It’s geared towards the younger crowd, but I’d have to say that I would have benefited from it when I was growing up. There are even a few tidbits that I took from the book that I enjoyed and certainly agreed with the book as a whole (including SenseToSave’s review)…
The book covers a lot of topics that would really hit home for someone in their teenage years. I didn’t have much financial education myself growing up and would have liked to have something like this.
The Right Time To Start Giving To Others
How you look at charities at this time of your life may affect your view of them for a lifetime. You need to answer this questions now: “When should I begin giving to charity?”
If our answer is “Once I’m wealthy enough to have leftover money after all my needs are taken care of,” you may never give to charity. Too often as income grows, so do expenses. Unless a conscious effort is made to carve out money for charity, you will never be “wealthy enough” to begin your charitable giving.”
Good nugget of wisdom when you think about it. It’s true that the more you earn the more you spend. I can speak from experience. My income has gone up significantly in the past 10 years and I can vouch for that statement!
Family 401k Plan
If you are working and saving some of your money, you may want to have a “family 401k plan” where your parents act like an employer in matching some of your savings. For example, your parents might agree that for every $100 saved by you, they’ll ad 20% or $20.
A handy way to teach kids to save money certainly, but I think you’re giving them too liberal of a view of return on your money at 20%. Sign me up for that if you’re offering it! 🙂
Five Questions To Ask When Choosing A Savings Account
1. What interest rate is paid, how is it compounded and what is the APY?
2. Is there a penalty for making eaerly withdrawals? How much is it?
3. Is there a charge for too many withdrawals?
4. Where are the bank branches located?
5. Do you have any special deals now.
Keep an eye out for both MMA and Savings accounts. They’re both going to give you a decent return on your money; probably a little more last year at this time, but still worth looking into finding the best deal.
Three Key Questions To Ask Before You Buy Life Insurance
1. Why do I need this insurance?
2. What is the most this policy will cost me and for how many years under sa worst-case scenario?
3. How much will I lose if I decide to cancel the policy early?
A Tidbit To Paying Off Your House Faster
One way to shorten your loan payback is ot take out a 15=year loan at the beginning instead o f a30-year loan. With a 15-year loan, the monhtly payments are higher, but the interest rate is lower. The payments are higher – but not twice as high – even though you are paying off the loan twice as fast.
This is because they base your payments off of the loan and interest rate. If you have a $100,000 loan out at 6% for 15 years, you’re paying more up front but overall you’re paying less your monthly payments will be much steeper, but on the flipside of the point, they’re going to be much higher too $2531.58 for a 15 year loan at 6% vs $599,55 for a 30 year loan at 6%.
It makes sense in the long run, but can cost you a few bucks up front. I prefer to stretch out the loan and let the extra $ I have now work for me.
A Trivia Question That Caught My Eye
What was the earliest paper money and what was it made from?
China was the first to use paper money anround the year 1000. it was made from the bar of mulberry trees. Leaves from these trees, you may recall, are feed to caterpillars to produce silk. Marco Polo later wrote about this unique form of money.
A good book if you’re starting to figure out how money works. It won’t solve all your problems, but it may help you prevent some of them if you start understanding what it teaches earlier in life. Might be a good book for enticing kids to saving with their summer jobs coming up. Looks like it is selling for 30% off from Adams-Hall publishing if you’re interested.