Kids Ain't Cheap

But They Sure Are Worth It

Archives for February 2015

Should You Buy Your Kid a Car?

| Leave a Comment

Should you buy your kid a car? This a question that pops up for parents with teenage kids and there is no easy answer. Here's what we think.I have friends who, for their 16th birthday received a car as their gift from their parents. This concept was totally out of the question in my house and most other friends, but there were a handful of kids growing up who were given cars as presents.

Depending on where you live, a vehicle may be a necessity to live your life; I’m not talking about you. I’m talking about the average suburban family who chooses to spend a bunch of cash (or in some cases financing!) to give their kid a car.

I Paid for My First Car

I didn’t need my own car when I was a teenager. My mom has a pretty decent work schedule that would allow me to have access to the car pretty frequently. I had a job and was required to help contribute to the gas used and I also gave her $25 per month to put towards insurance. To me this was fair.

I didn’t own my own car until I was 23 when it became a necessity with my university schedule. I had to be at clinic before any public bus could get me there from where I was living, and late nights at school were meaning me taking the public bus home alone and added a 50 minute commute (a drive I could do in 20 minutes).

When the time came for me to get my own (very used) vehicle I paid for it myself. I had a very limited budget but found a Toyota Corolla from an older man who couldn’t drive anymore. He sold it to me for $750, fully inspected.

We Won’t Be Buying Our Daughter a Car

When my daughter is old enough I don’t suspect we will be buying her, her own vehicle. If she wants one, we may help her in some way but it won’t be gifted to her without her asking and nothing will happen until she proves the maturity of owning a vehicle.

When she gets her first job, if she decides owning a car of her own is what she wants, then we will help her establish savings goals. It isn’t just the price of the vehicle, she will need to save enough for everything that comes with it (like plates, registration etc.). While we establish the budget and she is saving her money, she will still be driving with us in our vehicle where she will build her driving confidence. I also don’t want her owning a vehicle to take away all of her money because that’s just as irresponsible.

While we may help her financially, maybe matching a certain savings goal of her own, we won’t outright buy a vehicle for her sole use. In most cases I don’t think it’s necessary. It’s not like my husband and I plan on driving around town in $60,000 cars that we may worry she will crash either.

A car is a massive responsibility. Until she can afford the car, the maintenance, insurance and gas we won’t allow her to own one. I also want to have her build her confidence as a driver before owning her own vehicle. For these reasons ideally she waits a while before getting her own car.

Did you buy your child a car? Why/why not?

4 Personal Finance Tips for the Ages

| Leave a Comment

how to get by on a low incomeMoney-making schemes come and go, but stalwart money management methods do not have expiration dates. Of course, it is wise to adjust your financial strategy throughout your life, guiding your efforts toward the greatest returns. But some financial tactics simply never fall out of favor.

Ongoing financial success builds off of solid fundamentals, so instead of focusing on passing fancy, the most disciplined money managers stick to the basics. Building and protecting credit, saving, and living a life you can afford are chief principles of effective money management, so these cornerstones are worth a closer look.

Live Within Your Means

Though it may seem like an obvious point, maintaining an affordable lifestyle is essential for anyone wanting to stay solvent. With a steady income and fixed expenses, cash flow is easily managed from month-to-month. Freelancers and self-employed workers may face greater challenges reconciling irregular income and spending, but even entrepreneurs find ways to balance their books.

It is difficult to manage finances on-the-fly, so the best way to account for your expenses is to track spending, and then create a budget. Treat your personal cash flow just like a business would, staying atop deposit income as well as outgoing payables.

To create a workable budget: First, divide your customary buys into manageable categories, to illustrate exactly where your money goes. Next, fill-in payments and other spending to create a sample snapshot of your finances. Use at least one month’s worth of data, but try to accumulate budget information for a full quarter (three months).

Once you’ve determined where your money goes, it is easy to reel-in savings. Though fixed expenses, like mortgages and other recurring payments may leave little room for cutbacks, discretionary buys like entertainment, travel, food, and fashion can be pared for positive financial gains.

Strive to Save

It is easier said than done for many well-meaning families, who make ends meet with little room for savings. Even small sums go a long way; however, as money set-aside mixes with time to produce positive long-term gains. Whenever possible, designate a monthly sum to add to your savings, perhaps taken aside from your paycheck. As savings grows, the dividends it earns also appreciates, compounding its value again and again.

Savings accounts have not been terribly profitable in recent years, with returns sometimes failing to beat the rate of inflation. And to make any progress at all, deposits must be held in fixed-rate accounts for a particular span of time, before gains set-in. To make the most of your savings, consider investments with greater upside potential, like stocks and other holdings.

Protect Your Assets

The recent mortgage meltdown shed light on personal financial security, as hundreds of thousands of borrowers faced foreclosure and default. Many lost everything they had worked hard to acquire. To increase your financial security, your debt-to-income ratio must be preserved within reasonable limits.

Insurance cover is another essential feature of your comprehensive financial plan. Without adequate home and car cover, your assets are at risk. And additional policies may be required to cover mortgages, unemployment, and even disability.

Plan for the Worst – Hope for the Best

Sage advice for personal money managers includes a contingency plan. While you hope never to call on your emergency scheme, having one in-place protects you from financial disaster. An emergency fund, for example, covering 3-6 months’ worth of fixed expenses, hedges against income lapses and ensures your bills are paid until conditions normalize.

In addition to cash reserves, keeping credit lines available further enhances your ability to endure temporary financial hardship. When credit accounts are pushed to their limits, on the other hand, interest pressure adds to your problems and the safety-net disappears.

Wills and other documents carry-on financial responsibility in the event of your demise. Maintaining the proper documentation protects your family members and ensures your financial resources remain available to them.

Financial security is a lifelong pursuit, requiring commitment and discipline. While each situation is unique, time-tested principles bring success to dedicated money managers. To ensure the best outcomes for yourself and family, maintain an affordable lifestyle and protect your assets. Savings and backup plans add extra comfort, preparing you to fend off unexpected financial difficulties.

5 Awesome Ideas for Entertaining Kids While Stuck Inside

| Leave a Comment

Entertaining kids can be hard during the winter. Everyone just wants t get outside! If you've got cabin fever here are five ideas to try.It was only three weeks ago I was bragging about the beautiful winter we were having. It was temperate and overall pretty enjoyable. Then February hit. It has been a very long three weeks for us, dealing with a ton of heavy snow and ice like I’ve never experienced before. There is currently about six inches of ice on the walkway to our vehicle. Not fun.

Every day that we wake up my daughter asks if today is the day we can go to the playground and if the snow has melted yet. Unfortunately I have to say no. Playing outside in the winter can be fun but unfortunately we have been stuck inside dealing as the ice and extreme cold have made it impossible to enjoy fresh air.

Given that we have been dealing with serious cabin fever I have been looking for things to break the fever a little and this is what we have come up with:

Have a dance party!

Kiddo loves to dance so to get some exercise and lift our spirits a bit we blast music and dance in the living room. She has a ton of fun showing off her dancing skills and we’re able to burn some toddler energy off.

Crafts

Painting is something we don’t do every day since there is a little more involved than pulling out a box of crayons so kiddo is always excited to find out we’ll be playing with paint. I love the dollar store for craft supplies. For less than $10, I have months of supplies for days just like this. It’s amazing what some imagination and a few cheap supplies kids can come up with. Pinterest is a mecca of craft ideas for kids of all ages too.

Clean up

I know this isn’t the funnest idea, but if you’re forced to stay inside it’s a good time to tidy things up. I have been looking for a day to go through toys with my daughter and have her help decide which ones we can get rid of and donate.

Exercise

We own a treadmill which is great for weather like this, that is if you’re old enough to operate it. Obviously my daughter, who isn’t quite three, can’t use it but that doesn’t mean she can’t get some exercise in. YouTube is full of videos geared for young children’s fitness. Yoga, stretching, dancing are just a few. Watching a three year old do yoga is entertaining too.

Quiet time

This will depend on the age(s) of your kids but sometimes it’s nice to enjoy a little quite time with reading and games. This only lasts so long as I can attest to. We’ve already read all of her favorite books and played with all of her puzzles. It’s nice while it lasts though!

Sometimes I question my sanity for living in an area where this weather can be expected but all we can do is make the best of it! I know it won’t last forever and in just a few weeks I’ll be walking outside with no coat on and cursing the muddy ground. Until then though all I can do is beat cabin fever one day at a time.

What ideas do you have for entertaining kids in the winter?

How to Save Money on Last Minute Valentines Gifts

| Leave a Comment

235307eeaa4841ef9eb37df6e90293a3Are you looking to save some money on a last minute Valentine’s gift for your significant other or for one of your kids?

We’re getting down to the wire with only three days left until Valentine’s Day! But don’t worry there’s still plenty of time to figure out what you want to buy, especially if you don’t mind waiting a couple days until after Valentine’s Day to receive your gifts.

Here’s how you can get a great deal!

Look for Online Deals

Since we’re only a few days away from Valentine’s Day many retailers are sweetening their sales trying to get rid of the rest of their inventory. This makes right now and the days after Valentine’s Day the perfect time to buy.

If you don’t mind waiting until after the holiday to get a good deal that’s probably your best bet.

Use Coupon Codes

Coupon codes are only an internet search away. The problem is there are so many sites offering coupon codes that it can sometimes take forever to sift through them all and find the best deal.

I was super happy to recently learn that Groupon had rolled out Groupon Coupons. So you can now go directly to them to search for coupon codes! They have a ton of retailers to choose from, including Sears, where you could definitely find a great but inexpensive gift.

That makes it totally easy to find the coupon code you need and to also score the best deal. Plus you can browse their other deals while you’re there.

How Do You Save?

Waiting until after a holiday, shopping online, and using coupon codes are definitely my favorite way to save. The internet makes shopping and saving convenient and easy.

Do you have any tips for saving on last minute Valentine’s Gifts?

Where Are The Kids!? Missed Money Making Ventures

| Leave a Comment

There's an often missed money making venture for kids. If you have kids looking to earn some cash tell them they need to do this...Kids in my neighborhood, and seemingly every neighborhood of every friend and family member I know, are missing out on huge money making opportunities. What am I talking about? Shoveling snow.

Living in a winter climate, shoveling snow used to be a lucrative business for kids.

Growing up my sister and I actually asked for shovels for Christmas one year, not because we really wanted them but we really wanted the opportunity to make money using them. We used to go all around our block looking to see who needed help post snowfall. We would charge $10, $5 each, and save it all winter.

There wasn’t much competition in our neighborhood since we were the oldest kids by a number of years. Given that we had the monopoly on the shoveling duties we’d make out pretty well. Friends of ours a few blocks away would get frustrated since there were ‘more boys’ and could never make money.  Each storm we’d make an easy $50. Sometimes our neighbors would have the driveway done but ask us to do the walkway around the house or help shoveling off the deck so they can let their dogs out a little easier.

Since my husband and I bought our house, almost five years ago, we have only ever had one kid offer to do our driveway. When he approached us as asked if he’d like help for $15 we gladly paid. It allowed us to rest and him to make some cash. He did a great job but we haven’t seen a single kid since. They exist since we see them on a daily basis playing outside, and we live within walking distance to three schools.

Kids are missing out on a huge opportunity to make some money (and help their neighbors out). There is nothing I’d like more some days than to be more productive with my time than pushing snow around.

There were three days of no school last week due to school/storm cancellations and not a single kid knocked on our door. Maybe I should put a sign in my window that I will pay upwards of $20 to have it done? Another lady I knew was due to have her baby any day and her husband was sailing at sea with the Navy, she posted an add via online classifieds begging someone to help with her driveway so she could get out ASAP when baby came, and it took her three days to get a response!

Simple tasks like shoveling snow, mowing lawns and selling treats at yard sales are a great opportunity for kids to start learning about money. How to earn it, how to manage it and all the work involved. Learning about money can never start too young and there is no better satisfaction that earning your own.

Do you encourage your kids to go out and earn their own money? Would you be encouraging them to shovel if they lived in a winter climate?

Valentines Fun For Kids

| Leave a Comment

Are you looking for some cheap Valentines fun for kids? I spent only $15 to have an amazing time with my daughter. Here's how.I admit that I’ve never really loved Valentine’s day. I’m one of ”those” who believe it’s an over commercialized day which encourages us to spend money we otherwise wouldn’t out of guilt.

I won’t make my husband feel bad if he doesn’t show up at home with a dozen roses and chocolates and fully expect to cook dinner . I know a lot of people who love it though. They love everything about it, making reservations at fancy restaurants months in advance. Flowers delivered to work, roses at home and chocolate for dessert. While I don’t really ”get it” I respect that as long as people are happy, the over commercialized holiday doesn’t bother me.

Then I Had Kids….

A funny thing has happened since having a kid though. I love all holidays. I find myself wanting to celebrate every small holiday because I can make it fun for her. Kids love having fun and I love seeing my kid have fun. I’ve already bought her Valentines cards which she’s signed (scribbled all over) for her friends at daycare, and even bought her a little present. Something I never thought I would buy into, but kids just have so much fun with even the smallest of holidays I can’t help but have fun with it too.

Valentines day fun with kids doesn’t have to be outrageously expensive though! We spent a total of $15 and bought her valentines cards for friends, a small chocolate, some stickers and a toy she always sees in a particular store, which we got on clearance. There’s no doubt she’ll have just as much fun with the day as the kid whose parents may have spent significantly more money.

Here are a few fun, and cheap Valentines fun for kids ideas!

Start the day with all things red, pink, white and heart-shaped

I remember growing up,  my mom once made us pancakes and cut them with a heart-shaped cookie cutter. I, to this day, don’t love pancakes but those heart-shaped chocolate chip pink pancakes were delicious!  This would work for french toast as well. Adding a small drop of red food coloring in milk to make pink milk might be a fun idea as well. Paper doilies and sprinkling powdered sugar over the pancakes or toast also gives a pretty design that is sure to impress kids.

Special Treats

Every kid has a favorite treat. Spending time to make their favorite dessert or treat is a nice gesture. If you don’t have time (or baking skills) to make the treat pick it up in store.

Plan a family night in

Family fun doesn’t have to involve going out to spend more money. Spend Valentines Day with the family at home over a nice meal and some form of family fun. I plan on finding a few Valentines Day printables on the internet and giving the kid some crayons to go nuts with. She loves having us sit beside her and help her play with crayons. Might not be super romantic but she’ll have fun and when you have kids, as long as they’re having fun you’ll be happy!

Do you have any fun plans for your kids Valentines Day events?