Earnest Parenting » Finances

10 Apps That Will Teach Kids How to Handle Money

Amy LeForge — Thu, 22 Sep 2011 15:23:38 +0000

(Editor’s note: Carol has a list of resources for teaching kids to handle money wisely. Thanks Carol!)

Even before they reach school age, children are capable of learning quite a few things, and it often falls to the parents to get kids started with learning their letters and numbers. But you should also consider teaching your kids about money before you send them off to the school yard. This valuable skill will help them to buy milk in the lunch line, in addition to improving their math skills. And here are just a few fun apps for smartphones and tablets that are bound to help the lesson stick.

1. The Game of Life. This classic board game receives a reboot for the Apple set with 3D graphics that are sure to delight kids, as well as a money earning (and losing) premise that will give parents the opportunity to teach them about money with real-world applications (earning a salary, paying for a home, etc.). Rated for ages 4 and up.

2. Count Money – Coin Matching Game. Apple users will appreciate this basic game that teaches young kids to identify and differentiate coins, as well as count them (although it doesn’t include an introduction to monetary values). You can add your own voice to personalize the game, and although it is a simple premise, it won’t cost you a dime.

3. Peter Pig’s Money Counter. Android phones are in the money with this handy app that takes counting coins a step further by not only giving lessons on which coins are which, but also on adding the values rather than just the number of coins. And for the awesome price of nada, it will save you a few coins along the way.

4. A Money Tree. Apple offers the 411 on money counting with this game that helps kids differentiate coins (which fall from a tree for players to catch in a barrel) and add them up, all for only $0.99.

5. EZ Money Counter. Even BlackBerry has gotten in the game with an app that helps teach kids to count the coins in their hot little hands. For just $0.99 you can provide your kids with a calculator that will instantly check their addition when it comes to adding up the value of their quarters, dimes, nickels, and pennies.

6. Kids Money. If you have an iPhone, iPad, or iPod Touch, you’re in luck, because this app was made for your kids. With great graphics to entice the young mind, and features aimed at helping kids figure out how to save money to reach their goals (the Barbie Dream House or a BMX bike), this free app will soon have kids excited about the prospect of saving and spending their money.

7. Monopoly. Whether you’re passing Go and collecting $200 or paying income tax, you can have fun teaching kids about money with this game for your favorite Apple device. It can be yours for $9.99.

8. Save! The Game. This free Apple app is actually a game that requires kids to save up money and take it to the bank. But they’ll have to avoid temptations that will take their dough, like candy and toys planted along the way.

9. Kids Math Quiz. Although this app for BlackBerry devices is a little steep at $9.99, it offers added value in the way of providing instruction in basic math, including adding and subtracting, which will definitely help your kids when it comes to learning about money.

10. Managing Money for All Ages. This app for Android phones comes with ten lessons for family members of all ages, starting with those who think a lemonade stand is big business. But it will remain useful as kids get older, preparing them to avoid bad investments, money management schemes, and credit cards for bad credit, while teaching them how to make good financial decisions. Considering it costs less than two dollars, you’re bound to get your money’s worth.

Carol Montrose writes for Granite Card where you can find articles on all things credit and finance related.

Earnest Parenting: Tips for parents who want their kids to be wise with dollars.

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Financial Guide When Planning a Family

Amy LeForge — Mon, 01 Aug 2011 12:06:00 +0000

(Editor’s note: please welcome Chris with some suggestions for managing finances in advance of having children. Thanks Chris!)

If you are expecting a baby in the coming months or planning to start a family, there are financial matters you’ll need to consider. When the baby arrives you will have additional expenses to deal with. If you haven’t prepared for that, it could put a significant strain on your finances.

According to LV=, children cost on average £200K from birth to when they graduate at 21! That amount looks astronomical at first glance, but that includes feeding, clothing and educating your child as well as the other essentials over 21 years.

Most people need to live within a pretty strict budget of some sort to keep the family finances on track – and budgeting can also help to avoid the need for borrowing. If you’re planning a family, or you’re a new parent, you can follow the link for more budgeting and money-saving information.

In the meantime, here are some financial matters that all parents-to-be should be thinking about.

Getting your finances in order

Life Insurance In the event of your death, life insurance could pay out a lump sum or a regular income to your loved ones. You might feel it’s morbid to think about your own death, but at the same time there’s obviously a financial element in your responsibilities to your child. If you died while they were a minor, would your partner be able to support them? This can be particularly important if you are the main bread-winner.
Write a will On the subject of mortality, making a will can provide peace of mind. No one wants to think about dying, but you may find peace of mind knowing exactly where your finances will go.
For example, if you and your partner are cohabiting, but not married, they won’t necessarily be left with anything if you’ve not left a will. Also, without a will, there could be debate or confusion as to who would look after your children in the event of your death.
Savings You may not have £200K (approximately $321,000) in the bank right now, but hopefully you will have some savings for the new arrival! When the baby arrives, there’s likely to be a lot of initial expense that you didn’t have before – and that you might not have expected – and this can put a strain on any budget. However, whatever amount you can save will improve your future financial security.
See your savings as ‘an emergency fund’ for unexpected costs that crop up. Most financial experts suggest three months’ income as a good ‘safety-net’.

It just makes sense to start saving before the baby arrives and organize things like your will and life insurance in anticipation of their arrival. When they do arrive, you’ll be very busy getting to know your baby and might not find the time for financial matters like this.

Related resources:

Photo provided courtesy of Matt Stratton via Creative Commons license, some rights reserved.

Earnest Parenting: advice for couples planning a family.

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Teachable Moments: Setting Financial Goals With Kids

Amy LeForge — Tue, 26 Jul 2011 13:18:42 +0000

There are many moments in life when you can best teach a particular concept to your child; when they’re more receptive to your instruction. As parents, we look for those moments and use them as often as we can. Let’s face it, sometimes getting a child’s attention can be difficult these days. With so much going on all the time, they don’t always catch all the lessons we’re trying to teach.

Given all the concern we have about these uncertain economic times, it’s more important than ever to help our children grow up and handle their finances correctly. There’s so much to teach though! Managing money is not one simple skill; there are so many facets to it that you really need to be working on this concept as often as you can.

So here’s a question: What teachable moments have you had with your kids about finances? I bet you’ve already had several. Money has so many uses and is an integral part of every day life. In our house, we’ve tried to talk about it as much as possible, especially making the “debt is BAD” connection. If something comes up in conversation and the boys question it, we try to stop what we’re doing and talk about it right then, when they’re listening.

We’ve given them allowances as well. Do you do that? We’ve gone back and forth on it for years, not sure if this was the right plan. There have been changes back and forth, but mainly we’ve done an allowance tied to chores. We want them to handle money, but yeesh, paying out allowances can get expensive! All of the boys have savings accounts now. I’m not sure when to let them do checking. When they’re 16, perhaps? The accounts were opened partially in self-defense. Having cash on hand meant that every time we went to the store, the boys wanted to spend spend spend. We let them do that for a while, but they didn’t seem to make the “I’m broke and can’t get what I want” connection, partially because they were buying junky items that broke quickly. Having the accounts means they’re saving up and getting bigger ticket items. We’ll see how that works out. I think it’s individual to each boy, as they’re handling it differently already.

Have you ever tried to explain inflation to your kids? Wow, that’s a hard one. Given that boys don’t hold still long enough for me to give them the 3 hour lecture, I’ve had to learn how to distill concepts down to very simple explanations. Sometimes it feels bad to give them an explanation that’s not terribly complete, but it seems to be true that getting the vocabulary in their heads and then refining their understanding over time works. I hope.

This is why I’m so pleased to share The Great Piggy Bank Adventure from T Rowe Price with you. The good people at T Rowe Price teamed up with Disney to make an online game that helps kids play with money and gives parents the opportunity to have teachable moments regarding finances. I played the game and enjoyed it greatly! The boys were also very interested and had a wonderful time; even the 13 year olds were into it.

The super exciting news is that I am doing a giveaway in conjunction with The Great Piggy Bank Adventure! Come on back later today to enter to win a Flip Camera and some great booklets that help with the financial discussions with kids.

See you then!

Earnest Parenting: advice for parents who want their kids to learn about finances.

Get your bonus copy of my book Fun & Free Activities for Families on a Budget. Download here

What the Flintstones Taught Me About Budgeting

Amy LeForge — Thu, 30 Jun 2011 21:12:04 +0000

(Editor’s note: please welcome Krisca’s post on budgeting today. Thanks, Krisca!)

Some of the world’s best-kept secrets about money are found in the unlikeliest media. If you have ever watched the cartoon series The Flintstones Family, you wouldn’t consider it the best place to pick up nuggets of wisdom about money.

But there’s something about Stone Age culture and the way the entire community lives that can provide helpful insights into how you can take better control of your spending habits today, millions of years and thousands of dollars later.

Not so new after all

If you’ve ever thought that your money problems were brought about as a necessary evil in modern living, you can now change your opinion. Limitless credit lines, aggressive marketing tactics and online shopping havens are not an exclusive feature of 21st century life.

A lot of our financial dilemmas are actually hard-wired into our DNA. Some things never change, and despite the passage of thousands of years we still cling to the same old habits that have become our undoing over and over again:

● If he has it, I want it.
● More is always better than less.
● Kill it and eat it before it runs off.

These three instincts guide most of our everyday decisions and thoughts about money. When handed a pamphlet for a downtown apartment for $1,200/month with renter’s insurance requirement and exclusive of utility charges, the average person don’t really go through the numbers and what they mean. Instead, he focuses on whether or not the apartment is near the subway station, his favourite coffee shop, the newest Italian trattoria in town and the park.

We tend to think in terms of superfluous comforts rather than the actual repercussions of our money decisions we make. So what if the apartment is near your favourite coffee shop? If you can’t afford it, don’t get it. That is the heart of the problem—we want it and we don’t always have the means to get it, but we do get it anyway.

Crunch those numbers

Our ancestors have been just as flummoxed by money as we are today. Instead of facing complex financial problems head-on and grabbing the nearest abacus to calculate things, we tend to look for primitive factors to back up our decisions and justify the problems away.

The fact is that the problems can’t be magicked into oblivion. If you’re in debt, you have to pay your monthly amortizations. If you have a limited income, you have to look for ways to augment it. If you need to bootstrap and stop making impulsive credit purchases, don’t wait for next month’s statement before you do something about it.

Watch what you spend

Rather than giving in to your ancient instincts about need, want and money, try to be a more rational decision-maker the next time you’re in a mall or boutique. Addiction to shopping is no longer just a weird habit but a genuine scientific phenomenon that experts are trying to analyze.

Dubbed the shopping momentum effect, experts say that people can lose their grip on their wallet (literally) if they let themselves get carried away in the act of shopping. There’s a significant shift in our attitude towards buying—from being deliberate shoppers who weigh the pros and cons of buying an item, we turn into implementative customers who don’t even bat an eyelash as we hand over our cash and plastic money.

That age-old pleasure of acquiring something that you need or want is what keeps us going, even after we’ve already maxed out every credit card in our wallet. The next time you go on a shopping spree, take a coffee break or watch a movie in between making purchases. This will stop the mad rush of shopping momentum in your blood and return you to your senses.

Believe in compounding

Another bad element that keeps humans from saving up enough money for tomorrow is the fact that we never really grasp the importance of putting money into a savings account. If you commit to save $100 every month for the next 10 years, you would have $12,000 in the bank, more than enough to go on an extended five-star holiday in your destination of choice.

And that’s just $100 a month— imagine if you can save a bigger amount and allow it to be compounded over a longer period of time.

Despite the obvious advantages of saving money, most of us still choose to buy today rather than save for tomorrow. This is called hyperbolic discounting, which is a screwed-up prehistoric mindset that tells us that we have now is worth more than what we don’t.

A Caribbean cruise holiday sounds good in the abstract, but you’d have to wait a couple of years before you can make it happen, so you choose to buy a sleek e-reader now. This is a great example of hyperbolic discounting at work. You can counter it by trying to plan for the long run instead of doing short-term budgets.

When not out building relationships with other bloggers, Krisca Te can be found reading blogs that tackle simple living. She is also a personal finance freak who is currently working with Australian Credit Cards, a personal finance blog based in Sydney, Australia, which wrote about 3 Stupid Things Smart People Do With Their Money.

Photo provided courtesy of COG LOG LAB via Creative Commons license, some rights reserved.

Earnest Parenting: tips for parents who want to budget.

Get your bonus copy of my book Fun & Free Activities for Families on a Budget. Download here

Great Money Saving Tips for Drivers

Melissa Cameron — Sun, 12 Jun 2011 09:15:32 +0000

мека мебелAs some of you may remember, my daughter Rose is about to turn 16 years old and start driving. That fact got me researching the Internet to get safety and car insurance tips online. I also started to learn about how to save cash when driving your car. I’ve assembled more than 15 cost saving tips below that will help you become a frugal driver.

I’ve come up with information on cutting driving costs and offer them below under four categories: insurance, fuel, repair and maintenance. Taken together, these tips can really save drivers a lot of money. Use them to your benefit.

Frugal for Car Insurance

For some reason, many people do very little research on car insurance costs. Some simply use the same agent their family has used for years or find someone in the phonebook or on the Internet without checking out prices. The web is the perfect place to comparison shop for car insurance and to also get free health insurance quotes. It doesn’t take long and you’ll learn a lot and probably save some real money.

Cut Fuel Costs

I found some great ways to cut down on gas costs and most are very simple. Here are five.

Walk or bike rather than drive. If you can, this will save money and work towards improving your health.
Use regular gas unless your car manual says otherwise.
When driving at high speeds, keep your windows closed and air conditioning off. Both will increase fuel efficiency. Try using your vents to cool the interior of your vehicle.
Proper inflation of tires can save you money by increasing gas mileage. For every pound your tires are under inflated you lose 2% off your fuel mileage.
If in line of waiting for someone for 45 seconds or longer, shut off the engine. Idling for extended periods of time eats up gas.

If you’re at the drive through and there’s a delay simply turn off the engine. Don’t start it until it’s time to move. It’s that simple.

Keep Repair Costs Down

Everyone complains about car repair costs. Let’s face it, they never happen at a good time and they always cost more than you hoped they might. Here are a few things that you can do to keep costs low.

Do your research and buy vehicles that are inexpensive to fix and have good repair records.
Make sure you follow the car’s maintenance schedule.
Know some of the basic about car repair; if you don’t understand cars and how they work, take someone with you to the shop who does. Know what is being repaired and why. You may not need to get it done now or at all.
Go to a reputable shop recommended by friends and relatives. Word of mouth is one of the best references in this area.
Prior to ever needing a repair call around and see how much different shops are charging for brakes, timing belts and other such repairs.

Education is key when it comes to being a smart consumer of car repair services. It’s up to you to get the facts.

Proper Maintenance Can Save You Money

Maintenance is an area where all of us can save money. Here are five useful tips that make for a frugal driver.

Perform basic maintenance, such as oil changes, air filter replacement, and tire rotation, in a timely manner. This practice will save you money.
If you can replace air filters, lamps, oil filters yourself, then do so. But only if you know what you’re doing.
Don’t forget to rotate your tires. They will wear longer and give you better mileage.
Look for sales on tires and purchase them ahead of time. Eventually you’ll use them.
Change engine oil on time. This will keep your engine’s moving parts lubricated properly, cutting down on wear and tear and extending its life.

What Do You Do?

Okay, now it’s time for you to have your say. Tell me what you do to save cash when driving your car. Is there anything that I missed? I’d really love to hear from you. After all, there’s nothing like saving money. Right?

About the Author

Melissa Cameron is a freelance writer living in Austin Texas with her husband and two daughters. She uses the Internet to research articles and to find great deals, saving her family a lot of cash along the way. Melissa writes about a variety of topics, including insurance, cooking and the outdoors. Last year, she and the family went rafting down the Colorado River. It was a spectacular experience that they will never forget. These days, she’s preparing for her eldest daughter’s first driving lesson.

Earnest Parenting: tips for parents who want to be frugal drivers.

Photo provided courtesy of Live Laugh Love via Creative Commons license, some rights reserved.

Get your bonus copy of my book Fun & Free Activities for Families on a Budget. Download here