Grandma's Money Lessons Still Are True

As we grow up we are influenced by many people. Perhaps the most influential in my life was my grandparents. Grandma and grandpa were always there to set me straight. They were no nonsense and taught me many things. They didn't live exstravagant lives. They always cooked from scratch with rare exception. As I look back there were many instances where they would try to share with me some facet of their life. Some of those lessons were about money. Here are a few of the best.

1. Always save for a rainy day.

This sure was grandpa's favorite lesson. I think it was one of the most talked about by them. Saving money and using what you had wisely. Not wasting money, food or anything. For me it helped me prepare for life's future needs. Like saving for retirement or kids going to college. Never wasting money on interest payments when borrowing. They taught me to be aware of every penny I had.

2. Credit is not your friend. 

Grandpa used to say how proud he was that he never owed a penny to anyone. In his day he would save and pay cash for his needs. It's a foreign idea to think that way today. We make excuses that we would never have anything if we didn't borrow to pay for it. They lived on much less than we do today. Grandpa would say how his pay was only $5 per week when he was a young man. But it was relative because things were much cheaper then.

I believe they had less things to spend money on than we do today. We have all kinds of gadgets and conveniences, that in our minds, have become necessities. They had less things to spend money on. We have a never ending supply.

3. The only person that won't let you down is yourself.

Being self sufficient was a more common trait in the the days of my grandparents. It was a necessity because you had less outside help than you do now. The lifelines we have today like social services, food stamps and housing help didn't exist in their day. They learned to be self-sufficient. More people cooked at home. They sewed and made clothes. In Grandpa's day you could count on neighbors, friends and family to be there and help you through your tough times.

4. Always live below your means.

I would watch my grandparents not be wasteful with their money. They would cook every night. If there was a party they would never think of having it catered. They would prepare all the food for it. Lights would be turned off. Water would never be wasted. Clothes would be mended and worn till thread bare. The homes were simple and they were not very big. There was never an expensive car and th car was driven till the wheels fell off.

Money was regarded as a precious commodity and never misused. Vacations were few and far in between. There were no credit cards or debt. My grandparents were in control.

5. Nothing good or bad lasts forever.

This is my favorite lesson of this list. When things are not going so good in your life like a relationship or a financial problem, Grandma would tell me that this is only temporary and it would eventually get better. She said time would eventually heal all wounds. This is very true and comforting when your going through a hard situation.

The opposite is also true, when things are going well, look out because its only a matter of time when they could go bad again. The lesson here is prepare and get ready for that time, its coming. I have seen many people riding high on salary increases or business booming like never before. These folks think it will last forever. They don't put a thing away for the rainy day. They spend every dime and when the ride is over, they are broke. Again.

6. Waste not, Want not.

I agree that being frugal and not wasting is also a way of preparing for the future. Not wasting assets today will only provide more for future use. It's that Recession, Depression mind set of being ready for that time when things may not be so good. We see this demonstrated many times in nature when animals display survival skills. They are ready for the coming cold weather, drought, or lack of food. Observing their behavior should teach us a lesson of taking care of our lives, come what may.

Our money and what it provides, is our means of surviving in the world. It's something we must learn to not waste. We must plan by using budgets and making wise decisions. Grandma knew all about this, it was just plain common sense to her.

Related articles

• Money Management Advice from Grandpa (christianpf.com)
• 7 Frugal Lessons from Great-Grandmother (wisebread.com)
• Do you have nicknames for your grandparents? (christianpf.com)

Harry Potter Star Responsible With Money

If you are living under a rock you may not know that the latest Harry Potter movie came out. One more time hoards of wizards and muggles are rushing to theaters to see the latest adventures of one Harry Potter. This is the seventh movie with one more to go. The Harry Potter film franchise is the highest grossing film series of all time when not adjusted for inflation, with well over 5 billion dollars in worldwide receipts. It has made stars out of the 3 main characters. These 3 young people have had fame and fortune cast upon them. Ten years ago they were penniless, now they are millionaires.

Young stars with instant fame and fortune have usually gone down the wrong path. Some have crashed and burned like Lindsay Lohan and Brittany Spears. They've gotten into drugs and alcohol.

But here is a young woman who has managed to stay away from all that nonsense. It's "Harry Potter" star Emma Watson. This 20 year old actress, through all her fame, has chosen another way. Her fame has made her a millionaire many times over. Money hasn't changed her. She remarked "By the third or fourth film, the money was starting to get .... serious. I had no idea. I felt sick, very emotional. It was a real shock". Her fortune is estimated to be around $32 million dollars.

Currently she is a student at Brown University in the United States. She is doing some acting and voice over work at this time.

What makes one person go over the edge and another remain completely grounded? We are all exposed to the same temptations of life. Yet one young woman is managing it, while the other is dreadfully failing.

One theory is money makes you more of what you already are. If your a jerk, money will make you a major jerk. If you tend to a life of debauchery, money will only magnify that. If your are a kind hearted person, you will only be more of that.

The tip off I got from Emma Watson's comment was her physical reaction to learning how much money she did have. I am assuming it probably was her parents who told her, because they are managing it. And because they didn't tell her before, I believe they are caring parents that didn't want it to go to her head. The result was disciplined parents producing a level headed child. A lesson for all of us. This actress is going places.

The Real Reason Why You Don't Take Out Loans For College

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Watching my four children on their college adventure has given me time to pause and reflect how proud I am of them. My wife and I have preached and preached how important a college education and the following job is to a successful life. Thankfully they have listened.

Throughout the college journey it has been hard to avoid loans. We have a prepaid college plan for all of them. There have been Pell Grants and scholarships. There has been out of pocket expenses, but nothing that couldn't be cash flowed. We were lucky. But we were prepared and able to have the income to pay for it and avoid loans, for their sake.

Some families don't have the resources or access to scholarships. They don't know about the FASFA application and sources of college money. What they do is take out college loans. Here's where the problems begin. Here is something I believe most people don't even think of.

There is a new study that says that only 22 percent of students enrolled in bachelor's programs at for profit colleges and universities graduate within 6 years, this according to The Education Trust, a Washington, D. C. based group. That compares with 55 percent for public universities and 65 percent for private nonprofit schools.

It is very possible that you will not finish your college plans. Taking out student loans and not finishing is a mistake that will follow you for many years. In the students life many circumstances can come up that will delay the completion of college. There are financial, health, relational and physical problems that could cause the student to never finish. With those outstanding loans your finances will suffer for years to come.

Taking out loans is considered the only way to go to college to most people. But with escalating tuition costs and a new awareness in the culture to be more frugal; students and their parents are finding new ways to better prepare.

If you don't have enough money to pay for college you have two options. Either reduce costs or increase cash. You will have to decide. It will be hard but paying off student loans is much harder.

Credit Card Use Is On The Decline

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Holiday shoppers say they'll use debit cards and cash this Christmas season. According to Britt Beemer, chairman of America's Research Group, a retail polling company. His polling reveals that a remarkably low number of people will be using credit cards this season. If consumers follow this strategy, your going to see much lower sales at retail stores.

Beemer states that when people use cash their average purchase is $41. With a credit card, they spend an average of $87 per transaction. According to the National Retail Federation 27.6 percent of shoppers said they will use their credit cards as primary payment for their holiday gifts, the lowest percent since 2002. According to Beemer, only 12 to 15 percent say they will be using their credit card.

When they have cash they only have so much money they can spend, when using credit cards, they are not under that control. Also a growing number of people are switching to cash, debit and check cards as their main source of payment.

The main reason to use cash is to avoid accruing more debt and staying within a budget. This change of financial habits is because of the Great Recession we are going through. It seems the new frugality is becoming a long term trend and not a fad.

Some shoppers say they are using credit but for other reasons. With credit cards they feel they are getting certain guarantees. If you have any trouble with the purchase at least you can go to Visa or MasterCard for some help. These shoppers say even though they use their cards, they will be paying the bill of in full.

Some retailers are joining the bandwagon with a resurgence of their layaway services. Also an increase in the use of membership points, coupons, and reward cards to keep the shopper happy.

If seems that this holiday season will be very different from anything we have become used to in the past. Credit card use is going down and cash use is going up. This can only be a good thing for the overall economy and our own personal economies.

How Do You Help Your Grown Kids Financially Without Hurting Yourself?

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When our kids are young they are such darlings that it's hard to say no to them. With to much indulging, we sometimes end up spoiling them. Their impact on our finances are minor. Then comes college and cars, the costs start to rise. Then finally they are gone and the costs go down. Now you put that money toward retirement, savings and paying off the house. Whew. You are done.

But wait, your not off the hook yet. Your grown children are coming to you for money. One wants help with a down payment for a house. Another wants to start a business. Maybe another is going through a divorce and needs money for a lawyer. Ouch.

Remember when I started this post I said how hard it is to say no to your kids?  Your kids need money, some are in trouble and some just need money for their life. How do you help them without hurting your own finances. There are a few things to keep in mind. Is this help they want a need or a want. How will your actions help their life? Maybe by helping them you're really hurting them or enabling them.

Children view their parents in different ways.  Some see Mom and Dad as a bottomless pit of money. They never seem to get it that they should be on their own. Some understand that finances are finite and it's best to leave the parents alone. They know it's time for the parents to not bare the financial responsibility for their grown kids any more. The parents have done more than enough.  

So it's a balancing act to know if you should say yes or no. We can all agree that in an emergency we are not going go let our children down. Keeping in mind that by helping them we are careful to not harm ourselves. It's quite possible we will turn down our children's request in a situation, but may help instead in a non-financial way.

The type of situation is important to the decision of giving help. If my child comes to me for a down payment for a car or or house; I will say it's not an emergency or a necessity. I will tell them as adults they responsible for their own finances  Now if you have the money because you are well off and can afford giving them the money, that's a different situation.

On the other hand if your child is going through a divorce or needs money for an operation, your obliged to help them. But only if you aren't going to harm yourself financially. It goes without saying, staying out of debt is paramount.

These black and white examples show what to do in a non-emotional way. But with your children, it's hard to to keep it that way. Your feelings toward them will weigh on your decision. Bottom line, decide if your help will be a help to them long term or just enable bad behavior.

Black Friday Survival Guide

If your like most people your getting ready to hit the malls today. It must be what running with the bulls is like. You may be getting a late start, but its never to late to go through a checklist of great shopping tips. I am including a broad array of tips from shopping to shipping and warranties to rebates. Here we go.

Avoid Debt

If you spread grocery purchases for holiday meals over several weeks, freezing perishables and storing staples; it can leave a lower impact on your food budget.

Make a budget and stick to it. Get the whole family in on it. You will be saving money and it's a great chance to teach the kids about money management. Most of all pay cash this season for all purchases.

Shop Safely

Shop only at reputable brick and mortar retailers.

If shopping online be sure to read the return policy and make sure the website is has industry seals of safe shopping like Verisign and the Better Business Bureau.

Websites and Shopping Online

Be sure to check out websites like Blackfriday.com, Blackfriday.fm, Tgiblackfriday.com, and Theblackfriday.com. These websites should give you a broad look at all the online and brick and mortar stores. When comparing prices be sure to check out Amazon and Ebay. It's always good to be signed up for email from Target.com, Walmart.com, and your own favorite web stores.

Gift Cards

When you can't find that special gift for that hard to shop for person, why not get them a gift card. They are available for all major retailers in town and online too. If you receive gift cards as a Christmas gift be smart and take precautions. Its always good to photocopy the card so you have all the pertinent information in case you lose it. Also keeping the receipt as proof of purchase whether you are are giving or receiving. But the best advice of all is, if you receive one as a gift, use it as soon as possible. This way it won't get lost or maybe expire.

Rebates

This is the most troublesome aspect of modern shopping. Retailers know we like to get a good price with the rebate incentive. But they know most of the time we won't follow up on the rebate process. We either forget, lose some forms and file it wrong.

If you have to use a rebate follow these steps. Check the expiration date of the rebate and mail it way before then. Don't throw away receipts or product packaging in case you need to resubmit. Make photocopies of all paper work you send in. Consider sending your paper work by certified mail. So you will have proof you made the deadline. Lastly be patient because it does take a few months to process it. Make a note of the web site or phone number where you can check on the progress of the rebate.

Green Shopping

Buy gifts that are made with recycled materials and are energy efficient. Bring reusable shopping bags and avoid plastic bags. When wrapping presents try to use any left over or used packaging from last year. Shopping online is a very efficient way to shop. Lastly when decorating use energy efficient led bulbs in your decorations.

Warranties and Returns

Returns can be a headache if you have no receipt or do not know the rules that your retailer has about returns. Save yourself the hassle and familiarize yourself with these rules before making that purchase. Also keep that receipt in a safe place and for at least a year.

Warranties and expiration dates are different for different products and for different stores. Again familiarize yourself before the purchase to save you headaches after.

Package Shipping

Be sure to ship your gift packages early enough to use standard shopping rates, by Dec 15-17 will be the last days. After that you will have to use the more expensive shipping rates to get it there on time. Other deadlines are Dec. 20 for first-class mail, Dec. 21-22 for priority mail, and Dec 23 for express or over night.

These hints will get you started on this seasons coming events. Remember the holidays are only a few weeks away. Don't put things off to the end. Get a head start tomorrow and it get done.