March 20th, 2008 at 07:29am
Under Finance-4-Kids
He finally did it! My 9 year neighbor finally made enough from his allowance and yard work in the neighborhood to buy a PS3.
In early December I got a knock on my door, I answered there was my 9 year old neighbor standing there with a shovel. He asked if he could shovel my drive for a small fee. I asked how much and he said $15 (since I normally have my drive plowed for $20 this was a win for both of us). After he finished he came to collect his fee. I asked what are you saving your money for? He said I want a PS3 and my mom said I can get it if I earn the money.
During the past four months I have witnessed my young neighbor take on countless neighborhood chores to earn enough money to buy his PS3. I am happy to say that after only 4 months he earned enough money for his PS3 and a TV to go with it!!! (I think mom chipped in a little)
It was then to my surprise that after this last snow storm I got another knock on my door. It was my neighbor asking if he could shovel my driveway. Surprised I asked “but I thought you already bought your PS3″. He responded, “you are one of my best customers and I could not leave you hanging after this storm”. Of course I had him shovel my drive. When he came to collect I asked “what are you saving for now”. He responded, “I’m just saving my money, I want to be ready for what I want to buy next”.
Needless to say I am impressed by this young man and his entrepreneurial skills. His mother has and continues to do a great job in raising him and he has a bright future as a businessman.
Popularity: unranked [?]
By Finance-4-Kids
March 19th, 2008 at 10:39am
Under Finance-4-Kids
Success is doing the right thing, the right way at the right time. Check out Cameron Johnson author of “You Call the Shots”. He has been the definition of success. This guy (kid) is incredible. By the age of 21 he has run 12 successful companies and at the age of 15 he became an advisory board member of a Tokyo based company. I plan on picking his book up today and giving it a read. I expect there to be some very valuable lessons we can share with our kids. Please if anyone else has given this book a read let me know your thoughts.
Popularity: unranked [?]
By Finance-4-Kids
March 18th, 2008 at 06:48am
Under Finance-4-Kids
Listening to the radio this morning I started hearing ads for March Madness at several local car dealers. The true madness is the terms they offered on their loans. One ad I heard this morning was for 72 months. That is 72 months of being tied to your car and your car payment.
The reason longer term auto loans are becoming so attractive to many Americans is because with the longer term loan you can afford more car today and the payment will still fit into their monthly budget. This is great right? Get the car you want at a payment you can afford. Wrong! While you are enjoying your fancy new ride right now in 1-2 years your going to be looking at that monthly payment and feel stuck. You are going to look at that $300-$500 a month that you could be spending elsewhere, investing, making home improvements, or taking a family vacation.
If you have kids who are ready to buy their first new car sit down and talk with them about how to make the purchase wisely. I know I could have used the advice. I purchased my first new car on a longer term lease so that I could get the Camaro that I always wanted. Guess what, I got stuck and was upside down in my car. I owed more on my loan than what the car was actually worth. It took me a while to recover from that mistake but now I only buy on short term loans (3 years) or I buy used.
If you want to know more check out Car Loans Have Longer Terms than Ever from cleveland.com it discusses Americans taking longer term loans and it’s effect on your wallet and our economy.
Popularity: 13% [?]
By Finance-4-Kids
March 16th, 2008 at 10:50am
Under Finance-4-Kids
Tax time is here again however this year many people may get a tax rebate and a tax refund. Are you one of the people looking forward to a tax rebate? Do you already know how you will spend your new found cash? Explore these options when deciding how to spend your tax rebate and tax refund.
First, will you be one of the millions to receive a tax rebate? The economic stimulus package passed by congress in February of 2008 will provide a tax rebate to approximately 117 million families. The stimulus package calls for individual tax payers to receive a $600 rebate and working couples to receive a $1,200 rebate, there is also an additional $300 rebate per child. To qualify for the full rebate individual filers must have an adjusted gross income below $75,000 and joint filers must have an adjusted gross income below $150,000.
Now that you have your tax refund and tax rebate checks you have a couple of options.
The first option is to go out and spend the money on something you want today. While this may be tempting it is not the best use of your tax refund and rebate money. Spending you tax checks on something today is not going to help you improve your financial future unless you are spending the money on something you already planned on purchasing with money from savings.
Your second and a better option is to use your tax checks to pay down debt. Paying down your debt will improve you financial condition and it will free up additional cash each pay day in the future. Paying down your debt now gives your more flexibility in how you spend and save your money in the future.
The best option for your tax refund and rebate checks are to save your money now for future use and earn interest on your savings and investments. Saving today will give you a head start on the future and increase your purchasing power in the future. Use your tax checks to open The Orange Savings Account. Great rates, no fees, no minimums. ING has a wide range of programs and services that can help set you up for automatic investing. Use your tax rebates and refunds to open your account and give you a jump start to you financial future.
Popularity: 13% [?]
Technorati Tags: Tax, tax rebate, tax refund, economic stimulus package, financial
By Finance-4-Kids
March 11th, 2007 at 12:26pm
Under Finance-4-Kids+ Personal Finance
Parents spend lots of time and money coaching kids on how to be better athletes but how much time do they spend on coaching personal finance. In reality only a very small percentage of kids will grow up to be professional athletes but all of our kids will grow up needing to be skilled in personal finance. Here are some tips and a sample scenario to be your kids personal finance coach:
1. You do not need to be an expert to be a good coach. A good personal finance coach will know the right questions to ask and how to prompt their kids to answer their own questions and develop financial awareness.
2. Assist your kids in setting personal finance goals. Ask your kids questions that help them process what their personal finance goal is.
3. Help your kids set goals that are realistic and achievable. Do not put limits on your kids only ask questions that help them get to a goal that they think is realistic.
4. Explore the options for achieving the goal. You should do everything you can to draw out all the possible options from your kids.
5. Help them determine an action plan. Before you finish any coaching session with your kids you should ask them what they plan on doing. Ask them questions that help them get to a specific action they will take and when the will take it.
Sample Scenario
Kid: Dad I need $400 dollars!
Dad: $400, that is alot of money. What do you need $400 for?
Kid: I want to buy a PlayStation 3 but I don’t have any money saved.
Dad: When do want to be able to buy the PS3?
Kid: I want to be able to buy it by this Summer so I can get the new Madden game when it comes out.
Dad: So you want enough money to be able to buy a PS3 and the new Madden game?
Kid: Yes!
Dad: OK, so tell me what you want and when.
Kid: I want a PS3 and Madden by August. So I will need $480 in 5 months.
Dad: Good, how can you save that much money in 5 months?
Kid: I’m not sure. I only get about $80/month from allowance and I still want to be able to go out with my friends.
Dad: Are there any other ways you can make money?
Kid: I can build a money making website!
Dad: Any other ways?
Kid: Well, some of my friends mow lawns and I think that could work.
Dad: So what do you need to do?
Kid: I need to make about $200 extra dollars so I can afford a PS3 and still have money to hang out with my friends. I will mow lawns to make extra money. If I charge $10 per lawn I can mow 1 lawn every weekend and have enough money.
Kid: Thanks Dad!
Remember the important part of personal finance coaching is to let your kids develop their own sense of financial awareness.
Popularity: 14% [?]
By Finance-4-Kids
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