Financial Tips for Single Moms

• Assess your spending habits and develop a budget

With all financial demands placed on one income, single mothers must first understand how they spend money and make sure they are taking the appropriate steps to meet immediate needs and long-term financial goals. First, review your cash flow to obtain a better sense of where money is going each month. Once you understand your spending habits, you can cut out unnecessary expenses or scale back on exorbitant spending. It's important to develop a budget and stick to it.

• Save for retirement

Even if it is difficult to make ends meet, continuing to make contributions to your retirement account is essential. The best advice for those strapped for cash: Save early and save often. Take advantage of employer contributions to your retirement plan and consider automatic investment plans outside of your retirement plan to increase retirement wealth.

• Make sure you are insured

If you are entirely dependent on one income, having disability insurance is an important part of avoiding serious financial trouble. If you are not covered in the event of an accident, you will not be able to take care of your children. Even more importantly, because you may be the only person responsible for your children's well-being, life insurance is essential to ensure that your children are cared for financially in the event of your death.

• Free yourself from credit card debt

While you may have been able to stretch your standard of living by using credit cards, stop now and pay them off. If you are financing debt on credit cards, you can't save money. And if you are not saving money, you probably do not have sufficient emergency funds to cover three to six months of household expenses — a critical safety net to have, especially if caring for children. Call your credit card companies and ask if they can offer you a better interest rate. If they can't, consider transferring your balance to an institution that can. If you need more help, try contacting a nonprofit credit counseling service. Sometimes creditors are more willing to work with a counseling service than an individual.

• Begin saving for your child's education

Helping to pay for a child's education can be particularly challenging for a single mother. If you decide that you are going to help, it's important that you begin saving as soon as possible. State-sponsored college savings plans (i.e., 529 plans), education IRAs and pre-paid tuition plans are all viable options. Also, because single-parent homes often have low household incomes, they typically qualify for higher amounts of financial aid. When you save for an education, be sure to take advantage of investment strategies that help grow your assets but do not interfere with financial aid eligibility.

• Teach your kids about money

Start teaching your child about your family's financial situation early, and encourage them to be financially responsible and independent. Working part-time and having their own savings account are great ways for children to learn about money. Involve them in family spending decisions, and make sure they understand the concept of spending limits.

Financial Planning for Single Women and Mothers

Money Tips for Grandparents

• Introduce the concept of money to your grandchildren as soon as they are able to count.
  
• Teach them the difference between needs, wants, and wishes. Teach them to respect the value of money.
  
• When giving them, consider giving money in amounts that can be put towards savings (e.g., five $1 bills, spend $3, save $2).
  
• Consider opening a savings bank account or a money market mutual fund account in both your name and your grandchild’s.
  
• Take advantage of money “teachable moments” when you spend time with your grandchild.
  
• Set an example by being thoughtful in your own saving and spending habits – you are their role models. If you are still in debt, utilize a 'Money Merge Account'. People of retirement age should have their home paid for.
  
• The Youth & Money Survey found that 72 percent of students turn to relatives besides their parents for financial information – grandparents are included in this group!

Teenagers and Money

• Encourage their interest in reading the newspaper (money/business section) or watching a program on one of the business channels.
  
• Introduce the concept of a job/working if they have time from their schooling (e.g., chores, mowing lawn for neighbors, to getting a part-time job after school).
  
• Introduce them to financial terms such as the stock market, IRAs, investing, etc.
  
• If you follow the stock market, teach them how to read a stock page. Help them follow news about companies that they like or recognize. Share with them how a business runs.
  
• Talk to them about what is entailed in paying for college.
  
• Teach them how to use a savings account; how to fill out a checkbook; how to responsibly use a credit card.
  
• Start preparing them to live on their own in college/leaving the nest (e.g., budgeting, getting a job, not going into debt, responsibly using a credit card, living with roommates, etc.).
  
• Parents can set an example by the way they handle money.
  
• For example, when kids are young, you do not have to buy them designer label outfits that are over-priced.
  
• Even if you have money at your disposable, do not send the message that the most expensive item is necessarily the best item or that it will buy them happiness. Your kids will not notice the label on the back of their shirt.
  
• Considering rewarding your children for their savings efforts by providing some kind of incentive program. You can match all or part of your kids’ savings.
  
• Talk openly about money with your children. Encourage them to ask questions.
  
• Children learn directly from watching their parents. Parents must walk-the-talk when it comes to managing their finances if they expect their kids to understand and appreciate the value of money, saving, and preparing for their financial future.
  
• Or, even consider taking a class on financial planning at your local community college or some other community venue that offers courses.
  
• Or, consider hiring a financial planner if you are in a position to do so and feel that they are in a position to really help you manage your money (do your research).

Kids & Money from 8-12yrs Old

• Kids will be more influenced by their peers at this age. They may be more aware of high-priced sneakers or jeans, and be more vocal in wanting these items.
  
• This is the perfect opportunity to help your kids write down some financial goals if they want to purchase a big-ticket item such as video equipment or designer clothes, and you can use this experience to focus on the act of saving.
  
• This may be a good time to show them the meaning of compound interest – get them excited about how fast their money can grow if they start putting some away today. Impress them either with numbers or a growth chart that visually shows them how much money they can accrue in a short time period.
  
• Have family meetings to talk about family finances (e.g., paying for the house, food, gas, vacations, etc.).
  
• Introduce lessons to make money (e.g., bake sale, lemonade sale, etc.). This may be the making of a young entrepreneur!

Kid & Money from 2-5yrs Old.

• You can start teaching kids about money as soon as they express a curiosity or interest about the topic.
  
• Even a two-year old can be taught to put coins into a piggy bank. They may not completely understand the concept of saving, but this is a good introduction to what coins look like and the idea of putting the coins into a piggy bank.
  
• Start with the basics such as money identification with preschoolers. Teach them to tell the difference between a penny, nickel, and a dime.
  
• Show them a $1 bill and start showing them how you use these dollar bills to purchase items.
  
• When a child asks for something in a store, explain that you have to pay for item – it is not free.
  
• At this age, you could even introduce the concept of “needs vs. wants.” Instilling good money values can begin very early.

Money Tips for Kids

• Very few topics affect us on a day-to-day basis like money, so there are endless opportunities to provide mini money lessons to your children throughout the day.
  
• By taking advantage of these everyday “teachable money moments”, you’re creating an ongoing dialogue with your child that will help instill important and positive financial values and attitudes.
  
• These everyday money lessons will be a foundation to ensure that they have a lifetime of good financial habits and attitudes.
  
• As soon as the opportunity arises, and you think your children can understand and express an interest, they should be taught the value of money and how to respect it.

Specific examples of common opportunities to teach children about money:

• Allowances: Sit down with your child and encourage them to identify ways for them to earn money through work (e.g., put away their toys, make their bed, etc.) – help them make a list and keep a chart of all the chores they complete (chores should be appropriate for age). The lesson is that money does not grow on trees – there is a value to money – it is earned through hard work.
  
• Shopping: Make a grocery list and get kids to cut and organize coupons with you – then go to the store, and have them match the coupons with the items on the shelves – talk to them about a “brand” item vs. generic – as a reward, give them some or all of the money saved from using coupons. Teach them about the importance of comparison shopping and waiting for items to go on sale. Teach them about the importance of wants (e.g., chocolate chips cookies and latest “fun” cereal) vs. needs (food staple products like milk, eggs, bread, etc.)
  
• Celebrate saving: Discuss with your kids an appropriate and safe place to keep their money (e.g., piggy bank, plastic container, wallet, etc.). Put a picture of the item for which they are saving on the “bank” to reinforce visually. Track the child’s progress with a colorful chart that can be posted on the refrigerator or bedroom door as a reminder of the child’s achievement. Give them recognition for their discipline when the savings goal is reached – consider matching the amount if the goal is achieved within a certain time limit.
  
• Going out to eat: Compare menu items and prices (e.g., ordering water vs. soft drink). Show them the bill at the end of the meal, talk about tips and taxes. The lesson is about double-checking to make sure you know where you money is going and that the bill is correct, and that there is no such thing as a “free meal.”
  
• Withdrawing money from the ATM: Teach them about the “invisible money” at ATMS and how it really works – it isn’t free – you had to earn it and save it (e.g., how it is connected to a bank). Take this opportunity to take a tour of a bank or credit union (include a visit to the vault and your safe deposit box if possible) – explain how a bank works.

Financial Tips for Couples

Financial Tips for Couples

Believe it or not, many couples find it very difficult to talk openly about their finances. Money problems can literally cause a lot of heartache between people, so here are some ways couples can come together to get their financial house in order:

• Get organized: Gather all important financially-related documents to a central location that is equally accessible to both partners.
  
• Track your spending and pay yourself first: Write down where you are spending your money. Re-route some of your spending to a savings account: pay yourself first for a secure financial future.
  
• Plan to save: Start a savings account to cover expenses like clothes, Christmas/holidays, and insurance. Plan for future expenses throughout the year. Complete the Ballpark E$timate retirement planning worksheet.
  
• Build an emergency fund: You never know when you will need additional cash so try to have two to three months of living expenses in a readily accessible savings account or money market account.
  
• Don’t Go Into Debt, and if you are, Get out of debt: Avoid Credit CARDS. If you must use them, control your credit card spending and try to pay off any debts you have (e.g., car, credit card, student loan, etc.). Pay more than the minimum monthly payment. Once you have paid off your debts/credit cards, take the money and put it towards savings or some other debt. If possible, the goal is to simultaneously pay off your debt while still putting some amount into savings. Remember, you are loaned money so that you will pay interest and late charges and make other people money.
• If you have a home, invest in a 'Money Merge Account', which will amplify the efforts of all previous steps and eliminate debt in record time without sacrificing your standard of living. Your mortgage and all other debts can be paid of in 1/3 the time, with a little planning and minimal discipline. The focus is on interest cancellation.
  
• Set goals: Decide what you want to do with you money. Do you want to pay off debts/student loans? Buy a house? Save for a new car or additional education? Write down your goals and your strategy for achieving these goals. Write a budget.
  
• Review your insurance coverage: Every year, review your health, life, disability, renter/homeowners, auto, and personal liability policies to make sure you are both adequately covered. To learn more about insurance go to the National Association of Insurance commissioners Insure U web page.
  
• How much should you save and/or invest? Save at least 15% of every dime you earn beginning with your first job. The older you are the higher the percentage has to go unless you think you can work forever!
• Consider canceling interest as opposed to saving/invest. Though saving at 1-2% might sound decent, canceling 6-8% interest will get you much further in a shorter period of time. Pay off bills (including your mortgage) with higher rates, and you will find a wealth of income now free for other ventures.
  

Money Tips for College Kids

...as reported by FORBES.com

#1. Use credit cards wisely because this is a chance to establish a solid credit history. Watch the interest rates. Don't be suckered by low introductory rates. Expect the interest rate, or annual percentage rate (APR), to climb above 20% in three to six months. Don't use the card for routine living expenses or a night on the town.

#2. Remember: Credit is a loan--and it doesn't come from The Bank of Dad. That means any balance on the credit card must be repaid. Get a card with a low limit. Shop around for the best deal and read the fine print before signing up. If you move, inform the bank of your new address. Guard your credit card number and close unused accounts.

#3. Shop around before opening a checking account. Smaller banks may offer a better deal. Compare fees. Ask if there's a fee for dealing with a teller, including deposits or withdrawals. Ask if there's a fee to use a debit card. Ask about ATM fees. Ask if overdraft protection is part of the student package. If not, ask about linking such coverage to a bank-issued credit card.

#4. Open a savings account. Establish a savings plan and kick in a little money each week. Stick with it. Compound interest is a wonderful thing and it's always wise to have a little extra tucked away.

#5. Use cash whenever possible because counting out the bills underscores the connection between the purchased item and money leaving your wallet. Use a debit card before a credit card for the same reason. Keep track of spending because a budget means nothing without accurate accounting.

#6. Mad money should be sane and sober. Set a limit for walking-around money and stick to it. Hitting up the ATM for another fistful of crisp twenties is easy--and guaranteed to deplete your bank account.

#7. Remember this Yankee adage: Use it up, wear it out, make do or do without. If you learn to say no to that fancy stereo, ski trip or new set of duds, you'll be ahead of the pack. Consider buying used textbooks. Shop at second-hand stores. The look isn't frumpy--it's professorial.

#8. Apply for scholarships. This requires digging and persistence. See what's available. Don't be bashful. If you have a shot, apply. If it's a long shot, how can you go wrong for the price of a stamp?

#9. Check out college work-study programs. A few jobs may be related to your studies. Otherwise, look for a job with tips such as waiting tables, parking cars or delivering pizza. If you hustle, tips will exceed the hourly wage. Summer work is a necessity for many students, but don't overlook internships--they're a good way to get a taste of what you may make a career and establish contacts in the field.

#10. Leave the car at home. The insurance, maintenance and gas will eat you alive. Most university towns are compact and everything you need will be within walking distance of campus. If some of your friends have a car, great--let them cover the expense.

#11. Avoid unnecessary expenses at all costs. Parking fines are a tax on stupidity or laziness. Read the signs and follow the rules. This goes for little things like returning library books or videos. Pay your bills on time or you'll get stuck with a late fee.

#12. Clip coupons. Many businesses give students discounts in an effort to establish a relationship that will continue when they enter the real world and start earning a paycheck. Take advantage of the perks. Be on the lookout for deals on plane tickets, pizza, books, clothes--everything. The student newspaper is a good place to start. The Internet can be a gold mine of discounts.

#13. Pack a lunch. This will save you big bucks. Don't eat regularly at fast-food restaurants because it will reduce your bank account while bloating your belly. At the supermarket, buy the house brand and increase your savings. Never shop on an empty stomach.