Monthly Archives: January 2015

Raising a Cost-Conscious Kid in a “Gimme” World

If you teach your kids about financial wisdom, they will practice that wisdom when they are consumers someday.

If you teach your kids about financial wisdom, they will practice that wisdom when they are consumers someday.

“The apple doesn’t fall far from the tree.”

“He is just a chip off the old block.”

Phrases like this suggest it is not news that children start acting like their parents already from a young age. This continues into adulthood as well (yes, we all will turn into our mothers!) If your children see you spending as if money grows on trees, they will spend the same. If you treat money as the root of all evil, your kids will be turned off to money at all. But if you live a life of frugal spending, they will observe that and imitate it. Try some of these tips to help both you and your children escape from our consumer society.

Make it fun: No kid will want to spend wisely if they feel deprived of everything they want. Rather than focusing on all the things they can’t have, show them ways they can have fun without spending. Get books and movies from the library, explore nature, and encourage them to use their imagination. Remind your kids that having lots of stuff does not necessarily make for a happy life.

Limit advertising: While it is impossible to hide all advertising from your kids, limiting the amount of time they spend in front of a screen can help them avoid junk food and toy commercials. For older kids, try to help them understand that the purpose of an advertisement is to trick you into thinking that a certain product will make you happy. Talk about why this is misleading and often a clever marketing trick.

Teach DIY: Being frugal also means breaking away from the “buy, buy, buy” mentality we live with. Show your children how to make things rather than buying them. Let them help you fix things around the house, make holiday gifts, and use leftovers.

Living a lifestyle of saving will illustrate for your kids what it means to be a cost-conscious consumer. Raccoon Valley Bank cares about your family and we want to help you teach them about financial wisdom. For more information or answers to your questions, contact us today!

Oops! Four Things You Left Out Of Your Budget

 

To maintain an accurate budget, it is important to include every and every expense, no matter how small.

To maintain an accurate budget, it is important to include every and every expense, no matter how small.

A budget is an important tool to keep your finances on track. While many people develop a budget, they often forget certain expenses. A new year is a good time to take a look at your budget to make sure it accurately reflects your spending. Make sure you are including the following often-overlooked areas:

1. Subscriptions/memberships

Costs like rent and utilities are easy to remember, but other monthly costs are often forgotten. To budget for an annual magazine subscription or gym membership, divide the cost by 12 and set aside that amount of money each month.

2. Gifts/special occasions

Birthdays, holidays and anniversaries are always anticipated, making them easy to budget for. Add up the cost of your annual special occasions and divide by 12. Include the expense of the presents as well as the cost of any parties or travel.

3. Travel Costs

You should be budgeting for the costs of your daily commute, but it is also important to budget for annual travel. Factor in expenses like gasoline, food for the trip, overnight stays, etc.)

4. Non-monthly bills

It is easy to forget about those bills that don’t come each month. Use the same “divide by 12” method to allocate money for annual and quarterly payments.

If you find yourself going over your budget each month, make sure that you are factoring in all of your little expenses. Even if you are spending just a little bit on something, it should be included in your budget. Raccoon Valley Bank is always available to help you with your budget. If we can help you make your finances more accurate, call or stop by one of our offices!

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