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It’s never too soon to start teaching your children about money. While you probably can’t explain a bank loan or a home mortgage to a six-year-old, you can get them into the habit of saving money by helping them to create a saving habit.

Much more important than the amount of money here is that your child grows up understanding the discipline of saving money regularly. Start by opening a bank account for your young child and let them see the balance - you might want to start their saving off on the right foot with $20 or $50.

Once the bank account is in place, give your child a small amount of pocket money that must be saved in the bank. Even if this is only a dollar or two per week, it is important that your child can see the effects of regularly saving money. Take them to the bank once a month or so to deposit the money - most banks have special children’s accounts where this can be done, even with small amounts, without incurring transaction fees. After all, the bank wants to get your child’s business so that they grow up with that bank’s name as the one they’re most likely to use. As the balance grows, encourage your child to be excited by the result, and they might just develop a savings habit that will benefit them throughout their lives.

credit: Neil CareyIt’s becoming increasingly common to spend one semester of your degree abroad, both to enjoy a different cultural experience and it because it looks good on your resume. But with the costs of college education always increasing, you could even consider completing your entire degree abroad.

Education systems around the world are all markedly different, but it is definitely possible to get a quality education outside the United States for a cheaper price. Of course, that could depend on how many times you want to fly home during your course, but the possibility is there.
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As mortgage payments grow increasing unmanageable and credit card balances don’t seem to get any lower, Americans have been cutting budgets, making sacrifices, and developing creative solutions to their personal finance woes. But if you’ve considered borrowing against your 401K, you might want to rethink that decision.

The IRS views hardship withdrawals from a 401K account before the age of 59 1/2 as income, and the money is taxed as such. Furthermore, all funds are subject to a 10% penalty. These two factors combine to create several consequences. To begin, taking money out of your 401K will obviously reduce your retirement savings. Even though retirement may seem like a distant future event, you may be surprised at how difficult it is to refund your account while continuing to grow your savings. Beware that your emergency withdrawals don’t bump you into a higher tax bracket, as well — the taxes alone could cancel the benefit of your extra income.

Even if your withdrawal isn’t considered a hardship loan, experts say that taking money out of your 401K may run you the risk of not being able to support your lifestyle during retirement. In fact, experts say that based on current savings statistics, 43% of savers are in danger of living a simpler lifestyle when they reach retirement age. It’s a difficult task to pay back a loan while continuing to pay into your retirement savings.

Though budgets are tight and temptation is high, resist your urge to withdraw from your 401K account. Instead, consider alternatives like selling your car and buying used, eating at home more often, and turning your lights off when you leave a room. When age 65 rolls around, you’ll thank yourself.

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credit: b_d_solisAmerica is beginning to feel a financial crunch, and many families are looking for creative ways to rework their already-tight budgets and make a dollar stretch a little farther. Indeed, if drastic times call for drastic measures, we’re getting out our measuring tapes to draw up new lifestyle plans. One such change: we’re moving. Cost of living can vary greatly depending on city and state, especially in the cost of housing, so now might be just the time to make that big move.
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Thinking about what your financial goals are for the future is an important step in ensuring security and prosperity. But thinking about it is not enough: you also need to start writing down some concrete goals and finding ways to achieve them.

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credit: matsuda.yukihiroIn a somewhat surprising, but welcome, move, Stanford University has announced its intention to eliminate the financial burden of almost a third of its students.
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A lot of people think that they could never buy clothes online. Concerns about the fit, the real color or whether the style really suits them keep a lot of people heading to the mall when their wardrobe needs some work. But it’s worth investigating because purchasing clothing online can save you a lot of money - which means you can buy more clothes!

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Life insurance can be a superb investment for a parent or breadwinner, but lately, we’ve been bombarded with offers to insure children. If you have a young child, you may consider taking the plunge and beginning a life insurance plan for him, but experts say that kids do not need life insurance.
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You’re on vacation abroad and enjoying lazy days on a tropical beach, shopping for souvenirs and eating some of the local cuisine. It’s very convenient to cover these costs using your credit card - no need to convert cash to the local currency or try to work out foreign bank machines.

You might be in for a shock when you get back home and read your next credit card statement. Your credit card provider is probably charging you a “foreign currency conversion fee” of up to 3%, and sometimes another “transaction fee” on top of that. Additionally, some overseas merchants will charge you up to 6% to convert the cost into US$ before they charge it to your card.
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In response to the market dip, many automakers are offering longer loan terms. More importantly, many car owners are biting, extending their loans to seven years or longer.

While these new loan terms may seem like a natural and logical response to today’s financial crush, they may be the downfall of many individuals and car companies. Unfortunately, auto analyst Kevin Tynan says that these practices are bubble-inducing, a dangerous factor in today’s economy, when the bubble is already bursting.
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