Archives for July 2014

Will Having Another Baby Be Cheaper the Second Time Around?

July 30, 2014 | Leave a Comment

In the last few months my husband and I are coming closer and closer to the conclusion that we will likely have another baby. Not for a few more years but if we have any control over the situation we would like to have another. More for the fact that we want our daughter to have a sibling. Both my husband and I are very close to our sisters and we want our daughter to have that relationship too. Though not the only reason, a big reason we’re choosing to wait to have more kids though is that kids aren’t cheap!

I really don’t think kids have to be as expensive as some would make them out to be but they’re still far from free. The two biggest expenses we need to consider is me being on maternity leave for upwards of a year (and losing some of my income) and daycare.

Preparing the Monthly Budget

Ideally we have another child at the same time our older daughter is preparing to start school. Once our daughter is in school she will no longer need full-time care and likely just a few hours in the afternoon until my husband and I are off work. This will save us hundreds of dollars a month for her current daycare cost. Having an older child in school while the younger is in daycare will definitely be the cheapest option in terms of saving on daycare costs initially.

As we come closer to preparing for me to be on maternity leave our monthly budget will look much better as we will have a significant amount of debt paid off as well. The peace of mind that comes with not having additional debt payments while on a reduced income will be great!

Saving on Baby Stuff

Most of the toys and baby items we bought and received as gifts for our daughter were very gender neutral which will save on upfront costs (and even if they’re not I have no issue with my potential son playing with his older sisters pink toys). There are very few baby ‘’items’’ we would need if we have another child. If we have a son we would need some clothes (most second-hand) as our daughter’s wardrobe is very girly and I draw the line at riding her pink motorcycle.

If possible, I will breastfeed again saving on formula and because we already own a pump and storage bags I wouldn’t need to re-purchase these.

Other than things like new savings account for post-secondary which will come with any future child, the other costs will be very limited. We will eventually need a second bed for him or her and some clothes, but because we have chosen to keep all of our current child’s things there is very little we actually need. Paying off our debt will also ensure I have a stress free maternity leave!

Did you spend less on your second baby than you did buying things for your first child?

Is Competition the Key to More Affordable Loans?

July 30, 2014 | 1 Comment

Regulations imposed by the Financial Conduct Authority (FCA) have been responsible for culling many payday lenders that are unwilling, or unable, to abide by the tough new rules. The mass exodus of payday lenders from the market in the last few months is the result of the FCA’s strict regulatory regime, with a third of the UK’s 210 payday lenders failing to apply for permission to operate. This is in addition to the 30 or more payday lenders that had their licences revoked by the Office of Fair Trading (OFT) before the FCA took the helm.

The result is a cleaner, fairer industry. But could there be a risk that the lack of competition resulting from this cull is starting to have adetrimental effect on the priceof payday loans?

Competition and Markets Authority investigation

As a result of the perceived lack of competition, the Competition and Markets Authority (CMA) recently launched an investigation to discover what benefits, if any, consumers would experience if steps were taken to encourage alternatives to payday lenders likeWonga. While the full report will not be completed until later this year, the CMA has already released a snapshot of the problems it has uncovered to date.

One of the biggest problems facing the industry is the tendency for prospective borrowers to make their lending decision based on the speed they can access the cash, rather than the overall cost. This is causing typical payday loan customers to pay over the odds by between £5 and £10 per loan.

Recommendations for change

To solve this problem and make it easier for consumers to make a decision based on price, the watchdog has proposed the creation of an independent price comparison website. This will help consumers to quickly and clearly establish a picture of the overall cost of a loan that has been tailored to meet their specific needs.

The CMA also believes consumers will benefit from a clear breakdown of the costs, along with periodic statements of their debt, if they fail to repay their loan by the agreed time. Another measure proposed at this early stage includes the clamping down on payday loan ‘middlemen’ or brokers, who generate leads before selling them to the highest bidder. In such cases, many consumers are often unaware they are dealing with a lead generator.

The demand for payday loans

One fact the investigation cannot fail to recognise is the demand for payday loans, which is certainly here to stay. The payday loan sector has enjoyed considerable growth in the last few years, so much so that these small changes alone could result in a consumer saving of £45million per year.

A spokesperson for the Competition and Markets Authority, said: “Short-term loans like these meet a very clear need for around 1.8million customers a year. This level of demand isn’t going to go away so it’s important to ensure this market works better for customers.”

A dearth of viable alternatives

Much of the demand for payday loans is thought to be driven by a lack of viable alternatives. However, in a recent poll of its customers by payday lender Wonga, 77 percent of respondents said they would rather take out a payday loan than use short-term credit sources such as credit cards or overdrafts.

Consumer organisations such as Citizens Advice believe the best way to increase competition is to breathe new life into the industry with affordable alternatives such as ‘micro loans’ from banks. However, it is unlikely the banks would be able to compete with the speed and convenience with which payday loans can be sourced.

The CMA investigation is ongoing. In the meantime, further clampdowns on the sector are being introduced by the Financial Conduct Authority (FCA), which is responsible for regulating the industry and ensuring consumers’ interests are put first. This hands-on approach is certainly having the desired effect, with only those payday lenders willing to abide by its higher consumer protection standards still operating in the industry.

Author Bio: James Williamson is a finance writer, food lover and compulsive coffee drinker who fights the good fight to protect consumer rights.

Do you believe payday loans are overpriced if they are used as a short-term option? Would you be able to source short-term credit elsewhere if payday lenders were not in operation? We’d love to hear from you, so please leave your thoughts in the comments section below.

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3 Life Skills Every Child Needs To Learn

July 23, 2014 | 2 Comments

With a two year old at home I won’t have an empty house for a number of years but that doesn’t mean I’m not thinking about the skills she will require to be a self-sufficient young lady when she does eventually leave.

A kid I know is getting ready to move out in a few weeks and I’m fairly certain he couldn’t boil water if his life depended on it. Though he is brilliant academically he is seriously missing main life skills. Something I hope to avoid with my child.

Cooking

Teach your children basic cooking and baking techniques.

They don’t necessarily need to know how to whip up an apple pie from scratch but they should know how to confidently prepare a few key heathy recipes. Getting children involved in the kitchen at an early age is a great way to instill their skills. Though having my two year old cooking with me sometimes can be extra time consuming and messy she is having fun and learning some basic skills.

Cleaning

There is a difference between tidy and clean. If kids clean it usually involves tidying and putting things away. Though this is a good start, by the age of moving out, kids need to learn how to appropriately clean. The nitty-gritty of getting and maintaining their space clean. They need to know how to effectively clean things like toilets and ovens. Too many of my peers don’t bother to do things like clean the bathroom taps, it just gets yucky!

Budget and Money

This is a skill everyone needs to know but before your child is sent out on their own, they need to know how to budget and control their money. I have seen (and experienced) too many cases of mismanaged money simply because they didn’t know what they were doing.

If they’re ready to move out and control their own finances they need to know how to do it! Money skills are something that are learned and built up over time but even if they’re not it’s never too late to teach them! Establishing open communication about money is necessary too. Let your child know they can come to you for help if they need to. It’s much easier to help them in the beginning and help get them back on track then find out they’ve racked up a ton of debt and are in over their head.

Life skills are something that are established over time. Sometimes we as parents get so worked up in things like making sure they succeed academically or make the team that we forget the importance of very basic skills, skills that will take them very far in life!

How are you preparing your children for moving out?

How to Encourage Your Children to Live a Green Life

July 18, 2014 | Leave a Comment

Going green is a family endeavor. It can only be successful if every member of the family takes part and does his best. Children learn by example, no matter how many times you talk to them about doing something, they learn best by seeing you do it. Therefore, it goes without saying that the first step in encouraging your children is to practice being green yourself first.

Have a Go Green meeting

Schedule a family meeting; have it on Saturday or Sunday morning, when everyone is still at home, even any older children. Start the conversation by asking what they think of the environment to determine their awareness and understanding.

Use this conversation to educate them further regarding the environment and the actions they can take to help protect it. Tell them about any green practices you are already a part of. Tell them of any celebrities they know or like that are also into saving the environment. It’s even better if it’s someone of their own age so they can have a like-minded role model to look up to.

Make a Go Green shortlist

Following your meeting, make a list of all the green practices that the family can participate in. This can include household practices like conservation of electricity, composting of household waste or recycling plastic and paper wastes.

Plan a weekly Go Green challenge that the family will take part in. Make it a fun challenge for everyone to participate. For example, for Week One, have the family participate in energy conservation. It can be lights out by a certain time of night, or having the computer shut down instead of on standby mode overnight. For Week Two, recycle paper and plastic. You can assign certain tasks to each child, if you have more than one child. The older sibling can take care of recycling plastic and paper products and selling them to a recycling factory, and you can assign the younger child to sort through his belongings for scraps of paper he can recycle.

Planting is also a Go Green initiative that children can understand, even the younger ones. Start off by planting herbs that they normally eat. It can be parsley, cress or a mint plant. It must be something they recognize so they will enjoy doing it.

Keep updated on Go Green initiatives

There are more and more accessible green initiatives to take part of. The government has launched the Green Deal Initiative that allows homeowners to recover hundreds of pounds of cash back for energy efficiency improvements.

Homeowners can get as much as £1,000 cash back. Tesla Motors, an American company has successfully manufactured electric cars that are viable for everyday usage. The Model S is a luxury car that happens to be run by electricity and not gas. The company ships the electric cars to the UK. Its supercharger network has reportedly delivered more than 1 GWh of energy to its line of Model S cars. This is equivalent to gas saved amounting to 168,000 gallons and an offset of 4.2 million pounds of carbon dioxide emissions, and that’s just for one month – just imagine a whole year!

4 Tips to Prepare Kids for an At-Home Emergency

July 16, 2014 | Leave a Comment

The other day while my husband was at soccer, I was home while my daughter was in bed sleeping. I was prepping meals for the next day which included cooking up some bacon. I always cook my bacon on parchment paper in the oven. When it was done, I removed the greasy tray only to have the parchment paper slide on the tray splashing hot bacon grease down my forearm and hand.

Though it hurt, a lot, I wasn’t in any immediate danger but it did get me thinking about me being alone with my daughter and what I may do if it was a bigger deal. How prepared would she be? In our specific case, she’s only two so there’s not a whole lot she can do but as she gets a little older there will be things she needs to learn and understand to help prepare for emergency situations.

First Aid Help

Every home should have a first aid kit in an easily accessible location. Not just for the kids but in case of actual emergency you’ll want to get to it, fast! Our first aid kit is in a bright red zippered bag in our hall closet. It is sitting on the lowest shelf where, if I needed my daughter’s help she would be able to understand based on simple commands like ‘’get red bag’’. I’ve already started explaining that we don’t use the bag unless we absolutely need to if we’re hurt (to limit how often she attempts to access it).

Emergency First Aid and CPR

I think it is important that both children and adults take an emergency first aid and CPR course. This was part of my babysitting course when I was eleven years old and have maintained it since. Not all kids take this course, nor do they necessarily maintain their certification. More and more employers are requiring this upon employment and rightfully so, you never know when you may find yourself in a situation that may need either CPR or emergency first aid and being equipped will only help the situation.

Fire Exits

Children should know where to go in case of fire. Stress how important it is that they get out and not attempt to take anything should they find themselves in a situation.

911

When I was in the fourth grade, my friends thought it would be funny to prank-call 911. Yeah, we learned our lesson really fast. I seem to recall my friend’s mom (the chaperone) making us to yard work for her to pay the fine she was charged. To be fair, I really didn’t understand 911 or the real importance of it. When children are young, talk to them about what it is and how and when an appropriate time to use it is. As they get older explain the difference between true emergency and non-urgent care (911 vs. a call into a family doctor).

Having an emergency at home can be a scary and stressful time, more so on children because they often don’t understand what’s going on. If you prepare them for such situations it can make a stressful situation much better.

How have you prepared your children for an emergency situation at home?

Is Your Family Prepared For an Emergency?

July 9, 2014 | Leave a Comment

Though it’s early in the season, we currently have our first hurricane among us.

Where I live geographically doesn’t get many hurricanes, and when we do they’re usually quite downgraded, but we do still get a few tail-ends and post tropical storms being on the coast. It wasn’t long ago that we were hit quite hard and had thousands of dollars worth of damage done. Our city as a whole received a huge wakeup call from Mother Nature and we no longer mess around!

Since living through the first bad hurricane 11 years ago, and many post tropical and winter storms, we have become quite educated in the emergency preparedness department. There are the basics that most people remember like having food and water on hand but there are many more steps into assuring your family will be safe and sustainable for a few days with potentially no power for you, or your entire city.

Prep Your Property

Make sure you ”baton down all the hatches”. Clear your decks, porches and yards of any debris. A lot of the damage done in our last storm was from flying debris. If you have time and can predict stuff like low-lying tree branches that may break, deal with them. Bring outdoor plants inside and secure all furniture that can’t move.

Medication/Medical Supplies

During the hurricane a few years ago, pretty much our entire city was without power for at least a few days. Pharmacies had to close, and people were running out of medication. I remember my mom, who is a pharmacist, going into work and losing thousands of dollars worth of refrigerated stock. She was also playing ”catch up” and dealing with people who had run out and may not have been in the best medical condition. In today’s technology, storms are usually pretty well predicted. Listen to any warnings and make sure you stock up on any medication for you and your family at least for a few days. Also have a first aid kit on hand.

Baby Supplies

If you have a baby, stock up on supplies like diapers, wipes, Tylenol, Advil and benedryl, you never know what may happen! If you cloth diaper, buy disposable to have on hand since you may not be able to do laundry to wash your cloth.

Propane/Gas

If you have access to a BBQ, even a small camping stove, make sure you have some propane on hand. We relied on this mode of cooking for almost a full week during the last bad storm and as we prepare today for power loss I know we had a mode to cook some food. Also make sure you have a full tank of gas because there’s a possibility the gas stations may not be open!

Power Sources

Obviously power loss is a big deal in storms. Have backup batteries, candles, lighters, solar chargers and ideally a solar-powered radio. You can really never have enough batteries on hand. Also think about kids toys which may require batteries, if you have no power and need to keep them entertained, batteries may be required for your sanity 😉

Entertainment

Make sure you know where family fun stuff is. Books, games, cards, coloring books. This is also good in case you are required to leave your house and need to grab some things relatively quick.

Pet Supplies

This is all too overlooked. Heck, I just did it this week. Though I didn’t forget the food I did forget to buy kitty litter so hoping if we lose power it isn’t for long and can get to a store in the next day or so! Again, if you have to leave make sure you’re not looking for the pets cage or carrier. I know our cat carrier is often buried in a closet somewhere.

Though storms, no matter how well predicted can still be very unpredictable when they actually hit it doesn’t hurt to be prepared! And no, I don’t believe you can ever be too prepared.

How do you stay prepared for emergencies?

5 Ways Busy Moms Can Find More Time

July 8, 2014 | Leave a Comment

As a parent it can feel like you have no time to yourself.

You’re juggling working, cooking, cleaning, and of course, taking care of your little ones.

So if you could free up a little bit of extra time in your day, what would you do with it? Take a nap? Read a book? Watch TV? Take a hot bath?

Oh, the possibilities are endless!

Here are five easy ways for you to make more time in your day.

#1 Prepare Your Meals in Advance

This is something that requires a little extra effort but will literally free up about an hour a day for you!

Start by making a meal plan. Try to make at least 3-4 of these meals crockpot friendly.

Now one day a week (my family does this on Sunday) prepare as much of your dinners as possible.

For crockpot cooking you’ll simply add all the ingredients you need into one freezer bag and pop the bag into the freezer. Then when it’s time to make the meal empty the contents of the bag into the crockpot and when dinner time rolls around you’ll have a delicious meal and not much clean up.

# 2 Use a Mobile Payment for Small Purchases

Do you have to dig through your purse to find your wallet? How long does that take?

With new mobile payment options you can simply link a credit card to your banks mobile app for easy access. You won’t even have to worry about bringing your purse with you.

If you’re out for a quick stroll with the kids you can pay by mobile for all your small purchases.

# 3 Clean Smarter

With little kids cleaning is an everyday chore.

One way that I’ve found to make this easier is to sit a plastic bin in the rooms the kids play the most.

After the kids have drug out all of their toys you can simply throw them all in the plastic bin and then dump them back in the toy box.

This solution works well for laundry too.

#4 Pick Your Kids Clothes in Advance

If you have little girls who like to take an hour to choose their outfits in the morning, you can save time by having them do this at night.

Have each child quickly choose what outfit she’ll be wearing (give them ten minutes) the following day. Lay the clothes out in a central spot.

This will make your mornings run much smoother.

#5 Run All Your Errands at Once

Before you head out to the post office or grocery store make a list of all the errands you need to run for the week.

By consolidating your errand running into one day you’ll save not only time, but also money spent on transportation.

What other ways can busy moms save time?

What to Get The Graduate in Your Life

July 2, 2014 | Leave a Comment

Semesters are coming to a close all across the world. Soon school hallways will be emptying out and summer activities will be ramping up.

If you enter any store this time of year, there is zero shortage of graduate related gifts but the sheer volume of options does’t make the gift hunt any easier, if anything it makes it more difficult! Here are a list of ideas what may be appropriate for the graduate in your life.

Young Child

While I personally don’t agree with rewarding young children for ”graduating” to the next grade some people feel it necessary. At this age, and really, lack of major milestone, it doesn’t have to be anything too fancy.

A card, maybe a dinner out. There really shouldn’t be too much emphasis on this age. (note: If the child overcame a major milestone such as doing really well in a subject they’ve really struggled with and worked extra hard, I may argue a bit differently).

High School

This is the first big academic milestone for most. Sometimes it’s the only academic milestone since post secondary isn’t for everyone. There are the usual graduation ceremonies and proms that you could offer to help with. As part of my graduation gift my mom paid for my prom-day stuff (half day at the spa) which I would not have spent on myself and really was a nice treat (even if I left with eye shadow that would make any hooker jealous).

Another obvious option may be to offer money to be used for post secondary if you know they will be attending. If you know they’re going to university or collage go to the local campus (if you can get there) and buy a book store gift certificate or campus shirt or sweater. They’ll be excited to wear their new schools name!

Post Secondary Grad

Finishing a post secondary diploma or degree is a huge accomplishment. Years of hard work have finally paid off and they walk across the stage for a final time. They will be handed a piece of paper symbolizing so much about them, offer to have their degree framed as a gift. They will, after all want to display it proudly.

A watch is always a timeless gift too (make sure give the gift receipt though in case they need to exchange it). Sometimes the student is about to embark into a professional world which may require a new ”grown up” wardrobe. Offering to help or provide a gift certificate to allow them to start this collection is both practical and thoughtful (and no, there is nothing wrong with a gift certificate).

And sometimes the best gift is your time. Especially if you’re travelling from afar to see them graduate, your presence is the gift. Don’t feel required to give more than that! Sharing memories and time are the best gifts of all.

What is the best gift you either received or gave to a new grad?

How to Afford Home Improvements

July 2, 2014 | Leave a Comment

Many homeowners are attempting a summer makeover this year, to complete much needed works to their property. Whether these are essential works (such as replacing that old dodgy window with a double glazed one) or not-needed-but-really-wanted improvements (such as decking some of your patio), stumping up the money can be tough. So do you give up on the idea altogether?

The problem with saving money

Saving your money is proving more difficult, so people are looking to alternatives. Let’s look at the figures, according to AOL Money. They claim that $29.02 is the average cost per day of raising a child from birth to the age of 21, $69.95 is how much it cost to fill a 50 litre tank with unleaded petrol in March 2014, and 1,454 is the number of people made redundant every day. Let’s face it – money is tight. Even those who have higher salaries are feeling the squeeze.

When we look at how much we are actually able to save after the day to day expenses we need to spend out on, we can see the average UK resident has $1,574 in accessible cash savings. However some studies by the ING Direct Consumer Savings Monitor reported that 27% of Britons have no savings whatsoever.

So do you ditch the idea of improving your home?

Improving and maintaining your home is important. As a homeowner, your home is an investment. You may want to sell it in the future, so you need to look after it. It is the single most important and expensive thing you own, so maintaining it is vital. Of course, some home improvements can be overlooked until you do have the money, but others (such as damp proofing courses) are an important aspect of looking after your home (and your family!)

Alternatives to saving money

We’re not telling everyone to go out and apply for loans. Of course, it depends on your individual requirements and circumstances. BUT there are methods of getting access to money when you really need it, and with careful financial planning and a solid repayment schedule, you may well benefit from it.

What about all the bad press?

Loan companies have received a lot of bad press as of late. If you want to get a loan, find a reputable company (not a loan shark). Ask friends and family about their experiences. If you need a new boiler and need to borrow £1000, look at the company’s interest rates and choose a loan company that can offer that sum. APRs are not always a good indicator – look at the individual figures. A company website should make this clear to you. For example – a look at probably the most well known online loan provider’s home page states you can borrow, as an example, $150 for 18 days with Interest of $27.99. Shop around and read the terms and conditions. Make sure you opt with someone who is not only offering you competitive rates but is also well known and publicised and adheres to the FCA guidelines. If you find a lesser known loan provider that is offering loans that are too good to be true – they probably are.

How are you going to repay?

Don’t overlook repayments. Think about how you are going to repay the loan in the time frame. Will you be getting a bigger pay packet next month? Is it that you had an unexpected bill, but things should settle down to relieve extra money in the next few weeks? Perhaps a partner is getting a bonus – whatever it is, make a plan for repaying.

Don’t think too big

So – you qualify for a loan of $20,000. Hurray! But that doesn’t mean you apply for it. You don’t need $20,000, so don’t over think things and aim too high. Remember, anything you borrow you must pay back. It isn’t free money, although it does feel like that when you first apply. Do you really need to knock that wall down and have a big/kitchen diner? Don’t be over ambitious!

Making the difference

Many financial experts would agree that applying for a well-placed and well-structured loan from a reputable company can help you, and can really make the difference in your finances.

With a loan, you can invest your money into your home. This is especially useful if you want to sell your property and need to get it up to estate agent standards!

If you rent your home, it may still be worth investing in it. If you plan to live there for some time, paying for it to be decorated might help it become more homely for you. However, remember that essential works are for the duty of your landlord. Dodgy boilers, cracked windows or damp proofing courses are all their responsibility, so don’t fork out for something which isn’t your place to.

Finally…

In summary, a loan can really help you to make ends meet in regards to your home. If you are financially savvy, and read up on your stuff, you are well placed to take out a loan. Don’t do so if you’re not sure about repayments though, or if you are desperate and haven’t thought things through. The money advice service online will help you with money issues of all varieties, and of course, nothing replaces the advice of a reputable financial advisor.