I want her.

Sophia I first discovered her a couple months ago. I made inquiries, but we just plain and simple don't have the money for a home study. It makes me sad, because we seem like the perfect family for her and she seems like the perfect addition to complete our family. So, if anyone has a couple thousand bucks lying around with nothing to do with it....

Kids and Money

I recently discovered a great website, MomTV. They show live shows on various topics where the moderator has a webcam and invites others to join either with webcams or with in the chat room.

I recently caught Vicki Hoefle's show, "Your Family, Your Solutions." Vicki is a mom to 5 kids. Some are out of the house and others are in high school. On July 14, she had an amazing show on how to teach your children about money. I would encourage you to watch it, but it seems they have been having techincal difficulties with recording that particular night's show.

Here are the main points:

-Start giving your kids money as soon as they stop putting it in the mouths (age 3ish).
-Give the allowance as $1 per year of life. 3 year olds get $3 per week, 4 year olds get $4 per week. This will eliminate the "Please buy it for me mommy!" arguments while you're shopping.
-Allow them to save some, spend some, and give some away.
-Don't withhold due to behavior or chores. Always give it to them so they can learn how to manage it.
-Watch your child squander it the first several weeks. In time he/she will learn that money has power and if it is saved it will go further.
-Don't hold their money for them. Make them responsible. If they leave it somewhere, put it in a vacation jar for the family. This teaches responsibility.
-Make a family rule that for every penny spent on candy/soda, a penny must be put aside for the dentist because mom and dad don't pay for cavities.
-When your child is old enough to handle their money well, get them an ATM card. (The bank will say they don't do it for kids, but they will if you press them.) This starts teaching them about credit without causing damage. (After all, they watch you whip out the debit card all the time!)
-When your child hits age 12, cut allowance in half. Make them earn the other half each week. This teaches work ethic.
-When your child reaches age 14, cut allowance completely. Now it is time for them to seek out ways to earn their own income.
-For children who have expensive tastes in clothing, tell them what the family contribution will be. Anything above that will be up to them to cover. Ex: Our family offers $30 toward sneakers. If you want something more expensive than that, you can cover the extra cost.
-Tell your children early on that you do not lend money to people you love as it causes problems. Teaching this to your child at age 3, 4, and 5 will prevent them from asking for large sums of money when they are older. They know the family rule.

There are so many other gems in this webscast that I have not captured here and Vicki does a much better job at explaining how this works. She also gives great examples of exactly what to say to your child to help them learn about managing the money they are given.

While I don't always have the same opinions and beliefs as Vicki, I love her idea of teaching kids about money. We are still a bit off from that with String Bean, but I'm seriously considering implementing this method in the future.

Get Ready for the Holiday Rush

Don't forget to enter our giveaway which ends 11/30 at noon! As of this post, we have about 50 entries!!

If you are like me, you aren't made of money. If you are made of money, send me some or we can't be friends anymore.

So, if you aren't made of money, and you're still reading this, I urge you to get going on your Christmas shopping NOW! I've been watching the news and the latest report is that retailers are offering deals usually reserved for after Thanksgiving now. Also, stores are bracing for smaller than usual sales, so their inventory is low. Things like electronics and toys are expected to be sold-out earlier than usual which means finding that perfect gift may be more difficult to find this year if you wait.

Here are some tips for Christmas shopping in 2008:

1. If you don't already have a budget, set one. Remember it is not the amount of money spent, but the thought that goes into the gift that really counts. A gift that cost $20 can have the same impact as a gift that cost $100 if that $20 gift really means something to the recipient. Demonstrate to your loved ones that you really know them by giving a gift that will be treasured by them.
2. Spread out your shopping over the season instead of doing all your shopping at once. This tip will help you with your cash flow. Every pay period, I set aside some money to go shopping with. This year, I have 12 people I must shop for. I'm doing about 3 of them on every pay period so I can avoid using the credit cards.
3. Make a list and check it often! If you can plan out what you're getting for each person on your list, you can watch the sales and purchase gifts when they go on sale. Remember a lot of retailers are giving out coupons this year. The jackpot is purchasing that gift when you have both a sale and a coupon. This requires some planning, but will really save you a lot of money in the end.
4. Skip the card with the gift. Make a homemade card or just add a "to/from" tag instead. This could be a huge savings for your family. Line Hallmark's pockets on other holidays!
   
5. Consider gifts that last a lifetime. Last year, our daughter was 6 weeks old on Christmas Day. What do you get a 6 week old? Instead of getting her a toy she'd never remember, we purchased her a precious gemstone. This is a gift that will last a lifetime for her; however, this was a lot more expensive than a normal budgeted gift. This year, since she's just 1 and probably will not remember what we got her, we are getting her a donation to her college fund. This is a great gift for little ones who will outgrow those clothes or toys you're tempted to give them.
6. Don't forget charity. Keep room in your budget for charity this year. With the economic downturn, many charities are having to cut back this holiday season. Since many charities help those who can't afford Christmas this year, consider doing your part to spread Christmas cheer. Some great Charities that you can give to are: Toys for Tots, the Salvation Army, and your local food pantry or church. This could be a great new Christmas tradition for your family.
   

Got great tips for Christmas shopping this season? Let us hear them!

A Historical Day

For my birthday this year, my sister sent me a book. It is a book about things that happened in history on your birthday. I found this entry to be intersting:

October 13, 1912
To increase the population, the government of Australia announces it will pay a $25 bonus to couples who are citizens and have a baby.

This is an interesting concept. I wonder what would happen if something similar happened in America today. How much is that same $25 worth today? I did a quick Google search and came up with this. According to measuringworth.com,

Current data is only available till 2007. In 2007, $25.00 from 1912 is worth:

	$551.44	using the Consumer Price Index
	$409.38	using the GDP deflator
	$1,155.96	using the value of consumer bundle *
	$2,390.35	using the unskilled wage *
	$2,913.97	using the nominal GDP per capita
	$9,233.48	using the relative share of GDP
* The 2007 data for unskilled wage and consumer bundle are estimated and will be adjusted when official data become available.

I had a baby last year. I could have used that money!