As soon as your children can count, you should introduce them to money, because observation and repetition are two important ways children learn.  What you teach them while they are small can make a BIG impact on their financial skills when they’re older.  

Here are a few tips to get you started:
 
1. Teach children the differences between needs and wants.  They need food.  They want a new toy.  You need to work to provide money for the family; you want to go on a family vacation.  This basic concept will prepare them for making good spending decisions in the future.
 
2. Create a chart for each child and decide together how their money will be used.  A percent should be saved, a percent should be spent, and a percent should be given away to charity or church.  Help them make most decisions, but also allow them to make some spending decisions on their own.  Whether good or poor, they will learn from their spending choices. You can then have an open discussion of spending pros and cons before more spending takes place.
 
3. When giving children an allowance, give them the money in denominations that encourage saving.  If the amount is $5, give them five $1 bills.  This will help them easily follow the chart you have created together.

Read all »

Permalink  |  Bookmark  |  Comments [0]

This week’s show featured our finance expert, Jennifer Ranville, of Fifth Third Bank.  Here are her top five tips for sending your child to college, without breaking the bank!

Tip 1: Remember the ABC’s of borrowing wisely
· Always take advantage of free money such as grants and scholarships, before taking out a loan to pay for college.  Look for easy money, like your parent’s place of employment, which sometimes offers scholarships for college-age children.
· Be sure to maximize your Federal Stafford Loan eligibility, as federal student loans generally have lower interest rates than private student loans. 
· Consider alternative or private student loans only after all federal money options have been exhausted.

Tip 2: Open a Student Checking Account
Whether you’re attending school close to home or far away, you need a checking account that’s simple. When you move onto campus, stop by your local bank and open up a student account.  Student accounts are specially designed with students in mind, with less fees, no minimum balances, limited free wire transfers so parents can put money into the account from back home, and more. 

Tip 3: Use Credit Cards Wisely
Use credit cards wisely because this is a chance to establish a solid credit history. Watch your interest rates, and pay your balance off each month. Don’t use the card for routine living expenses or a night on the town – those expenses add up quickly.  Shop around for the best deal and read the fine print before signing up. Read all »

Permalink  |  Bookmark  |  Comments [0]

Here are a few tips from Fifth Third Bank that will help you enjoy a family vacation without breaking the bank!

1.  Pre-planning is one of the best ways to save.  Map out your trip, research your destination, know where you’re going and what you’re going to do while you’re there.  Once you have that planned out get online and look for coupons and discounts at attractions and restaurants.  Many museums and zoos offer family free days, try to plan your visit around those days if they’re available.

2. Dine out less and bring snacks for the car.  Another way to save cash is to visit a grocery store once you get to your destination and make your meals.  When going out for a nice meal, go for lunch instead of dinner because prices are lower and lunch is more casual for kids.

Read all »

Permalink  |  Bookmark  |  Comments [1]