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Your Money Your Choice: 15 Decisions You Can Make to Kickstart Your Financial Independence

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financial independence

Achieving financial independence is a goal that many aspire to but often find challenging to attain. However, the journey to financial freedom begins with a series of intentional decisions that can significantly impact your financial future. From managing expenses to investing wisely, there are decisive actions you can take to achieve your financial goals. Here are 15 choices you can make to kickstart your path to financial independence.

1. Set a Budget

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Create a detailed budget to track your income and expenses. Knowing where your money goes is the first step toward making informed financial decisions. There are many apps, such as Rocket Money, that can help you stick to your budget. These tools can also help you cancel subscriptions you no longer use and set spending limits on various categories.

2. Create an Emergency Fund

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Creating an emergency fund is a foundational step in building financial resilience and security. An emergency fund acts as a financial safety net, providing you with peace of mind and protection against unforeseen circumstances such as unexpected expenses, medical emergencies, or job loss. While the ideal target is to save three to six months’ worth of living expenses, even starting with a modest amount can provide invaluable stability in times of need. The primary purpose of an emergency fund is to cover essential living expenses during times of financial hardship without having to resort to borrowing money or tapping into retirement savings. This fund can help you weather temporary setbacks such as unexpected car repairs, medical bills, or home maintenance costs without derailing your long-term financial goals.

3. Focus on Debt Repayment

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Focusing on debt repayment is a vital step towards achieving financial stability and freedom. High-interest debt, such as credit card balances and personal loans, can weigh heavily on your financial health, accruing interest over time and potentially trapping you in a cycle of debt. Prioritizing debt repayment not only reduces financial stress but also saves you money in the long run by minimizing interest costs. When it comes to tackling debt, a strategic approach is key. Start by assessing your outstanding balances and interest rates across all your debts. Identify which debts carry the highest interest rates, typically credit card balances or certain types of personal loans, as these are the ones costing you the most in interest charges. Once you’ve identified your high-interest debts, prioritize paying them off aggressively.

4. Live Below Your Means

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Avoid lifestyle inflation by living below your means. This means resisting the urge to overspend when your income increases and instead saving and investing the difference. There are many ways that you can save on expenses with a little creativity and flexibility. For example, instead of paying for an expensive cable TV package, consider streaming apps instead. These small adjustments can add up quickly.

5. Automate Savings

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Set up automatic transfers to your savings or investment accounts. Automating savings makes it easier to stick to your financial goals and ensures consistent contributions over time. Apps like Acorns can help you do this every week without thinking about it. Focus on saving 20% of your income to build up wealth.

6. Hone in on an Investment Strategy

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Develop an investment strategy tailored to your financial goals, risk tolerance, and time horizon. Consider diversifying your investments across asset classes to reduce risk. Creating an investment strategy is like charting a course towards your financial goals, taking into account your unique circumstances and preferences. Consider factors such as your age, financial obligations, income stability, and comfort level with market fluctuations. Risk tolerance varies from person to person, and it’s essential to find a balance between risk and potential returns that suits your temperament.

7. Don’t Delay Retirement Planning

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Contribute regularly to retirement accounts such as 401(k)s or IRAs. Take advantage of employer matching contributions and maximize tax-advantaged retirement savings opportunities. One of the most compelling reasons not to delay retirement planning is the power of compound interest. By starting to save and invest early, you give your money more time to grow. Compound interest allows your investment earnings to generate additional earnings over time, accelerating the growth of your retirement nest egg.

8. Start a Side Hustle

side hustles

Explore opportunities to generate additional income through a side hustle or freelance work. Supplementing your primary income can accelerate debt repayment and savings goals. Today, there are a plethora of opportunities thanks to the gig economy. Companies like Instacart, Uber, and Doordash make it easy to sign up for a flexible side hustle. Take stock of your skills and hobbies, as well. If you love painting, perhaps you can sell some of your creations on sites like Etsy or at a local craft fair.

9. Review Your Insurance Coverage

insurance

Review your insurance coverage to ensure adequate protection for your health, property, and income. Consider factors such as deductibles, coverage limits, and premiums. By conducting a thorough review of your insurance coverage and making necessary adjustments to align with your current circumstances, you can enhance your financial security and protect yourself against unexpected risks. Don’t wait until a crisis occurs – proactive insurance planning is key to safeguarding your health, property, and income for the future.

10. Commit to Financial Education

financial education

Invest in your financial literacy by reading books, attending workshops, or taking online courses. Understanding basic financial concepts empowers you to make informed decisions about money management and investing. Financial education equips you with the knowledge and skills needed to navigate the complex world of personal finance confidently. By understanding fundamental concepts such as budgeting, saving, investing, and debt management, you gain greater control over your financial decisions and outcomes. There are a plethora of resources available including financial books, podcasts and blogs that can help you on your path to financial independence.

11. Define Long-Term Goals

financial independence

Define your long-term financial goals, such as buying a home, starting a business, or retiring early. Establishing clear objectives provides motivation and direction for your financial journey. Once you’ve crystallized your long-term goals, it’s essential to commit them to writing and revisit them regularly. This not only reinforces your commitment but also helps track your progress and make adjustments as needed. Additionally, sharing your goals with trusted confidants, such as financial advisors or mentors, can provide valuable insights and accountability.

12. Consider Tax Optimization

taxes

Take advantage of tax-efficient investment strategies and deductions to minimize your tax liability. Consult with a tax professional to explore tax-saving opportunities. For those unable to afford professional tax assistance, online tax preparation services like TurboTax offer user-friendly platforms to guide you through the tax-filing process. These platforms provide step-by-step instructions, tax calculators, and automated deductions to help maximize your tax savings and ensure accuracy.

13. Don’t Ignore Health and Wellness

health

Prioritize your physical and mental well-being, as health-related expenses can impact your financial stability. Health-related expenses, including medical bills, prescription medications, and treatments for chronic conditions, can quickly accumulate and strain your finances. Unexpected health issues or emergencies can also lead to financial hardship if you’re unprepared. By prioritizing your health and proactively managing potential health risks, you can mitigate the financial impact of medical expenses and safeguard your financial independence.

14. Establish an Estate Plan

estate plan

Create or update your estate plan to ensure your assets are distributed according to your wishes. This may include drafting a will, establishing trusts, and designating beneficiaries for retirement accounts and life insurance policies. Regardless of age or wealth, having a well-thought-out estate plan provides peace of mind and safeguards your legacy for future generations. Regularly reviewing and updating your estate plan is equally important, especially following major life events such as marriage, divorce, birth or adoption of children, or significant changes in your financial circumstances.

15. Seek Professional Guidance

financial advisor

Consider consulting with a financial advisor or planner to help you navigate complex financial decisions. A professional can provide personalized guidance based on your unique circumstances and goals. A financial advisor will help you manage your portfolio effectively and help yield results. Moreover, working with a financial advisor can provide valuable accountability and discipline in achieving your financial goals. Advisors can help you establish realistic objectives, set achievable milestones, and stay on track through regular progress reviews and adjustments to your financial plan as needed. This proactive approach can help you maintain focus and discipline, even during turbulent market conditions or unexpected life events.

Achieving Financial Independence

financial independence

Remember, achieving financial independence is a journey that requires discipline, patience, and perseverance. By making deliberate choices and prioritizing your financial well-being, you can take control of your money and work toward a future of greater financial freedom and security. Your money, your choices—empower yourself to build the life you envision. Whether it’s achieving homeownership, starting a business, traveling the world, or retiring comfortably, the power to realize your dreams lies in your hands. By empowering yourself with financial knowledge, setting clear goals, and taking consistent action, you can transform your aspirations into tangible realities.

18 Parenting Hacks for Busy Moms and Dads That Are Game Changers

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Parenting is an exhilarating journey filled with love, laughter, and the inevitable challenges of juggling a busy life. In the modern world, where time is a precious commodity, moms and dads strive to find that perfect balance between fulfilling professional responsibilities and being present for their children’s milestones.

The quest for effective parenting solutions has never been more relevant, as families navigate through a fast-paced lifestyle that often leaves little room for error or inefficiency. Enter the realm of game-changing parenting hacks—ingenious, practical tips designed to streamline your daily routines, enhance your child’s development, and maximize those precious moments together.

This guide unveils 18 life-altering strategies for busy moms and dads, offering a roadmap to a harmonious family life where joy and productivity coexist. Prepare to transform your parenting approach, turning every challenge into an opportunity to bond, learn, and grow alongside your children.

1. Schedule Power Hours

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Dedicate specific hours to uninterrupted, quality time with your children. This isn’t just about supervision; it’s about engaging in activities that both you and your child enjoy. Create a weekly schedule that includes these power hours to ensure they happen. Make this time technology-free to focus entirely on the moment. You’ll be surprised how much you can bond and accomplish in these concentrated sessions. Power hours help in creating lasting memories and teaching valuable life lessons.

2. Meal Prep Mastery

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Save time and reduce stress by planning and preparing meals in advance. Batch cooking on weekends can be a lifesaver for busy weekdays. Involve your children in meal preparation to teach them cooking skills and nutrition. Use color-coded containers to make it fun and organized. Freeze portions for easy reheating, ensuring healthy meals are always at hand. This not only streamlines mealtime but also helps in maintaining a balanced diet.

3. The Magic of Routine

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Establishing a consistent daily routine helps children feel secure and manage their expectations. From morning rituals to bedtime routines, consistency is key. Routines can include reading time, playtime, or simple chores. Use visual charts to help children understand and follow the routine. This fosters independence and time management skills from an early age. Plus, it makes daily transitions smoother for everyone involved.

4. Tech to the Rescue

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Leverage technology to make parenting easier. Use apps for educational activities, time management, and even remote monitoring. Choose quality, age-appropriate apps that promote learning and creativity. Set clear boundaries around screen time to ensure its beneficial, not detrimental. Technology can be a valuable ally in managing the chaos of daily life. Remember, it’s about using tech as a tool, not a crutch.

5. Simplify the Morning Rush

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Mornings can be hectic, but with a few strategic hacks, they can run smoothly. Prepare the night before—lay out clothes, pack lunches, and set out breakfast items. Establish a morning routine that everyone follows, making it easier to get out the door on time. Use checklists for older children to follow and take responsibility. Simplify breakfast with quick, nutritious options. These steps can transform chaotic mornings into calm departures.

6. Organize and Delegate

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Clutter can lead to chaos. Organize your home to make it more functional and less stressful. Label shelves and bins for easy access and storage. Delegate age-appropriate chores to children, teaching responsibility and teamwork. Use a family calendar to track activities, appointments, and tasks. By sharing responsibilities, you foster a sense of belonging and teamwork within the family.

7. Bedtime Blues Be Gone

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Create a calming bedtime routine to help children wind down. Use soothing music, gentle lighting, and quiet activities like reading to signal it’s time to sleep. Consistency in bedtime routines aids in better sleep patterns. Discuss the day’s events and tomorrow’s plans to help children mentally prepare. Use bedtime as a moment to connect, ensuring a peaceful end to the day. This routine helps in fostering a sense of security and calmness in children.

8. Embrace Outdoor Adventures

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Encourage outdoor play to promote physical activity and creativity. Simple activities like walking, cycling, or playing in the park can make a significant difference. Nature exploration can be both educational and relaxing. Plan weekend outdoor adventures to create family memories. Outdoor time is essential for physical health and mental well-being. It’s a perfect way to disconnect from screens and connect with each other.

9. Smart Shopping Strategies

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Minimize shopping trips with effective planning. Use online grocery services or curbside pickups to save time. Involve the kids in making shopping lists to teach planning and decision-making. Bulk buying for staples can save money and reduce shopping frequency. Organize the pantry and fridge for easy access and inventory management. Smart shopping reduces stress and frees up time for family activities.

10. Efficient Homework Help

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Create a dedicated homework space and time to help children focus. Be available for help but encourage independence. Use resources like educational websites or apps to assist in learning. Break tasks into manageable chunks to prevent overwhelm. Praise effort, not just results, to foster a growth mindset. Efficient homework strategies can make learning more enjoyable and less of a chore.

11. Laundry Load Lighteners

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Streamline the laundry process with daily small loads instead of weekly marathons. Involve kids in sorting and folding to teach responsibility. Use color-coded baskets for each family member to simplify sorting. Implement a system for managing clean and dirty clothes. Quick-dry fabrics can save time and energy. These strategies can turn laundry from a daunting task into a manageable routine.

12. Financial Literacy for Kids

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Teach children about money management through allowance and savings goals. Use apps or games to make learning about finances fun. Discuss family budgeting to provide real-world context. Encourage entrepreneurial activities like a lemonade stand. Set up a savings account and involve them in tracking progress. Educating children about finances prepares them for future independence.

13. Quality Time vs. Quantity Time

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Focus on meaningful interactions rather than the duration of time spent together. Small moments like cooking together or Storytime can be significant. Be fully present during these times, free from distractions. Tailor activities to each child’s interests and age. Quality time strengthens bonds and builds self-esteem. It’s the richness of the experience that counts, not the length.

14. Creative Chaos Control

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Establish clear zones in the home for activities like play, work, and relaxation. Use storage solutions that kids can manage themselves. Regular decluttering sessions can be made into a fun family activity. Embrace a bit of mess as a sign of creativity and learning. Rotate toys and books to keep things fresh and engaging. A managed environment reduces stress and encourages order.

15. Positive Reinforcement Routines

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Implement a reward system for positive behavior and accomplishments. Use charts or apps to track progress towards goals. Celebrate successes, no matter how small, to encourage continued effort. Positive reinforcement builds confidence and motivation. Ensure the rewards are meaningful and age-appropriate. This system helps in fostering a positive atmosphere and encouraging good habits.

16. Self-care for Parents

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Remember to take care of yourself to be your best for your children. Simple self-care acts like reading, exercise, or hobbies can rejuvenate you. Schedule regular “me time” to maintain mental and physical health. Prioritizing parental self-care models healthy habits for children. Self-care isn’t selfish; it’s necessary for balanced parenting. Taking care of yourself ensures you have the energy and patience for effective parenting.

17. Community Connection

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Build a support network with other parents and families. Participate in community events or groups to connect with others. Sharing experiences and advice can provide valuable support. Community connections can lead to friendships and resources for both parents and children. It’s a way to feel less isolated and more empowered in parenting. Relying on a community can provide relief and reassurance.

18. Learning Through Play

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Incorporate educational games and activities into daily routines. Play-based learning can be both fun and educational. Use toys and games that promote problem-solving and creativity. Interactive play encourages communication and social skills. Learning through play is effective and enjoyable for children. It turns everyday moments into opportunities for growth and development.

Extraordinary Parenting

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Mastering the art of parenting as busy moms and dads is about integrating these hacks into everyday life, transforming routine challenges into opportunities for growth and bonding. Each of these 18 strategies offers a way to streamline daily tasks, enhance learning, and deepen family connections. By scheduling power hours, embracing outdoor adventures, or fostering financial literacy, parents can equip their children with the skills and experiences needed for a fulfilling life. Efficiently managing household chores, prioritizing self-care, and building community ties are also crucial in maintaining a balanced and joyful family dynamic.

How to Budget for Home Repairs as a Single Mother

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As a single mother, it’s important that you’re able to keep your home updated and repaired. You need to ensure a safe place to live for your family and one that will continue to last for a while. Trying to manage home repairs and maintenance practices on your own can be challenging. As a single mother, there are some ways you can consider budgeting for these repairs that are expected to come up sooner or later.

Save Your Tax Return

As a single mother, you are likely going to get back some income tax return, at the state level, federal level, or both. When this money comes in, go ahead and plan to use it for home repairs. Put it away in a savings account so you can cover the costs for large projects like roof repairs. A new roof can yield an ROI of up to 85%, according to Home365. While this might cost you a lot of money this tax season, it could really pay off for you in a few years when it boosts your home value.

Use Your Home Equity Line

Having a high home value means that you can have a decent home equity line on your home. If you do, you can visit your lender and see about borrowing money against this so that you can make the necessary repairs and renovations you need for your family. If the home is starting to age and some things start breaking down, you need to fix them before they can get worse. Your lender will recognize this and be willing to offer you more funds towards your equity line. 12.43% of bathrooms have a modern design aesthetic and they can really improve the value of your home once you’re ready to borrow for your budget.

Set Aside A Monthly Amount

If you have a second account, you can have a certain amount of money drafted into this account each paycheck, so when you need to pull it out for repairs, you’ll have some sitting there ready to go. Depending on how much your home is worth, how old it is, and your current income, you’ll want to consider a certain amount to set aside. Do a chart on all the maintenance you’ve done over the last few years, and see what that number averages out to be. According to a Houzz study, nearly 50% of homeowners’ timelines were extended past their original expectations, which means you could have several maintenance needs come due quickly.

Use Your Kids To Help With Labor

Some of the projects will require you to hire a professional because of the tools and the skills needed. However, there are some repairs around the house that you can have your kids help with, so you can save on labor and only have to budget for the cost of the materials. Your family can chip in to help with indoor painting in the home, as they can’t get hurt with that project. They can also help you apply new cabinet doors across the home, and update the hardware on these cabinets with screwdrivers. If you have older children who are more responsible, you may be able to have them help you with some assembly repair throughout the home, changing out different pieces and gaining some skills along the way.

Start Preparing For Your Home Repairs

If you’re looking to budget for some home repairs, keep these options in mind to help your finances and your family. You want to provide a safe and comfortable home for your family, but you also want to continue getting a return on your investment and having the money to keep the home up properly. Having your children keep up with chores and smaller home maintenance will also help you with this process over time, making it easier and allowing you to budget more.

How to Save Hundreds on Diapers

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You might have seen those scary numbers that tell you the cost to raise a child is over $200,000 from the time of birth until the age of 18.  While there are plenty of ways to cut costs when raising your children, there’s one expense that hits you as soon as your child is born—the cost of diapers.  We had two kids in diapers for 1.5 years, and I remember being so glad when they were potty trained as we got a large chunk of our budget back.  While there’s no way to avoid this expense, there people do learn how to save hundreds on diapers.

How to Save Hundreds on Diapers

How to Save Hundreds on Diapers

There are many techniques you can use to save, but you’ll save even more if you put several of the strategies together.

Use Cloth Diapers

How to Save Hundreds on Diapers

Photo by Padmavathi Ashok Kumar on Unsplash

The best way to save is to use cloth diapers.  Most people dismiss this idea because cloth diapers aren’t allowed at daycare.  If that’s the case, use cloth diapers at home and buy disposable for daycare.  You’ll still see significant savings this way.

Buy Cloth Diapers on eBay

I cloth diapered my son almost exclusively.  I bought several lots of used cloth diapers on eBay with mixed results.  I ended up with some very nice diapers, but I also ended up with some worn out diapers that I couldn’t use.

Do Your Research First

If you’re going the eBay route, first research which diapers you’d like to use.  (There are so many brands of cloth diapers with so many different features.  Cloth diapering is not like it was 30 years ago!)

If you buy new, your diapers will likely last through several of your children.

If you buy used, check the quality description carefully.  You don’t want to end up with diapers that have very little life left.

How to Save on Disposable Diapers

There are quite a few strategies to save money on disposable diapers.  Use as many as you can to save even more.

Buy Off Brand Diapers If You Can

Of course, the biggest diaper brands, Huggies and Pampers, cost the most.  However, there are many off brand diapers that are much cheaper than the big brands.  Look for Target Up and Up diapers, Walmart’s White Cloud diapers, or Luvs.  Likewise, Walgreen’s and CVS each have their own house brand of diapers that are cheaper, too.

Use Amazon Subscribe & Save

If you have an Amazon Prime account, make sure to use subscribe & save.  When you go to put the diapers in your cart, you’ll see an option to make a one-time purchase or to make the item subscribe & save.  Thanks to Amazon Family, when you choose subscribe & save, you save 20% off your diaper purchase every time.  You just have to make sure you have five or more products on auto-delivery at the same time to the same address.  (FYI, baby food is also included in the eligible products list, so you can save there, too.)

Use Coupons

There are many, many coupons for diapers.  You can check out Coupons.com, Ibotta, or Checkout 51 for diaper coupons.  You can also email the company and sign up for their email.  (Luvs is known to be especially generous with their coupons when you sign up for their mailing list.)  Even Costco and Amazon have coupons for their diapers occasionally.

A Covert Way to Save

Diaper packages generally have a size range.  For instance, Huggies Snug & Dry size 2 one-month supply has 222 diapers in a box and fit babies weighing 12 to 18 pounds.  Size 3 of the same has 200 diapers and fits babies 16 to 28 pounds.  Some moms save money by keeping their child in the smaller size diaper as long as they can because you get more diapers per purchase in the smaller size.

You’ll know it’s time to move up to the bigger diaper size when your baby has frequent leaks or blow outs.

Build a Diaper Stash

How to Save Hundreds on Diapers

Photo by Nathan Dumlao on Unsplash

Another option is to build a diaper stash before baby is born and when you can find diapers at a great price.

Some women ask each person attending their baby shower to bring a box of diapers or wipes.  Other women start stocking up the minute they find out they’re pregnant.  (You can find quite a few good sales on diapers in nine month’s time and end up with a nice diaper stash.)  If you’re not sure what sizes to buy, there’s a handy chart one mom created documenting how many diapers in each size her daughter used during her first year.

One caveat here—be careful building a diaper stash.  I’m actually glad I never built a diaper stash.  Why?  All my kids were born over nine pounds and didn’t even fit in the newborn size diapers.  Second, one of my children had very chunky legs, so Pampers’ slimmer cut didn’t fit her well.  We had to keep her in Huggies.  If I would have stocked up on Pampers, I would have lost all of that money.  Some babies are allergic to some diapers, so those can’t be used.  For these reasons, I’d actually discourage new moms from building a diaper stash.

Buy in Bulk

If you can afford it, buying diapers in bulk is the way to go.  The bigger the box you can afford, the less you pay per diaper.  Costco is a great place to buy diapers if you don’t have an Amazon Prime account.  Target also has sales for boxes of diapers where you buy a certain amount in diapers, say $100, and then you get a $25 gift card.  This deal gives you a great incentive to buy in bulk.  (Don’t forget to get and use the Target Red card to save 5% off your purchase.)

Final Thoughts

While diapers are expensive, there are strategies to learn how to save hundreds on diapers.  Use some or most of these techniques and see how much you save.  And remember, while diapers are a big expense temporarily, this expense will usually go away in three years.  Then, it’s on to the next expense for you child.

What To Do When You Are Overspending at Christmas

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Overspending at Christmas

I have a confession.

I overspent my Christmas budget.

(And I’m not done shopping.)

Overspending At Christmas

I did everything right. I made a list of who I was shopping for and created an overall budget. All was going well until I deviated from my plan.

Typically I plan a vacation for Christmas. I prefer to gift experiences to my family over wrapped presents. Last year, we went to Disney World. The year before, we went to Great Wolf Lodge.

However, this year, my daughter wanted a saddle, and my son had been asking for some 1000+ piece Lego sets. These were items I’d buy for my kids outside of Christmas, so I thought let’s go ahead and have Santa buy them. We’ll stay home this year and spend our budget on Christmas presents.

I also expected this would create a more relaxed Christmas. I wouldn’t have to coordinate the logistics of travel, and I wasn’t planning to buy much for Christmas. After all, the presents I was going to buy weren’t extra for the sake of Christmas.

I was wrong.

It’s not more relaxed and I’m buying more presents than what was on my list.

Creating A Budget Buffer

Something I always do is that I plan to go over budget ahead of time. I do this by creating a budget buffer – usually 5 to 10% of my overall budget. Because overspending at Christmas is not an unrealistic scenario.

Since we’re home this year, I’ve been more inclined to accept invitations to Christmas parties. Also, because we are home, we’re going to my in-laws Christmas morning. This added additional people to shop for that were not on my original list.

But good plans are fluid, so I adjusted the budget per person to accommodate the extras.

Another thing that surprised me is my kids wanted to buy presents for other people. I appreciate this, and it was a simple budget obstacle to overcome.

They pitched ideas on what they would do in exchange for extra money. I was able to secure some “maid” service for the next few weeks in exchange for some small gifts. The amounts were small enough that it didn’t set me over budget because I had built in a buffer for unexpected purchases.

Plan For Budget Obstacles

What I didn’t expect was nostalgia to travel over Christmas. Impulsively, I booked a 3-day trip to Legoland. I paid the full price for the hotel room and park tickets. I was able to use miles for two of our plane tickets and paid for the other two. This was the primary reason that led to my overspending at Christmas.

So what am I going to do now that I’m WAY over budget?

Good plans should be fluid and be able to accommodate roadblocks.

I have to sacrifice in other areas of my budget. I reduced the amount my husband is allowed to spend on me and I pulled from our travel savings account to cover the hotel and tickets.

To pay for the plane tickets, I pulled from January’s budget by cutting expenses. Food was cut back, clothing was eliminated, and I cut the flash cash budget in half.

What I Learned

Through this process, I have been reminded of how grateful I am that:

1) I have set my budget up to accommodate impulse decisions – knowing this is standard behavior for me,
2) I have diversified my income so that I know I can generate some back-up income when I needed, and
3) I am committed to remaining debt-free. A few years ago, I would’ve slapped the trip on a credit card and not thought twice about taking two years to pay for it.

 

Have you gone over budget this Christmas? How do you handle impulse purchases? Is your budget set up to accommodate your personality? Let us know in the comments.

Read more:

5 Ways to Buy Cheap Christmas Gifts for Kids

Three Things You Can Do to Make Money for Christmas

Favorite Family Christmas Traditions, Modernized!

 

4 Creative Money Challenges for Kids

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money challenges for kidsOne of the biggest – and most important – hurdles parents face is that of teaching their kids to save money. In today’s instant gratification world, kids are often led to believe that spending is more beneficial than saving. It’s our job as parents and caregivers to teach them the benefits of saving over spending. By utilizing these money challenges for kids you can help your child learn the importance of saving money.

4 Creative Money Challenges for Kids

The 365-Day Money Challenge

The 365-Day Money Challenge has flexibility in both the amount of money you can use and when you earn it. The first step is to print out a chart that has 365 days of money amounts on it, starting with $.01 up to $3.65. Then, post the chart somewhere where your child will see it every day. Each morning when your child gets up, they pay their piggy bank or money jar an amount from the chart. When they pick a money amount to save, they then cross that amount off on the chart. Each money amount can only be used once throughout the year. By the end of the year, they’ll have saved $667.95!

Wants some ideas for how to help your child earn money? Check out these chores here.

The Matching Money Challenge

This money challenge will involve parents and/or grandparents as well. The first step is to have your child decorate a jar with a lid, such as a large canning jar. They can also use their own piggy bank. Each week your child will put in their bank the money they’ve earned through different sources. Money earned for chores or allowance, or money received from gifts are some ideas for finding money to save.

After the jar is filled up, parent and child bring the jar to the bank to deposit the money. When the money is counted, parents or grandparents match the amount the child has saved. The final deposit into your child’s savings account will be double what they have saved!

The 52-Week Savings Challenge

Similar to the 365-day challenge, this challenge requires kids to save money on a regular basis. First, they print out this chart. Each week has a money amount – payable in quarters – listed on the chart.  Your child chooses which amount he or she wants to save each week, crossing that amount off as they go. By the end of the year, your child will have saved $344.50.

The Make-it-Your-Own Money Challenge

This challenge can be implemented in a number of different ways. The goal is to help kids improve their lives in some way or teach them that work produces income. The first step in this challenge is to determine a dollar amount payout. Parents can work with children to help decide how much they want to earn in a given time period. The challenge can be modified to work for every family’s budget and specific goals.

For instance, some kids may have a goal of earning $10 in a week.  Others might want to earn more over a longer time period. It also helps to determine with your child why he or she wants to save. Having a reason for saving helps motivate kids to save more.

After you’ve determined how much to save and in what time period, parents create jobs or tasks with coordinating payouts. The “jobs” can consist of several different options, such as:

  • Doing chores around the house that are outside of normally assigned chores
  • Doing learning challenges such as reading books or completing math worksheets
  • Implementing healthy habits such as exercising or making healthy eating choices
  • Choosing to cut down on screen time in favor of reading or spending time with loved ones

The challenge can be customized to fit whatever goals your family or your child may have. As a bonus, your child will earn a reward them for achieving those goals.

Teaching kids to manage money well is just one of the things we can do to prepare them for independence. By helping our children develop a habit of saving money, we can prepare them to be financially responsible adults.

Got any money challenges for kids of your own to add? Drop it below!

Are you a stay-at-home mom? Check out these hot tips and pin one for later!