Who needs Suze Orman when we have MTS?  :wink:

In fact, I think they are just starting to talk about things like how to use credit cards responsibly and responsible spending, and I still think the media is getting it mostly wrong. It's not about the external, small band-aid things like cutting back on your dry cleaning or how many fresh flowers you buy, it's about making a budget and figuring out what's coming in and what's going out each month and starting with the fixed expenses, then figuring out what's extraneous above that. And if the fixed isn't working and more is required to go out than is coming in, altering your situation even if it's uncomfortable - getting rid of a car or cars, going back to an apartment, taking 2nd jobs, whatever. Nobody is talking about that, they're just spewing about switching to a cheaper monthly plan for your cell phone or whatever and it makes me want to pull my hair out.

AMEN!!! Preach on Sistah RnR!!! Preach!!

 

I will be the first to admit that I didn't have this for many, many years. I would have had no clue how to do something like this nor an understanding of why it was important.  Back when I was living literally check to check and on food stamps, it just seemed like a) there was no point, as the picture was bleak and overwhelming and depressing and b) there was no point, because every bit of money I had went out the door as soon as it came in.  I had no idea what recourse there was for different things, that I could have (for example) qualified for medicare or medicaid to help pay for all my medical expenses instead of putting them on credit cards, that I probably could have qualified as disabled and gotten further assistance, that I could call places I had loans or credit cards and negotiate with them, or at least transfer balances off of cards with high interest and work on repayment plans for them in a more logical way, and on and on.  All I knew was if I had an extra $20 to my name after the bills were paid, I spent it because that was the only "fun" I had.  There are a lot of people living like that.

Who needs Suze Orman when we have MTS?  :wink:

 

I am a cheap bitch!  On the surface it doesn't appear that way, but I'm a penny pincher.

I never gave Suze Orman much credence as I cannot STAND listening to her in person but I checked out of the library her book "Young, Fabulous and Broke" a couple of years ago, even though I was over the age group specified for her criteria of "young," and it was a really, really easy to read and valuable book.  I recommend it to anyone under 40.

 

I will be the first to admit that I didn't have this for many, many years. I would have had no clue how to do something like this nor an understanding of why it was important.  Back when I was living literally check to check and on food stamps, it just seemed like a) there was no point, as the picture was bleak and overwhelming and depressing and b) there was no point, because every bit of money I had went out the door as soon as it came in.  I had no idea what recourse there was for different things, that I could have (for example) qualified for medicare or medicaid to help pay for all my medical expenses instead of putting them on credit cards, that I probably could have qualified as disabled and gotten further assistance, that I could call places I had loans or credit cards and negotiate with them, or at least transfer balances off of cards with high interest and work on repayment plans for them in a more logical way, and on and on.  All I knew was if I had an extra $20 to my name after the bills were paid, I spent it because that was the only "fun" I had.  There are a lot of people living like that.

and when did you "learn" that there were alternatives?  What caused you to change the way you live?

I never gave Suze Orman much credence as I cannot STAND listening to her in person but I checked out of the library her book "Young, Fabulous and Broke" a couple of years ago, even though I was over the age group specified for her criteria of "young," and it was a really, really easy to read and valuable book.  I recommend it to anyone under 40.

I agree.  In person she isn't as "cocky" as she appears on TV.  If you see her speak in person, she makes you see things in a whole different way.  I don't agree that here "one size fits all" approach is right, but she gives fundamental guidance that many people need.

 

 

and when did you "learn" that there were alternatives? What caused you to change the way you live?

 

Honestly there wasn't really a light bulb moment, these were things I learned as a result of getting older, of the various people I met at all the different jobs I've had, life experience, etc.  I think there has to be a better way to teach young people about these types of things.  It's almost a closing the barn door after the horse is gone thing to learn how to be responsible about money at like, age 35, when so much damage has been done before then. 

and when did you "learn" that there were alternatives?  What caused you to change the way you live?

 

Honestly there wasn't really a light bulb moment, these were things I learned as a result of getting older, of the various people I met at all the different jobs I've had, life experience, etc.  I think there has to be a better way to teach young people about these types of things. It's almost a closing the barn door after the horse is gone thing to learn how to be responsible about money at like, age 35, when so much damage has been done before then. 

 

agree again!

I think everybody in high school should be required to take a class on compound interest. That would have a much greater effect than a personal finance class that focuses on budgeting and the like.

 

Just pound it into their young, impressionable minds. If you save that $300 instead of buying a PS3, you could have $12,000 when you're in your 50's... Let them work out the rest.

 

Let your money work for you. The only way to do that is to SAVE; early and as much as you possibly can. Time is on your side when you're young.

I think everybody in high school should be required to take a class on compound interest. That would have a much greater effect than a personal finance class that focuses on budgeting and the like.

 

Just pound it into their young, impressionable minds. If you save that $300 instead of buying a PS3, you could have $12,000 when you're in your 50's... Let them work out the rest.

 

Let your money work for you. The only way to do that is to SAVE; early and as much as you possibly can. Time is on your side when you're young.

Yes, lawd!!!  Thats what I'm talking about.

 

If you company offers a 401k, have them take out money now!  You think you need it in hand now, but you dont.

free personal financial classes for the masses would get more "bang for the buck" from the Gov't than anything else

Just pound it into their young, impressionable minds. If you save that $300 instead of buying a PS3, you could have $12,000 when you're in your 50's... Let them work out the rest.

 

I respectfully but completely disagree.  This would have meant NOTHING to me in high school.  I never intended to live much past 30 and always figured I would "figure out what to do" about money and retirement later on.  Youngsters are generally not at all interested in something like planning for retirement, many just cannot seriously grasp the concept that a) they will be alive that long and b) they will not just otherwise be magically successful in the career of their choice, whereby money will not be an issue so they don't need to worry about it now.  If someone would have started talking to me about "but, in your 50s and 60s" I would have been all LA-LA-LA-I-CAN'T-HEAR-YOU.

 

But showing someone a simple budget spreadsheet and how to keep track of what's going in and what's coming out, and talking about how to change those numbers and what happens if you don't, that would have been interesting.  You could include it in courses about how to plan for college living or even in first year of college classes.  I mean, that's when most people first start looking at $ between allocating money for books, coming up with rent or room and board money or whatever.

Let your money work for you. The only way to do that is to SAVE; early and as much as you possibly can. Time is on your side when you're young.

Yes, lawd!!!  Thats what I'm talking about.

 

If you company offers a 401k, have them take out money now!  You think you need it in hand now, but you dont.

 

Isn't this just like assuming that real estate will always increase in value?  I'm not saying 401K's are a bad idea (I contribute the max to mine), but there's no guarantee the 401K will increase in value over a given time period, let alon keep up with inflation.  I sure would have been better off with the money in hand in the last 9 months than contribute to my failing 401K.

I personally wouldn't mind seeing the government clamp down even harder on credit card companies.  Specifically limit credit lines to 1/10th of annual income, instead of 90% of annual income!  There's no reason someone like me, a year out of grad school, should have had a $25K credit limit when I probably made under $30K that first year. People addicted to credit cards aren't forced to make a change until they hit their $20K-$30K-$40K limits.  If the limit had been $15K, they would have changed then.  If the limit had been $5K, they would have changed then. 

 

Just pound it into their young, impressionable minds. If you save that $300 instead of buying a PS3, you could have $12,000 when you're in your 50's... Let them work out the rest.

 

I respectfully but completely disagree.  This would have meant NOTHING to me in high school.  I never intended to live much past 30 and always figured I would "figure out what to do" about money and retirement later on.  Youngsters are generally not at all interested in something like planning for retirement, many just cannot seriously grasp the concept that a) they will be alive that long and b) they will not just otherwise be magically successful in the career of their choice, whereby money will not be an issue so they don't need to worry about it now.  If someone would have started talking to me about "but, in your 50s and 60s" I would have been all LA-LA-LA-I-CAN'T-HEAR-YOU.

 

But showing someone a simple budget spreadsheet and how to keep track of what's going in and what's coming out, and talking about how to change those numbers and what happens if you don't, that would have been interesting.  You could include it in courses about how to plan for college living or even in first year of college classes.  I mean, that's when most people first start looking at $ between allocating money for books, coming up with rent or room and board money or whatever.

 

I THINK IT SHOULD START WITH YOUR FIRST JOB....ALLOWANCE.

 

That how my brother and I learned.  We did X we were paid X.  My parents took us to the bank to open bank accounts.  I still remember dragging my giant bottle of change to Society bank and the teller counted every penny.  Imagine doing that for 7 kids.  LOL

Let your money work for you. The only way to do that is to SAVE; early and as much as you possibly can. Time is on your side when you're young.

Yes, lawd!!!  Thats what I'm talking about.

 

If you company offers a 401k, have them take out money now!  You think you need it in hand now, but you dont.

 

Isn't this just like assuming that real estate will always increase in value?  I'm not saying 401K's are a bad idea (I contribute the max to mine), but there's no guarantee the 401K will increase in value over a given time period, let alon keep up with inflation.  I sure would have been better off with the money in hand in the last 9 months than contribute to my failing 401K.

Is tax free money.  You wont touch it.

I personally wouldn't mind seeing the government clamp down even harder on credit card companies.  Specifically limit credit lines to 1/10th of annual income, instead of 90% of annual income!  There's no reason someone like me, a year out of grad school, should have had a $25K credit limit when I probably made under $30K that first year. People addicted to credit cards aren't forced to make a change until they hit their $20K-$30K-$40K limits.  If the limit had been $15K, they would have changed then.  If the limit had been $5K, they would have changed then. 

 

 

Thats what I don't understand, as with mortgages, how can someone walk up to a credit card service center, fill out an application, then get caught up.

 

How do you justify opening a Saks account, when you make $35k annually.  Your first purchase is 5k, you get the bill and pay the minimum.  The interest is higher than the minimum payment.  I dont understand the thinking.

How do you justify opening a Saks account, when you make $35k annually. Your first purchase is 5k, you get the bill and pay the minimum. The interest is higher than the minimum payment. I dont understand the thinking.

 

Because people think they "deserve" something "nice" and to have clothes like your peers.  People DO talk about you if you don't fit in, and that includes clothes.  I understand this feeling, it's hard to swim upstream and get your clothes from Marshall's and TJ Maxx when all the girls in your office have Betsey Johnson and BCBG suits, and some of the stuff at TJ's ain't cheap.  So you figure, well, the only way I can do this is to splurge and get several nice things, and I will pay them off later once I'm established and am making more money.

How do you justify opening a Saks account, when you make $35k annually.  Your first purchase is 5k, you get the bill and pay the minimum.  The interest is higher than the minimum payment.  I dont understand the thinking.

 

Because people think they "deserve" something "nice" and to have clothes like your peers.  People DO talk about you if you don't fit in, and that includes clothes.  I understand this feeling, it's hard to swim upstream and get your clothes from Marshall's and TJ Maxx when all the girls in your office have Betsey Johnson and BCBG suits, and some of the stuff at TJ's ain't cheap.  So you figure, well, the only way I can do this is to splurge and get several nice things, and I will pay them off later once I'm established and am making more money.

 

Honey, I comb the racks at TJ Saks, you can find some great stuff there.  Also, as I said earlier, just because you feel you "deserve" it, do you need it?

You know I hear you on that, I'm just explaining how people think.  When you are down and out financially, you're aware that you really cannot afford ANYTHING, so what's the difference?  If I buy a $20 dress or $300 worth of clothing, I can't afford either one so I may as well buy the clothes and at least look good and not be made fun of at work.  You can't explain to your co-workers that you can't afford to buy new shoes.  As someone who has been talked to about not having enough "dressy" clothes for work or having shabby looking clothes for that particular workplace, it's tough to say you don't "need" these things when how you are perceived on the job is directly tied to it.  Plus there are many jobs where you have a required uniform, and it doesn't matter if you can't afford it, you have to pay for it.  If I had all the $ back I had to spend on a particular type of work shoe or a broadcloth oxford or the store brand's black polo or black penny loafers as that's the only acceptable shoe, well, you get the drift.  Many of the jobs I had when I first got out of college were those that required a uniform and you have to buy whatever they tell you to buy, and when you don't have the $, you charge it. 

 

It really depends on the type of job you have.  What you wear to work at a university is a lot different than what's acceptable when you are an office temp and get assigned to places like law firms and accounting firms.

You know I hear you on that, I'm just explaining how people think.  When you are down and out financially, you're aware that you really cannot afford ANYTHING, so what's the difference?  If I buy a $20 dress or $300 worth of clothing, I can't afford either one so I may as well buy the clothes and at least look good and not be made fun of at work.  You can't explain to your co-workers that you can't afford to buy new shoes.  As someone who has been talked to about not having enough "dressy" clothes for work or having shabby looking clothes for that particular workplace, it's tough to say you don't "need" these things when how you are perceived on the job is directly tied to it.  Plus there are many jobs where you have a required uniform, and it doesn't matter if you can't afford it, you have to pay for it.  If I had all the $ back I had to spend on a particular type of work shoe or a broadcloth oxford or the store brand's black polo or black penny loafers as that's the only acceptable shoe, well, you get the drift.  Many of the jobs I had when I first got out of college were those that required a uniform and you have to buy whatever they tell you to buy, and when you don't have the $, you charge it. 

 

It really depends on the type of job you have.  What you wear to work at a university is a lot different than what's acceptable when you are an office temp and get assigned to places like law firms and accounting firms.

 

I didnt mean you, i just meant those people you describe.  he he he he

I THINK IT SHOULD START WITH YOUR FIRST JOB....ALLOWANCE.

 

That how my brother and I learned. We did X we were paid X. My parents took us to the bank to open bank accounts. I still remember dragging my giant bottle of change to Society bank and the teller counted every penny. Imagine doing that for 7 kids. LOL

 

My parents tried to do the same with my brother and I. They started an account for each of us when we were born and tossed the cash that came in congratulations cards at our births into the account. (Gotta love having relatives on the other side of an ocean.) After we were able to do some chores, half our allowance was expected to be put in the bank account until we were old enough to be able to get a job. At that point we were still expected to put some money into the bank everytime we got paid.

 

I'm pretty sure I was the only one of my friends with 10 grand in the bank when I turned 16, but by then I'd figured out how interest worked, so I only spent $500 on my first car.

 

My wife and I did the same thing with our little tax exemptions, and they've each got a couple hundred dollars collecting interest now. Every month they get their own bank statement telling them how their savings is doing. At the moment those bank statements just get colored on, but in a few years the kids will get a good explanation of what they mean.

Is tax free money. You wont touch it.

 

No, it's tax DEFERRED.  You will pay taxes on it at retirement.  And there's no guarantee the tax rate won't be higher or that you won't be in a higher tax bracket when you retire than you are when you start working for a low salary.  Now I'm not saying that it's not a good idea to have a 401K, but I'm not so sure that it's the magic answer to growing your wealth either.  There are some valid reasons to not contribute the max (or at all for) to a 401K for a while.  For instance, if I could have predicted what would happen to my money I've contributed so far, I would have been better off paying down the principal on my home.  I could have saved well over $100K in the long run on taxes on my loan, and instead saw over half of what I contributed squandered away in investments that tanked.  Even if it was "free money" (tax-free that is) I would have rathered paid the 25-30% in taxes on it and paid off debt with it and effectively gained by the same percentage as what I would have been paying on that loan, rather than losing.

 

Now there is some "free money" involved with 401K's and that's if you have "employer matching".

I too remember having a bank account when I was younger.  It also was nice having the bank w/i an easy bike ride.  Growing up in the far flung suburbs can kinda destroy that ability but I got lucky.  My parents actually made each of us put money in a CD, this really brought home the compounding interest.  Although I was never disciplined enough to accumulate 10K.  Although I may have, college life quickly ruined anything I had saved, I had thought that if I had enough saved and worked each summer I could not have to work while in school.  Didn't quite work out that way, but those first 3 semesters w/o working was nice.

I THINK IT SHOULD START WITH YOUR FIRST JOB....ALLOWANCE.

 

That how my brother and I learned.  We did X we were paid X.  My parents took us to the bank to open bank accounts.  I still remember dragging my giant bottle of change to Society bank and the teller counted every penny.  Imagine doing that for 7 kids.  LOL

 

My parents tried to do the same with my brother and I. They started an account for each of us when we were born and tossed the cash that came in congratulations cards at our births into the account. (Gotta love having relatives on the other side of an ocean.) After we were able to do some chores, half our allowance was expected to be put in the bank account until we were old enough to be able to get a job. At that point we were still expected to put some money into the bank everytime we got paid.

 

I'm pretty sure I was the only one of my friends with 10 grand in the bank when I turned 16, but by then I'd figured out how interest worked, so I only spent $500 on my first car.

 

My wife and I did the same thing with our little tax exemptions, and they've each got a couple hundred dollars collecting interest now. Every month they get their own bank statement telling them how their savings is doing. At the moment those bank statements just get colored on, but in a few years the kids will get a good explanation of what they mean.

 

We had to put part of our allowance in the bank as well, gifts and stuff like that also went into the bank.

 

This is the first time I've admitted this and my brother is probably going to kill me, but when each of my nephews and nieces were born I opened up an account in their names and have been depositing about $500 in each monthly.  I want them to have a nice cushion to start of life at 25.

 

I'm anal, I have accounts for everything.  A housekeeping/maintenance/basic utilities, for each house; one for renovation projects; one for savings; one for investments; an emergency fund and a Xmas shopping fund.  I've set them up that I can't make an ATM deposit from any, I need to go into the bank to physically withdraw funds.

Is tax free money.  You wont touch it.

 

No, it's tax DEFERRED.  You will pay taxes on it at retirement.  And there's no guarantee the tax rate won't be higher or that you won't be in a higher tax bracket when you retire than you are when you start working for a low salary.  Now I'm not saying that it's not a good idea to have a 401K, but I'm not so sure that it's the magic answer to growing your wealth either.  There are some valid reasons to not contribute the max (or at all for) to a 401K for a while.  For instance, if I could have predicted what would happen to my money I've contributed so far, I would have been better off paying down the principal on my home.  I could have saved well over $100K in the long run on taxes on my loan, and instead saw over half of what I contributed squandered away in investments that tanked.  Even if it was "free money" (tax-free that is) I would have rathered paid the 25-30% in taxes on it and paid off debt with it and effectively gained by the same percentage as what I would have been paying on that loan, rather than losing.

 

Now there is some "free money" involved with 401K's and that's if you have "employer matching".

 

OK...mr. technical  lol  :-P :-P

 

I think a 401k is a good thing, but each individual is has his/her own needs.  Ive only worked at company's who had "employee matching".

 

You could also open a high yield savings.

 

I just believe everyone should have a plan.  Its free to go into your bank and speak with a banker and set up some sort of savings plan/advice.  As things change, it call also be altered.

I'm pretty sure I was the only one of my friends with 10 grand in the bank when I turned 16, but by then I'd figured out how interest worked, so I only spent $500 on my first car.

 

Jesus H Christ WTF kind of allowance did you get?  I got a QUARTER every other week!

Ha, I actually had about $5k and never received a penny for allowance.  I caddied since I was 12.  Of course, nearly everything I earned from age 12 through age 22 went towards paying for college.

I'm pretty sure I was the only one of my friends with 10 grand in the bank when I turned 16, but by then I'd figured out how interest worked, so I only spent $500 on my first car.

 

Jesus H Christ WTF kind of allowance did you get?  I got a QUARTER every other week!

a Quater?  Girlfriend, you needed a negotiator!  lol

Now there is some "free money" involved with 401K's and that's if you have "employer matching".

 

Bingo.

 

If your company matches your contributions, you need to do everything you can to get the full match.  So if your company puts in 3%, don't put in 2%, you're leaving money on the table.

 

After that, the best place, especially if you're under the age of 30, is a Roth IRA. That truly is tax free since you put in after-tax money. Only if you're maxing out your Roth should you go back and put more in your 401k. There is a thing called a Roth 401k but I don't know much about it.

 

My employer matches a full 7% on our 401k's, and then kicks in an additional 10% of our pay every year as 'profit sharing.'  :clap:

I'm pretty sure I was the only one of my friends with 10 grand in the bank when I turned 16, but by then I'd figured out how interest worked, so I only spent $500 on my first car.

 

Jesus H Christ WTF kind of allowance did you get? I got a QUARTER every other week!

a Quater? Girlfriend, you needed a negotiator! lol

 

We were broke, yo.

Now there is some "free money" involved with 401K's and that's if you have "employer matching".

 

Bingo.

 

If your company matches your contributions, you need to do everything you can to get the full match.  So if your company puts in 3%, don't put in 2%, you're leaving money on the table.

 

After that, the best place, especially if you're under the age of 30, is a Roth IRA. That truly is tax free since you put in after-tax money. Only if you're maxing out your Roth should you go back and put more in your 401k. There is a thing called a Roth 401k but I don't know much about it.

 

My employer matches a full 7% on our 401k's, and then kicks in an additional 10% of our pay every year as 'profit sharing.'   :clap:

 

Wow, I need to get a job there.  The last two places I have worked match 1/3 up to 6% (so they contribute up to 2%).

I'm pretty sure I was the only one of my friends with 10 grand in the bank when I turned 16, but by then I'd figured out how interest worked, so I only spent $500 on my first car.

 

Jesus H Christ WTF kind of allowance did you get?  I got a QUARTER every other week!

 

I think I got $5 every month in allowance. I had 10 grand when I turned 16 because I worked weekends and summers starting at 13. $5 per hour (under the table and thus tax free) at the horse stable around the corner from my house, plus no one minded if we flirted with the cute girls that came there for horse riding lessons. :wink:

There is a thing called a Roth 401k but I don't know much about it.

 

A Roth 401k is an employer provided plan, with or without matching funds, like a 401k, except that it uses after tax funds like a Roth IRA. They're somewhat new still (the last 3 or so years) so most employers haven't started offering them yet.

I think I got $5 every month in allowance. I had 10 grand when I turned 16 because I worked weekends and summers starting at 13. $5 per hour (under the table and thus tax free) at the horse stable around the corner from my house, plus no one minded if we flirted with the cute girls that came there for horse riding lessons. :wink:

 

Man, I wish I'd have had somewhere like that I could have worked. 

I got $1/week. My first hourly job at age 13 was checking membership cards at a swimming pool, which paid $2.50/hr.  You made $12.50 per shift before taxes.  Sometimes you'd work "a double", which was huge money and a hard day of sitting in a lawn chair talking to every girl who came through. 

Wow... I know I'm not alone in this but my parents taught me the exact thing the akron public schools did about money... how to spend...when I left.. Fell flat on my face.. Had to pick myself up and discipline..discipline..discipline!!!

 

It wasn't easy at all but I'm comfortable for now.. Like I said earlier.. That will change..

 

I was engaged to a barbie doll that was always at a mall (kenwood) with her chihuahua in a stroller.. Glad I'm out of that.. I've saved a lot of money.. Less stress as well. Didn't even switch to geico.. Next woman I pick will NOT be high maintainence!!

 

I miss the chihuahua!!

Wow... I know I'm not alone in this but my parents taught me the exact thing the akron public schools did about money... how to spend...when I left.. Fell flat on my face.. Had to pick myself up and discipline..discipline..discipline!!!

 

It wasn't easy at all but I'm comfortable for now.. Like I said earlier.. That will change..

 

I was engaged to a barbie doll that was always at a mall (kenwood) with her chihuahua in a stroller.. Glad I'm out of that.. I've saved a lot of money.. Less stress as well. Didn't even switch to geico.. Next woman I pick will NOT be high maintainence!!

 

I miss the chihuahua!!

 

Like you said, "you picked".  Didn't Barbie have her own money?  Or are you a sugar daddy?

This is the first time I've admitted this and my brother is probably going to kill me, but when each of my nephews and nieces were born I opened up an account in their names and have been depositing about $500 in each monthly. I want them to have a nice cushion to start of life at 25.

 

Weren't you just talking about how money means so much more to youj when you earn it (do X, receive X)?  Hopefully your nephews and nieces will fully appreciate it, but I know a few people that had this luxury growing up, and it kind of devalues their concept of money when they receive this much "free money".

This is the first time I've admitted this and my brother is probably going to kill me, but when each of my nephews and nieces were born I opened up an account in their names and have been depositing about $500 in each monthly.  I want them to have a nice cushion to start of life at 25.

 

Weren't you just talking about how money means so much more to youj when you earn it (do X, receive X)?  Hopefully your nephews and nieces will fully appreciate it, but I know a few people that had this luxury growing up, and it kind of devalues their concept of money when they receive this much "free money".

 

a - they dont know about it

b - they wont know about it until 25 and at that time they will on get 1/6 (since the youngest will be in High School)

c - there are stipulations such as ⅓ must be donated to a charitable cause

 

I don't have an heirs.  So in the event that something should happen to me, today, the kids are the beneficiaries.  Everything goes into trust, until they are 21/25, my mother, brother and father know to sell that brownstone if I die and divided the proceeds among the five kids.  My parents have already told my brother and I reviewed their wills and know what should happen upon their individual deaths, if  my brother and/or I would die first, we've already discussed what should happen.  We have plenty of protection so that my skank-in-law doesn't get her hands on my houses or my parents house.

 

The kids know about financial management.  My nephew knows that he can't just paint for life & "passion" and knows to fund further projects, he has to sell his artwork.  I gave him my car for his BDAy, he knows that he has to work in order to put gas in it and for maintenance, plus insurance.  My oldest niece baby sits and does some limited modeling.  She in two print ad campaigns right now.  She knows that she has to save 75% of that money.  She knows that she can't blow it on $1k purse.  My middle nephew, works from my cousin and I, since the maid retired.  He's our house boy!  lol.  Trust me they know the value of a dollar.  I spoil them rotten, but they know that they are very very very lucky kids, and not to take the material possessions or experiences they have access to for granted or as an entitlement. 

This is the first time I've admitted this and my brother is probably going to kill me, but when each of my nephews and nieces were born I opened up an account in their names and have been depositing about $500 in each monthly.  I want them to have a nice cushion to start of life at 25.

 

Weren't you just talking about how money means so much more to youj when you earn it (do X, receive X)?  Hopefully your nephews and nieces will fully appreciate it, but I know a few people that had this luxury growing up, and it kind of devalues their concept of money when they receive this much "free money".

 

a - they dont know about it

b - they wont know about it until 25 and at that time they will on get 1/6 (since the youngest will be in High School)

c - there are stipulations such as ⅓ must be donated to a charitable cause

 

I don't have an heirs.  So in the event that something should happen to me, today, the kids are the beneficiaries.  Everything goes into trust, until they are 21/25, my mother, brother and father know to sell that brownstone if I die and divided the proceeds among the five kids.   My parents have already told my brother and I reviewed their wills and know what should happen upon their individual deaths, if  my brother and/or I would die first, we've already discussed what should happen.  We have plenty of protection so that my skank-in-law doesn't get her hands on my houses or my parents house.

 

The kids know about financial management.  My nephew knows that he can't just paint for life & "passion" and knows to fund further projects, he has to sell his artwork.  I gave him my car for his BDAy, he knows that he has to work in order to put gas in it and for maintenance, plus insurance.  My oldest niece baby sits and does some limited modeling.  She in two print ad campaigns right now.  She knows that she has to save 75% of that money.  She knows that she can't blow it on $1k purse.  My middle nephew, works from my cousin and I, since the maid retired.   He's our house boy!  lol.  Trust me they know the value of a dollar.  I spoil them rotten, but they know that they are very very very lucky kids, and not to take the material possessions or experiences they have access to for granted or as an entitlement. 

 

Good, I like the stipulations you put on it.  I've always thought about what I'd do for my kids/grandkids to help them out without spoiling them.  I think it's nice to do this, but a guy I lived with for a while in college was given money and cars (yes multiple) his whole life and he seemed to have the mindset that he just deserved money and things, even if he didn't work for them.  That's the biggest thing I want to avoid with my children and grandchildren.  If I ever see that happening, they're cut off from any "free money".  (Of course this all assumes I have money to give them! :) )

Good, I like the stipulations you put on it.  I've always thought about what I'd do for my kids/grandkids to help them out without spoiling them.  I think it's nice to do this, but a guy I lived with for a while in college was given money and cars (yes multiple) his whole life and he seemed to have the mindset that he just deserved money and things, even if he didn't work for them.  That's the biggest thing I want to avoid with my children and grandchildren.  If I ever see that happening, they're cut off from any "free money".  (Of course this all assumes I have money to give them! :) )

 

You can do a mommie dearest on your kids/grandkids, nothing says, "I love you" like a mommie dearest will!  LMAO!

You know, I sent the NY times article to my Mom and she said it made her look like a financial genius, we had a nice discussion about it.  She reminded me that she never had a credit card until she moved to Cleveland, which would have been when she was around 45.  She also reminded me of some time when I was a teenager and we were arguing about something I needed for school and she had no money to buy it and I was all insistent that she should just open a credit card and charge it because that's what other people do, and how she thought I was a complete moron at the time and was arguing with me about how you have to pay that off, it's not free money.

 

I obviously see her point but I wonder also how miserable you should make your lives and your kids' lives if you could charge something small and pay it off in a couple of months instead of making them go without?  It was embarrassing over and over in school to have to go to my teachers and explain that I couldn't go with the rest of the marching band to Cedar Point becuase neither of my parents could come up with the $12 I needed to pay to get in (and then some teacher paid for me), or how I didn't know how I was going to do the math homework because we couldn't afford to buy the required calculator.  I mean, my Latin teacher bought my prom dress.  I look back on these things now and it was really frustrating and embarrassing as a kid not to have money for these kinds of things and to get handouts from people, not to mention the trouble I could have gotten into for all the stealing I did of other things we needed and wanted.  I know credit cards are evil, but honestly,  it's hard for me to say that living like we did was better.

You know, I sent the NY times article to my Mom and she said it made her look like a financial genius, we had a nice discussion about it.  She reminded me that she never had a credit card until she moved to Cleveland, which would have been when she was around 45.  She also reminded me of some time when I was a teenager and we were arguing about something I needed for school and she had no money to buy it and I was all insistent that she should just open a credit card and charge it because that's what other people do, and how she thought I was a complete moron at the time and was arguing with me about how you have to pay that off, it's not free money.

 

I obviously see her point but I wonder also how miserable you should make your lives and your kids' lives if you could charge something small and pay it off in a couple of months instead of making them go without?  It was embarrassing over and over in school to have to go to my teachers and explain that I couldn't go with the rest of the marching band to Cedar Point becuase neither of my parents could come up with the $12 I needed to pay to get in (and then some teacher paid for me), or how I didn't know how I was going to do the math homework because we couldn't afford to buy the required calculator.  I mean, my Latin teacher bought my prom dress.  I look back on these things now and it was really frustrating and embarrassing as a kid not to have money for these kinds of things and to get handouts from people, not to mention the trouble I could have gotten into for all the stealing I did of other things we needed and wanted.  I know credit cards are evil, but honestly,  it's hard for me to say that living like we did was better.

 

I'm so sorry to hear/read that.  I'm going to share that with my nephews/neices and select cousins and their cousins children so they can understand what it's like to not have someething.

 

My cousin has never worked a day in her life.  She's the ultimate princess. She has a degree in computer or information systems.  She married up right out of college (he's a Dr.) and has never lifted a finger.  I love them dearly, but these are people that are more resilient in this economy.

I wasn't saying it to whine, it was a long time ago and I'm over it.  My Mom did the best she could but was making impossibly small wages at horrible, horrible jobs and my father a) didn't have much to contribute and b) didn't want to give what he did have - he cashed in all the savings bonds they had bought for me and my sister when we were babies when he was forced into early retirement for example.  I'm just saying, I wonder where you draw the line - is there an instance here and there where buying something on credit might be acceptable, even knowing it would take you awhile to pay it back?  I don't know the answer, I just know it was miserable going through it.

I wasn't saying it to whine, it was a long time ago and I'm over it.  My Mom did the best she could but was making impossibly small wages at horrible, horrible jobs and my father a) didn't have much to contribute and b) didn't want to give what he did have - he cashed in all the savings bonds they had bought for me and my sister when we were babies when he was forced into early retirement for example.  I'm just saying, I wonder where you draw the line - is there an instance here and there where buying something on credit might be acceptable, even knowing it would take you awhile to pay it back?  I don't know the answer, I just know it was miserable going through it.

 

I understand that, but some people need to realize, life isn't a bowl of cherry's and they need to understand and appreciate what they have as tomorrow isn't promised.

Ideally that is what credit cards were created for.  Is making a purchase and paying it back over time.  The problem occurs when it becomes cyclical.  If you were to buy something and only that one item and pay it off over 3-6 months the amount of interest would not be that great (assuming you didn;t just buy a car with a credit card).  Unfortenatly, many people instead will maintain a continuous balance without ever paying it down/off. 

 

Also, I have an issue with credit cards being considered evil.  They are not evil, they do exactly as they allow.  It is what people do with them that causes problems. 

 

P.S. I do agree that there needs to be more regulation in the industry.  It became a little too loose for its own good, and now we are going to see a brand new lock down of credit when the CC debt comes to roost.

Ideally that is what credit cards were created for.  Is making a purchase and paying it back over time.  The problem occurs when it becomes cyclical.  If you were to buy something and only that one item and pay it off over 3-6 months the amount of interest would not be that great (assuming you didn;t just buy a car with a credit card).  Unfortenatly, many people instead will maintain a continuous balance without ever paying it down/off. 

 

Also, I have an issue with credit cards being considered evil.  They are not evil, they do exactly as they allow.  It is what people do with them that causes problems. 

 

Exactly.  I know Dan and I use credit cards and pay of the balance each month.  It makes it so much easier to keep track of spending, create and maintain a budget and get credit card protection on various items.

Exactly. I know Dan and I use credit cards and pay of the balance each month. It makes it so much easier to keep track of spending, create and maintain a budget and get credit card protection on various items.

 

Also, if you spend an average of, say, $1000 each month on a credit card for paying bills, groceries, gas, and other everyday expenses, it is like getting a free $1000 loan for the length of time you use the credit card, since you are always paying the $1000 a month after you spent it.  The key is to make money off that extra $1000 you always have in your pocket, rather than blow it so you may be in trouble paying off the credit card bill some month.

Ideally that is what credit cards were created for. Is making a purchase and paying it back over time. The problem occurs when it becomes cyclical. If you were to buy something and only that one item and pay it off over 3-6 months the amount of interest would not be that great (assuming you didn;t just buy a car with a credit card). Unfortenatly, many people instead will maintain a continuous balance without ever paying it down/off.

 

Also, I have an issue with credit cards being considered evil. They are not evil, they do exactly as they allow. It is what people do with them that causes problems.

 

Exactly. I know Dan and I use credit cards and pay of the balance each month. It makes it so much easier to keep track of spending, create and maintain a budget and get credit card protection on various items.

 

Yes, Doing this is great for us.  I would argue that as long as you can bring the balance to zero every 3-4 months you would not be paying enormous amounts in interest. 

 

Plus it is nice when you earn money back on the card, we recently had a near 10K bill for one month that we paid off at the end of the month.  Needless to say there was a check attached with that bill for our cash back.

Ideally that is what credit cards were created for.  Is making a purchase and paying it back over time.  The problem occurs when it becomes cyclical.  If you were to buy something and only that one item and pay it off over 3-6 months the amount of interest would not be that great (assuming you didn;t just buy a car with a credit card).  Unfortenatly, many people instead will maintain a continuous balance without ever paying it down/off. 

 

Also, I have an issue with credit cards being considered evil.  They are not evil, they do exactly as they allow.  It is what people do with them that causes problems. 

 

Exactly.  I know Dan and I use credit cards and pay of the balance each month.  It makes it so much easier to keep track of spending, create and maintain a budget and get credit card protection on various items.

 

Yes, Doing this is great for us.  I would argue that as long as you can bring the balance to zero every 3-4 months you would not be paying enormous amounts in interest. 

 

Plus it is nice when you earn money back on the card, we recently had a near 10K bill for one month that we paid off at the end of the month.  Needless to say there was a check attached with that bill for our cash back.

 

I pay it off every month, period.  Im a firm believer of, "if I can't afford to buy it and pay for it now, I don't need it"