Teach Them While They're Young

It's never too early to teach your children the basics of thrifty economics.  You will save them so much heartache later if you teach them now, while they're impressionable.  From early on, my kids have learned I won't buy anything they ask for at the grocery store, unless it's on my shopping list and I have a coupon and/or it's on sale.

My eldest (age 7) is learning the financial pressure of debt.  He really wanted to buy a certain toy.  When he discovered he didn't have enough, I encouraged him to wait until he had saved up enough to buy it.  However, if he still wanted it, I would buy it for him, but he would have to pay me back the loan amount plus interest after the grace period.  I know it seems harsh, but it has been a valuable lesson for him.  He has realized his purchase wasn't worth the stress he feels to earn the money before interest starts accruing.  I figure it's better for him to learn this lesson now over a few dollars than it is for him to learn it when he's older and facing a much bigger monetary amount!

What do you do to teach your children money-saving skills?

Feel Great--- Donate!

This might seem counterintuitive for a thrifty blog, but I believe it is so important to donate to charitable causes.  There are so many benefits from donating:

• Most importantly, you get to help someone else.
• Helping others helps you feel good.
• It teaches you gratitude for what you have.
• It takes your mind off of yourself and your money...helping to realize that money isn't everything.
• It helps you spend less because you realize how good you have it.
• Surprisingly, there are financial benefits as well, and I'm not talking about tax deductibility.  Arthur Brooks, a noted economist, shared a study he did about how giving makes you more profitable.  And you don't need to be rich to enjoy the benefits of giving.  To learn more, read his speech here.

So donate today (your money, your items, your time) and help brighten someone else's day!!

Refinancing?

Do you own your home and are you considering refinancing?  Be sure to calculate the money you will save each month with your new payment and compare it with the upfront closing costs.  Then calculate how long it will take for you to "break even."  For example, you may need to live in your home (and not move) for 2 more years before you will really begin saving money.  If you know you won't be moving in that time period, then perhaps refinancing is for you.

*Hot Tip-- When you refinance, keep paying your previous mortgage amount.  Call your mortgage company to ensure that the difference goes toward paying down your principal.  You will save thousands of dollars in interest over the years!

Jamie

Health Insurance

Health care is a hot topic right now in our nation.  While I don't agree with the legislation our "representatives" are trying to pass right now (we won't delve farther into political topics here), I do recognize that health care costs are very high.  So high, in fact, that you cannot afford to NOT have health insurance.  Seriously, this is one area you should not skimp.

Case in point:  Being a young family, it could be tempting to think that none of us will get seriously sick, and so we don't need health insurance.  But you never know what may happen.  For us, one of our children, though healthy, was born with an abnormality that needed to be corrected.  If we had not had insurance, the costs of surgery, hospital stay, specialist visits, and MRI would have cost us over $40,000!

If premiums for health insurance do not fit into your budget, find a way that it does!  Shop around for the lowest rates (choosing a high deductible plan is usually cheaper...giving you insurance for those truly catastrophic times).  Cut out other expenses (cable tv, cell phones, meals out) so that you can afford health insurance.  Believe me, it's worth it!!

Jamie

Informative Family Finance Site

Whether you are a member of The Church of Jesus Christ of Latter-day Saints (as I am) or not, they offer an excellent website with information on family finances.  There is even an online financial course!  Check it out here.

Jamie