It’s important that you monitor your accounts, and pay attention to what is on your devices. You want to prevent your children from running up the bills with the gadgets designed to make your life easier.

Running Up the Credit Card Bills

Many of us have our credit card information and other information stored with our favorite sites. My iTunes account is connected to my PayPal account — which is in turn connected to financial information. If the PayPal account is empty, it automatically draws from somewhere else. We also have a credit card stored at Amazon for quick use.

All of this means that it’s fairly simple for my husband to download an iPad app that lets him take notes and organize presentations that he makes to his students. All he has to do is press a couple buttons. My Kindle came pre-registered, and ordering a new book is as simple as tapping the screen. There is a confirmation that asks if I really wanted to make the purchase, but that is taken care of with another tap. Easy as pie.

The problem is that it’s just as easy for children to order things from these devices as well. A friend recently lamented to me that his iPhone is full of games and apps that his children downloaded. He has no idea what they are — only that receipts for their purchase appear in his email inbox regularly.

Another issue has been the Kindle Fire. Some are complaining that the Fire is designed to make it extremely easy to order Amazon products online. So easy that kids are doing it — sometimes even by accident. This means that you could be experiencing a money leak and not even realize it until you’ve spent money you didn’t even realize was being spent.

Preventing Purchases By Kids

If you want to stop your kids from making these purchases regularly, you will need to take steps to make it more difficult for them. Unfortunately, this might also make it more difficult for you to make purchases.

In many cases you can require that purchases only be complete when the proper password is entered. You will need to choose a password your children don’t know in order for this to work. Then, before any purchase can be completed, a password must be entered. This adds another step for you, but it can prevent your children from running up the bills with such ease.

It’s also possible to turn off the wireless so that children can’t connect to the app store or Kindle store when using the device. They can play games and read books already on the devices, but they can’t make new purchases. Of course, this means that you will need to turn on the wireless again if you want to make your own purchases.

Bottom Line

It is up to you to be aware of the possibilities when you use these devices. So far, the Kindle Fire provides the most problematic issues related to children making orders. Understand this before your let your children use your electronic devices, and make sure that you are able to monitor purchases as necessary.

(Photo: pchow98)

Kids & Money: Is It Too Easy for Kids to Purchase Apps? from personal finance blog Bargaineering.com.

Another consideration is that it is possible to purchase “regular” life insurance for your child. Some people choose to purchase whole life policies for their children. And, of course, many parents have riders attached to their own policies. These small insurance amounts are meant to help cover burial costs. Here are some things to consider as you determine whether or not to buy life insurance for your children:

Future Health Problems

Some health problems can prevent an adult from getting the life insurance coverage he or she needs at an affordable rate. The purchase of a whole life policy while your child is long can mean that he or she is already set for life insurance, and doesn’t need to worry about future health problem derailing efforts to receive affordable life insurance.

However, if you don’t have a family history of health issues like diabetes and more, it might not be worth it to insure your child young. Chances are that he or she will be able to obtain the life insurance he or she needs.

College Funding Needs

It used to be that getting life insurance for children was one way to “save” money for college. However, this is not the case so much anymore, since there are 529 plans and Coverdell ESAs to help parents save up for eventual college costs. Besides, the cash value in many of these insurance policies designed as college savings vehicles is usually so insignificant that it doesn’t make that much of a difference. You have to buy a large amount of coverage if you want to be able to effectively cash in the policy.

Instead, it might be a better idea to just find other college savings opportunities, rather than relying on an insurance policy to help pay for your child’s college.

Does Your Child Make Money?

For the most part, life insurance is actually supposed to protect families in the even that a wage earner passes on. In most families, children don’t qualify as wage earners. However, there are situations where the child does earn a living. This might be done through modeling, performing, or by some other means. In that case, life insurance for your child is a must. If your child is bringing in money, he or she should be insured so that your family is protected from a loss of income.

Riders on Your Insurance

Many parents simply find it easiest, and most cost-efficient, to add a rider to their own coverage. These riders, usually with between $1,000 and $5,000 worth of coverage, are designed to pay out if a child dies. This is money that can cover funeral expenses. That way, if your child unexpectedly passes on, you have the money available to cover some of the costs.

Whether or not you decide to insure your child is up to you. However, don’t be swayed by insurance salesmen that tell you that you will get life insurance for your child because you love them. Life insurance isn’t for the person covered, it’s for the people left behind. So, if you love your child, and care for his or her future, you’ll make sure your own coverage is adequate for the future.

(Photo: sophie.z.j)

Kids & Money: Should You Get Life Insurance for Your Child? from personal finance blog Bargaineering.com.

But is it a good idea to let him just blow his Christmas cash on whatever he wants once January rolls around? As always, the receipt of Christmas cash provides an opportunity to reinforce money lessons that we want our son to learn.

Christmas Cash is Treated Like Other Income

The first thing we do is make sure that he understands that Christmas cash is treated like any other income. As adults, when we receive money gifts from others, we contribute to our church, and we set money aside for savings. We set the example, and we expect our son to follow our lead.

We explain that even though the Christmas cash is a gift, it still needs to be treated like any other income he receives, whether it’s from allowance, 4-H ribbon money or odd jobs around the neighborhood. And that means he pays tithing and sets some of it aside for his long-term savings.

Recognizing that this type of windfall should be treated like other income is important. It continues to help your kids develop habits that, hopefully, will continue with them as they age.

Keep Spending in Check

Once the preliminaries are taken care of, my son immediately wants to spend his money. Studies show that people are more willing to spend money on pay day, when they have a new addition to the bank account, and children aren’t any different. Just looking at that pile of cash encourages them to spend.

Try to rein in that initial feeling of wanting to spend. Talk about what your child wants to buy, and why. If your child had a previous spending goal, that hasn’t been reached yet, ask if he or she has changed her mind. Just reminding my son how close his Christmas cash got him to reaching the amount he needed for a specific toy cooled his interest in spending on the latest thing to catch his fancy.

Sometimes, all your child needs is a reminder that he or she has other goals and interests. If your child decides, though, to spend the money anyway help him or her do it as wisely as possible. Insist that you comparison-shop to find the best prices first. And, don’t be afraid to let your child make a money mistake that will be regretted later. The fact that my son has spent money on things he didn’t really want in the past has helped avoid the same fate recently — as long as we provide gentle reminders on occasion.

We do, though, prevent him from spending everything he has. Just a few days ago, I showed my son my bank balance online. “It’s the end of the month. Did I spend everything in there? What happens if you end up needing the money for something else?” He thought for a moment. “I want to be ready,” he replied.

How do you handle Christmas money gifts your children receive?

(Photo: bfishadow)

Kids and Money: What To Do With Christmas Cash from personal finance blog Bargaineering.com.

At some point, though, it is no longer necessary for you to pay children an allowance. You have probably increased the amount of allowance you pay as your child grows. However, as your child begins to make his or her own money, you can start paying less — or even stop paying allowance altogether.

Does Your Child Still Need Money from You?

Your first determination to make is whether or not your child still needs money from you. When your child is younger, and his or her options for earning money are limited, money from you is important. However, older children begin getting jobs, and earning their own money. At that point, you can revisit your allowance policy.

An after school job can be a great way for teens to earn money. In many cases, your teen can earn more with such a job than he or she receives from you. Review your child’s income. Assess what expenses you expect him or her to pay. You can start encouraging your child to cover more of his or her expenses when he or she makes more money.

In some cases, your teen’s after school job may not provide enough money to completely cover what he or she is expected to pay. In those circumstances, you can continue providing an allowance, but explain that you will reduce the amount you pay, since your teen can supplement some of the money on his or her own.

Paying Allowance in College

My parents stopped paying me an allowance when I went to college. They stepped down what they gave me as I earned more from my job as a cashier at a craft store, and from teaching piano, and when I moved out, I was expected to be more responsible for my weekly expenses (I got a part-time job in the university cafeteria). However, in a way, my parents still gave me an allowance of sorts. While they didn’t give me a weekly amount, they did pay for my housing while I was at school. This eased matters for me, and I covered all my other expenses.

Other parents, though, still consider college as a “job,” and provide an allowance to help students cover their expenses. What you do depends on your priorities and preferences, and what you have agreed on with your student.

Bottom Line

At some point, though, you do need to stop paying an allowance. Whether you do this when you teen gets his or her first after school job, or whether you wait until after your child graduates form college, is up to you. If you want your child to become financially independent, at some point you have to stop giving them money, even if they “earn” it through chores.

(Photo: all in green)

Kids & Money: Deciding When to Stop Paying Allowance from personal finance blog Bargaineering.com.

Your child is more likely to be happy in the long run when he or she learns the value of money, understands that some things are worth waiting (and saving up) for, and that we don’t always get what we want. Giving your kids everything they ask for can lead to materialism, and it can set them up as unable to deal constructively with disappointment later in life.

How to Say No to Your Children

When you tell your child no, you need to be consistent in your delivery, and, sometimes, it helps to explain your reasoning. Some of the reasons you can give to your child include:

• As a family, you can’t afford it now.
• Your child is asking for a want, and he or she needs to save up and help pay for it.
• It might not be the best price, so you should wait and shop around.
• Your child recently received gifts or other items, and there is no need to get something new so soon.

As you do say no, be clear about your reasons. If you plan to let your child purchase his or her own “fun” items, talk about money, and how he or she can save up some money from allowance or extra jobs to purchase the item. My son knows that we are willing to buy books we consider useful, and worthwhile. However, we’re not big fans of Diary of a Wimpy Kid. So, my son knows that if he wants these books he will have to buy it himself.

Around the holidays, and shortly thereafter, we have a moratorium on buying anything — even if he uses his own money. He can buy something for someone else, but he can’t buy something for himself; he already has plenty of new things. And we follow the same rules. Mom and dad don’t buy new things for fun after the holidays, either. Making sure you live by the same rules is important when saying no to your kids. Show your children that you are content, and they will be more likely to be content as well.

No Means No

What becomes really difficult is when your child throws a tantrum. Most parents, understandably, will do anything to cut off the embarrassing behavior at once — including buying the disputed item. It is important, though, to stick to your guns. Otherwise, your children will use the tactics that work each time they want something. The one time my son threw a fit in the store, he was taken out to the car. My husband remained behind to finish the shopping while my son and I sat in the car and waited. We explained that if he couldn’t behave in the store, he wouldn’t have the privilege of joining us.

You don’t want to harp on the matter, though. Let your child know the rules, and then enforce them. Once you have carried out the consequence, there is no need to keep lecturing. That might foster resentment, and increase rebelliousness.

With a little conditioning, your children can learn the value of waiting to make purchases, and learn not to cause disturbances in the store.

What are your tips for saying no to your kids?

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Kids & Money: Saying No to Your Children from personal finance blog Bargaineering.com.

However, you might also want to provide something for the children in your life to open. As you consider your options, here are some ideas that can help you pick just the right gifts for your kids.

Elementary Age Children

When your kids are in elementary school, it’s fairly easy to go shopping for them. They’re wants are simple, and they often tell you what they want — and it’s usually affordable. (Plus, they are excited about getting gifts for others, too.) For younger children, consider getting small things. Action figures, doll clothes, age-appropriate books, movies, hand-held games, and even clothing can all be gifts your smaller children enjoy.

Get your child interested in making good money decisions by getting him or her a bank of some sort. It can be one that sorts coins, or has different chambers for different goals. Such a gift can be a fun way to help your child get started on the right financial track.

Teenagers

It becomes harder  to buy gifts for teenagers. However, there are a few things that teens are interested in. Some of the items you can get for teens include:

• Movie theater tickets
• Equipment for a hobby he or she enjoys
• Video game
• Framed print or poster of a favorite character, band or piece of artwork
• Covers for a cell phone, iPod or iPad
• Mobile device accessories for handheld gaming systems, tablets, phones and other devices
• Books
• Tickets to a concert or sporting event

You can also provide financial gifts to teens. Consider buying a teen stock in a company, or contributing to a 529 plan. These are financial gifts that can keep on giving in the future, as well as right now.

College Students

Once a child heads to college, his or her needs and preferences change. Consider purchasing something that makes living away from home a little easier. If there are savings books in the student’s college town, purchase one for him or her. You could also buy a single-cup coffee maker, or a hot cocoa maker. Docks for iPods/iPhones/iPads can also make great gifts. These usually come with speakers, and can be great for when the student is doing homework, or wants to wake up to specific music. Video game systems, video games, and subscriptions to services like Netflix and/or Gamefly can also make great Christmas gifts for the college student.

Financial gifts for college students might include investments, as well as help paying tuition for the next semester. Every little bit helps when you’re in college, and most college students appreciate the gesture.

What are your gift ideas for the kids in your life?

(Photo: chotda)

Kids & Money: Gift Ideas to Make Their Holiday Bright from personal finance blog Bargaineering.com.

Below are 12 ideas for handmade gifts that can add a personal touch to the holidays:

1. Napkin set: If you know how to embroider or cross-stitch, you can turn a package of plain, inexpensive napkins into something special. Add a monogram, or add a design according to a theme. This can also be done with hand towels or washcloths.
2. Bottled food: Recently, I bottled my own applesauce. You can also bottle salsa, pasta sauce, pie filling, preserves and other items. Tie ribbons around the jars to make them more attractive. You can also assemble gift baskets around the items. Include a loaf of fresh-baked bread with the preserves, or a bundle of gourmet pasta with the sauce.
3. Coasters: These are easy to make from tiles. Obtain four-inch ceramic tiles, an decorate them with an attractive pattern. Then, glue thick black felt to the bottom (to prevent scratches to home surfaces). My son recently made coasters from wood, and even created a simple holder for them. I use them each night for my class of water.
4. Hand warmers: These make great gifts. Use attractive material in wool, felt or cashmere. Follow the directions for making a simple beanbag, but instead of using the beans, make use of small ceramic pie weights. All that is required is that recipient microwave the warmer for a minute or two. It’s nice and warm and can be kept in a pocket to create a toasty space.
5. Decorative oil bottle: Clean an empty wine bottle thoroughly, and then paint it with an attractive design. Buy a pour spout for olive oil. Fill the bottle with the olive oil and put in the spout.
6. Teacup or seashell candle: All you need is wax, or leftovers from old candles, a wick, a couple drops of scent, and a container. You can use old teacups (garage sales and thrift stores are great sources), or seashells. Melt down the wax and add the scent, then add the wick.
7. Bread: Consider making different delicious breads. You can make herb bread, or you can make fruit breads. I like to make banana bread. Sometimes I add extra cinnamon, or I add chocolate chips, for a little treat. You can also make ciabatta bread and give it as a gift. Assemble gift baskets made from different types of mini-loaves.
8. Cake in a mug: Find an attractive mug, or find a plain mug and decorate it yourself. Add the dry ingredients for chocolate cake in a cup, and print or write instructions to complete the recipe on an attractive card. Perfect for kids to give their teachers.
9. Picture frame: Decorate a plain picture frame to be attractive and personal. Consider putting a photo of yourself and the recipient in the frame.
10. Truffles: Every year, I make truffles for our friends. They’re easy Oreo truffles, and I cover them with good chocolate. Instead of crushed cookie, I sprinkle crushed candy canes on top; nuts work well also. Buy attractive boxes to enhance their presentation.
11. Beautiful flowers: Buy an inexpensive flower pot, and decorate it for a personal touch. Plant something the recipient would enjoy, and present the gift.
12. Recipe book: Put together a recipe book with tasty recipes. My husband’s aunt did this one year, providing family recipes from my husband’s Italian grandmother. Make sure to leave room to add more recipes. This works well when gathered in an attractively decorated binder.

What are some of your homemade gift ideas?

(Photo: ecram1)

12 Handmade Gift Ideas for a Personal Christmas from personal finance blog Bargaineering.com.

As you get ready to wed — or even if you are already married — it’s a good idea to review your financial situation, and talk about the money. Make sure you’re on the same page, and try to avoid making these 6 money mistakes that could ruin your marriage:

1. Combining Finances Before You’re Ready

Some couples combine their finances because it’s what they think they are “supposed” to do. However, this can be problematic in some cases. You might not be ready to combine finances because of one spouse’s credit history, or for other reasons. Think about the situation, and decide what will work best for you. In some cases, it works to combine some accounts — for shared expenses — and keep some accounts separate.

2. Trying to Change Your Spouse’s Money Style

We all have different money styles. My husband and I are both spenders, but we like to spend our money on different things. I prefer experiences; he likes material possessions. In the past, it was hard for me not to be resentful when thinking about the places we could travel if we didn’t have a home full of clutter. However, trying to change him isn’t going to work. We can work through the differences, though, by acknowledging what’s important to the other person. Now, he gets a set amount he can spend on things, and I have money I can save up for travel, or other experiences. The goal should be to understand where your spouse is coming from, and then work out a plan that works for both of you.

3. Not Setting Shared Goals

One of the biggest money mistakes is a failure to set shared goals. Talk about what’s important to you, and then set goals that you can work on together. Whether it’s contributing to a retirement nest egg, or saving up for a cruise next year, it’s important to have money goals that draw you together. Talk about what you both want to accomplish, and look for things you can do together to reach your money goals.

4. Focusing Too Much on Stuff

Even though my husband thinks it’s fun to buy little character figures, he doesn’t focus too much on things. They don’t define him. They’re just fun things he likes to buy with his disposable income. A focus on things, or status, though, can be ruinous to a marriage. If you are more concerned with keeping up with the neighbors, or trying to look rich, rather than focusing on enriching your relationship, you will always be unhappy with what you have. That sort of materialism can result in debt, and strain in your marriage.

5. Forcing Traditional Roles

I have always been the primary breadwinner in our household. Before I started working from home, my husband cared for our son, staying home while I worked and he finished his degree. We could have had me stay home, as many traditional couples around us were doing, while my husband worked a job and went to school. But I was done with my degree, and my earning power was higher. So it made more sense for me to go to work. Don’t be so stuck in traditional roles that you give up opportunities to better your financial situation.

6. Keeping Money Secrets

Sometimes it’s called “financial infidelity.” No matter what name you give it, though, it’s a bad idea. Keeping money secrets from your spouse can result in problems later, especially in terms of trust. Be open about your finances, and let your spouse know what you are doing with the money.

What other money mistakes can ruin a marriage?

(Photo: MMarquit)

Six Marriage Killing Money Mistakes from personal finance blog Bargaineering.com.

Unfortunately, we are essentially selfish creatures. We have to learn gratitude. Chances are, you learned gratitude at some point, and your children have to learn it as well. You can improve your child’s ability to make better financial decisions, and live more fulfilling lives, if you encourage gratitude, and help them learn to be thankful:

Say “No”

When children aren’t thankful for what they have, they tend to ask for more stuff. Indeed, the more you give children, the less appreciative they might become. After all, if they always get what they want, it’s hard to be thankful for things. Instead, stuff becomes an entitlement. My son regularly asks if we can eat out. I tell him “no” regularly. But when I do say “yes” he appreciates our outing so much more, and often remembers to thank me.

Give Kids Chores to Do

How can your child appreciate all you do for him or her if there is no concept of the effort it takes? When your children do age-appropriate chores, it can help them understand that keeping the home nice takes effort. They will appreciate your efforts to cook dinner for them more if they have a gained a knowledge of the effort involved in such chores because they are used to gathering up the trash, or unloading the dishwasher.

Let Your Kids Give to Others

Encourage your children to give to the less fortunate, and make sure you talk about your own situation. As I went through some of our unneeded household goods, my son asked what I was doing. “We’re so lucky and blessed to have all of these things,” I said. “But we don’t need them all. We can give them to someone who might not have these things.” He was excited to go through his toys and look for some items to give as well, knowing that perhaps other children didn’t have as many toys.

But, it doesn’t have to involve donating items to the local thrift store. You can also do nice things for others, such as making soup to take to a sick friend. Have your child help you add ingredients. Talk about how great it is to give to others, and how grateful you are for your own health, and for the good friend that you will be visiting.

Write Thank-You Notes

Have your children write thank-you notes when they receive gifts. My son is old enough now that he can compose his own notes. We sit down and think about the gifts he received, and who they came from. Then, he composes a note discussing the gift, how much he likes it, and expressing gratitude.

Also, encourage your child to thank people for favors and gifts immediately. Of course, you have to do it yourself if you want your child to catch on. Setting an example of gratitude is essential. This is why I write thank-you notes for my own gifts when my son is around, and I am sure to say “please” and “thank you” at the dinner table, as well as when I ask my son to do something for me. When expressions of thankfulness and gratitude are part of your daily interactions, it teaches a valuable lesson.

How do you teach your children gratitude?

(Photo: woodleywonderworks)

Kids & Money: Teaching Gratitude from personal finance blog Bargaineering.com.

As you prepare to teach your children this important lesson, it wouldn’t hurt to refresh your own understanding of the concepts related to needs vs. wants. After all, sometimes we, as adults, also forget to make the distinction.

Needs or Wants?

Determining the difference between needs and wants can be a little difficult for children to understand — especially younger children. However, you do need to help your kids learn the distinction between needs and wants. Some of the items that constitute needs include:

• Shelter
• Nutritious food
• Adequate clothing
• Transportation to school

Help your child identify the items that fit into these categories. (For younger children, you can go through a magazine and cut out pictures and make two different collages: One of needs, and one of wants.) Good walking shoes, a bike or bus fare might fall into the category of transport to school. A warm jacket or coat falls into the category of adequate clothing. Talk about the items that your child needs to function properly at school, and to grow strong.

Then, discuss items that might be considered wants. While you might really enjoy items that qualify as wants, they are not things that you need for survival, nor are they items that your kids need to get to school, and to do well. Wants include:

• Designer label clothes
• Toys
• Junk food
• Video games
• Gadgets

Talk about how these things can be nice to have, but they aren’t necessary. It’s fun to eat candy, but it’s not nutritious food that can help you grow strong. It might be nice to have an expensive sweater, but a less expensive sweater will do the job — and cost much less. Discuss the importance of making sure needs are covered first. If there is money left for wants, then you can buy them. In some cases, there might be a little money left over, but not enough to buy what your child wants. In that situation, you can talk about saving up for things that they want. There are also plenty of online games that can help teach your kids about money.

My son knows that there are some things that he needs to do with his money. The rest goes in a jar for him to spend as he pleases. If he wants something bigger, like a video game, he knows he should save his discretionary money. But he knows that needs need to be taken care of first.

Setting a Good Example

Of course, in order to be effective in teaching your children the difference between needs and wants, you need to set a good example. We have family discussions about what we should spend our money on. Our son sees that we spend money on food and gas for the car before we buy other items. He also watched as we saved up our “wants” money to have our driveway finished, before we decided to buy an iPad. Your kids have to see you prioritizing your spending if you expect them to learn lessons about distinguishing between needs and wants.

(Photo: Brenda Anderson)

Kids & Money: Teaching Needs vs. Wants from personal finance blog Bargaineering.com.

If you are trying to figure out how to help your kids get on the right track when it comes to money, here are some books to consider as you help reinforce lessons that your kids need to learn about money:

Ultimate Kids’ Money Book

Neale S. Godfrey offers this great book about money, aimed at children ages seven and up. The book is full of fun illustrations that help make different aspects of money clearer. The Ultimate Kids’ Money Book even approaches such subjects as investing and credit. The bartering section is fun — I’m actually excited to see what my son will try to trade for…

Alexander, Who Used to Be Rich Last Sunday

One of my favorite books growing up was Alexander and the Terrible, Horrible, No Good, Very Bad Day. This book isn’t as information as the Ultimate book, but Judith Viorst makes a good point that kids can relate to. Alexander starts with a dollar, but somehow these vast riches are quickly frittered away. Alexander, Who Used to Be Rich Last Sunday is a great read for children, and a good way to teach a valuable lesson; your kids may not even fully realize that they are learning something!

Growing Money

If you are having trouble expounding on the concepts of compound interest and investing to your children, Growing Money might be able to help. Suitable for ages eight and up, Gail Karlitz and Debbie Honig offer simple explanations that make sense. Get your kids interested in investing, and maybe learn a few things yourself. A great guide that will help your children understand, at an early age, how important it is to put your money to work for you.

The Everything Kids’ Money Book

Brette McWhorter Sember takes a look at how kids can earn money, save it, and put it to work. This might be suitable for children who are more in the nine-year-old range, especially if they like history. This book presents monetary history, and offers facts and information that even adults can enjoy. The Everything Kids’ Money Book is a great, basic handbook written in a way that is entertaining and accessible to children.

Munny Journey

This is kind of a fun idea: A keepsake journal for money. The idea is to start your child out with this money journal. It starts with baby’s birth, and helps parents allocate money to help children achieve financial freedom. And, the keepsake nature of the book encourages children to get interested, and learn important concepts as they get older. Munny Journey is fun idea for new parents.

What are your favorite money books for kids?

(Photo: NatalieMaynor)

Kids & Money: Books To Help Your Child Learn About Money from personal finance blog Bargaineering.com.

Savvy shopping is about getting the best bang for your buck — and you do your kids a disservice if you don’t teach them how to look for the best bargains. Here are some of the ways we help our son learn bargain hunting:

Set an Example

Before we make an important purchase, my husband and I do our research, looking for the best deals. We get Consumer Reports magazine, and we make a point of looking through reviews, and talking about the merits of different products and brands where our son can hear. He also sees us looking online, through sales fliers, and at stores. We do price comparisons, and talk about good value versus cheapest price. All of this sets the tone in our home — one that involves bargain hunting.

Help Your Child with Purchases

While our son knows we like to look for the best bargains, we also believe that he needs to put the concepts learned into practice. This means we help him make purchases. Recently, at the store, our son saw a Lego set he wanted. He was ready to buy it then and there. “Wait a minute,” counseled my husband, “you could spend $15 on that right now. But shouldn’t we go home and look online first?”

My son agreed, and we went home. Together, they looked for the set online. There is was, for $10.50. My son was excited to see that he could get it for less. It meant that he would have more money left over for something else. Now, he reminds us, while we are shopping, to do a price check online. “Don’t forget to look online first!”

While we didn’t get into the details of shipping costs with my son, older children should be taught to consider this expense. The Lego set we found came with a $3 shipping charge. At $13.50, that was still cheaper than the price in the store. Some things, though, become more expensive with the shipping charge. When teaching your older children about price comparison, be sure to help them compare the price with shipping, sales tax, and other fees.

Better Quality & Shopping Local

Of course, sometimes it’s not just about the cheapest price. Sometimes it’s about better value, and getting the best bang for your buck. Older kids will understand value and craftsmanship, and the importance of, perhaps, paying a little more for something of better quality.

Additionally, it can be worth it to teach your children that sometimes it’s worth it to shop locally, helping local businesses. While you don’t want to pay a great deal more, there is nothing wrong with frequenting local businesses and showing your children that sometimes cheap isn’t the only thing.

How do you teach your children about bargain hunting?

(Photo: sgrace)

Kids & Money: Teach Your Children to Shop for Bargains from personal finance blog Bargaineering.com.

As a result, it is difficult for people to get excited about spending money on expensive family choices.

Lower Birth Rate

Recently, the cost of raising a child became big news. Supposedly, it costs more than $200,000 for the average family to raise a child from birth to age 18. That doesn’t even include the cost of college! With those costs in mind, many people are putting off having children. The year 2007, before the financial crisis, was a record high year for births in the United States. However, that number began declining in 2008, and has steadily declined since. According to a report from the Pew research center, the states with the highest levels of unemployment also had the biggest declines in birth rate. Many people are looking at their finances, and deciding that they need to make some changes before having kids — whether it’s for the first time, or whether it’s adding siblings to the family.

Fewer Marriages

My wedding didn’t cost much, but I know people who have spent anywhere between $10,000 and $30,000 for a wedding. When you consider that you are spending the equivalent of buying a car for a single day out of your life, it can be daunting to decide to tie the knot during tough economic times. Indeed, since the recession started, the marriage rate in the U.S. has dropped by 10%. That’s a fairly significant drop, when you think about it.

Combining households (whether or not you get married) could be a real money saver, though. Instead of two separate living arrangements, you only have one housing payment between you; sell your excess furniture and household items, and make a few bucks besides. It’s something to think about if you and your partner have separate living arrangements.

Dropping Divorce Rate

Not only are people putting off marriage and children, but they are also putting off divorce because of the economy. It’s no secret that divorce is expensive. There are attorneys (at least two of them!) to pay, and any number of other expenses that can crop up. Many couples considering divorce are putting it off because of the costs involved in the process itself, but also because of other costs that you might not think about until the divorce is underway. Splitting a household in two can get pricey.

And, of course, there is the house to consider. In many cases, a home is sold in a divorce and the proceeds divided. However, in a poor real real estate market, it’s difficult to sell the house — and get a good price. Much better to try to work out your issues, or at least put off the divorce, until the house can fetch a higher price.

Bottom Line

The tough economy really is affecting the way we live our lives. While financial pressures can take a toll on relationships, they also determine what life decisions we are likely to make. The more expensive the decision, the more likely we are to wait on it.

Have your family planning and relationships been altered by the economy?

(Photo: Chimpr)

Tough Economy = Fewer Births, Marriages & Divorce Rates from personal finance blog Bargaineering.com.

The good news is that the Internet offers a number of opportunities for your kids to learn valuable skills — while playing games. My son loves being online, and he thinks these money games are a blast. So, while you still want to teach your kids about money yourself, you can supplement, and help them get the idea, with the help of these online games:

1. Mad Money: PBS kids offers this game, designed to help kids learn about how to save up for purchases, and make spending decisions. They can choose from sneakers, a video game console, a DVD or a concert ticket to get started. They get an “allowance” every seven “days”, and have a list of expenses (and unexpected spending) and they need to spend wisely, and look for money making opportunities, if they want to have enough to reach the goal.
2. Counting Coins: This is a basic game, with three levels. Children use the mouse to drag coins onto the table to get the right amount. A good game for teaching children the relative value of coins, and how to count them.
3. Money Flashcards: Another counting game, this one shows an amount of money, in bills and coins, and has you count it. Keeps score, so you can set up a reward system to encourage your child to do well.
4. H.I.P. Pocket Change: The U.S. Mint has a number of games that can help children learn concepts related to money. A lot of the games and activities are designed to help children recognize different coins, and some of them are more puzzles, so your kids might not get all money lessons, but it can familiarize kids with money.
5. Practical Money Skills: Visa has put together these different games based around learning about money, and developing financial knowledge. There are games based on sports, basic money counters, a fun road trip game, and a money quiz show. The site offers a wide variety of games for various age groups.
6. Reality Check: Do your kids have realistic expectations for their lifestyle costs? JumpStart offers a calculator that can help teens get an idea of what they’ll need to make to live the life they want as a young single. It comes with the hour rate you need to earn to support the lifestyle, and possible vocations that can help them reach their goals. Perhaps it’s a wake up call for some kids.
7. It All Ads Up: Practical games and management that can help your kids learn about credit management, saving up for things, and other important money concepts.
8. Stock Game: This is a great game to help teens get practice with investing. You can learn how to invest, and there is a great education section that can help kids learn the basics before getting started.

(Photo: PBS)

Kids & Money: Online Games Make Learning about Money Fun from personal finance blog Bargaineering.com.

You can go to the USDA web site and use their Cost of Raising a Child Calculator to get a more personalized view of what it should cost to raise a child. According to my income and location, the USDA thinks I should be spending $26,463 a year on my son. I’m pretty sure I’m not spending that much. But I thought I’d work it out anyway.

How Much Am I Spending to Raise My Son?

Looking at the USDA numbers is kind of daunting. Costs listed include housing, food, transportation, clothing, health care, child care and education and other. The biggest expense on the list is housing, which I think is kind of silly, since my husband and I would probably live in the same size house, regardless of whether we had our son or not. At any rate, here is how we stack up so far this year.

I used actual figures for the first three quarters of the year, and then estimated fourth quarter spending based on our current pace, assuming it stays the same (although I bet we actually cut back a little). The only exception is “other,” where I include toys, since my son’s birthday and Christmas are both coming up; I based this on last year’s spending. Also, since I work from home, and have no need of child care beyond babysitting when my husband and I go out, I include my son’s summer camps in that category, as well as sports activities and music lessons. For food, health care, housing (I included utilities) and transportation, I took my family’s total costs and divided them by three to get the individual amount for my son.

That’s more than I expected it to cost, and more than I spend last year on my son, but he is also involved in more activities this year. And we clearly spend a substantial amount of money eating out, which is why the average food cost is higher. However, I am skeptical that my son is eating as much as my husband and myself at this point (and he doesn’t eat out with us each time, even though I included all our restaurant visits in food costs), and, as I mentioned before, my son really isn’t adding to our housing costs. Without housing costs added in for my son, the yearly spending on him drops to being on track for $10,751 this year.

It’s clear that spending on my son doesn’t have to be what the USDA and others expect. How much do you spend on your kids?

Kids & Money: How Much Does It Cost to Raise Your Child? from personal finance blog Bargaineering.com.