Tuesday April 22, 2014
Summer is around the corner, and that means the kids are out of school. It also means for working parents that it is time to find child care!
The options include:
- Daycare/school care
- Attempt to work at home
Unfortunately some of these are not exactly cheap, but might be your only option. For example I don't have the ability to have the grandparents around - too far away! So instead I use a combo of the rest. Over the years I have found ways to keep the costs down - especially when using camps.
I really like these as not only is child care take care of, but the kids get introduced to new ideas and skills.
Here are some tips to help you save on summer camp.
Thursday April 17, 2014
Recently Upromise by Sallie Mae released their latest findings in their yearly report on How America Saves for College. While some of the findings were predictable, such as people are not saving because there is no extra money. There was one findings that I found fascinating.
It was that those that were not saving for college had children that were less likely to have their own savings account. In fact of the non-savers 81% of those kids did not have a savings account, while 66% of the kids of savers did not have an account.
While the reasons for this and the points for debate and discussion could be numerous, the thing that really jumps out at me is that having a savings account is one of the best ways to increase financial literacy, and yet an overwhelming majority of kids don't have a savings account.
So I challenge you, start your kids financial education and start them saving for their own college by opening them a bank account today! (According to the same study only 18% of kids are saving for their own college).
Friday April 11, 2014
How Early Should I Start Teaching My Kids About Money?
I get this question a lot! My standard answer is as early as possible. The sooner they start learning the better off they will be. And if you have not started and they are nearing high school or college - start today. It is better to get them going than to teach nothing at all!
I started with my own son around the age of 3 1/2, by teaching him how to count coins. As he has grown the lessons have evolved and covered more topics. I can say for sure that his ability to grasp concepts about money is improved because we have always talked to him about it and not made it a taboo topic.
So if you are going to start as soon as possible, your next question is probably - what should I start teaching?
The easy one is if they are little and you still need to teach them to count money - start there! Outside of that it really depends on how old your child is and how emotionally ready they are to learn the concepts. Here are some articles that can help you get some ideas on where to start:
Five Ways to Teach Your Kids the Value of Money
Money Management for Teens
Top Four Things to Teach Young Kids about Money
Monday April 7, 2014
Recently T. Rowe Price came out with their annual kids and money survey. Once a year they poll parents and kids about the topic of money. The kids are ages 8 - 14 and from the same households that the parents are - so you would think the views would be similar.
Unfortunately a few very different college statistics stuck out:
- 38% of the kids were not sure if their parents are saving for college.
- 32% of the kids are saving for their own college.
- 29% of parents say that they will save for most or all of the kids college expenses.
- 53% of kids expect parents to pay for most or all of their college.
What do these statistics tell me? More kids think mom and dad will take care of than mom and dad actually plan on taking care of!
So what do we think will cover the gap?
60% of the parents think the difference in savings will be covered by scholarships.
While the chance of getting a scholarship are less than 5% for those kids with GPA's over 3.5.
We have a bit of a disconnect here on how college costs are going to be paid for - on both sides of the fence.
How can you fix this to make sure that you and your kids have the funds for college- or at least have the right expectations for college?
Talk about it!
Not sure where to start? Here is an article about how to set expectations for who is paying for college.
Have the chat before it is too late and student loans are the only option!