From identifying coins to spending and saving, Finley the panda will help little ones learn all about financial concepts in an accessible way. Order your own box – Click here to learn more!

The post Local Mom Creates Little Treasurer appeared first on Cincinnati Family Magazine.

For those unfamiliar with consigning, it’s quite simple: you give a consignment shop you take your gently used items to a consignment shopt and they carefully inspect them and accept those they think are sellable. They do all of the work, including display, storage, ticketing, sales and merchandising. When your item sells, they pay you a percentage of the sale.

It’s common for you, the consignor, to receive about 40 percent of the sales price of your item. Not bad, considering all you did was bring it to the shop! A resale store will purchase items from you and offer you cash on the spot.

If you are thinking of consigning, be sure to call to find out what items stores take and if they have specific times that they accept them. Items should be freshly laundered and pressed and on hangers or folded neatly in bins. Visit the store web sites or call for their policies. Many stores that consign furniture require that you make an appointment, especially if you want to consign larger items.

For shoppers, consignment shops are a bargain hunter’s paradise. Since most stores receive new merchandise daily, it’s smart to frequent them often. And if you see something you like, grab it! You may return the next day only to find your coveted item has been snatched up by another shopper.

Consignment shopping is now more fashionable than ever, regardless of income level. As for me, the excitement of consignment shopping is still about the hunt. I love not knowing what I will discover on my next shopping excursion. I may come up empty handed or find that one item I have been searching for forever.

Selling Tips

Do make it a point, prior to your first visit, to understand the terms of the shop. It will save you time and confusion if you find out how long the items must remain in the shop, what percentage of the sale you will receive, and what happens after the consignment agreement ends.

Do make sure that your items are in excellent condition, in season, and in working order. If you are unsure about consigning a particular item, call and ask.

Do read your consignment agreement thoroughly. Many shops have markdowns throughout the consignment period. If you consign a precious item that you don’t want to sell for less than a certain amount, let the shop owner know.

Do choose a shop that is clean, organized and treats your items with care and respect. Shoppers love stores that are clean and where items are easy to find. The longer they stay in a store, the greater the odds are that they purchase your items.

Don’t become disappointed when a shop does not take all of your items. The more selective a shop owner is about inventory, the better your earning potential.

Don’t consign items that are outdated or flawed. Even if you have a highly sought after item, most shops don’t want to be known for selling less than perfect items.

Don’t consign your items in a shop that is obviously disorganized or less than clean. This leads to greater opportunity for loss and diminishes earning potential.

Don’t assume the store will call you after the consignment term ends. Most shops donate unsold items to a local charity following the agreement term. It is your duty to make a note of when the consignment period ends.

Shopping Tips

Ask for help! Since store owners have meticulously looked over all of the items that have been consigned, don’t be afraid to ask for help. They know where everything is in the store. They may also know if clothing items have been tailored or if something is a larger fit.

Check out all sizes. Especially when it comes to evening wear and tailored suits. Many people get these items altered to fit. A lot of formal evening wear is sold in large sizes because they customize the fit for each customer. Also, clothes often shrink after repeated washing and drying.

Ask about store policies: Most consignment shops have an “All Sales Are Final” policy. Look items over thoroughly and make sure all items are in working order or free from flaws before you leave the shop. When buying lighting or electronics, ask to plug it in or test the item.

Expect to see a major price difference between brands. Consignment shops should be pricing their clothing between 1/4 to 1/3 of the original retail price, taking into account condition, age, popularity of brand, etc.

Ask about sales or markdowns. Most shops have frequent markdowns in order to recycle the daily inventory that streams in. Ask the shop owner when their sales are or how often markdowns occur.

Don’t haggle over the price of an item! Haggling with a shop owner is basically telling them that they don’t know how to price and they don’t know their market. A successful consignment shop with a good reputation regularly marks down their merchandise and keeps items going in and out of their store quickly.

Bring a measuring tape with you! For large items for the home, you want to make sure the item is going to fit in your home or through doorways. Remember, once you buy it, it’s yours to keep.

Beware of knock-offs! All too often people purchase knock-offs or designer copies and these items end up in resale shops. Unless you really know your merchandise or have some proof of authenticity, buyer beware!

Kara Ferraro is a writer with two elementary aged children. She is always looking for clever, budget friendly activities to do with her family and ways to save money.

The post The Fine Art of Consignment Shopping appeared first on Cincinnati Family Magazine.

Growing up, I was blessed to have lots of family and the added benefit of those family members living close by. Somehow the dilemma of where to spend Christmas Eve and Christmas Day was always worked out by my parents and grandparents.  Their solution was to celebrate with my dad’s family on Christmas Eve one year and on Christmas Day the next, alternating with my mom’s family.  As time went by, we added more family members through marriage and birth, which meant more personalities and distances to manage. When I got married, my husband and I attempted to make everyone happy and see as many people as we could during the holidays. Invariably, by the time the new year rolled around, we were totally frazzled from celebrating Christmas no less than six times with many sets of relatives in a 10-day period.  Once we added a few of our own kids to the mix, Christmas Day got even crazier. Rather than feel like the rope in a game of human Tug-of-War, I had to come up with some quick fixes.  I hope some of my suggestions will help you and your family fully enjoy Christmas this year, as well.

1. Combine family events. Instead of running to your parents’ house and THEN to see each of your siblings separately, consider having just one shin-dig at one location when most everyone can attend. A sit-down dinner isn’t necessary. In fact, make it a potluck. My brother- and sister-in-law throw a party like this at their house every year the Friday evening before Christmas, and they even have crafts for the kids (like building a gingerbread house or painting ornaments).

2. Consider an Open House.  Choose a location (like Grandma’s house), a date and a convenient time frame (like 4 – 8 p.m.) when family members can come and go as they please without the pressure of being on time for a meal. Serve finger foods and other easy fare to make it easy on the hostess. If you don’t know when you might catch your family members, you could leave their gifts there for them – or just stay for the whole thing!

3. Attend the far-away celebrations every other year. It’s just a fact of life that people marry someone from another state or move out of town due to a job change or other circumstance. This can leave many families feeling pulled in too many directions when the holidays roll around. It can be difficult to decide how to come together.

4. Negotiate annually.  All families are different, and it can be practically impossible to please every member every year. If you all live relatively close, consider having a pow-wow in the summer to hammer out the details of time, place, gift and meal options. One year your cousin may need to leave early to spend the rest of the day with her husband’s family. Another year it may just work out best to hold the event on Christmas Eve.

5. Do drop in. Elaine St. James, author of Simplify Your Christmas: 100 Ways to Reduce the Stress and Recapture the Joy of the Holidays (Andrews McMeel Publishing), only visits her sister and her family to raise a toast but not to eat. She takes no food for the meal, no gifts, and says to her family, “We’re bringing ourselves and our best wishes for the season.”

6. Help your extended family realize that Christmas can be even nicer when spent on a day other than December 25. We get together with my grandparents a couple of weeks before or after Christmas Day, and the mood is much more relaxed. We get to take our time opening gifts while enjoying each other’s company, and we treasure that time together and look forward to it every year.

7. Just stay home.  After having our third child, we made the tough choice to celebrate Christmas Day at our home every year. Our decision was not popular, and we’ve had to defend it every year, but it is the most relaxing (ah, sweatpants all day long!) and fun (playing with our kids and their new toys) day of our entire year.

8. When tensions arise, think of others with less. Consider serving food at a homeless shelter sometime around the holiday or being a bell ringer for The Salvation Army for a couple of hours. These are great opportunities to take your kids along and teach them the true meaning of the holidays. St. James has another great idea: Make paper bag lunches with sandwiches, cookies, fruits and juice drinks and pass it out to the homeless in your area.

To ensure no feelings are hurt, make sure your family knows they are always welcome to spend Christmas Day at your home (with some notice, of course!).  With a little understanding and love, everyone involved can have a peaceful holiday season.

Hosting Out-of-Town Family and Surviving, Too!

Sometimes families can begin to wear on one another in close quarters.  Many families will be spending the holidays hosting out-of-town loved ones.  Here are strategies to help keep things warm and bright:

• Plan not to plan.  Learn to be flexible and not to hold onto unrealistic expectations.
• Make your grocery list in advance.  Plan ahead what you will be preparing at home while family is staying with you.  It’s helpful to know what you’re going to do far in advance of the actual day so you’re not scrambling at the last minute.
• Decide where everyone will sleep.  Make arrangements with friends to borrow air mattresses if necessary; gather bedding needs and extra towels.
• Check out all of your supplies.  Go through your household items to be sure you have plenty of supplies for serving meals to the number of guests you’re hosting.
• Hold onto your traditions.  Know that others will chime in with what they like, too, so remember again, be flexible!
• Make a list of fun things you can do together in order to get out of the house: Check out a holiday show together (be sure to look for senior discounts!); consider everyone’s ages, too.  An older couple might not enjoy a hike in the woods!
• Ramp up your Netflix queue, get out the Scrabble board, break out the family photo albums, have favorite music at-the-ready.
• Assign tasks in a friendly manner and when someone asks if they can help you with bed making or  meal preparation, say, “Yes!”
• Find out about what everyone likes to eat by … asking!  Learn about allergies, special needs, etc., in advance so it doesn’t throw you.
• Shop for food needs before guests arrive.

Kerrie McLoughlin is the nutty but proud mom of five little munchkins.
Join in the fun at TheKerrieShow.com.

The post A Peaceful Christmas appeared first on Cincinnati Family Magazine.

All it takes is thinking it through and the initiative to follow through. That’s the only difference between the teen who’s already teaching guitar lessons and the one who’s dreaming about it. Here are a few businesses that teens can start on their own – or with a friend – followed by tips for making it happen:

A cleaning service. Maybe your teen hates doing chores at home, but getting paid for doing them is completely different. He could offer complete housecleaning services, or specialize in one or more areas, such as attic/basement/garage clean-ups.

A yard maintenance service. There is always something that needs to be done in everyone’s neighborhood … mowing lawns and weed control in the spring and summer, raking leaves in the fall and shoveling snow in the winter.

A car-detailing business. Very few people have the time to really take care of their cars – your teen could offer a weekly or monthly service of washing, waxing, vacuuming, etc.

A music teacher. Lots of parents want a teenager to teach guitar or other instruments to their kids. This is easy to get started with fliers in mailboxes and a reference from your teen’s music teacher at school.

A pet sitting service. Typically more of a summer business when people tend to go on vacation, but your teen can offer a year-round business by offering pet walking, bathing, cleaning, etc.

A computer service. Is your teen a whiz with computers and the Web? Many adults are not, and he could make a solid
business helping people learn to use PCs and develop Web sites for their families.

A cooking service. Does your teen enjoy cooking or baking? If he can provide a service that offers well-cooked meals or home-baked goods, he could do quite well.

A painting service. With a little experience and a few friends, he could launch a painting business. People are always renovating. He could offer exterior paint jobs in the nicer months and interiors during the colder months.

An errand or delivery service. People need help with all sorts of errands. Your teen could offer grocery shopping services, package mailing, hardware store runs, etc.

A tutoring service. If your teen has talent with foreign language, math, science or other subjects, he could offer tutoring sessions to children, teens and adults in your neighborhood.

A freelancing service. If your teen is gifted in a certain field, such as writing, drawing or photography, consider him starting a freelance business for invitations, family portraits, etc.

5 Tips for Landing a Job

1. BE BRAVE
Even in this economy, there are employers looking for the affordable, enthusiastic, and energetic help that teenagers provide, but you have to go out and ask for it. Don’t let yourself be discouraged by news of the economy, and don’t be afraid to apply for jobs.

2. BE PREPARED
Bring a resume and a cover letter whenever you apply for a job. Teens are competing with adults for jobs now, and having a well-written resume is essential. It shows that you are serious about the position and that you are mature and responsible. Look online for samples of resume to get your teen started.

3. BE POLITE
When applying for a job, dress up, make eye contact, shake hands and avoid using slang. First impressions matter – they are your chance to prove yourself – so take advantage of the opportunity.

4. BE PERSISTENT
Persistence pays off. Send thank-you notes to interviewers. Follow-up with a phone call if you do not hear about the job after a week, and keep applying.

5. BE CREATIVE
Look for work in places other than the mall. The weak economy means that people are going to be looking to cut costs in areas such as lawn and child care. Get a few friends together and start a landscaping or a baby-sitting business.

The post Teens, Jobs and Elbow Grease appeared first on Cincinnati Family Magazine.

Nashville mom of four Barbara Lee does everything she can to shave down expenses in her family’s budget. “I’m a coupon nazi, I consolidate errand runs, participate in carpools and have converted the house to be as eco-friendly and cost-efficient as possible,” she says.

Lee is like many parents today, working to be a savvy consumer in a daunting economy. Many experts agree that maintaining a clear perspective of the “small picture” as well as major lifestyle changes can help families save more money.

Consumer Advocate Barbara Klepski says families trying to save, or struggling to pay rising utility costs, are paying more – and often too much – for the same goods and services they’ve been purchasing for several years. “We know about checking the seals on windows and doors, or the benefits of installing low-flow faucets, but too many consumers are still spending more than they have to every year,” explains Klepski.

Klepski says many households take advantage of the obvious ways to cut costs but don’t realize that a proactive attitude can help save more money every year. “Adding one or two tips can save $20 a month. Being extremely cost conscious can save the average family between $500 and $1,500 per year,” she adds.

Whether you’re looking to feather your retirement nest egg, saving to take your family on vacation or just shopping for options to cut costs, knowing where to find a few leaks in your budget can be rewarding for your entire family. “Parents can teach financial responsibility by encouraging their child’s participation in small acts of conserving utilities or helping be cost conscientious,” adds Certified Financial Planner Eric Bracken.

Conserve Energy

“Conservation is the number one way to save money on your electric bill,” says Nashville Electric Service Spokesperson Laurie Parker, adding that customers should pay attention to their bills in case there is any discrepancy on their meter readings. “Meters have to be read accurately, but if an error occurs – like a number being inverted – customers should call so the meter reader can come back out,” Parker adds.

The Tennessee Valley Authority (TVA) promotes a do-it-yourself home energy audit that you can do online or through a mail-in form. The process takes about 20 minutes online, and every household that participates receives a free conservation kit that includes compact fluorescent bulbs, outlet and light switch gaskets, faucet aerators and more. Participants also receive an audit report to help them learn where they may be wasting energy, and thus, money. Participate by logging on to energyright.com/savingenergy/evaluation.htm.

Pay Now, Save Later

Paying your monthly credit card bills, car loan or installment loan or mortgage sooner can save money. Because finance charges and interest are based on daily balances, lowering your balance weekly or bi-monthly instead of once a month can result in lower interest charges. “If you can’t pay the entire bill immediately, pay half or a portion. Then, you pay the remainder before the due date,” urges Bracken. The amount of money saved monthly will vary depending on the balance of the loan. As you pay off the loan, you’ll be paying more toward your principle balance.

Ask Questions

There are often extra charges on utilities or optional insurance plans added onto credit card balances that we pay for without requesting the service. Marie Koch of Brentwood reduced her telephone bill by $7.95 a month by inquiring why she was being charged for some features she never ordered. Nashville’s Doug Saia was shocked to learn his exterior gas meter had a small leak that was not only costly, but potentially dangerous as well. “It’s the equivalent of leaving the faucet running all day long. I had no idea how much money was leaking out,” says Saia.

Read Your Receipts

Before leaving a store, review your receipts to make sure you paid the correct price for the items you purchased. Was the coupon that you presented actually deducted from your total sales price?

Washing Your Budget

You can save money when you do laundry, too. According to research conducted by Procter and Gamble, washing clothes in cold water helps preserve clothes and can reduce the average household’s utility bills by an average of $6.25 a month. Bellevue mom of two, Randi Morrison, only uses the cold cycle. “The clothes are washed better and we have the added bonus of lower utility bills,” Morrison says. Doing full loads of laundry also helps cut down on your energy bill.

Where Does Your Water Go?

The water generated from spring thaws and late summer rains provide the chance to turn your sump pump into a built-in irrigation system. Re-routing the water that drains from your gutter or sump pump water to the garden or a tree reduces the need to turn on the sprinkler or garden hose. You’ll also prevent your lawn from becoming too wet in one particular area, which might otherwise result in its needing to be replaced.

Ask for a Savings

Financial expert and author Doris Dobkins suggests consumers give the manufacturer of their favorite products feedback. “Tell them how much you enjoy their products, and ask if they have any manufacturer promotions on other products they offer,” suggests Dobkins. You can also check the Web sites of your favorite household products for offers of free samples and coupons that are only available online.

Light Up Your Budget

If every household in the United States replaced just one bulb or fixture with an energy star qualified model, we would save more than eight billion kilowatts per hour, which is equivalent to removing one million cars from the road per year. This translates into an average savings of $20.50 per year per bulb. You can also let Mother Nature light your way for free and open up the shades and curtains on a bright day to provide light. During the winter months, the sun streaming in will also add an additional element of warmth to your home.

Tax-Free Shopping

Take advantage of Tennessee’s annual sales tax holiday, which takes place the first weekend in August. During this event, families can purchase clothes, school supplies and computers without the tax burden. “This is our biggest shopping excursion of the year,” says Lee. “Last year, we saved close to $400 by not paying the sales tax.”

Whatever route you take to save money, keep in mind even the smallest efforts can put more change in the piggy bank.

Gina Roberts-Gray is a mother and freelance writer.

more energy-saving tips for your home

• Set your thermostat to 78 degrees or higher in the summer and 68 degrees or lower in winter months.
• Clean or replace air filters monthly.
• Service your heating/cooling unit annually.
• Install a programmable thermostat.
• Set your refrigerator to 40 degrees.
• Don’t overload the dryer.
• Use compact fluorescent light bulbs. They cost more to purchase, but they use 25 percent less energy and last 10 times longer than traditional bulbs.
• Turn off unused lights.
• Seal up leaks by weather-stripping doors and caulking windows.
• Use less hot water by installing low-flow showerheads.
• Repair leaky faucets. A drip can waste up to 48 gallons of water in one week.

Source: Nashville Electric Service

The post Simple Ways to Save Money appeared first on Cincinnati Family Magazine.

Any mother who has ever held down a full time job has envisioned the scenario: tell the demanding boss to jump in the lake, quit the office commute, start a home-based business and live happily ever after.

The toddler will play with cars quietly in the next room and the baby will sleep blissfully while you work away at your home computer. Profits roll in, and everything is peachy keen. Right? It sounds like a walk in the park. Well, not exactly. Like all things, working from home isn’t all that it appears to be from the outside.

Certainly there are benefits, but each woman must think twice before chucking it all to join the ranks of the self-employed.

Working from home is full of the good, the bad and the ugly … just like working full time. It pays to go into it with your eyes open, though, to make sure you don’t make a huge mistake.

Where to Begin

The first step is deciding what kind of home-based business interests you. Examine your skill set. A previous full time career will usually lead to something that will fit. Someone in communications might become a freelance writer. Someone in graphic design might go into freelance web design.

It is also possible to find work as a full-time, home-based employee for an established company who doesn’t mind their employees working from home. For these women, the benefits and guaranteed pay is enticing, but working from home with children around doesn’t offer as much flexibility as most self-employed women find.

So what to do if there isn’t a clear path via previous experience? There is always the possibility to take a risk and try something new.

Lesley Spencer started Home Based Working Moms (HBWM) 10 years ago and has heard many success stories from women who have branched out into something new. Spencer felt compelled to launch HBWM after starting her own home business and seeing the need for networking and support for home-based working moms. She realized that there were women out there who were very interested in working from home, but weren’t sure how to start or what to do. Her website, homebasedworkingmoms.com, now offers support to parents who need to share information, network and support one another. The association has grown to over 600 members nationwide.

Do Your Homework

“The best advice I can give is to research the home business market and decide what you would be interested in doing,” Spencer says. “I strongly suggest that people find a business they truly enjoy. Most people who jump into a quick way to make money fail, falling victim to scams, or starting something that does not earn an income. Or they find the business they started is not something they enjoy, and making money at it becomes a real chore.”

To avoid the pitfall, Spencer created ‘Mom’s Work-at-Home Kit’ (workathomekit.com), which was designed to help moms discover their passion and turn it into a home-based business. “We each have individual strengths, interests, experience, needs and desires,” says Spencer. “In our ‘I want it now’ society, we search for instant answers and instant results. The difference between starting a home business and starting a successful home business usually lies in whether the home business is a good match for you. Find what you love to do, fill a need and the money will follow.”

Child Care

For work-at-home moms, the hardest part may be a good balance with child care. The level of child care simply depends on the nature of one’s business. For instance, a woman making money reselling yard sale treasures on eBay might not need child care as often as someone calling on clients.

Kelly Gore is a Franklin mother of one who works from home. After her son, Hayden was born, Gore decided to launch her own interior design business, Studioforma. In addition, she teaches classes at O’More College of Design in Franklin. She works from her home PC a lot, but must attend classes and is frequently required to sit in on meetings with clients, architects and contractors.

“Initially, when Hayden was younger, I had a nanny for once or twice during the week when I needed to be out of the office. As the business grew, as well as Hayden, I’ve enrolled him in day care twice a week, sometimes three times a week, when scheduling requires,” Gore says. She notes that sometimes things haven’t turned out the way she would like them to.

“More than a few times, I hate to admit, child care has fallen through, so Hayden, at a very young age has already attended his share of client meetings as well as a few college courses.

The Down Side

Working in pajamas and having a 10-step commute to the office is great, but there are unpleasant elements to working from home. Most women site record-keeping as one of the biggest headaches.

The Gores had previously been filing their own taxes but decided to recently use a certified public accountant (CPA) to handle their taxes since the job of filing taxes for someone self-employed became daunting.

Royce Rhea is a Brentwood-based CPA who spends 75 percent of his time working with the self-employed. Rhea is constantly encouraging his clients to maintain good records so that they can maximize their tax benefits.

“I have a lot of clients who love working from home, but maintaining good records can be a nightmare,” Rhea states. Before becoming self-employed, people need to remember that they pay both the employer and employee share of social security and you may also pay more in medicare. On the upside, there are ways to offset those expenses using tax deductions and write-offs. You just have to know how to find them.”

Striking a Balance

Ultimately, working from a home office is all about balance. While it can be rewarding, it can alternately be a lonely endeavor and can draw time away from your family.

Beth Maaske works as an outside sales associate for commercial truck and trailer dealers and realized early on that she had to actively pursue balance in her career and home life with husband Jeff and 2 year old son Zach.

“My advice is to be disciplined. At first, I found I couldn’t stop working. I worked from when I got up in the morning until I went to bed at night. I was neglecting my personal life and family because my job was right under my fingertips. I now keep all of my work in one room of the house and I leave it and don’t look back when work is over.”

On the other hand, Maaske states, unless you make time to either call on customers or get out of the house for a while, the loneliness can be hard.

“You get such limited interaction with humans when you work from home … and you have to get out or else you will just go nuts.”

Gore echoes those sentiments. “I miss the office environment quite a bit. In most architectural offices, the group is set up like a studio. The flows of information, design ideas and general conversation with co-workers is expected. Sole proprietorship is sometimes lonely.”

The Bottom Line

Ultimately, working from home can be a blessing … if it’s done right. Take a little time to plan ahead before jumping into the first thing that comes your way. Everyone interviewed for this article emphasized the importance of research and planning, whether it’s in evaluating your skills or making plans for change with your spouse or discussing your intentions with a CPA. So take a little time to lay the proper foundation, and you won’t be sorry.

Laura Roberts is a mom and writer. She resides in Williamson County.

BALANCING WORK AND FAMILY:

• Develop a schedule that allows you focused work time. Hire someone to come in during the week if you have children at home full time. Do not allow work to interfere with your children’s needs.
• Ask your spouse and children to help out with household chores and simple business tasks. Have a meeting to discuss who can help with what. Delegate tasks and work together as a family.
• Spend time each day with your children and spend time each evening just with your spouse. Don’t continually sacrifice time with your spouse or your children to work on your business.
• Periodically review how you are spending your time. Make sure each aspect of your life is getting the attention it needs. That includes: taking good care of yourself, spouse, children, business, home, hobbies, etc.
• Know what you want from your home life and business life. Decide what is truly important to you and work towards that goal. Eliminate time wasters and things that constantly prevent you from the people and things that are truly most important.

The post “Shhh! Mom’s Got to Work!” appeared first on Cincinnati Family Magazine.

There are many, many ways to begin working your finances anew with an infant in the household; some ways to get started:

• Get a social security number for the baby. If you didn’t get the form for this from the hospital or if you delivered elsewhere, call 800-772-1213 to get the ball rolling. You’ll need this number to set up a bank account for Baby as well as for any gifts of stock, bonds or cash your child receives. The social security number allows you to claim a dependency exemption on your tax return.
• Review your tax witholding with your employer. The more allowances you claim on your W-4 form, the greater your take-home pay. Find out how you can add an extra allowance for your baby.
• Write or update a will. Should you or your spouse die without one, the state will step in and distribute the deceased’s property according to Tennessee laws. Consult with a lawyer so that your baby will retain the maximum number of your assets and so that you can select a guardian of choice.
• Rethink life insurance. You will want enough insurance to cover your baby through college in the unlikely event that something happens to you. You may already have coverage through your employer, but if not, and you have to buy on the open market, look for term insurance (it ends after a 10- or 20-year term), which is considerably less expensive than permanent.

Source: How to Invest $50 to 5,000 by Nancy Dunnan (Harper Perennial)

The post Baby on Board appeared first on Cincinnati Family Magazine.

While the dreaded “B” word makes many people cringe, the good news, experts say, is that managed money works harder for you. People who learn to budget will fare better in life financially than those who struggle with the basics of budgeting. If you are reluctant to budget, then think of the following as a game. Just for kicks, follow these tips. Experts say even becoming more aware of your finances will cause you to save money!

• Begin by keeping track of your monthly income for a month or so. Don’t forget to include all sources of income, like tax refunds, bonuses and gifts.
• List all monthly expenses, not forgetting to include a category for unexpected medical or dental. Divide these monthly expenses into “have to’s” and everything else.
• Compare your two lists. From your income, pay your have-to’s first, then your savings, then everything else.
• Establish your goals. Whether you want to buy a new car, a new home or a new dress, having a financial goal will give you something to work toward.
• Be flexible. Your budget needs may change due to unforseen circumstances.
• Keep your budget simple and expectations realistic.
• Review your budget often and make adjustments when needed.

Source: Making the Most of Your Money by Jane Bryant Quinn; moneycentral.com

The post Creating a Household Budget appeared first on Cincinnati Family Magazine.

The cost of having kids can make parents question their sanity about starting a family. However, there are many ways to keep costs down without eating up your time or sacrificing your family’s quality of life. By following these cost-cutting tips, you can begin to build your savings and learn to live a more streamlined lifestyle.

Feeding the Crew

Feeding your family is perhaps one of the biggest expenses, and therefore, one of the best places to save. Coupon clipping can bring substantial savings – provided you use coupons only for items you’d purchase anyway. Coupons can be a hassle, however. Cut your grocery bill by at least one-third by buying only on-sale. Each week, flip through your store flier, then stock up with a four-to-six week supply of the items on sale.

Also, avoid wholesale food clubs. When comparing prices, the savings are usually minimal, and can’t begin to compare to grocery store sale prices. Always compare the price per ounce on different size packages. Contrary to popular belief, smaller packages are often the better deal.

Don’t let unanticipated fast food runs eat up your spare cash. Have paper plates and plenty of frozen meals to toss in the oven for emergency eat-and-run suppers.

Energy Efficiency

There are plenty of ways to cut overall energy use without sacrifice, so make the following part of your strategy. Run your dishwasher only when full, and use the no-heat or air-dry setting. Turn off the oven a few minutes before your meal is done cooking, and allow the heat already built up to finish the job. Wash all laundry in cold water, except for sheets and towels that need hot water to kill bacteria and odors.

Clean the lint filter on your dryer before each use, and don’t over dry clothes. Evaluate your lighting needs. Use the lowest watt bulb possible that still provides ample lighting. Keep your hot water heater between 115 to 120 degrees. Hotter temperatures are wasteful, unnecessary and can lead to scalding.

When purchasing new appliances, compare energy efficiency. Paying a little more for the more energy-efficient model can save you money in the end. Turn your computer off overnight and during long interruptions.

Family Fun

Having fun doesn’t have to cost an arm and a leg or even cost anything at all. Make visiting your library a regular family activity. Libraries offer a wide variety of free entertainment including books and magazines, videos and DVDs, music CDs and cassettes, audio books, even computer games and software. If your library doesn’t carry an item you’re looking for, ask about its interlibrary loan program. Libraries often host special events for families each month, too.

Contact local, county and state parks for scheduled activities and programs, and don’t forget about paved biking and roller blade trails, hiking and nature walks, fishing, swimming, wildlife viewing and more.

Instead of taking your family to dinner or for fast food, pick up Chinese and head to the park. You’ll not only save, but eat healthier, too. Contact the science, natural history, and children’s museums in your area and ask if they’re one of the more than 200 members of the Association of Science-Technology Centers (ASTC) in the United States. If so, purchase an annual family membership, generally ranging between $60 and $80, which offers unlimited visits to all ASTC member museums. Then plan several day trips throughout the year for family science fun. Visit astc.org for details.

Finance Savvy

The following suggestions can bring big savings and make banking and loans work for you, not against you.

If you can’t double up on mortgage and loan payments, you can still save by breaking each monthly payment into two, and pay half of your monthly loan and mortgage payments a couple weeks early. Contact your loan institution and make sure early and partial payments will apply to your regular monthly installments and that interest will be adjusted accordingly.

Open a checking account at a credit union or bank that offers free accounts with no maintenance or check fees. Get rid of that ATM card that racks up fees for each use. Store your credit card. Carrying it on you can lead to impulse buying, and unless you’re disciplined enough to pay it off monthly, it will eat up spare cash on interest expense.

Auto Economizing

There are many ways to keep driving expenses down. Try these for starters. Increase the deductible on your collision to $1000, unless you’re accident prone, or have teen drivers. The cost difference can be significant. Avoid purchasing a brand new vehicle, and opt for a low mileage model only a year or two old. You’ll save a fortune on depreciation.

Dress for Less

Save on household and clothing expenses by trying these money saving ideas, and help to protect the environment, too. Hit end of the season sales and save 60 – 80 percent on kids’ clothing for the following school year. A one-size difference is usually a safe bet.

Visit resale shops for super savings on like-new children’s clothing. Catch the savings as families in all income brackets are doing today by hitting garage sales for family and household needs. You’ll find top-quality, top-condition items including toys, baby equipment, clothing and more, for next to nothing.

Kimberly Blaker is a mother and freelance writer.

The post CRUNCH TIME! appeared first on Cincinnati Family Magazine.

Creating a Will

When Beth Higham was about 12 years old, her cousin came to live with her. This made an impression on Beth, now a mother of three, because her cousin had two siblings who each went to live with different relatives when their parents were killed in a plane crash.

“I remember feeling so sad because not only had my cousins lost their mom and dad, they lost each other, in a sense, because none of our relatives could take all three of them into their own family,” Higham says. “I think that memory is what prompted us to actually get with an attorney and make a legal will when our third child was born.”

Higham’s cousins’ parents hadn’t appointed a guardian for their children, so it was left up to surviving family members and the court to decide who would care for them. “When we only had two kids, we had a hand-written will naming a guardian for them,” she explains, “but when the third one came along we felt it was important to make it legal. We didn’t want to take a chance that they would be separated if anything happened to us.”

When you’re in your 20s, 30s or even 40s, it’s difficult to think about estate planning, because the need seems so far in the future. But the unfortunate reality is that accidents happen every day, and “it’s particularly important for parents with young children to have a will,” notes K. Gabriel Heiser of Brentwood, one of only 14 attorneys certified in estate planning in Tennessee.

“Wills aren’t just for the rich,” Heiser says. “Even if you don’t have much in the way of assets, you need to name a guardian for your minor children.”

A will also allows parents to make a trust for their children, which specifies when and how they will get any money left to them through the parents’ life insurance policies, investments, retirement plans, etc. And, having a will can help families save substantially on estate taxes – a whopping 41 percent – if all combined assets are $1,000,000. (Don’t scoff; Heiser points out that “You can get there quick with life insurance policies.”)

Naming a Guardian

Who would take care of your children if both you and your spouse died? Grandparents, a sibling or another family member? What if you don’t have any relatives capable of stepping in and taking over the care of your kids? Would you trust the court to appoint someone?

“Think about who would honor your values and desires in raising your children,” advises Robyn Lynne Ryan, an attorney with Cynthia J. Bohn & Associates, a Nashville firm specializing in wills, estates, conservatorships and guardianships. “Who would make sure your kids go to church, or go to college, or whatever is important to you?

“Juvenile court will grant custody, but they almost always appoint the guardian named in the will. If no one is named, they make every effort to keep children with their families,” Ryan explains. “Children become wards of the state – placed in foster care – only if there is no family member or friend who steps forward to take custody.”

Heiser also points out that you can name more than one person or couple as guardian. For instance, you could name your parents first, then your spouse’s parents, your brother and his wife after that and so on. Then if the first guardian isn’t able to fulfill that role for whatever reason, the next person or couple named would become the guardian, and so on down the list. You can also name a friend if you don’t have or want a relative to be guardian.

Setting Up a Trust

You will, of course, want to provide financially for your children if you die before they are grown. Life insurance is one vehicle for doing this, but unless you include a trust in your will stating otherwise, the entire amount will be given to your children when they reach age 18. “I haven’t met many parents who wanted their 18-year-old to have a lump sum of several hundred thousand dollars,” Heiser points out.

He says one advantage of a trust is that you can specify that each child gets a percentage of money at a certain age, another percentage a few years later, and the rest a few years after that. So if you want your kids to go to college, for example, you can specify that you want the trust used for that purpose, with one-third of the remaining amount given at age 25, one-half at age 30 and the remainder at age 35.

Part of creating a trust is naming a trustee to manage the finances. This may or may not be the same person you named as guardian. Beth Higham and her husband chose one couple to be guardians and another person to be trustee. “It’s just a good check-and-balance system,” she says.

“The trustee pays for all the needs of the child, and invests and manages the money on the child’s behalf,” explains attorney Ryan. “It’s best to name someone in your will who you have confidence in. It can be expensive – and emotional – if the court has to appoint someone.”

Another option is to have a corporate trustee. The advantage to having a bank or trust company as trustee is that these organizations are both experienced in managing money and impartial in its distribution. They do charge a fee for the service, so, according to Heiser, this option is usually best for those with estates in excess of $300,000.

“If you have a special needs child, you definitely need a trust,” explains Heiser. “If you give him the money outright, he may no longer be eligible for government supplement programs that he will really need over the course of his lifetime. It’s best to consult with an experienced estate planner for these situations.”

In addition to choosing a guardian and a trustee for your children, you also need to name an executor of your estate. Unlike a trustee, who serves for many years, the executor serves for only a short time, paying the expenses associated with your death. These include burial, final income taxes and certain outstanding debts.

As with a trustee, the executor can be a family member or friend, or a corporate institution such as a bank. Depending on the knowledge and experience of the trustee and executor, they may want to hire an attorney, a tax professional or a financial advisor to help them fulfill their duties.

Making Your Will a Legal Document

There are many decisions that must be made by a couple as they prepare a will. Attorney Heiser’s website, USAWills.com, takes you through the process, step by step, with lots of pop-up boxes providing additional information. After completing all the fill-in-the-blanks, you can review, make changes and purchase your will online if you choose. Then, to make it valid, it must be signed in front of a notary and two witnesses. Prices range from $49 – $199, with the spouse’s will added for half the price of the first will.

“Wills can also be updated at any time,” says attorney Robyn Ryan. “What works when you have one child will probably change when you have the second or third, if you get divorced or have a substantial change in your estate. It’s a good idea to revisit your will at least once a decade or when a significant change occurs.”

Ryan also advises that each parent have a separate will, because then it is easier to make changes. Most couples choose a “mirror” will, in which the couple’s joint desires are reflected in both documents. Both wills name the same guardian and trustee, for example, and the type of trust parents want for their children. A mirror will also allows each parent to name a beneficiary of any personal items they may have, such as a father’s childhood baseball card collection to his son or a mother’s heirloom jewelry to her daughter. Ryan charges about $150 per couple for a mirror will, if the couple’s assets are under a certain amount.

Felice Apolinsky, a single mom with two boys ages 8 and 11, has had a will since she was pregnant with her first child. “My dad is an estate attorney, and he made me do one,” she laughs. She and her husband both redid their wills when they divorced, mainly in the dispersion of assets, but made joint decisions about a guardian for their children if they both died.

“I don’t believe in leaving loose ends dangling in any part of my life,” Felice says. “You can get on with the business of living after your will is taken care of.”

Why Life Insurance Matters

Life insurance is actually a gift you give to your family, since you yourself will never reap the benefits of it. Like all insurance policies, you pay a premium and the insurance company pays a “death benefit” if you die during the policy period.

This precaution is important for several reasons. Life insurance can be used to pay funeral and other expenses associated with your death, which can reach up to $10,000. It can replace the income of a family wage earner or the economic value of work done at home, so the family can continue its current standard of living, i.e., pay the mortgage on the house in which you live. In addition to covering monthly living expenses, life insurance benefits can also be used to fund the children’s college education and provide money to help them get started on their own.

There are two types of life insurance: term and permanent. Term insurance is “straight-forward, plain vanilla protection,” according to Scott Newell, a financial advisor with Schwab Private Client Group in Brentwood. “Whole and universal life insurance, the two primary kinds of permanent life insurance, are just term policies with an investment component.”

With term insurance, you purchase death benefits for a specified period – usually five, 10 or 20 years. When the period is over, the deal is done and you walk away (or renew the policy). Insurance pays a specific lump sum to a designated beneficiary if you die during the term of your policy.

There is no time limit with whole and universal life insurance policies; they continue as long as you pay the premiums. Because the company invests some of the money you pay in premiums, these policies can also be used like a savings account. They accumulate a cash value over time, enabling you to withdraw some of the cash value or borrow against it.

“Financial advisors agree that it’s wiser to buy term life insurance and use the difference in premiums (compared to the much higher cost of whole or universal life insurance) to buy separate investments,” Newell explains. “The insurance industry disputes this by saying the money is tax-deferred, which is true, but it’s also true that it’s not typically a good investment. The rate of return is better when you make your own investments.”

Newell also explains that the exception to this is with an estate in the three- to five-million-dollar range, when you can buy insurance to pay estate taxes. This is obviously more complicated and requires the assistance of a professional estate planner.

Buying life insurance has an emotional aspect not associated with other types of insurance, so it’s easy to fall victim to sales pitches and buy more than you need, or end up with more expensive premiums than you want. For impartial information on life insurance, with a built-in calculator to help determine the right amount for your situation, go to bygpub.com, where you can also find other financial planning information.

Nancy W. Brown is a freelance writer residing with husband and two children in Nashville.

As a service to our site members, we are conducting a survey focusing on some relevant estate planning issues. As a special thank you for taking part in this survey on Wills, USAWills.com has donated a prize to be given away at random to a survey participant.

Surveys must be completed by midnight central time on Jan. 31, 2002 in order to be eligible for the drawing. A $100 gift check and a free will (value of $149) through USAWills.com will be awarded to one selected survey participant. Take our quick survey now.

The post Estate Planning appeared first on Cincinnati Family Magazine.