Between a weak economy, rising prices on new cars, fuel prices, increased vehicle reliability in the past few decades, and the recent focus in our society on sustainability and making green decisions, we are all willing to drive older cars these days. However, the change in our car-owning habits will have consequences for our wallets. Here is what you can expect financially while Americans are learning the joys of old car ownership:
There are few things more glorious, or more disruptive, to your life than the arrival of a new baby. Planning ahead to help offset the financial havoc that can accompany adding a new member to the family is very wise. Without some consideration to the financial impact of raising a child, your hopes and dreams for your financial future may face inevitable ruin. The cost of raising a child from birth to age 18 for a middle-income, two-parent family averaged $226,920 last year, according to the U.S. Department of Agriculture, and that figure doesn’t include the cost of college. That’s an average of over $12,600 a year for the next eighteen years for each child your family acquires via birth or adoption. If your child has a medical condition, a learning disorder, uneven teeth, or a propensity to jump off large objects without looking, you may be looking at a much higher number.
Here are some considerations to plan for when expecting a new baby.
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As an Economics major in college I am always thinking like a student. I am always trying to save a little cash when shopping and I am constantly observing how my financial decisions affect others. The world moves when money moves. This simple truth has always been fascinating to me.
I encountered one of these situations the other day while helping my FMIL (future mother in law) move into her new home. She hired a moving company to help with the long, stressful day. This was necessary because of the sheer amount of items she had to move. She called me to come and help her during the day, and I figured I would be moving items or driving around town picking up various things to help the day go more smoothly. I did some of these things, but my main job was to watch the movers. My response was, “Really, I have to watch the movers?” The problem was the company was paid by the hour. If I weren’t there, my FMIL would have had to pay for a few extra hours because she was in the closing process throughout the day and couldn’t be there to open her new home to let them in. She also wanted me to make sure they moved at a brisk pace because their hourly rate was just over $200.
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When something breaks, spending the money to fix it can feel painful. Indeed, if the car still runs, or if the appliance still sort of works, it doesn’t seem necessary to rush out and get repairs. Whether it’s a few loose shingles on the roof, or a slightly malfunctioning appliance, if it is “good enough,” many of us find it hard to pay the money to have it fixed.
Unfortunately, this isn’t always the best idea. You might be saving money now, but down the road you could end up paying a lot more.
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Your kids take English, math and science in school, but do they take personal finance? And do you compensate by talking to them about money at all?
Leaving them out of the money conversation leaves that door open to disaster later in life. But by talking to them now, you teach them that money isn’t a scary word, nor is it one to be taken lightly. Even in the early years, kids can understand concepts, if not details. And all of these early conversations keep the lines of communication open for questions and understanding when they are faced with money decisions.
Use these 9 tips to make your kids comfortable with money early on.
Signing a lease can be stressful, since many people don’t know how long they will be staying in one place. This makes agreeing to a set time frame difficult. My fiancé signed a 12 month lease earlier this year, but is now second guessing that decision because of a number of reasons that were unknown prior to signing the lease. Most apartments attempt to get each tenant to sign as long of a lease as possible by offering promotional deals, and my fiancé got a cheaper security deposit and a waived administrative fee for adding 2 months onto the length she initially wanted. Now she is considering breaking the lease and moving on to something different. The question she and I are asking ourselves is when does this become a sound decision financially?
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