How to Teach Kids to Save Money

Part of your job as parent is to teach your children to save money and be responsible. Many times, this is easier said than done. Kids love to spend money. It's a fact. So what's a parent to do? Here are some tips to help you teach your child important lessons about how to save money.

1. Make kids work for an allowance

Don't just hand your kids an allowance each week. This teaches kids that they can get something for nothing.

Have age-appropriate chores assigned to each child. Teach your children how to do their chores correctly and post their list of chores where they can see them.
Only give your child his or her allowance if they have completed all their chores.

2. Teach them to budget

Money a child earns should be his. But, when children are young, they need guidance. Just as adults have to learn to budget their money, children should learn to budget theirs also.

A good model to follow is to let the child spend 80% of their money any way they please (within reason). The next 10% should be saved and the last 10% given as tithe at church or to a charitable organization.

This teaches children to be responsible with their money, save, and give back to others. You can use this method with allowance, birthday, and Christmas money.

3. Set up a savings account

If you require your child to save a portion of his allowance, put it where your child doesn't have access to it or preferably set up a savings account. An 'official' savings account makes kids feel like adults. It's also a way to keep the money out of reach and they watch their savings grow with interest.

4. Make older kids work for spending money

When kids reach working age, they should get a job. Teaching kids they must work for something they want teaches them to value their belongings. Your teenager will take much better care of a car she worked hard for than one given to her without any cost.

5. Teach kids the difference between needs and wants

Kids want everything their friends have and the latest and coolest gadget. It's important to teach your children the difference between wanting something and actually needing something.

Making your child pay for something they think they will die without helps bring this lesson home for them.

6. Teach shopping skills

As your children grow, use every opportunity to show them smart shopping skills. When the family needs a new car or major appliance, show them how you shop for sales and comparison shop.

You can even do this at the grocery store. Explain how you prepare a menu for the week, how much you have to spend for meals and how much to use for snacks.

Teach your children restraint so they don't go in debt as adults buying things they want but can't afford.

Keep your lessons about spending and earning money appropriate to the age level of your children. Teaching children to save money is a lifelong process but well worth the effort.

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How to Cut Costs at the Supermarket

Here are some well proven methods for saving money at the supermarket:

Meal Planning

Flip through your local grocery weekly ads and find out what are on sale. Then plan your weekly menu around items that are on sale. List each day of the week and plan your dinners accordingly. Fast dinners for busy nights and slow dinners for the nights we are at home. If ground beef is at a good price one week then you could plan on making Meatloaf on Tuesday and Hamburgers on Friday, this way you can buy ground beef in bulk and on sale.

Coupons

Using your coupons in conjuction of a sale is a fantastic way to save even more. Check your local grocery stores and find out which ones double or triple coupons and when. Try to save your coupons until they can be doubled or more.

Shop with a List

Each time you shop for groceries, always prepare a shopping list. Take into account what you already have in your fridge. Base your list on what you need to restock your pantry and what ingredients you'll need for your upcoming meals. When you are at the store: stick to your list.

Buy in Bulk

Buying items in bulk can cut down on costs. I like to bake a lot, so I tend to have lots of butter on hand. When I notice that butter is on sale, I buy 2 or 3 packs to put in my freezer. Buying in bulk when it's on sale can really save costs in the long term.

Bring Along a Calculator

A calculator can help you decide quickly which buys are more worthwhile. You can quickly decided if it's better to purchase the 24 oz. jar of peanut butter or the 16 oz.?

Who'd Have Thought

Shop early in the day. You get through the store faster with your list and spend less.

Shop when you're alone. Those little helpers can quickly boost your bill.

Never buy food when you're hungry; you will buy more.

Food Items Only

Don't buy non-grocery items, such as dishwashing liquid, shampoo, toilet paper, pet food, etc. at the grocery store. Discount department stores usually offer these for less expensive.

Check Again

As you're walking out of the store, double check your receipts. Not matter how careful you or the store staff might be, sometimes mistakes do happen. Catch them early so you can rectify the error on the spot. Once you get home, you'll have a hard time remembering to have that $.50 error corrected.

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Seven Easy Steps to Avoid Foreclosure

Don't spend your hard earned money paying some middleman shyster to work with your lender! You can be your own best representative and the steps you need to take are simple.

All these steps are based on experience and recommendations from the US Department of Housing and Urban Development.

1. DO NOT IGNORE THE LETTERS & PHONE CALLS FROM YOUR LENDER As painful and time consuming as it may be, answer their phone calls and respond to their letters. Most lenders, especially in this economy, have programs in place and are willing to work with you if you communicate with them. Be calm, be patient and open to discussing your situation.

2. BE PREPARED Collect your financial information and share it with your lender. They will want to know:

* Why you are having trouble making your payments

* When you will be able to bring your mortgage current

* Do you plant to keep your home or are you trying to sell it

* Is your shortfall situation short or long term

* What is your current income

* Details of your monthly expenses – utilities, insurance, entertainment, credit card payments, car payments, education…

* Do you have any other sources of income? Can family or friends help you through this tight situation?

Without this information they are much less likely to be able to help you.

3. ASK QUESTIONS The Federal Government and private lenders have programs in place to help homeowners in jeopardy keep their homes. You may qualify for one of these programs. Ask your lender and HUD approved counselor. Should you not qualify for any of today’s programs keep asking. New programs are constantly being developed.

4. STAY IN YOUR HOME FOR NOW Do not abandon your home! If you move out foreclosure proceedings will move more swiftly.

5. DO NOT LIST YOUR HOME FOR SALE If you reasonably expect to be able to afford your home DO NOT put it up for sale. A home for sale is very UNLIKELY to qualify for any special programs, receive forbearance assistance, loan modification or refinancing.

6. CONTACT A HUD-APPROVED HOUSING COUNSELING AGENCY This is far and away your BEST FREE resource for mortgage questions. You will find these agencies provide excellent information on services and programs offered by both government agencies and private organizations that could help you. The housing counseling agency may also offer credit counseling.

7. DON’T PAY SOMEONE TO WORK WITH YOUR LENDER Hiring a middleman is one sure way to spend money you don't have. Use the free counseling agencies available. They provide great insight and will help you determine your best course of action. They will help you interact with your lender and get the best option available to you. Skilled, knowledgeable and FREE!

Overall

Forbearance In forbearance, your lender will agree to a modified payment plan based on your financial situation. Often this includes a reduction or suspension of your monthly payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Mortgage Modification You may be able to refinance your loan at a reduced principal or interest rate and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

Partial Claim Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. You may qualify if:

* Your loan is at least 4 months delinquent but no more than 12 months delinquent; * You are able to begin making full mortgage payments.

Sell Your Home If you are unable to qualify for any of the above options, have some equity in your home and are confident it can be sold quickly you should seriously consider selling the home. It may be better to cut your loses and find another housing solution rather than continue to fight a losing battle.

Pre-foreclosure sale / Short Sale This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan. You may qualify if:

* The loan is at least 2 months delinquent; * You are able to sell your house within 3 to 5 months; and * A new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.

Deed-in-lieu of foreclosure As a last resort, you may be able to voluntarily “give back” your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure. You can qualify if:

* You are in default and don't qualify for any of the other options; * Your attempts at selling the house before foreclosure were unsuccessful; and * You don't have another FHA mortgage in default.

DO I QUALIFY FOR ANY OF THESE OPTIONS? You will have to discuss your situation in detail with your lender to determine if you qualify. A housing counseling agency can also help you determine which, if any, of these options may meet your needs. Often they will assist you in interacting with your lender if needed.

SHOULD I BE AWARE OF ANYTHING ELSE? Yes. If you're selling your home beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following:

Phony counseling agencies

Some groups calling themselves “counseling agencies” may approach you and offer to perform certain services for a fee. These are services you could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services, call a HUD-approved housing counseling agency. Do this before you pay anyone or sign anything.

Equity skimming In this type of scam, a “buyer” approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The “buyer” may suggest that you move out quickly and deed the property to him or her. The “buyer” then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember, signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

Main points:

1. Act now - Don't avoid your lender's calls or letters. 2. Don't lose your home and damage your credit history. 3. Call or write your mortgage lender immediately and be honest about your financial situation. 4. Stay in your home to make sure you qualify for assistance. 5. Arrange an appointment with a HUD-approved housing counselor to explore your options. 6. Cooperate with the counselor or lender trying to help you. 7. Explore every alternative to keep your home. 8. Beware of scams. 9. Do not sign anything you don't understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation.

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Grocery Store Savings Secrets - 8 Ways to Save Today

Grocery store spending can comprise a huge chunk of your family's budget. Fortunately, this is one of the easiest places you can cut back your spending and save money.

Here are 8 must-know tips that will save you big at the supermarket checkout.

1. Never go to the grocery store hungry. Always go to the store after you eat a meal, so your empty stomach won't lure you into making a bunch of impulse buys.

2. Never go the store without a list. If you are just wandering the aisles aimlessly, you'll be more likely to add things to the cart that you don't need. Again, cutting out those impulse buys will cut your supermarket bill drastically.

3. Take advantage of all coupon sources. Time was, savvy shoppers spent hours clipping coupons each week. But with the advent of new coupon technology, you can save money without all the hassle of paper coupons. You'll want to use your savings card, if available, at your local store, and take advantage of the printed coupons your grocery checker hands you along with your receipt because these are often printed to correspond with the items you buy regularly.

You'll also want to Print grocery coupons online. All you need to do is check the box next to the coupon you want and print. This way, you don't have to sort through your coupons for items you'll never use, and you'll never waste money on items that no one in your family enjoys just because you had a coupon.

4. Use a credit card that rewards you for your grocery purchases. These points accumulate quickly if you spend a lot at the store, and that means you could buy something nice for your family – or even take a vacation.

5. Reduce and re-use. What items on your grocery list can you use more than once? Rinse out your plastic freezer bags and use food containers whenever possible instead of plastic baggies. This is a more eco-friendly choice, as well.

6. Save on non-food items by buying in bulk at a superstore. Comparison shop your local discount stores for things like paper towels, bathroom tissue, as well as more expensive items, such as water filters and light bulbs.

7. Try the store brands. Buy store brand items or items in bulk whenever you can.

8. Wash your produce. As soon as you get home from the store, wash and dry your produce and make it accessible to your family. You'll want to cut up vegetables and put the washed fruit in a bowl on the counter. If your fruits and veggies are easy to find and ready to eat, you'll be less likely to find that plastic bag full of liquid veggie buried deep in the fridge in a few weeks.

Saving at the grocery store is really a matter of planning ahead and making informed consumer choices.

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5 Not So Painful Ways to Trim Your Budget

Every budget, either those meant for organizations/companies or personal budgets for a family includes two parts, income and expenses. The economic data over the past two years dealing with everything from bankruptcies to foreclosures to unemployment indicates that many families not only didn’t have a budget, but regularly spent more than they earned each and every month. The end result is the situation we are in now. Pay attention to the following list as it lists a few simple, not too painful changes you can make on a personal level that can dramatically improve not only your short term financial situation but could also potentially set you up for a worry free financial future.

1. Before you can work on trimming expenses to balance your budget you need to create a monthly budget so you can see where your money is going at the moment. This is the foundation of any Personal Finance makeover, without knowing how much money you earn each month after taxes and where your money is going when you spend it, it is practically impossible to improve your long-term financial prospects.

2. The 2nd highest monthly expense for most Americans after housing is groceries and food. The easiest way to blow money here is by not planning out your food expenses in advance and relying on takeout and restaurants for a significant amount of your monthly food expenses. While it is certainly convenient and family friendly to take your kids to the local fast food joint, it is not only unhealthy but also much more expensive than making a home cooked meal. Cut out all unnecessary restaurant trips, plan your food schedule for the week in advance, and stock up on fresh produce and non processed foods as these are typically much cheaper than processed and prepackaged foods such as pizza’s and microwavable dinners.

3. The average American family has two cars, and there are many more with 3 or even 4 cars to each household. While it may be convenient for everyone of a driving age to have a car it is certainly not cheap. Transportation can eat up a huge chunk of your monthly budget especially if you have a decent sized daily commute to and from work. While it may not sound appealing, if you are in a cash crunch try living a month with only 1 car. Use public transportation, car pool, or work together with your significant other so that one person has the car one day and the other has it the next day. Obviously this is not something that can work for every family, but don’t let laziness or inconvenience stop you from trying this out if possible. The savings may shock you as not only is your car payment a huge expense each month but don’t forget insurance, registration, gas, and repairs!

4. Cut down on your phone services. Most Americans nowadays have a cell phone plan as well as some sort of home phone service. You have two relatively pain free options when it comes to cutting down your monthly phone bills. One, eliminate your home line and rely entirely on your cell phone. While this option can work for most Americans there will be some that still need a home based phone line for business or international calls. The second option you have is to switch over to an internet based home phone line using Vonage, Skype, or MagicJack. All three of these options use the internet to make and receive phone calls on your home phone. Not only do they work just as well as your traditional phone line but they are also much much cheaper. Give these a shot before you cancel your home phone line to make sure it is something you are comfortable with.

5. Cut down or eliminate your television package. The average cable or satellite TV package now costs a consumer over $80 per month in this country. That’s almost $1000 per year that you handing over to your TV provider. Is it worth it? While for some it is, for the majority of viewers they don’t nearly get enough enjoyment out of this $1000 to make it worth it. Before I recommend getting rid of TV all together, I will recommend some other options. Downgrading to a basic package by itself can cut that average bill in half, and skipping on the HD and DVR boxes can save you another $20 or so per month. If you do want to eliminate your cable/satellite TV completely you can still enjoy TV. Hooking up a digital antenna will allow you to get HD signals of your local stations for free and an antenna typically costs less than $50 and the setup is very easy. If your favorite shows are not on a local station head online as many TV stations now broadcast their content online for free.

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