Earn $10 for joining Kidworth!
With a baby on the way, I’ve been thinking a lot about how to raise my kid so that she is savvy with money. How do I show her to save money, to live frugally, and to make savvy spending decisions? When should we first give her an allowance? How do I instill in her the pride I take in donating money to help others?
Enter Kidworth, a new website founded by a father who was tired of going to kids’ birthday parties and witnessing hundreds of dollars wasted on “plastic junk.”
So this father, Rudy DeFelice, did some research and discovered the average kid comes across $25,000-$30,000 in gifts by the time they are 18. Holy *$(%*#! How many 18-year-olds do you know that have more than a few bucks to their name?
“The way we treat kids reinfornces mindless consumption,” Rudy told me. He wanted a way to counter balance that consumerist message. He wanted a way to train kids to deal with money that would give kids a better chance.
Kidworth is not about creating more money, but about using resources – gifts, allowance, earnings – in a better way. Parents create an account for their kid, from babies to teenagers, and set up save goals, spend goals, and share goals. Depending on how old the kid is, they can get involved, too.
On a practical level, parents can use Kidworth to send out birthday invitations and holiday cards, using the opportunity to share their kid’s goals. It’s a not-so-subtle way to ask for specific gifts and donations, instead of the aforementioned plastic junk.
When you visit a kid’s page, family and friends can see what kind of progress the kid and what the kid is doing with their allowance, gifts, and earnings. Only first names are used, and no identifying information is shared or asked for. Pages do not show up in search engine results, but parents can share their kids’ pages with whomever they wish.
Kidworth is totally free to use, though sending an egift card costs $2.50 and sending a physical card costs $5. Both fees go to covering credit card processing fees.
If you’re dreading an onslaught of unwanted gifts this holiday season, sign up for Kidworth! The next 100 people to sign up via Kidworth’s Facebook page will earn a $10 credit when they create a goal in their Kidworth account.
Win this book by commenting below!
(Win my review copy below.)
- How much money do I need to retire?
- How do I manage my retirement savings?
- How do I plan for taxes in retirement?
On the first page, Mike admits that there are plenty of good retirement books out there. So why did he write another one?
Can I Retire?
Jason Texter / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
I recently read a story in the LA Times about Hallmark adding unemployment cards to its sympathy line. The cards are apparently a good way to show compassion, but to me spending $3 to $5 on a card is ridiculous! This got me thinking of five frugal ways to show your support for those going through a rough time.
Not surprisingly, Hallmark is not the only company getting in on the action. You can also buy layoff cards from online companies Zazzle Inc. and Greeting Card Universe.
T Hoffarth / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
Have you ever caved into buying an item at a higher price because you didn’t want to be perceived as cheap? Last weekend, I did just that at the Santa Monica Pier, a major tourist attraction in California.
My family and I headed to Coffee Bean & Tea Leaf to grab drinks. At the front of the line I was faced with a major decision.
A website in the UK created a cool infographic on how retailers trick you into spending more at the checkout stand. I agree with a lot of them! One of the cool things about the info graphic is that is includes real examples, like:
- Dell increased sales by $25 million by changing it’s slogan from “Learn More,” to “Help Me Choose.”
- Product videos at Zappos have increased shoe sales by 6-30% (Babies R Us does this too, and it totally works!)
- Speeding up load times from 6-9 seconds to 2 seconds bumped up Shopzilla’s revenue by 5-12%.
See the infographic on retailer tricks by clicking “more. ” And check out the 19 retailer tricks that Bobbi, Yazmin, and I brainstormed.
A literal use of an anchor. Credit: Beth Rankin/Flickr
Current or original price. What resonates with you when considering a purchase?
A blog called You Are Not So Smart argues that even the savviest bargain hunters, like you and me, are swayed by the original price, called the anchoring effect. I’d never heard of the term anchoring effect until reading this post, but the concept is very familiar. You Are Not So Smart shares this scenario:
You walk into a clothing store and see what is probably the most bad ass leather jacket you’ve ever seen.
You try it on, look in the mirror and decide you must have it. While wearing this item, you imagine onlookers will clutch their chests and gasp every time you walk into a room or cross a street. You lift the sleeve to check the price – $1,000.
Well, that’s that, you think. You start to head back to the hanger when a salesperson stops you.
“You like it?”
The unwanted bills our neighbors gave us.
Our neighbors gave us $40 after we powered their refrigerator with our generator during Hurricane Irene. No matter what we did, they would not take it back, saying replacing all their groceries would have cost a lot more.
The $40 they gave us is not a lot of money (in the grand scheme of things) but I feel a little…dirty about the whole thing.
Our neighborhood was without power for 27 hours From Sunday to Monday and we ran our generator for about five of those hours, powering both our fridge and our neighbor’s. Not even that long! We offered them a power chord because our generator is powerful enough to handle a second fridge, and because our generator is so fricking loud we thought sharing the electricity would soften the din.
We never expected to be paid and don’t want their money. The satisfaction of being a good neighbor and helping them out was payment
Going to college = eating ramen.
Credit: crazytales562/Flickr
Reader Pauline shared a fascinating secret in her comment on Yazmin’s post on college money wasters: “Our plan and my son’s goal is that he graduates from college debt-free.”
Whaaaa?! How would she accomplish such a financial feat? I was dying to know Pauline’s plan. Luckily, she wrote back and shed light on her family’s incredibly savvy spending habits.
Hi Julia: Well, first of all my son is VERY low maintenance. We have had our kids purchase their own WANTS for years. His Dad and I always provided the needs and made that clear what a need vs a want consisted of. And also my son doesn’t like to spend his own money. He has several and various savings accounts that have been growing over the years.
As far as starting 9 months ago I’m the type of person that needs
This is your last chance to comment on my original contest post for a chance to win my review copy of “First Comes Love, Then Comes Money: A Couple’s Guide to Financial Communication.” So far 30 people have entered by commenting, so you chances of winning are drastically higher than playing lotto!
The book is a quick read and focuses not on balancing your budget but understanding how you and your partner interact with regards to money. There is a financial personality section (which one are you?) and a quiz called the Financial Relationship Index that indicates where you might cheat financially. The last part of the book shares basic financial communication tools to move forward, including a monthly “Money Huddle.”
To win my review copy, comment below on why you need this book. Comment by Aug. 16 at 11:59 p.m. EST to win! If you can’t wait, buy a copy from Amazon for $6 (orig. $15).
Comment to win this book!
Discovering secret credit cards, unpaid bills, and debt is a blow many couples cannot survive. In fact, money is the number one cause of breakups, says the married authors of “First Comes Love, Then Comes Money: A Couple’s Guide to Financial Communication.” Comment below to win my review copy.
Unlike most personal finance books, this one is not going to teach you to balance your budget or live debt free:
Why? Because without healthy financial communication, without a commitment to putting an end to financial infidelity, none of that stuff works. After more than thirty-five years of combined experience as financial advisers, we’ve learned that if you don’t know how to talk about money with your partner, if you don’t know how to keep financial infidelity from destroying your relationship, budgets and plans and payments won’t mean squat.
Are you protected? Do you need to be?
Credit: Jürgen Fälchle/Fotolia
Psst. Very few Americans – just 1 in 5 according to CNN – know about the newly established Bureau of Consumer Protection. Boring name, I know, but it aims to protect consumers and as a savvy spender you should know how it can help you.
The BCP covers seven areas, including advertising practices, consumer and business education, enforcement, financial practices, marketing practices, planning and information, and privacy and identity protection. Its website says:
Ready for your DIY haircut? Credit: Andydr/Flickr
This is a guest post by David Bakke of MoneyCrashers.com.
You may know some people who spend way too much money on the newest clothes or gadgets, neglect to use coupons at the grocery stores, and pay ridiculous amounts of money for premium cable TV. I’m not one of them. In fact, I’m as frugal as they come. However, even I know that being too frugal can actually cost you more money than you’re saving in some cases. Here are seven ways it doesn’t pay to be cheap.
1. Not Going to the Doctor
Routine check-ups with your doctor and dentist will save you more money in the long run. If you get checked out once a year by your doctor, and twice a year by the dentist, you can catch problems early and treat them with far less time and money than if the problems fester. No matter how unpleasant (or costly) routine physicals and check-ups may be, they are much more pleasant than a visit to the doctor or dentist where major work or repair needs to be done.
2. Ignoring Routine Car and Home Maintenance
Consult your car owner’s manual and
borman818 / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
Weeks before graduation, I received a letter from my bank telling me I would no longer qualify for a student account and that I needed an average daily balance of $1,500. Boo!
With my student account I managed to avoid bank fees as long as I never stepped in to the bank and only used the ATM for my transactions. According to the bank’s letter, the fees would kick in on or after June 4. I prepared by transferring money from my savings account on June 1.
A couple days later, I was slapped with a $8.75 fee. What?!?! I couldn’t believe it. I immediately called my bank.
“Hi. I’d like to know why I was charged a fee when I met the average daily balance for my account.”
“Sure, let me check our records,” said the bank teller.
Turns out I
By Bobbi Burger Brunoehler of BobbisBargains.
The.Comedian/flickr
You know how many credit cards say they they double the manufacturer’s warranty? It’s the reason why I pay for major appliances with credit, not my debit card or a check, and why I almost always turn down an extended store warranty. I’ve read about the warranty doubling in promotional materials but, until today, I never knew what this perk really meant and how it worked. Here’s what I found out.
I purchased a rather expensive window air conditioner from Sears one year and three days ago. I purchased this item from Sears only because I could not find this A/C unit anywhere else that included free shipping. I knew Sears did not have a friendly return policy. I did not buy an extended warranty because I knew my Discover card included an extended warranty.
Now it is 368 days later. I discover that
Tom Purves / Flickr
This is a post by BargainBabe.com writer Yazmin Cruz.
Your smart phone is about to get smarter as mobile payment apps replace swiping plastic, by enabling you to tap your phone and exchange your credit card information via a radio frequency field. But just how safe is this?
I first learned about mobile payment apps in a college personal finance class. My professor warned us to be careful about using these apps until laws catch up with technology. Let me explain.
Once upon a time
