Teach Good Financing At An Early Age

By David Lucas

It is very important to teach your children wile they are young to be wise with their money. All of the basics we have learned when we were younger played a critical role in our lives and our education. We still use the things we learned in elementary school in our everyday lives. Why should financing be any different? If our children learn that they can purchase anything they want then that is what they will always expect. They will have a hard time knowing how to handle their money and how to use it in a smart way. To teach your children you must make sure that you are practicing your finance in a good way. What you do reflect upon them. Start off by introducing your children to money and tell them some of the things it is used for. Giving your children an allowance will give them a chance to actually handle money. They will get a feel of what it is like to receive money, use, and save. They will find out what it is like to have money and then just as easily not have it. This will give them a building block learning approach to how they want to handle and save their money. They might want a toy and they will know they need to set money aside to get it. As they get older you can teach them more about credit. If they need to borrow some money teach them that they will have to pay back. Teaching children how to use money when they are young because they will grow up knowing that positives and negatives that can come from having and using money.

http://www.thedigeratilife.com/blog/index.php/2009/01/30teach-children-about-money-lessons-kids-should-learn/

http://www.thepersonalfinacier.com/2008/07/teach-your-kids-basic-finance-and.html

Foster Homes: Will they Survive the Economy?

By Lara Turner

With the economy in the state it is in, providing foster care for children has become a lot harder to do. Families who would normally take in two to four children, on top of the two or three children they already have on their own, have to decline because of money shortages. When agencies set a child up with a family the agency gives the family a certain amount of money per month for most of the child's needs, but because of the way the market is right now agencies have had to cut costs 10%. Another issue is that foster families are being forced out of their homes that have five bedrooms into homes that only have three. These families cannot foster children even if they wanted to because they have no room. Foster agencies are worried because now more than ever children are being put into foster care because their own families cannot take care of them, but they have no where for the children to go. Some of the agencies have considered cutting down on salaries in order to try and put these children into a home. 

Even though this seems to be the trend for most agencies, one agency in Kansas, says that with government backing to help them advertise the need for foster homes, they have had more volunteers than ever before. Many of these families can afford to have an extra child or two in the home or they are "empty nesters" and want the company of children again. People from this agency have said that the families volunteering  say that it is about the experience and not about the money. They are willing to tighten up their budgets a little in order to help a child in need.

http://www.pe.com/localnews/inland/stories/PE_News_Local_S_foster12.29e159c.html

http://www.zwire.com/site/news.cfm?newsid=20257657&BRD=1160&PAG=461&dept_id=190958&rfi=6

http://www2.ljworld.com/news/2009/feb/08/more-families-mull-fostering-children/?city_local

Foster Care

Posted By Lara Turner

How Much Money Do You Need to Have a Wedding?

Posted by Yoshikuni Asaba

Wedding is one of the most important event for your life and hopefully anyone of us wants to experience more than once.
So, maybe all of us wants to experience the best moment of the time and live happy forever.
However, we all need to know how much money we need for the happy moment and save it when the time has come.

According to studies report, the average cost of wedding in the US to be about $30,000 while the median is around $15,000.
**This research include the outliner who is rich enough to throw huge party.

The Yahoo! Answers explains the following detail

Dress - $500 or less
Tuxed - $125
Food - $400 appx 200 ppl catered
Decorations - $250
Flowers - $200
Honeymoon - $1000 (not to expensive but give a little cushion)
Use a DJ instead of a band - $200 (dj)
Wedding planner if needed - $200
Chapel and Pastor - $200 (donations usually)
Hair/Makeup/Nails - $250
Gifts for your girls/guys~appx 15-25$ each

In Japan the average wedding cost is about Least $25,000 to $40,000

Average cost of the wedding is different according to which resourse you are using.

Cost of Wedding
- On average, couples that live in (Syracuse, NY)
Spend between $15,947 and $26,578 for their wedding. This does not include cost for a honeymoon or engagement ring.
*Estimate based on spending not vendor prices

US couples spend $28,732 for their wedding.
The majority of couples spend between $14,366 and $35,915 while their wedding budget is typically 50% less than the amount spent.
This does not include cost for a honeymoon or engagement ring. Understanding average wedding cost now can help you with your wedding budget later.

My Money Blog
- According to studies report, the average cost of wedding in the US to be about $30,000 while the median is around $15,000.
**This research include the outliner who is rich enough to throw huge party.

Probably between $14,000 to $36,000 will be needed for the Wedding.
Are you able to afford this?

Yahoo Answers
Money and Marriage Saving for the Future
Cost of Wedding

When to get a Pre-nuptial

Posted By: Brendan Boesch

With divorce rates as high as they are today, getting married can be a scary thing. One of the most important factors to consider when getting married is your finances. Since a divorce can be financially devastating, many couples are deciding to get prenuptial agreements. A prenuptial agreement can ensure that your assets will not end up in the hands of someone else if a divorce occurs.

There are many circumstances in which a pre-nup should be considered. If you own assets such as a home or a business, a pre-nup is a very good idea. In addition, a pre-nup may be a good idea if you expect to receive money from an inheritance, or if you have children from a previous marriage. A final factor to consider when deciding whether or not to get a pre-nup is if you a pursuing a degree in a profitable profession, or if you will be supporting your spouse?s education. Basically, if one person has much more money than the other, it would be a very wise decision to use this contract to protect their assets.

Pre-nuptial agreements can also have an expiration date, which is known as a sunset date. This is means that after a certain amount of time a pre-nup can be dissolved. Couples may decide to go this route so that they will not be bound to a pre-nup if the marriage has proven to last. Having a sunset date can make signing a pre-nup seem less painful.

Links:

http://www.legalzoom.com/legal-articles//article11120.html
http://www.askmen.com/money/how_to_150/189_how_to.html
http://www.msnbc.msn.com/id/6416908/

Prepare for the Next Member of your Family

Posted By: Sean Brown

Hang on to your hats, prospective moms and dads: The U.S. Department of Agriculture speculates that a middle-income family will spend more than $165,000 (in today's dollars) raising one child to the age of 18. That's not counting fertility treatments if needed, adoption costs, private schools, after-school lessons, or college, which can add $100,000-300,000 to the bill. In 1960, parents spent an average of only $146,000 (in today's dollars) raising a child.

Click Here to read more.

Always Have a Back Up Plan (Estate Plan)

Posted By: Sean Brown

It is a normal reaction by human’s to push things off till they absolutely have to get it done. The problem is when is the time then to plan for your own death? The truth of the matter is many American families push off planning for what happens when the lights finally go out. The main form of planning for this is Estate Planning.

Estate planning is a basic setup for what will happen just in case. It usually includes, a will, assignment of power of attorney, and a living will. Basically it includes all the things you are not going to want to have to deal with if the worst should occur.

If you fail to draw a connection yet to real life, assume you pass away and you have a family, who will get your house. The truth is, it won’t go straight to your family, if nothing is written the government will take it over. Keep the government out of your life. No matter how big or small your income is, having an estate plan is necessary so that all your belongings stay in your family and don’t end up in an auction leaving your surviving family members with nothing.

Links:

www.calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10581&id=2206

www.savewealth.com/planning/estate/

http://money.cnn.com/magazines/moneymag/money101/lesson21/

Taking About Money Before Marriage

Posted by Yoshikuni Asaba



How you deal with money can provide insights into how you deal with people

even in a marriage setting. Additionally, how money is viewed, spent and saved can impact how you function in a relationship with someone else. Before making that relationship mostly permanent, you should talk about money, and establish a solid foundation from which to discuss money in the future.

Families and Jobs

By: Asim Mohammed

During today’s tough economic challenges many workers who are being laid off are either taking new jobs with significantly less pay or staying put at a job that they don’t find amusing or staying at a job they know wont help them achieve their career goals.

There are two different stories in each situation. Many workers who are being laid off from well paying jobs, such as six figure salary jobs are now accepting any job just to get by and support their families. For example, Shaun Chedister worked for Washington Mutual making about $125,000. After being laid off last year, Shaun spent about a year looking for a job, he finally found one with Ernest and Young as a executive administrator making a mere $66,000. Chedister and his family have had to significantly re-adjust the way they live. Their lifestyle is totally different now by looking at more affordable homes and there car being repossessed because of late payments.

The other situation is only similar in that workers have their original jobs but are afraid to move on because of the sluggish economy. Many workers are staying at their jobs even if they are unhappy. About 96% of workers said they were likely to achieve their career goals at another company. Another 46% said taking a new job in the current economic environment is risky.

Many families are feeling the crunch of a slow economy, whether it’s a family needing to adjust to a different lifestyle because of pay cuts, or a family experiencing problems at home because their spouse is unhappy with their job but they are afraid to move because of the risk of not finding another job. However there is the small niche of workers who have no fear of being laid off because of the specific companies they work at. Such companies like Southwest Airlines, FEDEX, and Aflac among others do not have a formal layout policy and many of these companies haven’t had any layoffs for lengthy periods of time, even during tough economic times. As a result these workers have nothing to fear.

http://money.cnn.com/2008/12/30/news/economy/pay_cuts/index.htm?postversion=2008123114

http://money.cnn.com/2008/12/16/news/economy/job_hopping/index.htm?postversion=2008121715

http://money.cnn.com/2008/12/09/news/economy/no_layoffs/index.htm?postversion=2008121111

Invest in an IRA Young

By Craig Rozelle

Families with a high net worth should encourage their high school and college age children to invest in an Individual Retirement Account (IRA). Individuals can make a deductible IRA contribution equal to the lesser of $4,000 or earned income for the tax year. In addition to the immediate deduction, starting an IRA at a young age will increase savings at retirement age dramatically. Parents can also use part of their annual $10,000 gift exclusion to fund the $4,000 contribution for the child if their working money is needed for living or education expenses. This is attractive because it enables the high net worth parents to remove assets from their taxable estate and ensures that the child will not be able to access the funds (without penalty) until age 59 1/2. Starting an IRA at the age of 18 instead of 25 will significantly increase the individuals’ wealth by the time they turn retirement age. Assuming an 8% annual increase in value, an IRA started at age 18 with yearly additions of $2,000 will be worth over $905,000 at age 65. If the account were opened at age 25, it would be worth only $518,000. The additional $14,000 in contributions results in additional savings of nearly $400,000.

Sources:
http://www.allbusiness.com/government/421643-1.html
http://frugaldad.com/2009/01/27/roth-ira-for-teenagers/
http://www.fundadvice.com/articles/misc/young-investors-how-to-be-better-than-your-parents.html

'Found money' is frugal family's hobby

Written by: Terence Burke

Posted by: Keun H. Maeng

The Staten Island family of four is a reminder that "every penny counts" by keeping a constant eye out for other people's lost money.
Braving blustery winter winds and frigid Northeast temperatures, mom Barbara and dad Scott take their two daughters to scour a dreary Staten Island parking lot.

"It's not so much that we need the money," Barbara said, "it's to show an example to our children. The more change you see, that penny becomes 99 more, and it becomes a dollar."

"With the economy the way it is right now, it's important that they realize Dad is not this endless tap of cash," added Scott, a U.S. Army career counselor.

Click to read more

Divorce: a business deal

Written by: Keun H. Maeng

For any reasons out there, divorce is tough. People become devastated by the loss of their spouse. At this point, the last thing you want to think about is separating you and your spouse’s assets. However, even though it is cruel, the first thing that any separated couples should pay close attention to is their assets and their financial future.

Divorce is like a business deal. Because there is only one thing that matters: your property settlement. This means that there cannot be any emotions in the whole process. Putting aside all the emotions, there are some steps you should follow when splitting the financial sheets.
Here are some tips that will make the whole gruesome process more convenient. The first step is to pull your credit report. It is the fastest way to take an overview of the outstanding loan balance, mortgage and credit card debts that the couples need to divide up. You should open your individual bank accounts and close out all the joint accounts. The house that you and your spouse lived in should be sold. It is important to change the beneficiaries, if necessary. The retirement plan and your health coverage also should be modified. Lastly, dust yourself off and start living.

http://articles.moneycentral.msn.com/CollegeAndFamily/SuddenlySingle/10stepsToAMoneySmartDivorce.aspx

http://divorcesupport.about.com/od/thedivorceprocess/p/stepstodivorce.htm

http://www.enotalone.com/article/2928.html

7 Essential Money Lessons for Kids

Written by: Dayana Yochim

Posted by: Keun H. Maeng

Mounting research shows that we have nothing short of an entitlement epidemic gripping today's youth. The books Generation Me and Generation Debt (by two different authors, no less) make rather fitting bookends: narcissistic entitlement at one end, and financial ruin at the other.

As the season of giving brushes elbows with the cabal of commercialism, we're presented with -- to borrow from the classic education vernacular -- an ideal "teaching moment."
But exactly how do you persuade material boys and girls to enjoy giving as much as they love getting? Here are seven tips to help instill some big-heartedness in the little ones.

Click here to read more

Financial problems that lead to divorce

Written by: Keun H. Maeng

There is no doubt about it. No matter how much you love each other, you will eventually have unavoidable contingencies during your marriage. Studies show that money is the number one reason why couples engage in such arguments. While talking about money issues might solve the quarrelsome battle, there are something more than conversation that should be fulfilled to have harmony when it comes to marriage and money.

Merging the Finances
Couples are overwhelmed by the uncertainty on how to handle their finances. Assuming that the couples are both in a hospitable financial status, finding a way to blend finances comfortably can dramatically reduce money arguments.

Dealing with Debt
Of all the money arguments there are, debt is the most common reason why couples separate. It is highly possible that one spouse might enter the marriage with a lot more debt than the other. Even though some might disagree, once you are married, your spouse’s debt can become your problem. With this in mind, it is recommended to pay down the debts as quickly as possible.

Keeping Spending in Check
Believe it or not, studies show that men and women spend the same. Because the type of expenses differ between a man and a woman, it is very easy to scapegoat each others for the excess amount of expenditures. The solution to this is to keep a tight budget!

http://www.smartmoney.com/personal-finance/marriage-divorce/the-six-financial-mistakes-couples-make-15414/?page=2

http://money.cnn.com/2005/05/16/pf/saving/willis_tips/index.htm

http://www.getrichslowly.org/blog/2008/09/15/7-tips-for-money-and-marriage/

Helping your Parents with Retirement

By Nicholas Hall

Nothing is more important then family, and making sure that your parents are on the right page for retirement is very important to keeping you family in good shape. Some people just never really put any thought into saving for retirement when they were younger, and now your 50 year old mother might be in trouble. Children are obligated to take care of their parents as they get older in the same way that their parents took care of them as kids. So asking your parents about their retirement plan and financial situation is important.

In result of poor retirement financing the first question to ask is why. Did your parents never make enough money? Did they spend too much? Were there to many expenses throughout their lives? It is never to late to introduce your parents to a 401(k) or IRA accounts. Starting later is better then being left with nothing at all, plus you don’t want to be caught holding the ball for all their financial needs during the later years of their lives.

It is wise to exercise some sensitivity when you approach your parents about saving, but the sooner you can reach them the better. If your parents are willing to save, then starting now will give them more time to improve her retirement prospects. Remember that family is everything and making sure your parents will be living comfortably into old age is paramount to their happiness, they deserve it.

Sources:

http://money.cnn.com/2009/02/02/pf/expert/parents_retirement_help.moneymag/index.htm?postversion=2009020307

http://www.usatoday.com/money/perfi/eldercare/2007-06-28-elder-care-planning_N.htm

http://www.rediff.com/money/2007/jun/06retire.htm

Keeping wealth in the family

By Walecia Konrad
Copied and Pasted by Asim Mohammed
New York (Money) -- Lisa and Bruce Brown are fortunate enough to have plenty of assets to protect. Foremost of these is their children: The Browns are the proud parents of four-year-old Emma, and they have another baby on the way.




Click to read more.

5 Steps to Marriage and Money Bliss

Posted By Craig Rozelle

How to help your family during tough economic times

Posted By: David Lucas

I believe these tough economic times are coming because consumers have incurred far too much debt, the government has incurred far too much debt at all levels of government, and because many companies have incurred far too much debt.
There are many steps that I would encourage each and every one of you to take:
1. Make a written budget and stick to it. This budget should be a monthly budget if you are new to budgeting or an annual budget if you are an old hand at budgeting. My wife and I have had a written budget since a couple of weeks before we got married. We are currently working on next year’s budget and will have it done in the next week. Every December we prepare a budget for the next year and analyze how well we followed our budget in the current year.
2. Evaluate your job skills and improve them so that you can find a better job.

Click here to read more

Posted Feb. 8. 2009

Divorce and Your Finance - the 7 Most Costly Mistakes

Posted by Brendan Boesch

Each year there are nearly 1 million divorces in the United States, or about 50% of all marriages¹. The real tragedy, however, is the financial devastation that occurs to many individuals after their divorce.

Too often, a divorcing individual accepts an unfair settlement and finds that a few years later he or she is experiencing serious financial challenges. Was he or she intimidated or pressured to settle? Did the offer appear to be equitable? What ever the reason, this outcome can be significantly improved upon, if not altogether avoided, if you first understand the seven most costly financial mistakes commonly made in divorce settlements.

Following are brief summaries of these seven mistakes. Each of these areas can be quite complex, so we strongly recommend that you consult a professional prior to making a financial decision that may affect the rest of your life.

Click Here to Read More

Advice for Handling Financial Problems in Marriage

Posted by Nicholas Hall

Financial problems in marriage such as uncertainty and financial hardship will hurt your marriage if the two of you are not talking with one another or if either of you is hiding your head in the sand.

Don't hide your heads in the sand. Talk about your financial situation. Focus on what you can do about your financial problems and then try to do it. "23 percent of survey respondents said they won't do anything differently, even if the economy continues to weaken. Hoping for the best isn't a strategy; planning ahead is the best way to protect your family and build a strong financial future."

List your fixed expenses and your flexible expenses. Identify where you can cut back such as subscribing to fewer television stations, looking for a less expensive telephone plan, having fewer meals in restaurants, etc.

Click here to read the full article.

Investing during financial crisis

By Yoshikuni Asaba

People says that during this financial crisis, it is good time to invest. I also believe in the same way. However, it is very difficult to put money onto something else rather than daily or family needs. Even though when people consider investing, people do not know what to invest. Stocks, Bonds, Futures, Real estate or others may create value in the future. However, there are variety and enormous financial product in the market, and we are all confused what to invest money into. One of the realistic investing will be the home security for the family. Due to the unemployment rate increase at the crisis time, it is very important for family to beware of break-in to your house. After you secure your home, you need to think about your future, seeking more secure and best investment option. Whether you are thinking long-term or short-term, you still need to finance your money. If you are putting your little money into checking account into bank maybe ideal, but if the amount is large, you may want to invest in long-term or short-term investing which choice of management will be variety. One of the ideal secured investing will be the long-term bond. Those following link may help give you an idea of managing your money.

Investing in home security for family　
How to Choose the Best Investment option when saving money　　
Family Saving　　

Family Budget Planning During Financial Crisis

Posted by Yoshikuni Asaba


Family budget planning is important, and especially so during the financial crisis that is present all across the globe. Many people have never used a family budget, and with the financial crisis they are forced to start one. A budget planning template can help, because these usually offer an easy to follow layout where you can list all of your income and expenses, so that you can ensure your family budget stays on track and comes out correct. Family budget planning does not have to be complex or hard to do, but it does need to be thorough. For your family budget to be accurate, all income and expenses must be listed. The first step is to determine what the household income is, from all sources. Add together any income that comes into the household, and this is the total household income.

http://www.bionomicfuel.com/family-budget-planning-during-financial-crisis/

529 Plan It makes College Saving Easy

Posted By: Sean Brown

We all want to give to our children more than we ever received as a child. The best way to do this is to provide them with an opportunity to attend a top university. Attending a top university is no slight expenditure and requires planning. Do not stress or worry because you are not alone, and the U.S. and State governments understand this, which is why they provide a plan to help American families save for college.

The 529 Plan is an education savings plan set up by state governments to help individual families save for college. This plan can work much like a IRA plan in which it will give a tax break on the money invested into the account with very few limitations. Of course this means that this money can only be used for your child’s college education fund and if a family withdraws the money sooner they will receive a penalty.

For example New York’s 529 provides such advantages as withdraws are exempt from New York State income tax, as well as tax exemptions up to $10,000 for families who file as married jointly. Other small incentives include being able to manage your account 24hours online, as well as no minimum payment is necessary. This means you can start saving with as little as $25 dollars.

With government help like this not saving for your child’s education is border line criminal.

Links:

https://uii.nysaves.s.upromise.com/content/programfeatures.html

http://www.sec.gov/investor/pubs/intro529.htm

http://www.independent529plan.org/

Planning Your Finances for a New Addition to the Family

Posted By: Brendan Boesch

There are many preparations a family must make when planning to have a child. One of the most important considerations when bringing a baby into the world is to make sure that your personal finances are in order. It is never too early to start planning for the additional costs that having a child will bring. Such costs include the prices of furniture, baby food, formula, clothing, and toys. These costs can exceed expectations, with a bottle of formula costing up to $22 a can alone. Most items will cost more than you think they will. Having a sound financial plan will ease the stress of keeping a new baby healthy.

            Other important factors need to be considered during times like this. Parents need to have a good life insurance policy, so that their kids will be taken care of if something happens to them. Another consideration that is important is a will. Having a good life insurance plan and a will ensures that your child will always be protected. With all of these events many families forget to plan for their retirement during this time period, but this is a mistake that many cannot afford to make. In addition, it would be wise to start saving for your child’s college expenses when they are still a young age.

http://www.divinecaroline.com/article/22306/33079-getting-finances-ready-baby

http://masteryourcard.com/blog/2008/06/02/10-steps-to-take-before-having-a-baby/

http://www.ncnblog.com/2008/05/07/the-financial-realities-of-having-a-new-baby/

 

One Big Step to You and Your Spouses Future: Buying a house

By David Lucas

In your life you have lived at home with your parents, then gained some freedom to live on your own at school, then once you graduated you may settle in a nice apartment. During the first few years of your work you may start living with your significant other and hopefully you have been saving enough money to be able to purchase a home. just like everyone tells you this is going to be one (if not the) most important purchases of your life. buying a house is not going to be an overnight ordeal and should be thoroughly researched and discussed with your spouse. living together for a few months or years prior to buying a house can be very useful in that you will get a really good idea on what your spouse likes and dislikes. it is very important to know what house you and your spouse will be most comfortable living in together because you will be stuck their and that can really hurt your relationship. Getting information and help for someone close to you that has the experience in buying a home will be very use full for you. they can let you know the mistakes or the smart things they were able to do wile purchasing a home. make sure to read about your local real estate agents to find who might be best for you. look at a lot of homes but don't drive yourself crazy, work and your family can't be ignored. come to an agreement with your spouse and hopefully it will be a good decision.

http://www.money-zine.com/Category/Buying-a-Home/

http://www.themovechannel.com/guides/buying/to_buy_or_not_to_buy/with_your_partner/

http://www.essortment.com/all/spouserelocatio_rynw.htm

Managing Your Money in a Tough Economy

By Lara Turner

Managing your money is not an easy thing to do, but the internet has many suggestions on how to do it. The main points of each article is the same, but the steps on how to do it are slightly different. The main steps are to figure out where you want to be in the future and if you have a family to discuss with your husband or or wife a way that you want to manage your finances. The next step is to look at how you spend money now and to decide if thats the way you want to keep spending your money, especially if its on stuff that is not essential. If you realize that you are spending money on things that you should not be, then you have to decide on things to cut back on. If after cutting back on things you still want more things or you still want to spend your paycheck right away you have to keep in mind how much credit you can have without going over your head. The main thing that has to happen if you are going to manage your money in an efficient way you have to make a budget for yourself and decide where you want to be and what things you want to have, but at the same time look at how much your making to know if the life you want is even possible. 

http://ohioline.osu.edu/mym/

http://www.startupnation.com/steps/75/8-steps-manage-money.htm

http://www.extension.org/pages/Financial_Security:_Managing_Money_in_Tough_Times

Divorce: Money changes everything

Post by: Keun H. Maeng

Written by: Jennifer Conlin

Michael Drake, a matrimonial lawyer in London, recently had three clients, all men, come in to discuss their financial situations before getting married. Based on those conversations, two decided not to go through with their weddings.

Vanessa Lloyd Platt, a lawyer and author on divorce law, says women tell her that they feel like they are penalized for working during their marriage. Judges, she explained, will expect women who have worked to return to the work force after a divorce, even if they have children, whereas women with no former career typically will receive alimony for the rest of their lives.

Click here to read more

Family ≠ Money

By: Keun H. Maeng



Some believe money trouble is best resolved with family members. Think again. According to recent studies, intra-family loans can lead to terrible relationships, deeper financial problems and even trouble with the IRS.

Borrowing money from someone very close seems like the most convenient transaction. However, for those people who previously lent money to close family members often complain about the lack of appreciation, delayed payments and strained holiday dinners. Vice versa, the borrowers complain about the lack of trust they receive from the lenders. Just these few possible examples clearly state a point about money association with family relatives: “Don’t do it.”

Even though this advice is indeed a fact, many of us cannot ignore the obligated sympathy that family members unconsciously have. So how can family members ignore the financial struggle that they loved ones might have? Or, in another way, how can there be a friendly transaction without family feud? Luckily, there is a solution to this. CircleLending is a company that was organized to solve this problem. Located in Cambridge, Massachusetts, CircleLeding, with the whole idea of family relationship as priority, charges low interest rate to the borrower, and has a $199 one-time fee, plus $9 a month. According to Asheesh Advani, the CEO of CircleLeding, the company is, in effect, formalizing the world of “informal loans” between family members and friends.

http://articles.moneycentral.msn.com/CollegeAndFamily/RaiseKids/TheRightWayToLoanMoneyToFamilyMembers.aspx

http://moneycentral.msn.com/content/Savinganddebt/Managedebt/P75682.asp

http://www.businessweek.com/smallbiz/content/apr2006/sb20060418_001166.htm?chan=search

Recession Is Driving More Into Military

By Craig Rozelle

The bad economy is forcing some people into joining the army. Lynette Mendez a mother of two with masters in accounting has decided to sign up for the military in order to provide for her children and get some income. The military has become an employer of last resort for Mendez's family, reflecting a national trend toward higher enlistment rates in the midst of recession. The Army long has relied on costly advertising campaigns to recruit 80,000 soldiers a year. A typical year sees spending of about $200 million on ads and events like the All-American Bowl, held in San Antonio, and dangling large bonuses. However the recession has done what billions of advertising dollars could not; make people join the army. The combination of the Iraq War cooling off and high unemployment rate has led to a surge in military enlistment. The Army's Seattle recruiting battalion signed up 13 percent more soldiers in December than the previous year. Seattle recruiting battalion spokesman Steve Lawrence said a recruiting uptick was expected as the economy soured which lead to the January figures showing a 33 percent rise. The Texas Army National Guard Recruiting and Retention Battalion catalogued an identical leap for the first quarter of this fiscal year.

Sources:

http://money.cnn.com/2009/02/02/news/economy/jobless10.fortune/index.htm

http://www.mysanantonio.com/news/Recession_is_driving_more_into_military.html

http://www.armedforcescareers.com/articles/article14.html

Wealthy couples who save instead of spend

By: Asim Mohammed

Many people believe that wealthy couples spend lavishly and extravagantly on things they don’t even need. People assume that these affluent couples have nothing to worry about except to spend money and always have the finer things in life.
To the contrary, a lot of wealthy couples try and save their money instead of spending it generously. For example the Schmitt’s, sold interests in their two companies in the same week making about $10 million each. Instead of living expensive lives, the Schmitt’s drive a 2006 Honda minivan, and live in a 2000 sq. ft house. Another couple the Shifrins, an army couple who make about $133,000 each. At first they never thought about saving but since they got married they are obsessed with saving. So far they have saved $87,500 in retirement funds and invest $500 a month in mutual funds, which now total nearly $44,000. Another couple, the Wisneski’s earn $90,000 a year together. They have no debts, or loans on their heads, so one would expect them to live in an upscale area, however they live in Oneida Wis., home to the Oneida Indian Nation. They drive two cars, a 1998 Saturn and a 2005 Chrysler. They spend very little in terms of leisurely activities. They rarely travel, opting to stay home instead, and spend about $85 on entertainment, including movies, etc. So far the couple has $44,000 in retirement savings and put in $200 a month in their Roth IRA accounts.
I always thought couples or families who were financially sound would live comfortably than most people. I never thought couples, as the ones mentioned above, would ever worry about saving their money for the future.

http://millionaires.blogs.cnnmoney.cnn.com/2008/05/15/millionaires-in-the-making-the-wisneskis/

http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/secret-millionaires-addicted-to-saving.aspx#pageTopAchor

http://millionaires.blogs.cnnmoney.cnn.com/2008/05/22/millionaires-in-the-making-the-shifrins/

Does Money Really Ruin Marriages?

By Lara Turner

I have read many articles where certain people think that money is the number one cause of divorce and others where money issues don't lead to divorce. One article I read talk about a couple, Sam and Kate, who have very different philosophies on how to manage money. Sam likes to make money and then spend it right away and Kate likes to save her money for something special. Money almost split them up when they called off their engagement, for a brief amount of time, but then they worked things out. Now when they fight about money they think its a good thing because by the end they come up with a solution that is a combination of what both of them originally wanted. Another article says that research shows that money is the number one reason for divorce. It even goes as far as to talk about a couple where the wife doesn't want to get married because she is worried that her husbands credit is going to carry over and ruin her credit. Im sure that some people get divorced because of money, but I think it depends completely on the couple and how hard they want to work at their marriage.

http://www.bostonglobe/magazine/articles/2009/01/18/does_money_really_wreck_a_marriage/

http://www.limelife.com/blog-entry/Marriage-and-Money--Couples-Are-Screwed/2012.html

http://www.columbiatribune.com/2009/Jan/20090126Busi009.asp

Managing Your Money

By Lara Turner

Money and Divorce

By Dan Kadlec 

Lara Turner

(Money Magazine) -- When we married 22 years ago, my wife and I started with two old cars and not much more. I had spent my last dime on our honeymoon; she was just finishing school. At the time it seemed as if years would pass before we'd have the income to travel again. So without telling her, I began to sock away $20 a week. It was my secret vacation fund - and, it turns outs, my first act of financial infidelity. 

Nearly every spouse occasionally fudges numbers. My wife once brought home a fancy flat-faced kitten that cost way more than she admitted at the time. We ended up chuckling about it - and my vacation fund too, after we raided it to make ends meet one month long ago. 

Click here to read more.

Family Planning "It's Crucial"

Posted By: Sean Brown

NEW YORK - After ten or 12 years, your marriage is as comfortable as Saturday's flannel shirt. Now the real work begins. Developing a sound plan to secure the financial future of your marriage has probably been lost in the crush of kids and career.

"Responsibility increases with children," says M. Sophie Beckmann, a certified public accountant and certified financial planner at A.G. Edwards in St. Louis. "You're now responsible for your spouse and the children. That means planning."

Click Here to Read More

Budgeting for a Baby

By Nicholas Hall

Planning for a baby is a very arduous and expansive task; and while there are many issues to touch on, financial planning is probably the most important.  It is vital to make sure you have the funds necessary to support your child before going about having one.  However in most cases, if you waited to have a baby until you could afford it, you'd never have children at all.  So here are a few things to consider when thinking about financing a baby.

The U.S. Department of Agriculture estimates it costs the average middle class family $184,000 to raise a baby from birth to age 17.  Firstly, during pregnancy you will want some extra money for a variety of needs.  There are classes, books, medical expenses, and clothes that are all going to break your wallet before the baby is even born.  The child birthing process is a large expense as well.  Then there will be all the expenses regarding actually raising the child until he/she is independent.  Don’t forget that women will also have to take leave from work during a portion of this time as well, so planning ahead and saving properly is tremendously important.

The first thing you need to do is to make a minimum budget; this is just to get an idea for all the expenses you will certainly incur (note that this will be much less than all the expenses you will eventually incur come the end of the cycle).  Talk to friends who are parents to get a better idea about all the expenses of having kids (diapers, formula. Etc).  It is a good idea to add at least 10% to your budgeted number for emergences as well.  Lastly, you always want to be thinking ahead toward college for your kids, so it is probably a good idea to start putting some money aside to earn interest while your children grow.

Sources:

http://life.familyeducation.com/budget/baby/57092.html

http://www.practicalmoneyskills.com/english/at_home/life_events/baby/budgeting.php

http://www.msnbc.msn.com/id/8474873/

102 Personal Finance Tips Your Professor Never Taught You

Posted By: Brendan Boesch

If you're anything like me, you graduated from college and perhaps even took a finance class or accounting class here or there, but you didn't learn anything about managing your personal finances. In fact, there probably wasn't even an opportunity to take any such class in either high school or college. But if college is partly about training us for a job, shouldn't we learn what to do with the money we earn from a job? Especially in a country where 45% of college students are in credit card debt and 40% of all Americans say they live beyond their means, I think it's time to wise up to some of the challenges of money management. A few (say, 102) simple financial tips can help get your money life (back) on the right track.

Click here to Read More

Getting Your Kids Off To A Good Financial Start

Posted by Craig Rozelle

Getting Your Kids Off To A Good Financial Start
Think about it. Since the time your kids could reach up to the bathroom sink you've been teaching them to brush their teeth everyday, right? Every morning before they go to school and at night before they go to bed. You've also tried to get them to clean up and put away their toys before they go to sleep, instilling a good daily habit of orderliness and organization.

As they grow up and become young people, you try to keep up with their homework, their friends, what television shows they are watching. Why do Moms and Dads do it? It's simple. You're trying to instill good habits in your children, no matter what their age--not only cleanliness and mental hygiene but self-worth and ultimately self-confidence, all principles which hopefully they will take with them safely through their life, into their own independence.

Click here to read more

Message from Professor Watkins

Greetings students.  Here is your recommended reading for this week in Finance 378.  In addition to reading chapter 5, this should all be read by Monday, February 8, 2009:

 

Changing Your Credit Score - a video on the DrBoycePersonalFinance Blog.

Investing vs. Paying Credit Card Debt - also a video on the DrBoycePersonalFinance blog

"Renting vs. Buying: Which one is for you?" - DrBoyceRealEstate blog