a tax return that you could use (if not reinvesting)?

Start small. My husband and I have big dreams of attending the 2022 Olympics with our family no matter where they are in the world. Obviously this will require substantial planning and substantial money.

I figure we would need to invest at least $100 per month for the next eight years to make this happen but since our current priority is debt we won’t be starting to save for probably four years at which point we will be able to easily double up the payment to $200/month for four years.

Save all ”extra” money. Overtime, side income, found money. Any unaccounted for income could go towards paying for your family’s larger purchases.

How do you pay for larger family purchases?

How to Choose the Right Car for Your Growing Family

June 13, 2014 | Leave a Comment

As your family grows your vehicle needs will change.

A two seated car isn’t going to work for a three person family with a brand new baby. And among the size of a vehicle other things will come into play, such as safety and accessibility.

Here are some steps you can take to find the right car for your growing family.

Size of the Car

When it comes to the size of a car you need to think into the future.

For instance a family of five can comfortably fit into a standard SUV with five seats. But if you’ll be adding onto your family in the next couple of years you’ll need to go with a seven or eight seated vehicle.

Think about not just what you need right now but what you’ll need in the next couple of years. This will save your major hassles.

Safety of the Vehicle

When you have young children it’s important that you consider vehicle safety.

For instance large size cars, SUVs, and vans usually have a higher safety rating than a compact car. Make sure to do some research on the safety of the vehicles you like.

After all, your most precious cargo will be in tow!

Vehicle Accessibility

If you have a new baby you want to make sure you can easily get your baby in and out of the car.

This is why you’ll want to go with four door cars. If you have a two door vehicle it will be hard to take a car seat in and out.

It will also be a hassle if young children have to get in and out of a two door car.

Price of the Car

Once you have the types of vehicles you’re looking for narrowed down it’s time to decide on the hard part: your budget.

If you’ve saved up cash then you know what your budget will be. However, if you plan on taking out a loan you’re going to need to figure out how much you can, and want to, spend.

Car loans can now be taken out on seven year terms. I would highly encourage you to take out the shortest term possible.

Play around with a loan calculator to determine what you can afford. Also check with different banks on going interest rates. One option is to look for the best car finance with IMB.

Also, don’t forget to factor in the cost of your insurance. It’s a good idea to go ahead and find out how much insurance would be on cars you’re considering. You can do this by contacting your insurance agent and asking them to run quotes for you.

By following these steps you should be able to pick out the right vehicle for your growing family.

Happy shopping!

Saving Money on Kids Birthday Parties

June 11, 2014 | Leave a Comment

This past weekend my daughter was invited to the birthday of a little girl we know.

She was turning six and all I knew was that there was a ”clown theme”. It was the first time I’ve actually attended the birthday party of a child (outside of me being a kid myself) and holy. cow. The party was over the top.

I certainly don’t remember ever having, or attending a party of such detail before in my life. It scared me a little into thinking there was some new expectation to have a huge party for kiddo’s upcoming birthday.

I was right, there was a clown theme which included:

Having a live clown perform or two hours making balloon creations for every kid present (at least 30 kids), a full kid-friendly magic show and all sorts of attention for the birthday girl.
Rented hall for event.
Full decoration (balloons, streamers, plates etc)
Toys for kids (clown noses, silly bowties, party hats)
Food (fresh fruit, candy in skewer form, cake, chips)
Multiple treat bags full of stuff for each kid.
And so many gifts!

Saving Money on Kids Birthday Parties

Kid parties certainly don’t have to be so over-the-top though. You can have all sorts of fun without compromising the child’s memory. To save on kids parties consider doing these money saving tips:

Only invite the child’s friends/family. There was simply no way this little girl was friends with every child there. Invite only kids that your child actually interacts with. There is no rule about mandatory invitation to every child in their class.
Don’t have it during a time when a meal may be expected. Only serve snacks and keep them to a minimum. Depending on how many people may be present, buying in bulk at a store like Costco or Sams Club may be the best option.
If you do serve a meal make or buy something that is inexpensive but can serve a lot of people (lasagna, pizza, pasta, BBq burgers/dogs) or consider a potluck meal.
Look into group party discounts at local attractions. I know the local movie theater here offers a pretty good price for a large group (movie ticket, snacks, room rental and cake all included). If you’re only inviting close friends and family it can be a reasonable option.

If you start with extravagant parties, especially so young, there will be an expectation for years.

I’m not suggesting you shouldn’t have fun and celebrate their special day but keep it within reason. This can’t be the new norm! I remember having my friends over for pizza and games, as we got older possibly a sleepover, not an all-out afternoon event with every kid in the neighborhood. Put the focus on your child having fun, not money spent.

How do you save money on kids birthday parties?

Frugal Summer Fun For Your Toddler

June 4, 2014 | Leave a Comment

It’s hard to believe that June is here!

The weather is finally starting to warm up (the cold weather was dragging on forever here) and we’re venturing outside. This is the first summer that my daughter could really ”do anything”. She was born in June so last year, being only one, was just learning how to walk and explore.

This year, a full-fledged active two year old, requires strategic planning to keep her entertained. The good thing is that she’s only two so doesn’t really know how or what is out there unless we expose her to it. The bad thing is that she is very busy and requires me to be as creative as I can be to keep her entertained all summer.

After pursing the internet and talking to my mom and teacher friends, I have come up with a list of fun fugal outdoor activities for your toddler:

Painting with water. We did this the other day and it’s as easy as it seems. Bucket of plain water and a paintbrush! We painted the driveway and fence. This literally entertained her for over an hour and 100% mess-free!
Chalk/bubbles. Another favorite and cost less than $1.
Explore your neighbourhood. I like taking walks with kiddo before it gets too hot in the summer mornings. It’s usually not too busy traffic-wise and I can let her out of the stroller to just run ahead of me a little to burn off some energy herself.
Parks and playgrounds. When we’re on our walks we will often stop at a local playground to run around. Bonus if there are other kids present for her to play with otherwise mom is getting an added workout playing too 🙂
DIY Sandbox or dirtbox. Little fact: Kids love to dig and play in dirt. We plan on buying a cheap kiddy pool (less than $10) and filling it with either sand or dirt. We can hide a few toys within the sand/dirt and let them dig it out. I went to the local dollar store and purchased some little shovels and a toy dump truck for her to play with in said box.
Beach days. Great idea of you’re close to one!
Picnics. There’s something so fun about eating outside. You don’t even have to go anywhere, you’re own backyard will do. It’s the change in routine that will have them entertained.
Treasure hunt. Take objects (ideally kids toys) and hide them outside having them find them based on description such as ”eye spy something that is red”.
Garden. Kids love helping. Something like a garden is something they can help with (maybe something as simple as buying them a tiny watering can sort of thing). Have them help pick out flowers and I’m sure the first thing out of their mouths every morning will be ”flowers!”. They will love the added responsibility to help keeping it alive.

Keeping little ones entertained can be exhausting for parents. It’s so easy to run out of ideas especially with very active toddlers. I hope there are a few new ideas for you and your little one. Bring on warm weather!

What other frugal summer fun ideas can you think of?

Easy Ways to Teach Your Kids About Money

June 3, 2014 | Leave a Comment

Teaching kids practical skills about money is challenging. Part time jobs or chores show earning money is not free, but there is little incentive to budget or save. We also want our children to be ‘kids’ and enjoy their childhood without overwhelming them.

So, how can we teach kids about money in a fun and easy way?

Here are some ideas to consider:

Use Technology:

Online apps make it convenient and effective to teach money skills at different stages. Our kids are often more tech savvy then us, which puts them more at ease when learning online.

Some ideas include:

High School and College Kids:

Credit cards, car loans and student debt are buzzwords for teens. Many young kids focus on what debt buys, with little regard to the long term effects.

Online simulators show kids what happens after they get a car, attend college or go on shopping sprees. These sites also give lessons on choosing the most cost effective loans. Sites such as CreditCardSimulator tailor to newbies who have never had a credit card or auto loan. Kids can browse fictional cards with different APRs and fees. After choosing a card, you see what the monthly payments and total cost of favorite products would be, which may be startling.

Tips:

Start early! Parents and kids should use a college loan simulator BEFORE applying to universities. Yes, college can be an investment, but what colleges offer the best ROI?
Online tools help students see what they’ll be facing after graduation. For instance, does a $700 monthly loan payment justify a particular school? Can the same objectives be met with a $35O payment from a comparable college? This gives kids’ perspective on choosing a school that most meets their needs.
Don’t forget about camps and workshops. Many colleges or companies offer free online courses or meetups that prepare students for college life and debt. The USC Keck School of Medicine unveiled a summer camp that provides internships and a chance to meet with current students BEFORE applying to school. Funded by USC alumnus Elliott Broidy, the camp began in 2013.

Young Children:

Virtual worlds allow kids to learn about juggling scarce resources. Kids earn virtual money through games that buys cyber clothes, pets and toys for their avatars. If your kid wants a puppy and new clothes, they must prioritize their budget or earn enough to buy each.

Most sites connect children from across the world for interactive games and activities. You should review each site for online security and filters that prevent foul language or unruly behavior.

Tips:

Be involved to advise without making decisions for them. For instance, if a child has to choose between a puppy and clothes; ask what they feel is most important? They’ll likely say ‘both’, which forces them to make a money decision.
Some critics say these sites encourage children to cheat for more money. Of course, what parents feel is appropriate will vary. If a child cheats for quick cash to buy a puppy, you may ask if this is the right way to earn something. Parents who notice a pattern of ‘win at all costs’ behavior may check if it spills over into school, play or other real life activities.
Choose a site that puts your child in a position to succeed. Each child is different and some sites may have too little or too much to offer. If your kid is easily frustrated, a more basic platform may be a good way to build their confidence.

Summary:

Money is a subject that follows us throughout life. We can teach kids how to make wise choices with technology and guidance.

Photo Credit: konsgky