For those of us with kids, we hope to pass down certain traits—good looks, agility, perfect vision, smarts, business savvy. But what of our money management skills? Financial finesse rarely makes it onto our list of personal strengths, yet it’s a crucial life skill everyone needs to acquire. A Charles Schwab 2010 Families and Money survey found that “not saving early enough for retirement (43%), not saving money for emergencies (42%) and carrying credit card debt from month to month (30%) [were] cited as the top three financial mistakes [parents] fear their kids will repeat.” Don’t let your kids make your same mistakes or fall into that ever-growing percentage of 18-24 year-olds who file for bankruptcy.
There’s been a movement the past couple of years to move to a smaller home in order to save money. It’s understandable with the economy the way it is and all. Still, many people look to the time when they can get a bigger home. Sometimes you just need more space. Some just want the bigger place. I still see homes being torn down and re-built into much larger houses. Thing is, when you buy a bigger house you aren’t just paying a bigger mortgage. With a bigger house comes some other expenses and costs that increase.
Some Ways You Will Pay More With a Bigger House:
Have you drawn up a detailed budget and are struggling to keep to it? According to an article in the NYT*, it would be best to just give it up. Well, not exactly. But it does say that keeping to a strict budget might not be the best way to go about spending less or saving your money. The money and pyschology experts they interview say that a budget can be like a diet — it doesn’t often last long and may just end up with you standing at the freezer late at night devouring a quart of ice cream right out of the container.
It’s human nature, they say. We generally have trouble following through with our “best-laid plans.” And after a long period of focusing on restrictions — we binge. Compounding the problem is the abstract nature of credit cards and such. Watching cold, hard cash dwindle is far more painful and thus more effective in reigning in our spending.
You try to do the right thing. You create a financial plan and set up a budget to follow in your home budget software or budgeting spreadsheet. But it seems your budget still gets busted and it bugs the heck out of you! What keeps messing up your calculations?!? I’ll tell you what screws up your budget: L I F E.
I think most people want to eat healthy.
But for many it’s too tough to start (especially eating healthy on a budget). We get into eating habits, that aren’t great, and its just too much to give them up and change our lifestyles.
So what do we do? We don’t bother; it’s too hard.
Does this help a person?
Nope. Does this sound like anything else we don’t take care of because its too hard? Yup, personal finance! So what’s the answer to eating healthy? Just like your personal finances, you can start with baby steps and move from there. Make small changes to your habits, little by little, and build up over time.
How can you teach a three year old to budget when they don’t understand money?
My husband and I paid off $70,000 in debt and have changed our beliefs from accumulating stuff to accumulating life experiences. We wanted to teach our son some of the lessons we’ve learned.
As a mom, I have been trying to figure out how to teach my son about money, and find a system to reward him that doesn’t involve sugar or toys.
As someone with a bunch of regular expenses, I know that they add up. I also know that you’d have to pry my laptop from my cold, dead fingers before I’d voluntarily give up the internet. In my husband’s case, cable is a necessity. How do you choose between one recurring expense and another? Prioritize.