Monthly Archives: June 2018

What You Should Know About Finances

‘Tis the season for young couples taking the plunge and either moving in together or getting engaged. It’s an exciting time for couples as well as their friends & families. People look for the perfect home to share and begin the merging (and purging) of possessions. But there’s an aspect of moving in together that people tend to avoid at all costs – money. Before embarking on this exciting new time in their lives, couples should make sure to discuss how they would like to manage household finances. Discussing a few things up front could help avoid relationship issues down the road. Here are a few points to think about:

1. Schedule a time to talk about finances – Make a date to initially discuss both of your general feelings toward your finances. Talk about how you want to budget, pay for bills and save for the future. Then, schedule a weekly or bi-weekly meeting to go over your budget together so you both remain on the same page as your lives progress.

2. Think carefully about housing – If you’re planning on renting, both partners should have their names on the lease. This will help protect both parties legally in case anything goes sour. If you’re making a long-term commitment to each other and are thinking about getting a home loan, the same rules apply. Make sure you both are legally protected if you decide to make this purchase together. If one person is more financially secure than the other, they can purchase the home and collect rent from their partner. It may not be the most romantic option, but in the end it could save a lot of headaches. If you both already own separate properties and are consolidating to one home it might be a good idea to rent out the newly vacant home rather than putting it up for sale right away. The newly generated rent income may reduce any unique financial burdens you may uncover by living together.

3. Document everything – Another important, unromantic aspect of protecting yourself while living with another person is making sure there is adequate documentation of every major purchase made. This is especially important for unmarried couples who do not have the same legal protections as married couples. Keep receipts for big ticket items and if the payment was shared, include the exact amounts that each person paid. This small step won’t take much time to complete and then file away the receipt. Hopefully, you’ll continue on in coexistent bliss and will never have to look at that receipt again.

Money can be a touchy subject, but people in a relationship will often have to address difficult subjects. A topic like finances should not be overlooked. Make sure you talk with your significant other about your financial future before moving in together – and definitely before buying a house together!

Children and Finance

As wise parents, we try to teach our children about the most important things in life. We make sure our children know to stay away from strangers, to treat others as they would like to be treated and the importance of education. Why not start teaching our children about finance and how to manage money? This article discusses children and finance and how to teach your kids about finance.

Give Your Kids a ‘Job’ –

Most children do household chores when they reach a certain age. Why not turn this into an important lesson in finance? Aside from their usual chores, you could give them an optional job or two each week that they can earn money from. You might offer them a few dollars to rake the yard or sort the laundry – anything that will actually be helping and that they can earn money from. Of course, if your children don’t do the job, they don’t earn the money! This is a great way to teach your children that money doesn’t come without hard work and time!

Start a Savings Account for Your Child –

Another thing you can do (which would work in combination with giving your kids a job) is start a savings account for your child. Explain to them how the bank keeps their money and even gives them a little extra each month for saving it. You can have them put their allowance money in their savings account and show them their statements each month so they can see their money adding up. This will help your child learn the importance of saving – and if you want, you can let them think about something really great they want to purchase once they’ve saved so much money. This will show them that by saving their money, they can get things they really want!

Older Children –

If your children are older, there are several things you can do in order to show them about finance. For instance, you could have them get a real part time job so they learn what it’s like to work for money and what goes into earning a paycheck. If they drive, they can help pay insurance on the car or give you a percentage of their paycheck for gas money. Of course, if they don’t pay for the insurance or gas money – they don’t drive. This may seem cruel but when your child gets a real job, if they don’t pay their bills, they won’t enjoy the benefits of the services. If they don’t work, they won’t receive a paycheck. These methods will properly prepare your child for the real world and a working environment.

These are some really great ways to teach your children about finance so that they will understand the value of money and how hard it is to earn. This is a valuable lesson that you can give to your child and you can use the tips and suggestions in this article to do it. Good luck!

Teaching Kids About Finances

Teaching your children about finances can be a challenge, but the best lessons in life are learned by doing. Here are some suggestions to help your kids learn how to manage their finances.

Young children 2-5
Periodically give a 2-5 year old a dollar to spend when you are at the store together. Let them pick a prize for themselves and allow the option to not spend it and save the money if they wish. I guarantee you will have a teaching moment when your child want’s something that cost more than a dollar. Simply say, well save your dollar this trip and next time we are here maybe I can give you another dollar (or two or three whatever it takes) to buy that. Deferred gratification is one of the greatest skills you need to learn for financial success.

Kindergarten and Grade School
Give children an allowance beginning in kindergarten. Start at $1 per week in kindergarten and increase it $1 each year until they reach 6th grade. Don’t tie it to chores, just give them an allowance and create opportunities for them to plan what they want to spend their money on and DON’T, ABSOLUTELY DO NOT bail them out when they squander all their money or don’t have enough to pay the sales tax. On the flip side, don’t berate them over squandering the money either. Learn to say things like “Wow that sucks, I am really sorry you don’t have the money to buy that, so how about the weather?” The bottom line is that them not having money is not your problem, it’s their problem. They will definitely want to make it your problem, but it’s not. You may have to bite your tongue, because our natural instinct is to point out to our kids where they screw up, but you have to truly not care about their money problems. The natural consequences in this system will take care of the teaching and you don’t have to be the bad guy.

I mentioned not tying allowances to chores and here is why. Doing chores around the house is part of being in a family and you don’t get paid for that. At least I have never been paid to do the laundry or clean the dishes at my house, maybe things are different at your house. It is however, acceptable to give children the opportunity to earn additional money by doing things above and beyond the norm. Establish the value of the job and what the standards are before the work starts. No children are not small adults so have reasonable expectations, but do have expectations.

Pre-teen/Teen Middle School and High School
By sixth grade, I like to change the allowance scheme and give them lunch money for school and then allow the option of fixing themselves a lunch to take (you have to provide the items to fix their own lunch, but don’t actually make the sandwich) The kid chooses to keep the money for other things or spend the money on lunch, just be sure you don’t fix the lunch or bail them out when they run out of money. Lunch money works well, because it is actually a pretty good amount in a typical school, but it is money you were going to spend anyway, so it rarely will break the family budget. The incremental cost of buying a loaf of bread and lunch meat is usually negligible and allows the opportunity for your pre-teen/teen to accompany and assist you in grocery purchasing. That is if they want input into the type of lunch items you buy.

The key to your child learning finances is it has to be their responsibility and if they blow all their lunch money on Monday, that’s the kid’s problem you have to let them deal with it. Nobody is going to starve if they miss one lunch or have to fix themselves PBJ’s for the remainder of the week.

Your Spouse or Partner About Finances

You probably know the old saying. The one that says the three topics you should avoid talking about are: (1) religious beliefs, (2) national politics, and (3) finances. While the first two are questionable, it’s vitally important to have personal finance discussions with your spouse or partner. Understanding how to speak about money, in a helpful and worthwhile way, can create the best foundation for both your relationship as well as your financial well-being.

Even if you are not married, if you share some amount of fiscal duties with someone else in your household, it is recommended you communicate about your finances. Even though we know we should do it, not everyone recognizes how to have successful “money chats” that don’t cause hurt feelings or even anxiety. This is most often because talking about money calmly and constructively is difficult when you do so only after a problem has already arisen. All things considered, it is usually fairly challenging to maintain your calm just after your significant other just revealed to you that you are having problems paying your bills, or maybe when you are they have just now made a precarious funding shift. As opposed to making unplanned or quickly arranged interactions concerning your economic destiny, address the matter in a way that will definitely lead to the best situation, logically.

Find a Great Money Manager

When most people begin a romantic relationship, few think about the need to be prepared in terms of financial responsibilities. Even worse than not planning, is the perception that money problems will merely go away or work themselves out without any effort. Needless to say, that’s obviously untrue. Research findings suggest that the more people disagree about finances, the greater chance they’ll split up. That is precisely why it is vital that you discuss your family assets often, and do so effectively. One method to do that is by seeking the advice of a fiscal manager, together, not separately. These financial managers work alongside you to produce suitable financial targets, and also give you support in accomplishing your financial goals. They are able to serve as an impartial and objective 3rd party, can inform each of you regarding your financial investment options/opportunities, and also make it easier to resolve issues on the subject of monetary decision-making.

Schedule Financial Conferences

But do not merely rely upon a paid monetary advisor, but be accountable for you and your significant other’s financial resources. The two of you should set a regular date during which you will sit together and talk about your budget. It is imperative that you go over the fiscal assets both of you have in common, in addition to the income you’ve made and use separate from each other. Throughout every single money meeting one of you ought to record the ideas you talked about, just in case the info is required down the road. And don’t be afraid to make these meetings interesting and fun: employ posters that lay out your goals, use photos, video, etc., to make your point. Clearly, discussing finances can be difficult for many, and doing stuff to lighten the climate will make these discussions pleasant and productive.

Throughout these sessions, both of you need to go over how well you’re managing your money, household finances, and sticking to a budget. Ensure that you talk about your combined as well as separate assets, and focus on techniques for repaying debts. If you’ve got investments like a 401k or IRA, look over the most recent earnings statements so you are both aware of how much money is in each account. And also try to discuss your own individual financial goals, as well as how well you’re progressing towards them.

Establish Financial Objectives and Budget

It is essential to create a personalized economic plan that you and your partner create independently, but that includes household finances as well. This procedure is really useful for couples who may experience differences in how they spend money. For instance, your spouse or partner might set a long term aspiration of saving a certain amount for retirement. Even though it’s not your personal goal, you are more likely to aid in their attempts because you’ve discussed it. Similarly, when your spouse is aware that you possess a certain goal, they will probably be more likely to try and help, and much less inclined to unwittingly do stuff to undercut your independent or common fiscal ambitions.

In addition, it is important to make a plan concerning the daily managing of funds. A great technique is to construct a spending plan (linking to your pay periods), and make use of it. One option is to set up an envelope system for all expenditures. Being that the majority of us do not pay bills in cash, use a scrap of paper symbolizing the quantity you will pay out. Place the paper in each designated envelope until all envelopes have been “paid”. Ensure that you set up envelopes that represent savings accounts and other funds. Lastly, once the important envelopes are taken care of, put any leftover income into a miscellaneous envelope for non-essential expenditures like entertainment.

Facts About Financing Plastic

In some cases, reconstructive plastic surgery may be covered by the patient’s medical insurance. Getting a cosmetic plastic surgery however may be a procedure that you have to finance yourself using a loan.

Now, there are already several options for people who can’t afford a cosmetic surgery. Before we look into those options, let’s take a look at what else you should know about financing plastic surgery.

Don’t Go for Bargains

You may be tempted to pick a surgeon who asks for less if you do not have clear options for financing such procedure. This is however, the worst possible mistake you could ever make. The costs are usually steeper if the surgeon who will conduct the procedure is already seasoned and an undisputed expert. An expensive doctor however is also more likely to be a safer option and eventually a more cost effective one. Cheap doctors may also have cheap services that may result in more problems because you would have to pay for corrective surgery on a botched up work.

Costs and Plans Vary

The extent of work to be performed, the type of procedure and the region you belong to are also some of the other factors that affect the cost of the procedure. Doctors and clinics will also therefore have different payments schemes or offers for financing such surgery. You would have to discuss this aspect as extensively as the procedure itself. Be warned that there may also be hidden costs or miscellaneous fees that you may not have asked about and may not be included in offers for financing the said procedure.

No Plan Scheme

Some clinics and plastic surgeons don’t allow financing plastic surgery or will not allow you to present loan or installment plans. Some patients may not immediately realize it but such a policy may be as much for the patient’s advantage as it is theirs. This is because such a strict policy will ensure that a patient can truly afford the procedure and its corresponding after surgery costs.

Some clinics will even ask for a complete payment before a procedure to secure patient assurance. This may be potentially dangerous though especially if accidents happen.

Finance Companies and Banks

Now, there are already several finance companies and banks that provide options for financing the procedure. Individuals can now fill up forms for approval to cover cosmetic plastic surgery. Most companies will tell you that they have affordable and flexible rates but the truth is that applying for a loan may be a little more difficult than imagined especially in banks.

Plastic surgery loans are actually unsecured by collateral. This means that a bank or company may have to meticulously investigate your credit history and report to find out if you are capable of paying. Even if you do pass an application for financing plastic surgery, some companies may have higher interest rates than others simply because it is their only security if you are suddenly unable to pay.