Here are three simple things you can do to help save for your baby’s future.

Permalink  |  Bookmark  |  View Comments

One thing a lot of people want to transform are their finances.  But, where do you begin?  Our expert from Fifth Third Bank recommeds doing a one month spending fast.  Here’s how to do it.

1.  Create a budget for ONLY absolute necessities like bills, groceries and gas.  If you already have a grocery budget, stick to your normal numbers.

2.  No shopping for clothes or shoes.  This will help you learn to make the best use of what you already own and stop buying things that are a “good deal,” but that you don’t really need.

3.  No eating out and no gourmet coffees.  This will means packing lunches for work and making meals at home each night.  Eating out and quick trips to Starbucks are big budget eaters.

Read all »

Permalink  |  Bookmark  |  View Comments

If you’re worried about the current economic conditions and what it means for your family, chances are your kids are too.  Below are some tips for talking to your children about finances and how the current situation is affecting your family.

• Remember that kids live in a black and white world.  It’s a common reaction for people to joke about their economic predicament.  Unfortunately, kids don’t often understand the difference
  between a joke and reality and may literally think your family will end up on the streets even though you mean it in jest.
• Be honest.  Give your children a basic understanding of your financial situation, but only provide them the amount of information appropriate for their age.  Reassure them that while you may need to cut back in places, you’ll still be able to provide for their needs.
• Add context to financial conversations.  Showing older kids your monthly bills can help them gain a better understanding of your situation and identify ways they can contribute.  Seeing the actual bills and how you pay them is a good way to bring financial discussions to life.

Read all »

Permalink  |  Bookmark  |  View Comments

Next time you’re playing with your kids, look for simple learning opportunities.  Here are four fun ways to teach your kids about finances through play.

Tip #1
Create play money with your kids and play grocery store.  Give them a budget and see who can buy the most with their money.  This teaches them the value of a dollar.

Tip #2
Make a life map together.  Have your children cut out pictures of things they see in their future.  This might include college, buying a house or career goals.  Talk about the money that it will take to accomplish these things.

Tip #3
Play needs, wants and wishes.  Talk to your children about the differences in each of these categories.  This helps provide a good foundation for spending decisions.

Read all »

Permalink  |  Bookmark  |  View Comments

  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  |  View Comments