Browse Category: Saving

great-allowance-debate

The Great Allowance Debate

Allowances. To give or not to give. It’s a hot topic.

To put it simply, I think there are three main camps:

  • Don’t give it at all. I already feed, clothe and shelter you.
  • Give it unconditionally. Here is some money and it is yours.
  • Give it conditionally, based on desired actions. Here is money for completing X chores, getting Y grades, etc.

And we…

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not-motivated-by-money

My Kid Is Not Motivated By Money

At the end of every school year, the teacher sends home a few summer learning packets. There is normally a packet for math and one for reading/language skills.

You’ve probably heard the statistics on summer learning loss — that kids lose at least one month of learning over the summer. I’m in favor of the idea of these packets, but in practice they’ve never worked for us.

We just don’t get around to it. Summer is busy and fun, we’re outdoors trying to soak up every last bit of warm weather and daylight that we can. We’re doing all of the things that we don’t get to do the rest of the year — swim, camp, picnic and hit the local amusement parks.

So this summer, I had a brilliant idea (or so I thought). I had the solution that would motivate J to want to do those worksheets.

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Header image for important lessons I learned from my parents post

Important Lessons I Learned From My Parents

A few weeks ago, J and I went out to dinner with my parents. When the check came, my dad asked J to calculate the tip. Luckily we had just talked about this, so he was able to figure it out — but it made me think about all of the other money and finance lessons I’ve learned from my parents.

So far I’ve mentioned that my dad would drill me on the rule of 72 and part of any money I received had to go towards opening savings bonds, but there were many more lessons over the years.

My dad was relentless with the sayings:

  • Don’t put all your eggs in one basket
  • You don’t have to spend it all!
  • Don’t spend more than you make
  • Save some for a rainy day

When I was in middle school, he took me to our local credit union and we opened a checking account. He showed me how to write checks and use an ATM card.

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National Bank of Mom The Rule of 72

The Rule of 72 and Exponential Growth

Have you heard of the Rule of 72? (It sounds boring, doesn’t it? I promise you, it’s not.)

The Rule of 72 is a quick way to determine how many years it will take for money to double with a given interest rate. Divide the interest rate into 72 and get the approximate number of years.

For example, at 8% interest, money will take about 9 years to double.

72 / 8 = 9

So let’s say that you have $100. In 9 years, you’ll have about $200.

When I was a kid, my dad would drill me on the Rule of 72 — mainly in the car on long trips. At the time, it wasn’t very interesting. So what if I’d have $200 in 9 years? (Actually, it seemed terrible. I’d have to wait 9 years to have a measly $200? Why was that worth talking about?)

The key, though, that makes this concept REALLY powerful is…

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National Bank of Mom 3 Amazing Resources That Helped Me Get Control of My Finances

3 Amazing Resources That Helped Me Get Control of My Finances

Being a blogger who writes about teaching my son personal finance — maybe you think I’ve always been good with money. That’s what gives me the creds, right?

Eh… not exactly.

I’ve never been in a really bad place, but I’ve never felt really good — like I was in control and going in the right direction.

It’s not for lack of trying. I tried for YEARS to get it together and feel good about my state of affairs. I’ve always balanced my checkbook and attempted budgeting at various points in my life (even enlisting my cousin’s help as she learned about it herself). There were homegrown worksheets and an elaborate configuration involving a shoebox and manilla folders with the days of the month for organizing receipts.

But I didn’t have a system that worked. I didn’t have a direction, or goals, or practical steps to take to meet those goals.

Until three years ago.

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