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6 comments:
Anonymous
said...
My brother and his wife live in Seattle. They're in dire straits financially. My sister-in-law works in the deli of a grocery store. My brother just lost his job, again. He has a hard time holding on to a job and, as a reslut, they've been living on their credit cards. They currently have over $40,000 in credit card debt! In the meantime, my sister-in-law wants to take my 17-year-old niece to Chicago for spring break. They obviously can't afford such a luxury, but my sister-in-law feels that she's entitled to do this. Any thoughts?
Well... their behavior has to change. How can she think of a trip anywhere in the situation she is in?
1. Why does he have a hard time holding down a job, unless there is a physical disability..he would have to make a decision to support his family.
2. The credit cards have to go ASAP! Create and live on a budget!
3. Trips, and other luxuries s/b on hold until they've strangled this debt instead of it strangling them.
Again, they will have to realize that thier behavior is hurting their family. They'll never get out of this hole otherwise.
Also, if your sister's husband does not make a decision to work as many jobs as he has to in order to support the family, she will have to take the reigns and find a way to increase her income so they don't stay in the situation they are in.
Now, what would be wonderful is if both of them hit the ground running working 2 jobs to get out of debt.
As for their daughter. I understand wanting to bless your children with nice things. But only within your means. A good lesson would be for her to save money to take the trip herself - it would help her appreciate the value of money.
My family has already spent that tax rebate money and they havent even filed yet! What would you recommend as a good vehicle for saving Uncle Sams "gift"?
Short Term ie: emergency savings;saving for a car;tuition,etc. -
Put it in a Money Market Savings account - NOT a CD...this way you will have easy access to it without paying fees for withdrawing. It draws interest albeit a small amount, but that's okay when your saving the money for a short period of time or for easy access.
Long-Term: Mutual Funds - Growth, Aggressive Growth, Balanced, Global are what I would recommend.
YOU MUST DO YOUR RESEARCH...check for:
-How long the fund has been around -Returns for last 5/10 years -Who is the fund mgr/for how long? -Morningstar rating, etc, etc.
Q. What financial matters should teenagers learn, before going to college?
A. 1. How to earn money, providing a service or product, working regular jobs, doing odd jobs - they should learn to be a good, hard worker and provide excellent service b/c this generates money.
2. How to MANAGE their money...okay your senior dues of $100 are DUE next week..you have $150 - do you...
Buy those new Timberlands that just came out - $125...and see if your parents will pay the dues? UH NO....pay your dues - they are priority and start over saving for the boots.
Don't think you are too young or don't have enough money to write a budget and live by it. Begin these good habits now and you will reap the benefits the rest of your life.
3. How to SAVE Money - You won't ever have anything if you don't learn to save. Teens should start saving a little each time they get money, whether it is from a job or a gift. NEVER spend everything you have.
4. Have a BANK ACCOUNT - This will help teens become familiar with handling money.
Other Tips:
Keep a Spending Notebook - A small notebook or piece of paper carried with you daily that you write down everything you spend each day.
Don't loan money out.
CASH AND CARRY!! Once you go to college, or before, the credit card companies will be sending you offers- BACK AWAY FROM THE ENVELOPE. It will be very tempting, they will make the offers look sooo good. You do not need a credit card for any reason (not even emergencies).
I'll leave it there b/c that is a whole other subject. Do some research and you'll see why.
6 comments:
My brother and his wife live in Seattle. They're in dire straits financially. My sister-in-law works in the deli of a grocery store. My brother just lost his job, again. He has a hard time holding on to a job and, as a reslut, they've been living on their credit cards. They currently have over $40,000 in credit card debt! In the meantime, my sister-in-law wants to take my 17-year-old niece to Chicago for spring break. They obviously can't afford such a luxury, but my sister-in-law feels that she's entitled to do this. Any thoughts?
Well... their behavior has to change. How can she think of a trip anywhere in the situation she is in?
1. Why does he have a hard time holding down a job, unless there is a physical disability..he would have to make a decision to support his family.
2. The credit cards have to go ASAP! Create and live on a budget!
3. Trips, and other luxuries s/b on hold until they've strangled this debt instead of it strangling them.
Again, they will have to realize that thier behavior is hurting their family. They'll never get out of this hole otherwise.
Also, if your sister's husband does not make a decision to work as many jobs as he has to in order to support the family, she will have to take the reigns and find a way to increase her income so they don't stay in the situation they are in.
Now, what would be wonderful is if both of them hit the ground running working 2 jobs to get out of debt.
As for their daughter. I understand wanting to bless your children with nice things. But only within your means. A good lesson would be for her to save money to take the trip herself - it would help her appreciate the value of money.
What financial matters should teenagers learn, before going to college?
My family has already spent that tax rebate money and they havent even filed yet! What would you recommend as a good vehicle for saving Uncle Sams "gift"?
Hey KE!
If the purpose of saving is...
Short Term ie: emergency savings;saving for a car;tuition,etc. -
Put it in a Money Market Savings account - NOT a CD...this way you will have easy access to it without paying fees for withdrawing. It draws interest albeit a small amount, but that's okay when your saving the money for a short period of time or for easy access.
Long-Term: Mutual Funds - Growth, Aggressive Growth, Balanced, Global
are what I would recommend.
YOU MUST DO YOUR RESEARCH...check for:
-How long the fund has been around
-Returns for last 5/10 years
-Who is the fund mgr/for how long?
-Morningstar rating, etc, etc.
Hi Hugs Not Bullets....
Q. What financial matters should teenagers learn, before going to college?
A.
1. How to earn money, providing a service or product, working regular jobs, doing odd jobs - they should learn to be a good, hard worker and provide excellent service b/c this generates money.
2. How to MANAGE their money...okay your senior dues of $100 are DUE next week..you have $150 - do you...
Buy those new Timberlands that just came out - $125...and see if your parents will pay the dues? UH NO....pay your dues - they are priority and start over saving for the boots.
Don't think you are too young or don't have enough money to write a budget and live by it. Begin these good habits now and you will reap the benefits the rest of your life.
3. How to SAVE Money - You won't ever have anything if you don't learn to save. Teens should start saving a little each time they get money, whether it is from a job or a gift. NEVER spend everything you have.
4. Have a BANK ACCOUNT - This will help teens become familiar with handling money.
Other Tips:
Keep a Spending Notebook - A small notebook or piece of paper carried with you daily that you write down everything you spend each day.
Don't loan money out.
CASH AND CARRY!! Once you go to college, or before, the credit card companies will be sending you offers- BACK AWAY FROM THE ENVELOPE. It will be very tempting, they will make the offers look sooo good. You do not need a credit card for any reason (not even emergencies).
I'll leave it there b/c that is a whole other subject. Do some research and you'll see why.
-Dee
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