Money Management Tips for Kids

Financial experts teach us to plan a budget and live within our means. They show us how to manage finances and create a stable financial future. They also teach us how to use credit cards without incurring huge interest and overwhelming credit card debt. Let’s look at what these financial experts teach their children and what valuable lessons they put in practice within their own families.

 1. Manage Your Money: Earn to spend:

Financial experts believe that kids should learn the value of a dollar. Most financial experts encourage their kids to work and earn at an early age. It may be simple jobs around the house like  pulling weeds in the yard or vacuuming the carpet, or even selling to friends and family but kids need to learn to earn before they learn to spend. This will teach them to value work.

2. Money Management is all about Choices:

Financial experts take their children shopping so that they learn to spend money wisely. Often a child will ask for something impractical, just because they see it on the shelf. The key is to instill in them the idea that there are choices to live a healthy financial life. We need to help them understand that your income is limited and your wants are unlimited, so you need to have a proper plan regarding how to spend your hard earned money so that you get the best use out of it instead of buying it all.

3. Gratification can pay off:

When a kid earns money he needs to have the gratification of spending it as well. They should be able to spend a portion of whatever they earn any way he or she chooses. This teaches the benefits of money and hard work.

4. Money Management includes Savings:

Kids should  be encouraged in the money management skill of saving a portion of what they earn. They should have a pot of money stored away that is all their own and should be motivated to save 10% of the earnings from their jobs. This saved be saved for a larger item that they really want like a bicycle or electronic gadget or game.  See the article on the Jars method of Saving for more information.

5. Money Management and Giving Back:

Kids need to learn early the value of giving back and tithing. It is an important principle, most money managers believe that if we only hoard our money and don’t give any back to others, we become “financially consitpated” most truly rich people are also good givers.  In addition, around Christmas time, children can be encouraged to give old toys to children who are less fortunate. Doing this, will help children feel blessed and help them to realize that not every kid out there is as well-off.

6. Resources are Limited:

One money management lesson children need to learn is that resouces (and space) are limited. As they outgrow their toys, they should be encouraged to sell them (if they haven’t given them away already) to make room for new ones and to get some spending money so they can buy something that they want more. Encourage children to pick up the toys, books or items that they do not do not use any more and have a yard sale. Kids enjoy the preparation for (and proceeds of) the yard sale and learn many things in the process.

7. Manage Your Money- Learn to invest:

Another key money management skill kids should start learning is about stock investments. Believe it or not many financial experts believe they can start as early as age 13. You can open a brokerage accounts for your children under the Unifor gifts to minors act and maintain control and sit with them and explain it when the statement comes. This way the children learn how to invest in stocks and how to select and evaluate the companies.

 8. Involve Kids in Budgeting:  

Budgeting is a family affair and therefore, kids should be involved. Let the kids in on the discussion of how the money should be spent and on what. Money management experts even want their children to know how much money to be spent on a vacation, home improvements and furniture. This way children help in making decisions about budgeting and savings and know how much things should cost.

 9. Money Management 101- Debt is Bad:

Experts tell us that debt is bad. The best way to impress this on your own kids is to loan them money and charge tham interest. Make it painful. Show them how much of their payment is going toward principal and how much is going to pay interest. I did this with my son when he wanted a bicycle and couldn’t wait until he had saved up enough money. He had received about half of what he needed as Birthday presents etc. So I loaned him the rest and charged him interest on it. Every payment he hated paying the interest and not seeing the balance go down. He ended up paying the loan back early and has hated debt ever since.

10. Think outside-the-box:

Children are naturally creative and they should be encouraged to be innovative in their business ideas and think outside-the-box. A family I know lived in a house that bordered on the 9th hole of a golf course. The kids were always finding golf balls in their swimming pool. So they set up a stand to sell cold drinks and golfballs to the golfers. The golfers found this to be a welcome break on a hot summers day (and the kids made a very good income).

Retirement Costs

When planning for retirement costs, financial planners often calculate costs decreasing during retirement but there are some costs that will increase in retirement. It is important to plan for them. There will be a number of costs to consider when you’re approaching retirement.  Budgeting may be easier because many costs will decrease like commuting, work clothes, lunches, dinners out when you are too busy to cook but there are at least 5 basic costs of living, which increase when people retire. These include:

1. Home/Property Maintenance Costs

The good news is that you will have more time to maintain your house but the bad news is all those repairs you’ve been putting off will cost money for materials even if you do the work yourself. It’s very likely that the cost of maintaining your home will increase during your retirement years, especially if you bought it many years ago and have been living in it for a while. The cost of home maintenance and improvement usually rises after retirement due to the age of the house and the need to replace things like the roof and the water heater, furnace or heat pump, etc.

2. Rent Costs

Having a roof over your head is always an important consideration. But it is also one of your major living expenses. Rent can cramp your lifestyle if you’ve not planned for it. One advantage of renting is that you don’t have to worry about maintenance or the associated costs. If you’re planning for your retirement and have not bought a house, budget for increasing rental costs in retirement.

3. Insurance and Medical Cost

Once people retire, their insurance and medical costs seem to increase as well. Unlike life insurance where you can lock in a rate for the rest of your life, as medical costs rise so do the costs associated with health insurance. In addition the more you use it the more the insurance companies charge you and of course as you age your need for healthcare increases as well. Stay active even after retirement to keep yourself in good shape, both physically and mentally.

4. Utility Costs

Let’s face it; weather conditions and oil shortages are two important factors that keep fluctuating over the years. As energy demands increase, so do utility costs. Energy demands increase once you are home all day. You can’t cut back on heating and cooling while you are away if you are at home. Plus as we get older we often like to keep the house a bit more “comfy” than  when we were younger. So, plan for higher energy bills when you retire.

5. Vacation and Recreational Cost

This is a cost we all want to increase! For some people, retirement means a time to fulfill all their hearts desires – a time for relaxation and leisure. They look forward to doing all the things they couldn’t do during their working days.  In the early years of retirement people want to travel and do all the things they put off while they were working.  So in addition to maintenance around the house they will probably travel more, eat out more, and generally have more time for recreation whether it is golf or just visiting outlet malls.

These are just a few ideas on how you can spend your retirement. The most important thing is to thoroughly think it through and decide on how you want to shape it. Moreover, remember to plan with the possible increase in retirement costs.

One way many people are reducing retirement costs is through moving to a lower cost location whether it is in the U.S. or in one of the many retirement havens abroad. See: Retirement Abroad: Affordable Retirement Living for more information.

About the Author:

Allan has been interested in the financial aspects of retirement for quite some time including tax, smsf, and pension funds. As Allan loves writing, he combined both interests and started blogging!

Your Credit Score

There is more to your credit score than steady payments. Lenders look at things like how many accounts you have, how much credit you are using and how much you have available. Managing the credit score can be tricky, but it is possible with smart borrowing.

Maxed-Out Cards are a Red Flag

There are certain things that will ding your credit score, and one of them is credit cards that are continually at their credit limit. It shows that you lack self-control, and your score reflects that. Lenders want to know that you are responsible, and one way to show that is to keep balances on all cards well below the credit limit. While there are no firm rules regarding acceptable levels, most experts agree that your balance on any card should be less than 50 percent.

Excessive Credit Can Damage Your Credit Score

When it comes to credit, there can definitely be too much of a good thing. Having 20 credit cards might make you feel like your credit is excellent, particularly if they all have a clean payment history. Unfortunately, it can make creditors feel that you are overextended. It’s better to have a few credit cards with low balances and clean payment history.

Open Accounts with Zero Balances are Scary to Lenders

Lenders don’t just look at what you owe today. They also consider what you could owe tomorrow. This means that all those store credit cards can be hurting your score, even if they have a zero balance. You should only open an account when you have a purpose for it. Never open an account just because it will net you a free toaster or a percentage off. Don’t reply to offers in the mail because you think you can never have too much credit. The truth is, too much credit can hurt your score. If you already have accounts that are not used, you might want to consider closing them.

Spending Sprees are Never Good

If you go out on a spending spree and suddenly use a chunk of credit, your score will take a hit. The fear is that something has changed in your life and you are trying to live off the credit cards. Be responsible with your credit. Pay cash for the little extras in life, and avoid going on any spending sprees with credit.

Robbing Peter to Pay Paul Shows

Taking cash advances on one card to make the payment on another will show on your credit report. Part of the report includes the minimum payments that are due, and the banks are very quick to see that you have more going out in payments than you have coming in. A clear sign of being overextended with credit, this will damage your score and prevent you from getting credit. If you are currently falling into this trap every month, then you should consider making some drastic changes to eliminate the debt.

Smart use of credit and borrowing will keep your credit score high. Use credit wisely, and avoid the temptation to charge when you can pay cash. Keep balances low, and resist the temptation to apply for any credit you do not actually need. These little habits can make a big difference in your credit score, and that can reward you with more favorable terms when it’s time for a house or new car.

Credit cards are part of our modern society. Often it is safer and easier to pay by credit card rather than carry cash. If you have a good credit rating you can get lower interest rates and even a card that pays you in airline miles or cash back. Compare Credit Cards here.

About the Author:

Guest author Tim Flores is a freelance blogger and is writing on behalf of parrotloans.co.uk.

Affordable Retirement Living

Have you thought about retirement? If not, why not?

Perhaps you’ve already retired or are approaching/planning retirement? Either the way, everybody thinks about it sooner or later.  There is no such thing as ‘too soon’ when it comes to funding retirement and saving money. The key is to know how much you have to spend and find a location that’s affordable within your budget.

Seeing the World on a Budget

One goal many retirees entertain is to see the world after they retire. But often they don’t consider how affordable it really is to move/retire abroad and truly experience life as a resident rather than a tourist. The aim is to have all your debts and/or mortgages cleared and enough money to move to the place of their choice where they find comfort and relaxation. This kind of decision is not an easy one and entails many problems/obstacles. But once you consider the idea you may realize that it is more do-able than you previously thought.

The Major Obstacle- Family

For example many couples the major consideration is family. Of course as a family member you want to see your newly retired parents/grandparents retire comfortably and enjoy the later stages of their lives. Yet naturally the decision to split the family up can be a big one for both parties. Moving away from your family is a sizable decision that’s dealt with in varying ways from family to family. But often it is possible to move from a higher cost country to a lower cost and drastically improve your standard of retirement. And who doesn’t want their parents to have a more comfortable retirement.

Today it is quite possible to fund a comfortable affordable retirement in many places in the world where your Pension or Social Security will easily cover your expenses, including Ecuador, Thailand, and Mexico plus many more for less than $1500/month or about what Social Security pays for one retiree. If both members of the couple are receiving Social Security they can live well indeed and even save enough to make frequent visits back to the states to visit the grandkids. (Or fund trips to visit you).

Financial Considerations of Retirement Living

However there are other factors in retiring abroad, for example initial funding- the capital/initial lump sum required, this can impact where one retires if indeed that is abroad at all. Often by selling your home, eliminating your mortgage and simplifying your life you can find it easy and affordable to relocate to a lower cost country with good infrastructure, perhaps even ocean views or mountain views that you could only dream about at home.

Another factor that becomes increasingly important as we get older is what healthcare is available to the retiree when they have moved. Will there be excellent medical care nearby or is the desired location a million miles from anywhere?  These days good healthcare is available throughout the world if you can afford it.  Even though healthcare may be expensive for locals… compared to costs in the U.S. it may be rediculously cheap. Increasingly Medical Tourism (where people travel to a distant location for cheaper healthcare) is beoming fashionable.

Affordable Retirement Living- Medical Tourism

When considering healthcare, you need to consider what healthcare you already have access to and is it going to suit you as you advance in age? You may wish then to travel for treatment. This, like retirement, comes with a whole set of things you need to consider; obstacles, costs, quality and location are but a few.  There are a few top places in the world that regularly stand out when considering medical tourism. These places include Beverly Hills- CA, Harley Street- London (UK), Mexico, Poland and India. The latter ones tend to receive clients looking for affordable healthcare in retirement, where as the two former tend to be visited for quality and care reasons. One thing to consider are the Laws for whatever treatment you intend to receive. For example, in the dentistry industry-  Across Europe the Association for Dental Education Europe (ADEE) is trying to standardise practises so that the client receives nothing but quality care.

It is not uncommon for people to want to undergo dental treatments after retirement that aren’t directly linked to health issues, these treatments range from everything including cosmetic dentistry (dermal fillers, teeth whitening etc) to root-canals, bridges, and crowns. Other medical treatments might range from facelifts to weight management  proceedures.

Finding the correct health care and health insurance is vital,  so you need to consider your health as the number one priority because no matter where you are in the world your health is key to living a happy second life.

For more information see: Investing for Retirement

About the Author:

Jem Mosley a freelance writer who specialises in health and financial aspects of life. Writing from a website for Harley street clinics he has tried to write about both these topics in order to aid the reader when considering retirement and family funds. You can learn more by following him on Twitter at @writerJem.

Save Energy when doing Laundry

Whether you’re planning to buy new laundry appliances or already have them, it is very important for you to know how to save energy while doing your laundry. Doing the laundry is one of the most energy intensive tasks in your home. It is right behind heating and air-conditioning and heating water (which is actually part of doing laundry). Saving energy while doing laundry will help drastically reduce large utility bills to a more manageable size.
Here are 9 Tips on how you can conserve resources and keep laundry energy usage at a minimum:

1. Adjust Water Heater for Maximum Efficiency- Make sure the thermostat on the water heater is turned down. A temperature of 120°F is usually adequate for most homes. This will not only save energy while doing laundry it will also reduce heat loss from your water heater when it is just sitting there and no one is even using it.
2. Watch Capacity- Load your washing machine according to its allowable load capacity. People usually tend to under-load or overload their machines. Washing a large load in one go will help you save up the energy you will use on two separate washes. But too large a load might result in the clothes not getting clean and having to wash them again.
3. Uniform Fabrics Saves Energy- When drying your clothes, make sure that you dry similar textured clothes together, so that they dry simultaneously. For example, group all the synthetic clothes and dry them at once. This will help save energy since you will be able to dry the clothes in one go. Having a variety of different materials will force you to run the dryer over and over again or half the clothes may be dry while only a few items are causing the dryer to continue to run. Thus, making you waste energy.
4. Low Temperature = Energy Savings.  Keep the temperature settings at the lowest point possible. Try to use cold or slightly warm water for regular laundry. Use hot water only for clothes with heavy and greasy stains and make sure you keep the rinse cycle set to cold water. The higher the temperature is set, the more the energy your washing machine will use. * Use the suds-saving mark (if your machine has it) if you are washing clothes that are lightly soiled. This helps save the water and energy that will be used again in the next round. This will especially be helpful if the next round is to be washed immediately.
5. Save Energy- don’t over-dry your clothes. Take your clothes out when they are slightly damp. Hanging slightly damp shirts on (non-metalic) hangers for instance, will help them dry wrinkle free, eliminating the need to iron them (which will mean another large energy savings). If your dryer has the auto-dry option, make sure you use it instead of the heat regulating timer. This will allow you to avoid wasting energy drying clothes that are already dry.
6. Save Energy- Conserve Heat. When you have heated a load of clothes in one round, take advantage of the heat that is still retained in the machine to dry lighter materials.
7. Don’t Re-Dry Clothes. Make sure you don’t add a wet pile of clothes to partially dried ones, as this will only force you to waste energy running the dryer again.
8. Use Free Energy- Whenever the weather is good, consider drying your clothes outside in the traditional way by using free natural solar and wind energy. This will not only help you save energy and money but it will give your clothes a clean fresh smell.

Allan enjoys blogging about sustainability and energy saving strategies. Over the last 3 years, Allan has reviewed a large range of appliances online and published a large amount of articles on the topic.

In Debt?

With the recent economy in the condition that it is, loans and debts are multiplying by the day. These days people will get into debt to buy almost anything. Buying a car or a home? You can get a loan. People even get loans for appliances, furniture and big screen TV’s. People think, these loans replace having ready-cash. But more often than not these loans turn into long -term debts and then you are at the mercy of the lenders.

If you think that you can take out a loan and then not pay it back, think again. In this age of information and technology, you have to work very hard to keep your name and credit rating in top form. Here are a few consequences of a defaulted loan.

1) Debt Can Cause a Bad Credit Score

All your outstanding loans and debts go into your credit report and bring down your credit score. This will be detrimental to your future financial health and your ability to get any further loans when you really need them.  Without a good credit rating, you won’t be able to get a credit card. And these days not having a credit card is very inconvenient.

 2) Defaulted Debt Results in Wage Garnishment

Worse than a bad credit rating, if you have an unpaid loan then the lending institution can garnish up to 15% of your monthly wage to pay the debt. You have no say in this the money is taken off the top of your paycheck before you see it and because this is an extra hassle for your employer they don’t appreciate it. And it brands you as irresponsible, and a poor money manager thus making you look bad to your employer.

3) Debt Results in Unnecessary Harassment

Once you default on a loan, they are transferred by the lenders to the collection agencies. Collection agencies only get paid if they are able to collect on the loan, so they are experts in collecting. They do not leave any stone unturned. They will do everything legally in their power to convince you to pay. This includes sending continuous reminders, contacting your friends and even relatives, publishing your name in the defaulters’ list among many others. It is true that the Fair Debt Collection Practices Act (FDCPA) has improved the situation, but there is still a lot collection agencies can do.

4) Defaulting on Your Debt Can Result in You Paying Extra Money

Employing a collection agency costs the lenders money. So, they make you pay for it. As a result, the outstanding loan increases due to penalties and fees and you end up paying more money than if you had paid the loan on time.

Even though the situation looks very bleak, you do have some options.

Loan Deferment

If you are unable to pay a loan back, but not officially in default yet, then you can apply for a deferment. This will allow you some time before you have to start making the payments again. This is especially true for student loans under certain circumstances like loss of a job or illness. But, until your application is accepted and you have been granted a deferment, you have to continue making the regular payments.

Debt Consolidation

If you have more than one loan to pay and you are finding it hard to pay all your debts, then you can talk to the lenders or another lender about a debt consolidation loan. This will allow you to pay only one payment each month. This will not reduce the total amount you owe but will allow you to spread out the payments over a longer term with lower monthly payments. In the long run you will pay more interest but it may allow you to keep your head above water in the mean time.

Filling Bankruptcy

This is the last resort. Filling for bankruptcy will damage your credit record for the next 7 years, effectively preventing you from borrowing, and possibly hurting your chances for getting a job, so you should go for it only if there is no other way out.

For More Information See:

Making Smart Decisions When You Need Extra Money

Shopping Tips: More for Your Money

About the Author:

The author Robert Cyne has written several blogs and articles on various topics such as student loans, auto loans, etc.

Need Extra Money?

When you’re facing financial troubles, there are basically two solutions open to you.

1) You can find a way to reduce expenses

or

2) You can find a way to make more money.

There are plenty of tips for lowering costs every month, but bringing in extra money can be a little harder.

Here are the best places to get some extra cash, as well as a few ideas that aren’t nearly as attractive.

Credit Card Cash Advance – Bad Idea

Not only will you pay higher interest rates, but the increased payment next month will leave you in more of a bind. Getting a cash advance isn’t bringing extra income to the house; it’s only increasing the amount of your debt and putting you further behind.

Retirement Funds – Bad Idea

You are stealing from your future when you take money out of your retirement accounts. Not only are you going to regret it later, but you’ll also regret it when tax time rolls around. The government will take a hefty ten percent penalty, and you’ll be wondering why you didn’t look for another solution.

Selling Family Heirlooms and Valuables – Bad Idea

If it’s something you don’t like anyway, then it can be a viable option. However, the fact is that that $50 dollars you might get for your grandmother’s antique brooch that you love and cherish will soon be gone, and the regret could linger forever.

Payday Loans – Bad Idea or Good Idea?

Whether the payday loan is smart or not depends on the alternative you are facing. If you are a hundred dollars short on the rent, then the $30 or $40 dollars you might be charged for a payday loan is a lot cheaper than an eviction. Write down the fees you are facing if you don’t get an infusion of cash, and then you can decide whether this is a good idea or not. You should also have a plan for how the payday loan will be paid off when the time comes.

Selling Stuff you Don’t Use, Love or Want – Good Idea

Extra money, Garage Sale Princess—BarGal (Flickr.com)

While selling cherished heirlooms isn’t wise, selling the other stuff lying around your house is incredibly smart. Furniture you don’t use sells fast on Craigslist, as well as tools and other cool stuff. If you have a ton of books and media to part with, consider setting up an eBay store and moving it out that way. You can also have a garage sale if you have a lot of nickel and dime items that you just want out of the house.

Freelance Work – Good Idea

Do you have a skill that could be put to good use? You don’t have to be a whiz at engineering to do freelance work. You can take any skill and put it to work writing blog postings about your passion. If you take incredible pictures, then your second calling might be waiting as a wedding photographer. Think about what you love to do, and then see if there’s a way you can market it.

Second Job – Good Idea

You may not like the idea of working another job, but it can help you get ahead financially. Paint houses on the weekends, offer services for yard work or just get an evening job at your favorite store. The extra income will be welcome, and you will finally start getting ahead financially.

There are many ways to change your financial position. The key to finding the right one is to consider the long-term. Don’t sell something that you will regret for the rest of your life, but do consider taking a part-time job so you can have money to get out of debt. Taking the time to consider the long-term impact of your decisions will help you find the right course.

About the Author:

Donald Kyte is a personal finances guru and freelance blogger writing for www.paydayloan.org.uk.

Shopping Tips

With economies in the gutter around the world, many people are re-evaluating their daily spending habits. Even if you do not want to become an extreme coupon enthusiast, there are ways you could  come home from the store with a bit more cash in your pockets. Food and grocery bills are one of the places where people often end up spending more than they have to.

Many people simply consider food a necessity and put very little effort into budgeting or planning for spending at the grocery store. You must eat, you know what you like, you know what’s “gourmet” and what is not, so why budget? However, the grocery aisles are one of the best places to cut your overall spending, and once you start saving money on food, you will never want to go back to your former shopping habits.

Cutting costs while grocery shopping doesn’t need to be a headache. Instead, use these 7 simple and effective tips for spending less money at the store.

7 Big Grocery Shopping Tips

1. Eat before shopping. Many people spend way more money than they had planned on during trips to the grocery store. If you are hungry during your trip to the store, it is likely that everything will look delicious to you. If everything looks tasty, you will probably buy much more than you will actually use. For example, extraneous food items like potato chips and tubs of ice cream are not just unhealthy, but you are likely to crave them when you are ravenous. Stores make sure to line up all of these foods along the side aisles to catch the hungry shopper’s attention. If you are full already, you will be able to resist these money-sucking temptations.
2. Pre-plan your meals. By planning your weekly menu in advance, you can cut unnecessary expenses and know exactly what you want and need for the grocery trip. Once you know what you will be cooking and eating for the week, you can make a list. Taking the list with you and sticking with it will not only save you money on unnecessary items, but will also save you time and gas as you are less likely to  need extra trips to the grocery store because you forgot any items.
3. Buy groceries only. It may sound like odd advice, but many people end up buying extras at the grocery store. Stores sell more than just food. They also stock greeting cards, makeup, toiletries, shampoo, medicines, games, and other non-food extras. It is often much cheaper to buy your extras at other places, like drugstores, where they are usually less expensive than at grocery stores. If you need something in an emergency, it is convenient to get it in the same trip as you buy your groceries, but if you don’t need to buy it “right this second,” you should plan a trip to a store that specializes more in that extra item and sells it for less money.
4. Look for deals. Often Sale papers will advertise the specials of the week at the various grocery stores. These days you can even find the sales on the internet and get your coupons pre-loaded onto your shoppers advantage card. You can compare costs before even going to the store, and avoid buying overpriced and out of season fruits and vegetables.
5. Ask the produce or meat manager if they are having any up and coming specials on your favorite produce or meat. If grapes will be 5 dollars for the next 3 weeks, you may want to wait for the sale. On the other hand, if you see your favorite steak for a good price, buy extra when it is cheap, and store the extra meat in your freezer.
6. Compare food prices by the ounce. It is often difficult to know which item is cheaper if the containers are different sizes unless you calculate the cost per ounce. Years ago, the larger containers were almost always cheaper per ounce. These days that isn’t always true. Sometimes the middle size container is cheaper per ounce. Check to be sure.
7. It helps to know what’s in season or not at the time you are going to the store avoid out of season fruits and vegetables as much as possible because they will cost two or three times as much.

Saving money at the grocery store can be easy once you get in the swing of things. If you start saving money on your groceries, you will have way more extra cash flow that you can spend on other, more exciting things.

About the Author:

Tyler Cook writes for secureinsurancequotes.com, whose insurance quote tools can help you save on insurance by shopping online for the most affordable insurance possible.

Cutting College Costs

The Big Day has arrived. Your bouncing bundle of joy has finally taken his first peek at the world. With the anxiety of pregnancy and labor over, you may be tempted to take a big sigh of relief. However, even after the cost of Lamaze classes, remodeling the man-cave into a nursery and outfitting the car with all the latest safety features, you may be surprised to find that your financial concerns just shot past the man in the moon.

While recent estimates published by the Department of Agriculture show that the cost of raising a child born in 2010 can range from $200,000 to more than half a million dollars over the next 17 years, you do have some control. A number of popular finance sites can help you minimize the overall cost of raising children, but it’s the four years after their 18th birthday that may be as high as Jack’s beanstalk. See: Inflation Adjusted Education Costs

In 2011, the cost of attending an in-state college ran between about $18,000 and $24,000 per year, with half of that going to tuition and fees and the other half going to room and board. Double that number if your child is talented enough to get into a private college. Over four years, your precious little Einstein can cost you between $75,000 and $200,000, almost as much as the previous two decades.

Don’t panic; The earlier you start the more you can bring those costs down. In fact, do it right and you might not have to pay a red cent for your son or daughter’s Ph.D.

Scholarships and fellowships often pay for a student’s tuition and, in some cases, may cover the entire cost of the student’s education. Search sites like Fastweb.com and FinAid to help uncover the abundance of resources that are available.

Concrete ways to Cut College Costs

On the financial end of things many states offer prepaid educational funds. These are sometimes referred to as 529 plans  after section 529 of the Internal Revenue Code 26 U.S.C. § 529. These state managed investments help eliminate some of the guesswork in saving for college. They also provide tax deductions while encouraging you to save for college.

Saving on College Costs with VPEP

In Virginia for instance it is called Virginia Prepaid Education Program (VPEP). These are great savings programs that guarantee to cover “tuition and mandatory fees” (but not room and board) for all public colleges and universities in the state of Virginia. If your child chooses to go to a Private College in Virginia or attend a college out of state the funds can still be used but they are not guaranteed to cover the entire tuition and fees. A formula is used to calculate how much you get towards those colleges. The calculations are skewed a bit in favor of Virginia Public Colleges because it is run by the State but you can consider it like insurance, at the  very least your child will be able to attend a Public University.

Using this program you can basically buy college in advance either through a “Lump-Sum” payment or through monthly payments. You have a variety of options, you can buy 1 or 2 years of  Community College or 1 through 4 years of University or you can buy seperate contracts for say 2 years of community college and 2 years of University.

Starting early you can make monthly payments for either a five year period or even longer. As of the 2011-2012 enrollment year, you can lock in 1 year of University for your Kindergardener for 145 payments of only $290 each.  (Incidentially often Grand-parents consideer this a good way to help out and get a tax deduction at the same time).

Cut College Costs with Community College

Whether you buy prepaid college or not using the 2 years of Community College and 2 Years of University is another great way to cut costs. Not only do you save on room and board but you also pay significantly less for each credit hour. This can easily save you $20 to $30,000. and at the end of the 4 years your student will still receive the same diploma as someone who attended University for all four years. Just be sure that the courses your student takes in Community College will transfer in and apply for the major your child is seeking. But often there are quite a few basic courses that almost everyone must take, such as Math 101, English 101, Psychology 101, etc.

Another alternative for cutting costs is Online courses. A great many accredited colleges and universities are expanding their student body without the cost of building additional buildings by offering on-line classes. Often these credit hours cost significantly less than the same courses offered to their on-campus students. The key here is to be sure the on-line college is accredited and that the courses will transfer in to an accredited university. Some teachers have found to their dismay that the on-line courses that they were taking to keep their certifications up to date were not accredited and therefore they had not only wasted their money but their time as well.

Cut College Costs by Working

One advantage of  attending community college or doing classes online is that they can work at the same time thus contributing to their own college costs. In addition to the monetary advantages work gives them good experience and teaches self-reliance, self-confidence, and valuable skills.

See Also:

The US’s Education Bubble

8 Steps to Cut Education Costs

Education Inflation Way Above Consumer Price Index

Internships Can Help

The Difference a Degree Makes in Unemployment Levels

This is a guest post by Chris Keenan, a blogger for a divorce attorney in nj, who writes on a variety of family and finance topics.

Buy In Bulk

If you’re a frugal living enthusiast, you probably know how much you can save when you buy in bulk. No! I’m not talking about the occasional mega-pack of paper towels that you buy at the drugstore.

The focus here is on the warehouse club stores that cost you a small annual membership fee (around $50 per year) and provide you with an array of things to buy at bulk rates, throughout the year.   If you are a wise shopper you can easily save much more than the membership fee over a year’s time.

Being a smart shopper and a frugal living fan, if you don’t have a membership of one of these stores, you really are missing something big! Assuming that many of you are a member with these club stores, here are a few top things that you must buy in bulk:

1. Toilet paper – It doesn’t go bad on storage. Everyone in the house uses it, all the time. And you’re going to use it, always. What better reasons do you need to buy it in bulk? Using a coupon and buying twin Scott 12-packs of 1,000-roll toilet paper can bring down the cost of per roll to 70-80 cents from $1. You only need to make sure that you have enough space in your home to store it and that you buy a brand that is loved by everyone in your house.
2. Bottled Beverages – Okay, bottled water is not the greenest choice many times, still it is a viable option if you expect to have a huge group over. Buying bottles individually can cost you as much as $1.50 each; while buying in bulk you can get a 24-pack for about the cost of 4 individual bottles. Buy 4 get 20 free. Now that’s a deal!
3. Diapers – Buy 100 packs of 72- or 96- diapers from  BJ’s, Costco or Sam’s, to get the best deals. You’ll need to change them 100s of times in the coming few months, and saving money on them makes perfect sense, until your child is potty-trained. Sure, it may seem like a daunting task to fit them in your car and later find space to hoard them in your home. But you’ll soon see how rewarding it turns out to be! And you won’t have to make an emergency run in the middle of the night because you run out.
4. Laundry Detergent – Ever tried buying two huge containers of powdered or liquid soap sold in a pack? How about a 5 gallon bucket?  If not, you must give it a try! You’ll be surprised to know that buying brand name laundry powder in bulk can save you 40-50%, and it can last for a really long time. Also, be sure to follow the instructions on the package to understand the proper amount of detergent to be used based on the size load you are washing. With the ever more concentrated detergents, people often end up using more detergent than necessary, wasting money and clogging their machines.
5. Meat – Although perishable stuff is better avoided at a bulk store, meat is a good exception to this rule, if you have freezer space availalbe. If eating meat regularly fits the meal plan of your family, you can buy meat in bulk and easily freeze it for months to come.

About the Author:

Brenda Lyttle believes in finding ways to enjoy frugal living and recommends that you stay within your means and keep a check on your free credit reports online.