There is no doubt about the fact that having a baby is expensive. Some estimates show that even just the first two years, you might end up spending an extra $16,000 just in food, clothing, health care, and more. If you’ve been struggling managing a budget with just two people, it can come as a shock to learn that the pint-size version of you has to have a bigger share of the budget pie than you might expect. Before the actual event, it’s a good thing to take a cold, hard, look at how to build a realistic budget and find out where you can make adjustments and how to position yourself to not only afford the new addition to your family, but also to enjoy your new life as parents.  (more…)

The recession may indeed be almost over, and the urge to splurge is coming right around the most tempting time of the year - the holidays. You may be finding some economic relief with the stabilization of the economy, and this can put you in a better mood. It can also be a justification for overspending again on the holidays, something that can lead to financial difficulties the following year. Even if there is more cash to be found this season, and you want to have a better holiday season than last year, you can find ways to splurge without it forcing you to pull out the credit cards or get a paycheck loan. All it takes is a little awareness and a whole lot of creativity. (more…)

Working mothers struggle with the pull of being there for their children and the need to contribute to the household income. Child care costs can be so high that many will justify that it pays more to stay at home than work. In an economy where more women are becoming the sole breadwinner’s for their families, it’s becoming clear that taking time off to raise children comes with inherently high risks for the financial future of themselves and their households. It reduces your ability to get different forms of credit in your own name, whether payday advance loans or credit cards. It substantially impacts your earnings over time. It’s time to take a look at generating child care options that don’t cost as much as traditional day cares and can provide a way for women and the unemployed to continue gaining income and laying a sound financial future. (more…)

If you’re a parent during this recession, you may have questions on how to tell your children about your financial situation without scaring them unnecessarily. You can use the recession as a great history and economics lesson to help your children grow up with a better sense of money values. Explaining economics to kids doesn’t have to cause anxiety, and many times just communicating the needs of the family will help the kids to understand how they can contribute to the solution, instead of being part of the problem. (more…)

Visiting exotic locales and eating out at scenic restaurants make for a great family vacation, but it also can quickly add up to a budget killer. You don’t have to opt for a staycation just because funds are low, though. You can still plan family vacation ideas on a budget that help you to have fun while saving money on lodging. Here are some things to consider when you are trying to plan a budget-friendly vacation. (more…)

In the current economic climate people are looking to save money on everything possible. Clipping coupons and looking for budget oriented or “bargain” items is a very popular and common past time.

This has spilled over into vacationing as well, and now everyone is hoping to enjoy some discounts and savings on their holidays. Many parents look for family vacation ideas on a budget as a way of enjoying a unique, but cost-effective trip. There are entire websites dedicated to saving money while traveling and many news stories about ideas that others are using to enjoy a fun and yet inexpensive trip. (more…)

Discussing financial matters with your husband or wife can be a tense situation, especially if your financial situation isn’t too good. If your partner has a different approach to financial matters from you, or even if they’re similar but have different priorities for money you save, then there is bound to be some conflict. Trent at the Simple Dollar has some talk tactics that should help your discussion work out better, including:

• Start off by talking about your financial goals and ideas for the future
• Focus on one issue per conversation (reducing spending, or retirement planning)
• Don’t make any accusations without admitting to some of your own faults at the same time
• Be realistic with expectations, and how much change you can expect - both from yourself and from your partner
• Decide on precise tasks for each of you to do before the next conversation (for example, researching retirement plan options)
• Consider what financial or material sacrifices you are willing to make (before you start talking)
• Don’t hide any spending secrets or unpaid bills from your partner - put all the financial story on the table
• If you have trouble talking about it calmly together, consider having the conversation in another way, such as by email

You can imagine the scenario: one partner is a big spender and the other a big spendthrift, and it’s a marriage doomed to arguments and conflict forever. Or is it? Some recent tips from Laura Rowley do at least provide some hope for couples who have major financial differences of opinion.

One suggestion is to seek the aid of a financial coach who can work with both partners to reach a compromise on your financial strategies. Since a lot of your financial approach to life can be a result of your childhood and family circumstances, it’s sometimes difficult to understand where your partner’s seemingly crazy ideas are coming from - a coach will help you both explain your thinking and work together to have a compatible outlook for future saving and spending.

Another helpful way to get partners on the same financial track is to use an effective tool to manage your money - for example, finding a good piece of budgeting and money tracking software that you can both use. Some of these tools, like Mvelopes.com, include a section for discretionary spending for each individual - for example, a clothing or computer game budget per month - which means that you can each buy something you like for yourself without feeling guilty, because it’s part of the agreed budget.

When you have a child, the big decision is how soon, or if at all, to return to the workforce. Of course, there are plenty of personal factors involved here, but one major influence is often the financial situation. But make sure you take into account all the costs before deciding whether or not returning to work makes sense from a financial viewpoint:

• Calculate child care costs: This can quickly reach into the thousands of dollars. Unless you’re really career-focused, you want to make sure you’re earning significantly more than you’re paying to put your child into child care. And in this case, more children make it more expensive.
• Calculate extra costs of being at work: For example, the quick coffee that you buy on your lunch break (even if you are frugal enough to bring your lunch from home); and the extras you need to be able to be at work, for example, work-style clothing. On top of that, factor in the costs of transport or commuting both to the child care center and to your place of employment.

Once you’ve gathered this information accurately, compare that to the income you will receive by returning to work - this makes at least one aspect of the decision a little more grounded in reality, because it’s not an easy decision for many parents to make.

1. Take a road trip: It now costs you less to put gas in your car while it will take more money to get your bags on a plane. The idea of spending hours in a car with howling kids might terrify you, but they are your kids and the howls of laughter can make it worth all your effort. The key to a successful family road trip is planning. Pick a travel route that connects interesting places at least 75% of your family will enjoy. MP3 and portable DVD players can be great to keep the kids quiet, but don’t rely on them the entire trip. Technology creep has led families to spend less and less time actually communicating. Just don’t expect anything miraculous to happen. Most family bonding happens when remembering a trip, not during it. (more…)