5 gift ideas for your kids

CNNMoney had some great gift ideas to help you teach your kids about money this holiday season. Here they are, in short:

1. Roth IRA
2. Alexander, Who Used to Be Rich Last Sunday by Judith Viorst
3. Payday, game
4. The Sims 2: Open for Business
5. 529 Plan Contribution

I think it’s important that you teach your kids how to handle money as early as possible. Our 3-year old already undersands that she gets money or commission when she does certain chores around the house (there is no such thing as an allowance). She has a clear jar to put her money into, until she wants to buy something. It’s great. She takes her money out, we go to the store and help her figure out what she can afford, and she pays.

I think Dave Ramsey’s quote fits well: “Our parents never talked about sex and money. We assumed they didn’t have any, turns out they had both.” If you don’t teach your kids, no one else will.

When should you buy life insurance for your child?

Never.

Life insurance is not for children. The purpose of life insurance, of all types of insurance, is to transfer risk from us to the insurance company. Life insurance serves one purpose, to replace income if it is essential to daily living. Don’t get sucked into buying life insurance for kids.

To be or not to be?

J.D.’s post today at Get Rich Slowly highlighted a conversation he had with a friend about their jobs and how much they hate them. Much of the conversation dealt with his friend Wayne’s outlook on his job, how he felt limited to work that made other people happy or not upset.

Saving with purpose and not just for saving’s sake

I was looking through my copy of The Total Money Makeover on our way back home from my mother-in-law’s yesterday (she asked if she could borrow it to see if she could glean some tidbits on money management) and a quote on page 8 stood out to me. It stated, “Savings without a mission is garbage. Your money needs to work for you, not lie around.”

Drive free, retire rich

If you are a normal American, you probably feel that you will always have a car payment. But hey, normal Americans are broke. What if you tried something different? What if you didn’t have a car payment?

Special one time tax credit on your 2006 tax return

When it comes time to prepare and file your 2006 tax return, make sure you don’t overlook the “federal excise tax refund credit.” You claim the credit on line 71 of your form 1040. A similar line will be available if you file the short form 1040A. If you have family or friends who no longer file a tax return AND they have their own land phone in their home and have been paying a phone bill for years, make sure they know about this form 1040EZ-T.

We are officially owners of a brand spanking new Wii!

In early November I posted about my intentions to buy a Wii for my husband. On Nov. 19th, they were out of them pretty early so I wasn’t able to get one. I had to go home with a $400 wad only to try again some time.

A tale of a frugal Christmas

Like many Americans, we are still trying to get out of debt. And, Christmas can be a difficult time for you and your money. But we decided a long time ago that we were done with borrowing money. One of the crucial aspects in helping us reach this goal, is planning.

Tips and links for dealing with the holiday budget and stress

We have compiled a few links and tips to help reduce some of the stress attributed to the holidays.

For you hardcore Black Friday shoppers, here are some links to help you develop your plan of attack:
Black Friday
Black Friday Ads
Black Friday Ads
Black Friday @ GottaDeal.com
Black Friday FAQ at BargainShare

10 Tips To Help You Reduce the Stress of the Holidays
1. Create realistic expectations–don’t try to make this the perfect holiday.
2. Relax and enjoy yourself with family and friends.
3. Set some time aside for stress-reducing activity like reading, listening to music, exercise, or hobby.
4. Avoid overeating and drinking too much.
5. If you are traveling, leave early and don’t rush.
6. Make a plan for work and play.
7. Don’t accept every invitation that comes your way.
8. Don’t get swept up in last-minute gift buying. Plan ahead.
9. Mail or ship the gifts you have already purchased to avoid waiting in long lines.
10. Don’t be afraid to create a hand-made gift.

The underlying key to all of this is to understand and remind yourself what the holidays mean to you, your family and friends, and celebrate it.

Do you have a leak in your budget?

Nancy Twigg wrote an article that is featured on DebtSmart.com with some tips on controlling leaks in your budget. A few cents and dollars might not seem like much at the time, but they sure do add up.