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…)
   

Wisebread.com has a tip for families suffering in the recession: send your kids out to work! Okay, it’s not quite as drastic as that, what they suggest is that now, and really at any time, there are quite a few benefits for your teenager in having a part-time job.

First of all, having a job can teach your teenager many life lessons early on - how to save money, how to be responsible, punctual and hard-working, and how to juggle commitments and responsibilities. And it can also help the family out if your teenager can earn their own spending money rather than totally relying on the parents.

But of course, you have to be careful. First, make sure all the legal requirements are met (for example, fourteen years old is the minimum working age across the United States, but many other local restrictions apply, like how many hours they can work in a week). Make sure that you set limits on working time yourself, so that your child doesn’t end up focusing more on the fun of earning money than on their schoolwork.

To help your teenager find a job, there are a few strategies including asking around amongst people you know, and dressing nicely to take a resume around to prospective employers in the neighborhood. And don’t forget that even seemingly mindless, boring jobs can be great life lessons for kids, so don’t overlook them.

College students and anyone who has just turned 18 are targets for credit card companies looking for new customers, but if your 18-year-old is either still living at home or is financially dependent on you and away at college, then the decision on whether or not they should get a credit card fairly lies more with the parents. A recent post at About’s Financial Planning site had a good discussion about the pros and cons of giving a teenager a credit card, and the end result: usually, the best answer is yes, sign them up.

But of course, there must be rules to go with their new found credit freedom, if parents are the ones who have to foot the bill. For example, it should be used to pay for something that the parents have already agreed to pay for (gas for the car, for example) or only in case of emergency.

One of the biggest benefits of getting your 18-year-old a credit card is that they can begin to develop some credit history. Length of credit is an important factor in calculating credit scores so if they are able to use a credit card without creating debt from a young age, that stands them in good stead. But the key thing is that they should treat the card as a bill that must be paid off in full at the end of every month.