May 22

Why Teaching Children About Finances is Important

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Children, Finance

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"Lemonade" Messaging is ClearThe following is a guest post…

Now more than ever, it’s so important that children become financially aware from a young age. The changing times mean finances come up more and more. Fortunately, they also mean that there are countless ways for you to help your kids become financially literate long before they leave the nest.

Why Bother?

Sure, it may seem unnecessary to teach your kids financial awareness before packing them up for college. But that’s simply not the case. Young adults today know considerably less about finances than earlier generations. And experience using financial products gives them a solid foundation for when they’re on their own. Understanding the benefits that looking through Fisher Investments NASDAQ profile can have on your finances. Talking to kids about money from a young age, using everyday moments like shopping for food or going to the ATM as teachable moments, goes a long way.

Not Your Mother’s Piggy Bank

Piggy banks are a great way to teach even the youngest of children the value of saving. They’re no longer the simple piggy banks of old. Today, there are piggy banks out there that really teach kids the value of budgeting and choosing what to do with their own money. You’ll find piggy banks that come with compartments like save, spend, and give to kick this lesson to a higher level.

Simple Savings With Allowances

One tested method of teaching kids about money is an allowance. Try giving an allowance but requiring your child to use some of it to pay for monthly expenses. Then increase the allowance over time, requiring that your child pay for more of his or her own things. Over time, he or she will become less and less dependent and learn about saving.

Next Step: Prepaid Cards

Once your kids have a handle on the allowance system, graduate to prepaid cards. This will give a sense of independence while practicing real-word tools in a low risk environment. You’ll have the option of loading the allowance at a given interval—say, the 15th of every month—and then make kids pay for certain leisure activities with the card. Make it clear that they won’t get any more until the next time that date rolls around to teach budgeting.

Savings and Checking Accounts

By opening an account with your kid, you’ll have an easy way to teach about important issues like account maintenance, fees, and interest. If you want, give an incentive for kids to save like offering a match for putting money into a savings account, like 25 cents for each dollar put in. This will prepare kids for going out in the world where they need these accounts.

Finally: The Credit Card

When you think your kids have learned enough, it’s time to teach them about credit cards. Learning young will help them stay out of trouble later when they’re really on their own. Either make your child an authorized user on your account or help to open a student card under their name. They’ll stand more ready for college’s independence.

Teaching children about finances prepares them for a life without your lifeline. This way, they’ll know how to navigate the world of finances and stay out of trouble when they’re on their own.

photo by: VividImageInc

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May 21

5 Ways to Budget More Efficiently

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Finance

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budgetThe following is a guest post…

In today’s current economic climate it isn’t always easy to make ends meet, and often debt and expenses can pile up quickly. If you are not in a position to increase your income and need to look for ways to budget more efficiently give these 5 tips a try and see if you can manage your money in a more effective manner.

Use available budgeting resources

Free budgeting tools (such as Mint.com or FinanceWorks) are easy to find online, and rather than spending hours making your own spreadsheets and trying to create your own systems take advantage of these reliable options. You can track your spending, create a complete budget, compare monthly expenses and keep a running total of all your expenditures electronically, thus reducing the chance of losing track of necessary details along the way.

Identify cash leaks

If you withdraw money from an ATM and then have no idea where you spent it, stop withdrawing money at an ATM! Withdraw a bulk amount once a week and once it is finished do not withdraw any more unless absolutely necessary. By using your debit card rather than cash you also have a record of where you spent money, rather than just knowing you drew a certain amount and now it’s gone.

Essentials come first

Draw up a budget that consists only of your essential payments before adding anything else to the list. Beware of luxuries that are masquerading as necessities and where possible cut back or replace them with something cheaper.

Swap your options

To budget more efficiently you need to determine if there are areas in your life where you can cut back, but still enjoy activities in a different form. For example, if you enjoy playing casino games rather switch to online or mobile options where you can play at sites like http://www.bookofraspiel.de in the comfort of your own home.

Lower your income

The best budgets allow you complete financial freedom and stability. One smart way of attaining this goal is to pretend you earn less than you actually do. Try and budget using 90% of your income and save the balance in an account you do not utilise on a daily basis. This will allow you to save for big items or have an emergency fund should you need it, whilst also teaching you to live on less and practice more effective money management.

 

photo by: 401(K) 2013

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May 16

Is it Worth it to Make Your House Energy Efficient?

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Finance

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HousingThe following is a guest post…

Have you been wondering about your home’s energy efficiency lately? Seen the neighbors upgrade their homes in interesting energy-efficient ways and wonder what you’re missing out on? In order to get a good grasp of your home’s current level of energy efficiency, start with the EPA’s Home Energy Yardstick and move on to hiring a specialized energy auditor if necessary.

Once you have identified your needs, the recommended steps to transforming your house into a more energy-efficient one start with focusing on the house’s shell, e.g. walls, windows, doors, then moving to more efficient systems and appliances or to clean energy generation, e.g. solar.

Sealing and Insulating

Insulation from the cold of winter and the heat of summer can easily reduce energy costs in any home. It’s important not to forget insulation in critical spaces like attics, where extensive heat losses can occur during the winter. Every home is different, so predicting leakages can be sometimes senseless, but leaks are often found in seams between the foundation and wood framing, along baseboards, around electrical boxes, and around fireplaces. Experts can utilize an infrared light or “blower-door test” to identify existing gaps that need to be sealed if your house is already insulated. If you are not the first owner of the home and have little knowledge of the existing insulation, it would be wise to spend a bit extra on an assessment.

A basic upgrade of your home’s shell can save you more than $200 a year on your total energy bills, making for a significant return on your investment in just a few years.

Doors and Windows

Your home’s windows and doors are potential sources for serious air leaks and if you’re interested in replacing them, make sure to choose models with high insulation values. Some bargain shoppers instead just cover the windows with thin plastic sheets from their local hardware store. Though not a long-term fix, it will make-do for this winter before you have time to invest in replacements, which are, in fact, better for those looking for long terms returns on their energy investments.

Heating and Cooling Equipment

If you are looking for even more energy efficiency and have more to invest in the project, the next step is to shop around for heating/cooling systems with EnergyGuide labels or the ENERGY STAR logo. If you can only afford one upgrade at this time, keep in mind that air conditioning is more energy-efficient than heating, mostly because of the insulation failures that let the heat escape. And if you cannot afford a heating system upgrade at this time, be sure to invest in a programmable thermostat to save lots of money while you sleep and while you’re away. The bottom line is, though, if your current technology is more than ten years old, you are not taking advantage of the latest energy-efficient heating and cooling systems, so you should consider an upgrade soon.

Overall Move towards Efficiency

An overall move towards an energy-efficient home has significant financial benefits, as addressed above, further incentivized by the government’s Federal Tax Credits for Consumer Energy Efficiency. So when you file next year, you can expect a ten percent return credit on purchases of windows, doors, heaters, coolers, insulation, etc., making the investment pay off even more.

If all of the aforementioned structural changes are currently outside of your price range, consider taking some smaller lifestyle changes that can really up your overall energy efficiency. Lastly, it’s important to remember that structural changes will also require a few changes in your routine. If you decide on energy-efficient appliances, be sure you use them correctly!

This is a guest post by aspiring freelance writer Jonathan Mehlig for www.TexasElectricityProviders.com. Jonathan usually covers frugal living and personal finance topics and loves hiking in the Rocky Mountains in his free time.

photo by: james.thompson

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May 14

Saying Goodbye Is Hard To Do

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Family

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fin_familyOne of the most difficult things in life is to say goodbye to someone or something that you really care about. I’ve tried to start this post several times over the past few weeks, but the right words always seemed to elude me. I didn’t want to shortchange it or hurry through it…

On Monday, April 29th we had to say goodbye to our greyhound Fin.

The Diagnosis

It happened so suddenly that we hardly had time to process what was going on. We’ve had our house on the market for quite a while now, and we finally got an offer in the early part of April (a separate post about this is in the works, so stay tuned). We had been packing boxes and moving them to my in-laws’ house and noticed that our dog wasn’t eating. With all the packing and everything, we figured he was just nervous and that he knew something was going on. So, we let it go a couple of days to see if his appetite would return after a few days of normalcy…

Two days passed, and he still wasn’t eating. He was also acting very lethargic. He’s always been a lazy couch potato, but this was getting extreme even for him. So, we called and set up an appointment with the vet (for a Tuesday) to have him looked over. After running some blood work, the vet told us that it was either an infection or lymphoma (cancer). He gave us an antibiotic in hopes that it was just an infection. He also gave us instructions to simply feed our dog whatever he would eat, which turned out to be canned chicken and instant rice.

After giving him the antibiotic for two days, our dog only seemed to be doing worse. He continued to lose his appetite, and at this point would only eat a few Beggin’ Strips. We called the vet and brought him in for further testing that Friday. He was officially diagnosed with lymphoma (cancer), and the vet said it was very aggressive. He said that chemotherapy was an option, but the fact that our dog already had underlying kidney problems meant that the likelihood of successful chemotherapy were not  good. And even it was successful, it would probably mean between six and twelve months of relative health before the cancer returned.

The thing is, even if we had wanted to pursue chemotherapy our dog wouldn’t have made it to the next week to get in. His condition deteriorated further over the weekend. He wouldn’t eat anything, and his breathing was becoming heavy. With tears in our eyes, we knew it was time to say goodbye and made the call to the vet. The following Monday morning was the worst morning I’ve ever had. Mondays are bad enough in general, but this was taking it to a whole new level. We cried, said our goodbyes, and held our dog one last time.

Dealing With Grief

Going through this was one of the most difficult things I’ve ever been through. I’d never really lost anyone before that I was really close to. I lost two grandparents when I was a kid, but I don’t really even remember what that was like. I lost another grandparent when I was in college, but we weren’t that close. This was my first real taste of loss, and it was definitely bitter.

Oh, I know there are people who will read this and say it was just a dog. But our dog was just as much a part of our family as me, my wife, and our son. He was a great companion for all of us and was the best dog we could have ever asked for. I like to think the feeling was mutual. Our dog always seemed to love being with us just as much as we loved being with him. He loved his walks and bye-bye trips. After spending the first few years of his life at the racetrack, I think he truly appreciated having a home where he could relax and just be a regular dog for a change.

He got along great with our little boy. When we brought our baby boy home from the hospital, the first thing our dog did was walk over to the baby and give him a little kiss on the side of his head. They were instant buddies. Fin looked out for our little boy and was always very careful around him. As our baby boy grew into a toddler, their bond only grew. They were supposed to have several more years together, but things don’t always work out the way they should.

Goodbye Fin. You were truly a wonderful dog and we miss you dearly.

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May 13

Focus Points of a Home Inspection and Why They Matter Financially

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Finance

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3D Home Inspection ChecklistThe following is a guest post…

Buying real estate is a massive investment, both mentally and financially. Many resources go into the process, and it’s important that the preparation and execution of the transaction go as smoothly as possible. With a purchase usually on the order of $100,000, care needs to be taken to ensure that a prospective property meets the desires of the home buyer.

A critical area of the housing search to focus on is the inspection leading up to a sale. While this step in the process is commonplace in American real estate, it’s imperative that prospective owners pay particular attention to certain areas of the house. Major issues that go unnoticed can be very detrimental to the value of the house down the road. If you are considering the purchase of realty, make sure to focus on these areas of the property:

Roof

Not only is a roof the shelter over your head, it’s also a property feature that helps prevent major damage to the structure of your home. Water damage and other issues caused by a faulty roof can lead to severe problems with regards to both the interior and exterior of a house. When inspecting any prospective house, make sure to consider the roof a strong priority. Some red flags to look for:

  • Poor shingle coverage or quality: if there are missing or damaged shingles, the roof is most likely worn to the point of being a legitimate problem.
  • Water damage in ceiling: if there is noticeable water damage, bubbling or cracking along the ceiling lines of the house, the roof could be leaking.

Take a note: When it comes to assessing the roof during an inspection, it’s a great idea to ask the current tenant when their last roof inspection was and also for a receipt from any recent upgrades or replacements.

Foundation

For some reason, people tend to overlook the foundation when it comes time to assessing a property. The foundation is one property feature that can compromise a large portion of a house’s value, and therefore should be at the top of any inspection checklist. If you are scanning the home and notice any cracks, take a note of it and ask questions. Additionally, if any of the interior floors are sloped at an angle or the walls appear to be leaning at all, you could have some trouble on your hands.

Take a note: The foundation of a property is the backbone of a home. Make sure that the foundation of any prospective home is in great condition before making a purchase. The value and purpose that this part of a house provides makes this nearly mandatory.

Sewer line

The sewer is a feature that is both under noticed and very important. Without a well-functioning sewer line, you can only begin to imagine the problems that’ll be waiting. Sewer backups can potentially cause thousands and thousands of dollars’ worth of damage. Most housing inspections do take the sewer into account, but it’s important for you to take it a step further. You need to have a professional come over to test the structural makeup of the line and see if he or she feels any serious implications are on the horizon.

Take a note: When buying a house, the last thing you want is to start paying for major maintenance issues right off the bat. Even worse are the maintenance problems you could have prevented with a thorough inspection. Sewer line complications are one of these.

Potential homeowners should always make a calculated decision when it comes to buying a house. After all, it’s a massive financial obligation that is often the end of a long savings plan and the beginning of a new budget. Leading up to the actual closing date, many decisions have to be made. Taking an inspection lightly should not be one of them! Take your time and make sure the above features, and all others, are the quality you deserve.

This is a guest article from Tim Richmond. Tim writes about the mortgage industry, real estate, green building, personal finance and home ownership. He currently writes for the Native American home loan specialists 1st Tribal Lending.

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