Lessons to Teach Your Kids About Finance

Talking to your kids about money is like being their financial fitness trainer. You help them to achieve the goals they want while teaching them core values they need in order to build financially fit traditions.

Here are some valuable lessons for the fitness trainer in you:

1. Give them control of money. Try taking a small amount of your monthly budget and giving them control over its spending. The results at first will probably be that they spend too much on frivolous things. But when they want other things, they will have to save.
2. Teach them to save for money goals. Once they surpass the impulse buying stage, they’ll want to buy something larger. Show them how long it would take if they saved a certain amount to reach their goal. Make it fun! Creating a chart or visual of their savings to show the progress goes a long way keeping them involved.
3. Teach them that reducing expenses makes goals come faster. Kids will quickly understand that spending less equals saving more. Reinforce this with a discussion about the decision they are making when they spend money.
4. Teach them how money makes money. Set longer term goals for your kid’s savings. If they reach those goals, reward them by depositing a small amount of cash to their savings. Compare it to interest, showing them how their money can work for them.

Next week, my Brother Johnnie will be sharing more tips in part two of “Lessons to Teach Your Kids about Finance.” Until then, have a great weekend and remember…

The Mint Makes It First, It’s up To You to Make It Last

-Jainie-

Grocery Savings

When you mention savings at the grocery store, most people think of the TV show Extreme Couponing. Simply put, extreme couponing is paying $200 for over $1,000 worth of groceries. While tempting, cutting coupons for hours a day isn’t for everyone. Here are some tips on building a better tradition without using up all the time:

Plan meals in advance
One of the easiest ways to plan a shopping list is to work backwards. Start by planning a few meals you and your family would like to have over the next several days, and then list the required ingredients for those meals.

Shop once a week
If you know this is your once-a-week visit to the grocery store you are more likely to plan and make a complete list so as to avoid a trip again later in the week.

Use coupons You don’t have to be an extreme coupon cutter to save $5 or $10 dollars a week. Over time the savings will add up. To avoid cutting coupons, use websites like retailmenot.com for quick savings.

Stay away from the inside of the storeUnless targeting something very specific. Stick to the perimeter of the store, for the most part, stocking up on meats and fish, dairy and produce. This keeps any of those tempting junk foods from jumping out at you.

Make it a game! Building the tradition of financial fitness doesn’t have to be a bore. Visit moneyfittips.com and share your tips on our forums.

The Mint Makes It First, It’s up To You to Make It Last,
-Jainie-

Friday Fit Tip: Impulse Buying

It’s easy to skip that Friday workout, or eat a little junk food. An occasional break or reward is not the end of the world. However, we often hurt ourselves and lose site of the traditions we were trying to build. Impulse buying is surprisingly similar. Here are some Friday Fit Tips for squashing the impulse bug:

Practice saying no to the kidsAs moms, we don't always have the luxury of being able to leave our kids with dad or a sitter while we shop. If you take your children with you, build a healthy tradition of self-control by saying “no” to their pleas of impulse buying. Letting your kids write the shopping list and find the items is a great way to keep it fun.

Food Shopping? Eat firstThere is a reason they put the deli and the bakery right by the door. Going hungry makes it easy to make irrational buying decisions. This includes picking up items you can unwrap and eat in the car. These items are usually more expensive than something you would eat at home.

Pay with cashWith cash, you have a running total of what you’re spending in real time. You are unable to spend more than the cash you have. Most people make better buying decisions when it comes to facing cash instead of plastic.

We often want what we can’t have. Set aside some cash in your budget for small impulse buys so you don’t have to chastise yourself. That way you get to reward yourself and build a great tradition all at the same time.

The Mint Makes It First, It’s Up To You To Make It Last

-Jainie-

Fit Spending in the New Year

Happy new year everyone! I hear a lot of people making New Year resolutions to cut back on spending and really hammer down on savings. It’s great to take that initiative, but I always stress that you can’t form a tradition overnight. You have to build it step by step. Here are a few steps to help you spend smart in the New Year:

Leave Some Room in Your Budget
Strict calorie diets aren’t for everyone, and neither are strict budgets. Consider developing a spending plan that uses ranges for each category instead of exact numbers, and aim to stay within the designated range.

Calculate Purchases in Terms of Hours Worked
When you're debating buying that $110 pair of shoes that you don't necessarily need, compare the price tag to the number of hours you worked to earn that sum. So, if you earn the equivalent of $11 an hour, ask yourself if it's worth ten hours of work.

Consider Going Cash Only on WeekendsIf your spending plan is plagued by weekends, consider restricting yourself to a certain amount of cash and leaving the cards at home.

Adopt a Cooling Off Period
Define a cooling off period to give yourself to think about an item, and if you still can't live without it after a few weeks it's no longer an impulse buy. Just make sure you save the money for it instead of putting it on credit.

Let’s work together to make 2012 the best yet. Join us in the forums to let us know your tips for spending smart and staying financially fit!

The Mint Makes It First, It’s Up To You To Make It Last

-Jainie-