Archive for the ‘Money’ Category

Five new ways to cut family budget and expenses

Wednesday, October 21st, 2009

Here are five more things to consider when paring back expenses this year.

1. Be cooperative. Coops of all sorts are a great way to cut spending Kids clothes and toys are a very popular trade and use category. And babysitting is a natural since it’s almost always easier to take care of your own kids when they have someone to play with. Take the lead and organize these activities at your church or school where you have a lot of like-minded parents. But don’t neglect also the help of seniors who may babysit in exchange for other help (computer aid, CPA advice, etc.)

2. Kill extra credit card charges. Everyone always makes this suggestion because it’s true. Paying credit card interest fees is stupid, since you can get cheaper money almost anywhere.

  • If 20% annually seems reasonable, at least pay it to a relative who wouldn’t be able to earn 20% anywhere else in this market.
  • At the very least, look for cards that charge lower interest and monitor the rates. CardTrak.com publishes a monthly list of credit card rates and Bankrate.com keeps a updated list of the best credit card deals, divided into categories: no-fee cards, low-interest cards, and mileage cards.Burning taxpayer & shareholder money -- "No Hassle"
  • If your card wants an annual fee, call them and negotiate it lower or eliminate completely. It’s always good to ask. Set your automated bank payments to send a small amount every month to your credit card issuer. Even if you pay extra interest, now you’ll never have to pay a late charge on top of it.

3. Cut back on the restaurant habit or find ways to cut back on costs. Entertainment books are a great way to save money if you eat at those restaurants anyway. Restaurants.com also has money-saving coupons for good restaurants that make sense if you do a little planning. Set your restaurant budget and then cut it by 20% so that you actually use the coupons.

4. Increase insurance deductibles for auto and home coverage. You’re the best judge as to how much risk you can handle, but it’s better to have $1000 deductible on your insurance rather than $500 if you’re a pretty safe driver and if the one-time hit in case of an accident wouldn’t wipe you out.

5. Cancel the gym and get a Wii Fit. You have to find the best routine that works for you and motivates you to put in at least 30 minutes per day of physical activity. A gym membership is a beautiful thing if you use it, but if you’re paying for it month after month without spending any time there, you’re not really burning any calories are you. We got a Wii Fit and I find it easier to fit in a workout at home. Plus I don’t waste time and gas getting to the gym.

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Frugal Dad – save money by swapping baby clothes

Wednesday, August 5th, 2009

Shopping for kids clothes is not only never-ending, it’s also very expensive. There are ways to reduce the latter problem, by shopping sales that occur as the season is just getting underway, for example.checking out the spread

Another way the internet makes possible is clothes swapping sites. Try www.SwapThing.com for example This Bay Area company si a site for trading all kinds of services and products. SwapThing.com makes it easier to find and list item you are searching for, or need to get rid of.

Another site is Swapbabygoods.com. This free site lets you list clothes or other baby times you have for swap or sale and makes it easy for others to find them by sorting by size and other options. You can also see a wish list of sellers/swappers so you can quickly see if your closet holds the key to their happiness (and a better deal for you).

If these sites aren’t your cup of tea, search Google or look in your local paper for local swap events. These events let you see clothes first hand so you can inspect for quality and cleanliness before you get involved with shipping.

Using these types of services doesn’t have to be like a trip to Goodwill, where clothing often looks like it was thrown away. These options can help you find clothing, especially for babies and toddlers, that still is almost new because the child was only that size for a few short weeks or months. If it’s hard for you buy “used,” consider it very positive recycling.

Posted in Clothing, Money | No Comments »

How much to charge your kids if they move back in with you after graduation?

Tuesday, August 4th, 2009

There are certainly days when I look forward to the kids moving out and giving me a little peace and quiet. That day will come soon enough – they are 5 and 9 now – and off they will go to college. More and more in this economy, kids are moving back home after school after they find that jobs are scarce, or maybe that mom or dad will still do their laundry.

How much should you charge a returning prodigal son or daughter? Experts agree: It depends.

If your son or daughter has a job, you should charge something akin to the going rate based on real estate prices in your neighborhood. Especially if this is the first “on their own” experience, it’s important that they understand living within your means before they develop bad habits based on an unreal situation. It’s nice to live rent free at Casa Mom and Dad and spend all that extra money on cars and parties, but that’s not the way life works. Available

On the other hand, if no job is to be found, it’s still important that your kids pitch in in a way that goes beyond their responsibilities before they started school. You might give them some slack if they are deep into the first throes of looking for a job, but still ask for help with household expenses or extra chores. You’ll have to decide what is reasonable, but it might be important to make it clear that this is just a temporary situation until the economy improves.

If you decide to “rent” to your child, remember that technically that is taxable income and should be reported. Inter-family finances are not an area that the IRS scrutinizes, however, though you should not try to generate big rental losses on the depreciated second bedroom you rent for $100 to your tenant child.

Posted in Advice on raising kids, Money | No Comments »

Eight ways to save money you may not have thought of

Friday, May 8th, 2009

Here are some dad advice and ways to save money that you might not have thought of:

  1. Shop consignment stores: Not thrift stores, where used merchandise donated for charity is piled high at bargain prices. Consignment stores are more choosey at what they take in and arrange it more as a store. Sure, you can’t find all sizes, but you can find items that either business-worthy for you, or hip enough for growing kids. You just have to figure out a crafty way of selling this to the rest of the family, but expect savings of 60 – 70% for items that are only gently used.
  3. Switch from premium to regular gas: Okay, this one is not for every family car, but if you’re using premium just because you think it’s like name brand whiskey versus bar stock, you may be throwing a lot of money away. A higher octane rating will not have any affect on a car designed to run on Regular. The difference on a 20 gallon tank you fill once per week could be two to three hundred dollars. Experts also say that the loads you carry and the type of driving you do could influence this decision even for cars that recommend using premium. Experiment with your own car. If you’re not driving heavy loads in hot weather, or can’t break the jack-rabbit start habit, you might be able to get by with it.
  5. “Style” your own hair: Blessed with a receding hairline at 40, I finally decided to take a big scissors to my comb-over and buy an electric razor. Now, every week or so, I shave my head with a #2 blade all over, as if I were a sheep, then use a barber’s scissors to trim around the ears. I save the $20-$30 every month on a haircut, not to mention the hassle of the appointment and 30 minutes of insipid conversation on the chair. If you have boys, get them in the habit of doing this from an early age and it won’t be an issue until you can tell them it’s a luxury they can pay for with their own kids allowance. Kids look cute no matter what their hair length and a buzz cut no longer has any political or social implications.
  7. Buy a soda maker from SodaClub.com: We don’t let our kids drink soda anyway due to health concerns, but we still drank too much Pelligrino and threw more than enough bottles into the landfill. SodaClub makes soda at home, which is healthier and way cheaper alternative. Recipes exist on line for root beer and other drinks. You’ll appreciate the savings on wear and tear on your back too, with one less heavy item to pick up at the store. Sorry, the sodaclub machine does not make beer.
  9. Get serious about family entertainment costs: We know longer live in an era of 99 channels and nothing on. If you really want to save money, you can go to the Netflix single DVD plan, cut all your cable, eliminate the movie theatre, and still find way too much to watch on the computer.
  11. Plan weekly family and kids activities that keep you from spending money on food or entertainment because you’re bored: If you plan a family walk every Saturday morning, you have less time in the day to spend more money and you teach your kids good fitness habits.
  13. Finally, go overboard on going green: You’re not going to save much money doing one or two “green” things, but if you go crazy on this, you certainly will. Do all of these and you will save cash:

    • Don’t drive anywhere under 30 blocks – 1.5 miles
    • Unplug all instant-on appliances, including sleeping computers
    • Take 60 second showers by candlelight
    • Flush with discretion
    • Install motion-activated lights where kids leave them on
    • Move to fluorescents everywhere

Hopefully, there’s something new here that you can do in your own home.

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Seismic economic shift to create more stay-at-home dads

Friday, February 6th, 2009

When we first created GreatDad.com three years ago, we said there were four underlying forces that would fuel a trend to more involved fathers in the 21st century:

1. Changing role of women in the workplace and continued evolution toward income parity (and maybe superiority)

2. Lack of job security in a post-industrial economy with far less emphasis on life-long employment with one employer

3. Change in societal expectations about involved fathers versus previous generations

4. Post 9/11 change in perspective on importance of core values including family.

I still think much of this is true though the effect of 9/11 on the family was less than expected after the push toward greater consumerism leading up to the current economic crisis.

In a recent interview with Seattle Post writer Paul Nyhan, we discussed how this current economic crisis could dramatically change the family dynamic in a way not seen since when women entered the workforce in droves during World War II. We both agreed that the world should be ready for a seismic shift, and the news today is the first big shake.

With the recession on the brink of becoming the longest in the postwar era, a milestone may be at hand: Women are poised to surpass men on the nation’s payrolls, taking the majority for the first time in American history.

The reason has less to do with gender equality than with where the ax is falling.

The proportion of women who are working has changed very little since the recession started. But a full 82 percent of the job losses have befallen men, who are heavily represented in distressed industries like manufacturing and construction. Women tend to be employed in areas like education and health care, which are less sensitive to economic ups and downs, and in jobs that allow more time for child care and other domestic work.

[From As Layoffs Surge, Women May Pass Men in Job Force - NYTimes.com]

Whether we’ve been aware of it with all the hype about stay-at-home moms, women continue to make major income gains versus men even in families with kids. Wives in a third of dual income households make more than their spouses, and I’ve read that that number is higher or households making more than $100,000. There are the expected reasons behind this trend: greater education and equal rights advances. But a major factor has been a structural shift from male-dominated industries like manufacturing to service industries like education and health care. This is not all good news for women, however, their relative gains have are mostly due to losses by male workers, pulling average household income down in real terms over the last generation.

Watch for more men on the playground and in the PTA. These changes will require open minds by everyone as we all break down our expectations of what “men do” and what “women do” and both learn the pluses and minuses of each other’s traditional roles. Where the end of the last millennium opened the doors to these changes, the decade in front of us will see every stereotype we’ve ever learned overthrown.

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Stay-at-home dads can make millions doing Fantasy Fishing!

Thursday, August 21st, 2008

A stay-at-home dad from St. Michael, Minn., studying to be a police officer, has won $1 million as the FLW Fantasy Fishing champion.

[From MyFox Twin Cities | St. Michael Dad Wins $1 Million Fantasy Fishing Prize]

Now, this is a concept and I wish I had thought of it before wasting all this time working on GreatDad.com and another full-time business venture. I could have been making millions of dollars in the fantasy sports arena where you “reel in” millions just by drawing cards with fish on them.

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Frugal fathers guide to garage sales

Thursday, August 21st, 2008

If you have small kids, you know that every year brings new needs and wants, which means more things outgrown. That includes toys, accessories and clothing. Some things you’ll want to keep, but many things lose their utility very quickly after the stage has passed. I’m thinking toilet training especially. The good news is that a lot of things can be sold easily in a garage sale, and you can use some items to draw more visitors.

  • Place Craigslist or other ads in the paper the day before. Headline anything in your ads that might be remotely collectable.
  • Unless you want early-birds knocking on your door, plan to be outside your house a half hour before the announced time of your sale.
  • Play some music like they do in retail stores. This will keep the atmosphere upbeat.
  • Make sure you have batteries and power cords for any item that needs electricity.
  • Price your items 10-20% higher and be prepared to discount items as you go. You’ll feel freer to deal and even give things for free to make a sale.
  • Organize and present your items on tables waste high. No one wants to stoop on the ground to see something lying on the floor and placing them on tables, like in a store will make them seem more valuable.
  • Consider having a grab bag of items that you’ll give “free with purchase,” like free books or specialty clothing, which are usually slower sellers.
  • Keep extra bags and boxes on hand. If potential buyers can’t carry their purchases, they might not buy as much.
  • Be prepared to take unsold articles directly to the Goodwill at the end of the sale, instead of letting them pile up in the garage. Document your donation and you’ll get a good tax deduction.

Keep in mind that bargain hunters look for slightly used toys for their own kids or grandchildren and these are a draw. If you can attract as many people with children as you can, you’ll have better luck selling some of the kids’ clothing.

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Four financial tricks to make your child money-savvy

Wednesday, March 5th, 2008

Jonathan Clements, in the Wall Street Journal today, had some useful reminders for moms and dads trying to teach their kids good money skills. We actually practice some of these on our eight-year old. Our friend, Harvey Beck at ActiveAllowance.com writes a lot in his blog about his money experiments on his two boys and finds that a lot of these strategies really work. All dads should try these things just to see if it helps to quell the “I want” and “I need” reaction to all the buying stimuli kids are exposed to.

1. Postpone joy – Clements suggests offering to trade a $5 per week allowance for $7 if the child is willing to wait an extra week for it.

2. Slow spending with big bills – try giving your child his allowance in coins one week, singles another week, and one big bill the following week. You may be surprised that the big bill gets broken more slowly.

3. Make a wish list – help your child learn to postpone gratification and prioritize wishes by adding things to a list. Giving in to urgent demands does nothing to help kids learn what they really want. Often, kids can’t even remember from one day to the next what their urgent demand even was.

4. Give kids their own money – giving a real allowance, even at five or six, is amazing for sensitizing a child to the fact that money isn’t infinite. Children are suddenly very careful when they know they are drawing down their own stash. Clements relates the story of giving $5 for a school field trip and getting no change. The next time, he gave his daughter $5, but said she could keep anything. She brought home the full $5, which went straight to her piggy bank.

Finally, I’d recommend talking about money in a way that is consistent more with the values you want to instill than in the values you may have picked up. Most of us middle class moms and dads lust over bright shiny objects, but then are surprised when our kids do the same thing. We wonder where they get it and blame it on TV or on their other less-enlightened peers. The responsibility, though, really lands on us. We need to be aware of how many boxes from Amazon come flowing into the house, how much we talk about other people’s money, or how much things cost, and whether we sub-consciously communicate that spending and buying is the best way to alleviate boredom and find happiness. The answer is not usually to “just say ‘no,’ but to help our kids find balance and learn to be good spending adults.

Posted in Advice on raising kids, Education, Money | 2 Comments »