Savvy Money Management for Busy Women: Embracing a Budget

Savvy Money Management for Busy Women: Today’s Topic: Embracing a Budget

Ladies, it’s your turn today. Because as women, we’re so busy thinking of everyone else, we often neglect to do the things most beneficial for ourselves. Even taking time to read this blog means you’re saying “no” to someone or something else. Good. It means for once, you’re saying “yes” to YOU!

Here’s some statistics that might interest you. Studies show that:

85% of consumer decisions are made by women
90% of women will be solely responsible for their finances at some point during their lifetime
31% of households are headed by women breadwinners

As our demographics shift, it’s more important than ever for women to harness the skills necessary to budget, save, steward, spend and invest money. I know you’re busy – so take one step at a time, and make what I call “small wins,” one step at a time. You won’t regret it!

Scores of women have told me they feel unprepared – even afraid – with regard to money management. Often, we defer to our spouses to make decisions about money – even powerful career women with corner offices. Case in point:

Just a couple years ago at my Birthday party, I asked each of the ladies at the table this question, “How many of you sign your tax returns without even knowing what’s in them?” Their answers shocked me. All but one of these jet setters (literally) signed her return without knowing and understanding the details. Ouch!

The truth is – we never, ever know what’s in store. Are you prepared if your husband died suddenly? Would you know how much money was at your immediate disposal and where to find the rest? Will the funds at your disposal secure your future – or are you prepared to earn more?

Because this topic is such an essential one, I’m going to write a series of blog posts over the coming months to walk you through 5 concepts of money management, including creating a budget, understanding and managing credit, saving, investing, and preparing for death and divorce.

Empowering yourself with information before an emergency is the first step in achieving the savvy money management skills essential for every woman, especially if you’re raising a family. (And while you’re learning – teach your kids!)

First things First: Create a Budget

Creating a budget is essential because it’s a proactive step to understanding just how much disposable income you have to spend, aside from fixed expenses, savings and investments. Creating a budget – and sticking to it – reduces stress, curbs impulse purchases, and holds your feet to the fire. The hardest part is getting started. Dig in!

Minutes to a Mastering Basic Budget Skills (Well, almost…)

Get an online form. The web’s got scores of budget templates you can find online. Your software packages may even include one, so take a look. (I’ll give a plug for one that anyone can use created by our friends at National Bank of Arizona)

Determine your disposable income. You need to determine exactly how much money you have each month to spend. Some people find spending on a cash-only basis discourages excess debit usage. Try withdrawing cash twice each month based the amount you have to spend after fixed expenses, savings and investments. You’d be surprised how using cash affects your spending choices! If you spend faster with cash in your wallet, then stick with the debit card.

Spend time with your budget every month. Maybe it’s “Money Mondays” or “Thrifty Thursdays” – but make friends with your budget. Take a look at your spending each week. Keep your goals in mind. What are you working toward? What incentivizes you? Picture it. Reward yourself for your progress. (But not with more spending!)

When you take a little time to analyze what you bring home after expenses, savings and investments, make a commitment to live within your means, or work to earn more. Taking just one proactive step such as creating a monthly budget boosts your confidence – and your savvy money management chops!

Today’s Savvy Money Management Tip: Take a look at your spending when it comes to convenience. If you often find yourself at drive-thrus for lunch, make a commitment to make up a couple of fabulous salads to keep in the fridge…and instead of fast-food restaurants…drive-through your kitchen at least twice each week. It will be easier on your wallet…and your waistline! Remember, “small wins,” over time, translate to sizeable savings!

30 Questions Parents Can Use to Teach Their Kids About Money

30 Questions Parents Can Use to Teach Their Kids About Money

What is Your Financial Knowledge

1. What are wants and needs?

Parents ask your kids: What’s the difference between a “want” and a “need”?
As adults and parents, we all have a better concept of wants and needs. Even we have to be reminded at times though, and it is an important distinction that many children simply do not grasp. Engage in a simple activity to show your kids the difference between a want and need. To your children anything they want enough instantly becomes a need. Ask them if they really need those new shoes, or do they just want them? Ask them to think of others things they might want but don’t need. It will be a great start to begin distinctions that might help them save money in the future (see my post on the Two Minute Rule) and a great refresher for you too!

2. How Can You Celebrate Without Money?

Parents ask your kids: How could you celebrate when you accomplish something that doesn’t require money?
The possibilities to do activities without draining your money are only limited by your children’s imagination. I am sure from experience you know they have quite the imagination! Listen to your kid’s ideas and try to put it into practice it in the near future. Don’t just consider their ideas, actually do them. They might suggest fun and free activities all by themselves in the future. If you can create a reward for their creativity, not only will it fuel their creative potential throughout their life, but you will be establishing a healthy habit for them.

3. What Are Taxes?

Parents ask your kids: Do you know what a tax is and why we have it?
Many kids simply have no idea. Taxes are a concept more for your children that have a good handle on some basic money concepts. Talk to them about the different types of taxes before they start into part time jobs or their own business. They may know about some coin terms like Medicaid and Social Security, but not have any idea what these taxes actually do. Explain the different types of taxes to your children and how they might encounter them in their life. From sales tax to income, show how each affects them.

4. How Do Ads Influence Us?

Parents ask your kids: Do you know that you will see over 40,000 ads before you turn 18 that will make you want to spend money?
That is a pretty staggering number that most kids (and adults) have no idea about. The number of outlets reaching out to try and steer you towards a purchasing decision are phenomenal, and they are coming in more ways then just billboards, TV commercials and newspaper ads these days. Ask your kids if they know how all these ads might influence them. Tell them to think critically about ads and to use their brain when making buying decisions. Many times you are paying simply for the name on an article of clothing or toy, when there are products exactly the same at half the price! See if you can spot one of these items with your kids.

5. How Do Your Parents Make Money?

Parents ask your kids: Do you know what your parents do to make money?
Your children know that you work for your money, but most of them won’t know what that actually entails. Explain what it is you do everyday that makes money and pays the bills. It will be a great learning experience for your kids to actually learn the technicals of a day to day job or your entrepreneurial lifestyle. Encourage them to think of their own ways to make money while you are at it. Teaching your kids what job expectations are and how companies work is important for their entry into the work force. You may find it ignites their creativity to start their own business.

6. How Much Does Gas Cost?

Parents ask your kids: Do you know how much it costs to fill up a car’s tank of gas?
Your 15 or 16 year old probably knows this lesson all too well, but your younger children may not. It is never too early to introduce them to the facts that going places they want to go costs money too. Use this as an opportunity to talk about the advantages of having one type of car over another. An SUV guzzles gas but it is often necessary for larger loads. Hybrids save lots of gas but can cost more upfront. Find out how your children might save on gas like consolidating trips.

7. Can You Make a Present?

Parents ask your kids: Have you ever made a present instead of buying it for someone?
Some families make this a holiday tradition while others pick up all their presents at the mall. If your kids have never done this before encourage them to. Think of some ideas with your kids how they might make their own gifts this year. Sometimes the best gifts are the ones we make ourselves and not the ones we buy from a store.

What Are Your Buying Choices (or Entitlement vs. Empowerment)

8. What makes you decide on which pair of shoes to buy, which clothes to buy?

Parents ask your kids: What makes you decide on which pair of shoes to buy, which clothes to buy?
Most kids will give you two answers; either because it is what their friends wear, or simply because they like it. Both make perfect sense, but the hidden question to this is, “why do you like them?” It’s probably not one they are going to be able to give you a firm answer to, but the answer is most likely because they have been influenced by advertising. Ask them to reflect again on how advertising has been affecting them without them even knowing it. Hopefully they will learn to shop for similar styles that are half the cost.

9. What is your favorite store? Why?

Parents ask your kids: What is your favorite store? Why?
You probably already know the answer. Whether it’s Macy’s, American Eagle, Forever 21, Pac Sun or many more, there is usually one favorite store your kids always picks to shop. It may be the ambiance of the store or more likely the brand of clothing they find there. What you and they might not know though, is that lots of the exact same brands can be found at different stores for half the price! A dress that costs $100 in Macy may be only $40 or $50 in Ross or Marshalls. Knowing that, doesn’t it seem silly not to buy the same clothes at half the price if you can? Be sure to visit some discount stores next time with your kids to find true savings.

10. How many of your clothes are from popular brands?

Parents ask your kids: How many of your clothes are from popular brands?
Ask your kids to physically go into their closet and count out the number of clothes from their favorite brand or two. Is it 30 percent, 50 percent or even 70 percent? Try to find examples of cheaper brands of clothing that are very similar to the one they like. There are many that are very similar in style and fashion, just with a different logo. Combine it with the previous example and see if they can find their favorite brands at other stores for much cheaper. Show them how they are spending so much extra money simply for a name!

11. Does it feel good to buy something on sale? Why?

Parents ask your kids: Does it feel good to buy something on sale? Why?
Hopefully they answer yes! But considering you have probably done most of the buying for your kids, they may not care or really appreciate a sale. Saving money should always be a rewarding experience. A good way to start your children learning is by giving them a set limit card of their own, just like the one we offer here at YOUTHpreneur. Something like the UPside card can help your children appreciate the value of a dollar a bit more. Check it out today to learn more.

12. What was the best thing you ever bought? Why?

Parents ask your kids: What was the best thing you ever bought? Why?
You may or may not have any idea what the answer to this question will be. It could be an expensive and flashy toy, or it could be a treasured stuffed animal or other item from when they were younger. What this will give you is a good bearing on some of the things your child values. Ask them their top five. Try to show them that some of the best things they ever bought might not necessarily be the most expensive. Think of examples to help them find other items like these.

13. How do you act when you want us to buy you something?

Parents ask your kids: How do you act when you want your parents to buy you something?
Your kids may see the situation quite differently than you do! But sometimes the way they ask for things are not appropriate or the best way to reasonably ask for them. Try to instill in them a sense of self-ownership and make them earn what it is they want. That can be through letting them control their own set spending limits or coaching them when they are being obstinate, instead of just bowing down and purchasing things for them. Whatever your method if you can make them realize the value of the things they want, they will be better prepared to function in the real working world.

14. Is it easier to name your favorite store than your favorite charity?

Parents ask your kids: Is it easier to name your favorite store than your favorite charity?
For most kids it will be. After all, their favorite charity isn’t posting billboards and ads at every turn. But instilling a sense of charity and showing them how to give back to the community should be an important part of their life. Find out if they have any desire to help one cause or another and try to put it into action. Visit a soup kitchen and help out if that is what they like to do, or donate old clothes to the Salvation Army. Try to encourage whatever their charitable passions are and they will reap the rewards from helping throughout their lives.

How Can You be Charitable (or Delayed gratification vs. Instant Gratification)

15. How do you feel when your friend gets something new and you do not?

Parents ask your kids: How do you feel when your friend gets something new and you do not?
Your kids may shrug off this question or not. It is always good to know how your children react when their friends get cool new toys though. Now I’m not advocating every time your children’s friends get a toy to go out and buy them one too – exactly the opposite. Knowing how your kids react to this kind of influencer though is important. Maybe you can do one of your free and fun activities with them to take their mind off this and show them they are special in their own right. This will help them learn to value more of what matters and less about every new bauble or toy.

16. How do you act when you get something new and your friend does not?

Parents ask your kids: How do you act when you get something new and your friend does not?
Children usually react in two different ways; they share their new toys with their friends, or they hold it over them and taunt them with it. Most of it is a reasonably good natured competitive spirit, but you should take the opportunity whenever possible to teach your kids to be sharers and to let others enjoy the benefits they have received. It is a philosophy they can use throughout their life and is essential in being an entrepreneur and a good steward of the business community. Giving back has many of its own rewards and it is never too early to being learning that lesson.

17. What are some of the things you could do to help reduce the monthly bills at your house?

Parents ask your kids: What are some of the things you could do to help reduce the monthly bills at your house?
Kids of different ages could have different ideas. The important thing is to listen to what they might do and suggest some ideas of your own. Maybe they can cut down on the water bill by taking quicker showers or cutting back costs on gas for the car by consolidating trips. It’s possible they come up with an idea of their own that you might have never thought of and is quite good. Their idea could also be to not cut down on bills, but bring in additional income and how they might help do that. Whatever it is, listen and work with their ideas.

18. What could you do to help someone else besides give them money?

Parents ask your kids: What could you do to help someone else besides give them money?
This is another great question to find out what kind of charitable activities your kids are into. It can also be a great opportunity to help out the neighbors or a family friend. Perhaps as a weekly charitable act your kids can help the neighbor pick the acorns up off their lawn, help an elderly person with some of their groceries or a number of different things. Think of it as a way to instill philanthropy. Take their ideas into consideration and try to make them happen first before suggesting some of your own.

19. Could you raise money by selling some of your stuff?

Parents ask your kids: Could you raise money by selling some of your stuff?
Hopefully the answer is yes! A lot of us have the tendency to be pack rats and keep every stitch of clothing or toy we have bought for our children. But rarely do we use many of these old items anymore. Wouldn’t you and your children rather sell off unused but still good items and turn them into cash instead? So clean out the closets, attic and basement with your children and show them how they could be making some extra money by selling off old stuff.

20. Could you raise money by helping your neighbors for a few hours a week?

Parents ask your kids: Could you raise money by helping your neighbors for a few hours a week?
Find out if your kids have some ideas how they could help out the neighbor and make some money doing it. Mowing their lawn or other various chores many neighbors are willing to pay for and help out your kids. The tasks don’t have to take over their whole week, but if they start small and begin generating an income it will start to spark their own drive and creativity. Walk with your kids over to a neighbor’s house you are friendly with and introduce them, but let them make the proposal to help out. It will give them a sense of ownership for helping.

21. What are two things that you own that you could give to someone else?

Parents ask your kids: What are two things that you own that you could give to someone else?
It could be a soccer ball, old clothes and more. Ask your kids to bury through their closet or the attic to find two things they are not using anymore. Maybe they have a friend that has always wanted something they have, but no longer use. Once they have picked out the items, make sure they follow through and actually give them to the friend, relative or even sibling. Maybe it is even an item they still like, but know another person would be happy to have. That kind of generosity will serve your kids well throughout their lives.

How Can You Save and Make Money (or Becoming a master to money instead of a slave to money)

22. How would you feel if you had to wait until you saved enough money to buy something you really wanted?

Parents ask your kids: How would you feel if you had to wait until you saved enough money to buy something you really wanted?
Whatever the answer, this is something you should start teaching your children how to do. By giving them the responsibility to earn and manage their own money, not only will they value it more, but they will take pride in the things they have bought with it. It will certainly save you a lot of money and pull your children out of the “just charge it” and entitlement phase that so many have today.

23. Have you ever traded your time in exchange for something you really wanted? When? How did it feel when you were
done?

Parents ask your kids: Have you ever traded your time in exchange for something you really wanted? When? How did it feel when you were done?
Maybe it was through helping a friend or neighbor out, or even you, to help get something they wanted. It should be a rewarding experience for them. Show them that mowing the lawn or other chores they get paid for are actually trading their time in exchange for the things they want. Money is the common denominator between all of it, but what we do with it is what really defines us.

24. How can you make sharing a part of your next shopping trip?

Parents ask your kids: How can you make sharing a part of your next shopping trip?
Listen to their ideas and see if they have any creative ones. Perhaps if they are going to buy something, they could also pick up something small for a friend and share with them. It could be as simple as sharing a ride to the mall with a friend. Whatever it is, the connection you want to make with them is between buying and sharing. When they do something for themselves that they are thinking about what they can do for someone else as well.

25. What things have you done with your friends where you had fun but didn’t have to spend money?

Parents ask your kids: What things have you done with your friends where you had fun but didn’t have to spend money?
This is another great question to find out where your kids’ interests may lie without having to spend lots of money. Encourage more of these types of activities with their friends. Sure it’s great to head to the water park, movies and other places every now and then, but they may be just as content to go over a friend’s house and hang out without spending any money. Not everything fun requires money!

26. How do you feel when you set a goal, and then achieve it?

Parents ask your kids: How do you feel when you set a goal, and then achieve it?
Your kids should have a sense of accomplishment. Meeting a goal, even a little one, is always a rewarding experience! Meeting some of our bigger goals often are the most memorable moments in our lives. Know what your kids’ goals are and how you can help them meet them, within reason. Don’t do it for them! Also, be sure to congratulate your kids when they reach a goal.

27. How could you help your parents make more money?

Parents ask your kids: How could you help your parents make more money?
The range of ideas here could be huge, and usually it involves around one or more of your kids’ interests. This can be a great opportunity to show them how to turn a hobby into a business. It is never too early to start them down the path of entrepreneurship. It could be anything from jewel making to photography, babysitting to mowing lawns. Whatever the idea, try to help them along and encourage them to start. There are some great tools here on YOUTHpreneur that can get them excited and give them a helping hand along the way.

28. Do you have a hobby or talent that could become a business that could make you money?

Parents ask your kids: Do you have a hobby or talent that could become a business that could make you money?
Follow up with the ideas from yesterday and really ask your kids to look into how they could turn a hobby into a business. Ask them to sit down and create a budget sheet. How much would it cost them for equipment or goods they might need, compared to how much they are making in profit? Is their hobby a feasible business? In the YOUTHpreneur Biz Kit you will find many of these items that can help simplify the process and explain all the terms to them. It’s a great way to launch their entrepreneurial careers.

29. If you could have an extra $500 per month, what would you do with it?

Parents ask your kids: If you could have an extra $500 per month, what would you do with it?
Your kids’ immediate answer might be to go spend it on a whole bunch of new things, most of them that will last them only a few weeks before being forgotten. Guide them through different ways to save and give back their money. If they have $500, ask them to put $200 of it into a savings account, give $100 to their favorite charity and keep the other $200 for themselves to spend as they would like. This will set them up for long term success and the fundamentals of a budget. If we all spent every penny we got as soon as we got it, we would be dead broke before too long and have nothing for the future! This way, your children learn philanthropy and saving.

30. How would you Pay Your Family First?

Parents ask your kids: How would you Pay Your Family First?
Your kids may not know this term, but they should as it is one of the most fundamental to continued success and happiness. Pay Your Family First is not only my organization for financial education; it is also a way of being financially fit. What it means is that whenever you are accounting for your income or any good fortune that has come your way, to always share it and give back with your family first and foremost. Paying your family first not only helps you to strengthen bonds, but sets you up for success your entire life. I hope you have enjoyed these questions to ask your kids, and have both grown together because of them. I encourage you to join our ongoing conversation in the YOUTHpreneur community and to start your own. Have your kids sign up and spark their entrepreneurial spirit. It is a skill they will develop and keep throughout their lives.

Our ThriveTime Scholarship Challenge Launches at Estrella High School to Rave Reviews

Our ThriveTime Scholarship Challenge Launches at Estrella High School to Rave Reviews

: Sharon Lechter’s Thrivetime for Teens

Your teen just spilled soda all over the brand new laptop you gave him for Christmas…or downloaded too many songs last month. What now? That’s exactly the kind of scenario we serve up in our award-winning board game, ThriveTime for Teens. And as we kicked off our statewide ThriveTime Scholarship Challenge at Estrella High School in Avondale, Arizona, it was our pleasure to watch students compete so enthusiastically. Proving the Xbox generation still embraces a real-time challenge!

As I witnessed first hand the difference the challenge will make in the lives of those kids, I beamed with pride. When teens practice making choices and decisions about personal finances before they get to college and out into the “real world”, they’re so much better armed against diving into debt.

By educating teens about managing money and time, we can better equip them to Thrive during their early twenties and throughout their lifetime. We can set our youth up to do more than just survive.

This is why Pay Your Family First launched a scholarship challenge in my own home state of Arizona. Under the searing budget cuts of a limping economy, schools everywhere are struggling to maintain high quality education. So we created a win-win opportunity for students, schools and families. The ThriveTime Scholarship Challenge requires participants to navigate real-life scenarios related to earning, saving, investing, spending, and giving. Oh – and they’re having FUN competing against each other in groups of 4 to 6 players at a table, with dozens of games going at once.

In partnership with Choices Educational Empowerment, we’ve scheduled competitions at scores of high schools across our great state with more schools interested in signing on. Each participating school will receive a $250 donation from Pay Your Family First, and winning students earn the chance to compete during the state tournament in April 17th, 2012, for prizes ranging from $2500 to $5000. That kind of money goes a long way toward financing a college education. No wonder the kids were motivated!

Estrella High School Playing ThriveTime For Teens

According to Estrella’s principal, Casey Zordani, the kick-off competition went off without a hitch, and high praise came from the kids themselves. “The students were talking about the competition for the rest of the day. Thanks again. Your program made a big impact on my students’ lives.“

For years I have advocated that money management skills begin at home. Think about what your parents taught you. Did they help you to practice the discipline of saving part of that $20 Grandma sent for your Birthday each year? Did they require you to pitch in around the house and to earn spending money? Did they underscore the dangers of debt and how to avoid it?

Unfortunately, many parents don’t feel comfortable or are not sure where to start to teach their children the principles of personal finance because they never learned any skills themselves. But you can do better for your kids.

Start by using the tools available to you, and learn together. Check out our website at Pay Your Family First, andif you think your child’s high school would benefit from our ThriveTime Scholarship Challenge, contact our own Angela Totman at: angela@pyff.net

Here’s to building a secure financial future, starting today!

Sharon

Smart Money Tip of the Day: Talk with your local banker or investment advisor about opening a 529 College Savings Plan. These plans – named after Section 529 of the Internal Revenue Code – are administered by state agencies and organizations. The withdrawals you make toward higher education expenses are free from federal tax income.

New Year’s Resolution: Get an Early Start on Tax Season

New Year’s Resolution: Get an Early Start on Tax Season

You read that right. As one year comes to an end and another begins, people often look to make changes in every aspect of their lives – especially finances. So now is a good time to think about taxes. Yes, really!

It’s not too early to look ahead to tax season to consider steps you can take now to make that often dreaded deadline a bit easier. As a CPA, I’d like to share a few quick tips that may help you to get as much out of your taxable income as possible:

Hire a Tax Representative. We hire landscapers to manage our grounds. We consult with attorneys to represent our interests. Taxes, too, require professional advice and management.

It’s easy for most people to miss opportunities to reduce their taxable income, given our complex tax code and changing legislation. Sure, you could opt to do your own taxes to save money, but an advisor is likely to identify how to keep more of the money you earn. They have years of experience of seeing how people have handled their finances correctly (and not so correctly) — so you get the benefit of all of that experience. Plus, you can reduce the fees incurred a tax professional by preparing ahead of time by taking just a few steps:

Gather the appropriate records, including last year’s tax returns, receipts for charitable donations, and year-end investment and property tax statements
Identify changes in your status if you’ve gotten married or had children
Consider starting your own business…it will allow you to invest in your future with pre-tax dollars! Ask your advisor to guide you through the process.

Read Up on Tax Legislation and Programs. If you still choose to do your own tax returns, or if you just want to stay informed, make use of trusted free resources such as www.feedthepig.org, or www.360financialliteracy.org to brush up on legislative initiatives to get the most out of your taxes. Make sure to look into those now, for important year-end opportunities. Many of these tax initiatives were extended through the end of 2012. However, with all the discord in Washington, your advisors may want you to take advantage of them while you can in 2011.

Don’t overlook the most common practices to reduce taxes, such as deferring income, accelerating expenses, and asking for a raise after the New Year. Considering retirement in the near future? Consult with your tax advisor about the options available to you. If you are looking for more guidance check out It’s Your Turn To Thrive, a program I created with my advisors to help you learn what questions you should be asking your own advisors. www.payyourfamilyfirst.com

Follow these tips and cross at least one of those New Year’s resolutions off your list! Wishing you peace, joy and prosperity in 2012!

Best selling author, entrepreneur, international speaker, CPA, philanthropist and proud mother and grandmother, Sharon Lechter passionately promotes financial literacy. A national spokesperson for the AICPA, Lechter also served as a member of the first President’s Advisory Council on Financial Literacy.

The Founder of Pay Your Family First and YOUTHpreneur, Lechter has been honored to receive several awards, including the Mom’s Choice Award® for her board game, ThriveTime for Teens, and also for the YOUTHpreneur BIZkit. Most recently, she released Three Feet from Gold and Outwitting the Devil in cooperation with the Napoleon Hill Foundation. Co-author of the international best selling book, Rich Dad Poor Dad, Lechter continues to travel the globe empowering others to achieve prosperity. Visit Sharon Lechter online at http://www.sharonlechter.com

‘Tis the Season to be Mindful: Help Your Kids Practice Restraint & Generosity

‘Tis the Season to be Mindful: Help Your Kids Practice Restraint & Generosity

Famed children’s book character Mrs. Berenstain Bear knew what she was talking about.

At this time of year, her “cubs,” she says, get a good case of the “Gimmies.” And of course, why wouldn’t they? The frenzied build up to “Black Friday” left Thanksgiving in the dust. Although this time of year is great for retailers and can give a boost to our economy, what message does it send to our children who hear and see the mad rush to spend?

Kids get amped up about the holidays – nothing new there. And I get it – as parents, we want them to enjoy the magic. But with 17 million hungry people across our nation, for many, the holidays are a cruel reminder. It’s a good time to inspire children to re-focus — not on what they’re getting – but instead, on what they’re giving.

Giving feels good. But generosity starts by carefully stewarding your own family’s finances, first. This year, I challenge parents to model benevolence. Spend less so you can give more, and enjoy a truly meaningful holiday season – without quite so many “gimmies.”

5 Steps to Enjoying a Bountiful, Generous Holiday:

1. First, ensure your own family’s finances are in order.

Generosity is good, but we must not jeopardize our own financial stability to give to others. Devise a budget for gifts for your own children, and bear in mind that less is more. Spoil them with time and memories, rather than toys and gadgets that may get lost amongst the dozens that they already have. Remember it is the experience, not the expense, that is important.

2. Encourage Thoughtfulness & Creativity in Gift-Giving Read Shel Silverstein’s, The Giving Tree to your kids – the older ones too!

A classic that shows your children they don’t have to spend money to give generously. Encourage them to make gifts or coupon books for Mom, Dad or Grandma – with coupons for chores around the house, breakfast in bed, backrubs or other acts of helpfulness and kindness.

3. Require kids to earn the Money they spend on Gifts As parents, we serve our children well by teaching them that work and creativity yield reward.

Even Preschoolers can feed the dog, separate silverware from the dishwasher and match socks. Devise a list of extra chores kids can do to earn cash. Give them ads to sift through for coupons and deals. Then, hold them accountable for spending their money wisely. And have fun shopping!

Tip – Encourage your kids to create their own earnings by unleashing their entrepreneurial gifts. Check out the award winning YOUTHpreneur’s Biz Kit – and give them the gift of a life lesson! Entrepreneurial spirit has no age barrier to entry.

4. Provide Holiday Cheer for a Child in Need Can you imagine what would happen if every family (who was able) provided a wonderful holiday experience for just one child in need?

Talk with your children about kids whose parents are suffering hard times. There are programs on every corner empowering you to help others, including Angel Tree, providing gifts for children whose parents are in prison. Share with your children the various ways to give and let them decide how they want to help. They can even search their own closets for clothes and toys that can be given to children less fortunate.

5. Start a Savings Fund for Next year’s Gifts While it’s fresh on your mind, conduct a family meeting to plan a savings strategy for next year’s holiday season.

Review how much you spent this year, and devise a plan to create a special fund for the following year. Visit your local personal banker together, and explore holiday savings account options. I am repeating myself – sound personal financial skills are first taught at home. Prepare your children now, so they anticipate and guard against the trappings of overindulgence and over-spending during the holidays in years to come. Set your children and family up for a lifetime of New Years spent looking to the year ahead, rather than worrying about paying for the holidays just past.

From all of us at Pay your Family First, we wish you a peaceful, restful, meaningful Holiday Season!

Takin’ it To the Streets: Talking to your Kids about Occupy Wall Street in the era of “Clicktivism”

Takin’ it To the Streets: Talking to your Kids about Occupy Wall Street in the era of “Clicktivism”

By: Sharon Lechter

Shaking Things Up. This is what the Occupy Wall Street (OWS) movement is really about, after all – shaking things up. And this is activism at the dawn of the social media revolution. Making your voice heard doesn’t always take the shape of a swelling procession, or require yelling from the streets. Just click, “Share” – and you’ve got yourself a grassroots movement.

For those of you old enough to remember the social and political unrest of the ‘60’s and 70’s, you may think of the occupiers, “been there, done that.” What’s different this time? Just who is taking to the streets, and what is the message?

The message isn’t exactly a cohesive one, but that could work to the movement’s advantage in tapping into the masses. The demographics appear to cross cultural, racial, gender and economic platforms. Different people have highly personal reasons for their angst toward the financial sector, and all things corporate.

Now, the movement that started in mid-September has gone both viral and global. It is democracy in action, and for that reason, warrants our attention. And we can be sure in today’s high information access world, our children have taken notice. How can we guide them in understanding and forming their own opinion on what is happening with OWS?

Get the Facts

As always, the buyer – in this case, the media consumer and general public – should beware. Investigate before you click, “Like” on FaceBook. Read. Ask questions; strike up a conversation with your neighbor before you paint a placard – or dismiss the movement altogether.

Most importantly of all, I say, we’re called to teach our children. They should have a healthy understanding of how our economy works, and become empowered to make an impact if they choose. This means talking to them about what we are up to, and connecting them to credible information. Then, we can inspire them to form their own questions and perspectives.

If you’ve been sitting on the sidelines and are not sure how to get the conversation started, here are a few facts:

Origins: Launched on September 17, 2011, by members of Adbusters, a collection of artists, entrepreneurs and activists, OWS spearheaded a series of demonstrations based in Zuccotti Park near the Wall Street Financial District in New York City.

Impetus: According to AdBusters this movement was inspired by the Egyptian Tahrir Square and other uprisings; their message protests social and economic inequality, greed & consumerism, corporate influence in politics, and the power of special interests and lobbyists.

Going Viral: Social media has played a significant role by spreading the message via Facebook and Twitter, inviting demonstrators to launch camps across the nation – and the globe – in cities including Phoenix, Oakland, Detroit, Venice, Tokyo, Paris and dozens more.

What’s your take? Are the “occupiers” barking up the wrong tree? Is their anger displaced? Is the economic crisis a failure of the “free market” system, or, a product of excess government regulation?

Occupy Main Street: High Finance at the Kitchen Table

Whatever your take, the spotlight on OWS highlights the great fear and angst the current economic turmoil has created. The movement presents an opportunity to talk to our children about the economy, and our own family’s finances. Ask children what they’ve heard in the media and at school. Scan print and on-line publications, showcasing the varied outlets that present the information to the public – and start a conversation about what they think of the movement and how people can empower themselves in today’s economy. Talk about your job or business, and how understanding the basics of personal finance and entrepreneurship can create opportunities in the face of tough economic times.

As busy families – you may not have the desire, time, or inclination to take to the streets or even participate with “clicktivism.” But you can inspire your children to explore and contemplate their own financial futures – right from your own kitchen table.

Want to inspire your children to tap into entrepreneurship? Check out our YOUTHpreneur BIZ kit (Moms’ Choice Award winner, 2011) at: http://www.youthpreneur.net/shop/product.php?productid=16133&cat=0&page=1&featured

The Founder of Pay Your Family First and YOUTHpreneur, Lechter has been honored to receive several awards, including the Mom’s Choice Award® for her board game, ThriveTime for Teens, and also for the YOUTHpreneur BIZkit. Most recently, she released Three Feet from Gold and Outwitting the Devil in cooperation with the Napoleon Hill Foundation. Co-author of the international best selling book, Rich Dad Poor Dad, Lechter continues to travel the globe empowering others to achieve prosperity. Visit Sharon Lechter online at http://www.sharonlechter.com

The Debit Card Debacle: A Teachable Moment for Family Financiers

What can $5 buy you these days? In Bank of America’s case, a perfect storm.

The backlash that ensued was fast and furious when BOA – the nation’s largest bank – announced the new $5 monthly fee on debit card customers. Whatever your opinions, I’m encouraged by at least one unintended consequence – we’re all talking about banking fees. Keep talking, and – well, you know what my advice is. Educate your children, too!

Surely BOA didn’t anticipate the fury this new policy would incite. The public outcry seemed a “boiling over” – the cauldron, of course, our nation’s struggles – a stagnant economy, high unemployment and distrust toward all things corporate.

Of course, there are at least two sides to every story.

So let’s stand back for just a moment and consider the broader picture, then make an application to our own personal financial goals. How many people honestly say they understand each and every fee their banks excise? How have recent legislative changes impacted financial institutions such as Bank of America? Is it fair for banks to charge fees for debit, checking and other ancillary services?

To get some perspective, consider the following events that led to this moment:

–Bank of America received $45 billion in “bailout” money in 2008 and 2009, as did Citigroup Inc., the most of any bank. (Bank of America repaid the money in late 2009.)

–The Wall Street Reform and Consumer Protection Act was signed into law in 2010 and took effect this October, 2011, imposing a limit on what banks can charge retailers for debit card transaction. (24-cents each)

–Bank of America was the first to take the plunge, excising fees that will affect basic checking accounts, and a monthly $5 charge that applies to purchases made with debit cards. ATM withdrawals, online bill pay and transfers made using cell phones are exempt.

You can read the scores of articles and opinions volleying blame for the response to Bank of America’s decision. Were the fees designed to make up for the loss of BOA’s projected revenue by passing the cost on to consumers? Did retailers pass their savings on to the consumer?

Do Americans simply feel entitled to free services from banks that secure, protect and invest our wealth? Or do increased regulations mean the consumer is on the hook to pay the piper? What are your thoughts as to what’s fair?

Whatever your answer, I believe it is incumbent upon the consumer to take a proactive role in negotiating the fees imposed by financial institutions. Choose wisely. You are the customer, so exercise your buying power. A few tips:

–Read the Fine Print. When you open a new account, take the time to read the terms. Investigate. Does the bank charge fees for basic checking and savings accounts? To use debit cards? Negotiate. Ask if the bank is willing to waive the fees.

–Negotiate a better deal. If you’re a current customer and aren’t certain what kinds of fees you’re already paying, get in front of a personal banker. If you aren’t taking advantage of banking online, ask for help navigating the system. If you’re a long-time customer, they won’t want to lose your business. ASK if they will consider waiving fees.

–Exercise the “Power of Walking Away.” Compare fees and services offered by the many banks competing for your business. Don’t just accept what they offer without a willingness to walk across the street to do business with a bank who that matches your criteria.

–Educate your Children. We have to teach our children to engage in managing their finances now, so they make wise choices for themselves in the future. Take them with you when you visit the bank. Open a savings account on their behalf if you haven’t already, and encourage them to ask, “are there any fees for doing business with your bank?”

Banks big and small won’t survive without your money. Take advantage of the storm, and make certain the waves roll in your direction.

Sharon Lechter is an entrepreneur, author, philanthropist, educator, international speaker, licensed CPA and mother. She has been a pioneer in developing new technologies, programs and products to bring education into children’s lives in ways that are innovative, challenging and fun, and remains committed to education – particularly financial literacy. Co-author of the bestselling book, Think and Grow Rich-Three Feet From Gold with the Napoleon Hill Foundation, Rich Dad Poor Dad and 14 other books in the Rich Dad series, Sharon’s most recent book project is Outwitting the Devil by Napoleon Hill- a manuscript hidden for over 70 years- annotated and updated by Lechter for the modern reader.

She is the founder of Pay Your Family First, a company dedicated to empowering children and families to build prosperous futures through financial literacy education. With innovative, thoughtful and easy-to-understand programs and products, such as the ThriveTime for Teens board game and YOUTHpreneur entrepreneurial programs, Pay Your Family First teaches the practical skills that will give a new generation the self-assurance to become masters, instead of slaves, to their money.

Sharon served as a member of the first President’s Advisory Council on Financial Literacy, a national spokesperson for the National CPAs Commission on Financial Literacy, and an instructor for Thunderbird School of Global Management’s Project Artemis.

She is also a member of the National boards of Childhelp, Women Presidents’ Organization, and EmpowHer. For more information visit https://www.sharonlechter.com and https://www.payyourfamilyfirst.com.

Financial Education: Teaching our Chicks to Create their own Nest Eggs

Financial Education: Teaching our Chicks to Create their own Nest Eggs

By: Sharon Lechter

As dedicated parents, we invest much time readying our children to leave the nest and fly out into the wide-open spaces. Why wouldn’t we? Peaceful Saturday mornings sound pretty appealing after years spent cheering on the sidelines. So, we encourage our chicks to head for college, make a living and leave us to enjoy our empty nest. (Sort of!)

But what good is higher education if our children can’t properly steward, save and invest the money we’ve taught them to earn?

It’s why I’m a proponent of financial education – at public schools and universities, yes. But most importantly, financial literacy begins at home. Under your capable wing, you can create opportunities for your children to earn and manage money that fosters the skills they need in the future. Set the stage now, so they can make minor mistakes at home before they incur the real consequences of epic debt later.

Think about it – what did your own parents teach you about managing finances? Take time to develop some personal goals in educating your children about personal finance. Write them down, and make priorities. If you’re just starting out, try implementing the following:

Visit your bank (in person, and on-line) and ask for any financial literacy tools for children. Open a savings account on their behalf.
Invite your children to associate money with work. If your family offers an allowance, invite them to do extra chores for extra funds.
Check out my ThriveTime board game. Play it with your teenagers, and ask them to make a list of their own financial goals. Keep the conversation going. Talk about every purchase you make as a family – how you paid for it, and how the cost impacts your own budget.

If you yourself have always struggled managing finances, don’t worry. Make a vow to learn right alongside your children! Tune in to my blog each week for news, tips and encouragement.

Together, we’ll make certain your family’s prepared to leave your nest and build a secure one of their own.

Yours in Empowered Financial Freedom,

Sharon Lechter

Sharon Lechter Named Stevies Finalist Award

Stevie Award Winners to Be Announced in New York on November 11, 2011

Scottsdale, AZ, November 1, 2011: Sharon Lechter, best selling author and financial literacy expert was named a Finalist in the Lifetime Achievement category in the 8th annual Stevie Awards for Women in Business. Founder of Pay Your Family First, also a finalist for a Best Company category, Lechter continues to innovate new ways for families to teach financial responsibility globally.

The Stevie Awards for Women in Business honor women executives, entrepreneurs, and the companies they run –worldwide. The Stevie Awards have been hailed as the world’s premier business awards.

“I’m honored to stand alongside so many accomplished women nominated for this prestigious award. I hope that this honor sheds light on the importance of financial education as we continue our work to empower families and to inspire children to create financial independence,” said Lechter.

Nicknamed the Stevies for the Greek word “crowned,” winners will be announced during a gala event at the Marriott Marquis Hotel in New York on Friday, November 11. Nominated women executives and entrepreneurs from the U.S.A and several other countries are expected to attend. The presentations will be broadcast live on radio in the U.S.A. by the Business TalkRadio Network.

More than 1,300 entries – a record for the competition – were submitted this year for consideration in 75 categories, including Best Executive, Best Entrepreneur, Women Helping Women, and Communications Campaign of the Year. Sharon Lechter is a Finalist in the Lifetime Achievement category.

Best selling author, entrepreneur, international speaker, CPA, philanthropist and proud mother and grandmother, Sharon Lechter passionately promotes financial literacy for families. A national spokesperson for the AICPA, Lechter also was honored to serve as a member of the first President’s Advisory Council on Financial Literacy.

Lechter has received a 2010 Mom’s Choice Gold Award® for her board game, ThriveTime for Teens, as well as a Gold award in 2011 for the YOUTHpreneur BIZkit. Pay Your Family First resources have also been awarded a Dr. Toy award, WTS Toy Review’s 5 Star rating as well as Creative Child Magazine’s 2010 Game of The Year for ThriveTime for Teens.

Most recently, she published, Three Feet from Gold and Outwitting the Devil, in cooperation with the Napoleon Hill Foundation. Co-author of the international best selling book, Rich Dad, Poor Dad, Lechter continues to travel the globe empowering others to achieve prosperity.

For further information about Sharon Lechter, visit her online at http://www.sharonlechter.com/. To explore Lechter’s games and tools for youth, visit http://www.payyourfamilyfirst.com/.

Details about the Stevie Awards for Women in Business and the list of Finalists in all categories are available at www.stevieawards.com/women.

About The Stevie Awards Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, the Stevie Awards for Women in Business, and the Stevie Awards for Sales & Customer Service. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about the Stevie Awards at www.stevieawards.com.

Sponsors and supporters of the 8th annual Stevie Awards for Women in Business (as of October 12) include the Business TalkRadio Network, Coloredge, Infogroup, KeyBank | Key4Women, Melilea International Group of Companies, SDL, and Smart Reader Worldwide.

Pay Your Family First

Pay Your Family First is more than just my financial literacy company, it is a bedrock principle that successful, life-long money management begins at home. Before you can truly invest in your future goals, you have to invest in yourself. The biggest investment you can give your kids and yourself is an understanding of money and how to escape the rat race. Learn to make your money work for you, not the other way around! Empowering kids and families with the confidence to understand and tackle the complexities of fiscal responsibility creates strong communities and a wealthier future for all of us. That is what Pay Your Family First is all about and that is exactly what you need to do to help propel financial literacy in this country. Empower success in your family’s life!Here are the staggering statistics behind the lack of financial education in this country:

Just 26% of teens understand credit card fees
The average teen thinks that he/she will earn an annual salary of $145,000
76% don’t know if using a check-cashing service is a good choice or a bad one
Only 34% can balance a checkbook
62% of 18- to 24-year-olds are saying very little or nothing at all
32% of college students are “not at all” or “not very well” prepared to manage their finances

It is our responsibility to help teach our kids through experiential learning tools and to empower the entrepreneurs of tomorrow. Check out some more of the ways we’re going just that at Pay Your Family First. Join us and help create a better financial future for your kids and the world.