cheryl tanenbaum

ATM/Debit Card Safety During the Holidays and Throughout the Year

The holiday season is looming and so are the identity thieves!

With the significant rise of Internet shopping and the use of debit cards, it’s never been easier to take advantage of someone’s personal, digital information.

The holidays can be a hectic time, oftentimes leaving us distracted, providing the perfect opportunity for thieves to slip in, steal our information and slip out without being noticed.

While credit cards present the same threat, debit card theft is much more problematic for the victim.

Under the federal Fair Credit Billing Act, if a credit card user spots fraudulent charges on his/her bill, he/she can simply decline the charges. In addition, with a credit card, the victim’s liability is limited to $50 if the card issuer is notified within 60 days after the statement listing the transaction is mailed/emailed.

There’s no such protection with a debit card. With a debit card, the money is drawn directly out of the cardholder’s checking account and the $50 liability limit expires two days after the fraud and then your liability is up to $500. Due to this, even with clear-cut cases of fraud, debit card theft can cause significant hardship, often wreaking havoc on one’s finances.

Debit cards are a much bigger target for thieves because they are typically tied to someone’s bank account. While getting money from an ATM or getting cash back requires a PIN, thieves are getting more and more sophisticated, as evidenced by skimming (tampering with checkout line PIN pads to capture information) and security breaches by several major retailers in recent years.

While there is no complete safeguard against being the victim of debit card fraud, it’s important to keep in mind that most criminals, especially thieves, are opportunists – they tend to prey on those who will be the easiest, lowest-risk victims. With this said, here are a few tips to help protect yourself from identity theft this holiday season as well as throughout the year:

1. Be alert and aware of your surroundings – use ATMs in well-lit and unobstructed areas, especially at night, and in clear view of pedestrians and vehicle traffic. Minimize the time spent at the ATM, and, if you have to get out of your car to use the ATM, park your car as close to the ATM as possible.

2. Safeguard your account number and PIN. Whether you are at the ATM or the checkout line, use your body or free hand to shield the keypad entry. Memorize your PIN, and never give your number to someone else. In addition, don’t use easily recognized numbers as your PIN (e.g. birthdate, anniversary, house number, phone number, etc.), and never write your PIN on your card or anything that is kept with your card.

3. Take your receipt – always keep your receipts for your records – never leave them behind.

4. Watch for skimmers – be aware of cameras and/or skimming devices at ATMs or checkout line PIN pads. If the machine appears to have been tampered with, re-manufactured or has any loose parts or wires, don’t use the machine. Thieves can also skim your information from your debit/credit cards while they’re still in your wallet. Minimize this threat by taking only the cards you plan to use, and by keeping them in your front pocket.

5. Use a pre-paid debit card. A pre-paid debit card is very different from a bank account debit card because it is not linked to your checking account. With a pre-paid debit card, you pay in advance by loading funds, typically by transferring money from your checking account, onto the card. If this card is compromised, only the funds that have been loaded onto the card are at risk, not your entire checking account. This card also helps avoid overspending and overdrafts.

6. Use a credit card for online purchases, especially when dealing with an unfamiliar site.

7. Check your account frequently – contact the bank if you suspect fraud or find irregularities in your account/statement. Remember that the extent of your liability in fraudulent losses depend on how quickly you report the unauthorized activity/transactions.

8. Report lost or stolen cards immediately – notify the bank immediately if your card is lost or stolen and then follow-up with the bank the next day, first thing in the morning, to determine if any transactions have occurred.

These tips are just a few of the many things you can do to keep safe and protect yourself from identity theft during the holiday season…as well as all through the year. Always keep in mind, thieves are opportunists, and the more difficult you make it for them, the less likely they will bother with you.

Life in the Fast Lane – Fit Tips for the Office

Our workdays are no longer 9 to 5. Today’s technology ensures we are connected wherever we go. Although our work hours continue to stretch, for most of us, it’s the only thing that gets any stretching done.

According to a recent study, most people sit for more than nine hours a day. Due to this, lifestyle ailments and a sense of general discontent with our lives are on the rise. Nervous breakdowns, Carpal Tunnel Syndrome and Cervical Spondylitis are just a few of the medical issues that plague more and more corporate employees today. The old adage, “All work and no play, makes Jack a dull boy,” couldn’t be more applicable to today’s working culture.

With the amount of time we spend in the office and on the road, it becomes difficult to work exercise into our already jam-packed schedules. However, for our physical and mental well-being, we must find creative ways to incorporate this into our day.

We can make creative use of our sitting time, especially the time we spend in front of our desks. Although exercising while we’re sitting won’t provide us with the same health benefits as a good workout at the gym, according to health experts, it can help strengthen and tone muscles, and give us the well-deserved and much-needed break from work.

Here are a few suggestions:

Stretching – Spending long periods of time slouching over our computers/laptops does more damage than we think. We strain our eyes and our neck is bent at an unnatural position causing bad posture, which can lead to serious problems in some cases. These extended periods of time on our computers/laptops can also lead to Carpal Tunnel Syndrome, an extremely painful condition of the wrist.

Something as simple as standing up and stretching can ward off these afflictions. After every hour of continuous sitting, take a break and stand up from your seat. Intertwine your fingers and stretch with your hands towards the ceiling. Reach higher and higher until you are standing on your toes.

Come back to normal position and slowly rotate your neck, forward, backward and side-to-side, and then roll your shoulders forward and backward, stretching the shoulder muscles. Now work the wrists by slowly rotating them in a clockwise and counterclockwise direction. While doing this, close your eyes and give them their due rest.

Getting the most out of your chair –

Leg straightener – While sitting forward in your chair, away from the backrest, lift one leg at a time about 3 inches off the ground. Tighten your leg muscles for about 10 seconds. Release them and repeat. From this position, you can also rotate your feet in a clockwise and counterclockwise direction.

Pelvic Tilt – With your hands on your desk, sit in the middle of your chair with your feet flat on the floor. Arch your lower back so your butt feels like its sticking out. Make your abs do the work not your legs. Then, slowly pull your hips underneath your stomach, bringing your butt back underneath you, like you’re doing a crunch. Hold each of these positions for about four seconds. Repeat 10 to 20 times.

Arm Circles – Sit straight up in your chair, feet flat on the floor, and lift your arms out to your sides, parallel to the floor. Extend your fingers and make 20 small, tight circles in each direction. Then, make 20 large, open circles in each direction.

Do these exercises a few times a day.

Walk – It’s as easy as getting up out of your chair and moving. If you work in a multi-story building, walk up and down the stairs a few times during your workday. If your office is located above the ground floor, routinely take the stairs instead of the elevator when you come to work. If you need to discuss something with a colleague, walk over to him or her and chat in person instead of picking up the phone.

When you’re on the phone, stand in place and march or if you are on your cell, walk around the office while you chat.

Graze – Keep a ready stock of healthy munchies in your desk for in-between-meal snacks. A handful of nuts, baked snacks or fruits are great nutritious options. These snacks will keep your energy levels high as well as ward off the temptation to overeat at mealtime.

Also make sure to drink plenty of water (eight to ten 8-once glasses a day). Not only is water good for you, but by doing this, you will also up your daily step count due to increasing bathroom breaks.

The best cure for the body is a quiet mind. ~ Napoleon Bonaparte

Even though we try to fit more and more into our workday, including exercise, it’s vital we get 8-9 hours of sleep each night. A tired mind is an unproductive mind. We need to rest our bodies as well as our minds so we can think fresh the next day. Meditation and yoga are great options – they calm the mind and increase focus and concentration. Some people reach this same state of mind through an intensive workout. The goal in the end is to give your body and mind a pause for a while.

There are endless possibilities and no excuses. With a little creativity and dedication to our health, we can make it possible to incorporate fitness into our busy days with office exercise.

Smart, Smartphone Security

Smartphones today are capable of doing many things to make our lives easier… except, at least for now, making dinner. However, with its growing repertoire of capabilities, also come new security risks.

As we continue to use our smartphones for a much wider range of activities – social networking, online banking and shopping, emailing and surfing the web – we need to take sensible precautions to ensure that our phones and our information are safe.

Here are some security tips to protect your phone and your information from malware attacks and cybercriminals.

1. Keep your smartphone locked – Create a PIN or a PASSWORD and always have your phone’s lock screen on.

2. Don’t modify your smartphone’s security settings – Although it may be tempting to alter some of your security settings in order to access specific apps or services, don’t do it!

3. Protect your phone and your data – Today’s smartphones are powerful computers, and, like any laptop, PC, or Mac, should be protected by a reputable anti-malware program. You should also make sure your antivirus databases are regularly updated.

4. Backup your data – You should continually backup the data stored on your smartphone – contacts, important documents, photos, etc. These files can be stored on your computer, a storage card, or the cloud. By doing this, you can easily restore the information on your phone in the event your phone is lost, stolen or otherwise erased.

5. Only install trusted apps – Bad apps are loaded with malware that can infect your smartphone with viruses and steal your information. Before downloading an app, do some research to ensure the app is legitimate and safe. Also be cautious about granting applications access to your personal information contained on your phone. Make sure to check the apps privacy settings before installing it.

6. Update your smartphone’s software – Keep your smartphone’s operating system software up-to-date by accepting updates and enabling automatic updates when prompted by your service provider, operating system provider, device manufacturer or application provider.

7. Stay safe on public Wi-Fi networks – Even though free public Wi-Fi is a cost-effective way to surf the web on your smartphone (it doesn’t eat into your data plan), it can be dangerous. Hackers love to infiltrate these networks to snoop and steal valuable information. So, be safe, and do your online banking and shopping at home or use a mobile wireless connection.

8. Install security apps that enable remote location and wiping – Most smartphones today, either by default or as an app, have the ability to remotely locate and erase all data stored on your phone, even if the GPS is disabled. Visit for a full list of anti-theft protection apps.

9. Wipe your old smartphone before donating, selling or recycling – Your smartphone contains your personal data. So, make sure to protect your privacy by completely erasing the data off your phone and resetting the phone to its original factory settings before donating, selling or recycling. Visit for step-by-step instructions.

10. Report a stolen smartphone immediately – If your phone is stolen, you should immediately report the theft to your local law enforcement authorities and your wireless provider. By doing this, all of the major wireless service providers will be notified that the phone has been stolen and will not re-activate the phone without your permission.

11. Turn off your Bluetooth when you’re not using it – Switching off your Bluetooth connection reduces your smartphone’s vulnerability to cyber-attacks as well as the drain on its battery.

For more information on smartphone security, visit

Back-to-School Shopping on a Budget

It’s hard to believe summer vacation is coming to a close and the beginning of the new school year is just around the bend.

Some kids dread the end of summer vacation while others happily anticipate the first day of school. Both, however, want to start the new school year looking their best and armed with the required school supplies. And this can put additional financial strain on many families’ already stressed-out wallets.

So, here are a few tips to keep your kids happy while saving your wallet from a complete meltdown.

1. Plan – Before you buy the first pair of jeans or notebook, make a list of what you need and estimate how much you can afford to spend overall – clothes and supplies. Make a realistic budget and explain to your children that you will only buy what’s on the list and within your budget.
2. Recycle from last year – Check your children’s closets for clothes they can still wear or their younger siblings can wear. In addition, have your kids help find school supplies around the house that were left over from last year or can be re-used this year, such as markers, pencils and binders.
3. Watch for promotions, in-store and online coupons – Comparison shop. Many stores will match a competitor’s ad or coupon. If you’re purchasing online, make sure to check the cost of shipping and include that in your budget. Look for online retailers that offer free back-to-school shipping.
4. Postpone some purchases – Don’t buy everything in one fell swoop. Spread out your purchases. Retailers typically offer sweeter deals after the back-to-school rush. Review your children’s school supply list – if there are some items on the list that won’t be needed right away, hold off buying them now while keeping your eyes peeled for sales.
5. Be frugal – Consider thrift stores, outlet malls, and discount and consignment stores to get better deals on new and gently used clothing. If school uniforms are required, find out if the school has a trading or discount program.
6. Get Creative – If you’re not planning to hand your child’s clothes down to younger siblings, sell them (gently used and in good condition) and use the money to purchase back-to-school clothes or supplies. Consider doing a clothing swap with your friends who have children.
7. Get family members in on the act – When grandparents and other family members ask what they can buy your kids for their birthdays or other holidays, encourage them to buy school clothing or clothing gift cards.
8. Involve your kids – Back-to-school shopping is a great way to teach your children about budgeting and money management. Have them make their own back-to-school lists and put them in charge of finding coupons or the best deals on these items to stay on budget. Help your kids to understand the difference between wants and needs.

With these tips in mind, make this practical back-to-school approach an annual tradition. Shop wisely and find novel ways to stretch your dollar. Above all, remember that you are the parent so take control, stay on budget and don’t let your kids dictate what you buy. Teach your children to be thrifty…they’ll thank you for it later.

Get your financial ducks in a row before you go house hunting

Spring is just around the corner and many people, both the seasoned homeowner and the first-time homebuyer, will be in the market for a new home. Whether you’re upgrading, downsizing, relocating or tired of the rental scene, the sooner you get your finances and credit in shape the easier it will be to get a mortgage loan.

Here are some helpful tips to help you prepare for your future home purchase:

What’s your credit history look like?
The first thing you should be focusing on is your credit history. Do you pay your bills on time? If you are a renter, do you have a history of paying your rent on time? Most mortgage lenders today require the last 12 months of cancelled checks if you’re renting from a private individual or they will want to contact the rental agency to determine if you pay your rent on time. If you are a homeowner, the lender will be looking at your mortgage history – have you paid your mortgage payments on time?

Do you have any delinquent accounts? These are accounts that are late, charged-off, sent to collections, etc. These can seriously affect your credit score as well as your ability to obtain a mortgage. If you have any of these accounts, you should pay them off before applying for a mortgage.

Keep close tabs on your credit
It’s a different world out there today with respect to credit scores. If you have less than a 700 credit score, you can expect to pay higher fees or a sizable down payment.

If there are discrepancies, file a dispute by with the credit bureaus.

Monitor your credit score. Check for inaccuracies that can hurt your credit score and hinder your chances of getting the best mortgage deals or a mortgage at all.

Stop applying for credit a year before you apply for a mortgage and avoid large purchases until you’ve closed on your new home.

If possible pay off any balances on your credit cards and then don’t use them for at least 45 days prior to applying for a loan.

Make sure to have three trade lines (e.g. credit cards, student or car loans, etc.) that have been open, active and in good standing for at least a year.

Figure out what you can afford
The last thing you want is too much house for your pocketbook. The home of your dreams will quickly become your worst nightmare.

There are several rules of thumb that can help you get a grasp on how much house you can afford. Typically with FHA financing, your home payment can’t exceed 31 percent of your monthly income…with some mitigating factors this percentage can be higher. If you are obtaining a conventional mortgage, a safe rule of thumb is that your home expenses shouldn’t exceed 28 percent of your gross monthly income.

Save for your down payment and closing costs
Depending on your credit situation and specific financing, you will need to save for a down payment. A bigger down payment doesn’t guarantee loan approval but it sure helps. And don’t forget the closing costs associated with a home purchase and the mortgage.

Your savings should reflect a figure that is over and above the down payment and closing costs. Lenders want to know that you’re not living hand to mouth. Three to five months’ worth of mortgage payments in savings makes you a much better loan candidate.

Do your homework
Make sure you fully understand all the costs involved in homeownership. There are property taxes, insurance and in some cases homeowner’s fees. If you are upgrading, most likely the utility bills associated with your new home are higher. Also keep in mind that the cost of repairs, maintenance and decorating may be higher than you think.

Get pre-approved
If you’re serious about purchasing a new home, get your financing in place before you walk through the first door. Get all your paperwork together and meet with a mortgage lender.

Find a house that you like
Purchase a house that you like and will fit your needs for several years to come.

Gone are the days of quick sales and depending on how much you put down and all the extraneous costs involved in a home purchase, not to the mention the costs involved in selling your current home and relocating, short-term ownership can be quite expensive.

Make 2015 the year of organization

Happy 2015! It’s hard to believe another year is behind us. If you’re like most people, you’ve either vigorously begun attacking your New Year’s resolution list or at least contemplated making one.

While losing weight and getting your financial house in order are always popular to-dos, another worthy candidate is getting your life organized.

Keep in mind, being organized is not an inborn or inherited trait. It’s a learned behavior by cultivating healthy habits and maintaining those habits to keep your life in order.

If being organized is a priority this year, remember, Rome wasn’t built in a day. Don’t set yourself up for failure by trying to overhaul your life in one month. It will be too overwhelming. You will have a greater opportunity for success if you have an overall plan or goal and by starting with a few key steps or habits to help you get organized over the year, rather than trying to get it done in one fell swoop.

Here are some suggestions:

1. Write things down – whether you are trying to remember birthdays, doctor’s appointments or items on your grocery list, make it permanent. Put pen to paper or use the calendar on your computer or smart phone.

2. Make schedules and deadlines – being organized goes hand-in-hand with using your time efficiently. Don’t waste time. Make and keep schedules for the day and week and stick to them.

3. Don’t procrastinate – the longer you wait to start something the more difficult it is to get it done. If one of your goals is to have a less stressful life, getting organized is the answer. Checking to-dos off your list will make you a happier and healthier person.

4. Find a home for everything – keeping your life organized begins with keeping your things in their proper places. Keep order by storing things properly and labeling the storage spaces. Put things that you use on a regular basis in easy-to-access storage spaces. Don’t let these spaces get cluttered and never label a storage space “miscellaneous.”

5. Declutter and weed out regularly – find time each week, possibly on cleaning day, to reorganize and get rid of things you don’t need or want. Less stuff means less clutter. Have a yard sale, donate to a thrift shop, take a trip to the recycling center or sell unwanted items on one of the popular resale websites.

6. Delegate responsibilities – don’t try to do everything yourself. Look at your to-do list (remember step one, write things down) and find tasks that you can remove and give to someone else. By doing this, you will eliminate the stress that is caused by thinking that the whole world rests on your shoulders.

7. Work hard – again, Rome wasn’t built in a day. Getting your currently disorganized world organized is going to take some effort on your part.

Getting and staying organized isn’t a walk in the park. It takes a plan, hard work and commitment. But, the rewards of a less stressful, clutter-free life are well worth the effort.

Pulling in the reigns on holiday stress

I recently read somewhere that the average person spends 42 hours a year on holiday activities. This involves shopping, wrapping, cooking/baking, attending holiday parties, traveling from one place to another and returning gifts.

Yikes! Just typing this makes me stressed out! And most often, these extra activities are crammed into our already busy schedules.

A recent survey conducted by Mental Health America concluded that the top two sources of holiday stress involve money concerns and chaotic schedules. And typically, women reported feeling more stress than men, and parents in general feel the most stressed.

With this in mind, here are some tips for reducing and controlling holiday stress and making this holiday a wonderful memory for you and your family:

1. Be realistic – You’re not Martha Stewart and you can’t do everything portrayed on TV or in your favorite magazine. If you try to cram everything in trying to make it the perfect, yet unrealistic holiday season, you and your family will be too exhausted to enjoy it. Also be realistic about your expectations of family and friends. No one is perfect, and the holidays don’t magically make him or her so.

2. Prioritize – As a family decide which activities are most important to you and which ones can be eliminated. Change things up if what you’ve always done is no longer fun and enjoyable or your children have just outgrown it.

3. Create new traditions – Choose new activities that focus on the true meaning of the holiday and not all the commercialization and hoopla.

4. Maintain a routine – During this crazy time, changing the family routine can be stressful in itself, especially to children. Try to stick to regular mealtimes and bedtime. If there’s a big activity, make sure your child is well rested and fed. There’s nothing more stressful for a parent than a hungry and exhausted child.

5. Ask for help – Don’t try to do it all yourself. Ask for assistance around the house, delegating tasks among adults and older children. Even younger children can be helpful. Let them help decorate the cookies or wrap presents. They may not be perfect but the children will keep busy and have fun in the process.

6. Less is best – Simplify the holiday season by planning easy meals for your family and friends. Suggest a potluck dinner with family and friends as opposed to doing it all yourself. Cut down on the gifts you buy every year. For most families today, making ends meet during the rest of the year is tough enough, little alone during the holiday season. Consider buying family gifts or drawing names for relatives as well as limiting the dollar amount for presents. Limit the amount of holiday cards you send –they are expensive and so are the stamps. Consider sending some electronically this year.

7. Plan fun – What do you and your family enjoy? Make plans to see your favorite Christmas play, movie or concert, drive around the neighborhood to see the holiday lights or visit a Christmas tree farm.

8. Most importantly – carve out time for yourself. During this time of year, adults find themselves committing, in many cases, over-committing themselves to others and neglecting time for themselves. Make time for yourself – reading, a bubble bath or a long walk. Make sure to get plenty of rest – even a catnap can help you rejuvenate for the evening’s party. Make alone time for you and your partner. Schedule downtime for your children to help them recuperate from all the holiday activities.

Lastly, try to roll with the punches…take things in stride. No matter how well you plan, something invariably goes awry. When all else fails…laugh…find humor in the mishaps. They make the best stories. And remember, there’s always next year.

May you and yours have a safe, blessed holiday season!

Saving For a Rainy Day

Life seldom goes as planned. So, it’s a good idea to always be prepared for the unexpected by having a solid cushion – an emergency fund. Having an emergency fund will help ward off financial disaster, such as bankruptcy.

To avoid letting the unexpected lead you to financial ruin, begin building your emergency fund by following these tips:

>Figure out how much you need – Begin with a specific goal in mind. While each person’s saving goal will be different, depending on their income and expenses, a good rule of thumb is to save four to seven month’s worth of expenses. Most financial experts recommend starting small…realistic…such as saving $1,000, and then work up from there. Remember, your emergency fund is exactly that. It’s not a stockpile of savings to fund vacations or other luxuries.

>Find a safe haven for your money – Your rainy day fund should be easily accessible, but not so easy that you’ll be tempted to make unnecessary, non-emergency withdrawals. Choose a traditional savings account or possibly a money market or even a short-term certificate of deposit. This way you’ve created a psychological barrier between your spending habits and your emergency fund as well as providing you the added benefit of earning interest and requirement of continued reinvestment.

>Treat it like a recurring bill – Once you’ve established a monthly savings goal (begin with $100 per month) make it part of your regular monthly budget. The easiest way to accomplish this is by setting up an automatic monthly transfer. Just as you would with your other recurring bills (electric bill, cable bill, etc.) ensure that your emergency money is saved each month. A good practice is to pay yourself first. Have the automatic transfer set up at the beginning of the month instead of waiting to see if you have money left over at the end of the month.

>Use your emergency fund only for emergencies – Although this seems like common sense, many people forget, especially when it comes to those one-time expenses each year. Planning is the key. When determining your monthly emergency fund savings goal, keep one-time expenses such as insurance or routine car expenses in mind. Remember, if you can foresee an expense, it’s not an emergency. One way to avoid this temptation is by making access to this money somewhat difficult. Don’t ask for a debit card and if you’re issued a checkbook, hide it.

>Slow and steady wins the race – Rome wasn’t built in a day and neither is an emergency fund. Even if you can only start out with a small amount each month, any action you take towards establishing an emergency fund is a good one. But, the key is discipline. The goal is to increase your monthly deposit whenever possible and to reach $1,000 as quickly as you can. There are many ways to help you accomplish your goal in a shorter time frame. Add your tax refund or a commission check into your account, have a yard sale, sell items you don’t need on eBay or the oldie but goodie – put your change into a savings jar each evening.

The key is to save rather than blow excess or unexpected money, planning and discipline, cutting back on the “wants” or luxuries. By doing this little by little, you’ll see your emergency savings soar!

Finance 101 – Teaching Kid’s About Money

We teach our kids many valuable lessons in their formative years – how to share, right from wrong, respect for others, etc. – but, the one lesson most parents don’t teach early enough is the value of money.

As children grow older, they eventually learn about money with or without our help. But, teaching our children about money, financial literacy, early in life sets them up for a lifelong legacy. Financial expert, author, founder of Youthpreneur, an organization the encourages an entrepreneurial spirit in children, and former member of the President’s Advisory Council on Financial Literacy says, “The more control we have over our money, the less control it will have over you.”

Lechter also explains how important it is to teach children financial literacy because they see us (parents) spend money, but they don’t understand the concept of creating it, keeping it or investing it. “Kids don’t understand the relevance of earning, saving and spending,” she notes.

However, if parents make a conscious effort to teach their kids about money, they are much more likely to value it. By giving children a financial education early, beginning as early as four years old, we can help them learn to be responsible with their cash. We will also do our children and ourselves a huge favor. We will not create and reinforce the fallacy that we are human ATMs (the ole money grows on trees misnomer), setting us both up for friction, frustration and oftentimes failure later in life.

With this said, here are a few ways to get started.

1. Make children work for their money – Most children can do some small chores as early as two years old, like putting their plates in the sink, helping you pick up their toys, etc. By the time they are about four years old, you can begin giving them a small allowance for doing these behaviors. You shouldn’t give them money for doing routine behaviors like brushing their teeth or going to bed on time. They should earn allowance for doing things that are above and beyond normal daily behaviors. Determining the amount to give them is totally up to you. Typically, the recommendation for children starting out is about $4 per week.

2. Teach children to save – Children can learn the concept of saving at a very young age. Let’s say Johnny wants a Lego set that costs $12 and they earn $4 per week doing their chores. Explain to him that it will take three weeks of saving to earn enough money to buy the Lego set. This also begins teaching basic math skills (i.e. 3 weeks X $4 = $12). When they get a little older, you can throw in the lesson about Uncle Sam, the infamous TAX MAN. But for now, keep it simple.
Note: Most young children don’t quite grasp the whole savings concept. You will need to remind them and encourage them often. One great way to begin getting this concept across is with a savings jar (make it clear so they can see the money). Each week when they get their allowance have them put the money in the jar. Tell them how much money they now have in the jar and how many more weeks they have to save to get that Lego set. When they get older, you can encourage them to start putting this money in the bank.

3. Teach children to respect property – We can teach our children a lot by encouraging them to value their own property as well as the property of others. If children grow up respecting the things around them, they will learn respect for money as well.

With a younger child, the best way to teach them this lesson is by taking away a toy or other item if they mistreat it. As children get older, it should be the, “If you break it, you buy it,” philosophy. The best way to teach a child to respect property, his or hers or someone else’s, is to make them pay for (at least part of) replacing it if they intentionally break it.

4. Set a good example – Children emulate their parents. So, if they see you saving, they will save too. Set a good example by showing them that you save for things you want too. For example, have your own money jar to save up for the family summer vacation or something as simple as the family Saturday movie theater outing.
As parents, you should also be open about finances in your household. Talk about money and your financial goals in front of your kids. You must use your common sense about this though. You don’t want to worry your children by discussing serious financial troubles in front of them. But, do talk to them about financial matters – directly and in a manner that they can easily understand.

5. Make learning about money fun – Kids will be more interested in learning about money if you make it fun. A great way to do this is to set a family savings goal for something, e.g. a family vacation or a weekend outing, and begin saving for it. Make a chart and display it somewhere the entire family can see it, like on the refrigerator or somewhere in the kitchen. As you set money aside, for example, for your family vacation fund, have the children participate by coloring in the chart or writing in the new number total of the money set aside, showing the increased savings and how much closer the family is to its goal.

As your children get older, you will need to come up with new ways to teach them about money and finances. But, by beginning early, you will make this more advanced later lesson easier, as well as helping them to avoid the pitfalls of bad financial habits.

Last-minute Ways to Save for Summer Vacation

Summer is just around the corner and most of us have begun thinking about and possibly are already planning for our summer family vacations.

In an ideal world, we’d already have a fully funded vacation savings account to pay for our annual family getaway. However, the reality is that most of us wait until the last minute to begin planning and paying for our summer vacation.

So, here are a few fast track tips to help you save for your summer trip:

1. Start with a budget – discuss and determine upfront how much you want to spend on your family vacation. Have a specific figure in mind. This should include plane tickets or gas if you’re driving, hotel prices and an estimate of cost for meals, admission tickets for theme parks, museums, etc. Then, total it all up. If this figure sends you into a coronary arrest…just kidding…then cut back until you and your bank account are comfortable. The last thing you want to do is to go into debt for a vacation. If money is tight, consider taking a couple of weekend getaways instead of one big dream trip.

2. Prioritize now – are there some items currently in your budget that you can omit or would be willing to sacrifice now for a fun vacation later? Can you downgrade a plan, such as your TV cable or satellite plan or go out to eat less? A typical family with kids younger than 6 spends an average of $240 each month on restaurant meals, according to the National Restaurant Association.

So, go through your current household expenses and cut out some nonessentials or superfluous expenses. Then take that extra money and put it away in a separate vacation savings account.

3. Have a garage sale – a garage sale is a great way to earn some vacation cash quickly. Run an ad in the local paper to attract a crowd and post easy-to-read signs around your neighborhood. Get the entire family involved in this – make this a fun family affair. Have the kids go through their rooms, toy boxes, etc. and tell them whatever proceeds are collected from their items will be put towards their souvenirs. This is also a fun spring-cleaning project. It’s a win-win.

4. Use your tax refund now – if you typically get a sizeable income tax refund from the IRS every year, you are probably having too much money withheld from your paycheck. If this is the case, fill out a new W-4 form and adjust your withholding so that it’s fairly close to what you owe each year. Then begin transferring that extra money into your dedicated vacation savings account. If you still get a refund, stash that away as well.

5. Let your credit cards help pay for your vacation – in the months prior to your vacation, use your credit cards with reward points for everything your normally pay for with cash, debit card or check. Use these accumulated points towards plane tickets, hotels, rental cars and gift cards for restaurants. But, make sure to pay off the balance on your card in full every month or you’re defeating the purpose of a debt-free vacation.

6. Get everyone involved in the saving excitement – chart your savings with a graph, much like you see with fundraisers, on a large poster board. Track your weekly and monthly progress with colorful markers. You can even reward yourself and your family for reaching certain goals, e.g. go out for ice cream when you’ve reach a savings milestone.

In a nutshell, make a realistic plan for your family summer vacation, save for your plan and make the process a fun family affair! By doing this, you will be creating special memories instead of debt.